Exhibit 10.71



 Exhibit 10.71 
 LOAN AGREEMENT 
 THIS LOAN AGREEMENT (as amended, modified or
supplemented from time to time, “Agreement”), dated as of the      day of August, 2012, by and between (i) EAGLEBANK (the “Lender”), and (ii) NEW HAMPSHIRE AVE. VENTURES, LLC, a Virginia limited
liability company (the “Borrower”), recites and provides: 
 RECITALS: 

R-1. The Borrower has acquired a certain development site consisting of approximately 9.71 acres located at 6000 New Hampshire Avenue,
N.E., Washington, D.C., as more particularly described on Exhibit A attached hereto (the “Property”), on which the Borrower intends to develop a total of at least 110 housing units (and possibly 111 if the internal lots of the
Property can be reconfigured to accommodate an additional lot in Phase II) in two phases, the first phase of which (“Phase I”) will consist of 18 single family housing lots (singularly, a “Single Family Lot” and if referring to
more than one, the “Single Family Lots”) and 38 townhouse lots (singularly a Townhouse Lot” and if referring to more than one, the “Townhouse Lots”), and the second phase of which (“Phase II”) will consist of 19
Single Family Lots and 35 Townhouse Lots which may include, in Phase II, three (3) Townhouse Lots with improvements intended to qualify as affordable dwelling units (“ADU”). The delineation of Phase I and Phase II are as shown on the
marked Site Plan attached hereto as Exhibit A-1. 
 R-2. Subject to the terms of this Agreement, the Lender agrees to
make a revolving development loan (the “Development Loan”) to the Borrower, as more particularly described in Section 1.1 below, for the purpose of financing (i) the Development (as hereinafter defined) of Phase I and
(ii) subject to the Borrower meeting certain Phase I sales conditions as more particularly set forth below, the Development of Phase II. 
 R-3. Subject to the terms of this Agreement, the Lender also agrees to make a revolving construction loan (the “Construction Loan”) to the Borrower, as more particularly described in Section Two
below, for the purpose of financing the construction, at any one time, of up to six (6) Single Family Lots (“Single Family Units”) and up to twelve (12) Townhouse Lots (“Townhouse Units”) (Single Family Units and
Townhouse Units, collectively, “Units” or if referred to individually, a “Unit”). 
 R-4. The Lender and the
Borrower agree that the Development Loan and the Construction Loan (together, the “Loans”) will be made and advanced upon and subject to the terms, covenants and conditions set forth in this Agreement. 

AGREEMENT 

ACCORDINGLY, for and in consideration of the foregoing Recitals which are a material part of this Agreement and not mere prefatory
language, and of the mutual covenants and conditions set forth in this Agreement, and for other good and valuable consideration the receipt and sufficiency of which are hereby acknowledged, the Lender and the Borrower agree as follows: 

SECTION ONE 

THE DEVELOPMENT LOAN 
 1.1 Amount. The maximum principal amount that may be advanced under the Development Loan shall not exceed the lesser of (i) Ten Million Four Hundred Thousand and No/100 Dollars
($10,400,000.00), or (ii) seventy-five percent (75%) of total Development costs of Phase I and Phase II, or (iii) fifty-two percent (52%) of the discounted (“When Developed”) value of the Property pursuant to the
Appraisal (hereinafter defined) and any 

  
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appraisals which may be engaged by the Lender from time to time subsequent to the date hereof. The maximum principal amount that may be outstanding at any one time under the Development Loan
shall not exceed (i) for Phase I, Six Million and No/100 Dollars ($6,000,000.00) and for Phase II, Four Million Four Hundred Thousand and No/100 Dollars ($4,400,000.00). The Development Loan will be evidenced by a Revolving Development Loan
Promissory Note made by the Borrower payable to the order of the Lender (as the same may be amended, renewed, restated, supplemented or substituted from time to time, the “Development Loan Note”) which shall be governed by Maryland law.

 1.2 Purpose. The Borrower will use the Development Loan proceeds for Development of Phase I and Phase II in accordance
with a budget therefor which shall have been approved by the Lender in advance and in accordance with plans and specifications to be submitted to and approved by the Lender, and with advances to be made as the work progresses, all as set forth in
this Agreement. For purposes of this Agreement, the term “Development” shall mean, generally, (a) lot clearing and rough grading; (b) provision of storm drainage structures and facilities, sediment control devices, base paving of
streets, curbs and gutters; (c) providing sewer and water distribution systems and erecting temporary street signs; (d) provision of underground electric and gas utility lines, cable pedestals and vaults adjacent to Lot lines;
(e) other subdivision improvements as required by governmental authorities in order for use and occupancy permits to issue; and (f) final site plan and subdivision approvals for each Phase. Certain other costs normally considered part of
development costs shall be deferred and paid for by the Borrower out of its own funds, including by way of example and not limitation, final paving of streets, site amenities, landscaping and erosion control (the “Deferred Development
Costs”). 
 1.3 Conditions to Advances for Phase II. In addition to the other terms and conditions for making
advances of loan proceeds under this Agreement, until thirty-seven (37) Units in Phase I have been completed and sold to third-party purchasers, and the release fees set forth in Section 3.8 have been paid to the Lender for each of
those thirty-seven Units, and as a result thereof the outstanding principal balance of the Development Loan has been reduced to zero (the foregoing, the “Phase II Advance Conditions”), the Lender shall only be obligated to advance
proceeds of the Development Loan for Development of Phase I. After the Borrower has met all of the Phase II Advance Conditions, then the Borrower thereafter may use the Development Loan proceeds for Development of Phase II. The maximum amount that
may be advanced for Development of Phase I is Six Million and No/100 Dollars ($6,000,000.00), and the maximum amount that may be advanced and/or re-advanced for Development of Phase II is Four Million Four Hundred Thousand and No/100 Dollars
($4,400,000.00). 
 1.4 Development Loan Interest Reserve. From the proceeds of the Development Loan, Eight Hundred
Thousand and No/100 Dollars ($800,000.00) shall not be disbursed but shall be reserved by the Lender for the payment of interest on the Development Loan (the “Interest Reserve”) until such reserve is exhausted. Of the foregoing amount,
Four Hundred Thousand and No/100 Dollars ($400,000.00) is allocated to Phase I and the balance is allocated to Phase II. Notwithstanding the foregoing or any provision of the Loan Documents to the contrary, the Lender shall not be obligated to make
any disbursements from the Interest Reserve if any Event of Default shall have occurred (including without limitation any failure to meet the Sales and Curtailment Schedule set forth below which failure is not cured by payment of the amount
necessary to satisfy the curtailment component thereof), and further, notwithstanding the foregoing or any provision of any of the Loan Documents to the contrary, nothing contained herein shall be deemed to release or in any way to relieve the
Borrower from its obligation under the Development Loan Note to pay interest as provided in the Development Loan Note. Each disbursement from the Interest Reserve shall constitute a disbursement of principal of the Development Loan and shall be
added to the then outstanding principal balance of the Development Loan. 
 1.5 Fees. The Borrower shall pay to the
Lender a fee for the Development Loan in the amount of One Hundred Four Thousand and No/100 Dollars ($104,000.00), payable upon closing of the Loans. The Lender acknowledges receipt from the Borrower of Twenty-Five Thousand and No/100 Dollars
($25,000.00), for application to the Lender’s third-party costs incurred in connection with the Loans (including without limitation fees of appraisers, consultants and legal counsel), any unused balance of which may be applied to the foregoing
Development Loan fee. 

  
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 SECTION TWO 
 THE CONSTRUCTION LOAN 
 2.1 Amount. The maximum principal amount
that may be advanced under the Construction Loan shall not exceed Four Million and No/100 Dollars ($4,000,000.00). The Construction Loan will be evidenced by a Revolving Construction Loan Promissory Note made by the Borrower payable to the order of
the Lender (as the same may be amended, renewed, restated, supplemented or substituted from time to time, the “Construction Loan Note”) which shall be governed by Maryland law. 

2.2 Purpose. The Borrower will use the Construction Loan proceeds for the purpose of building (the “Construction”)
Single Family Units and Townhouse Units in accordance with a budget therefor which shall have been approved by the Lender in advance and in accordance with plans and specifications to be submitted to and approved by the Lender, and with advances to
be made as the work progresses, all as set forth in this Agreement. The overall Construction budget shall include and be consistent with the total costs per type of Unit that are to be set forth on Exhibit B (the “Unit Costs
Budget”), which shall be agreed by the parties and attached hereto prior to and as a condition of the first advance of Construction Loan proceeds. 
 2.3 LTV Limitation. In addition to the limitation set forth in Section 2.1 above, the maximum amount that may be disbursed under the Construction Loan per Unit shall be limited to seventy-five
percent (75%) of the loan-to-value ratio of each Unit based upon appraised value of each Unit type and the Lot thereon pursuant to an appraisal of the “as complete” value of each Unit type satisfactory to the Lender in all respects.
For purposes of this Section 2.3, the loan-to-value ratio of each Unit shall be calculated, expressed as a fraction, the numerator of which shall be $107,145.00 (being the amount allocated per Lot from the Development Loan) plus the budgeted
cost for that type of Unit set forth in the Unit Costs Budget, and the denominator of which shall be the appraised value thereof. The numerator of the aforesaid fraction shall be divided by the denominator thereof in order to result in the
loan-to-value being expressed as a percentage. 
 2.4 Construction Limitation. At no time shall the Borrower be permitted
to have under Construction more than (A) up to six (6) Single Family Units, of which at least three (3) must be subject to sales contracts acceptable to the Lender, one (1) may be speculative and two (2) may be model homes,
and (B) up to twelve (12) Townhouse Units, of which at least five (5) must be subject to sales contracts acceptable to the Lender, five (5) may be speculative and two (2) may be model homes. Upon completion and sale of any
one or more of the foregoing types of Units from time to time, and payment of the Release Payment set forth in Section 3.8 below, funds repaid pursuant to Section 3.8 below may be readvanced under the Construction Loan subject to the
foregoing limitation on the number and type of Units that may be under Construction at any one time, which shall again apply. 

2.5 No Interest Reserve. The Borrower shall be obligated to pay interest as provided in the Construction Loan Note. 

2.6 Fees. The Borrower shall pay to the Lender a fee for the Construction Loan in the amount of $1,350.00 for each Single Family
Unit and $1,025.00 for each Townhouse Unit. The fee will be payable with the first advance of Construction Loan proceeds for each Unit. 
 SECTION THREE 
 PARTICULAR TERMS OF BOTH LOANS 

3.1 Guarantor. Comstock Homebuilding Companies, Inc. (the “Guarantor”) shall guarantee the payment and performance of
the Borrower’s obligations, covenants and agreements under the Loans, as evidenced by the Loan Documents, including completion of each Phase, and shall also guarantee the Carve Out Obligations (defined on Exhibit C attached hereto),
which guaranty shall be evidenced by an instrument of unlimited and unconditional guaranty of payment, performance and completion from the Guarantor for the benefit of the Lender, in form and substance satisfactory to the Lender (the
“Guaranty”). 

  
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 3.2 Term. Each of the Development Loan Note and the Construction Loan Note
(collectively, the “Notes”) shall mature upon the earlier of (i) thirty-six (36) months after the date of closing on the Loan or (ii) the occurrence of a Transfer (as defined in Section 7.15 hereof) (the
“Maturity”). It is acknowledged and agreed that notwithstanding any provisions herein, the Borrower has not applied for, nor has the Lender made any commitment with respect to, any extension of such Maturity. Upon any application for an
extension, any approval of an extension on any terms would be contingent upon the usual and customary underwriting procedures of EagleBank, including without limitation, the approval of the loan committee of EagleBank. 

3.3 Interest Rate. Commencing on the closing of the Loans, the unpaid balance of each of the Notes outstanding from time to time
shall bear interest and be payable at the floating rate per annum equal to three percent (3%) above the thirty (30) day LIBOR Rate (hereinafter defined), rounded upwards, if necessary, to the nearest one-eighth of one percent (0.125%). The
LIBOR rate means, for each calendar month, the annualized weighted average of the 30-day London Interbank Offered Rates (at approximately 11:00 a.m. London time) for U.S. Dollar transactions on the day that is two (2) business days prior
to the first day of that calendar month, as reported by Bloomberg Business News; if Bloomberg Business News is not available, the Lender shall select a similar source for the LIBOR index and shall notify the Borrower of such selection.
Notwithstanding the above, in no event shall either of the Notes bear interest at a rate below the floor interest rate of five and three-quarters percent (5.75%) per annum at any time (the “Interest Rate Floor”). 

3.4 Collateral. The Loans shall be secured by, among other things, the following: 

 

	 	(i)	A first lien deed of trust, security agreement and fixture filing (as the same may be amended, restated, supplemented or substituted, the “Deed of Trust”) on
the Property; 

  

	 	(ii)	An assignment of Leases and Rents on the Property (as the same may be amended, restated, supplemented or substituted, the “Leases Assignment”);


  

	 	(iii)	An assignment of sales contracts and deposits with respect to the Property (the “Contracts Assignment”); 


 

	 	(iv)	Assignments of all Development and Construction documents including, without limitation, plans and specifications, permits, architect’s contracts, engineering
contracts, Development contracts, and Construction contracts (the “Documents Assignment”); 

  

	 	(v)	Consents to Assignment executed by each of the general contractor, architect and project engineer for each of the Development and the Construction (the
“Consents”); 

  

	 	(vi)	An Environmental Indemnity Agreement made by the Borrower and the Guarantor for the benefit of the Lender (as the same may be amended, restated, supplemented or
substituted, the “Environmental Indemnity”); 

  

	 	(vii)	Such UCC-1 Financing Statements as the Lender may determine to be necessary or desirable. 


3.5 Equity Requirement. As a condition of the Loans, as of the closing of the Loans the Borrower shall have made an equity
investment in the Property in an amount not less than Seven Million Eight Hundred Eighty-Nine Thousand One Hundred Twenty and No/100 Dollars ($7,889,120.00), and shall have provided reasonable evidence of such investment to the Lender. The
components of such equity investment are: 
  

					
	 Property Acquisition Price:
	  	$	4,900,000.00	  
	 PUD Approval Costs
	  	 	1,490,000.00	  
	 Deferred Development Fee
	  	 	500,000.00	  
	 Deferred Development Costs
	  	 	999,120.00	  

 3.6 Deposit Relationship. As a condition of the Loans, the Borrower shall establish its primary
operating account with the Lender and shall maintain such account with the Lender throughout the term of the Loan. In addition, the Borrower and/or Guarantor and/or any related entities shall maintain a minimum monthly average


  
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aggregate deposit balance with the Lender of ten percent (10%) of the aggregate outstanding principal balance of the Loans, tested semi-annually, with the first test period being
October 31, 2012 to March 31, 2013. Such deposits shall be held in demand deposits or money market accounts. If at any time under any of the Loan Documents the Lender is collecting deposits for the payment of insurance premiums and/or real
estate taxes, the amount(s) on deposit, to the extent unapplied as of the date of any such semi-annual test, shall be counted toward the foregoing deposit balance requirements. The foregoing deposit balance requirement is in addition to any deposit
balance requirement under the terms of the loan documents for any other loan or loans by the Lender to the Borrower, the Guarantor or any affiliate(s) of the Borrower or the Guarantor. The failure to comply with the foregoing deposit balance
requirements shall not constitute a default under the Loans; however, interest shall accrue on all amounts outstanding under the Loans at one-quarter of one percent (0.25%) plus the rate of interest then payable under the Notes (and the Interest
Rate Floor shall also increase by one-quarter of one percent (0.25%)) from the date of such failure until such time as the deposit balance requirement is satisfied at the next semi-annual test. 

3.7. Lot Sales Requirement. (a) As a condition of the Loans, the Borrower shall diligently pursue Development of the Lots and
Construction and sale of the Units thereon. In addition, the Borrower (i) shall enter into and close under sales contracts to third parties on the following number of Lots with completed Units thereon, (ii) resulting in the cumulative
curtailments of the Development Loan set forth below, (iii) by each Milestone Date set forth below (the “Sales and Curtailment Requirement”): 
  

									
	 Number of Lots (Cumulative)
	  	Cumulative Curtailments
of Development Loan	 	  	Lots Remaining as
Collateral	  	Milestone Date
	 Phase I: 20
	  	$	3,220,000.00	  	  	Phase I : 36	  	December 31, 2013
	 Phase I: 38
	  	$	6,118,000.00	  	  	Phase I : 18	  	March 31, 2014
	 Phases I and II: 46
	  	$	7,098,000.00	  	  	Phase II: 64	  	June 30, 2014
	 Phases I and II: 59
	  	$	8,690,500.00	  	  	Phase II: 51	  	December 31, 2014
	 Phases I and II: 73
	  	$	10,405,500	  	  	Phase II: 37	  	June 30, 2015

 (b) Such sales contracts shall be acceptable to the Lender in all respects, provided that the Lender
shall not unreasonably withhold its approval of any sales contract for a Lot with a completed Unit that will result in a payment against principal under the Development Loan from sales proceeds of at least One Hundred Sixty-One Thousand and No/100
Dollars ($161,000.00) per Unit for Phase I and at least One Hundred Twenty-Two Thousand Five Hundred and No/100 Dollars ($122,500.00) per Unit for Phase II. 
 (c) Failure of the Borrower to comply with the Sales and Curtailment Requirement shall, at the Lender’s option, constitute an Event of Default under the Loan Documents; provided, however, that the
Lender agrees that it will not elect to call an Event of Default if the Borrower pays to the Lender, by the applicable Milestone Date, the amount necessary for the required Cumulative Curtailment of the Development Loan, as set forth in the
foregoing chart on the same line as for that Milestone Date, to be satisfied as of that Milestone Date (the “Substitute Curtailment Payment”). Payment of the Substitute Curtailment Payment shall not, however, entitle the Borrower to the
release of any Lots from the lien of the Deed of Trust. No Lots or Units shall be released except pursuant to settlement on a bona fide sale to a third party pursuant to Section 3.8 below. 

(d) The Borrower shall provide to the Lender marketing and sales reports on a monthly basis setting forth the status of marketing, sales
contracts and closings or settlements in such detail as the Lender may reasonably require. 
 3.8 Release Provisions. The
Deed of Trust shall contain the following provision for release of Lots and/or Units from the lien thereof: 
 “Provided
that the Grantor requests the release of one of the Lots with a completed Unit thereon from the lien of this Deed of Trust prior to the repayment in full of the Loans, and provided that the sales contract with


  
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respect to such Lot and/or Unit is in the form approved by the Beneficiary and at a minimum price set forth in the Loan Agreement, or if not set forth then otherwise satisfactory to the
Beneficiary in its discretion, then the Beneficiary agrees to release the lien of this Deed of Trust with respect to any one of the Lots and/or Units, upon Grantor’s written request, upon the following terms and conditions: 

 

	 	(a)	With respect to any Lot and completed Unit thereon in Phase I, payment of a Release Payment for each Lot and Unit to be released equal to the greater of:


 (i) $190,000.00 per Single Family Unit or $150,000.00 per Townhouse Unit plus one hundred percent (100%) of
the total hard and soft costs advanced from the Construction Loan for Construction of the Unit, or 
 (ii) one hundred percent
(100%) of the Net Settlement Proceeds (hereinafter defined), or 
 (iii) ninety percent (90%) of the sales price under
the sales contract being settled. 
 The Release Payment will be applied by the Lender first to the costs advanced from the
Construction Loan for Construction of the Unit and the remainder will be applied to the outstanding principal balance of the Development Loan. “Net Settlement Proceeds” means the gross sales price of the Lot less customary and usual
settlement charges and real estate commissions approved by the Beneficiary, without payment of any sums to the Grantor or any affiliated person or entity of the Grantor; 

 

	 	(b)	With respect to any Lot and completed Unit thereon in Phase II, payment of a Release Payment for each Lot and Unit to be released equal to the greater of:


 (i) $122,500 per Unit plus one hundred percent (100%) of the total hard and soft costs advanced from the
Construction Loan for Construction of the Unit, or 
 (ii) one hundred percent (100%) of the Net Settlement Proceeds, or

 (iii) ninety percent (90%) of the sales price under the sales contract being settled. 

The Release Payment will be applied by the Lender first to the costs advanced from the Construction Loan for Construction of the Unit and
the remainder will be applied to the outstanding principal balance under the Development Loan; 
  

	 	(c)	No Event of Default shall then exist and be continuing; 

  

	 	(d)	The Grantor pays all fees, costs, charges and expenses (including without limitation reasonable attorneys’ fees) relating to the preparation, execution and
recordation of any document required in connection with any such partial release; and 

  

	 	(e)	The Grantor pays a fee in the amount of One Hundred and No/100 Dollars ($100.00) for processing the request for release (“Processing Fee”); provided, however,
that the Processing Fee will be waived in the event the purchaser under the sales contract acquires the Lot and/or Unit using EagleBank as its mortgage lender for the purchase money of the Lot and/or Unit. 


Notwithstanding the foregoing, no release price shall be payable for the release of streets or roadways, or storm water maintenance or other public
facilities, that are to be dedicated to the District of Columbia for public maintenance, provided the same are in accordance with a site plan that shall have been approved by the Beneficiary.” 

3.9 Intercreditor Agreement. It is understood that, contemporaneously herewith, the Borrower has borrowed Three Million and No/100
Dollars ($3,000,000.00) (the “Subordinate Loan”) from Rosalie K. Stahl Trust (“Subordinated Lender”). As a condition of closing the Loan, Subordinated Lender shall enter into a Subordination and Standstill Agreement with the
Lender, in form and substance satisfactory to the Lender in all respects, pursuant to which Subordinated Lender shall subordinate all of its rights in and to the Subordinate Loan to the Lender’s rights, remedies and security under the Loan
Documents. 

  
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 3.10 Environmental Matters. It is understood that the Property contains fill material
at varying depths, the source of which is unknown, as the same is described in that certain Phase II Environmental Evaluation (the “Phase II Report”) dated July 16, 2012 prepared by Geo-Technology Associates, Inc. (the “Phase II
Engineer”). The Borrower shall comply with all recommendations contained in the Phase II Report and any supplemental recommendations of the Phase II Engineer or of any environmental engineer retained by the Lender with respect to testing,
placement and/or removal of fill material from the Property. The Lender shall have the right to retain environmental engineers and/or consultants from time to time for purposes of testing and recommendations with respect to the fill material and its
placement and/or removal and disposal off-site, and the Borrower shall comply with any additional recommendations or requirements with respect thereto (“Additional Recommendations”). The Borrower shall keep appropriate records of the means
and location of disposal of the fill material. It will be a condition of disbursements of the Development Loan that the Phase II Engineer and any other environmental engineer and/or consultant certify to the Lender that the Borrower has complied
with the recommendations contained in the Phase II Report and any such other Additional Recommendations. 
 3.11 Home Owners
Association. In the event the Borrower intends to establish a home owners association for either or both of Phase I and/or Phase II, the organizational and governing documents, and all rules and regulations related thereto, shall be subject to
the Lender’s prior written approval. 
 SECTION FOUR 
 PAYMENTS, COMPUTATIONS, FEES, CHARGES AND PROTECTIVE ADVANCES 
 4.1
Payments. All payments due with respect to this Agreement or the Loans shall be made in immediately available funds to the Lender at such place as designated by the Lender from time to time. The Lender is authorized, but shall be under no
obligation, to charge any deposit account maintained by the Borrower with the Lender or any affiliate of the Lender for any payments due to the Lender with respect to this Agreement or the Loans. Payments shall be applied, at Lender’s sole
discretion: (i) first, to payment of accrued and unpaid interest, if any; (ii) second, to payment of any principal then due, if any; (iii) third, to late charges, if any; (iv) fourth, to reasonable attorneys’ fees and costs
of collection; and (v) fifth, to reduce the outstanding principal balance of the Note until such principal shall have been fully repaid. All payments hereunder shall be made without offset, demand counterclaim, deduction, abatement, defense, or
recoupment, each of which the Borrower hereby waives. 
 4.2 Late Charges. If any payment due under either of the Notes
is not made within ten (10) days of its due date, the Borrower shall pay to the Lender upon demand (which may be in the form of the usual monthly billing or invoice) a late charge equal to five percent (5%) of the amount of such payment.

 4.3. Default Rate. After an Event of Default (hereinafter defined), the interest which accrues on the Notes shall be
increased to the Default Rate (as defined in the Notes). 
 4.4 Computations. Interest and fees on the Loans shall be
computed on the basis of a year of three hundred sixty (360) days and actual days elapsed. 
 4.5 Prepayment. The
Borrower may prepay either or both of the Notes in whole or in part without premium or penalty at any time upon ten (10) days prior written notice to the Lender. Partial prepayments shall be applied to installments of principal in their inverse
order of maturity, if applicable. Amounts prepaid under the Notes may be re-borrowed in accordance with the terms and conditions of this Agreement. 
 4.6 Indebtedness. As used in this Agreement, the term “Indebtedness” means all present and future indebtedness of the Borrower to the Lender arising out of or in connection with the Notes
or any of the other Loan Documents. 

  
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 SECTION FIVE 
 CONDITIONS 
 5.1 Conditions Precedent to Closing. In addition to any
other conditions stated in this Agreement, the following conditions must be satisfied prior to Lender closing on the Loan. 

(a) Loan Documents. Receipt by Lender of appropriately completed and duly executed originals of this Agreement, the Notes, the
Guaranty, the Deed of Trust, the Leases Assignment, the Account Assignment, the Contracts Assignment, the Documents Assignment, the Consents, the Environmental Indemnity and UCC-1 Financing Statements, all as Lender may require (collectively,
together with any other documents executed and delivered in connection with the Indebtedness, the “Loan Documents”). 

(b) Organizational Documents. The Borrower and each entity comprising the Borrower shall supply to the Lender: (i) a
currently certified copy of its Articles of Organization and all amendments thereto; (ii) evidence satisfactory to the Lender and its counsel that it is in good standing in the jurisdiction where organized and qualified to do business in every
jurisdiction in which the nature of its businesses or its properties makes such qualification necessary; (iii) resolutions authorizing the due execution and delivery of the Loan Documents to which it is a party; and (iv) certified copies
of its Operating Agreement and all amendments thereto. The Articles of Organization and the Operating Agreement of Borrower and each entity comprising the Borrower shall not be amended, changed or modified in any respect without prior written
consent of the Lender. In addition, the Guarantor shall supply, to the extent it has not previously done so in any prior transaction with the Lender: (i) a currently certified copy of its Articles of Incorporation and all amendments thereto;
(ii) evidence satisfactory to Lender and its counsel that it is in good standing in the jurisdiction where organized and qualified to do business in every jurisdiction in which the nature of its businesses or its properties makes such
qualification necessary; (iii) resolutions authorizing the due execution and delivery of the Loan Documents to which it is a party and a certificate of incumbency; and (iv) certified copies of its By-Laws and all amendments thereto. The
Articles of Incorporation and the Bylaws of the Guarantor shall not be amended, changed or modified in any respect without the prior written consent of the Lender; provided, however, that on the condition that the Lender is given thirty
(30) days advance written notice, the Lender hereby consents to the Guarantor’s change in corporate domicile from Delaware to Virginia and all amendments to its organizational documents as are reasonably required to effect such change in
domicile subsequent to the closing of the Loan; provided further that UCC-1 financing statements shall be filed in the changed domicile at the cost and expense of the Borrower. 

(c) Opinion. Receipt by the Lender of the opinion(s) of the counsel for Borrower and the Guarantor, in form and content
satisfactory to the Lender, in its sole, but reasonable, discretion. 
 (d) Insurance. Receipt by the Lender of
certificate(s) of insurance to evidence a fully paid policy or policies of comprehensive public liability insurance naming Lender as an additional insured thereunder in an amount not less than Two Million and No/100 Dollars ($2,000,000.00) in the
aggregate with not less than One Million and No/100 Dollars ($1,000.000.00) per occurrence; in any event, the amount of all insurance shall be sufficient to prevent any co-insurance contribution on any loss, with each policy providing for a thirty
(30) day prior written notice of cancellation, amendment or alteration. 
 (e) Operating Account. The Borrower shall
have established its primary operating account with the Lender. 
 (f) Financing Statements. The financing statements
necessary to perfect the Lender’s security interest in the personal property subject to the Deed of Trust, and in any other collateral requiring the filing of a financing statement for perfection of a lien thereon, shall be duly filed in all
appropriate offices and 

  
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jurisdictions, all other financing statements covering any of such personal property shall be terminated or the Lender shall be reasonably satisfied that such terminations are forthcoming, and
filing and recording receipts evidencing such filings and terminations shall be delivered to Lender, all in form and substance satisfactory to the Lender. 
 (g) Property Documents. The Lender shall have received and approved in its sole discretion, the following: 
 (1) Appraisals. An appraisal of the Property, prepared by an appraiser acceptable to the Lender, in form and content acceptable to the Lender, conforming to all regulatory and internal appraisal
guidelines applicable to or established by the Lender, in its sole, absolute, nonreviewable discretion, reflecting a “when developed” discounted value satisfactory to the Lender (the “Appraisal”); 

(2) Title Insurance. A commitment for title insurance (the “Title Commitment”) insuring the first
priority lien of the Deed of Trust in the aggregate amount of the Notes, containing no exceptions unacceptable to the Lender, issued in the name of the Lender by a title company acceptable to the Lender and in an amount equal to the aggregate
principal amount of the Notes. The Title Commitment and the title policy issued pursuant thereto (the “Title Policy”) shall reflect that all requirements for issuance of the Title Policy have been satisfied, and shall contain such other
endorsements or coverages as the Lender may require. 
 (3) Survey. A current survey and legal description
of the Property satisfactory to the Lender from a registered land surveyor of the District of Columbia, which survey shall show all easements, rights of way and other matters of record, shall locate all existing improvements on the Property, shall
contain metes and bounds descriptions of each applicable constituent portion of the Property acceptable to the Lender and its counsel, shall generally show a state of facts acceptable to the Lender, and shall contain a surveyor’s certificate
satisfactory to the Lender. 
 (4) Subdivision Plat. Recordation of a subdivision plat which plat shall
have been approved by the Lender and its construction consultant. The Lender acknowledges that it has received and approved the Subdivision Plat that has been recorded to create 29 subdivided Single Family Lots in both Phases that have frontage on a
public street, which Subdivision Plat has been recorded on June 25, 2012 in Book 206 at page 117 among the records of the Office of the Surveyor for the District of Columbia (the “Subdivision Plat”). The Lender’s approval of the
Subdivision Plat is only for purposes of the Development Loan, subject to all of the other terms and conditions for advances under the Development Loan for each of the Phases, and does not constitute an approval for purposes of advances under the
Construction Loan, the requirements for which are set forth in Section 5.4 below. 
 (5) Environmental
Audit. See Section 3.10 hereinabove. 
 (6) Flood Hazard. Evidence that no part of the Property
is located in a special flood hazard area. 
 (7) Public Utilities. Evidence to the effect that sanitary
sewer, water, electric, gas, telephone and other public utilities are available and adequate to serve the Property. 
 (8) Licenses and Permits. Copies of all licenses and permits in connection with the Property, including without limitation licenses, permits, proffers and other conditions to final subdivision and
site plan approval for Phase I and thereafter copies of all such items by the applicable required date for Phase II. 

  
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 (9) Consultant’s Review. Satisfactory review and analysis by the
Lender’s construction consultant of the Development and Construction plans, documents and budgets. 
 (10)
PUD Order. Receipt and satisfactory review and analysis by the Lender and its counsel of the Planned Unit Development Order constituting approval of development of the Property and evidence that the Order remains in full force and effect.

 (11) Zoning. Receipt by the Lender of a zoning endorsement to the Title Policy acceptable to the Lender
or such other written evidence as is acceptable to the Lender that the Property is zoned consistent with the uses contemplated beyond any possibility of appeal and can be developed as proposed as a matter of right, and to the effect, further, that
there are no pending proceedings, either administrative, legislative or judicial, which would in any manner adversely affect the status of the zoning with respect to the Property or any part thereof. 

(12) Genderson Agreement. Receipt and satisfactory review and analysis by the Lender of the agreement between the
Borrower and/or the Guarantor and/or 6000 New Hampshire Avenue, LLC and Richard Genderson, with respect to any impact that agreement has on development of the Property. 

(13) Marketing Report. Receipt and satisfactory review and analysis by the Lender of a marketing report prepared by
Noell Consulting. 
 (h) No Default. No event shall have occurred and be continuing that constitutes an Event of Default
(as defined below). 
 (i) Representations. All representations and warranties contained in this Agreement shall be true
and correct in every material respect as of the date of closing of the Loans. 
 (j) Satisfactory Documents. All
documents delivered pursuant to this Agreement must be in form and substance satisfactory to the Lender and its counsel and all legal matters incident to this Agreement must be satisfactory to Lender’s counsel. 

(k) Identification. As required by federal regulation, closing the Loans is contingent upon satisfactory verification of identity
of the signatories and verification that none of the Borrower or the Guarantor or any signers is restricted from conducting business in the United States. 
 5.2 Conditions Precedent to Advances of Development Loan. Except for the initial advance at the closing of the Loans of up to Four Hundred Thousand and No/100 Dollars ($400,000.00) for closing
costs in accordance with the Development Budget (hereinafter defined) as approved by the Lender, in addition to any other conditions stated in this Agreement, the following conditions related to the Development must be satisfied prior to any
disbursements under the Development Loan and all of the following matters shall have been approved by the Lender. 
 (a)
Permits. Copies of any and all building and similar permits required in connection with the Development, together with such evidence as the Lender may require to the effect that all fees for such permits have been paid. Satisfactory evidence
shall be submitted to the Lender that all governmental approvals necessary 

  
 10 









 
for the Development have been obtained. The Lender shall also receive satisfactory evidence that all applicable safety, ecological and environmental laws and any other codes or regulations
affecting the Development and/or proposed use of the Property have been complied with. 
 (b) Plans and Specifications.
Two (2) sets of complete copies of the final Plans and Specifications of the Development, which Plans and Specifications shall be satisfactory to the Lender in all respects. The Lender’s review of the Plans and Specifications is solely for
the benefit of the Lender, and the Lender’s approval thereof shall not be deemed in any respect to be a representation or warranty, expressed or implied, that the Development will be sound, have a value of any particular magnitude or otherwise
satisfy a particular standard. Prior to any advances for hard costs, the Borrower shall furnish the Lender with copies of the District-approved stamped Plans, together with such evidence as the Lender may require to the effect that such Plans and
Specifications have been approved by all governmental and quasi-governmental authorities having or claiming jurisdiction, and together with a final Development Budget which must be satisfactory to the Lender in its discretion. 

(c) Trade Payment Breakdown. A breakdown of total development costs, which shall include a draw schedule (the “Development
Budget”) containing reasonable details of amounts anticipated to be payable for each category of work to be performed and materials to be supplied in connection with the Development, and a projected schedule for the progress of the Development
in each Phase, all in such form and containing such details as the Lender shall require. Any change orders shall be subject to the Lender’s prior approval. No hard costs shall be advanced under the Development Loan until such time as the
Development Budget has been approved by the Lender in its sole discretion. The Borrower may, from time to time, request reallocation of amounts in the Development Budget based upon such reasonable supporting documentation justifying such
reallocation as may be approved by the Lender; any such reallocation shall be subject to the Lender’s approval in its sole discretion. 
 (d) Development Schedule. A projected Schedule (“Development Schedule”) for the progress of the Development of each Phase and a projection of cash flow for the project, each in such form
and containing such details as the Lender shall require. The Borrower shall be required to diligently pursue and proceed with the Development in accordance with the Development Schedule to completion. Development of Phase I must be complete within
one (1) year of closing on the Development Loan. Development of Phase II may commence at such time as (i) the subdivision plat for Phase II, which shall have been approved by the Lender and its Development consultant, has been duly
recorded, and (ii) the Borrower has completed Construction of and sold and closed on thirty-seven (37) Units in Phase I and the Release Payment for such thirty-seven (37) Units has been paid to the Lender (the “Phase II
Development Start Date”); provided, however, that the Phase II Development Start Date shall not occur later than December 31, 2013. Development of Phase II must be complete within one (1) year of the Phase II Development Start Date.
The Development Schedule shall support completion of each Phase of Development in accordance with the foregoing. Failure of the Borrower to meet the requirements of the Development Schedule for completion of Development of Phase I and Phase II,
respectively, shall constitute an Event of Default under this Agreement. 
 (e) Subdivision Plats. Prior to advances of
the Development Loan for Development of either Phase I or Phase II, a subdivision plant, which shall have been approved by the Lender, for such Phase shall have been duly recorded. 

(f) General Contractor. All contracts for Development of each Phase shall be subject to the Lender’s approval. Each
Development contract shall be assigned to the Lender effective on a default under any of the Loan Documents. Each Development contractor shall consent to such assignment and agree, in the event of any


  
 11 









 
such default, to continue performance of the contract for the Lender, if the Lender so requests. The Guarantor is hereby approved as the general contractor for Development. Prior to any advances
for Development costs, the Borrower shall furnish the Lender with a copy of the contractor’s license for that portion of the Development. The Borrower shall also furnish the Lender with copies of licenses for all major subcontractors.

 (g) Architect’s and Engineer’s Certificate. The architect and the engineer for the Development shall be
subject to the Lender’s approval. In addition, the contracts with the architect and the engineer shall be subject to the Lender’s approval. A certificate from the architect and/or project engineer will be required to the effect that the
Development, if completed in accordance with the Plans and Specifications, will comply with all federal, state, District and local laws, statutes, ordinances, codes, regulations, rules or other laws applicable to the Development of the applicable
Phase (“Applicable Laws”). Prior to any advances for Development costs, the Borrower shall furnish the Lender with a copy of the engineer’s license and the architect’s license. 

(h) Lender’s Development Consultant. The Plans and Specifications, Development Budget, Development Schedule and any and all
other Development documents requested by the Lender and/or its Development consultant (the “Lender’s Inspector”), shall be subject to approval by the Lender and the Lender’s Inspector. All draw requests shall be submitted to the
Lender and the Lender’s Inspector for review and approval. The Borrower shall be responsible for payment of all of the Lender’s Inspector’s fees. 
 5.3 Provisions Governing Disbursements of Development Loan. Disbursements of the Development Loan shall be governed by the following provisions: 

(a) The Development shall be performed by the Borrower in strict accordance with all applicable (whether present or future) laws,
ordinances, codes, rules, regulations, requirements and orders of any governmental or regulatory authority having or claiming jurisdiction. The Development shall be in strict accordance with all applicable use or other restrictions and the
provisions of any prior declarations, covenants, conditions, restrictions and zoning ordinances and regulations. 
 (b) The
Borrower shall have submitted to the Lender and the Lender’s Inspector such information as may be requested by the Lender or the Lender’s Inspector to verify the Development costs which are to be incurred in connection with the
Development. The Lender shall not be obligated to authorize disbursement of Development Loan proceeds with respect to the Development for an amount in excess of the Development costs to be incurred in connection therewith as verified by the Lender
or the Lender’s Inspector pursuant to the provisions of the preceding sentence. The funding of each draw request is subject to an inspection and approval by the Lender’s Inspector. 

(c) The Development Loan proceeds will be advanced in installments as the Development progresses in accordance with the terms of this
Agreement to finance the Development in accordance with the Plans and Specifications, but no more often than once monthly, provided that the Lender is satisfied that the amounts available under the Development Loan will be sufficient to complete the
work and pay or provide for all reasonably anticipated Development costs through the required Development completion date under the Development Schedule. In the event the Lender determines that the amounts available under the Development Loan,
together with any additional cash provided by the Borrower to the Lender, if any, is insufficient to complete the Development in such manner as the Lender may require, the Borrower shall provide such funds necessary to complete the Development.
Except for advances for materials and supplies to be delivered to the Property, as to which no retainage will be required, advances of the Development Loan shall be subject to withholding of retainage in the amount of ten percent (10%) of
direct Development costs approved by the Lender or the Lender’s Inspector, and at the Lender’s discretion of labor and materials brought into the Development and eligible for payment on a trade payable basis. 

  
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 (d) Advances of the Development Loan shall be conditioned upon the Lender’s receipt of
(i) written certification by parties approved by the Lender that the work which is the basis of the requested advance was completed in accordance with the approved Plans and Specifications and within the cost estimates approved by the Lender
(or such adjustments of cost estimates of line items as shall be required and approved by the Lender, provided that sufficient funds to complete the Development will be available under such adjusted estimates), to the satisfaction of the Lender, and
(ii) evidence that at that time all necessary certificates required to be obtained from any board, agency or department (government or otherwise) have been obtained, and (iii) written certification by the Phase II Engineer and any other
environmental engineer or consultant retained by the Lender that the work which is the basis of the requested advance has been performed in compliance with the recommendations in the Phase II Report and any Additional Recommendations. All documents
required to be submitted to the Lender as a condition of each disbursement shall be on standard AIA forms and shall be furnished to the Lender at the Lender’s address set forth in this Agreement. The Lender shall have at least ten
(10) business days after receipt of the foregoing documentation prior to funding an approved advance. 
 (e) The Lender
shall have received a notice of title continuation or an endorsement to the title insurance policy with respect to the Property theretofore delivered to the Lender, showing that since the last preceding advance, there has been no change in the
status of title and no other exception not theretofore approved by the Lender, which endorsement shall have the effect of advancing the effective date of the policy to the date of the advance then being made and increasing the coverage of the policy
by an amount equal to the advance then being made, if the policy does not by its terms provide automatically for such an increase. 
 (f) Before making the first advance of Development Loan Proceeds, the Borrower shall have provided to the Lender satisfactory documentary evidence that (i) the general contractor has obtained a Basic
Business License from the District of Columbia and such license is in effect, and (ii) the landfill facility at Lorton, Virginia or another appropriate facility has agreed to accept for disposal all of the fill material identified in the Phase
II Report as recommended to be disposed of off-site. 
 (g) Before making the first advance of Development Loan Proceeds for
Development of Phase II, the Borrower shall have acquired fee simple title to the following (the “Exchange Parcels”: (i) the triangular parcel between lots 38 and 42 that would complete lot 42 as a rectangle, and (ii) the
triangular parcel between lots 23 and 45 that would complete lot 45 as a rectangle, as the Exchange Parcels are shown on that certain ALTA/ACSM Land Title Survey of the Property prepared by Dewberry (the “Dewberry Survey”). The Borrower
shall provide the Lender with thirty (30) days advance notice of its closing on the acquisition of the Exchange Parcels. In connection with such closing, the Borrower shall execute and deliver such instruments of modification to this Agreement
and the Loan Documents as the Lender may require in order to spread the Lender’s liens and security interests to include the Exchange Parcels, a revised survey shall be delivered to the Lender, and the Lender’s loan policy of title
insurance shall be endorsed to include the Exchange Parcels. All provisions of the loan documents, including without limitation the Environmental Indemnity and all insurance requirements, shall apply to the Exchange Parcels immediately upon their
acquisition by the Borrower. 
 (h) Before making any advance of Development Loan proceeds, the Lender may require the Borrower
to obtain from any contractor or materialmen it may engage in connection with the Development, acknowledgements of payment and releases of liens and rights to claim liens, if applicable, down to the date of the last preceding advance and
concurrently with the final advance. All such acknowledgements and releases shall be in form and substance satisfactory to the Lender. 

  
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 (i) The Lender shall not be obligated to make the final advance of Development Loan proceeds
hereunder with respect to each Phase, which shall include the retainage described above, unless (i) the Lender’s Inspector has certified to the Lender on standard AIA forms that the work is complete; (ii) the Lender has received
evidence satisfactory to it that all work requiring inspection by governmental or regulatory authorities having or claiming jurisdiction has been duly inspected and approved by such authorities and by any rating or inspection organization, bureau,
association, or office having or claiming jurisdiction; (iii) that completion of the Development for the applicable Phase has occurred free and clear of all mechanics’ or materialmen’s liens and any bills or claims for labor,
materials and services in connection with the completion of the Development; and (iv) certificates from the Borrower’s architect, engineer and/or contractor, and, if required, from the Lender’s Inspector, certifying that the
Development for the Phase has been completed in accordance with, and as completed comply with, the Plans and Specifications and all laws and governmental requirements. All fees and costs of the Lender’s Inspector shall be paid by the Borrower.

 (j) The Lender shall not be obligated to make any advances of Development Loan proceeds hereunder unless, in the reasonable
judgment of the Lender, all work completed at the time of the application for advance has been performed in a good and workmanlike manner, and all materials and fixtures usually furnished and installed at that stage of the development have been
furnished and installed, and no default which has not been cured has occurred under this Agreement or any of the documents evidencing, securing or guaranteeing the Development Loan. 

5.4 Conditions Precedent to Advances of Construction Loan. In addition to any other conditions stated in this Agreement, the
following conditions related to Construction of Units must be satisfied prior to any disbursements under the Construction Loan and all of the following matters shall have been approved by the Lender. 

(a) Permits. Copies of any and all building and similar permits required in connection with the Construction for each Single
Family Lot or Townhouse Lot upon which a Unit is to be constructed, together with such evidence as the Lender may require to the effect that all fees for such permits have been paid. Satisfactory evidence shall be submitted to the Lender that all
governmental approvals necessary for the Construction have been obtained. The Lender shall also receive satisfactory evidence that all applicable safety, ecological and environmental laws and any other codes or regulations affecting the Construction
and/or proposed use of the Property have been complied with. 
 (b) Division of Lots. With respect to any interior lots
that do not have frontage on a public street and accordingly are not eligible for subdivision into record lots pursuant to applicable subdivision laws and regulations of the District of Columbia, division of those lots into separate tax lots in
accordance with the requirements of the D.C. Office of Tax and Revenue (“OTR”) pursuant to an Application for Division of Lots based upon metes and bounds descriptions. Prior to any advance under the Construction Loan for any Unit that is
not a record lot under the Subdivision Plat, the Borrower shall have satisfied all applicable legal requirements to create such lot as an individual lot that may lawfully be separately conveyed. 

(c) Plans and Specifications. Two (2) sets of complete copies of the final Plans and Specifications for the Construction,
which Plans and Specifications shall be satisfactory to the Lender in all respects. The Lender’s review of the Plans and Specifications is solely for the benefit of the Lender, and the Lender’s approval thereof shall not be deemed in any
respect to be a representation or warranty, expressed or implied, that the Construction will be sound, have a value of any particular magnitude or otherwise satisfy a particular standard. Prior to any advances for hard costs, the Borrower shall
furnish the Lender with copies of the District-approved stamped Plans, together with such evidence as the Lender may require to the effect that such Plans and Specifications have been approved by all governmental and quasi-governmental authorities
having or claiming jurisdiction, and together with a final Construction Budget which must be satisfactory to the Lender in its discretion. 

  
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 (d) Trade Payment Breakdown. A breakdown of total development costs, which shall
include a draw schedule (the “Construction Budget”) containing reasonable details of amounts anticipated to be payable for each category of work to be performed and materials to be supplied in connection with the Construction, and a
projected schedule for the progress of the Construction in each Phase, all in such form and containing such details as the Lender shall require. The parties shall have agreed on the Unit Costs Budget and have attached the approved Unit Costs Budget
to this Agreement as Exhibit B. Any change orders shall be subject to the Lender’s prior approval. No hard costs shall be advanced under the Construction Loan until such time as the Construction Budget has been approved by the Lender in
its sole discretion. The Borrower may, from time to time, request reallocation of amounts in the Construction Budget based upon such reasonable supporting documentation justifying such reallocation as may be approved by the Lender; any such
reallocation shall be subject to the Lender’s approval in its sole discretion. 
 (e) Construction Schedule. A
projected Schedule (“Construction Schedule”) for the progress of Construction of Units in each Phase and a projection of cash flow for each Phase, each in such form and containing such details as the Lender shall require. The Borrower
shall be required to diligently pursue and proceed with Construction of Units in accordance with the Construction Schedule to completion. No more than twelve (12) Townhouse Units and six (6) Single Family Units may be under Construction at
any one time. Any Unit as to which Construction has commenced within the Loan term must be completed prior to Maturity, and commence of construction of any Units within four (4) months prior to Maturity shall be prohibited. The Construction
Schedule shall be consistent with the foregoing. Failure of the Borrower to meet the requirements of the Construction Schedule shall constitute an Event of Default under this Agreement. 

(f) General Contractor. All contracts for Construction of Units shall be subject to the Lender’s approval. The Construction
contract shall be assigned to the Lender effective on a default under any of the Loan Documents. The general contractor shall consent to such assignment and agree, in the event of any such default, to continue performance of the contract for the
Lender, if the Lender so requests. Comstock Homes of Washington, L.C., an affiliate of the Guarantor, is hereby approved as the general contractor for Construction of Units. Prior to any advances for Construction costs for any Unit, the Borrower
shall furnish the Lender with a copy of the contractor’s license for that portion of the Construction. The Borrower shall also furnish the Lender with copies of licenses for all major subcontractors. 

(g) Architect’s and Engineer’s Certificate. The architect and the engineer for the Construction shall be subject to the
Lender’s approval. In addition, the contracts with the architect and the engineer shall be subject to the Lender’s approval. A certificate from the architect and/or project engineer will be required to the effect that the Construction of
the Units being built, if completed in accordance with the Plans and Specifications, will comply with all federal, state, District and local laws, statutes, ordinances, codes, regulations, rules or other laws applicable to the Construction of the
applicable Unit (“Applicable Laws”). Prior to any advances for Construction costs, the Borrower shall furnish the Lender with a copy of the engineer’s license and the architect’s license. 

(h) Lender’s Construction Consultant. The Plans and Specifications, Construction Budget, Construction Schedule and any and
all other Construction documents requested by the Lender and/or its Construction consultant (the “Lender’s Inspector”), shall be subject to approval by the Lender and the Lender’s Inspector. All draw requests shall be submitted
to the Lender and the Lender’s Inspector for review and approval. The Borrower shall be responsible for payment of all of the Lender’s Inspector’s fees. 

  
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 5.5 Provisions Governing Disbursements of Construction Loan. Disbursements of the
Construction Loan shall be governed by the following provisions: 
 (a) The Construction of all Units shall be performed by the
Borrower in strict accordance with all applicable (whether present or future) laws, ordinances, codes, rules, regulations, requirements and orders of any governmental or regulatory authority having or claiming jurisdiction. Construction of Units
shall be completed in a manner so as not to encroach upon any easement or right-of-way, or upon the land of others. Construction of each Unit shall be wholly within all applicable building restriction lines and set-backs, however established, and
shall be in strict accordance with all applicable use or other restrictions and the provisions of any prior declarations, covenants, conditions, restrictions and zoning ordinances and regulations. 

(b) The Borrower shall have submitted to the Lender and the Lender’s Inspector such information as may be requested by the Lender or
the Lender’s Inspector to verify the Construction costs which are to be incurred in connection with Construction. The Lender shall not be obligated to authorize disbursement of Construction Loan proceeds with respect to Construction of any Unit
for an amount in excess of the Construction costs to be incurred in connection therewith as verified by the Lender or the Lender’s Inspector pursuant to the provisions of the preceding sentence. The funding of each draw request is subject to an
inspection and approval by the Lender’s Inspector. 
 (c) The Construction Loan proceeds will be advanced in installments
as the Construction progresses in accordance with the terms of this Agreement to finance the Construction of Units in accordance with the Plans and Specifications, but no more often than once monthly, provided that the Lender is satisfied that the
amounts available under the Construction Loan will be sufficient to complete the work and pay or provide for all reasonably anticipated Construction costs through the required Construction completion date under the Construction Schedule. In the
event the Lender determines that the amounts available under the Construction Loan, together with any additional cash provided by the Borrower to the Lender, if any, is insufficient to complete the Construction in such manner as the Lender may
require, the Borrower shall provide such funds necessary to complete Construction. Advances shall be subject to withholding of retainage in the amount of ten percent (10%) of direct Construction costs approved by the Lender or the Lender’s
Inspector, and at the Lender’s discretion of labor and materials brought into the Construction site and eligible for payment on a trade payable basis. 
 (d) Each advance shall be conditioned upon the Lender’s receipt of (i) written certification by parties approved by the Lender that the work which is the basis of the requested advance was
completed in accordance with the approved Plans and Specifications and within the cost estimates approved by the Lender (or such adjustments of cost estimates of line items as shall be required and approved by the Lender, provided that sufficient
funds to complete the Construction will be available under such adjusted estimates), to the satisfaction of the Lender, and (ii) that at that time all necessary certificates required to be obtained from any board, agency or department
(government or otherwise) have been obtained. All documents required to be submitted to the Lender as a condition of each disbursement shall be on standard AIA forms and shall be furnished to the Lender at the Lender’s address set forth in this
Agreement. The Lender shall have at least ten (10) business days after receipt of the foregoing documentation prior to funding an approved advance. 
 (e) With respect to Townhouse Lots, at such time as the footings for the foundation of each “Stick” (hereinafter defined) have been installed, the Lender shall have received a “wall
check” or “foundation” survey of that stick that meets the Lender’s survey requirements and that shows that (i) all new construction is 

  
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within the boundary lines of the applicable Townhouse Lot and is in compliance with all applicable setback, location and area requirements of all applicable governmental approvals, and
(ii) there is no change in condition which could adversely affect the applicable Unit. For purposes of this Agreement, a “Stick” means a building containing contiguous Townhouse Units constructed on a single, shared foundation.

 (f) With respect to Single Family Lots, at such time as the footings for the foundation of the Unit have been installed, the
Lender shall have received a ‘wall check” or “foundation” survey of that Unit that meets the Lender’s survey requirements and that shows that (i) all new construction is within the boundary lines of the applicable
Single Family Lot and is in compliance with all applicable setback, location and area requirements of all applicable governmental approvals, and (ii) there is no change in condition which could adversely affect the applicable Unit. 

(g) The Lender shall have received a notice of title continuation or an endorsement to the title insurance policy with respect to the
Property theretofore delivered to the Lender, showing that since the last preceding advance, there has been no change in the status of title and no other exception not theretofore approved by the Lender, which endorsement shall have the effect of
advancing the effective date of the policy to the date of the advance then being made and increasing the coverage of the policy by an amount equal to the advance then being made, if the policy does not by its terms provide automatically for such an
increase. 
 (h) Before making any advance of Construction Loan proceeds, the Lender may require the Borrower to obtain from any
contractor or materialmen it may engage in connection with the Construction of any Unit, acknowledgements of payment and releases of liens and rights to claim liens, if applicable, down to the date of the last preceding advance and concurrently with
the final advance. All such acknowledgements and releases shall be in form and substance satisfactory to the Lender. 
 (i) No
advances will be made for building materials or furnishings that have not yet been incorporated into the Unit(s) (“Stored Materials”) unless (a) the Borrower has good title to the Stored Materials and has furnished satisfactory
evidence of such title to the Lender, (b) the Stored Materials are components in a form ready for incorporation into the applicable Unit(s) and will be so incorporated within a period of forty-five (45) days from the date of the advance
for the Stored Materials, (c) the Stored Materials are in the Borrower’s possession and are satisfactorily stored on the Property or at such other location as the Lender may approve, in each case with adequate safeguards to prevent
commingling with materials for other projects, (d) the Stored Materials are protected and insured against loss, theft and damage in a manner and amount satisfactory to the Lender and the Lender has received Certificates of Insurance reflecting
Borrower as an additional insured and owner of the Stored Materials, (e) the Stored Materials have been paid for in full or will be paid for in full from the funds to be advanced, (f) the lender has or will have upon the payment for the
Stored Materials from the advanced funds a perfected, first priority security interest in the Stored Materials, (g) all lien rights and claims of the supplier have been released or will be released upon payment with the advanced funds, and
(h) following the advance for the Stored Materials, the aggregate amount of advances for Stored Materials that have not yet been incorporated into the Construction will not exceed Ten Thousand Dollars ($10,000.00) per Unit that is then under
Construction. 
 (j) The Lender shall not be obligated to make the final advance of Construction Loan proceeds hereunder with
respect to any Unit, which shall include the retainage described above, unless (i) the Lender’s Inspector has certified to the Lender on standard AIA forms that the work is complete (except for punch list items which the Lender may approve
and for which Lender may retain 150% of the cost of correction) in accordance with the Plans and Specifications; (ii) the Lender has received evidence satisfactory to it that all work requiring inspection by governmental or regulatory
authorities having or claiming jurisdiction has been duly 

  
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inspected and approved by such authorities and by any rating or inspection organization, bureau, association, or office having or claiming jurisdiction; (iii) that completion of Construction
of the Unit has occurred free and clear of all mechanics’ or materialmen’s liens and any bills or claims for labor, materials and services; (iv) certificates from the Borrower’s architect, engineer and/or contractor, and, if
required, from the Lender’s Inspector, certifying that Construction of the Unit has been completed in accordance with, and as completed comply with, the Plans and Specifications and all laws and governmental requirements; and (v) a
certificate of occupancy or residential use permit shall have been validly issued by the District of Columbia to allow lawful residential occupancy of the completed Unit. All fees and costs of the Lender’s Inspector shall be paid by the
Borrower. 
 (k) The Lender shall not be obligated to make any advances of Construction Loan proceeds hereunder unless, in the
reasonable judgment of the Lender, all work completed at the time of the application for advance has been performed in a good and workmanlike manner, and all materials and fixtures usually furnished and installed at that stage of the development
have been furnished and installed, and no default which has not been cured has occurred under this Agreement or any of the documents evidencing, securing or guaranteeing the Construction Loan. 

(l) During default after expiration of any applicable cure period hereunder, the Lender, at its option, may make any and all advances, or
any part thereof, directly to the general contractor or subcontractors against requisitions for payment under the general contractor’s contract or the respective contracts or subcontracts, as the case may be; the execution of this Agreement by
the Borrower shall and does constitute an irrevocable direction and authorization to so advance funds, and such funds shall be added to the principal balance of the Construction Loan, shall bear interest as set forth in the Construction Loan Note
and shall be secured by the Deed of Trust. All payments made pursuant to the foregoing shall be made within the scope of the respective contracts. 
 SECTION SIX 
 REPRESENTATIONS AND WARRANTIES 

In order to induce the Lender to extend credit to the Borrower, the Borrower and the Guarantor each make the following representations
and warranties as to itself: 
 6.1 Organization. The Borrower and each entity comprising the Borrower is a limited
liability company duly organized, validly existing and in good standing under the laws of the Commonwealth of Virginia and is duly qualified as a foreign limited liability company and in good standing under the laws of each other jurisdiction in
which such qualification is required. The Guarantor represents and warrants that it is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware and is duly qualified as a foreign corporation and in
good standing under the laws of each other jurisdiction in which such qualification is required. 
 6.2 Execution and
Delivery. The Borrower and each entity comprising the Borrower has the power, and has taken all of the necessary actions, to execute and deliver and perform its obligations under the Loan Documents, and the Loan Documents, when executed and
delivered, will be binding obligations of each such entity enforceable in accordance with their respective terms. 
 6.3
Power. Each of the Borrower and each entity comprising the Borrower has the power and authority to own its properties and to carry on its business as now being conducted. 

6.4 Financial Statements. Al financial statements and information delivered to the Lender are correct and complete in all material
respects and present fairly the financial conditions, and reflect all known liabilities, contingent and otherwise, of the Borrower and the Guarantor as of the dates of such statements and information, and since such dates no material adverse change
in the assets, liabilities, financial condition, business or operations of the Borrower or the Guarantor has occurred. 

  
 18 









 6.5 Taxes. All tax returns and reports of the Borrower and the Guarantor required by
law to be filed have been duly filed, and all taxes, assessments, other governmental charges or levies (other than those presently payable without penalty or interest and those that are being contested in good faith in appropriate proceedings) upon
the Borrower and/or the Guarantor and upon any of their respective properties, assets, income or franchises, that are due and payable have been paid. 
 6.6 Litigation. There is no action, suit or proceeding pending or, to the knowledge of the Borrower or the Guarantor, threatened against or affecting the Borrower or the Guarantor that, either in
any case or in the aggregate, may result in any material adverse change in the business, properties or assets or in the condition, financial or otherwise, of the Borrower or the Guarantor, or that may result in any material liability on the part of
the Borrower or the Guarantor that would materially and adversely affect the ability of the Borrower or the Guarantor to perform its and/or their obligations under the Loan Documents, or that questions the validity of any of the Loan Documents or
any action taken or to be taken in connection with the Loan Documents. 
 6.7 No Breach. The execution and delivery of
the Loan Documents, and compliance with the provisions of the Loan Documents, will not conflict with or violate any provisions of law or conflict with, result in a breach of, or constitute a default under, the organizational documents of the
Borrower, or any judgment, order or decree binding on the Borrower, or any other agreements to which the Borrower is a party. 

6.8 No Defaults. To the best of the Borrower’s knowledge, the Borrower is not in default with respect to any debt, direct or
indirect, upon or as to which the Borrower has any liability or obligation. 
 6.9 Compliance. The Borrower is in
compliance in all material respects with all applicable laws and regulations, including, without limitation, the Employee Retirement Income Security Act of 1974, as amended (“ERISA”). 

6.10 Approvals. No authorizations, approvals or consents of, and no filings and registrations with, any governmental or regulatory
authority or agency, are necessary for the execution, delivery or performance of the Loan Documents by the Borrower. 
 6.11
Title to Assets. The Borrower has good and marketable title to all of its assets, subject only to the liens and security interests permitted by this Agreement. 
 6.12 Use of Proceeds. The proceeds of the Loans shall be used only for the purposes described in this Agreement. The proceeds of the Loans shall not be used to purchase or carry any margin stock,
as such term is define din Regulation U of the Board of Governors of the Federal Reserve System. 
 SECTION SEVEN 

COVENANTS OF BORROWER AND GUARANTOR 
 In consideration of credit extended or to be extended by the Lender, the Borrower covenants and agrees as follows: 
 7.1 Financial Information. The Borrower and the Guarantor shall each deliver to the Lender: (i) with respect to the Borrower, each year within ninety (90) days after the close of its
fiscal year, financial statements prepared in accordance with standard accounting principles consistently applied, certified as true and correct by an officer of each such entity; (ii) with respect to the Guarantor, each year within ninety
(90) days after the close of its fiscal year, audited financial statements; (iii) each year within thirty (30) days after filing, a copy of each such entity’s federal income tax return and all schedules thereto, provided that in
the event of such extension such entity shall provide the Lender with a copy of the federal income tax return and all schedules thereto within thirty (30) days of the filing of same with the Internal Revenue Services, and (iv) promptly
upon the Lender’s request, such 

  
 19 









 
financial and other information as the Lender reasonably may require from time to time. All financial statements shall be in such reasonable detail and shall be accompanied by such certificates
of the Borrower or the Guarantor, as applicable, as may reasonably be required by the Lender. 
 7.2 Taxes. All tax
returns and reports of the Borrower required by law to be filed have been duly filed, and all taxes, assessments, other governmental charges or levies (other than those presently payable without penalty or interest and those that are being contested
in good faith in appropriate proceedings) upon the Borrower and upon the Borrower’s properties, assets, income or franchises, that are due and payable, have been paid. 
 7.3 Compliance with Laws. The Borrower shall comply with all applicable laws and regulations including, without limitation, ERISA. 

7.4 Maintain Existence. The Borrower and each entity comprising the Borrower, and the Guarantor, shall maintain its existence in
good standing, maintain and keep its properties in good condition (ordinary wear and tear excepted), maintain adequate insurance for all of its properties with financially sound and reputable insurers. The Borrower shall remain in the same line of
business as it is on the date of this Agreement and shall not enter into any new lines of business without the prior written consent of the Lender. 
 7.5 Notices. As soon as it has actual knowledge, the Borrower shall notify the Lender of the institution or threat of any material litigation or condemnation or administrative proceeding of any
nature involving the Borrower. 
 7.6 Books and Records. The Borrower shall maintain complete and
accurate books of account and records. The principal books of account and records shall be kept and maintained at 1886 Metro Center Drive, 4th Floor, Reston, VA 10190. The Borrower shall not remove such books of account and records without giving the Lender at
least thirty (30) days prior written notice. The Borrower, upon reasonable notice from the Lender, shall permit the Lender, or any officer, employee or agent designated by the Lender, to examine the books of account and records maintained by
the Borrower, and agree that the Lender or such officer, employee or agent may audit and verify the books and records. The Borrower shall reimburse the Lender for any reasonable expenses incurred by the Lender in connection with any such audits. All
accounting records and financial reports furnished to the Lender by the Borrower and the Guarantor pursuant to this Agreement shall be maintained and prepared in accordance with GAAP. 

7.7 Liens. The Borrower shall not create, incur, assume or permit to exist any mortgage, deed of trust, assignment, pledge, lien,
security interest, charge or encumbrance, including, without limitation, the right of a vendor or under a conditional sale contract or the lessor under a capitalized lease (collectively, (“Liens”) of any kind or nature in or upon any of
the asset of the Borrower except: 
  

	 	(a)	Liens created or deposits made that are incidental to the conduct of the business of the Borrower, that are not incurred in connection with any borrowing or the
obtaining of any credit and that do not and will not interfere with the use by the Borrower of any of its assets in the normal course of its business or materially impair the value of such assets for the purpose of such business; and


  

	 	(b)	Liens securing the Indebtedness. 


7.8 Debt. Except as provided above in Section 3.9, without the prior written consent of the Lender, the Borrower shall not
incur or permit to exist any debt for borrowed funds, the deferred purchase price of goods or services or capitalized lease obligations, except for (a) trade debt incurred in the ordinary course of business, and (b) the Indebtedness.

 7.9 Contingent Liabilities. Without the prior written consent of the Lender, neither the Borrower nor the Guarantor
shall guarantee, endorse, become contingently liable upon or assume the obligation of any person, or permit any such contingent liability to exist, except by the endorsement of negotiable instruments for deposit or collection or similar transactions
in the ordinary course of business. 

  
 20 









 7.10 Sale of Assets. Without the prior written consent of the Lender, the Borrower
shall not sell, lease, assign or otherwise dispose of any of its assets except for (a) sales in the ordinary course of business including sales of Lots and Units as approved by the Lender from time to time, (b) the disposition of assets
that are no longer needed or useful in its business, and (c) assets which have been removed and replaced. 
 7.11
Mergers and Acquisitions. Without the prior written consent of the Lender, the Borrower shall not merge or consolidate with, or acquire all or substantially all of the assets, stock, partnership interests or other ownership interests of, any
other person. 
 7.12 Loans and Advances. Without the prior written consent of the Lender, the Borrower shall not make
any loan or advance to any affiliate, director, member, manager, officer or employee of the Borrower, or any other person, except for the creation of accounts receivable in the ordinary course of business on terms that are no less favorable than
would apply in an arms-length transaction. 
 7.13 Subsidiaries and Joint Ventures. Without the prior written consent of
the Lender, the Borrower shall not form any subsidiary, become a general or limited partner in any partnership or become a party to a joint venture. If the Lender grants its consent to the formation or acquisition of a subsidiary Borrower, such
entity shall cause each subsidiary to perform and observe all of the covenants contained in this Agreement and the other Loan Documents. 
 7.14 Affiliates. Without the prior written consent of the Lender, the Borrower shall not engage in business with any of its affiliates except in the ordinary course of business and on terms that
are no less favorable to the Borrower than would apply in an arm’s length transaction. 
 7.15 Organization; Control and
Management; Transfers. Until such time as the Loans are fully repaid, there shall be no Transfer (hereinafter defined) of any interest in the Borrower, nor any change in the Control (hereinafter defined) or management of either the Borrower or
the Guarantor, nor any Transfer of the Property except for sales of Lots and Units in accordance with the terms of the Loan Documents, without the Lender’s prior written consent. “Transfer” means any assignment, pledge, conveyance,
sale, transfer, mortgage, encumbrance, grant of a security interest or other disposition, either directly or indirectly, in the aggregate of fifty percent (50%) or more of the beneficial ownership interests of an entity and the possession,
directly or indirectly, of the power to direct or cause the direction of the management and policies of an entity, whether through the ability to exercise voting power, by contract or otherwise. “Controlled by” and “controlling”
shall have the respective correlative meanings thereto. 
 SECTION EIGHT 

DEFAULT AND REMEDIES 
 8.1 Default. Each of the following shall constitute an “Event of Default” under this Agreement: 
 (a) Failure to Pay. If: (i) the Borrower shall fail to pay any monthly payment required under either of the Notes (“Monthly Payments”) when due thereunder or (ii) the Borrower
shall fail to pay any amount (other than the Monthly Payments) as an when due under any of the Loan Documents; 
 (b) Failure
to Give Notices. If the Borrower fails to give the Lender any notice required by Section 7.5 of this Agreement within thirty (30) days after it has actual knowledge of the event giving rise to the obligation to give such notice.


  
 21 









 (c) Failure to Permit Inspections. If the Borrower refuses to permit the Lender to
inspect its books and records in accordance with the provisions of Section 7.6 or failure to permit the Lender to inspect the Property upon reasonable advance notice. 
 (d) Failure to Observe Covenants. If the Borrower fails to perform or observe any term, covenant, warranty or agreement contained in this Agreement or in the other Loan Documents and such failure
shall continue for a period of thirty (30) days after written notice of such failure has been given to the Borrower by the Lender; provided, however, if such default is not in the payment of any sum due to the Lender hereunder, or was not the
subject of an Event of Default for which notice was previously provided, and provided the Borrower is diligently pursuing the cure of such default , then the Borrower shall have an additional sixty (60) days within which to cure such default
prior to the Lender exercising any right or remedy available hereunder, or at law or in equity. 
 (e) Defaults Under Loan
Documents. If an Event of Default shall occur under either of the Notes or any other Loan Document and shall not be cured within any applicable grace period. 
 (f) Breach of Representation. Discovery by the Lender that any representation or warranty made or deemed made by the Borrower in this Agreement or in any other Loan Document or in any statement or
representation made in any certificate, report or opinion delivered pursuant to this Agreement or other Loan Document or in connection with any borrowing under this Agreement by the Borrower or the Guarantor or any member, manager, officer, agent,
employee or director of the Borrower or the Guarantor, was materially untrue when made or deemed to be made. 
 (g) Voluntary
Bankruptcy. If the Borrower or the Guarantor makes an assignment for the benefit of creditors, files a petition in bankruptcy, petitions or applies to any tribunal for any receiver or any trustee of the Borrower or the Guarantor or any
substantial part of the property of the Borrower or the Guarantor, or commences any proceeding relating to the Borrower or the Guarantor under any reorganization, arrangement, composition, readjustment, liquidation or dissolution law or statute of
any jurisdiction, whether in effect now or after this Agreement is executed. 
 (h) Involuntary Bankruptcy. If, within
sixty (60) days after the filing of a bankruptcy petition or the commencement of any proceeding against the Borrower or the Guarantor seeking any reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar relief
under any present or future statue, law or regulation, the proceeding shall not have been dismissed, or, if within sixty (60) days, after the appointment, without the consent or acquiescence of the Borrower or the Guarantor, of any trustee,
receiver or liquidator of any Borrower or all or any substantial part of the properties of the Borrower o the Guarantor, the appointment shall not have been vacated. 
 (i) Cross Default. If, as a result of default, any present or future obligations of the Borrower or the Guarantor or any affiliate of the Borrower or the Guarantor to the Lender or any other
creditor, whether due to acceleration provisions or otherwise therein, are declared to be due and payable prior to the expressed maturity of such obligations. 
 (j) Material Adverse Change. A material adverse change occurs in the financial or business condition of the Borrower or the Guarantor. 

(k) Judgment. If a judgment, attachment, garnishment or other process is entered against the Borrower and is not vacated or bonded
within sixty (60) days after entry (or such shorter period of time as necessary in order to avoid attachment or foreclosure), or if a judgment, attachment, garnishment or other process is entered


  
 22 









 
against the Guarantor that would materially affect the Guarantor’s ability to perform its obligations under the Loan Documents, and such judgment, attachment, garnishment or other process is
not vacated or bonded with in sixty (60) day after entry (or such shorter period of time as necessary in order to avoid attachment or foreclosure). 
 (l) Dissolution. The dissolution, liquidation or termination of existence of the Borrower or the Guarantor unless a substitute guarantor, satisfactory to the Lender in its sole and absolute
discretion, assumes all liability under the Guaranty and Environmental Indemnity and executes any documents which the Lender may reasonably require to implement such substitution, within sixty (60) days after event of dissolution, liquidation
or termination of existence. 
 (m) Change in Management/Control. A change in the management of or controlling interest
in the Borrower or the Guarantor without the prior written consent of the Lender. 
 8.2 Remedies. Upon the occurrence of
an Event of Default (a) the Lender, at its option, by written notice to the Borrower, may declare all Indebtedness to the Lender to be immediately due and payable, whether such Indebtedness was incurred prior to, contemporaneous with or
subsequent to the date of this Agreement and whether represented in writing or otherwise, without presentment, demand, protest or further notice of any kind, and (b) the Lender may exercise all rights and remedies available to it under the Loan
Documents and applicable law. The Borrower agrees to pay all costs and expenses incurred by the Lender in enforcing any obligation under this Agreement or the other Loan Documents, including, without limitation, attorneys’ fees. No failure or
delay by the Lender in exercising any power or right will operate as a waiver of such power or right, nor will any single or partial exercise of any power or right preclude any other future exercise of such power or right, or the exercise of any
other power or right. 
 8.3 Borrower to Pay Fees and Charges. The Borrower shall pay all fees and charges incurred in
the procuring, making and enforcement of the Loans, including without limitation the reasonable fees and disbursements of Lender’s attorneys, charges for appraisals, the fee of Lender’s inspector and construction consultant, fees and
expenses relating to examination of title, title insurance premiums, surveys, and mortgage recording, documentary, transfer or other similar taxes and revenue stamps, loan extension fees, if any, and the Lender’s fees for the Loans. 

SECTION NINE 

GENERAL PROVISIONS 
 9.1 Defined Terms. Each accounting term used in this Agreement, not otherwise defined, shall have the meaning given to it under GAAP applied on a consistent basis. The term “person” shall
mean any individual partnership, corporation, trust, joint venture, unincorporated association, governmental subdivision or agency or any entity of any nature. The term “subsidiary” means, with respect to any person, a corporation or other
person of which shares of stock or other ownership interest having ordinary voting power to elect a majority of the board of directors or other managers of such corporation or person are at the time owned, or the management of which it otherwise
controlled, directly or indirectly, through one or more intermediaries, by such person. The term “affiliate” means, with respect to any specified person, any other person that, directly or indirectly, controls or is controlled by, or is
under common control with, such specified person. All meanings assigned to defined terms in this Agreement shall be applicable to the singular and plural forms of the terms defined. 

9.2 Notices. All notices, requests, demands and other communication with respect hereto shall be in writing and shall be delivered
by hand, prepaid by Federal Express (or a comparable overnight delivery service), or sent by the United States first-class mail, certified, postage prepaid, return receipt requested, to the parties at their respective addresses set forth as follows:

 If to the Lender, to: 
 EAGLEBANK 
 7815 Woodmont Avenue 

Bethesda, MD 20814 
 Attn: Douglas Vigen, Senior Vice President 

  
 23 









 With a copy to: 
 Friedlander Misler, PLLC 
 5335 Wisconsin Avenue, N.W., Suite 600 

Washington, D.C. 20015 
 Attn: David Astrove, Esq. 
 If to the Borrower, to: 

New Hampshire Ave. Ventures, LLC 
 c/o Comstock Holding Companies, Inc. 
 1886 Metro Center
Drive, 4th Floor 

Reston, VA 20190 

Attn: Christopher Clemente 
 With a copy to: 
 New Hampshire Ave. Ventures, LLC 

c/o Comstock Holding Companies, Inc. 
 1886 Metro Center Drive, 4th Floor 
 Reston, VA 20190 

Attn: Jubal Thompson, Esq. 
 Any notice, request, demand or other communication delivered or sent in the manner aforesaid shall be deemed given or made (as the case may be) upon the earliest of (a) the date it is actually
received, (b) on the business day after the day on which it is delivered by hand, (c) on the business day after the day on which it is properly delivered by Federal Express (or a comparable overnight delivery service), or (d) on the
third (3rd) business day after the day on which it is
deposited in the United States mail. Any party may change such party’s address by notifying the other parties of the new address in any manner permitted by this Section. 
 9.3 Successors and Assigns. This Agreement will be binding upon and inure to the benefit of the Lender and the Borrower and their respective successors, assigns, personal representatives, executors
and administrators, provided that the Borrower may not assign or transfer its rights under this Agreement. 
 9.4 Entire
Agreement. Except for the other Loan Documents expressly referred to in this Agreement, this Agreement represents the entire agreement between the Lender and the Borrower, supersedes all prior commitments and may be modified only by an agreement
in writing. 
 9.5 Survival. All agreements, covenants, representations and warranties made in this Agreement and all
other provisions of this Agreement will survive the delivery of this Agreement and the other Loan Documents and the making of the advances under this Agreement and will remain in full force and effect until the obligations of the Borrower under this
Agreement and the other Loan Documents are indefeasibly satisfied. 
 9.6 Governing Law. This Agreement will be governed
by and construed in accordance with the laws of the State of Maryland, without reference to conflict of laws principles. 
 9.7
Headings. Section headings are for convenience of reference only and shall not affect the interpretation of this Agreement. 

  
 24 









 9.8 Participations. The Lender shall have the right to sell all or any part of its
rights under the Loan Documents, and the Borrower authorizes the Lender to disclose to any prospective participant in the Loan any and all financial and other information in the Lender’s possession concerning the Borrower or the collateral for
the Loans. 
 9.9 No Third Party Beneficiary. The parties do not intend the benefits of this Agreement or any other Loan
Document to inure to any third party. 
 9.10 Waiver of Jury Trial. TO THE FULLEST EXTENT PERMITTED BY LAW, THE LENDER
AND THE BORROWER KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE ANY RIGHTS THEY MAY HAVE TO A TRIAL BY JURY BASED ON, ARISING OUT OF OR UNDER, OR IN CONNECTION WITH THIS AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS. 

9.11 Waiver. The rights of the Lender under this Agreement and the other Loan Documents shall be in addition to all other rights
provided by law. No waiver of any provision of this Agreement, or any other Loan Document, shall be effective unless in writing, and no waiver shall extend beyond the particular purpose involved. No waiver in any one case shall require the Lender to
give any subsequent waivers. 
 9.12 Severability. If any provision of this Agreement or any other Loan Document is held
to be void, invalid, illegal or unenforceable in any respect, such provision shall be fully severable and this Agreement or the applicable Loan Document shall be construed as if the void, invalid, illegal or unenforceable provision were not included
in this Agreement or in such Loan Document. 
 9.13 No Setoffs. With respect to a monetary default claimed by the Lender
under the Loan Documents, no setoff, claim, counterclaim, reduction or diminution of any obligation or defense of any kind or nature that the Borrower has or may have against the Lender (other than the defenses of payment, the Lender’s gross
negligence or willful misconduct) shall be available against the Lender in any action, suit or proceeding brought by the Lender to enforce this Agreement or any other Loan Document. The foregoing shall not be construed as a waiver by the Borrower of
any such rights or claims against the Lender, but any recovery upon any such rights or claims shall be had from the Lender separately, it being the intent of this Agreement and the other Loan Documents that the Borrower shall be obligated to pay,
absolutely and unconditionally, all amounts due under this Agreement and the other Loan Documents. 
 9.14 No Merger. The
Borrower and the Lender expressly agree that the Borrower’s agreement and obligation to pay the Lender’s reasonable attorneys’ fees and costs, and all other litigation expenses, shall not be merged into any judgment obtained by the
Lender, but shall survive the same and shall not be extinguished by any monetary judgment. It is the express intent of the parties hereto that all post-judgment collection fees and expenses (including reasonable attorneys’ fees and costs) shall
survive entry of a final judgment and shall be collectible by the Lender against the Borrower from time to time following entry of any final judgment obtained by the Lender against the Borrower. 

9.15. Counterparts. This Agreement may be executed for the convenience of the parties in several counterparts, which are in all
respects similar and each of which is to be deemed to be complete in and of itself, and any one of which may be introduced in evidence or used for any other purpose with the production of the other counterparts thereof. 

9.16 Consent to Jurisdiction. The Borrower irrevocably submits to jurisdiction of any state or federal court sitting in the
Commonwealth of Virginia or the State of Maryland over any suit, action or proceeding arising out of or relating to this Agreement, the Notes or any other Loan Documents. The undersigned irrevocably waives, to the fullest extent permitted by law,
any objection that the undersigned may now or hereafter have to the venue of any such suit, action or proceeding brought in any such court and any claim that any such suit, action or proceeding brought in any such court has been brought in an
inconvenient forum. Final judgment in any such court shall be conclusive and binding and may be enforced in any court in which the undersigned is subject to jurisdiction by a suit upon such judgment provided that service of process is effected as
provided herein or as otherwise permitted by applicable law. 

  
 25 









 9.17 Service of Process. The Borrower hereby consents to process being served in any
suit, action or proceeding instituted in the Commonwealth of Virginia or the State of Maryland in connection with the Loans by (i) the mailing of a copy thereof by certified mail, postage prepaid, return receipt requested, to the Borrower at
the address set forth in the Notices section of this Agreement and (ii) serving a copy thereof upon the Borrower’s registered agent for service of process. The undersigned irrevocably agrees that such service shall be deemed to be service
of process upon the undersigned in any such suit, action or proceeding. Nothing in this Agreement shall affect the right of the Lender otherwise to bring proceedings against the undersigned in the courts of any jurisdiction or jurisdictions.

 9.18 Exhibits. All exhibits referred to herein as attached hereto are incorporated in full by reference as though
fully set forth in this Agreement. The Exhibits are: 
  

			
	Exhibit A:	  	Legal Description of the Property
	Exhibit A-1:	  	Phasing
	Exhibit B:	  	Unit Costs Budget
	Exhibit C:	  	Carve Out Obligations
	Exhibit D:	  	Reserved

 [SIGNATURES ON FOLLOWING PAGES] 

  
 26 









 IN WITNESS WHEREOF, the Borrower and the Lender have caused this Agreement to be executed in
their respective names by duly authorized representatives as of the day and year first above written. The Guarantor joins herein to consent and agree to the terms, conditions, provisions and covenants of those sections of this Agreement that address
a covenant or obligation of the Guarantor. 
  

													
	WITNESS:	 		 	BORROWER:
				
		 		 		 	NEW HAMPSHIRE AVE. VENTURES, LLC, a Virginia limited liability company
					
		 		 		 	By:	 	COMSTOCK VENTURES XVI, L.C., a Virginia limited liability company
						
		 		 		 		 	By:	 	Comstock Holding Companies, Inc., a Delaware corporation, Its Manager
	  
	 		 		 		 		 	
	Print Name:	 	  
	 		 		 		 		 	
		 		 		 		 		 	By:	 	  

		 		 		 		 		 		 	Christopher D. Clemente
		 		 		 		 		 		 	Chief Executive Officer

 [SEAL] 

COMMONWEALTH OF VIRGINIA 
 COUNTY OF
                    , ss: 

I,                     , a Notary
Public in and for the aforesaid jurisdiction, do hereby certify that Christopher D. Clemente personally appeared before me in said jurisdiction and acknowledged that he is the Chief Executive Officer of Comstock Holding Companies, Inc., which is the
Manager of Comstock Ventures XVI, L.C., a Virginia limited liability company, which is the Manager of New Hampshire Ave. Ventures, LLC, a Virginia limited liability company, party to the foregoing instrument, and that the same is his act and deed
and the act and deed of said New Hampshire Ave. Ventures, LLC. 
 IN WITNESS WHEREOF, I have set my hand and Notarial Seal, this
     day of             , 2012. 
  

									
		 		 		 	  

		 		 		 	Notary Public
				
	[SEAL]	 		 		 	My Commission expires:                     .
				
		 		 		 	Notary Registration No.
                      .
				
		 		 		 	GUARANTOR:
	Witness:	 		 		 	
		 		 		 	COMSTOCK HOLDING COMPANIES, INC., a Delaware corporation
				
	  
	 		 		 	
	Print Name:	 		 		 		 	
		 		 		 	By:	 	  

		 		 		 		 	Christopher D. Clemente
		 		 		 		 	Chief Executive Officer


  
 27 









 COMMONWEALTH OF VIRGINIA 
 COUNTY OF                     , ss: 

I,                     , a Notary
Public in and for the aforesaid jurisdiction, do hereby certify that Christopher D. Clemente personally appeared before me in said jurisdiction and acknowledged that he is the Chief Executive Officer of Comstock Holding Companies, Inc., a Delaware
corporation, party to the foregoing instrument, and that the same is his act and deed and the act and deed of said Comstock Holding Companies, Inc.. 
 IN WITNESS WHEREOF, I have set my hand and Notarial Seal, this      day of             , 2012. 

 

					
		 		 	  

		 		 	Notary Public
			
	[SEAL]	 		 	My Commission expires:                     .
			
		 		 	Notary Registration No.                       .


  
 28 










							
		 		 	LENDER:
	Witness:	 		 		 	
		 		 	EAGLEBANK
			
	  
	 		 	
	Print Name:	 		 		 	
		 		 	By:	 	  

		 		 		 	Douglas Vigen
		 		 		 	Senior Vice President

 [SEAL] 

COMMONWEALTH OF VIRGINIA 
 COUNTY OF
                    , ss: 

I,                     , a Notary
Public in and for the aforesaid jurisdiction, do hereby certify that Douglas Vigen personally appeared before me in said jurisdiction and acknowledged that he a Senior Vice President of EAGLEBANK; that he has been duly authorized to execute and
deliver the foregoing instrument for the purposes therein contained and that the same is his act and deed; that the seal affixed to said instrument is such corporate seal and that it was so affixed by order of the Board of Directors of said Bank;
and that he signed his name thereon by like order. 
 IN WITNESS WHEREOF, I have set my hand and Notarial Seal, this
     day of             , 2012. 
  

					
		 		 	  

		 		 	Notary Public
			
	[SEAL]	 		 	My Commission expires:                     .
			
		 		 	Notary Registration No.                       .


  
 29 









 EXHIBIT A 
 Legal Description of the Property 
 Tract 1: 

Lots 42-67 in Square 3719 as shown on Plat of Subdivision recorded among the records of the District of Columbia Office of the Surveyor in Subdivision
Book 206 at Page 117. 
 Lot OF-40 in Square 3719 as shown on Plat of Subdivision recorded among the records of the District of Columbia Office
of the Surveyor in Subdivision Book 206 at page 117, also known as Lots 860 thru 870, Lots 872 thru 889 and Lot 891 in Square 3719, (previously known as Lot 40, Square 3719) as shown on Assessment and Taxation Plat 3855-T, among the records of the
District of Columbia Office of the Surveyor. 
 Together with those certain easements which benefit the above property as set forth the Easement
and Maintenance Agreement recorded as Instrument No. 2012028660. 
 Together with those easements which benefit the above property as set
forth in the Temporary Grading & Construction Easement Agreement recorded as Instrument No. 2012028661. 
 Note: Said property
being known for assessment and taxation purposes as Square 3719, Lots 859-891 
 Tract 2: 

Parts of Lots One (1) and Two (2) on a plat of survey of a subdivision of a tract of land know as part of the original tract of “CHILLUM
CASTLE MANOR”, made by B.F. Martin from plat of survey by George MacCloud, the same being part of the farm of the late Henry Martin, described in proceedings in District Court Case No. 2944 in the District Court of the United States for
the District of Columbia as follows: 
 Beginning with the Southwesterly line of Chillum Place at its intersection with Peabody Street along
said Chillum Place, North 36 degrees 52’ 40” West 74.70 feet, thence leaving said Chillum Place and running South 34 degrees 34’ West 72 feet more or less, to the intersection of Peabody Street; thence along the Westerly side of
Peabody Street in a Southern direction 86 feet more or less to its intersection with Chillum Place being the point of beginning of said Parcel (formerly know as Part of Parcel 126/11) 
 Note: Said property being now known for assessment and taxation purposes as parcel 126/24. 
 Tract
3: 
 Lots 128, 129 and 130, Square 3714, as show on Plat of Subdivision recorded among the records of the District of Columbia Office of the
Surveyor in Subdivision Book 206 at Page 126. 
 Note: Said property being known for assessment and taxation purposes as Square 3714, Lots 125,
126 and 127 

  
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 EXHIBIT A-1 
 Site Plan marked to show Phases 
 [attached] 

  
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 EXHIBIT B 
 UNIT COSTS BUDGET 
 [to be attached prior to first advance of Construction Loan]


  
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 EXHIBIT C 
 CARVE OUT OBLIGATIONS 
 The Guarantor shall also guaranty the full and timely payment of any and
all actual loss, damage, cost, expense, liability, claim or other obligation incurred by the Lender (including reasonable attorneys’ fees and out-of-pocket costs actually incurred) arising out of or in connection with any one or more of the
following (the “Carve Out Obligations”): 
 (i) Fraud, material misrepresentation or willful misconduct by Borrower or
Guarantor or any of their respective members, managers, officers, principals, or any other person properly authorized to make statements or representations, or act, on behalf of Borrower or Guarantor in connection with the Loans or the Property;

 (ii) physical waste committed on the Property; damage to the Property as a result of the intentional misconduct, recklessness
or gross negligence of Borrower or Guarantor, or any agent or employee of any such persons; or the removal of any portion of the Property by or at the direction of Borrower or Guarantor or any direct or indirect member or manager thereof, in
violation of the terms of the Loan Documents (as defined in the Loan Agreement) following a default under either of the Loans which is not cured within any applicable grace or cure period (an “Event of Default”); 

(iii) subject to any right to contest or bond off such matters, as provided in the Deed of Trust or Loan Agreement, failure to pay any
valid taxes, assessments, mechanics’ liens, materialmen’s liens or other liens which could create liens on any portion of the Property which would be superior to the lien or security title of the Deed of Trust or the other Loan Documents,
to the full extent of the amount claimed by any such lien claimant; 
 (iv) the breach of any representation, warranty or
covenant in, and any liability under any provision in, that certain Environmental Indemnity Agreement of even date herewith given by Borrower and Guarantor to Lender or the breach of any representation, warranty or covenant relating solely to, and
any liability under any provision concerning, environmental laws, hazardous substances or asbestos in the Deed of Trust; 
 (v)
the misapplication or conversion of (A) any insurance proceeds paid to Borrower by reason of any loss, damage or destruction to the Property, (B) any awards or other amounts received by Borrower in connection with the condemnation of all
or a portion of the Property, or (C) any rents from the Property following an Event of Default or collected in advance; and 
 (vi) failure to maintain any insurance policies required under the Loan Documents, or timely to pay or provide the amount of any insurance deductible, to the extent of the applicable deductible, following
a casualty or other insured event. 

  
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