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EXHIBIT 10.38
EXECUTION COPY
 STOCK PURCHASE AGREEMENT
 DATED AS OF JANUARY 19, 2006
 BY AND AMONG
 COMSTOCK HOMEBUILDING COMPANIES, INC.
 PARKER-CHANDLER HOMES, INC.,
 AND
 EACH OF THE SELLING SHAREHOLDERS IDENTIFIED HEREIN




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TABLE OF CONTENTS
 PageArticle I DEFINITIONS
    
    
    11.1
    
    
    Definitions
    
    
    11.2
    
    
    Other Defined Terms
    
    
    71.3
    
    
    Accounting Principles
    
    
    71.4
    
    
    Construction
    
    
    7Article II PURCHASE AND SALE OF SHARES
    
    
    82.1
    
    
    The Acquisition
    
    
    82.2
    
    
    Purchase Price and Other Payments
    
    
    8Article III REPRESENTATIONS AND WARRANTIES
    
    
    83.1
    
    
    General Statement
    
    
    83.2
    
    
    Representations and Warranties of Purchaser
    
    
    93.3
    
    
    Representations and Warranties of the Company and Sellers
    
    
    93.4
    
    
    Representations and Warranties of the Sellers
    
    
    24Article IV [INTENTIONALLY OMITTED.]
    
    
    25Article V [INTENTIONALLY OMITTED.]
    
    
    26Article VI CLOSING
    
    
    266.1
    
    
    Closing Documents
    
    
    266.2
    
    
    Purchasers Deliveries
    
    
    266.3
    
    
    Companys and Sellers Deliveries
    
    
    26Article VII POST-CLOSING AGREEMENTS
    
    
    287.1
    
    
    Post-Closing Agreements
    
    
    287.2
    
    
    Inspection of Records
    
    
    287.3
    
    
    Use of Trademarks
    
    
    287.4
    
    
    Payments of Accounts Receivable
    
    
    287.5
    
    
    Third Party Claims
    
    
    287.6
    
    
    Further Assurances
    
    
    287.7
    
    
    Companys Release
    
    
    29Article VIII OTHER AGREEMENTS
    
    
    298.1
    
    
    Confidentiality
    
    
    298.2
    
    
    Publicity
    
    
    298.3
    
    
    Certain Tax Matters
    
    
    298.4
    
    
    Employee Matters
    
    
    308.5
    
    
    Personal Guarantees
    
    
    308.6
    
    
    Sellers Representatives
    
    
    30Article IX INDEMNIFICATION
    
    
    31
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Page9.1
    
    
    The Companys and Sellers Indemnification Obligations
    
    
    319.2
    
    
    Purchasers Indemnification Obligations
    
    
    329.3
    
    
    Cooperation
    
    
    339.4
    
    
    Third Party Claims
    
    
    339.5
    
    
    Assertion of Claims
    
    
    349.6
    
    
    Survival of Representations and Warranties
    
    
    349.7
    
    
    Limitation on Indemnification of the Company, the Sellers and Purchaser
    
    
    349.8
    
    
    Corporate Indemnification of Officers and Directors
    
    
    369.9
    
    
    Set-Off
    
    
    36Article X [INTENTIONALLY OMITTED]
    
    
    36Article XI MISCELLANEOUS
    
    
    3611.1
    
    
    Notices
    
    
    3611.2
    
    
    Expenses; Transfer Taxes
    
    
    3711.3
    
    
    Entire Agreement
    
    
    3711.4
    
    
    Non-Waiver
    
    
    3811.5
    
    
    Counterparts
    
    
    3811.6
    
    
    Severability
    
    
    3811.7
    
    
    Applicable Law; Binding Arbitration
    
    
    3811.8
    
    
    Binding Effect; Benefit
    
    
    3811.9
    
    
    Assignability
    
    
    3911.10
    
    
    Rule of Construction
    
    
    3911.11
    
    
    Amendments
    
    
    3911.12
    
    
    Headings
    
    
    39
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Schedule 2.2.1(a)
    
    Percentage AllocationSchedule 2.2.1(b)
    
    Assumed Institutional DebtSchedule 2.2.1(c)
    
    Assumed Shareholder DebtSchedule 3.3.5
    
    ConsentsSchedule 3.3.7
    
    Conflicts under ContractsSchedule 3.3.8
    
    Subsidiaries and AffiliatesSchedule 3.3.9
    
    Directors and OfficersSchedule 3.3.11
    
    Capitalization/Ownership of SharesSchedule 3.3.12
    
    Financial StatementsSchedule 3.3.16
    
    AssetsSchedule 3.3.18
    
    InsuranceSchedule 3.3.19
    
    Bank AccountsSchedule 3.3.20
    
    TaxesSchedule 3.3.21
    
    ContractsSchedule 3.3.23
    
    SuppliersSchedule 3.3.24
    
    Related Party TransactionsSchedule 3.3.25
    
    Permits/Operations Outside GeorgiaSchedule 3.3.26
    
    Benefit PlansSchedule 3.3.27
    
    Employee RelationsSchedule 3.3.28
    
    Litigation and ClaimsSchedule 3.3.29
    
    Decrees, Orders and Arbitration AwardsSchedule 3.3.31
    
    Environmental MattersSchedule 3.3.32(a)
    
    Real PropertySchedule 3.3.32(e)
    
    Leased Real EstateSchedule 3.3.33
    
    Intellectual PropertySchedule 3.3.34
    
    Product LiabilitySchedule 8.5
    
    Personal Guarantees
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Exhibit A
    
    -
    
    Form of Employment AgreementExhibit B
    
    -
    
    Form of Noncompetition AgreementExhibit C
    
    -
    
    Form of Escrow AgreementExhibit D
    
    -
    
    Form of Seller ReleaseExhibit E
    
    -
    
    Form of Company ReleaseExhibit F
    
    -
    
    Form of Legal Opinion
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STOCK PURCHASE AGREEMENT
 Agreement Purchaser Company Shares Common Stock Seller Sellers
      
 Definitions
 Accounts Receivable
 Affiliate
 Agreement




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Appurtenances
 Benefit Plan
 Business Day
 CERCLA
 Claims
 Closing
 Closing Date
 Code
 Common Stock
 Company
 Company Accountants
 Contract
 Control
 Controlling Sellers
 Damages
 - 2 -




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Disclosure Schedule
 Employment Agreement Exhibit A
 Environmental Claim
 Environmental Laws
 Environmental Permits
 ERISA
 Financial Statements
 Fully Developed and Buildable Land
 - 3 -




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GAAP
 Governmental or Regulatory Authority
 Ground Lease Property
 Hazardous Substances
 Improvements
 Indebtedness
 Indemnified Party
 Indemnifying Party
 Intellectual Property
 Intellectual Property Licenses
 - 4 -




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Interim Financial Statement Date
 Interim Financial Statements
 IRS
 Knowledge of the Company
 Law
 Leased Real Estate
 Liabilities
 Material Adverse Effect
 Noncompetition Agreement Exhibit B
 Participating Sellers
 Permits
 Permitted Liens
 - 5 -




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Person
 Proprietary Software
 Purchaser
 Purchaser Indemnitees
 Real Property
 Related Parties
 Release
 Returns
 Seller
 Seller Indemnitees
 Sellers Representatives
 - 6 -




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Shares
 Software
 Subsidiaries
 Tax Taxes
 Third Party Claim
 Unaudited Financial Statements
 Undeveloped Land
 Other Defined Terms
 Accounting Principles
 Construction
 - 7 -




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The Acquisition
 Purchase Price and Other Payments
 Purchase Price
 Closing Payment Percentage Interest
 Assumed Institutional Debt
 Assumed Shareholder Debt
 Escrow Amount Escrow Agent Exhibit C Escrow Agreement
 
 General Statement
 - 8 -




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Representations and Warranties of Purchaser
 Organization, Existence and Good Standing
 Power and Authority
 Enforceability
 Consents
 Conflicts Under Constituent Documents or Laws
 Brokers
 Representations and Warranties of the Company and Sellers
 - 9 -




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Organization, Existence and Good Standing
 Foreign Good Standing
 Power and Authority
 Enforceability
 Consents
 Conflicts Under Constituent Documents or Laws
 - 10 -




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Conflicts Under Contracts
 Subsidiaries and Affiliates
 Directors and Officers
 Constituent Documents; Books and Records
 Capitalization
 - 11 -




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Financial Statements
 Conduct of Business
 - 12 -




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Liabilities
 Adequate Cash
 Assets
 - 13 -




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Accounts Receivable
 Insurance
 - 14 -




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Bank Accounts
 Taxes
         - 15 -




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Contracts
 - 16 -




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Material Adverse Effect
 Suppliers
 Related Parties Transactions
 Permits
 - 17 -




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Employee Benefit Plans
      Employee Relations
   - 18 -




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Litigation and Claims
 - 19 -




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Decrees, Orders or Arbitration Awards
 Compliance with Laws
 Environmental Matters
 Real Property
  - 20 -




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- 21 -




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Intellectual Property
 Company Intellectual Property
 - 22 -




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Product Liability
 - 23 -




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Commercial Bribery
 No Omissions
 Brokers
 Representations and Warranties of the Sellers
 Power and Authority
 Enforceability
 - 24 -




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Consents
 Conflicts With Laws
 Conflicts Under Contracts
 Title to Shares
 
 
 
 Closing Documents
 - 25 -




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Purchasers Deliveries
      Companys and Sellers Deliveries
      - 26 -




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Exhibit D
        - 27 -




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Exhibit F
  
 Post-Closing Agreements
 Inspection of Records
 Use of Trademarks
 Payments of Accounts Receivable
 Third Party Claims
 Further Assurances
 Companys Release Exhibit E
 - 28 -




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Confidentiality provided however
 Publicity
 Certain Tax Matters
  Tax Proceedings
 - 29 -




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Employee Matters
 Personal Guarantees
 Sellers Representatives
  - 30 -




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The Companys and Sellers Indemnification Obligations
  - 31 -




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Purchasers Indemnification Obligations
    - 32 -




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Cooperation
 Third Party Claims provided however
    - 33 -




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Assertion of Claims
 Survival of Representations and Warranties Survival Date
 Limitation on Indemnification of the Company, the Sellers and Purchasers
 - 34 -




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Deductible Unlimited Claims Liability Caps provided however
   - 35 -




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Corporate Indemnification of Officers and Directors provided however
 Set-Off
   
 
 Notices
  
 - 36 -




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Expenses; Transfer Taxes
 Entire Agreement
 - 37 -




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Non-Waiver
 Counterparts
 Severability
 Applicable Law; Binding Arbitration
 Binding Effect; Benefit
 - 38 -




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Assignability
 Rule of Construction
 Amendments
 Headings
 - 39 -




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PURCHASER:COMSTOCK HOMEBUILDING COMPANIES, INC.By:Name:Title:THE COMPANY:PARKER-CHANDLER HOMES, INC.By:Name:Title:
 [SIGNATURES CONTINUED ON FOLLOWING PAGE]
 - 40 -




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CONTROLLING SELLERS:JAMES B. PARKER, JR.ANDREW H. CHANDLER, JR.PARTICIPATING SELLERS:SUNDERRAJ M. KAMALESONROBERT A. FORSTERRICHARD DOBKINEUGENE E. PEARSONJOHN D. PEARSONDONALD SCHROELUCKEJAMES SHIRAH




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Form of Employment Agreement




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Form of Noncompetition Agreement




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Form of Escrow Agreement




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Form of Seller Release




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Form of Company Release




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Form of Legal Opinion