Document:

EX-10.1

 Exhibit 10.1 

 
 

 

 CEO MESSAGE 
 Code of Ethics Key to Success 
 Dear Employee-owner, 

Alion Science and Technology Corporation (“Alion” or the “Company”) has published this 2012 Code of ethics, Conduct, and
Responsibility (the “Code”) to incorporate new laws and regulations and to make other general administrative amendments. The Code was prepared at the request of the Corporate Governance and Compliance Committee (the “Committee”)
of the Board of Directors and approved by the entire Board. 
 Alion is committed to the personal success and professional growth of its people,
the success of its projects, and the long-term success of the Company. 
 At the root of Alion’s commitment to success are the fundamental
principles that legal requirements must be satisfied, financial statements must be complete and accurate, and customers and other stakeholders must be treated fairly. 
 The Alion Code not only requires compliance with laws and regulations, but embodies a commitment to positive behavior that builds honesty, promotes fairness, and demonstrates integrity. This leads to
Alion’s success by producing customer satisfaction, loyalty, trust, and respect. We honor our commitments, communicate openly, and hold ourselves accountable. Operating within the framework of the Code, Alion creates and sustains value for its
stakeholders. 
 To measure compliance with the Code, the Board of Directors and the Committee require all employees, officers, directors and
consultants to complete the attached Certification upon joining the Company and then again each year. In addition, any violation or apparent violation of the Code should be reported immediately without waiting for the next Certification form.

 If you have reason to believe there is any inappropriate conduct of any kind at Alion, please report it to the independent, third party
Ethics Hotline at 877-439-9227 or any of the other ethics points of contact set forth in this Code under Reporting Mechanisms on page 4. 
 I
want to thank you for your commitment to ethics. Your cooperation is essential to our success. 
 Sincerely, 

 
 

 
 Bahman Atefi 

Chairman and CEO 

 TABLE OF CONTENTS 
 Contents 
  

					
		
	 Changes in the 2012 Code
	  	 	1	  
		
	 Vision, Mission and Values
	  	 	1	  
		
	 Quick Reference – The Code in a Nutshell
	  	 	2	  
		
	 Statement of Purpose
	  	 	3	  
		
	 Policies and Procedures
	  	 	3	  
		
	 Violations and Reporting Misconduct
	  	 	3	  
		
	 Reporting Mechanisms
	  	 	4	  
		
	 Responsibilities
	  	 	4	  
		
	 Compliance with Laws and Regulations
	  	 	5	  
		
	 Marketing and Procurement Integrity
	  	 	5	  
		
	 Government Proprietary and Source Selection Information
	  	 	6	  
		
	 Recruitment and Employment of Current and Former U.S. Government Employees
	  	 	6	  
		
	 Gratuities, Bribes and Kickbacks
	  	 	6	  
		
	 Doing Business Overseas
	  	 	7	  
		
	 Organizational Conflicts of Interest
	  	 	8	  
		
	 False Claims
	  	 	9	  
		
	 Labor Charging
	  	 	9	  
		
	 Government and Company Investigations
	  	 	9	  
		
	 Protecting Shareholder Value and Compliance with Securities Laws
	  	 	10	  
		
	 Protecting Confidential and/or Proprietary Information and Intellectual Property
	  	 	11	  
		
	 Security of U.S. Government Classified and Other Sensitive Information
	  	 	11	  
		
	 Records Retention and Destruction
	  	 	12	  
		
	 Conflicts of Interest
	  	 	12	  
		
	 Political Activities
	  	 	12	  
		
	 Discrimination and Harassment, Including Sexual Harassment
	  	 	12	  
		
	 Technology in the Workplace
	  	 	13	  
		
	 Key Dos and Don’ts
	  	 	14	  
		
	 Closing Thoughts
	  	 	14	  
		
	 Supplement to Alion Code of Ethics, Conduct, and Responsibility: Code of Ethics for Finance Employees
	  	 	15	  
		
	 Certification
	  	 	17	  

 CHANGES IN THE 2012 CODE 
 The following are the principal changes in the 2012 Code: 
 Quick Reference Section

 The Gratuities, Bribes and Kickbacks quick reference was re-written. 
 Government Proprietary and Source Selection Information 
 A paragraph was added to the end
of this section. 
 Gratuities, Bribes and Kickbacks 
 This section has been re-written. 
 Doing Business Overseas 

A paragraph on foreign travel was added to the end of this section.

 VISION, MISSION AND VALUES 
 Vision 
 Our vision is to be a premier, total technology solutions provider for the global
marketplace. 
 Mission 
 Alion
fosters a dynamic employee-ownership culture that encourages the innovative application of science, engineering and operational experience to support the successful resolution of nationally and globally significant problems. 

Values 
 The Alion core values by which
we navigate are: 
  

	 	•	Integrity of work, people and results 

  

	 	•	Fairness to our employees, suppliers, consultants and customers 

  

	 	•	Honesty 

  

	 	•	Commitment to the personal success and professional growth of our people, the success of our projects and the long-term success of Alion 

 

	 	•	Respect for our co-workers, customers, partners and competitors 

  

	 	•	Highest quality of effort and work product 

 Our
employee-ownership culture is the cornerstone of Alion. Employees who act like owners contribute significantly to our success. Ownership builds employee satisfaction, commitment and retention and these attributes are directly linked to customer
satisfaction. 

 

  
 Alion Code
of Ethics, Conduct and Responsibility 1 

 QUICK REFERENCE – THE CODE IN A NUTSHELL 

Violations and Reporting Misconduct: Employees are obligated to report immediately any violation or apparent violation of the Code, or of
Alion policies or procedures, or violations of law or regulation. Call the Ethics Hotline at 877-439-9227. 
 Compliance with Laws and
Regulations: No employee may take any action on behalf of Alion that the employee knows, or reasonably should know, would violate any law or regulation. 
 Marketing and Procurement Integrity: Employees must always deal honestly and fairly with all government customers, as well as with other contractors, teaming partners, subcontractors,
suppliers, and consultants supporting Alion’s government business. 
 Government Proprietary and Source Selection Information:
Employees must not obtain, or try to obtain, directly or indirectly, from any government employee or other third parties, any information believed to contain proprietary or source selection information not belonging to the Company, except
where permitted by law or express agreement. 
 Recruitment and Employment of Current and Former U.S. Government Employees:
Federal laws and regulations restrict post-government employment activities of former government officers and employees. 
 Gratuities,
Bribes and Kickbacks: Employees must not offer, solicit, accept, or provide, or attempt to offer, solicit, accept or provide any improper payment or inducement that may be described as a gratuity, bribe, or kickback from or to any actual or
potential Alion customer, supplier or government employee or official. 
 Doing Business Overseas: Alion policy and the U.S.
Foreign Corrupt Practices Act prohibit the giving of money or anything of value to a foreign official for the purpose of influencing a foreign official, even if local practice or custom permits it. 

Organizational Conflicts of Interest (“OCI”): Employees are required to disclose all actual or potential OCIs. 

False Claims: Employees must not submit or concur in the submission of any claims, bids, proposals, or any other documents of any kind that
are false, fictitious, or fraudulent. 

 

 Labor Charging: Timely and accurate completion of timesheets is essential; employees must
record all hours worked. 
 Government and Company Investigations: Any government inquiry arising through a written
subpoena or a written request for information must be provided to the Law Department before any action is taken or promised. 
 Protecting
Shareholder Value and Compliance with Applicable Securities Laws: The trading of Alion securities or securities of other publicly-traded companies based on material, non-public information relating to any company is unethical and illegal.

 Protecting Confidential and/or Proprietary Information and Intellectual Property: Employees are responsible for ensuring the
proper protection of Alion confidential and/or proprietary information and capital assets including intellectual property. 
 Security of
U.S. Government Classified and Other Sensitive Information: Employees must not seek access to, accept, or retain any classified materials for which they do not have a need to know, or which they are not otherwise entitled to possess.

 Records Retention and Destruction: Employees must ensure that business records are available to meet the business needs of the
Company, including all applicable legal, tax, and other regulatory requirements. 
 Conflict of Interest: Employees and their
immediate families should avoid any situation that may create or appear to create a conflict between personal interests and the interests of the Company. 
 Discrimination and Harassment, including Sexual Harassment: Alion will not tolerate inappropriate behavior to include verbal or physical conduct that creates an intimidating, offensive, or
hostile environment. No form of harassment will be tolerated including harassment for race, national origin, religion, disability, pregnancy, age, military status, sex, or sexual orientation. 
 Technology in the Workplace: Whether in electronic or other form, all obscene, pornographic, inappropriate, offensive, harassing or discriminatory material is strictly prohibited in the
workplace, and at work-related activities, as well as on technology or systems used for Alion business. 

 

  
 2 Alion Code of Ethics,
Conduct and Responsibility 

 STATEMENT OF PURPOSE 
 The purpose of this Code is to state the principles of business ethics and conduct that Alion requires all employees, officers, directors and consultants to follow in dealings on behalf of
Alion with the government, the general public, customers, suppliers, competitors, and fellow employees, and to outline the requirements of the Alion Ethics Compliance Program (the “Program”). All officers and managers are responsible for
making this Code known and regularly stressing its importance to employees over whom they have supervision. 
 POLICIES AND PROCEDURES

 The policies and procedures referenced in the Code can be found on the Alion Intraweb at: 

 

	 	•	 	 http://intraweb.alionscience.com (internal) 

  

	 	•	 	 https://iweb.alionscience.com (external) 

 VIOLATIONS AND REPORTING MISCONDUCT 
 (See Policy Nos. LE2.01, LE2.02, LE2.03 and LE2.05)

 Violations of this Code, or of Alion policies or procedures, or violations of law or regulation by any employee may result in disciplinary
action up to and including termination. Alion may apply such disciplinary measures to any employee who directs or approves of prohibited activities, or who has knowledge of them and does not act promptly to correct or report them. Employees who fail
to take reasonable steps to prevent or detect improper conduct are also subject to disciplinary action. Additional criminal or civil penalties may apply for violations of laws or regulations (federal, state, and local) governing activities outlined
in this Code. 
 Employees are obligated to report immediately any violation or apparent violation of the Code, or of Alion
policies or procedures, or violations of law or regulation, in accordance with Alion policy LE2.01 – Ethics Compliance Program, LE2.02 – Ethics Hotline, LE2.03 – Internal Investigations and LE2.05 – Disclosing Violations of Law
and Contract Overpayments. Alion fosters open and free communication within the Company to ensure that all reported violations are promptly investigated in accordance with applicable Alion policies and procedures. Employees must not conduct their
own preliminary investigations. Alion will investigate all incidents reported to the Company to the fullest extent possible and will take appropriate action to address the situation. Employees have a duty to cooperate fully with such investigations
and to provide all information that they possess regarding such violations. Failure to cooperate fully in a forthright manner with any such investigation is grounds for disciplinary action up to and including termination.

 In doing business with the U.S. Government, Alion must also comply with the mandatory disclosure rule under
the Federal Acquisition Regulations (“FAR”). Under the FAR, U.S. Government contractors and subcontractors are required to disclose to the federal government credible evidence of certain violations of U.S. criminal law, the civil False
Claims Act, and significant overpayments involving the award, performance, or closeout of a U.S. Government contract or subcontract. Alion requires the prompt good faith reporting of any violation or apparent violation of this Code, or of Alion
policies or procedures, or violations of law or regulation. Anyone to whom such a disclosure is made (i.e., Human Resources Manager, Supervisor) must immediately forward the report to the Corporate Compliance Officer. 

Alion does not discharge, demote, suspend, threaten, harass, retaliate, or discriminate against any person based upon the lawful action of any such
employee with respect to good faith reporting of a violation or potential violation. In addition, any acts of retaliation against employees who follow the requirements of the Program, will not be tolerated and, in accordance with Company policies
and procedures, will result in disciplinary action up to and including termination. 

 

  
 Alion Code
of Ethics, Conduct and Responsibility 3 

 
 REPORTING MECHANISMS 
 (See Policy Nos. LE2.02 and LE2.03) 
 Ethics Hotline: Employees can call the Ethics
Hotline or Report Online to express a concern or report possible violations of the Code, or of Alion policies or procedures, or violations of law or regulation. When reporting a concern, employees may be asked to provide the time, location, names of
the people involved, and other details so that a proper investigation can be conducted. Every call to the Ethics Hotline or online submission is handled promptly, discreetly, and professionally, and may remain anonymous if so desired. The Company
will investigate reports of illegal or unethical conduct received through these reporting mechanisms, and take appropriate action to resolve each reported matter. 
 Alion 
 Ethics Hotline 

877-439-9227 

24 hours a day, 7 days a 
 week 
 From outside the U.S., call collect 770-776-5697 

Report Online: www.tnwinc.com/alion 
 Ethics Contacts: Employees may also directly contact their supervisor, the Group Compliance Officer, the Corporate Compliance Officer, the Group Human Resources Manager, the Law Department
or Internal Audit. 
 These reporting mechanisms can be found on the Alion Intraweb at: 

 

	 	•	 	 http://intraweb.alionscience.com/ethics (internal) 

  

	 	•	 	 https://iweb.alionscience.com/ethics (external) 

 RESPONSIBILITIES 
 General Responsibilities for all Associated with Alion 

Alion directors, officers, employees, agents, consultants, subcontractors, and suppliers are expected to: 

 

	 	•	 	 Conduct business in accordance with the highest ethical standards;

	 	•	 	 Comply with the letter and spirit of the laws of the U.S. and other jurisdictions in which Alion does business; 

 

	 	•	 	 Use Alion and customer resources appropriately; 

  

	 	•	 	 Never participate in, condone, or ignore illegal or unethical acts; and 

 

	 	•	 	 Raise ethical concerns immediately and escalate them as necessary to all appropriate resources within the company. 

Governing Authority Responsibilities 

The Corporate Governance and Compliance Committee of the Board of Directors is responsible for providing overall guidance with respect to the Program. In
addition, the Audit and Finance Committee of the Board of Directors has established procedures for the receipt, retention, and treatment of complaints regarding accounting, internal accounting controls, auditing, or other financial matters. These
procedures allow for the confidential and anonymous submission of concerns regarding questionable accounting or auditing matters. 

Corporate Compliance Officer and Group Compliance Officer Responsibilities 
 The Corporate Compliance Officer (“CCO”), appointed by the Chairman and Chief Executive Officer, shall serve as the chief compliance officer for the Company, reporting to the CEO and the
Committee, by monitoring and reporting results of Program efforts of the Company and by providing guidance for the Board and the senior management team on matters relating to compliance. The CCO implements all necessary actions to ensure achievement
of the objectives of an effective compliance program. 
 Each Group within Alion has a Group Compliance Officer (“GCO”) responsible
for maintaining a high level of awareness and visibility of the Program to employees at the Group level. In addition, an existing GCO is assigned at the Sector level to act as a point of contact for Sector level employees. 

Manager and Supervisor Responsibilities 

Each manager and supervisor has the responsibility to employees, consultants, agents, and other representatives of the Company under his or her direction
or control to: 
  

	 	•	 	 Lead by example 

  

	 	•	 	 Affirm the need to follow the Code, laws, regulations, and policies that govern our business

 

  
 4 Alion Code of Ethics,
Conduct and Responsibility 

	 	•	 	 Encourage an environment where employees ask questions and get advice before they act 

 

	 	•	 	 Consult with their ethics contacts 

  

	 	•	 	 Implement control measures to detect compliance risks 

 

	 	•	 	 Take prompt action to correct problems 

 Employee Responsibilities 
 Alion is committed to conducting its business in accordance with
all applicable federal, state and local laws and regulations, and in accordance with the Code. Alion employees are expected to comply and to assist the company in complying with each of these obligations. All employees have the responsibility to
familiarize themselves with the Code, its implementing policies and procedures, and the Program. 
 Any employee who suspects or has knowledge
of violations of the Code, or of Alion policies or procedures, or violations of law or regulation should immediately report any concerns using one of the reporting mechanisms set above. 
 Employees are required to participate in mandatory ethics training on an annual basis. In addition, non-mandatory ethics training is provided on an intermittent basis. 

Responsibilities of Consultants, Subcontractors and Suppliers 
 Alion policy requires consultants, subcontractors, and suppliers to comply fully with Alion’s Code or to have an equivalent Code and to inform appropriate Alion company officials immediately of any
illegal or unethical conduct in dealings with Alion directors, officers, and employees. 
 Internal Audit Responsibilities 

Internal Audit will provide audits, reviews and assessments of the Program and Alion’s internal controls. Internal Audit will also provide assistance
to the CCO in the form of special reviews or assist, as appropriate, in internal investigations. 
 COMPLIANCE WITH LAWS AND REGULATIONS

 Alion conducts its business activities in compliance with all applicable U.S. (federal, state, and local) laws, regulations, and judicial
decrees, as well as those of other countries where Alion conducts business. No employee may take any action on behalf of Alion that the employee knows, or reasonably should know, would violate any law or regulation.

 In addition to literal compliance with legal requirements, each employee must adhere to the overriding
moral and ethical standards of fair dealing in the conduct of business. Alion’s interests are not served by unethical practices and activities even in the absence of a technical violation of law. When no legal requirement applies directly to a
questionable situation, employees must conduct Alion business in a manner protective of Alion’s tradition of integrity and ethical conduct. 
 MARKETING AND PROCUREMENT INTEGRITY 
 (See Policy No. LE1.06) 

Employees must always deal honestly and fairly with all government customers, as well as with other contractors, teaming partners, subcontractors,
suppliers, and consultants supporting Alion’s government business. When preparing government proposals and negotiating contracts, employees must always be accurate, current, and complete in all of their representations on behalf of Alion. In
conducting business with government agencies, the Company is required to abide by certain special contract and procurement regulations and rules designed to protect the public interest and integrity of the government procurement processes.

 In addition, the submission to a government customer of a proposal, price quotation, claim, or other information that is knowingly false,
incomplete, or misleading can result in civil or criminal liability for both the Company and individual employees involved in the submission. The penalties for such practices include suspension of a contract, debarment, imprisonment, and/or fines.
The Company is obligated to and must disclose, when required to do so, current, accurate, and complete cost and pricing data. Generally, cost and pricing data includes historical price and cost information plus information related to supplier
quotations, cost trends, management decisions, or other factors that may potentially affect costs. 
 Government contracts frequently impose
high level quality requirements for critical and complex items. Management is responsible for identifying such requirements and communicating them to all employees assigned to the contract. Where a contract specifies use of particular components,
equipment, materials, or processes, such specifications will be followed. Substitution of other components or changes in the scope of work in a contract is permitted only upon receipt of a written contract modification signed by the authorized
government official, or as otherwise permitted by the contract. In such cases, employees should consult with the appropriate Group Contracts Manager or the Corporate Director of Contracts for guidance.

 

  
 Alion Code
of Ethics, Conduct and Responsibility 5 

 GOVERNMENT PROPRIETARY AND SOURCE SELECTION INFORMATION 

(See Policy No. LE1.06) 
 Employees must not
obtain, or ask to obtain, directly or indirectly, from any government employee or other third parties, any information believed to contain proprietary or source selection information not belonging to the Company, except where permitted by law or
express agreement. Examples include information contained in a competitor’s bid or proposal, cost or pricing data, or other information submitted to the government or contemplated for submission to the government and designated as proprietary
in accordance with the law or regulation. 
 Should an Alion employee receive any such proprietary or source selection information, the
individual should immediately report it through any of the Reporting Mechanisms on page 4. 
 RECRUITMENT AND EMPLOYMENT OF CURRENT AND
FORMER U.S. GOVERNMENT EMPLOYEES 
 (See Policy No. LE2.08) 
 Federal laws and regulations govern the employment of current or former U.S. Government employees (military or civilian), either directly or as consultants (known as the “Revolving Door”). These
requirements also regulate the circumstances under which Alion may engage in pre-employment discussions. If a current government employee seeks employment with Alion, that employee must notify his or her supervisor and ethics official immediately to
initiate a review of the situation in accordance with federal procurement integrity laws and regulations. In addition, the Revolving Door issue is a compliance requirement for the Company’s contractual representations and certifications.

 All prospective employees and consultants who are current or former U.S. Government officers or employees must complete the Alion Employment
Questionnaire and Certification Form. This Employment Questionnaire and Certification Form is designed to assist Alion in determining which restrictions, if any, apply to the prospective employee/consultant and in assessing the impact upon
employment discussions, hiring restrictions, and future work assignments at Alion. 

 

 Before initiating any action to discuss the employment of current or former U.S. Government employees,
Alion employees must consult with the Director of Human Resources. In the event that a former U.S. Government employee becomes a consultant or employee of Alion, Alion will observe all applicable post-employment requirements. 

GRATUITIES, BRIBES AND KICKBACKS 
 (See
Policy No. LE2.06) 
 Except as provided below, employees shall not offer or give any gift, gratuity, bribe or kickback to any Alion customer,
supplier or government employee or official nor shall employees accept or solicit any gift, gratuity, bribe or kickback from any such person that would violate law, regulation, or the policies of the Company or the recipient’s Company, or cause
embarrassment to or negatively reflect on the Company’s reputation. This applies to both Alion employees and any member of an Alion employee’s household or immediate family (any relative of the employee or the employee’s spouse).

 U.S. Government Customers, Employees and Officials: Alion employees may not offer or give prohibited business courtesies such
as entertainment, meals, gifts, gratuities, and other things of value to any actual or potential U.S. Government customers, employees and officials or their families. The following exceptions apply: 

 

	 	•	 	 Modest items of food and refreshments such as soft drinks, coffee and donuts on an occasional basis in connection with necessary and legitimate
business activities. 

  

	 	•	 	 Unsolicited gifts (including meals, transportation, lodging, or entertainment) having an aggregate value of $20 or less per government employee, per
occasion, provided such items do not in aggregate exceed $50 per person in a calendar year, may be provided. This is commonly referred to as the “20/50 Rule.” 

 

	 	•	 	 Marketing or promotional items such as a coffee mug, pen, or T-shirt listed in the Alion Promotional Catalog, intended solely for the purpose of
presentation and displaying the company logo, are permissible so long as the item conforms to the 20/50 Rule. 

 There are a
few additional exceptions to the general prohibition against gifts. However, no expenditure for such gifts is reimbursable to the employee AND the employee MUST contact the Law Department prior to procuring or providing any such gifts.
Such items may include: 

 

  
 6 Alion Code of Ethics,
Conduct and Responsibility 

	 	•	 	 Awards and honorary degrees 

  

	 	•	 	 Gifts based on outside business or employment relationships (e.g., flowers for illness or death) 

 

	 	•	 	 Social invitations from persons other than prohibited sources 

 

	 	•	 	 Gifts authorized by supplemental agency regulations 

  

	 	•	 	 Gifts accepted under specific statutory authority 

  

	 	•	 	 Gifts motivated by longstanding personal or family (non-business) relationships 

 

	 	•	 	 Discounts and similar benefits 

 Foreign Customers: Meals, entertainment and reasonable gifts may generally be provided to foreign customers who are NOT foreign officials or officials of state owned companies provided they
are permissible under local law and in accordance with the above 20/50 Rule. 
 Any and all requests for payment or provision of business
courtesies (meals, gifts, lodging, transportation, etc.) to a foreign official (including officials of state-owned companies), foreign political party or party official, or candidate for foreign political office must be submitted in advance to the
Law Department. 
 Domestic Non-Government Customers: Alion does not prevent employees from socially entertaining non-U.S.
Government business acquaintances. Meals, refreshments, entertainment and reasonable gifts (having a market value of $100 or less) may generally be provided to non-U.S. Government (domestic) customers, provided they are in support of business
activities and permissible under the rules of the recipient’s company policy and approved by the Law Department. 
 Business
Courtesies to Alion Employees—Meals, Refreshments and Entertainment: Although an employee may not use his or her position at Alion to solicit a personal benefit of any kind or amount, it is permissible to accept unsolicited meals,
refreshments, entertainment, and other business courtesies such as local transportation, on an occasional basis, provided all of the conditions set forth in Policy No. LE2.06 are met.

 Gifts to Alion Employees: Alion employees are not permitted to accept compensation,
honoraria, funds in any form or amount, or any other form of gift or gratuity from any entity, representatives of any entity, or any person that does or seeks to do business with Alion, unless approved by the Law Department. Gifts from U.S.
Government customers, suppliers or vendors must not be accepted, except for advertising, promotional or other items of nominal value (generally $25 or less). Reasonable gifts (having a market value of $100 or less) from non-U.S. Government
(domestic) customers, suppliers or vendors may be accepted provided they are in support of business activities and permissible under the rules of the donor’s company policy and approved by the Law Department. 

Be Mindful of Appearances: Alion employees must avoid any situation (such as the offering or acceptance of meals, gifts, gratuities, or
entertainment) that may create or appear to create a conflict between the employee’s personal interests and the interests of Alion. 

DOING BUSINESS OVERSEAS 
 (See Policy
Nos. LE3.01 and LE3.02) 
 Employees must be mindful of both the U.S. laws and the laws and customs of the host country in which Alion does
business. Although a survey of host country laws is beyond the scope of this Code, the following U.S. laws applicable to business activities overseas are noted: 
  

	 	•	 	 Foreign Corrupt Practices Act (“FCPA”) 

  

	 	•	 	 Anti-boycott Laws 

  

	 	•	 	 Embargo Regulations 

  

	 	•	 	 Export/Import Laws and Regulations 

 The Foreign Corrupt Practices Act (“FCPA”) has two principal components that: 
  

	 	•	 	 Prohibit the making of bribes, kickbacks, or other forms of corrupt, illegal, or improper payments to government officials for the purpose of obtaining
or retaining business; and 

  

	 	•	 	 Require that the financial books, records, and accounts of the Company are accurate, current, and complete in all respects, and that the Company has a
system of internal accounting controls to ensure accurate books, records, and accounts. 

 The Anti-boycott Laws
prohibit U.S. persons and companies from taking actions or entering into agreements that further economic boycotts or restrictive trade practices not supported by the U.S. Government. This primarily involves prohibiting actions that have the
effect of furthering the Arab Boycott of Israel. 

 

  
 Alion Code
of Ethics, Conduct and Responsibility 7 

 The Office of Foreign Assets Control (“OFAC”), through the Foreign Assets Control Regulations,
prohibits exports to certain countries, individuals, or entities that are the object of sanctions by the U.S. These Embargo Regulations apply to all technologies and all transactions, not just exports. Something as simple as electronic
mail exchanges or sending marketing materials to certain countries can violate the OFAC regulations. All transactions conducted by Alion and its employees must be carefully analyzed to ensure that an embargoed country, or a national from an
embargoed country, is not involved. 
 The Export/Import Laws and Regulations were enacted to: 

 

	 	•	 	 Encourage and allow international commerce while maintaining the well-being and national security interests of the U.S. The Export Administration
Regulations, the International Traffic in Arms Regulations and the Federal Firearm Regulations establish licensing, recordkeeping, screening, and reporting frameworks designed to ensure that these Regulations are properly implemented and enforced.

  

	 	•	 	 Prohibit the export and re-export of certain U.S. origin products, services, and technologies and control the export and re-export of certain products,
services, or technologies; and 

  

	 	•	 	 Require the use of an export license, license exception, or license exemption to export, controlled products, services, or technology specifically
identified by the U.S. Government. 

 Alion is required to document the export (including the temporary export) of any
Company-Owned or Government Furnished equipment under an export license or license exception. When conducting foreign travel, whether for Alion business or personal reasons, it is essential to recognize and understand U.S. government controls
regarding export restrictions. The export control regulations impact what you may take with you (or “export”) and, for some destinations, prohibit travel entirely. 
 Violations of these laws and regulations can result in severe fines to Alion and its employees, and can result in imprisonment. 
  

 ORGANIZATIONAL CONFLICTS OF INTEREST 
 (See Policy No CN3.10) 
 Alion policy prohibits any contract from being negotiated or executed if
the interests of a particular customer are of such a nature as to compromise or threaten Alion’s ability to maintain unbiased objectivity in serving its other customers, resulting in a potential Organizational Conflict of Interest
(“OCI”). 
 Examples of potential OCIs include: 
  

	 	•	 	 Competing for a management/services contract that might require the contracting company to evaluate its own or its competitors’ products for use
by the government; 

  

	 	•	 	 Competing to supply products/services for which Alion has designed the specifications; 

 

	 	•	 	 Access to other companies’ proprietary information that has not been authorized for use in landing/performing the contract; and

  

	 	•	 	 Access to other companies’ proprietary information obtained by leveraging the contract in question, which might provide an unfair competitive
advantage. 

 Where an actual or potential OCI may occur by entering into a contractual agreement or by accepting a task under
an awarded contract, such contractual instruments may be entered into only after all of the following conditions have been satisfied: 
  

	 	•	 	 Full and complete disclosure of the actual or potential OCI has been made to the appropriate government official(s) with a proposed means of avoiding,
mitigating or neutralizing all perceived conflict(s); and 

  

	 	•	 	 Consent to the execution of the contractual arrangement has been obtained from the appropriate government official(s), along with any necessary
government approvals of an appropriate OCI avoidance and mitigation plan where required. 

 

  
 8 Alion Code of Ethics,
Conduct and Responsibility 

 FALSE CLAIMS 
 (See Policy No. LE1.06) 
 Employees must not submit or concur in the submission of any claims,
bids, proposals, or any other documents of any kind that are false, fictitious, or fraudulent. With regard to government contracts, such acts are criminal violations which could result in prosecution of both the Company and the employee. 

Employees charging costs to a contract must ensure that all costs are accurately recorded and charged to the proper account. The mischarging of labor
costs, the improper allocation or transfer of costs, or the falsification of other cost records is not tolerated. 
 Employees must be aware of
certification clauses, including OCI clauses, in government contracts and in all solicitations for which a bid is prepared. Employees must be mindful that reckless disregard for the truth or falsity of information presented to the government
triggers the knowledge requirement for False Claims Act liability. 
 LABOR CHARGING 

(See Policy No. TA12.08) 
 Timely and accurate
completion of timesheets as described in Alion’s policies and procedures is essential. Alion must ensure that no cost is allocated to a government contract, either directly or indirectly, where unallowable, contrary to the contract or related
regulations, or otherwise improper. Timesheets must report the number of hours worked and the proper distribution of the time against appropriate cost objectives represented by project and overhead ventures. Employees can ensure accuracy in time
reporting by charging a cost objective only for the work performed on that objective. Each employee must complete an original timesheet (using either the paper or electronic time reports) on a daily basis. 

Employees must record all hours worked, including mandatory Alion training (even if done after regular work hours), on a daily basis or by 10 a.m.
the next business day. Reporting hours not worked, but for which pay is received (e.g., leave, excused absences), must be true and accurate. Shifting of costs to a contract other than the contract worked on is strictly prohibited. It is
essential that employees properly document and allocate any cost charged to a customer. These costs might include, but are not limited to, travel expenses, purchases, and use of equipment charges. Improper charging or allocation of time or any other
cost may constitute a violation of civil or criminal statutes and regulations.

 Direct-charge employees must keep time and labor-charging reports current and must properly report all time
spent on each project/assignment. Assignments shall not be initiated until all proper documentation, including a charge number, has been issued and communicated to the employee. When this is not possible, a governmental Authority to Proceed is
required. 
 GOVERNMENT AND COMPANY INVESTIGATIONS 
 (See Policy Nos. LE1.08, LE1.09, LE2.03 and LE2.05) 
 As a U.S. Government contractor, Alion is
subject to an array of laws and regulations governing its business activities. In some circumstances, a government agency may initiate an investigation or review of the Company’s activities or the activities of an employee. During such
investigations, the Company will comply with all applicable laws, regulations and contractual requirements, and will cooperate fully with appropriate investigating agency officials. In addition, the Company has certain procedures in the event a
government official contacts an employee, requests information from an employee or the Company, and/or seeks to interview any employee in connection with an investigation that may involve possible violations of law. If this occurs, always contact
the Law Department immediately. 
 The Company will often conduct its own internal investigation in cooperation with any government review. The
Company also maintains a policy on disclosure to appropriate government agencies with regard to any suspected violations of law and contract overpayments involving the Company or any of its employees. 

Alion also maintains policies and procedures for the Audit and Finance Committee and the Corporate Governance and Compliance Committee of the Board of
Directors to administer and investigate complaints of a financial or other material nature including, but not limited to, accounting, financial reporting, and internal controls.

 

  
 Alion Code
of Ethics, Conduct and Responsibility 9 

 PROTECTING SHAREHOLDER VALUE AND COMPLIANCE WITH SECURITIES LAWS 

(See Policy Nos. TA1.01, TA3.02, TA11.01, and LE1.05) 
 The Alion Employee Stock Option Plan (“ESOP”) Trust owns 100 percent of Alion’s stock. Although Alion’s stock is not publicly traded, Alion is required to make public filings with the
U.S. Securities and Exchange Commission (“SEC”) of certain financial and other business information. 
 Proper
Accounting: In order to assure corporate integrity and to preserve and enhance shareholder value, the Company will aggressively pursue growth and earnings objectives, while keeping ethical and legal standards at the forefront of all
activities. This includes absolute reliability and accuracy of books and records, and honesty in disclosures. The books of account, financial statements, and records of the Company are intended to reflect accurately and fairly, in reasonable detail,
the Company’s operations and financial position and the underlying transactions and any disposition of assets. The books, statements, and records should be maintained in accordance with established financial and accounting policies issued by
the Company and with generally accepted accounting principles, and in accordance with SEC requirements. All invoices submitted to the government for payment must be reviewed carefully for accuracy. If there is doubt as to whether a particular cost
is allowable, it should not appear on the invoice. An employee’s approval of an invoice means that the employee has certified that the amounts claimed are proper. Submission of inflated claims could lead to liability for the Company and the
employee who approves the claim. 
 Recording and Reporting Information: Information that is the basis for recording transactions
or measuring the Company’s performance and results should be recorded and reported accurately and honestly. No employee shall falsify, forge, or record inaccurate or misleading information that is used for recording transactions. Dishonest
reporting, either inside or outside the Company, is strictly prohibited. This includes misreporting information or organizing it in a way that is intended to mislead or to misinform those who receive it. 

Discussing Company Affairs: Information about the Company and its affiliates, particularly financial information not yet disclosed, should
not be disclosed to persons outside the Company, unless the information has been made public or unless disclosing the information is related to the Company’s business and is done in accordance with applicable securities laws and regulations.
Confidential Company business should not be discussed in public places or in places where visitors are likely to be present, such as lobbies, elevators, and cafeterias.

 Insider Trading: The use of non-public information for private gain, or the disclosure of
non-public information to persons other than Alion employees or others who have a legitimate business need for the information, is strictly prohibited. The trading of Alion securities or securities of other publicly-traded companies based on
material, non-public information relating to any company is unethical and illegal. Such trading includes acquiring a beneficial interest in Alion’s stock through pre-tax deferrals, rollovers or transfers to the ESOP. Liability can also extend
to any employee who discloses material, non-public information to another person, who in turn uses such information in a securities transaction. Even accidental disclosure of inside information to another party can be a serious breach of corporate
confidentiality and can also result in insider trading. For this reason, every employee must avoid discussing sensitive information in any place where such information may be overheard by others. All incidents of disclosure of inside information
must be promptly reported to the Law Department. Information is considered material if it would be considered important by investors making decisions on whether to purchase, sell, or hold the securities of the company in question.

 

  
 10 Alion Code of Ethics,
Conduct and Responsibility 

 PROTECTING CONFIDENTIAL AND/OR PROPRIETARY INFORMATION AND INTELLECTUAL PROPERTY 

(See Policy No. LE1.04) 
 Employees are
responsible for ensuring the proper protection of Alion confidential and/or proprietary information and capital assets including intellectual property. This responsibility is not limited to Alion facilities, but extends to the reasonable protection
of all assets (confidential and/or proprietary information or intellectual property) used by Alion in the performance of its mission. This responsibility also extends to all confidential and/or proprietary information and intellectual property
produced by and/or communicated to employees as a result of employment at Alion. In accordance with Alion’s Employee Intellectual Property Agreement, Alion retains all rights, title, and interest to all inventions, software, and other
intellectual property that result from or are suggested by work performed by employees for Alion or use of Alion resources. 
 Employees must:
(a) take all responsible steps to comply with all applicable procedures established by Alion with respect to protecting confidential and/or proprietary information from unauthorized or inadvertent disclosure; (b) use confidential and/or
proprietary information only as necessary and proper in the performance of his or her duties as an employee of Alion; and (c) not directly or indirectly, without the written consent of Alion, reproduce, copy, disseminate, publish, disclose,
provide or otherwise make available to any person, firm, corporation, agency or other entity, any confidential and/or proprietary information. Under no circumstances shall an employee use, directly or indirectly, any such confidential and/or
proprietary information for any purpose other than for Alion’s sole benefit. All employees must, upon termination of employment, deliver to Alion all confidential and/or proprietary information and any other Company documents or information in
their possession. 
 In addition to the obligations with respect to Alion confidential and/or proprietary information, Alion must protect and
hold in confidence confidential and/or proprietary and business-sensitive information given to it by customers, corporations, or individuals with whom it does business. Employees must report possession of such information to their Group Manager, and
must take all necessary measures to protect such third party information from unauthorized disclosure.

 SECURITY OF U.S. GOVERNMENT CLASSIFIED AND OTHER SENSITIVE INFORMATION 

(See Policy No. LE4.01) 
 Employees have an
obligation to comply with the government regulations and laws that protect our nation’s defense secrets and to prevent any unauthorized access to or dissemination of sensitive information. 

Employees who have a valid security clearance and require access to specific classified information must handle such information, in whatever form it
exists, strictly in accordance with the procedures set forth by the appropriate governmental agency for safeguarding classified information. Such procedures normally encompass activities such as storage, reproduction, review, shipping, and
destruction of classified information. 
 Employees must not seek access to, accept, or retain any classified materials for which they have no
need to know, or which they are not otherwise entitled to possess. Employees with questions relative to the security of U.S. Government classified information should contact the local Facility Security Officer or Alion’s Corporate Security
Officer. 
 In addition, information may be unclassified but sensitive in the form of documents labeled “For Official Use Only” or
“For Internal Use Only” (or words to that effect) to identify information or material which, although unclassified, may not be appropriate for public release, or “NOFORN” meaning that the information is not to be conveyed in any
manner to any foreign national except through a license or other valid approval from the appropriate U.S. Government agency or classifying authority. Employees must take appropriate steps to protect such information from unauthorized disclosure
consistent with the agency rules and policies under which such document is issued. 

 

  
 Alion Code
of Ethics, Conduct and Responsibility 11 

 RECORDS RETENTION AND DESTRUCTION 
 (See Policy No. LE1.07) 
 Employees must ensure that business records are available to meet the
business needs of the Company, including the legal, tax, and other regulatory requirements wherever Alion conducts its business. Failure to comply with the requirement to preserve documents and other information as required by the Records Retention
policies and any distributed Hold Notice can result in serious adverse consequences to Alion and its employees. 
 It is unlawful to destroy,
conceal, alter, or falsify any Alion business or other record, document, or object for the purpose of obstructing or influencing any lawsuit or other legal, regulatory, or government proceeding or investigation. Doing so may subject Alion and any
offending persons to severe civil and criminal penalties including substantial damage awards, fines, and imprisonment. 
 CONFLICTS OF
INTEREST 
 (See Policy No. LE2.07) 

Employees and their immediate families should avoid any situation that may create or appear to create a conflict between personal interests and the
interests of the Company. Employees and their immediate families must not engage in any outside interest, activity, or investment which, in the opinion of Alion, may reflect against Alion or conflict with its best interests. 

The following are examples of conflicts of interest: 
  

	 	•	 	 Engaging in employment or any other activity that interferes with your ability to devote the required time and attention to your job responsibilities
at Alion 

  

	 	•	 	 Holding a significant financial interest in a current or prospective customer, supplier, or competitor of Alion, or serving as an employee, consultant,
or director of that business 

  

	 	•	 	 Directing Alion business to a supplier owned or managed by a relative 

 

	 	•	 	 Supervising the job performance or compensation of a relative 

 

	 	•	 	 Using confidential Company information or improperly using Company assets for personal benefit or the benefit of others 

If a conflict of interest or appearance of a conflict of interest develops, an employee must report the matter to his or her supervisor and the Corporate
Compliance Officer. 

 It is important to remember that even if a conflict exists, it will not necessarily result in corrective
action. Conflicts can arise innocently, and most are investigated to the extent necessary to determine that the Company’s interests are being best served. Each conflict must be reported so that an independent determination can be made of the
situation. 
 POLITICAL ACTIVITIES 
 (See Policy No. AP1.01) 
 There are federal, state and local laws that govern contributions made to
political candidates. No political contributions may be made by an employee on behalf of Alion. For purposes of this section, the term “contributions” includes the use of Alion facilities and employee time in connection with an election
for public office. In addition, there are additional federal, state and local laws that govern the activities of government lobbyists. All such activities on behalf of Alion must be coordinated with the Director of Government Relations. 

The Alion Science and Technology Corporation Political Action Committee (“Alion PAC”) makes all political contributions on behalf of
Alion’s business interests. Alion PAC is funded by the voluntary contributions of eligible employees of Alion and its affiliates. Consistent with federal regulations, only eligible employees are asked to consider supporting the Alion PAC.

 Eligible employees must also contact the Alion PAC for guidance before contacting U.S. Congressional and Executive Branch employees and
staff. 
 DISCRIMINATION AND HARASSMENT, INCLUDING SEXUAL HARASSMENT 
 (See Policy No. HR1.02) 
 Alion is committed to providing equal opportunity in employment to all
employees and applicants for employment. No person shall be discriminated against because of race, religion, color, sex, sexual orientation, age, national origin, disability, or military status. 

Alion promotes a productive work environment and will not tolerate inappropriate behavior to include verbal or physical conduct that creates an
intimidating, offensive, or hostile environment. No form of harassment will be tolerated including harassment for race, national origin, religion, disability, pregnancy, age, military status, sex, or sexual orientation.

 

  
 12 Alion Code of Ethics,
Conduct and Responsibility 

 Employees who engage in acts that constitute discrimination and/or harassment will be disciplined in a
manner appropriate to the offense up to and including termination. 
 Managers have a responsibility to keep the workplace free of any form of
discrimination and/or harassment, including sexual harassment. No supervisor or manager may threaten or insinuate, either explicitly or implicitly, that an employee’s refusal or willingness to submit to sexual advances will affect the
employee’s terms or conditions of employment. 
 All acts of discrimination and/or harassment must be reported to a supervisor or manager,
senior management, or the Director of Human Resources or senior management if the complaint involves the supervisor or manager. 
 TECHNOLOGY
IN THE WORKPLACE 
 (See Policy Nos. AD5.04, IT1.01 and IT1.04) 
 Alion technology, systems and accounts (including social media and online communications) are provided for the purpose of conducting Company business. Occasional and incidental use for personal matters
may be permitted. 
 Alion reserves the right to access and audit all such technology, and users should have no expectation of privacy in this
regard. Alion retains ownership of all Alion information wherever situated. No Alion information should be retained on personal technology, and personal accounts should not be used for Alion business. 

Whether in electronic or any other form, all obscene pornographic, inappropriate, offensive, harassing or discriminatory material is strictly prohibited
in the workplace, and at work-related activities, as well as on technology or systems used for Alion business.

  

 

  
 Alion Code
of Ethics, Conduct and Responsibility 13 

 
 KEY DOs AND DON’Ts 

 

	 	•	 	 Avoid any situation, activity or investment which affects or appears to affect your ability to exercise impartial judgment on the job or adversely
affects the Company’s interests, and disclose any actual, potential or perceived conflict of interest 

  

	 	•	 	 Don’t offer, give or receive anything of value under circumstances that are unlawful or could be viewed as an attempt to improperly influence a
recipient’s decisions affecting the Company 

  

	 	•	 	 Don’t give or offer anything of value, directly or indirectly, to any foreign official or entity for the purpose of influencing any act or
decision in their official capacity in order to help Alion obtain or retain business or to direct business to any particular person or company or to secure any improper advantage 

 

	 	•	 	 Comply fully with Alion policies and all federal laws and regulations dealing with the recruitment and employment of current or former federal
government employees, and ensure that all recruitment and hiring practices comport with such laws and regulations 

  

	 	•	 	 Don’t make false or misleading entries of any kind on Company records or accounts at any level 

 

	 	•	 	 Ensure accuracy in all communications with federal, state and local governments 

 

	 	•	 	 Comply fully with Alion policies and all federal laws and regulations dealing with labor charging, and ensure total time accounting to appropriate
charge numbers 

  

	 	•	 	 Follow OCI compliance measures by understanding the OCI categories and rules 

 

	 	•	 	 Don’t destroy any information (hard copy or electronically stored) that is protected by a document hold notice 

 

	 	•	 	 Don’t buy or sell securities based on non-public Company information, including changing investment selections or balances in the Company ESOP
Plan 

  

	 	•	 	 Don’t make or participate in any racist, sexist or other types of discriminatory jokes or comments 

 

	 	•	 	 Don’t view, download, possess, copy, send, post or access any illegal, sexually explicit, pornographic or obscene material of any kind

	 	•	 	 Follow safeguarding measures to ensure proper protection of all Alion Confidential and Proprietary Information as well as capital assets including
intellectual property such as trade secrets 

  

	 	•	 	 Report immediately any violation or apparent violation of the Code, or of Alion policies or procedures, or violations of law or regulation

 CLOSING THOUGHTS 
 The Code has been established to ensure that each employee is familiar with the policies and procedures of Alion toward business conduct and ethics. However, the Code does not cover every situation that
may require an ethical decision. If faced with such a situation, use common sense and answer the following questions: 
  

	 	•	 	 Is the action legal? Contact the Law Department if unsure. 

 

	 	•	 	 How will it look on the front page of the newspaper? 

  

	 	•	 	 Would the action embarrass you if discussed among your professional peers, your friends or your family? 

 

	 	•	 	 Would you feel proud of the decision you make? 

 The success of Alion’s Program depends on the support and cooperation of all employees. If you have any questions relative to the conduct or laws summarized in the Code, refer to the Reporting
Mechanisms set forth in the Code. By keeping these broad lines of communication open and by conducting ourselves responsibly and ethically, we will ensure the continuance of our reputation as a preeminent supplier of technology services and products
to both the government and industry. If anything strikes you as inappropriate or wrong, please report it through any of the Reporting Mechanisms on page 4. 
 This Code may be changed at any time with or without notice. Adherence to this Code and the Program constitutes a term of employment, but the Code shall not otherwise alter the at-will nature of any
employee’s employment or limit the right of either Alion or any employee to terminate that employment relationship with or without notice and with or without cause.

 

  
 14 Alion Code of Ethics,
Conduct and Responsibility 

 
 SUPPLEMENT TO ALION CODE OF ETHICS, CONDUCT, AND RESPONSIBILITY: CODE OF ETHICS FOR FINANCE EMPLOYEES

 Effective November 2007 

This Code of Ethics for Finance Employees (the “Finance Code”) applies to the Chief Executive Officer (“CEO”), Chief Financial Officer
(“CFO”), Controller or other personnel performing similar functions (collectively “Finance Employees”). The Finance Code is intended to supplement the Alion Code of Ethics, Conduct and Responsibility and its implementing policies
and procedures. To ensure complete and accurate financial records and reporting, all Finance Employees will: 
  

	 	•	 	 Act with honesty and integrity and avoid actual or apparent conflicts of interest; 

 

	 	•	 	 Provide constituents with information that is accurate, complete, objective, relevant, timely and understandable; 

 

	 	•	 	 Comply with rules and regulations of federal, state and local governments, and other applicable private and public regulatory agencies;

  

	 	•	 	 Act in good faith, responsibly, with due care, competence and diligence, without misrepresenting material facts or allowing one’s independent
judgment to be subordinated; 

  

	 	•	 	 Respect the confidentiality of information acquired in the course of one’s work except when authorized or otherwise legally obligated to disclose.
Confidential information acquired in the course of one’s work will not be used for personal advantage; 

  

	 	•	 	 Share knowledge and maintain skills important and relevant to constituents’ needs; 

 

	 	•	 	 Proactively promote ethical behavior as a responsible partner among peers, in the work environment and the community; and 

 

	 	•	 	 Exercise responsible use of and control over all assets and resources employed or entrusted.

 Sarbanes-Oxley Compliance 
 The Sarbanes-Oxley Act of 2002 (the “Act”) imposes duties and significant penalties for non-compliance on public companies and their executives, directors, auditors, attorneys and
securities analysts. 
 Because Alion is an issuer of securities that is required to file an annual report on Form 10-K with the Securities and
Exchange Commission (“SEC”), there are numerous aspects of the Act that impact Alion. These include, for example, rules governing the independence of Alion’s independent financial auditor, requirements on the qualifications of members
of the Board’s Audit and Finance Committee, enhanced financial disclosures in filings with the SEC, restrictions on conflicts of interest, and criminal accountability for fraud. 
 Pursuant to the Act, the SEC has issued rules requiring the CEO and CFO to certify that: 
  

	 	1.	The annual report does not contain untrue statements or material omissions; 

 

	 	2.	The financial statements fairly present, in all material respects, the financial condition and results of operations; 

 

	 	3.	Such officers are responsible for internal controls designed to ensure that they receive material information regarding the issuer and consolidated subsidiaries;

  

	 	4.	The internal controls have been reviewed for their effectiveness within 90 days prior to the report; and 

 

	 	5.	Any significant changes to the internal controls have been reported. 

 Consistent with the best practices implemented by public companies, Alion’s CEO and CFO require certain executives who report directly to them to make an internal certification that these executives
have provided the CEO or CFO will all necessary information. Such internal certifications, called “sub-certifications,” are not filed with the SEC, but nevertheless provide the company with assurance that it has obtained all facts
necessary to file a proper report to the SEC. In most cases, the CEO’s and CFO’s direct reports will similarly require their reports to make a second-tier sub-certification. 
 Any questions regarding this Finance Code should be directed to the Alion Law Department or through other channels as set forth in the Code of Ethics, Conduct and Responsibility.

 

  
 Alion Code
of Ethics, Conduct and Responsibility 15 

 NOTES: 
  

 
  

 
  

 
  

 
  

 
  

 
  

 
  

 
  

 
  

 

  
 16 Alion Code of Ethics,
Conduct and Responsibility 

 CERTIFICATION 

 

	1.	Have you completed the 2012 Annual Mandatory Ethics Training
(Training)?    Yes   ̈    No   ̈ 

 

	2.	Have you received and read Alion’s 2012 Code of Ethics, Conduct and Responsibility
(Code)?    Yes   ̈    No   ̈ 

 

	3.	Do you understand the Code and the
Training?    Yes   ̈    No   ̈    Unsure   ̈ 

 If “No” or “Unsure,” please specify what you
don’t
understand:                                       
                                         
      
  

	
	  
 

 

	4.	Are you aware of anything relating to yourself that involves a violation or apparent violation of the Code, or of Alion policies or procedures, or violations of law or
regulation?    Yes   ̈    No   ̈    Unsure   ̈ 

 If “Yes” or “Unsure,” please
explain:                                       
                                         
                                         
       
  

	
	  
 

 

	5.	Are you aware of any situation involving Alion or any of its directors, employees, consultants, agents or representatives that involves a violation or apparent
violation of the Code, or of Alion policies or procedures, or violations of law or regulation?    Yes   ̈    No   ̈    Unsure   ̈ 

 If “Yes” or “Unsure,” please
explain:                                       
                                         
                                         
       
  

	
	  
 

 

	6.	Are you aware of any conflict of interest relating to yourself or involving Alion or any of its directors, employees, consultants, agents or
representatives?    Yes   ̈    No   ̈    Unsure   ̈ 

 If “Yes” or “Unsure,” please
explain:                                       
                                         
                                         
       
  

	
	  
 

 

	7.	Are you aware that the Code requires you to report promptly any violation of the Code as soon as you become aware of it, without waiting for the next Certification
form?    Yes   ̈    No   ̈ 

 

			
	Signature:                            
                                         
                                        
	  	Name
		
	(printed):                            
                                         
                                         
	  	
		
	Group/Sector:                           
                                         
                                 	  	
		
	Date:                             
                                         
                                         
       	  	

 When complete and signed, forward this document to your local human Resources Manager. 

  
 Alion Code
of Ethics, Conduct and Responsibility 17EX-10.68

 Exhibit 10.68 
 LOAN AGREEMENT 
 THIS LOAN AGREEMENT (as amended, modified or
supplemented from time to time, this “Agreement”), dated as of the      day of October, 2011, is made by and between BCL PENDERBROOK, LLC, a Delaware limited liability company (“Lender”),
and COMSTOCK PENDERBROOK, L.C., a Virginia limited liability company (“Borrower”). 
 RECITALS

 A. Borrower desires to obtain a loan to refinance all of the condominium units owned by Borrower (the
“Units”) and appurtenant undivided percentage interests in the common elements (the “Common Elements”) in the condominium known as Penderbrook Square (the “Condominium”) located at 3905 Penderview
Drive, Fairfax, Virginia and more particularly described in Exhibit A attached hereto (the “Property”). 

B. Lender is willing to make a loan to Borrower in the principal amount of Five Million Four Hundred
Twelve Thousand Three Hundred Thirty Dollars ($5,412,330)
(the “Loan”) on the terms and subject to the conditions set forth in this Agreement. 
 AGREEMENT

 For and in consideration of the mutual covenants set forth in this Agreement, and for other good and valuable
consideration, the receipt and sufficiency of which are acknowledged, Lender and Borrower agree as follows: 
 SECTION ONE

 THE LOAN 
 1.1 Advance. Upon the satisfaction of the conditions precedent set forth in Section 3, Lender shall advance the Loan to Borrower by wire transfer in immediately available funds to an
account or accounts designated by Borrower. 
 1.2 Note. The Loan will be evidenced by a Deed of Trust Note made
by Borrower payable to the order of Lender (as the same may be further amended, renewed, restated, supplemented or substituted from time to time, the “Note”). 
 1.3 Use of Proceeds. The proceeds of the Loan will be used (a) to pay off the outstanding principal amount and any accrued and unpaid interest, fees, and other charges under the Amended
and Restated Promissory Note dated February 1, 2007 in the original principal amount of $17,339,125.42 made by Borrower and payable to the order of Guggenheim Corporate Funding, LLC (as successor-in-interest to Corus Bank, N.A.) and
(b) for general corporate purposes. For the avoidance of doubt, general corporate purposes do not include (i) prepayment of debt or making of any other debt payments other than regular debt payments scheduled as of the closing of the Loan,
except as otherwise expressly permitted in the Loan Documents (as defined in Section 3.1(a)); (ii) payment of employee compensation or rent accrued for more than 30 days as of the closing of the Loan, provided however, such payments
shall not be prohibited if (x) they are repaid from the proceeds of the sale or refinance of the project owned by Comstock Cascades II, L.C. (“Cascades”) and (y) the aggregate outstanding indebtedness of Borrower and its
affiliates to Lender and its affiliates divided by the sum of (1) the appraised value of the Units as set forth in the Note that are encumbered by the Deed of Trust and (2) the agreed upon appraised value of other real property owned by
Borrower or any of its affiliates that are encumbered by a mortgage, deed of trust, or deed to secure debt securing any indebtedness to Lender or any of its affiliates (the “Aggregate LTV”) is equal to or less than fifty percent
(50%); 

  
 1 

 
(iii) payment of any operating and capital expenses outside the ordinary course of business without the prior written approval of Lender, which approval shall be granted or withheld in
Lender’s sole and absolute discretion and (iv) payment of dividends or similar forms of distributions before the Loan is repaid in full without the prior written approval of Lender, which approval shall be granted or withheld in
Lender’s sole and absolute discretion. 
 1.4 Guaranty. Comstock Homebuilding Companies, Inc., a Delaware
corporation (“Comstock”), Comstock Emerald Farm, L.C., a Virginia limited liability company, and Comstock Potomac Yard, L.C., a Virginia limited liability company (collectively, “Guarantors”), shall jointly and
severally guaranty the payment and performance of Borrower’s obligations, covenants and agreements under the Loan Documents (hereinafter defined), which guaranty shall be secured by a first priority perfected security interest in all of
Guarantors’ unencumbered assets as more particularly set forth in a guaranty, pledge and security agreement made by Guarantors in favor of Lender (the “Guaranty”). 

1.5 Term. The Note shall mature upon the date that is thirty-six (36) months after the date of closing on the Loan
(the “Maturity Date”). 
 1.6 Fees. Borrower shall pay Lender a fee of one percent (1%) of
the principal amount of the Loan, which fee shall be payable in full upon closing of the Loan. 
 1.7 Security.
The Loan shall be secured by, among other things, the following: 
  

	 	(i)	the Guaranty; 

  

	 	(ii)	a first lien Deed of Trust, Security Agreement and Fixture Filing made by Borrower for the benefit of Lender (as amended, restated, supplemented or substituted, the
“Deed of Trust”) on the Property; 

  

	 	(iii)	an Assignment of Leases and Rents made by Borrower for the benefit of Lender (as amended, restated, supplemented or substituted, the “Leases
Assignment”) on the Property; 

  

	 	(iv)	an Assignment of Sales Contracts and Deposits made by Borrower for the benefit of Lender (as amended, restated, supplemented or substituted, the “Contracts
Assignment”); 

  

	 	(v)	an Environmental Indemnity Agreement made by Borrower and Guarantors for the benefit of Lender (as amended, restated, supplemented or substituted, the
“Environmental Indemnity”); 

  

	 	(vi)	UCC-1 Financing Statements (as amended, restated, supplemented or substituted, the “Financing Statements”). 

1.8 Stonehenge Subordination Agreement. It is understood and acknowledged that the Loan is part of the Senior Indebtedness
(as defined in the Subordination Agreement dated July 12, 2011 by Stonehenge Funding, L.C. and Comstock for the benefit of BCL Eclipse, LLC) to which indebtedness of any type from Comstock to Stonehenge Funding, L.C. is made wholly subordinate.

 SECTION TWO 
 PAYMENTS, ETC. 
 2.1 Payments; Prepayments. Payments of
principal, including mandatory prepayments, and interest with respect to the Loan shall be due and payable as set forth in the Note. All payments due under the Loan 

  
 2 

 
Documents shall be made in immediately available funds to Lender at such place as designated by Lender from time to time. 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 Borrower hereby waives. The terms and conditions of optional prepayments are as set forth in the Note. 
 2.2 Late Charges. If any payment due under the Note is not made within ten (10) days following its due date, Borrower shall pay to Lender upon demand a late charge equal to five percent
(5%) of the amount of such payment. 
 2.3 Default Rate. After an Event of Default (hereinafter defined), the
interest which accrues on the Note shall be increased to the Default Rate (as defined in the Note). 
 2.4
Computations. Interest and fees on the Loan shall be computed on the basis of a year of three hundred sixty (360) days and actual days elapsed. 
 2.5 Indebtedness. As used in this Agreement, the term “Indebtedness” means all present and future indebtedness of Borrower to Lender arising out of or in connection with the
Note or any of the other Loan Documents. 
 SECTION THREE 

CONDITIONS 
 3.1 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 Note, the Guaranty, the Deed of
Trust, the Leases Assignment, the Contracts Assignment, the Environmental Indemnity and the Financing Statements, all as Lender may require (collectively with any other documents executed and delivered evidencing the Indebtedness, the “Loan
Documents”); 

  

	 	(b)	Organizational Documents. Borrower shall provide to Lender: (i) a currently certified copy of its articles of organization 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 (iv) certified copies of its operating agreement and all amendments thereto. Each Guarantor shall
provide to Lender: (i) a currently certified copy of its articles or certificate of incorporation or organization, as applicable, 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 bylaws or operating agreement, as applicable, and all amendments thereto (all of the foregoing, collectively, the “Organizational
Documents”). 

  
 3 

	 	(c)	Opinion. Receipt by Lender of the opinion of the counsel for Borrower and Guarantors, in form and content satisfactory to Lender, in its sole, but
reasonable, discretion. 

  

	 	(d)	Insurance. Receipt by 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 Dollars ($2,000,000) in the aggregate, with not less than One Million Dollars ($1,000,000) 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; together with the insurance required pursuant to Section 2.3
of the Deed of Trust. 

  

	 	(e)	Financing Statements. The financing statements necessary to perfect Lender’s security interest in the personal property subject to the Deed of
Trust and the personal property subject to the Guaranty, and in any other collateral requiring filing of a financing statement for perfection of a lien thereon, shall be duly filed, and Borrower and Guarantors each hereby consent to and authorize
such filing, in all appropriate offices and jurisdictions. All other financing statements covering any of such personal property shall be terminated or 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 Lender. 

  

	 	(f)	Property Documents. Lender shall have received and approved, in its sole discretion, the following: 

 

	 	(1)	Appraisal. An appraisal of the Property prepared by an appraiser acceptable to Lender, in form and content acceptable to Lender, conforming to all regulatory and
internal appraisal guidelines applicable to or established by Lender, in its sole, absolute, nonreviewable discretion, reflecting an “as is” value and a “discounted cash flow value” satisfactory to Lender (the
“Appraisal”), such Appraisal having been received and previously approved by Lender. For the avoidance of doubt; Borrower acknowledges that the gross appraised value to be used to calculate any mandatory prepayment under
Section 4(a) of the Note is as set forth in Schedule 4(a) to the Note and not as set forth in the Appraisal; 

  

	 	(2)	Title Insurance. A commitment for title insurance (the “Title Commitment”) insuring the first priority lien of the Deed of Trust, containing no
exceptions unacceptable to Lender, issued in the name of Lender by a title company acceptable to Lender and in an amount equal to the principal amount of the Note. Such Title Commitment and the title policy issued pursuant thereto (the
“Title Policy”) shall reflect that all requirements for the issuance of the Title Policy have been satisfied, and shall contain such other endorsements or coverages as Lender may require; 

 

	 	(3)	Condominium Documents. Copies of all condominium documents and all amendments thereto with respect to the Property, including without limitation the plats and
plans, declaration, bylaws, rules and regulations, current condominium operating budget and any notices of special assessment (collectively, the “Condominium Documents”); 

 

	 	(4)	Environmental Audit. A Phase I environmental audit of the Property prepared by an environmental consulting firm acceptable to Lender, in its sole discretion,
confirming that the Property is in compliance with all applicable environmental laws; 

  
 4 

	 	(5)	Flood Hazard. Evidence that no part of the building(s) in which the Units are located is located in a special flood hazard area; 

 

	 	(6)	Zoning. Receipt by Lender of a zoning endorsement to the Title Policy acceptable to Lender or such other written evidence as is acceptable to Lender that the
Property is zoned consistent with the uses contemplated; 

  

	 	(7)	Leases; Sales Agreements. Copies of all existing leases and sales agreements with respect to the Property, if any, together with (i) such information
regarding pre-qualification and deposit as may be in Borrower’s possession or control and (ii) a proposed form of lease and form of sales agreement for future leases and sales; 

 

	 	(8)	Management Agreements. Copies of all management agreements with respect to the Property; 

 

	 	(9)	Certificates of Occupancy. Copies of all certificates of occupancy with respect to the Property; 

 

	 	(10)	Service Contracts. Copies of all service contracts related to the Property; 

 

	 	(11)	Licenses and Permits. Copies of all licenses and permits related to the Property; 

 

	 	(12)	Rent Roll. Certified rent roll for the Property as of the date of the closing of the Loan and 

 

	 	(13)	Tax Bills. Copies of all real estate tax bills with respect to the Property during the two-year period prior to closing of the Loan. 

 

	 	(g)	No Default. No event shall have occurred and be continuing that constitutes an Event of Default (as defined below). 

 

	 	(h)	Representations. All representations and warranties contained in this Agreement shall be true and correct in every material respect as of the date
of closing. 

  

	 	(i)	Fees and Expenses. Borrower shall pay in full all fees and charges incurred by Lender in the procuring and making of the Loan, including without
limitation, the reasonable fees and disbursements of Lender’s attorneys, charges for the Appraisal, fees and expenses relating to examination of title, title insurance premiums, surveys, and document recording, documentary, transfer or other
similar taxes and revenue stamps and Lender’s loan fees. 

  

	 	(j)	Satisfactory Documents and Other Matters. All documents delivered pursuant to this Agreement must be in form and substance satisfactory to Lender
and its counsel, and all legal matters incident to this Agreement must be satisfactory to Lender’s counsel. 

  
 5 

 SECTION FOUR 
 REPRESENTATIONS AND WARRANTIES 
 In order to induce Lender to extend credit
to Borrower, Borrower and each Guarantor make the following representations and warranties as to itself as applicable: 
 4.1
Organization. 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. Each Guarantor is a corporation or a limited liability company, as applicable, duly organized, validly existing and in good standing under the laws of the State of
Delaware or the Commonwealth of Virginia, as applicable, and is duly qualified as a foreign corporation or limited liability company, as applicable, and in good standing under the laws of each other jurisdiction in which such qualification is
required. 
 4.2 Execution and Delivery. Borrower and each Guarantor has the power, and has taken all the
necessary actions, to execute and deliver and perform its respective obligations under the Loan Documents, and the Loan Documents, when executed and delivered, will be binding obligations of Borrower enforceable in accordance with their respective
terms. 
 4.3 Power and Authority. Borrower and each Guarantor has the power and authority to own its properties
and to carry on its business as now being conducted. 
 4.4 Financial Statements. All financial statements and
information delivered to Lender by Borrower or any Guarantor are correct and complete in all material respects, and present fairly the financial conditions, and reflect all known liabilities, contingent and otherwise, of Borrower and Guarantors 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 Borrower or any Guarantor has occurred. 

4.5 Taxes. All tax returns and reports of Borrower and Guarantors 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 Borrower or any Guarantor and upon any of its
properties, assets, income or franchises that are due and payable have been paid. 
 4.6 Litigation. There is no
action, suit or proceeding pending or, to the knowledge of Borrower or any Guarantor, threatened against or affecting Borrower or any 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 Borrower or any Guarantor, or that may result in any material liability on the part of Borrower or any Guarantor that would materially and adversely affect the ability of Borrower
or any 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. 

4.7 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, any judgment, order or decree binding on Borrower or any Guarantor, or any other agreements
to which Borrower or any Guarantor is a party. 
 4.8 No Defaults. Except for Existing Debt identified on
Schedule 4.14 that is subject to a forbearance agreement that remains in good standing, and to the best of Borrower’s and Guarantors’ knowledge, neither Borrower nor any Guarantor is in default with respect to any debt, direct or
indirect, or with respect to the Condominium Documents. 

  
 6 

 4.9 Compliance. Borrower and each Guarantor 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”). 
 4.10 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 Borrower or any Guarantor. 
 4.11 Title to Assets. Borrower and
each Guarantor has good and marketable title to all of its assets, subject only to the liens and security interests permitted by this Agreement. 
 4.12 Use of Proceeds. The proceeds of the Loan shall be used only for the purposes set forth in Section 1.3 of this Agreement. The proceeds of the Loan shall not be used to
purchase or carry any margin stock, as such term is defined in Regulations U and X of the Board of Governors of the Federal Reserve System. 
 4.13 Perfection and Priority. When the Loan is advanced, Lender shall have a valid, enforceable and perfected security interest in the Security Property (as defined in the Deed of Trust) and
the Collateral (as defined in the Guaranty), subject only to liens permitted by Lender. 
 4.14 Outstanding Debt; Accrued
Obligations. As of the closing, (i) Borrower will have no outstanding debt other than the Loan, and (ii) no Guarantor will have any outstanding debt other than the debt set forth on Schedule 4.14 attached hereto (the
“Existing Debt”). As of the closing, Borrower and Guarantors have no accrued rent or employee compensation. 

4.15 Capitalization. 
  

	 	(a)	The authorized capital stock of Comstock consists of 77,266,500 shares of Class A common stock and 2,733,500 shares of Class B common stock and 50,000 shares of
preferred stock. As of the date of this Agreement, 17,220,462 shares of Class A Common Stock were issued and outstanding, and the following are unexercised shares: 1,370,515 shares of restricted stock, 762,500 shares in options, and 489,479
shares in warrants. 

  

	 	(b)	Comstock owns 100% of the membership interests in the other Guarantors. 

 4.16 Solvency. Both immediately before and immediately after the closing of the Loan (a) the fair value of the assets of Borrower and each Guarantor will exceed its debts and
liabilities, subordinated, contingent or otherwise and (b) Borrower and each Guarantor will be able to pay its debts and liabilities, subordinated, contingent or otherwise, as such debts and liabilities become due. 

4.17 Intellectual Property. None of the execution, delivery or performance of this Agreement and the other Loan Documents
will alter, impair or otherwise affect or require the consent, approval or other authorization of any other person in respect of any right of Borrower or any Guarantor in any intellectual property. 

4.18 Disclosure. The representations and warranties made in this Agreement and all other documents furnished to Lender by
Borrower or any Guarantor in connection with this Agreement or any transaction contemplated hereby, and in all materials furnished by Borrower or any Guarantor to Lender in connection with the Loan, (i) do not and will not contain, at the time
furnished, any untrue statement of a material fact and (ii) do not and will not omit, at the time furnished, any material fact necessary in order to make them not misleading. 

  
 7 

 SECTION FIVE 
 COVENANTS OF BORROWER AND GUARANTORS 
 In consideration of credit extended
or to be extended by Lender, Borrower and each Guarantor covenants and agrees as follows: 
 5.1 Financial
Information. Borrower and each Guarantor shall deliver to Lender: (i) each year within ninety (90) days after the close of its fiscal year, financial statements prepared in accordance with generally accepted accounting principles
consistently applied, certified as true and correct by an officer of each such entity; (ii) each year within thirty (30) days after filing with the Internal Revenue Service, a copy of each such entity’s federal income tax return and
all schedules thereto; and (iii) promptly following Lender’s request, such financial and other information with respect to such entity and the Property as 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 Borrower or such Guarantor, as applicable, as may be reasonably required by Lender. 
 5.2 Taxes. Borrower and each Guarantor shall timely file all tax returns and reports required by law to be filed, and timely pay all taxes, assessments, other governmental charges or levies
upon itself and upon any of its properties, assets, income or franchises. 
 5.3 Compliance with Laws. Borrower
and each Guarantor shall comply with all applicable laws and regulations, including, without limitation, ERISA. 
 5.4
Maintain Existence, Properties, Insurance and Business; Organizational Documents. Borrower and each Guarantor shall maintain its existence in good standing, maintain and keep its properties in good condition (ordinary wear and tear, fire
or other casualty excepted), and maintain adequate insurance for all of its properties with financially sound and reputable insurers. Borrower and each Guarantor shall remain in the same line of business as it is in on the date of this Agreement and
shall not enter into any new lines of business without the prior written consent of Lender. The Organizational Documents of Borrower and of each Guarantor shall not be amended, changed or modified in any respect without prior written consent of
Lender; provided, however, that on the condition that Lender is given thirty (30) days’ advance written notice, Lender hereby consents to Comstock’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
Comstock. 
 5.5 Notices. As soon as it has actual knowledge, Borrower and each Guarantor shall notify Lender of
the institution or threat of any material litigation or condemnation or administrative proceeding of any nature involving Borrower or any Guarantor. 
 5.6 Books and Records. Borrower and each Guarantor shall maintain complete and accurate books of account and records. The principal books of account and records for Borrower and each
Guarantor shall be kept and maintained at 11465 Sunset Hills Road, 4th Floor, Reston, VA 20190. Neither Borrower nor any Guarantor shall remove such books of account and records without giving Lender at least thirty (30) days’ prior
written notice. Borrower and each Guarantor, upon reasonable notice from Lender, shall permit Lender, or any officer, employee or agent designated by Lender, to examine its books of account and records, and each agree that Lender or such officer,
employee or agent may audit and verify such books of account and records. Borrower and each Guarantor shall reimburse Lender for any reasonable expenses incurred by Lender in connection with any audits of its books of account and records. All books
of account maintained by Borrower and each Guarantor shall be maintained and prepared in accordance with generally accepted accounting principles consistently applied. 

  
 8 

 5.7 Liens. Neither Borrower nor any Guarantor shall 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 under a conditional sale contract or the lessor under a capitalized lease
(collectively, the “Liens”) of any kind or nature in or upon any of its assets, except: 
  

	 	(a)	Liens created or deposits made that are incidental to the conduct of its business, 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 Borrower or any Guarantor, as applicable, 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;

  

	 	(b)	Liens created in connection with project-level financing by Comstock or its affiliate of projects other than the Condominium; and 

 

	 	(c)	Liens securing the Indebtedness; 

provided, however, that, no Guarantor shall be required to comply with this Section 5.7 while the Aggregate LTV is equal to
or less than fifty percent (50%). 
 5.8 Debt. 

 

	 	(a)	Without the prior written consent of Lender, neither Borrower nor any Guarantor shall incur or permit to exist any debt for borrowed funds, the deferred purchase price
of goods or services, or capitalized lease obligations, except for (i) trade debt incurred in the ordinary course of business, (ii) debt incurred in connection with project level financing by Comstock or its affiliate of projects other
than the Condominium, (iii) the Existing Debt, and (iv) the Indebtedness. 

  

	 	(b)	Other than principal and interest payments due and owing under the Revolving Line of Credit Note dated February 22, 2006 in the original principal amount of
Fifteen Million Dollars ($15,000,000) made by Comstock payable to the order of Bank of America, N.A., any unsecured loan hereafter extended to Borrower or any Guarantor by a third party and any secured or unsecured loan extended to Borrower or any
Guarantor by a director or officer of Borrower or any Guarantor, or any entity under the control of a director or officer of Borrower or any Guarantor, shall be subject to a subordination agreement in substantially the same form as attached as
Exhibit B. 

  

	 	(c)	Except for the Indebtedness, no indebtedness of Borrower or any Guarantor may be prepaid in whole or in part other than the Loan during the Term; provided that Comstock
may prepay the following with Lender’s prior written consent: 

  

	 	(i)	Subordinated Deficiency Note dated September 21, 2009 in the original principal amount of $400,000 made by Comstock payable to the order of Cornerstone Bank;

  

	 	(ii)	Amended and Restated Subordinated Deficiency Note dated November 5, 2009 in the original principal amount of $205,488.23 made by Comstock payable to the order of
Wachovia Bank, National Association; and 

  

	 	(iii)	Subordinated Deficiency Note dated November 10, 2009 in the original principal amount of $25,000 made by Comstock payable to the order of Fifth Third Bank.

  

	 	(d)	No Guarantor shall be required to comply with this Section 5.8 while the Aggregate LTV is equal to or less than fifty percent (50%).

 5.9 Contingent Liabilities. Without the prior written consent of Lender, neither Borrower nor any
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; provided, however, that no Guarantor shall be required to comply with this Section 5.9 while the Aggregate LTV is equal to or less than fifty percent (50%). 

  
 9 

 5.10 Sale of Assets. Without the prior written consent of Lender, neither
Borrower nor any Guarantor shall sell, lease, assign or otherwise dispose of any of its assets except for (a) sales in the ordinary course of business including sales of Units, (b) the disposition of assets that are no longer needed or
useful in its business and (c) obsolete or non-performing assets which are replaced with assets of similar or better quality and utility. No sale, lease, assignment or other disposition of any of Borrower’s or Guarantor’s assets shall
be for less than fair market value or not at arm’s length. 
 5.11 Liquidations, Terminations, Mergers and
Acquisitions. Without the prior written consent of Lender, which Lender may grant or withhold in its sole discretion, neither Borrower nor any Guarantor shall dissolve, liquidate, terminate, merge or consolidate with (including by operation
of law) any other person. 
 5.12 Loans and Advances; Investments. Without the prior written consent of Lender,
Borrower shall not make any loan or advance to any of its affiliates, directors, members, managers, officers or employees, 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 arm’s-length transaction nor shall any Guarantor make any (i) investments in any subsidiary or affiliate other than in the ordinary course of, and consistent with, its business as currently conducted
or (ii) loans or advances to any of its directors, officers or employees. 
 5.13 Subsidiaries and Joint
Ventures. Without the prior written consent of Lender, neither Borrower nor any Guarantor shall form any subsidiary, become a general or limited partner in any partnership or become a party to a joint venture; provided that Comstock shall be
permitted to form any subsidiary, become a general or limited partner in any partnership, or become a party to a joint venture with respect to any corporate opportunity (i) that is not subject to the Right of First Refusal and First Offer
Agreement dated July 12, 2011 by and between Comstock and BridgeCom Development I, LLC (the “ROFR Agreement”) pursuant to the terms and conditions of the ROFR Agreement or (ii) with respect to which it previously complied
with Section 2 of the ROFR Agreement. If Lender grants its consent to the formation or acquisition of a subsidiary, Borrower or such Guarantor, as applicable, shall cause such subsidiary to perform and observe all of the covenants contained in
this Agreement. 
 5.14 Affiliates. Without the prior written consent of Lender, neither Borrower nor any
Guarantor shall engage in business with any of its affiliates, stockholders, officers or directors except in the ordinary course of business and on terms that are no less favorable to Borrower or such Guarantor, as applicable, than would apply in an
arm’s-length transaction. 
 5.15 Organization; Control and Management. Until such time as the Loan is fully
repaid, there shall be no Transfer (hereinafter defined) of any interest in Borrower, nor any change in the Control (hereinafter defined) or management of Borrower or any Guarantor, nor any Transfer of the Property except for sales of Units in
accordance with the Loan Documents, without 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, by operation of law or otherwise. “Control” means the ownership, 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 meaning thereto. 
 5.16 Minimum Liquidity
Covenants. Guarantors shall, collectively, maintain the minimum liquidity requirements set forth in Section 3.21 of the Guaranty. 
 5.17 Minimum Sales Requirement. 
  

	 	(a)	 Borrower shall enter into and close under sales contracts on at least eleven (11) Units (the “Minimum Sales”) for each six-month
period (the “Measuring Period”) during the Term 

  
 10 

	 	
(the first such period shall commence on the date of the closing of the Loan). Each sales contract shall be subject to the prior approval of Lender, provided that Lender shall not unreasonably
withhold its approval of any sales contract with a purchase price of at least 90% of the appraised gross value per square foot. If more than eleven (11) Units are sold within any such Measuring Period, the excess sales shall carry forward to
satisfy all or a portion of the foregoing sales requirement for any ensuing Measuring Period and continuing on a cumulative basis until the Maturity Date. 

  

	 	(b)	Borrower may not close under any sales contract that would result in the Condominium becoming ineligible for Federal Housing Administration financing.

 5.18 Intentionally omitted. 

5.19 Performance of Other Contracts. Borrower and each Guarantor shall duly and punctually perform all of its material
contracts and other obligations to all parties with which it has contracts and other obligations. 
 5.20 Participation
Rights. 
  

	 	(a)	Lender (or its affiliate) shall have a right of first refusal to participate as a joint venture partner with Comstock in each future material corporate opportunity
(each, a “Corporate Opportunity”) as more particularly set forth in the ROFR Agreement. 

  

	 	(b)	Within 45 days following Lender’s written request, which request may be delivered from and after October 1, 2011 so long as Cascades owns the Cascades
project, Comstock shall exercise its rights under the Cascades operating agreement to repurchase all of the Class B Units and shall admit Lender (or its affiliate) as a member of Cascades on substantially similar terms as current Class B members as
set forth in the governing documents for Cascades; provided however, Comstock shall not have the absolute right to repurchase Lender’s (or its affiliate’s) equity interest in Cascades unless in connection with (i) a cash-out
refinancing of the Cascades project (with Fannie Mae, Freddie Mac or similar institutional financing) or (ii) the sale of the Cascades project. 

  

	 	(c)	If New Hampshire Ave Ventures, L.C and/or W Street Ventures, L.C. (together, the “Ventures”) is seeking additional material financing, Lender (or its
affiliate) shall have the right, but not the obligation, as part of a Corporate Opportunity, to provide such financing on terms and conditions to be agreed upon by the parties; provided that such terms shall include a minimum preferred return of
twenty percent (20%) or such greater amount as may be mutually agreed to by the parties. 

 5.21
Observation Rights. Lender shall be entitled to designate representatives to receive copies of all materials distributed to, and attend any meeting of, Comstock’s Investment Committee (including any subcommittee thereof) as an
observer upon not less than three (3) business days’ prior notice. 
 5.22 Non-Competes. Comstock shall
maintain in full force and effect and enforce its rights under the (i) Confidentiality and Non-Competition Agreement dated December 17, 2004 by and between Comstock and Gregory V. Benson; (ii) Confidentiality and Non-Competition
Agreement dated December 17, 2004 by and between Comstock and Christopher Clemente; and (iii) Confidentiality and Non-Competition Agreement dated August 17, 2010 by and between Comstock and Joseph Squeri. 

5.23 Collateral Monitoring. At Lender’s sole discretion, a third-party professional selected by Lender and reasonably
acceptable to Borrower may be retained once per calendar year, at Borrower’s sole cost and expense, to establish and monitor the conditions of the collateral assets throughout the Term. 

  
 11 

 5.24 Notice to Lender. Borrower and each Guarantor shall promptly advise
Lender in writing of any condition, event, or act that comes to its attention that (i) would prejudice Lender’s rights under the Loan Documents; (ii) would, with notice or lapse of time or both, become an Event of Default;
(iii) constitutes an Event of Default or (iv) constitutes a material adverse change to its assets, business, properties or business prospects. 
 5.25 Perform Obligations. Borrower and each Guarantor shall fully perform and discharge its obligations under the Loan Documents when and as they become due. 

5.26 Waiver of Subrogation. Notwithstanding anything to the contrary contained in this Agreement, Borrower hereby
unconditionally and irrevocably waives, releases, and abrogates any and all rights it may now or hereafter have under any agreement, at law or in equity (including any law subrogating the rights of Borrower to those of Lender), to assess any claim
against or seek contribution, indemnification, or any other form of reimbursement from any other party liable for payment of any or all of the obligations for any payment made by Borrower under or in connection with the Loan Documents. This
Section 5.26 shall survive the termination of this Agreement. 
 5.27 Further Assurances. At any time
and from time to time, upon the written request of Lender, and at the sole expense of Borrower or Guarantor, as applicable, Borrower and each Guarantor shall promptly and duly execute and deliver such further instruments and documents and take such
further actions as Lender may reasonably request for purposes of obtaining, creating, perfecting, validating, or preserving Lender’s rights under the Loan Documents. 
 SECTION SIX 
 DEFAULT AND REMEDIES 

6.1 Events of Default. Each of the following shall constitute an “Event of Default” under this Agreement:

  

	 	(a)	Failure to Pay. If: (i) Borrower shall fail to pay any payment required under the Note (the “Payments”) when due thereunder
or (ii) Borrower shall fail to pay any amount (other than the Payments) as and when due under any of the Loan Documents; 

  

	 	(b)	Failure to Give Notices. If Borrower or any Guarantor fails to give Lender any notice required by Section 5.5 or
Section 5.24 of this Agreement within ten (10) business days after it has actual knowledge of the event giving rise to the obligation to give such notice; 

 

	 	(c)	Failure to Permit Inspections. If Borrower or any Guarantor refuses to permit Lender to inspect its books and records in accordance with the
provision of Section 5.6, or fails to permit Lender to inspect the Property upon reasonable advance notice; 

  

	 	(d)	Failure to Observe Covenants. If Borrower or any Guarantor fails to perform or observe any term, covenant, warranty or agreement contained in this
Agreement or in the other Loan Documents, excluding however the covenant contained in the first sentence of Section 5.17(a), and such failure shall continue for a period of thirty (30) days after written notice of such failure has
been given to Borrower or Guarantor, as applicable, by Lender; provided, however, if such default is not in the payment of any sum due to Lender hereunder, or was not the subject of an Event of Default for which notice was previously provided, and
provided Borrower or Guarantor, as applicable, is diligently pursuing the cure of such default, then Borrower or Guarantor, as applicable, shall have an additional sixty (60) days within which to cure such default prior to Lender exercising any
right or remedy available hereunder, at law or in equity; 

  
 12 

	 	(e)	Defaults under Loan Documents. If an Event of Default shall occur under the Note or any other Loan Document and shall not be cured within any
applicable grace period, and if an Event of Default shall occur under any Loan Document (as defined in the Loan Agreement dated as of July 12, 2011 by and between BCL Eclipse, LLC and Comstock Potomac Yard, L.C.); 

 

	 	(f)	Breach of Representation. Discovery that any representation or warranty made or deemed made by Borrower or any Guarantor in this Agreement or in
any other Loan Document, or 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 Borrower or any Guarantor
or any officer, agent, employee or director of Borrower or any Guarantor, was materially untrue when made or deemed made; 

  

	 	(g)	Voluntary Bankruptcy. If Borrower or any 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 Borrower or any Guarantor or any substantial part of the property of Borrower or any Guarantor, or commences any proceeding relating to Borrower or any 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
Borrower or any Guarantor seeking any reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar relief under any present or future statute, 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 Borrower or Guarantor, of any trustee, receiver or liquidator of any Borrower or all of any substantial part of the properties of Borrower or any Guarantor,
the appointment shall not have been vacated; 

  

	 	(i)	Cross-Default. If, as a result of default, any present or future obligations of Borrower or any Guarantor to Lender or any other creditor 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 Borrower or any Guarantor;

  

	 	(k)	Judgment. If a judgment, attachment, garnishment or other process is entered against 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 against any Guarantor that would materially affect such
Guarantor’s ability to perform its obligations under the Loan Documents, and such judgment, attachment, garnishment or other process 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); 

  

	 	(l)	Dissolution. The dissolution, liquidation or termination of existence of Borrower or any Guarantor; or 

 

	 	(m)	Change in Management/Control. A change in the management of or controlling interest in Borrower or any Guarantor without the prior written consent
of Lender. 

  
 13 

 6.2 Remedies. Upon the occurrence of an Event of Default (a) Lender, at
its option, by written notice to Borrower, may declare all Indebtedness to 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) Lender may exercise all rights and remedies available to it under the Loan Documents and applicable law. Borrower agrees to pay all
costs and expenses incurred by Lender in enforcing any obligation under this Agreement or the other Loan Documents, including, without limitation, attorneys’ fees. No failure or delay by 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. 

SECTION SEVEN 
 INDEMNIFICATION 
 Borrower and Guarantors jointly and severally indemnify and hold harmless
Lender, its affiliates, and each of their officers, directors, employees, agents, advisors and representatives (each, an “Indemnified Party”) from and against any and all claims, damages, losses, liabilities and expenses (including,
without limitation, reasonable fees and disbursements of counsel) that may be incurred by or asserted or awarded against any Indemnified Party (including, without limitation, in connection with any investigation, litigation or proceeding or the
preparation of a defense in connection therewith), arising out of or in connection with or by reason of the Loan contemplated hereby (including, without limitation, arising out of or in connection with the litigation styled Board of Directors of
the Unit Owners Association of Penderbrook Square, A Condominium and The Unit Owners Association of Penderbrook Square, A Condominium v. Comstock Penderbrook, L.C. filed in Fairfax County Circuit Court, Virginia (Case No. C2010-16708) and the
litigation styled Network Multi-Family Security Corporation v. Comstock Penderbrook, L.C. filed in Fairfax county Circuit Court, Virginia (Case No. 2011-01784)), except to the extent arising from an Indemnified Party’s gross
negligence or willful misconduct. In the case of an investigation, litigation or other proceeding to which the indemnity in this Section 7 applies, such indemnity shall be effective whether or not such investigation, litigation or proceeding is
brought by Borrower or any Guarantor, any of their directors, security holders or creditors, an Indemnified Party or any other person, or an Indemnified Party is otherwise a party thereto. No Indemnified Party will have any liability (whether direct
or indirect, in contract, tort or otherwise) to Borrower or any Guarantor, any of their affiliates, security holders or creditors for or in connection with the transactions contemplated hereby, except for direct damages (as opposed to special,
indirect, consequential or punitive damages including, without limitation, any loss of profits, business or anticipated savings) determined in a final non-appealable judgment by a court of competent jurisdiction to have resulted from such
Indemnified Party’s gross negligence or willful misconduct. 
 SECTION EIGHT 

MISCELLANEOUS 
 8.1 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 other 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 is 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. 

  
 14 

 8.2 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 Lender, to: 

BCL Penderbrook, LLC 
 c/o SunBridge Manager, LLC 
 5425 Wisconsin Avenue, Suite 701 

Chevy Chase, Maryland 20815 
 Attention: Timothy B. Peterson 
 with a copy to: 

Arent Fox LLP 

1050 Connecticut Avenue NW 
 Washington, DC 20036 
 Attention: Jay L. Halpern, Esq. 

If to Borrower, to: 
 Comstock Penderbrook, L.C. 
 c/o Comstock Homebuilding Companies, Inc. 

11465 Sunset Hills Road, 4th Floor 
 Reston, VA 20190 
 Attention: Christopher Clemente, CEO 

with a copy to: 

Comstock Homebuilding Companies, Inc. 
 11465 Sunset Hills Road, 4th Floor 
 Reston, VA 20190 

Attention: Jubal Thompson, General Counsel 
 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, certified and return receipt requested. Any party may change such party’s address by notifying the other party of the new address in any manner
permitted by this Section 8.2. 
 8.3 Successors and Assigns. This Agreement will be binding upon and inure
to the benefit of Lender and Borrower and their respective successors, assigns, personal representatives, executors and administrators, provided that Borrower may not assign or transfer its rights under this Agreement. 

8.4 Entire Agreement. Except for the other Loan Documents expressly referred to in this Agreement, this Agreement
represents the entire agreement between Lender and Borrower on the subject matter hereof, supersedes all prior commitments, and may be modified only by an agreement in writing. 

8.5 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 Borrower under this Agreement and the other
Loan Documents are fully discharged. 

  
 15 

 8.6 Governing Law. This Agreement will be governed by and construed in
accordance with the laws of the Commonwealth of Virginia, without reference to conflict of laws principles. 
 8.7
Headings. Section headings are for convenience of reference only and shall not affect the interpretation of this Agreement. 
 8.8 Participations. Lender shall have the right to sell all or any part of its rights under the Loan Documents, and Borrower authorizes Lender to disclose to any prospective participant in
the Loan any and all financial and other information in Lender’s possession concerning Borrower or the collateral. 

8.9 Third Party Beneficiary. The parties do not intend the benefits of this Agreement or any other Loan Document to inure
to any third party. 
 8.10 Waiver of Jury Trial. TO THE FULLEST EXTENT PERMITTED BY LAW, LENDER AND 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 OTHER LOAN DOCUMENT. 

8.11 Waiver. The rights of 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 Lender
to give any subsequent waivers. 
 8.12 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. 
 8.13 No Setoffs. With respect to a monetary
default claimed by Lender under the Loan Documents, no setoff, claim, counterclaim, reduction or diminution of any obligation or defense of any kind or nature that Borrower has or may have against Lender (other than the defenses of payment and
Lender’s gross negligence or willful misconduct) shall be available against Lender in any action, suit or proceeding brought by Lender to enforce this Agreement or any other Loan Document. The foregoing shall not be construed as a waiver by
Borrower of any such rights or claims against Lender, but any recovery upon any such rights or claims shall be had from Lender separately, it being the intent of this Agreement and the other Loan Documents that Borrower shall be obligated to pay,
absolutely and unconditionally, all amounts due under this Agreement and the other Loan Documents. 
 8.14
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 complete in and of itself, and any one of which may be
introduced in evidence or used for any other purpose without the production of the other counterparts thereof. 
 8.15
Consent to Jurisdiction. Borrower and each Guarantor irrevocably submit to jurisdiction of any state or federal court sitting in the Commonwealth of Virginia over any suit, action, or proceeding arising out of or relating to this Loan
Agreement, the Note or any other Loan Documents. Borrower and each Guarantor irrevocably waive, to the fullest extent permitted by law, any objection that they 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 laws. 

  
 16 

 IN WITNESS WHEREOF, Borrower and 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. Guarantors join 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 Guarantors. 
  

					
	BORROWER:
	
	 COMSTOCK PENDERBROOK, L.C.,
 a Virginia limited liability company

		
	By:	 	 Comstock Homebuilding Companies, Inc.,
 a Delaware corporation,
 its Manager

			
		 	By:	 	  

		 		 	Christopher Clemente.
		 		 	Chief Executive Officer

  

							
	LENDER:
	
	BCL PENDERBROOK, LLC,
	a Delaware limited liability company
		
	By:	 	BridgeCom Loans, LLC,
		 	a Delaware limited liability company,
		 	its Manager
			
		 	By:	 	 SunBridge Manager, LLC,
 a Delaware limited liability company,
 its Managing Member

				
		 		 	By:	 	  

		 		 		 	Charles A. Ledsinger, Jr.
		 		 		 	President

 [signatures continue on following page] 

  
 17 

 
			
	ACKNOWLEDGED AND AGREED:
	
	GUARANTORS:
	
	 COMSTOCK HOMEBUILDING COMPANIES, INC.,

a Delaware corporation

		
	By:	 	  

		 	Christopher Clemente.
		 	Chief Executive Officer

  

					
	COMSTOCK EMERALD FARM, L.C.,
	 a Virginia limited liability company

		
	By:	 	Comstock Homebuilding Companies, Inc.,
		 	a Delaware corporation,
		 	its Manager
			
		 	By:	 	  

		 		 	Christopher Clemente.
		 		 	Chief Executive Officer

  

					
	COMSTOCK POTOMAC YARD, L.C.,
	a Virginia limited liability company
		
	By:	 	Comstock Homebuilding Companies, Inc.,
		 	a Delaware corporation,
		 	its Manager
			
		 	By:	 	  

		 		 	Christopher Clemente.
		 		 	Chief Executive Officer

  
 18 

 EXHIBIT A 

LEGAL DESCRIPTION OF PROPERTY 
 See attached. 

  
 Exhibit A

 SCHEDULE 4.14 

EXISTING DEBT 
  

									
	 	  	Lender	  	Balance as of
08/31/11	 	  	Recourse
		  	Bank of America	  	$	3,751,621	  	  	Unsecured
	 *
	  	Cardinal Bank	  	$	9,740,151	  	  	Secured
		  	Cornerstone (Haven Trust)	  	$	400,000	  	  	Unsecured
		  	Branch Banking & Trust	  	$	263,362	  	  	Secured
		  	Wachovia	  	$	132,488	  	  	Unsecured
		  	Seller – Emerald Farm	  	$	100,000	  	  	Unsecured
		  	Fifth Third	  	$	25,000	  	  	Secured
	 *
	  	BCL Eclipse	  	$	8,321,051	  	  	Secured
		  		  	  
	  
	 	  	
				
	 **
	  	Due to affiliates – Stonehenge	  	$	5,008,477	  	  	Unsecured
		  		  	  
	  
	 	  	
		  	Total	  	$	27,742,150	  	  	
		  		  	  
	  
	 	  	

  

	*	Guaranty obligation of Comstock 

	**	Subject to a forbearance agreement 

  
 Schedule 4.14

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