Document:

Severance and Change in Control Agreement - Caroline M. Loewy

 Exhibit 10.31 
 SEVERANCE AND CHANGE IN CONTROL AGREEMENT 
 THIS SEVERANCE AND CHANGE IN CONTROL
AGREEMENT (“Agreement”) dated as of November 28, 2008 (the “Effective Date”) is entered into by and between Caroline Loewy, Chief Financial Officer (“Executive”) and Corcept
Therapeutics Incorporated, a Delaware corporation (the “Company”). 
 WITNESSETH: 
 WHEREAS, Executive is a senior executive of the Company and has made and is expected to continue to make major contributions to the short and long term
profitability, growth and financial strength of the Company; 
 WHEREAS, the Company recognizes that, as is the case for most publicly held
companies, the possibility of a Change in Control (as defined below) exists; 
 WHEREAS, the Company desires to assure itself of both present
and future continuity of management; 
 WHEREAS, the Company wishes to ensure that Executive is not practically disabled from discharging his
duties in respect of a proposed or actual transaction involving a Change in Control; and 
 WHEREAS, the Company desires to provide
additional inducement for Executive to continue to remain in the employ of the Company. 
 NOW, THEREFORE, in exchange for good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the Company and Executive agree as follows: 
 1. Certain
Defined Terms. In addition to terms defined elsewhere herein, the following terms have the following meanings when used in this Agreement with initial capital letters: 
 (a) “Board” shall mean the Board of Directors of the Company. 
 (b)
“Cause” shall mean (i) Executive’s gross negligence or willful misconduct in the performance of his duties to the Company where such gross negligence or willful misconduct has resulted or is likely to result in material
damage to the Company or its subsidiaries; (ii) Executive’s willful and habitual neglect of his or her duties of consulting or employment; (iii) Executive’s commission of any act of fraud with respect to the Company;
(iv) Executive’s conviction of or plea of guilty or nolo contendere to felony criminal conduct or any crime involving moral turpitude; or (v) Executive’s violation of any noncompetition or confidentiality agreement that
Executive has entered into with the Company. 
 (c) The term “Change in Control” shall mean: (i) the liquidation,
dissolution or winding up of the Company; (ii) any consolidation or merger of the Company with or into any other corporation or other entity or person, or any other corporate reorganization in which the Company’s stockholders immediately
prior to such transaction do not hold more than fifty 

 
percent (50%) of the voting power of the surviving or acquiring entity (or its parent) immediately following such transaction (taking into account only
voting power resulting from stock held by such stockholders prior to such transaction); (iii) any transaction or series of related transactions to which the Company is a party in which in excess of fifty percent (50%) of the Company’s
voting power outstanding before such transaction is transferred or (iv) a sale, conveyance or other disposition of all or substantially all of the assets of the Company (including without limitation a license of all or substantially all of the
Company’s intellectual property that is either exclusive or otherwise structured in a manner that constitutes a license of all or substantially all of the assets of the Company); provided that a Change in Control shall not include
(A) a merger or consolidation with a wholly-owned subsidiary of the Company, (B) a merger effected exclusively for the purpose of changing the domicile of the Company or (C) any transaction or series of related transactions
principally for bona fide equity financing purposes. 
 (d) “Good Reason” shall mean any of the following events which
Executive provides written notice to the Company of within 90 days of such event having occurred and which is not cured by the Company within 30 days after such written notice thereof is provided to the Company by Executive: (i) any reduction
of Executive’s base salary or target annual bonus; (ii) any involuntary relocation of Executive’s principal workplace to a location more than 35 miles in any direction from Executive’s current principal workplace, (iii) a
substantial and material adverse change, without Executive’s written consent, in Executive’s title, authority, responsibility or duties; or (iv) any material breach by the Company of any provision of this Agreement or any other
employment agreement, after written notice delivered to the Company of such breach and the Company’s failure to cure such breach; provided, however, in the context of a Change in Control, Executive shall not have Good Reason to resign in
connection with a reorganization of the Company in which the executive would retain substantially similar title, authority, duties, base pay and bonus but might have greater or lesser reporting responsibilities. In order to constitute a termination
of employment for Good Reason, Executive’s employment must be terminated no later than 180 days following the initial occurrence of any events set forth above. 
 2. Terminations Without Cause or for Good Reason. If Executive’s employment shall terminate involuntarily without Cause or for Good Reason, the Company shall provide Executive with severance payments and
benefits pursuant to this Section 2. 
 (a) Terminations Not in Connection with a Change In Control. If Executive’s
employment shall terminate involuntarily without Cause or for Good Reason, prior to a Change in Control or more than eighteen (18) months following a Change in Control, the Company shall provide Executive with the following severance payments
and benefits in lieu of any severance benefits to which the Executive may otherwise be entitled to under any severance plan or program maintained by the Company: 
 (i) Severance Payments: Pay to Executive an amount equal to twelve (12) months then current base salary, payable in
substantially equal installments in accordance with the Company’s customary payroll practices and procedures. The continuation of your base salary shall be paid beginning on the sixtieth (60th) day following the date of termination, all
payments deferred pursuant to this sentence shall be paid in a lump sum to Executive and any remaining payments due under this paragraph shall be paid as otherwise provided herein. 
  

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 (ii) Continued Benefits. If Executive elects to continue his health insurance
coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”) following such termination, then the Company shall pay Executive’s monthly COBRA premium for continued health insurance coverage
for Executive and Executive’s eligible dependents until the earlier of (i) twelve (12) months following the termination date, or (ii) the date upon which Executive and his eligible dependents become eligible for comparable
coverage under a group health insurance plan maintained by subsequent employer. 
 (b) Terminations in Connection with a Change In
Control. If Executive’s employment shall terminate involuntarily without Cause or for Good Reason, within eighteen (18) months following a Change in Control, the Company shall provide Executive with the following severance payments and
benefits in lieu of any severance benefits to which the Executive may otherwise be entitled to under any severance plan or program maintained by the Company: 
 (i) Severance Payments: Pay to Executive an amount equal to twelve (12) months then current base salary, payable in a lump sum
on the sixtieth (60th) day following the termination of employment. 
 (ii) Continued Benefits. If Executive
elects to continue his health insurance coverage under COBRA following such termination, then the Company shall pay Executive’s monthly COBRA premium for continued health insurance coverage for Executive and Executive’s eligible dependents
until the earlier of (i) twelve (12) months following the termination date, or (ii) the date upon which Executive and his eligible dependents become eligible for comparable coverage under a group health insurance plan maintained by
subsequent employer. 
 (iii) Equity Awards. Notwithstanding any provision to the contrary in any equity award
agreement or equity compensation plan, the Company shall cause all outstanding equity awards then held by Executive (including, without limitation, stock options, stock appreciation rights, phantom shares, restricted stock or similar awards) to
become fully vested and, if applicable, exercisable with respect to all the shares subject thereto effective immediately prior to the date of termination. In all other respects, such awards will continue to be subject to the terms and conditions of
the plans, if any, under which they were granted and any applicable agreements between the Company and Executive. 
 (c) Notwithstanding
anything to the contrary in this Section 2, in the event that the Company, or its successor, requests Executive to continue to serve in the same position following a Change in Control for a six (6)-month (or shorter) transition period
(“Transition Period”), Executive shall not have Good Reason to resign pursuant to Section 1(d)(iii) during such Transition Period regardless if Executive’s title, authority, responsibility or duties have been materially
reduced; provided that during such Transition Period Executive continues to be paid the same salary and be provided with the same bonus opportunity, if any, as in effect immediately prior to such Change in Control and Executive’s principal
workplace is not relocated more than 35 miles from its location immediately prior to such Change in Control. Following the Transition Period, Executive may resign for Good Reason pursuant to Section 1(d)(iii) and be entitled to the benefits set
forth in Section 2(b). 
  

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 3. Conditions to Receipt of Severance. 
 (a) Separation Agreement and Release of Claims. The receipt of any severance pursuant to Section 2 will be subject to Executive signing and
not revoking a separation agreement and release of claims in a form reasonably acceptable to the Company within sixty (60) days following Executive’s termination of employment. No severance pursuant to Section 2 will be paid or
provided until the separation agreement and release of claims becomes effective. 
 (b) Section 409A. Notwithstanding anything
contained in this Agreement to the contrary, to the maximum extent permitted by applicable law, amounts payable to Executive pursuant to Section 2 shall be made in reliance upon Treas. Reg. Section 1.409A-1(b)(9) (Separation Pay Plans) or
Treas. Reg. Section 1.409A-1(b)(4) (Short-Term Deferrals). For this purpose each installment or monthly payment to which Executive is entitled under Section 2 shall be considered a separate and distinct payment. In addition, (i) no
amount deemed deferred compensation subject to Section 409A shall be payable pursuant to Section 2 unless the Executive’s termination of employment constitutes a “separation from service” within the meaning of Treas. Reg.
Section 1.409A-1(h) and (ii) if the Executive is deemed at the time of his separation from service to be a “specified employee” for purposes of Section 409A(a)(2)(B)(i) of the Code, then to the extent delayed commencement of
any portion of the termination benefits to which Executive is entitled under this Agreement is required in order to avoid a prohibited distribution under Section 409A(a)(2)(B)(i) of the Code, such portion of Executive’s termination
benefits shall not be provided to Executive prior to the earlier of (A) the expiration of the six-month period measured from the date of the Executive’s “separation from service” with the Company (as such term is defined in the
Treasury Regulations issued under Section 409A of the Code) or (B) the date of Executive’s death. Upon the earlier of such dates, all payments deferred pursuant to this Section 3(b) shall be paid in a lump sum to Executive, and
any remaining payments due under the Agreement shall be paid as otherwise provided herein. The determination of whether Executive is a “specified employee” for purposes of Section 409A(a)(2)(B)(i) of the Code as of the time of his
separation from service shall be made by the Company in accordance with the terms of Section 409A of the Code and applicable guidance thereunder (including without limitation Treas. Reg. Section 1.409A-1(i) and any successor provision
thereto). The reimbursement of any expense under this Agreement shall be made no later than December 31 of the year following the year in which the expense was incurred. The amount of expenses reimbursed in one year shall not affect the amount
eligible for reimbursement in any subsequent year. 
 4. Successors and Binding Agreement. The Company will require any successor
(whether direct or indirect, by purchase, merger, consolidation, reorganization or otherwise, including, without limitation, any successor due to a Change in Control) to the business or assets of the Company, by agreement in form and substance
reasonably satisfactory to Executive, expressly to assume and agree to perform this Agreement in the same manner and to the same extent the Company would be required to perform if no such succession had taken place. This Agreement will be binding
upon and inure to the benefit of the Company and any successor to the Company, including, without limitation, any persons directly or indirectly acquiring the business or assets of the Company in a transaction constituting a Change in Control (and
such successor shall thereafter be deemed the “Company” for the purpose of this Agreement), but will not otherwise be assignable, transferable or delegable by the Company. 
  

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 (b) This Agreement will inure to the benefit of and be enforceable by Executive’s personal or legal
representatives, executors, administrators, successors, heirs, distributees and legatees. 
 (c) This Agreement is personal in nature and
neither of the parties hereto shall, without the consent of the other, assign, transfer or delegate this Agreement or any rights or obligations hereunder except as expressly provided in Sections 4(a) and 4(b). Without limiting the generality or
effect of the foregoing, Executive’s right to receive payments hereunder will not be assignable, transferable or delegable, whether by pledge, creation of a security interest, or otherwise, other than by a transfer by Executive’s will or
by the laws of descent and distribution and, in the event of any attempted assignment or transfer contrary to this Section 4(c), the Company shall have no liability to pay any amount so attempted to be assigned, transferred or delegated.

 5. Amendment or Termination of Agreement. This Agreement may be changed or terminated only upon the mutual written consent
of the Company and Executive. The written consent of the Company to a change or termination of this Agreement must be signed by an executive officer of the Company after such change or termination has been approved by the Board. 
 6. Notices. For all purposes of this Agreement, all communications, including without limitation notices, consents, requests or approvals,
required or permitted to be given hereunder will be in writing and will be deemed to have been duly given when hand delivered or dispatched by electronic facsimile transmission (with receipt thereof orally confirmed), or five business days after
having been mailed by United States registered or certified mail, return receipt requested, postage prepaid, or three business days after having been sent by a nationally recognized overnight courier service such as FedEx, UPS, or DHL, addressed to
the Company (to the attention of the Secretary of the Company) at its principal executive office and to Executive at his principal residence, or to such other address as any party may have furnished to the other in writing and in accordance
herewith, except that notices of changes of address shall be effective only upon receipt. 
 7. Validity. If any provision of this
Agreement or the application of any provision hereof to any person or circumstances is held invalid, unenforceable or otherwise illegal, the remainder of this Agreement and the application of such provision to any other person or circumstances will
not be affected, and the provision so held to be invalid, unenforceable or otherwise illegal will be reformed to the extent (and only to the extent) necessary to make it enforceable, valid or legal. 
 8. Governing Law; Jurisdiction. The laws of the state of California shall govern the interpretation, validity and performance of the terms of this
Agreement, regardless of the law that might be applied under principles of conflicts of law. Any suit, action or proceeding against Executive, with respect to this Agreement, or any judgment entered by any court in respect of any of such, may be
brought in any court of competent jurisdiction in the State of California, and Executive hereby submits to the jurisdiction of such courts for the purpose of any such suit, action, proceeding or judgment. 
  

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 9. Miscellaneous. No provision of this Agreement may be modified, waived or discharged unless such
waiver, modification or discharge is agreed to in writing signed by Executive and the Company. No waiver by either party hereto at any time of any breach by the other party hereto or compliance with any condition or provision of this Agreement to be
performed by such other party will be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time. This Agreement constitutes the entire agreement of the parties with respect to the subject matter
hereof and supersedes any and all prior agreements of the parties with respect to such subject matter. No agreements or representations, oral or otherwise, expressed or implied with respect to the subject matter hereof have been made by either party
which are not set forth expressly in this Agreement. References to Sections are to references to Sections of this Agreement. 
 10.
Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original but all of which together will constitute one and the same agreement. 
 11. Interpretation. The parties acknowledge and agree that, to the extent applicable, this Agreement shall be interpreted in accordance
with, and the parties agree to use their best efforts to achieve timely compliance with, Section 409A of the Code, and the Department of Treasury Regulations and other interpretive guidance issued thereunder, including, without limitation, any
such regulations or other guidance that may be issued after the Effective Date. Notwithstanding any provision of this Agreement to the contrary, in the event that the Company determines that any amounts payable hereunder would otherwise be taxable
to Executive under Section 409A, the Company may adopt such limited amendments to this Agreement and appropriate policies and procedures, including amendments and policies with retroactive effect, that the Company reasonably determines are
necessary or appropriate to comply with the requirements of Section 409A and thereby avoid the application of taxes under such Section. 
 [signature page follows] 
  

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 IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed and delivered as of the
date first above written. 
  

	
	CORCEPT THERAPEUTICS INCORPORATED
	
	/s/ Joseph K. Belanoff, MD
	Chief Executive Officer

  

	
	
	/s/ Caroline Loewy
	Caroline LoewyExhibit 10.63

 Exhibit 10.63 
 Execution Copy 
 FORBEARANCE AND CONDITIONAL RELEASE AGREEMENT 
 THIS FORBEARANCE AND CONDITIONAL RELEASE AGREEMENT (this “Agreement”) is entered into as of November     ,
2008 (the “Effective Date”), by and among HIGHLAND AVENUE PROPERTIES, LLC, a Georgia limited liability company (“Highland Avenue”) and COMSTOCK HOMES OF ATLANTA, LLC, a Georgia limited liability
company, successor by merger to Parker-Chandler Homes, Inc., a Georgia limited liability company (“Comstock Atlanta”), each a “Borrower” and collectively the “Borrowers”; COMSTOCK HOMEBUILDING
COMPANIES, INC., a Delaware corporation (“Guarantor”), and BANK OF AMERICA, N.A., a national banking association (“Lender”). 
 R E C I T A L S: 
 A. Highland Avenue is indebted to Lender with respect to a loan in the original
stated principal amount of $4,851,235.00 (the “Highland Avenue Loan”), which is (i) evidenced by that certain Note dated May 2, 2005, payable by Highland Avenue Properties, LLC to the order of Lender in said principal
amount, (ii) secured by that certain Deed to Secure Debt and Security Agreement dated May 2, 2005 and recorded on May 4, 2005 in Deed Book 39924, Page 32, Fulton County, Georgia records, encumbering Land Lots 18 & 19 of the
14th District, Fulton County, Georgia (said property containing approximately 4.86 acres), and (iii) unconditionally guaranteed by Guarantor pursuant to that certain Amended and Restated Guaranty Agreement dated December 28, 2006.

 B. Comstock Atlanta is indebted to Lender with respect to a loan in the original stated principal amount of $7,500,000.00 (the
“Comstock Atlanta Loan”) which is: (i) evidenced by that certain Real Estate Note dated January 16, 2004, payable by Parker Chandler Homes South Carolina, LLC, as predecessor in interest to Comstock Homes of Atlanta, LLC,
to the order of Lender in said principal amount; (ii) secured in Jackson County, Georgia, by (a) that certain Deed to Secure Debt and Security Agreement dated as of January 16, 2004, originally recorded in the Superior Court of
Jackson County, Georgia on February 4, 2004 in Deed Book 33I Page 369, (b) that certain Deed to Secure Debt and Security Agreement dated as of January 16, 2004, originally recorded in the Superior Court of Jackson County, Georgia on
March 4, 2004 in Deed Book 33I, Page 374, (c) that certain Deed to Secure Debt and Security Agreement dated as of June 23, 2005, originally recorded in the Superior Court of Jackson County, Georgia on July 22, 2005 in Deed Book
39U Page 783, (d) that certain Deed to Secure Debt and Security Agreement dated as of November 14, 2005, originally recorded in the Superior Court of Jackson County, Georgia on November 28, 2005 in Deed Book 41P, Page 62, and
(e) that certain Deed to Secure Debt and Security Agreement dated as of September 29, 2006, originally recorded in the Superior Court of Jackson County, Georgia on October 4, 2006 in Deed Book 45U, Page 57 (collectively, as the same
have been or may be amended, renewed, supplemented or restated from time to time, and as the same, as amended, have been subsequently recorded in the land records of Jackson County, the “Jackson Deed to Secure Debt”), encumbering
Land Lots 44, 45, 46, 47, 48, 49, 50, 58, 59 and 67, Brentwood Estates, Jackson County, Georgia; (iii) secured in Paulding County, Georgia by (a) that certain Deed to Secure Debt and Security Agreement dated as of April 2, 2004 and
originally recorded in the land records of Paulding County, Georgia on April 16, 2004 in Deed Book 1623 Page 0891, (b) that certain Deed to Secure Debt and Security Agreement dated as of October 29, 2004, and originally recorded in
Paulding County, Georgia on November 10, 2004 in Deed Book 1764 Page 40, and (c) that certain Deed to Secure Debt and Security Agreement dated as of 

  

  
 Forbearance Agreement-Signature Page 

 
February 24, 2005, and originally recorded in Paulding County, Georgia on March 22, 2005 in Deed Book 1847, Page 420 (collectively, as the same
have been or may be amended, renewed, supplemented or restated from time to time, and as the same, as amended, have been subsequently recorded in the land records of Paulding County, the “Paulding Deed to Secure Debt”), encumbering
land lots 23, 24, 25, 48, 49, 158, 159, 160, 161, 165, 170, 172, 176, 177, 178, 179, 182, 184, 190, 191, 194, 195, 196, 197, 198, 199, 202, 205, 209, 219, 220, 221, 222, 223, 227, 228, 237 and 257 phase 3, Senator’s Ridge, Paulding County,
Georgia; and (iv) unconditionally guaranteed by Guarantor pursuant to the Amended and Restated Guaranty Agreement dated December 28, 2006 (the “Guaranty”). 
 The Highland Avenue Loan and the Comstock Atlanta Loan are collectively referred to hereinafter as the “Loans”. The Notes evidencing the
Loans, as more particularly described above, are collectively referred to hereinafter as the “Notes” and the Deeds to Secure Debt securing the Loans, as more particularly described above, are collectively referred to hereinafter as
the “Security Deeds”. The Notes and the Security Deeds are individually referred to by reference to the related Loan (e.g., the Note evidencing the Highland Avenue Loan is referred to hereinafter as the “Highland
Avenue Note” and the Security Deed securing the Comstock Atlanta Loan is referred to hereinafter as the “Comstock Atlanta Security Deed”). The Notes, the Security Deeds, and the Guaranty, as amended, if any, and all other
ancillary documents evidencing the Loans are collectively referred to hereinafter as the “Loan Documents”, and Borrowers and Guarantor are collectively referred to hereinafter as “Obligors”. 
 C. Obligors are no longer willing to comply with their respective obligations under the Loan Documents and have offered to cooperate with Lender in the
foreclosure of the Security Deeds. Obligors have requested that Lender (i) forbear from the exercise of its rights and remedies against Guarantor under the Guaranty pending the foreclosure of the Security Deeds, and (ii) release Obligors
from their obligations under the Loan Documents (other than those obligations set forth in that certain Environmental Indemnification and Release Agreement to be executed as of the date hereof, hereinafter referred to as the “Environmental
Indemnity Agreement”, in form attached hereto as Exhibit A) at such time as the foreclosure of the Security Deeds has been completed. Lender is willing to grant Obligors’ and Guarantor’s request, provided that the Obligors
cooperate with Lender in the foreclosure of the Security Deeds, and provided that Obligors do not commit any Forbearance Termination Events as defined and enumerated herein. The parties have entered into this Agreement to evidence their agreement
regarding the foregoing matters. 
 NOW, THEREFORE, for and in consideration of the foregoing Recitals, the covenants herein
contained, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by each of the parties hereto, the parties hereto agree as follows: 
 1. Confirmation of Recitals and Other Matters. As a material inducement for Lender to enter into this Agreement, Obligors agree with Lender, and
represent and warrant to Lender, that (i) the statements set forth in the recitals to this Agreement are true and correct and contain no material omission of fact, (ii) the Loans are in default and all obligations under the Loan Documents
are fully matured and immediately due and payable in full without offset, defense, or reduction, (iii) Obligors have received or waived any notices to which they are entitled with respect to the existing defaults under the Loan, and
(iv) but for this Agreement, Lender, may, at its option and without further notice to or demand upon any Obligor or any other person, exercise and enforce any and all rights and remedies under the Security Deeds, the Guaranty, and the other
Loan Documents. 
  

  
 Forbearance Agreement-Signature Page 

 2. Forbearance Covenant. Notwithstanding the existing defaults under the Loans, but subject to the
terms and conditions stated in this Agreement, Lender agrees that it will not take any action or file any proceedings, whether under the Guaranty, at law, or in equity, to enforce the rights and remedies of Lender against Guarantor (the foregoing
covenant being hereinafter referred to as the “Forbearance Covenant”). The Forbearance Covenant will remain in effect until the occurrence of a Forbearance Termination Event (as defined below). Upon written notice of the occurrence
of a Forbearance Termination Event that is not cured by Obligors within fifteen days thereafter, Lender will have the right at any time and from time to time to exercise any and all rights and remedies available against Guarantor under the Guaranty
or Environmental Indemnity Agreement, at law or in equity, to the same extent as Lender would be entitled if the Forbearance Covenant had never been part of this Agreement. As used herein, the term “Forbearance Termination Event”
means the occurrence of one or more of the following events: 
 (a) If Lender determines that any acknowledgment,
representation or warranty made by any Obligor in this Agreement is untrue or inaccurate in any material respect; 
 (b) If
any Obligor breaches, defaults, repudiates, or fails to perform or observe any of that Obligor’s obligations or agreements stated in this Agreement; 
 (c) If any Obligor (or any person acting on behalf of any Obligor) commences, joins in, assists, cooperates in, or participates as an adverse party (except for compulsory legal process which requires testimony) in any
suit or other proceeding against Lender or any affiliate, officer, director, or employee of Lender, relating to the Loans, any Collateral for the Loans, or the business affairs of any Obligor; 
 (d) If any Obligor (or any person acting on behalf of any Obligor) breaches, defaults, repudiates, or fails to perform or observe any of
that Obligor’s obligations or agreements relating to environmental regulations or hazardous materials, as set forth and defined in the Environmental Indemnity Agreement; or 
 (e) If any Obligor (or any person acting on behalf of any Obligor) takes any action to prevent or hinder Lender’s carrying out and
completion of the foreclosure of the Security Deeds, including any Obligor (or any person acting on behalf of any Obligor) taking direct or indirect action, or permitting any action which would allow such Obligor to (i) file or consent to the
filing of any petition, either voluntary or involuntary, to take advantage of any applicable insolvency, bankruptcy, liquidation or reorganization statute, (ii) seek or consent to the appointment of a receiver, liquidator or any similar
official, or (iii) make an assignment for the benefit of creditors. 
 (f) If Obligors fail to pay in full on or before
December 1, 2008 all past due real property taxes pertaining to the Collateral (defined below) including, without limitation, past due real property taxes owing to Fulton County, Texas, Jackson County, Texas and Paulding County Texas.

 3. Foreclosure of Collateral. (a) Obligors acknowledge that Lender intends to commence (or has commenced) proceedings to
foreclose its security title, lien, and security interest in and to all real and personal property securing the Loans, as described in the Security 

  

  
 Forbearance Agreement-Signature Page 

 
Deeds and the other Loan Documents (collectively, the “Collateral”), in accordance with the provisions of the Loan Documents and applicable
law (the “Foreclosure Proceedings”) and shall use commercially reasonable efforts to pursue and complete the Foreclosure Proceedings in a timely manner. As of the date hereof, the Foreclosure Proceedings are scheduled to be held no
later than December 2, 2008, which date may change in accordance with applicable law. In consideration of the Forbearance Covenant, Obligors jointly and severally (i) ratify and affirm Lender’s security title, lien, and security
interest in and to the Collateral pursuant to the Loan Documents, (ii) acknowledge and agree that Obligors have received commercially reasonable, timely, and accurate notice of Lender’s intention to foreclose its security title, lien, and
security interest in the Collateral and that Lender has satisfied all requirements set forth in the Loan Documents relating to commencement of the Foreclosure Proceedings, (iii) covenant and agree to use commercially reasonable efforts to
cooperate with Lender in connection with the Foreclosure Proceedings, and (iv) covenant and agree that none of Obligors shall contest, oppose, delay, or otherwise interfere with the commencement and prosecution of the Foreclosure Proceedings
(or any foreclosure sale arising from the Foreclosure Proceedings). 
 (b) Obligors hereby consent to the judicial confirmation of the
Foreclosure Proceedings and waive any and all rights each party may possess at law or in equity to oppose or object to Lender’s judicial confirmation of the Foreclosure Proceedings. Obligors acknowledge receipt of copies of the notices of sale
in connection with the Foreclosure Proceedings taking place in Paulding, Jackson, and Fulton counties and agree that the information contained in the notices of sale is accurate and satisfies all statutory requirements. Furthermore, Obligors
acknowledge that the Paulding County notices of sale are being advertised in the Dallas New Era on November 6th, 13th, 20th and 27th, the Jackson County notices of sale are being advertised in the Jackson Herald on
November 5th, 12th, 19th and 26th, and the Fulton County notice of sale is being advertised in the Fulton County Daily Report on November 7th, 14th, 21st and 26th. 
 Obligors hereby confirm and agree to execute such documentation as may be required by Lender to submit to the court at any confirmation hearing as
evidence in support thereof, the following: (i) the purchase price of each of the properties securing the Loans at the Foreclosure Proceeding was equal to or greater than the true market value of that property as of the date of the Foreclosure
Proceeding in accordance with O.C.G.A. Section 44-14-161; (ii) Lender and Lender’s agents complied with all statutory requirements in conducting the Foreclosure Proceeding; and (iii) Subject to the provisions of Paragraph 7
hereof, Lender is entitled to the deficiency between the purchase price the properties actually brought at the Foreclosure Proceedings and the indebtedness owed under the Loans. Obligors acknowledge that a court may rely on the provisions of this
paragraph in determining whether to confirm the Foreclosure Proceedings. 
 4. Deliveries by Obligors. Obligors covenant to Lender
that within five (5) business days after each written request therefor (to the extent that any of such items are in the possession or direct control of Obligors, or to the extent that Obligors may request delivery of such items from any third
parties), Obligors will deliver or cause the following items relating to the Collateral to be delivered to Lender whether such request is made prior or subsequent to the date of this Agreement or the foreclosure of any of the Security Deeds:
(i) any certificates of insurance related to the Collateral; (ii) any certificates of occupancy, licenses, and other governmental permits related to the Collateral; (iii) any surveys, plats, drawings, engineering reports, maps, plans
and specifications, and other similar matters related to the Collateral; (iv) any tax assessments, notices, and statements related to the Collateral; (v) all books and records of the Borrowers pertaining to the Collateral; and
(vi) any keys necessary to obtain full access to the Collateral. 
  

  
 Forbearance Agreement-Signature Page 

 5. Contracts. Obligors represent and warrant to Lender that as of the date hereof to the actual
knowledge of Obligors after due inquiry and investigation, attached hereto as Schedule I is a true, complete, and correct listing of all material commitments, rental agreements, equipment leases, guaranties, leases, contracts, undertakings,
and arrangements entered into by any Obligor or anyone on behalf of any Obligor, whether written and oral, relating to the Collateral. Obligors further represent and warrant to Lender that Obligors have delivered to Lender copies of all documents
relating to such matters to the extent that any of such items are in the possession or direct control of Obligors. 
 6. Payables.
Obligors represent and warrant to Lender that as of the date hereof to the actual knowledge of Obligors after due inquiry and investigation, attached hereto as Schedule II is a true and correct listing of all lienable claims against the
Collateral and all other material payables owing in connection with the Collateral, including, without limitation, all trade payables, real and personal property taxes, employee wages (including accrued vacation and fringe benefits, if any), utility
charges, insurance premiums, lease payments, license, and franchise and royalty payments (hereafter collectively called the “Payables”) as of the dates therein stated. It is specifically understood that Lender has not and will not
agree to assume or incur any liability or responsibility with respect to the Payables or any other obligation of Obligors. 
 7. Release
of Guarantor and Obligors. Upon the earlier of (i) Lender completing the foreclosure of its security title, lien, and security interest in the Collateral, or (ii) February 15, 2008 and provided Obligors are not in default under
their respective obligations to Lender under this Agreement, Lender shall execute and deliver to Guarantor and Obligors a full release of Guarantor and each Obligor from all liabilities and obligations under the Loan Documents or otherwise with
respect to the Loans (the “Release(s)”). The form of Release shall be as set forth on Schedule III. The above notwithstanding, the forgoing provisions shall not terminate Guarantor’s and each Obligor’s liabilities and
obligations as set forth in the Environmental Indemnity Agreement, or as they pertain to any obligations and liabilities as set forth herein. 
 8. Release. Upon receipt of the Releases and in consideration of Lender’s entering into this Agreement and without any contingency, precondition, or condition subsequent, Obligors, for themselves and their respective
heirs, executors, successors and assigns, hereby jointly and severally fully and forever release, relinquish, discharge, settle and compromise any and all claims, cross-claims, counterclaims, causes, damages and actions of every kind and character,
and all suits, costs, damages, expenses, compensation and liabilities of every kind, character and description, whether direct or indirect, known or unknown, in law or in equity, which any of them has, had, may have, or will have against Lender,
and/or any of its affiliates, parents, directors, agents, representatives, officers, employees, attorneys, consultants, or contractors (collectively, the “Released Parties”) on account of, arising, or resulting from, or in any
manner incidental to, any and every thing or event occurring or failing to occur at any time in the past up to and including the Effective Date hereof, including, without limitation, any claims relating to the Loans, the Loan Documents, this
Agreement, any act and event relating to Lender’s administration of the Loans or the other Obligations, any other transaction contemplated by this Agreement, and any act and event relating to any Released Parties (collectively, the
“Claims”). In addition, Obligors jointly and severally covenant not to sue any of the Release Parties on account of any Claims. The above 

  

  
 Forbearance Agreement-Signature Page 

 
notwithstanding, the forgoing provisions shall not terminate Guarantor’s and each Obligor’s liabilities and obligations as set forth in the
Environmental Indemnity Agreement, and shall not release any Lender’s Claims as they pertain thereto. 
 9. Representations and
Warranties. In addition to all other representations and warranties set forth herein, Obligors represent, warrant, and covenant to and with Lender, which representations, warranties and covenants shall survive until the Obligations are
indefeasibly released or otherwise satisfied in full, that: 
 (a) Obligors have the full power and authority to enter into
this Agreement and to incur the obligations and consummate the transactions described herein and therein, all of which have been authorized by all proper and necessary corporate action where applicable. 
 (b) This Agreement constitutes the valid and legally binding obligation of Obligors enforceable in accordance with its terms and does not
violate, conflict with, or constitute any default under any law, government regulation, organizational documents, or any other agreement or instrument binding upon or applicable to Obligors. 
 (c) No approval, authorization or other action by, or filing with, any governmental official, board or authority is required in connection
with the execution and delivery of this Agreement, except such approvals and authorizations as have been received, such actions as have been taken, and such filings as have been made. 
 10. No Waiver by Lender. No course of dealing and no delay or failure of Lender to exercise any right, power, or privilege under any of the Loan
Documents will affect any other or future exercise of such right, power, or privilege. Any departure by Lender from the terms and conditions of the Loan Documents prior to the date of this Agreement will not limit or restrict Lender’s right to
require that Obligors strictly perform and observe the terms and conditions of this Agreement and the Loan Documents. 
 11. Effect of
Agreement; No Novation. Obligors acknowledge and agree that this Agreement is not intended to be, and shall not be deemed or construed to be, a novation or release of the Notes, the Obligations, or any of the other Loan Documents, and except as
expressly provided in this Agreement, this Agreement is not intended to be, and shall not be deemed or construed to be, a modification, amendment, or waiver of the Notes, the Obligations, or any of the other Loan Documents. 
 12. Entire Agreement. This Agreement is the entire agreement among the parties relating to the specific subject matter of this Agreement and
supersedes any prior agreements, commitments and understandings between the parties. 
 13. Full Knowledge. Obligors acknowledge
having read this Agreement and consulting with counsel (or having had the opportunity to consult with counsel) before executing this Agreement; that Obligors have relied upon their own judgment and that of their counsel in executing same and have
not relied on or been induced by any representation, statement or act by any other party referenced to herein which is not referred to in this Agreement; and that Obligors enters into this Agreement voluntarily, with full knowledge of its
significance. 
  

  
 Forbearance Agreement-Signature Page 

 14. Invalid Provision to Affect No Others. If, from any circumstances whatsoever, fulfillment of
any provision of this Agreement shall involve transcending the limit of validity presently prescribed by any applicable law, with regard to obligations of like character and amount, then ipso facto the obligation to be fulfilled shall be reduced to
the limit of such validity. Further, if any cause or provision herein contained operates or would prospectively operate to invalidate this Agreement, in whole or in part, then such clause or provision only shall be held for naught, as though not
herein contained, and the remainder of this Agreement shall remain operative and in full force and effect. 
 15. Counterparts; Electronic
Delivery. To facilitate execution, this Agreement may be executed in as many counterparts as may be convenient or required. It shall not be necessary that the signature of, or on behalf of, each party, or that the signature of all persons
required to bind any party, appear on each counterpart. All counterparts shall collectively constitute a single instrument. It shall not be necessary in making proof of this Agreement to produce or account for more than a single counterpart
containing the respective signatures of, or on behalf of, each of the parties thereto. Any signature to any counterpart may be detached from such counterpart without impairing the legal effect of the signatures thereon and thereafter attached to
another counterpart identical thereto except having attached to it additional signature pages. Delivery of an executed counterpart of this Agreement by telecopier or any other form of electronic transmission shall be equally as effective as delivery
of an original executed counterpart thereof. Any party delivering an executed counterpart of this Agreement by telecopier or other electronic means also shall deliver an original executed counterpart of such instrument, but the failure to deliver an
original executed counterpart shall not affect the validity, enforceability, and binding effect thereof. 
 16. Modifications. This
Agreement cannot be changed or terminated orally, is for the benefit of the parties hereto and their respective successors and assigns, and is binding upon the parties hereto in accordance with its terms. 
 17. Successors and Assigns. This Agreement shall bind and inure to the benefit of the parties hereto, including their respective successors and
assigns. 
 18. Time is of the Essence. Time is of the essence in the performance of this Agreement. 
 19. Governing Law; Venue. This Agreement shall be construed and enforced in accordance with the laws of the State of Georgia (without regard to
the conflict of laws rules in effect from time to time in the State of Georgia). 
 20. WAIVER OF JURY TRIAL. TO THE MAXIMUM
EXTENT PERMITTED BY APPLICABLE LAW, OBLIGORS AND LENDER HEREBY EXPRESSLY WAIVE ANY RIGHT THEY MAY HAVE TO A TRIAL BY JURY IN ANY LAWSUIT OR OTHER COURT ACTION RELATED TO THIS AGREEMENT, THE NOTE, THE OBLIGATIONS, AND THE OTHER LOAN DOCUMENTS, OR ANY
TRANSACTION CONTEMPLATED HEREBY OR THEREBY, INCLUDING, WITHOUT LIMITATION, IN RESPECT TO ANY CLAIM, COUNTERCLAIM, THIRD-PARTY CLAIM, DEFENSE, OR SET-OFF ASSERTED IN ANY SUCH LAWSUIT OR COURT ACTION. ANY SUCH LAWSUIT OR COURT ACTION SHALL BE TRIED
EXCLUSIVELY TO A COURT WITHOUT A JURY. OBLIGORS SPECIFICALLY ACKNOWLEDGE THAT THEIR EXECUTION OF THIS WAIVER OF JURY TRIAL IS A MATERIAL PORTION OF THE CONSIDERATION RECEIVED BY LENDER IN EXCHANGE FOR ITS ENTERING INTO THIS AGREEMENT.

  

  
 Forbearance Agreement-Signature Page 

 IN WITNESS WHEREOF, Obligors have executed this Agreement under seal as of the date first above
written. 
  

			
	Borrowers:
	
	 COMSTOCK HOMES OF ATLANTA, LLC,
 a
Georgia limited liability company

	
	By: Comstock Homebuilding Companies, Inc., its Manager
		
	By:	 	  

	Name:	 	  

	Title:	 	  

	
	 HIGHLAND AVENUE PROPERTIES, LLC,
 a
Georgia limited liability company

	
	By: Comstock Homebuilding Companies, Inc., its Manager
		
	By:	 	  

	Name:	 	  

	Title:	 	  

	
	Guarantor:
	
	COMSTOCK HOMEBUILDING COMPANIES, INC.
		
	By:	 	  

	Name:	 	  

	Title:	 	  

 [Signatures continue on the next page] 
  

  
 Forbearance Agreement-Signature Page 

 IN WITNESS WHEREOF, Lender has executed this Agreement under seal with the intention that this
Agreement shall be effective as of the date first above written. 
  

			
	Lender:
	
	 BANK OF AMERICA, N.A.,
 a national
banking association

		
	By:	 	  

	Name:	 	  

	Title:	 	  

  

  
 Forbearance Agreement-Signature Page 

 SCHEDULE I 
 List of Contracts 

 SCHEDULE II 
 List of Payables 
  

 SCHEDULE III 
 Form of Release 
  

 EXHIBIT A 
 Environmental Indemnity Agreement

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