Document:

EX-10.71

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

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

AGREEMENT 

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

SECTION ONE 

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

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

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

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

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

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

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

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

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

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

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

 

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

  

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

  

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

 

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

  

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

  

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

  

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

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

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

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

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

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

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

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

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

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

 

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

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

 

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

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

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

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

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

  

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

  

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

  
 10 

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

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

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

  
 11 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

  
 16 

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

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

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

  
 17 

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

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

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

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

  
 18 

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

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

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

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

  
 19 

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

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

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

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

  

	 	(b)	Liens securing the Indebtedness. 

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

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

  
 20 

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

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

  
 21 

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

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

  
 22 

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

SECTION NINE 

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

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

 If to the Lender, to: 
 EAGLEBANK 
 7815 Woodmont Avenue 

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

  
 23 

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

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

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

Reston, VA 20190 

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

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

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

  
 24 

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

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

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

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

  
 25 

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

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

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

 [SIGNATURES ON FOLLOWING PAGES] 

  
 26 

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

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

		 		 		 		 		 		 	Christopher D. Clemente
		 		 		 		 		 		 	Chief Executive Officer

 [SEAL] 

COMMONWEALTH OF VIRGINIA 
 COUNTY OF
                    , ss: 

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

									
		 		 		 	  

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

		 		 		 		 	Christopher D. Clemente
		 		 		 		 	Chief Executive Officer

  
 27 

 COMMONWEALTH OF VIRGINIA 
 COUNTY OF                     , ss: 

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

 

					
		 		 	  

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

  
 28 

							
		 		 	LENDER:
	Witness:	 		 		 	
		 		 	EAGLEBANK
			
	  
	 		 	
	Print Name:	 		 		 	
		 		 	By:	 	  

		 		 		 	Douglas Vigen
		 		 		 	Senior Vice President

 [SEAL] 

COMMONWEALTH OF VIRGINIA 
 COUNTY OF
                    , ss: 

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

					
		 		 	  

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

  
 29 

 EXHIBIT A 
 Legal Description of the Property 
 Tract 1: 

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

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

  
 30 

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

  
 31 

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

  
 32 

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

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

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

  
 33EX-10.72

 Exhibit 10.72 
 CONSTRUCTION LOAN AGREEMENT 
 (Revolving Line of Credit) 

THIS CONSTRUCTION LOAN AGREEMENT made as of the 27th day of September, 2012 by and between COMSTOCK EASTGATE, L.C., a limited liability company organized under the
laws of the Commonwealth of Virginia (the “Borrower”), and CARDINAL BANK, a bank chartered under the laws of the Commonwealth of Virginia (“Lender”). 

WHEREAS, Borrower intends to construct sixty-six (66) residential condominium units (individually, a “Unit” and
collectively, the “Units”) in a portion of the residential condominium project known as The Villas at Eastgate Condominium located in Loudoun County, Virginia. 
 WHEREAS, the Project will consist of up to eleven (11) distinct parcels of land (individually, a “Parcel” and collectively, the “Land”) on each of which the Borrower intends to
construct a single building (individually, a “Building” and collectively, the “Buildings”) containing six (6) Units (each Parcel together with the Building and Units to be constructed thereon are individually a
“Phase” and collectively the “Project”). 
 WHEREAS, the Borrower currently owns the Parcel known as Phase 3
more particularly described on “EXHIBIT A” attached hereto and by this reference made a part hereof (“Parcel 3”); and 
 WHEREAS, Lender has agreed to provide the Borrower with a revolving construction line of credit in the maximum principal amount of TWO MILLION FIVE HUNDRED THOUSAND and no/100 DOLLARS
($2,500,000.00) that can be outstanding at any one time, which amount is to be used in accordance with the terms hereof and is to be used by Borrower for the materials to be furnished and labor and services to be performed in connection with
the construction of the Units on the Land; and 
 WHEREAS, simultaneously with the execution and delivery hereof, Borrower has
executed that certain Credit Line Deed of Trust Note dated of even date herewith in the principal amount of $2,500,000.00 and that certain Credit Line Deed of Trust, Assignment and Security Agreement of even date herewith to secure the same.

 W I T N E S S E T H: 
 For and in consideration of these presents, and in further consideration of the mutual covenants and agreements herein set forth and of the sum of Ten Dollars ($10.00) lawful money of the United States of
America by each of the parties to the other paid, receipt of which is hereby acknowledged, the parties hereto do hereby covenant and agree as follows: 

  
 1 

 ARTICLE I 
 DEFINITIONS 
 1.0 Definitions. Borrower and Lender agree that,
unless the context otherwise specifies or requires, the following terms shall have the meanings herein specified, such definitions to be applicable equally to the singular and the plural forms of such terms and to all genders: 

Borrower - The party hereinabove designated as such, its successors and assigns. 

Commitment - The commitment letter dated June 22, 2012 from Lender to Borrower in connection with the Line of Credit, as the
same may be from time to time amended. 
 Completion Date - For each Unit, the date that is the earlier to occur of
(i) the date that is twelve (12) months after the date of the first advance of Line of Credit funds for the Unit, and (ii) the sale date under the Contract. 
 Consulting Engineer or Progress Inspector - Such person or firm as Lender may from time to time appoint or designate for purposes related to the inspection of the progress of the construction of
the Improvements, conformity of construction with the Plans and Specifications, and for such other purposes as to Lender may from time to time seem appropriate or as may be required by the terms of this Loan Agreement. 

Contract - An executed contract of sale for the sale of a Unit, and such Contract complies with all of the following conditions:

 (i) the Contract shall be accompanied by a minimum cash deposit of $5,000; 

(ii) the Contract shall not be subject to any contingencies, including the sale of the purchaser’s property; and the Contract shall
not be subject to cancellation by the purchaser without loss of the deposit, except for cause or as may be provided by applicable Virginia statute; 
 (iii) the purchaser under the Contract shall be pre-qualified by a reputable mortgage lender, who shall issue a pre-qualification letter which indicates that the purchaser will be approved after
appropriate verifications for the purchase money mortgage loan necessary to purchase such Unit. 
 Deed of Trust - That
certain Credit Line Deed of Trust, Assignment and Security Agreement made by Borrower to secure Lender, dated of even date herewith, as the same may from time to time be amended, modified or supplemented. 

Event(s) of Default - Any of the happenings, events, circumstances or occurrences described in Article VI of this Loan Agreement.

 Funding Termination Date - The Line of Credit Maturity Date. 

Guarantor - Comstock Holding Companies, Inc., a Delaware corporation. 

Hazardous Materials - Any (i) hazardous wastes and/or toxic chemicals, materials, substances or wastes occurring in the air,
water, soil or ground water on, under or about the Mortgaged Property as defined by the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (Superfund or CERCLA), 42 U.S.C. §§ 9601 et seq., the
Superfund Amendments and Reauthorization Act of 1986 (SARA), 42 U.S.C. § 9601(20)(D), the Resource Conservation and Recovery Act (the Solid Waste Disposal Act or RCRA), 42 U.S.C. §§ 6901 et seq., the Federal Water
Pollution Control Act, as amended by the Clean Water Act of 1977 (CWA), 33 U.S.C. §§ 1251 et seq., the Clean Air Act of 1966 (CAA), 42 U.S.C. §§ 7401 et seq., the Toxic Substances Control Act (TSCA),
15 U.S.C. §§ 2601, et seq., and the National Environmental Policy Act, 42 U.S.C. 4321 et seq., as these statutes may be amended 

  
 2 

 
from time to time, and regulations promulgated thereunder; (ii) “oil, petroleum, petroleum products, and their by-products” as defined by the applicable statutes, as amended from
time to time, and regulations promulgated thereunder; (iii) “hazardous substance” as defined by the applicable statutes, as amended from time to time, and regulations promulgated thereunder; (iv) substance, the presence of which
is prohibited or controlled by any other applicable federal or state or local environmental laws, rules, regulations, statutes or ordinances now in force or hereafter enacted relating to waste disposal or environmental protection with respect to
hazardous, toxic or other substances generated, produced, leaked, released, spilled or disposed of at or from the Mortgaged Property; and (v) other substance which by law requires special handling in its collection, storage, treatment or
disposal including, but not limited to, asbestos, polychlorinated biphenyls (PCBs), urea formaldehyde foam insulation and lead-based paints, but not including small quantities of such materials present on the Mortgaged Property in retail containers
or other materials used in the ordinary course of construction activities in compliance with all Environmental Requirements and Environmental Laws (as defined in the Security Documents). 

Hydric Soils - Any soil category upon which construction of Improvements would be prohibited or restricted under applicable
governmental requirements, including, without limitation, those imposed by the U. S. Army Corp of Engineers. 

Improvements - Any and all buildings, structures, improvements, alterations or appurtenances now erected or at any time hereafter
constructed or placed upon the Land or any portion thereof and any replacements thereof including without limitation, all equipment, apparatus, machinery and fixtures of any kind or character forming a part of said buildings, structures,
improvements, alterations or appurtenances. 
 Indebtedness - All amounts due Lender pursuant to or on account of the
Note, this Loan Agreement or any of the other Security Documents, including, without limitation, all principal (including, without limitation, any principal that is advanced after the date of this Loan Agreement and any principal that is repaid and
readvanced), interest, late charges, loan fees and all other payments required to be made by Borrower pursuant to or on account of the Note, this Loan Agreement or any of the other Security Documents. 

Land - The real property described in EXHIBIT “A” attached hereto and by this reference made a part
hereof, as amended, modified, supplemented or increased from time to time. 
 Lender - The party hereinabove designated
as such, its successors and assigns. 
 Line of Credit - The revolving line of credit from the Lender to the Borrower
evidenced by the Note, to be advanced, re-advanced and repaid pursuant to this Loan Agreement and secured by the Security Documents. 
 Line of Credit Maturity Date - The date that is the earlier to occur of (i) the date that the last Unit for which Line of Credit funds remain outstanding is sold, (ii) the date that is
twelve (12) months after the date of the first advance of Line of Credit funds for the last Unit to be funded under the Line of Credit, and (iii) the Maturity Date as that term is defined and used in the Note. 

Loan - A non-revolving limited amount which the Lender has committed to fund under the Line of Credit for a specified Unit.

 Loan Fee - The fully earned non-refundable fee that the Borrower shall pay Lender at the time that the Lender makes a
Loan commitment for a specified Unit in an amount equal to one-half of one percent (.5%) of the total Loan commitment for that Unit. 
 Loan Maturity Date - The date on the earlier to occur of (i) the date that the Unit is sold, and (ii) the date that is twelve (12) months after the date of the first advance of Line
of Credit funds for the Unit. 
 Mortgaged Property - The property described as such in the Deed of Trust, as amended,
modified, supplemented or increased from time to time. 

  
 3 

 Note - The Credit Line Deed of Trust Note made by Borrower to the order of Lender
dated of even date herewith in the principal amount hereinabove recited, as the same may from time to time be amended, modified or supplemented. 
 Obligations - Any and all of the covenants, warranties, representations, agreements, promises and other obligations (other than the Indebtedness) made or owing by Borrower or others to Lender
pursuant to or as otherwise set forth in the Note or the Security Documents. 
 Plans and Specifications - Any and all
plans and specifications prepared for Borrower in connection with the construction of the Improvements and approved in writing by Lender, as the same may from time to time be amended with the prior written approval of Lender. 

Pre-sold Unit - A Unit subject to a Contract. 
 Project - The creation of the condominium regime for the Land and the construction of the Units thereon to create for-sale Units within the Mortgaged Property. 

Security Documents - The Commitment, this Loan Agreement, the Environmental Indemnity Agreement executed in connection with the
Line of Credit, the Deed of Trust and any other instrument or instruments described or characterized as such in the Deed of Trust, as the same may from time to time be amended, modified or supplemented. 

Speculative Unit - A Unit not subject to a Contract including all model Units. 

Unit - A condominium unit and the common elements appurtenant thereto within the Mortgaged Property. 

ARTICLE II 

THE LINE OF CREDIT - ADVANCES AND REPAYMENTS 
 2.0 The Line of Credit. Lender agrees to advance Loan proceeds out of the Line of Credit to Borrower, subject to the terms and conditions herein set forth and in accordance with the “Pro Forma
Per Unit Cost and Loan Budget” attached hereto as EXHIBIT “B” and incorporated herein by reference, as amended from time to time by Lender (the “Pro Forma Unit Budget”). Each Loan shall conform to the Pro
Forma Unit Budget unless the Lender approves a separate Loan budget for a particular Unit establishing different maximum amounts of Hard Costs, Soft Costs and Interest Reserve that the Lender will advance under the Loan for the specified Unit (a
“Unit Loan Budget”). Each Unit Loan Budget shall be attached hereto and made a part of EXHIBIT “B” and shall supersede the Pro Forma Unit Budget as to the specified Unit. Aggregate advances under the Line of
Credit shall also conform to the Approved Final Project Cost Budget and Draw Schedule as approved by the Lender attached, to be attached, hereto as EXHIBIT “C” and incorporated herein by reference, as amended from time
to time by Lender (the “Project Budget”). 
 2.1 Applications for Advances. Borrower shall make applications
for Loan advances from Lender on the forms that Lender approves in writing. Borrower shall make each such application at least five (5) business days before the advance shall be called for, in order to permit Lender to make such inspections as
it shall from time to time consider appropriate. Lender shall perform the construction progress inspections of the Units within the Mortgaged Property (including inspections of the foundations). Borrower shall pay Lender the actual cost of the
Lender’s Consulting Engineer or Progress Inspector for each visit by Lender (or its Consulting Engineer or Progress Inspector) to inspect the construction progress of the Units. Each application for an advance of Loan proceeds shall be in such
form and include such detail as Lender may require. Provided such inspections are satisfactory, Borrower shall be permitted two (2) advances or draws of the proceeds of the Line of Credit each calendar month. 

2.2 Revolving Line of Credit. Prior to the Funding Termination Date, Borrower shall have the right to borrow, repay and re-borrow,
from time to time, the principal amount evidenced by the Note provided and so long as (i) no Event of Default exists hereunder; (ii) Lender has not made demand for any payment under the Note which remains unpaid; (iii) the outstanding
principal balance due hereunder together with Loan proceeds that the Lender is committed to advance for all Units then under construction shall not exceed $2,500,000; (iv) all advances and re-advances are made in accordance with this Loan
Agreement; and (v) Loan advances per Unit shall not exceed the following amounts: 
 (a) Construction Advances: Not to
exceed the lesser of (i) sixty-nine percent (69%) of the appraised discounted value of the Unit, (ii) sixty percent (60%) of the gross retail value of the Unit, (ii) one hundred percent (100%) of the actual
“Hard” and “Soft” Costs of construction for the Unit, and (iii) the aggregate approved Hard and Soft Costs per the applicable Unit Loan Budget. 

  
 4 

 (b) Interest Reserve: Each Unit Loan Budget includes an interest reserve out of which the
Lender shall automatically pay the monthly interest cost of each Loan when and as such interest payments are due under the Note up to the maximum amount specified in the applicable Unit Loan Budget. 

(c) Funding Termination: Lender’s agreement to fund approved Line of Credit proceeds will terminate automatically on the
Funding Termination Date as to the Line of Credit and on the Loan Maturity Date as to any Loan. 
 2.3 Conditions Precedent
to Loan Advances for Phase 3. Lender shall not be obligated to make the first advance of Loan proceeds hereunder with respect to any Unit within Phase 3 unless the following conditions have been satisfied with respect to such Unit: 

(a) The Note, the Deed of Trust (including any supplements or amendments thereto) and the other Security Documents shall have been
properly executed and delivered to Lender, the Deed of Trust (and any such supplements or amendments) shall be executed, acknowledged and recorded in the appropriate land records, and payment shall have been made for all recording costs in
connection with the Deed of Trust (and any such supplements or amendments) and any other recorded Security Documents and for any transfer or recordation taxes due under any federal, state or county law. 

(b) Lender shall have received a paid policy of title insurance (ALTA Standard Form “B” Loan Policy - Current Edition) or a
valid and enforceable commitment to issue the same, together with such reinsurance agreements and direct access agreements as may be required by Lender, from a company or companies satisfactory to Lender in the amount of the Line of Credit and which
may be endorsed or assigned to the successors and assigns of Lender without additional cost, insuring the lien of the Deed of Trust to be a valid first lien on the Mortgaged Property with affirmative mechanic’s lien coverage, free and clear of
all defects, exceptions and encumbrances except such as Lender and its counsel shall have approved, and which otherwise complies with the applicable requirements of the Commitment. 

(c) Lender shall have received advice, in form and substance and from a source satisfactory to Lender, to the effect that a search of the
applicable public records discloses no conditional sales contracts, chattel mortgages, leases of personalty, financing statements or title retention agreements filed or recorded against the Mortgaged Property except such as Lender shall have
approved. 
 (d) Lender shall have received all policies or certificates of insurance required by the terms of the Commitment
and of the other Security Documents to be in effect from a company or companies and in form and amount satisfactory to Lender, together with written evidence, in form and substance satisfactory to Lender, that all fees and premiums due on account
thereof have been paid in full. 
 (e) Lender shall have received a separate policy of flood insurance in the face amount of the
Note or the maximum limit of coverage available with respect to the Mortgaged Property, whichever is the lesser, from a company or companies satisfactory to Lender and written in strict conformity with the Flood Disaster Protection Act of
1973, as amended, and all applicable regulations adopted pursuant thereto; provided, however, that in the alternative Borrower may supply Lender with written evidence, in form and substance satisfactory to Lender, to the effect that such flood
insurance is not available with respect to the Mortgaged Property, or Borrower may provide to Lender the certificate of a professional engineer that the Mortgaged Property is not within a flood hazard area. 

  
 5 

 (f) Lender shall have received copies of the recorded subdivision plat of the Mortgaged
Property and/or a current survey of the Land, certified to Lender by a registered land surveyor of the jurisdiction in which the Land is located, which plat of survey shall clearly designate at least (i) the location of the perimeter of the
Land by courses and distances; (ii) the location of all easements, rights-of-way, alleys, streams, waters, paths and encroachments; (iii) the location of all building restriction lines and set-backs, however established; (iv) the
location of any streets or roadways abutting the Land; and (v) the then “as-built” location of the Improvements and the relation of the Improvements by courses and distances to the perimeter of the Land, building restriction lines and
set-backs, all in conformity with the most recent Minimum Standard Detail Requirements for Land Title Surveys adopted by the American Congress on Surveying and Mapping. 
 (g) Lender shall have received from Borrower written evidence, in form and substance satisfactory to Lender, from all governmental authorities having or claiming jurisdiction to the effect that all
grading, building, construction and other permits and licenses necessary or required in connection with the construction of the Improvements have been validly issued; that all fees and bonds (whether posted by Borrower or its seller) required in
connection therewith have been paid in full or posted, as the circumstances may require. 
 (h) Lender shall have received from
Borrower written evidence, in form and substance satisfactory to Lender, to the effect that no construction work of any kind has commenced upon any unit within the Land which is financed with the proceeds of the Line of Credit and no materials
(financed with the proceeds of the Line of Credit) have been placed or stored upon the Land prior to the recordation of the Deed of Trust among the land records where the Land is located unless the same shall be fully insured against by the title
insurance company. 
 (i) Lender shall have received true and complete copies of all organizational documents of Borrower and
the Guarantor, appropriate resolutions authorizing the acceptance of the Line of Credit by Borrower and Guarantor and the execution of the Note and all Security Documents, appropriate certificates of incumbency and an opinion letter from counsel for
Borrower and the Guarantor, which is acceptable to Lender in all respects. 
 (j) Lender shall have received and approved an
appraisal of the Project that complies with the applicable requirements of the Commitment. 
 (k) Lender shall have received
from Borrower written evidence, in form and substance satisfactory to Lender, from all municipalities and utility companies having or claiming jurisdiction to the effect that all utility services in sufficient quantities necessary for the occupation
of the Improvements to be constructed upon the Land, are available for connection and use at the boundaries of the Land, including, without limitation, telephone service, water supply, storm and sanitary sewer facilities, natural gas and electric
facilities. 
 (l) Lender shall have received soil reports which shall (i) demonstrate that the soil conditions of the
Mortgaged Property are suitable for the construction of the Improvements, and (ii) evidence to Lender’s reasonable satisfaction that there are no Hydric Soils on the Mortgaged Property. 

(m) Lender shall have received a satisfactory Phase I environmental site assessment report for the Mortgaged Property. 

(n) Lender shall have received a detailed Project Budget on forms acceptable to Lender which shall be attached hereto and incorporated
herein as EXHIBIT “C”. 
 (o) Lender shall have received a list of the names of all contractors and
materialmen (the “Contractors”) that will perform work or supply materials in connection with the construction of the Improvements on the Land, together with copies of all contracts or subcontracts for such construction satisfactory to
Lender, if requested. 
 (p) Lender shall have received the final site plan for Phase 3 as approved by all necessary
governmental authorities having jurisdiction over the Project. 

  
 6 

 (q)) Borrower shall have established a deposit relationship with the Lender and shall
maintain such deposit relationship through the Line of Credit Maturity Date through which all Line of Credit advances and Borrower’s funds pertaining to the construction of the Units shall be maintained and flow. 

(r) Borrower shall have paid Lender $6,000 of the aggregate Loan Fee that the Lender shall credit against the first $6,000 of Loan
Fees due and payable pursuant to Lender’s commitment to make Loans for specified Units under the Line of Credit. 
 (s)
Lender shall have received financial statements from the Borrower and the Guarantor that are certified current within thirty (30) days prior to the date of this Agreement and certified true financial statements for the two fiscal years prior to
the fiscal year covered by the current financial statements in form and substance satisfactory to the Lender. 
 (t) Borrower
shall have fully complied with any other applicable requirements of the Commitment. 
 (u) Lender shall have received a complete
set of all Plans and Specifications for the Project. 
 2.4 Conditions Precedent to Advances for Units to be Constructed in
Phases Subsequent to Phase 3. The obligation of Lender to make advances with respect to each Phase of the Project, subsequent to Phase 3, for which the Borrower is ready to request Loan advances (a “Future Phase”) shall be conditioned
upon the satisfaction of the conditions set forth in this Agreement, including the satisfaction of the conditions set forth in Section 2.3 as to each Future Phase, and of the following additional conditions: 

(a) Borrower shall have executed and caused the recordation among the land records of Loudoun County, Virginia of an amendment to the
Deed of Trust in the form attached hereto as EXHIBIT “D” (the “Amendment”) to add the Parcel within the Future Phase for which the Borrower intends to request Loan advances such that it is included as part of the
Mortgaged Property. 
 (b) Borrower shall have executed and delivered to Lender Lender’s standard form of Assignment of
Plans and Specifications, Contracts and Permits and Environmental Indemnity Agreement for the Future Phase. 
 (c) Borrower
shall have caused a financing statement to be filed in the appropriate records sufficient to perfect the security interest in the personal property now or hereafter located on or in or used in connection with the Future. 

(d) Lender shall have received an endorsement to the title insurance policy required by Section 2.3(b), which endorsement shall have
the effect of adding the Parcel comprising the land portion of the Future Phase to the insured land referred to therein, and insuring that the lien of the Deed of Trust, as modified by the Amendment, is a valid first lien thereon. 

2.5 Conditions Precedent to Advances of Hard Costs. Lender shall not be obligated to make any Loan advances of Line of Credit
proceeds hereunder with respect to any Unit for Hard Costs, unless the conditions described in Section 2.3 remain satisfied, and the following conditions have been satisfied with respect to such Unit: 

(a) All work completed at the time of the application for advance has been performed in a good and workmanlike manner; or all work
completed at the time of the application for advance has been performed in a good and workmanlike manner and all materials and fixtures usually furnished and installed at that stage of construction have been furnished and installed. 

(b) No Event of Default which has not been cured has occurred under the Note or any of the Security Documents and no act has occurred
which, with the passage of time after due notice, would become an Event of Default. 

  
 7 

 (c) The Improvements for which the advance is being requested have not been materially
damaged by fire or other casualty unless Borrower shall have received the proceeds of insurance sufficient in the judgment of Lender to effect a satisfactory restoration of such Improvements and to permit the completion thereof on or prior to the
Completion Date. 
 (d) Lender has received evidence satisfactory to it that all work requiring inspection by governmental or
regulatory authorities having or claiming jurisdiction has been duly inspected and approved by such authorities and by any rating or inspection organization, bureau, association or office having or claiming jurisdiction. 

(e) Lender shall be satisfied, based upon the advice of the Consulting Engineer or Progress Inspector, that each Unit can be completed by
a date no later than the Completion Date for that Unit with the balance of the Loan proceeds then held by Lender and available for advance for those purposes pursuant to the terms of this Loan Agreement and with other funds which Lender is
reasonably satisfied are available to Borrower for those purposes. 
 (f) Lender shall have received a notice of title
continuation or an endorsement to the title insurance policy heretofore delivered, indicating that since the last preceding advance, there has been no change in the status of title and no survey exceptions or other exceptions not theretofore
approved by Lender, which endorsement shall have the effect of advancing the effective date of the policy to the date of the advance then being made and increasing the coverage of the policy to an amount equal to the total advances made as of the
date of the advance then being made if the policy does not by its terms provide for such an increase. 
 (g) The representations
and warranties made in Article III of this Loan Agreement shall be true and correct, in all material respects, on and as of the date of the advance with the same effect as if made on such date. 

(h) Lender shall have received acknowledgments of payment and releases of liens and rights to claim liens for work performed or materials
delivered through the date of the last preceding advance and concurrently with the final advance. All such acknowledgments and releases shall be in form and substance satisfactory to Lender and the title insurance company which has insured the title
to the Mortgaged Property. 
 (i) All other terms and conditions of the Security Documents required to be met as of the date of
the particular advance of Line of Credit proceeds shall have been met to the satisfaction of Lender. 
 2.6 Additional
Conditions Precedent to Final Advance. Lender shall not be obligated to make the final advance of Line of Credit proceeds with respect to any Unit included within the Mortgaged Property unless the conditions described in Sections 2.3, 2.4 and
Section 2.5 and the following additional conditions have been satisfied with respect to such Unit: 
 (a) Lender has been
satisfied that all construction has been satisfactorily completed in a good and workmanlike manner; 
 (b) Lender has received
evidence satisfactory to it that all work requiring inspection by governmental or regulatory authorities having or claiming jurisdiction has been duly inspected and approved by such authorities and by any rating or inspection organization, bureau,
association or office having or claiming jurisdiction; 
 (c) To the extent that any such certificate is a condition to the
lawful use and occupancy of the subject Improvements, Lender has received evidence satisfactory to it that the requisite certificate of use and occupancy for permanent occupancy of such Improvements has been validly issued; however, such a
certificate shall be not required for any model houses; 
 (d) Lender shall have received fire and extended coverage insurance
for the applicable Unit as set forth in Section 4.10 of this Loan Agreement; 

  
 8 

 (e) To the extent required by Lender, all insurance policies shall be endorsed to insure the
Improvements, in accordance with Section 4.10 of this Loan Agreement; and 
 (f) All other terms and conditions of the
Security Documents required to be met as of the date of the final advance of Loan proceeds for the applicable Unit shall have been met to the satisfaction of Lender. 
 2.7 Trust Funds. Borrower will receive the advances to be made hereunder and will hold the right to receive the same as a trust fund for the purpose of paying the cost of the construction of the
Improvements, and Borrower agrees not to expend any part of the proceeds of the Line of Credit for any purpose except in connection with the uses and purposes provided for in this Loan Agreement without the prior written consent of Lender.

 2.8 Advances to Others for Account of Borrower. At the option of Lender, Lender may apply amounts due hereunder to the
satisfaction of the conditions of the Commitment, the Note or the Security Documents and any amounts so applied shall be part of the Line of Credit and shall be secured by the Deed of Trust. Advances requested by Borrower shall be made directly to
Borrower unless and until Borrower is in default hereunder or under any other Security Document. If Borrower is in default hereunder or under any other Security Document, then at the option of Lender, and without limiting the generality of the
foregoing, Lender may make advances directly to the title insurance company or any subcontractor or materialman, or to any of them jointly, and the execution hereof by Borrower shall, and hereby does, constitute an irrevocable authorization, if
Borrower is in default hereunder or under any other Security Documents, to so advance the proceeds of the Line of Credit. No further direction or authorization from Borrower shall be necessary to warrant such direct advances and all such advances
shall satisfy pro tanto the obligations of Lender hereunder and shall be secured by the Deed of Trust as fully as if made to Borrower, regardless of the disposition thereof by the party or parties to whom such advance is made.

 2.9 Additional Funds. If the inspections performed on behalf of Lender project that the remaining cost to complete a
Unit will exceed the total remaining amount of Loan proceeds to be provided by Lender for that Unit, Lender shall not advance any more Loan proceeds for that Unit until Borrower has deposited with Lender the difference between the total remaining
cost to complete that Unit (including sufficient funds to pay interest for the remaining term of the Loan) and the total remaining amount of the Loan proceeds for that Unit. This provision will apply whenever the total remaining cost to complete a
Unit exceeds the total remaining Loan proceeds for that Unit. Therefore, if the projected total remaining costs to complete a Unit continues to increase after the first time that it exceeds the total amount of the remaining Loan proceeds for that
Unit, Borrower shall deposit the incremental increase before Lender advances any more Loan proceeds for that Unit. The determination of the total remaining cost to complete each Unit shall be made by Lender. 

2.10 Assignments. Borrower agrees not to transfer, assign, pledge or hypothecate any right or interest in any payment or advance
due pursuant to this Loan Agreement, or any of the other benefits of this Loan Agreement, without the prior written consent of Lender. Any assignment made or attempted by Borrower without the prior written consent of Lender shall be void. No consent
by Lender to an assignment by Borrower shall release Borrower as the party primarily obligated and liable under the terms of this Loan Agreement unless Borrower shall be released specifically by Lender in writing. No consent by Lender to an
assignment shall be deemed to be a waiver of the requirement of prior written consent by Lender with respect to each and every further assignment and as a condition precedent to the effectiveness of such assignment. 

2.11 Liability of Lender. Lender shall in no event be responsible or liable to any person other than Borrower for the disbursement
of or failure to disburse the proceeds of the Line of Credit or any part thereof, and no subcontractor, laborer or material supplier shall have any right or claim against Lender under this Loan Agreement or the administration thereof. 

2.12 Construction Starts; Limitations on Speculative Units. The Borrower shall have not more than eighteen (18) Units under
construction at any given time during the term of the Line of Credit (“Construction Starts”). The Borrower shall have not more than four (4) Speculative Units and two (2) model Units (“Model Units”) under construction
in the first Building for which construction has commenced in the Project (the “First Building”). Thereafter, and for the remaining term of the Line of Credit, the Borrower shall have not more than two

  
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(2) Speculative Units and two (2) Model Units for the entire Project (including any Speculative Units and Model Units remaining in the First Building) at the time that the Borrower commences
construction of each of the Buildings to be constructed within the Project after the First Building. Model Units shall not be deemed to be Speculative Units for the purpose of this Section. The Borrower shall provide Lender with all information that
the Lender reasonably requests prior to a new Construction Start. Borrower shall not commence a Construction Start until Lender has reviewed and approved the applicable Construction Start information submitted to Lender. 

2.13 Line of Credit and Loan Repayment. Borrower shall pay all principal and all accrued and unpaid interest and costs for each
Loan under the Line of Credit on or before the Loan Maturity Date. Borrower shall pay all other outstanding principal, accrued and unpaid interest and costs which remain unpaid on the Line of Credit Maturity Date. 

1. ARTICLE III 
 REPRESENTATIONS AND WARRANTIES 
 3.0 Representations and Warranties by
Borrower. Borrower hereby represents and warrants to Lender, as of the date of the first advance of Line of Credit proceeds and at all times thereafter, that: 
 3.1 Plans and Specifications. No work associated with the construction of the Improvements will be commenced by Borrower unless and until the Plans and Specifications are satisfactory to Borrower
and Lender and, to the extent required by applicable law and any effective restrictive covenants, have been approved by all governmental authorities having or claiming jurisdiction and by the beneficiaries of any such restrictive covenants,
respectively. 
 3.2 Permits. No work associated with the construction of the Improvements will be commenced by Borrower
unless and until all grading, building, construction and other permits necessary or required in connection with the commencement of the construction of the Improvements have been validly issued and all fees and bonds (whether posted by Borrower or
its seller) required in connection therewith have been paid or posted, as the circumstances may require. 
 3.3
Utilities. All utility services necessary for the construction of the Improvements and the operation thereof for their intended purpose are available at the boundaries of the Land, or there are easements in place which will allow Borrower to
extend utility services to the boundaries of the Land, including, without limitation, telephone service, water supply, storm and sanitary sewer facilities, and natural gas or electric facilities. 

3.4 Access - Roads. All roads and other access necessary for the construction and full utilization of the Improvements for their
intended purposes have either been completed or the necessary rights of way therefor have either been acquired by the appropriate governmental authorities or have been dedicated (or will be dedicated) to public use and accepted by such governmental
authorities or have been or will be created by recorded easement and all necessary steps have been taken by Borrower or such governmental authorities to assure the complete construction and installation thereof by a time no later than the Completion
Date. 
 3.5 Other Liens. Except as otherwise provided for in the Security Documents, Borrower has made no contract or
arrangement of any kind the performance of which by the other party thereto would give rise to a lien on the Mortgaged Property. 
 3.6 Financial Statements. The financial statements heretofore delivered to Lender are true and correct in all respects, have been prepared in accordance with sound accounting practices consistently
applied, and fairly present the respective financial conditions of the subjects thereof as of the respective dates thereof. No material adverse change has occurred in the financial conditions reflected therein since the respective dates thereof and
no material additional liabilities have been incurred by Borrower since the date thereof other than the borrowing contemplated herein or as approved in writing by Lender. 

  
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 3.7 Defaults. There is no default on the part of Borrower under the Note or the
Security Documents and no event has occurred and is continuing which, with notice, the passage of time, or both, would constitute a default under the Note or the Security Documents. 

3.8 Compliance in Zoning. The current or anticipated use of the Mortgaged Property complies with applicable zoning ordinances,
regulations and restrictive covenants affecting the Land, all use requirements of any governmental authority having jurisdiction have been satisfied, and no violation of any law or regulation exists with respect thereto. 

ARTICLE IV 

AFFIRMATIVE COVENANTS 
 4.0 Affirmative Covenants. Borrower hereby affirmatively covenants and agrees as follows: 
 4.1 Construction. Borrower shall pursue construction of each Unit in good faith with diligence and continuity in accordance with the Plans and Specifications. 

4.2. Approval and Permits. No work associated with the construction of the Improvements shall be commenced by Borrower unless and
until the Plans and Specifications have been approved by Lender and, to the extent required by applicable law or any effective restrictive covenant, by all governmental authorities having or claiming jurisdiction and by the beneficiary of any such
restrictive covenant, and unless and until all building, construction and other permits necessary or required in connection with the commencement of the construction of the Improvements have been validly issued and all fees and bonds (whether posted
by Borrower or its seller) required in connection therewith have been paid or posted, as the circumstances may require. 
 4.3
Completion. Construction of a Unit shall be completed by Borrower on or before the Completion Date, free and clear of all liens and claims of liens for materials supplied and for services or labor performed in connection with the construction
of the Unit. 
 4.4 Compliance with Laws - Encroachments. The Improvements shall be constructed by Borrower in strict
accordance with all applicable (whether present or future) laws, ordinances, rules, regulations, requirements and orders of any governmental or regulatory authority having or claiming jurisdiction. The Improvements shall be constructed entirely on
the Land and will not encroach upon any easement or right-of-way, or upon the land of others. Construction of the Improvements shall be wholly within all applicable building restriction lines and set-backs, however established, and shall be in
strict accordance with all applicable use or other restrictions and the provisions of any prior agreements, declarations, covenants and all applicable zoning and subdivision ordinances and regulations. 

4.5 Surveys. Upon Lender’s request from time to time, as construction progresses and upon the completion of the construction
of the Improvements, Borrower shall furnish Lender with a plat of survey, currently certified to Lender by a registered land surveyor of the jurisdiction in which the Land is located, which plat of survey shall clearly designate at least
(i) the location of the perimeter of the Land by courses and distances; (ii) the location of all easements, rights-of-way, alleys, streams, waters, paths and encroachments; (iii) the location of all building restriction lines and
set-backs, however established; (iv) the location of any streets or roadways abutting the Land; and (v) the “as-built” location of the Improvements and the relation of the Improvements by courses and distances to the perimeter of
the Land, building restriction lines and set-backs. 
 If at any time Borrower is required to furnish a plat of survey to Lender pursuant to the
terms of this Loan Agreement, Borrower shall also furnish an original print thereof to the title insurance company and such plat of survey shall not be sufficient for purposes of this Loan Agreement unless and until the title insurance company shall
advise Lender, by endorsement to the title insurance policy or otherwise, that the plat of survey discloses no violations, encroachments or other variances from applicable set-backs or other restrictions except such as Lender and its counsel shall
approve, such approval not to be unreasonably withheld. All such plats of survey shall conform to the most recent Minimum Standard Detail Requirements for ALTA/ACSM Land Title Surveys jointly established and adopted by the American Land Title
Association and the American Congress on Surveying and Mapping. The plats prepared in connection with the establishment and recordation of a phase of the condominium by Borrower’s engineer shall be sufficient to meet the requirements of a plat
of survey in this paragraph. 

  
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 4.6 Inspections; Cooperation; Payment of Consulting Engineer. Borrower shall permit
Lender and Lender’s duly authorized representatives (including, without limitation, the Consulting Engineer or Progress Inspector) no more than twice per month to enter upon the Land and to inspect the Improvements and any and all materials to
be used in connection with the construction of the Improvements and to examine all detailed plans and shop drawings and similar materials relating to the construction of the Improvements, during ordinary business hours. Borrower will at all times
cooperate and use its reasonable good faith efforts to cause each and every of its subcontractors and materialmen to cooperate with Lender and Lender’s duly authorized representatives (including, without limitation, the Consulting Engineer or
Progress Inspector) in connection with or in aid of the performance of Lender’s functions under this Loan Agreement. The fees of any Consulting Engineer or Progress Inspector engaged or employed by Lender in connection with or in aid of the
performance of Lender’s functions under this Loan Agreement shall be paid by Borrower. 
 4.7 Vouchers and Receipts.
Borrower will furnish to Lender, promptly on demand, any contracts, bills of sale, statements, receipted vouchers or agreements pursuant to which Borrower has any claim of title to any materials, fixtures or other articles delivered or to be
delivered to the Land or incorporated or to be incorporated into the Improvements. Borrower will furnish to Lender, promptly on demand, a verified written statement, in such form and detail as Lender may reasonably require, showing all amounts paid
and unpaid for labor and materials and all items of labor and materials to be furnished for which payment has not been made and the amounts to be paid therefor. 
 4.8 Payments for Labor and Materials. Borrower will pay when due all bills for materials supplied and for services or labor performed in connection with the construction of the Improvements.

 4.9 Correction of Construction Defects. In the event there are any defects in the work or any material departures or
deviations from the Plans and Specifications not approved by Lender, as such defects, departures or deviations are certified to Lender by an outside engineer chosen by Lender, then promptly following any demand by Lender, Borrower will correct or
cause the correction of such defects, departures or deviations. 
 4.10 Insurance. The original policy or policies of
insurance, a certified true copy thereof or a certificate shall be deposited with Lender, together with a paid receipt for the premiums thereunder for at least the quarterly period following the date of this Loan Agreement. All policies of insurance
shall be written with a company or companies licensed to do business in the jurisdiction where the Mortgaged Property is located and with a company or companies satisfactory to Lender. Each policy of insurance shall provide that such policy may not
be surrendered, cancelled or substantially modified, including without limitation cancellation for non-payment of premiums, without at least thirty (30) days’ prior written notice to all parties named as insured therein, including Lender.

 At no cost to Lender, Borrower shall provide and maintain: 
 (a) BUILDER’S RISK INSURANCE - “Builder’s Risk” insurance (reporting form) of the type customarily carried in the case of similar construction for the full replacement cost of
work in place and material stored at or upon the Mortgaged Property, comprehensive broad form “all risk” casualty insurance and insurance for other risks of a similar or dissimilar nature, in such forms and amounts as Lender may require.
Such insurance policy shall name Lender as mortgagee. 
 (b) FIRE/HAZARD INSURANCE WITH EXTENDED COVERAGE - Insurance
against any act or occurrence of any kind or nature that results in damage, loss or destruction to the Mortgaged Property under a policy or policies covering such risks as are ordinarily insured against by similar businesses, but in any event
including fire, lightning, windstorm, hail, explosion, riot, riot attending a strike, civil commotion, damage from aircraft, smoke, vandalism and malicious mischief, upon the completion of the construction of the Improvements or upon the occupancy
thereof for the purposes intended, whichever shall first occur. Unless otherwise agreed in writing by Lender, such insurance shall be for the full insurable value of the Mortgaged Property. The term “full insurable value” means the actual
replacement cost of the Mortgaged Property (excluding foundation and excavation costs and costs of underground flues, pipes, drains and other uninsurable items). The deductible amount under such policy or policies shall not exceed

  
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$5,000.00. No policy of insurance shall be written such that the proceeds thereof will produce less than the minimum coverage required by this section by reason of coinsurance provisions or
otherwise. The “full insurable value” shall be determined from time to time at the request of Lender, by an appraiser or appraisal company or one of the insurers, who shall be selected and paid for by Borrower but subject to Lender’s
approval. Such insurance policy shall name Lender as mortgagee. 
 (c) LIABILITY INSURANCE - Comprehensive general public
liability and indemnity insurance in such forms and in such amounts as Lender may require, but in any event not less than $1,000,000.00 covering claims for bodily injury or death and property damage arising out of a single occurrence and
$2,000,000.00 for the aggregate of all occurrences during any given annual policy period. Such insurance policy shall name Lender as mortgagee. 
 (d) WORKER’S COMPENSATION INSURANCE - Worker’s compensation insurance for all employees (if any) of Borrower in accordance with the applicable requirements of law. Such insurance policy
shall name Lender as mortgagee. 
 4.11. Flood Insurance. If required by applicable law or regulation or if
required by Lender, Borrower shall provide or cause to be provided to Lender a separate policy of flood insurance in the amount of the Note or the maximum limit of coverage available with respect to the Mortgaged Property, whichever is the lesser,
from a company or companies satisfactory to Lender and written in strict conformity with the Flood Disaster Protection Act of 1973, as amended, and all applicable regulations adopted pursuant thereto, or alternatively if flood insurance is
not available for the Mortgaged Property or the Mortgaged Property is not within a flood hazard area, Borrower shall supply Lender with written evidence, in form and substance satisfactory to Lender, to that effect. Any such policy shall provide
that the policy may not be surrendered, cancelled or substantially modified (including, without limitation, cancellation for non-payment of premiums) without at least thirty (30) days’ prior written notice to any and all insureds named
therein, including Lender. 
 4.12 Fees and Expenses - Indemnity. Borrower will pay to Lender or as Lender directs
all reasonable fees, charges, costs and expenses required to satisfy the conditions of the Security Documents and the Commitment. Borrower will hold Lender harmless and indemnify Lender from all claims of brokers and “finders” arising by
reason of the execution and delivery hereof or the consummation of the transaction contemplated hereby. 
 4.13 Prompt
Applications. Borrower shall cause all applications for advances of Line of Credit proceeds to be made and delivered to Lender promptly in order to obtain advances of Line of Credit proceeds as they become available for disbursement pursuant to
the terms of this Loan Agreement. 
 4.14 Hazardous Materials. Borrower will immediately remove all Hazardous Materials
from the Land and Improvements or follow the recommendations of a qualified environmental consultant approved by Lender immediately after Borrower has been notified that Hazardous Materials have been used in the construction of the Improvements or
are or have been stored or located upon the Land or the Improvements in violation of Environmental Requirements or Environmental Laws. 
 4.15 Reappraisal. Borrower agrees that Lender shall have the right, in a commercially reasonable manner, to require a reappraisal of the Mortgaged Property at any time, but not more than once
annually, and all fees, expenses and other costs associated therewith shall be paid by Borrower, and if not so paid, such amounts shall constitute a portion of Borrower’s obligations evidenced by the Note and secured by the Deed of Trust.

 4.16 Financial Reporting. On or before May 31 of each year, the Borrower and Guarantor will furnish to the Lender
their federal income tax returns for the previous fiscal year. On or before May 31 of each year, the Borrower and Guarantor will furnish to the Lender internally prepared financial statements disclosing in detail the Borrower’s income,
expenses, retained earnings, changes in cash position and distributions during the previous one year period and a detailed balance sheet as of the end of such period. The Borrower and the Guarantor will also furnish to the Lender such other
financial and operating information as the Lender may from time to time request. 

  
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 4.17 Financial Covenants. 

(a) Tangible Net Worth. Guarantor shall maintain a Tangible Net Worth (hereinafter defined) of not less than $1.00 based upon the fair
market value of its assets and the liabilities reflected on its financial statements at any given time (the “Tangible Net Worth Covenant”) at all times during the term of the Line of Credit. “Tangible Net Worth” is the amount by
which the aggregate fair market value of Guarantor’s assets exceeds its aggregate liabilities. For determining Tangible Net Worth, total assets will exclude all intangible assets, including without limitation goodwill, patents, trademark, trade
names, copyrights, franchises and all accounts receivable that are owed Guarantor by any of its stockholders, officers or directors. 
 4.18 Loan Fee. Borrower shall pay Lender a Loan Fee at the time that Lender commits to make a Loan under the Line of Credit. 

4.19 Condominium Regime. Borrower shall submit all existing or proposed documentation (the “Condominium Documents”)
intended or necessary to convert the Project into a multi-unit condominium regime (the “Condominium Regime”) to the Lender for the Lender’s review and approval prior to the Borrower’s submission of the Condominium Documents to
any governmental authority required to review and approve the Condominium Documents as a pre-condition to the creation of the Condominium Regime. Once the Lender has approved the Condominium Documents, which approval shall not be unreasonably
conditioned, delayed or withheld, the Lender shall consent to and/or execute such Condominium Documents as are required of the Lender, in its capacity as the holder of a security interest in the Land, to facilitate the Borrower’s conversion of
the Project into a Condominium Regime under the laws of the Commonwealth of Virginia. 
 2. ARTICLE V 

NEGATIVE COVENANTS 
 5.0 Negative Covenants. Until the Indebtedness shall have been paid in full, Borrower covenants and agrees as follows: 
 5.1 Other Liens; Transfers; “Due-on-Sale”, etc. Borrower shall not, without the prior written consent of Lender, create or permit to be created or remain with respect to the Mortgaged
Property or any part thereof or income therefrom, any mortgage, pledge, lien, encumbrance, charge, security interest, conditional sale or other title retention agreement, whether prior or subordinate to the lien of the Security Documents, other than
in connection with the Security Documents or as otherwise provided for or permitted therein. Except for any grant, conveyance, sale, assignment or transfer in the ordinary course of Borrower’s business and which is specifically conditioned upon
the release of record of the lien of the Deed of Trust and the other Security Documents as to that portion of the Mortgaged Property granted, conveyed, sold, assigned or transferred, Borrower shall not, without the prior written consent of Lender,
make, create, permit or consent to any conveyance, sale, assignment or transfer of the Mortgaged Property or any part thereof, or Borrower’s legal or equitable interest in the Mortgaged Property, other than in connection with the Security
Documents or as otherwise provided for or permitted therein. Borrower will not, without the prior written consent of Lender, make, create or consent to any grant, conveyance, sale, assignment or transfer of any partnership interest or other interest
in Borrower. 
 5.2 Impairment of Security. Borrower shall take no action which will in any manner impair the value of
the Mortgaged Property or the validity, priority or security of the Deed of Trust. 
 5.3 Conditional Sales. Borrower
will not incorporate in the Improvements any property acquired under a conditional sales contract or lease, or as to which the vendor retains title or a security interest, without the prior written consent of Lender. 

5.4 Changes to Plans and Specifications. Borrower will not permit any material changes in the Plans and Specifications, including,
without limitation, any change by altering or adding to the work to be performed, orders for extra work, any change which will result in a material net construction cost increase or a material net cumulative

  
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construction cost decrease, or any material change in the design concept for the Improvements, without the prior written consent of Lender, which consent shall not be unreasonably withheld,
conditioned or delayed and under such reasonable conditions as Lender may then establish. 
 5.5 Bonds. Borrower will not
do or permit anything to be done that would affect the coverage or indemnities provided for pursuant to the provisions of any performance bond, labor and material payment bond or any other bond required pursuant to the provisions of the Security
Documents. 
 ARTICLE VI 
 EVENTS OF DEFAULT 
 6.0 Events of Default. The term “Event(s)
of Default,” as used in this Loan Agreement shall mean the occurrence or happening, from time to time, of any one or more of the following, beyond any applicable cure period: 

6.1 Payment of Indebtedness. If Borrower shall fail to pay to Lender any and all amounts payable by Borrower to Lender under the
terms of the Note or any of the Security Documents, including but not limited to any principal payment, interest payment, loan fee, extension fee or late charge, at the time such payment is due, and Borrower fails to make such payment within ten
(10) days after Lender’s written notice to Borrower that such payment is past due. 
 6.2 Performance of
Obligations. If Borrower shall default in the due observance or performance of any of the Obligations, specifically including, but not limited to, those specified in Sections 6.3 through 6.10 of this Article, and such default continues for
thirty (30) days after written notice of such default is sent by Lender to Borrower, provided however that if such failure is capable of being cured within a reasonable period of time but, in Lender’s judgment, cannot be cured within said
thirty (30) day period, then, notwithstanding the foregoing, an Event of Default shall not be deemed to have occurred at the expiration of said thirty (30) day period if the Borrower (i) commences the cure of such failure within said
thirty (30) day period, (ii) thereafter diligently and expeditiously to Lender’s satisfaction proceeds to cure such failure, and (iii) completes the cure of such failure within a reasonable period of time not exceeding ninety
(90) days after the date that such written notice was sent. 
 6.3 Other Defaults. If any other default shall occur
under the Note or any of the Security Documents or any document evidencing or securing a loan or line of credit to Borrower, Guarantor or any company in which the Borrower and/or Guarantor maintain a controlling interest. 

6.4 Representation and Warranties. If any representation or warranty contained in this Loan Agreement or in any other document,
certificate or opinion delivered to Lender in connection with the Line of Credit shall prove at any time to be incorrect or misleading in any material respect when made. 
 6.5 Progress of Construction. Except for delays unavoidably occasioned by strikes, lock-outs, war or civil disturbance, governmental actions (e.g., moratorium), natural disaster, acts of God, or
extreme weather conditions, if construction of the Improvements is not carried on in good faith and with reasonable dispatch or if Borrower abandons the work or discontinues work for a period of more than thirty (30) consecutive days.

 6.6 Failure to Complete. Except for delays unavoidably occasioned by strikes, lock- outs, war or civil disturbance,
natural disaster, acts of God, or extreme weather conditions, if Borrower fails to complete the construction of a Unit on or before the Completion Date. 
 6.7 Conditions Precedent to Any Advance. Except for delays unavoidably occasioned by strikes, lock-outs, war or civil disturbance, natural disaster, acts of God, or extreme weather conditions, if
Borrower is unable to satisfy any condition precedent to its right to receive an advance of Line of Credit proceeds for a period in excess of thirty (30) days. 

  
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 6.8 Disclosure of Contractors. If Borrower shall fail to disclose to Lender, upon
demand and within a reasonable time period, the names of all major contractors with whom Borrower has contracted or intends to contract for the construction of the Improvements or for the furnishing of labor or materials therefor. 

6.9 Mechanic’s Lien. The filing of any mechanic’s or judgment lien against the Project, or the failure to pay any firm,
person or corporation entitled to payment, which firm, person or corporation has a right to file a mechanic’s lien against the Project regardless of the fact that such mechanic’s lien or judgment lien or claim if filed is, or may be,
subordinated to the lien of the Deed of Trust; provided, however, that the filing of a mechanic’s or judgment lien affecting the Project shall not be deemed to be an Event of Default provided that (i) such lien is either bonded off by
Borrower within sixty (60) days after the filing thereof, or (ii) Borrower posts security for or makes other arrangements for protection of Lender satisfactory to Lender, within sixty (60) days after the filing of such lien.
Notwithstanding the foregoing, if any such lien is filed, Lender shall not be required to make any further advances hereunder until Borrower has either paid or bonded off the lien as described in (i) above, or has posted security or made other
arrangements to the satisfaction of Lender as described in (ii) above. 
 6.10 Impairment of Security. The
occurrence of any condition or situation which, in the sole determination of Lender, constitutes a material danger to or impairment of the security for the repayment of the Line of Credit, if such condition or situation is not remedied within thirty
(30) days after written notice to Borrower thereof. 
 6.11 Environmental Clean-up. If Borrower fails to pay the
cost, or to provide for the payment of the cost and performance of the “clean up” of the Project pursuant to an order issued under the Environmental Response Compensation and Liability Act in a manner satisfactory to Lender and such
failure continues for a period of thirty (30) days after the date of written notice of such failure from Lender to Borrower. 
 6.12 Dissolution of Borrower or Guarantor. If either of the Borrower or Guarantor are dissolved. 
 6.13 Inspection of the Project. If the Borrower fails or refuses to permit a representative of Lender to enter the Project and inspect the same at reasonable times. 

ARTICLE VII 

DEFAULT - REMEDIES 
 7.0 Remedies on Default. Lender shall have the right, upon the happening of any Event of Default, to terminate this Loan Agreement by notice in writing to Borrower and, in addition to any rights or
remedies available to it under the Deed of Trust or other Security Documents, to enter into possession of the Mortgaged Property and perform any and all work and labor necessary to complete the construction of the Improvements (whether or not in
accordance with the Plans and Specifications) and to employ watchmen to protect the Mortgaged Property and the Improvements. 
 All sums
expended by Lender for such purposes shall be deemed to have been paid to Borrower and secured by the Deed of Trust. For this purpose, Borrower hereby constitutes and appoints Lender Borrower’s true and lawful attorney-in-fact with full power
of substitution to complete the work in the name of Borrower, in a commercially sound and reasonable manner, and hereby empowers said attorney or attorneys as follows: 
 (a) To use any funds of Borrower including any balance which may be held in escrow and any funds which may remain unadvanced hereunder for the purpose of completing the construction of the Improvements,
whether or not in the manner called for in the Plans and Specifications; 
 (b) To make such additions, changes and corrections
in the Plans and Specifications which shall be necessary or desirable in the judgment of Lender to complete the construction of the Improvements; 
 (c) To employ such contractors, subcontractors, agents, architects and inspectors as shall be required for said purpose; 

  
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 (d) To pay, settle or compromise all existing bills and claims which are or may be liens
against the Mortgaged Property, or may be necessary or desirable for the completion of the work or the clearance of title; 

(e) To execute all applications and certificates which may be required in the name of Borrower; and 

(f) To do any and every act with respect to the construction of the Improvements which Borrower may do in its own behalf. 

It is understood and agreed that this power of attorney shall be deemed to be a power coupled with an interest which cannot be revoked. Said
attorney-in-fact shall also have power to prosecute and defend all actions or proceedings in connection with the construction of the Improvements and to take such actions and require such performance as is deemed necessary. 

Borrower hereby irrevocably constitutes and appoints Lender Borrower’s true and lawful attorney-in-fact to execute, acknowledge and deliver such
documents, instruments and certificates, and to take such other actions, in the name and on behalf of Borrower and at the sole cost and expense of Borrower, as Lender, in its sole and reasonable discretion, deems necessary, desirable or appropriate
to effectuate the provisions of this paragraph upon ten (10) days prior written notice to Borrower. 
 7.1 No Conditions
Precedent to Exercise of Remedies. Neither Borrower nor any guarantor of the payment of all or any part of the Indebtedness or the performance of any of the Obligations shall be relieved of any obligation by reason of the failure of Lender to
comply with any request of Borrower or of any other person to take action to foreclose on the Deed of Trust or otherwise to enforce any provisions of the Note or the Security Documents, or by reason of the release, regardless of consideration, of
all or any part of the Mortgaged Property, or by reason of any agreement of stipulation between any subsequent owner of the Mortgaged Property and Lender extending the time of payment or modifying the terms of the Note or the Security Documents
without first having obtained the consent of Borrower or such guarantor; and in the latter event, Borrower and such guarantor shall continue to be liable to make payments according to the terms of any such extension or modification agreement, unless
expressly released and discharged in writing by Lender. 
 7.2 Remedies Cumulative and Concurrent. No remedy herein
conferred upon or reserved to Lender is intended to be exclusive of any other remedies provided for in the Note or in the Security Documents, and each and every such remedy shall be cumulative and shall be in addition to every other remedy given
hereunder, under the Note or the Security Documents, or now or hereafter existing at law or in equity or by statute. Every right, power and remedy given by the Note and the Security Documents to Lender shall be concurrent and may be pursued
separately, successively or together against Borrower, the guarantor of the payment of all or any part of the Indebtedness or the performance of any of the Obligations, or the Mortgaged Property or any part thereof, or any one or more of them; and
every right, power and remedy given by the Note or the Security Documents may be exercised from time to time as often as may be deemed expedient by Lender. 
 7.3 Strict Performance. No delay or omission of Lender to exercise any right, power or remedy accruing upon the happening of an Event of Default shall impair any such right, power or remedy or
shall be construed to be a waiver of any such Event of Default or any acquiescence therein. No delay or omission on the part of Lender to exercise any option for acceleration of the maturity of the Indebtedness, or for foreclosure of the Deed of
Trust following any Event of Default as aforesaid, or any other option granted to Lender hereunder in any one or more instances, or the acceptance by Lender of any partial payment on account of the Indebtedness shall constitute a waiver of any such
Event of Default, and each such option shall remain continuously in full force and effect. 
 ARTICLE VIII 

MISCELLANEOUS 
 8.0 No Warranty by Lender. By accepting or approving anything required to be observed, performed or fulfilled by Borrower or to be given to Lender pursuant to this Loan Agreement, including,
without limitation, any 

  
 17 

 
certificate, balance sheet, statement of profit and loss or other financial statement, survey, receipt, appraisal or insurance policy, Lender shall not be deemed to have warranted or represented
the sufficiency, legality, effectiveness or legal effect of the same, or of any term, provision or condition thereof, and any such acceptance or approval thereof shall not be or constitute any warranty or representation with respect thereto by
Lender. 
 8.1 Liability of Lender. Lender shall not be liable for any act or omission by it pursuant to the provisions
of this Loan Agreement in the absence of fraud, gross negligence or willful misconduct. Lender shall incur no liability to Borrower or any other party in connection with the acts or omissions of Lender in reliance upon any certificate or other paper
believed by Lender to be genuine or with respect to any other thing which Lender may do or refrain from doing, unless such act or omission amounts to fraud, gross negligence or willful misconduct. In connection with the performance of its duties
pursuant to this Loan Agreement, Lender may consult with counsel of its own selection, and anything which Lender may do or refrain from doing, in good faith, in reliance upon the opinion of such counsel shall be full justification and protection to
Lender. 
 8.2 No Partnership. Nothing contained in this Loan Agreement shall be construed in a manner to create any
relationship between Borrower and Lender other than the relationship of borrower and lender, and Borrower and Lender shall not be considered partners or co-venturers for any purpose. 

8.3 Severability. In the event any one or more of the provisions of this Loan Agreement shall for any reason be held to be
invalid, illegal or unenforceable, in whole or in part or in any respect, or in the event any one or more of the provisions of the Note or the Security Documents operate or would prospectively operate to invalidate this Loan Agreement, then and in
either of those events, at the option of Lender, such provision or provisions only shall be held for naught and shall not affect any other provision of the Note or the Security Documents or the validity of the remaining Obligations, and the
remaining provisions of the Note and the Security Documents shall remain operative and in full force and effect and shall in no way be affected, prejudiced or disturbed thereby. 

8.4 Successors and Assigns. Each and every of the covenants, terms, provisions and conditions of this Loan Agreement, the Note and
the Security Documents shall apply to, bind and inure to the benefit of Borrower, its successors and those assigns of Borrower consented to in writing by Lender, and shall apply to, bind and inure to the benefit of Lender and the endorsees,
transferees, successors and assigns of Lender, and all persons claiming under or through any of them. 
 8.5 Modification -
Waiver. None of the terms or provisions of this Loan Agreement may be changed, waived, modified, discharged or terminated except by instrument in writing executed by the party or parties against which enforcement of the change, waiver,
modification, discharge or termination is asserted. None of the terms or provisions of this Loan Agreement shall be deemed to have been abrogated or waived by reason of any failure or failures to enforce the same. 

8.6 Third Parties - Benefit. All conditions of the obligations of Lender to make advances hereunder are imposed solely and
exclusively for the benefit of Lender and its assigns, and no other persons shall have standing to require satisfaction of such conditions in accordance with their terms or be entitled to assume that Lender will refuse to make advances in the
absence of strict compliance with any or all thereof and no other person shall, under any circumstances, be deemed to be a beneficiary of such conditions, any or all of which may be freely waived in whole or in part by Lender at any time in the sole
and absolute exercise of its discretion. The terms and provisions of this Loan Agreement are for the benefit of the parties hereto and, except as herein specifically provided, no other person shall have any right or cause of action on account
thereof. 
 Lender shall in no event be responsible or liable to any person other than to Borrower for any advance of or failure to advance the
proceeds of the Line of Credit or any part thereof, and no contractor, subcontractor, materialman or other person shall have any right or claim against Lender pursuant to this Loan Agreement or the administration thereof. 

8.7 Conditions - Verification. Any condition of this Loan Agreement which requires the submission of evidence of the existence or
non-existence of a specified fact or facts implies as a condition the existence or non-existence, as the case may be, of such fact or facts and Lender shall, at all times, be free independently to establish to its satisfaction and in its absolute
discretion such existence or non-existence. 

  
 18 

 8.8 Captions and Headings. The captions and headings contained in this Loan Agreement
are included herein for convenience of reference only and shall not be considered a part hereof and are not in any way intended to limit or enlarge the terms hereof. 
 8.9 Counterparts. This Loan Agreement may be executed in any number of counterparts, each of which shall be considered an original for all purposes; provided, however, that all such counterparts
shall together constitute one and the same instrument. 
 8.10 Notices. All notices, demands, requests and other
communications required pursuant to the provisions of this Loan Agreement shall be in writing and shall be deemed to have been properly given or served for all purposes when presented personally or sent by hand delivery, Federal Express or other
similar overnight service or United States Registered or Certified Mail, postage prepaid, to the respective addresses as follows: 
  

	 	(a)	If to Borrower, then to it at: 

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

Attn: Christopher Clemente 
 With a copy to: 
 c/o Comstock Holding Companies, Inc. 

1886 Metro Center Drive, 4th floor 
 Reston, Virginia 20190 
 Attn: Jubal Thompson 

 

	 	(b)	If to Lender, then to it at: 

8270 Greensboro Drive, Suite 500 
 McLean, Virginia 22102 
 Attention: Real Estate Department 

Any of the parties may designate a change of address by notice in writing to the other parties. Whenever in this Loan Agreement the giving of notice by
mail or otherwise is required, the giving of such notice may be waived in writing by the person or persons entitled to receive such notice. Notwithstanding the foregoing, no notice of change of address shall be effective except upon actual receipt.
This Section shall not be construed in any way to affect or impair any waiver of notice or demand provided in the Note or any of the Security Documents or to require giving of notice or demand to or upon any person in any situation or for any
reason. 
 8.11 Signs; Publicity. At Lender’s request and expense, Borrower shall place a sign or signs (in a form
or forms which Borrower has reasonably approved) at a location or locations on the Mortgaged Property satisfactory to Lender and Borrower, which signs shall recite, among other things, that Lender is financing the construction of the Improvements.
Borrower expressly authorizes Lender to prepare and to furnish to the news media for publication from time to time news releases with respect to the Project, specifically to include but not limited to releases detailing Lender’s involvement
with the financing of the Project. 
 8.12 Applicable Law. This Loan Agreement shall be governed by and construed,
interpreted and enforced in accordance with and pursuant to the laws of the Commonwealth of Virginia. In the event that the “choice of law” rules of the Commonwealth of Virginia can be construed or interpreted to require the laws of
another jurisdiction to govern, the “choice of law” rules of the Commonwealth of Virginia shall not apply. 

  
 19 

 8.13 Time of Essence. Time shall be of the essence of each and every provision of
this Loan Agreement of which time is an element. 
 8.14 Commitment. To the extent the terms of the Commitment are not
incorporated in this Loan Agreement, the terms and conditions of the Commitment shall survive the execution of this Loan Agreement and shall continue to be the obligation of Borrower until the Line of Credit is paid in full. Any discrepancy between
the terms of the Commitment and the terms of the Security Documents shall be construed in favor of the Security Documents. Borrower agrees, from time to time, to execute and acknowledge such amendments or modifications as may reasonably be required
to add, delete or modify provisions to this Loan Agreement in order to cause this Loan Agreement to conform to the terms of the Commitment. 
 IN WITNESS WHEREOF, Borrower and Lender have executed and delivered these presents or caused these presents to be executed and delivered as of the year and day first above written. 

 

							
	BORROWER:
	
	COMSTOCK EASTGATE, L.C., a Virginia limited liability company
			
	By:	 		 	Comstock Holding Companies, Inc., a Delaware corporation, its manager
				
		 	By:	 	  
	 	(SEAL)
		 		 	Christopher D. Clemente	 	
		 		 	Chief Executive Officer	 	
	
	LENDER:

 CARDINAL BANK, a banking corporation organized under the laws of the Commonwealth of
Virginia 
  

					
	By:	 	  
	 	(SEAL)
		 	Richard F. Schoen	 	
		 	Senior Vice President	 	

  
 20 

 EXHIBIT “A” 

All those certain lots, pieces or parcels of land situate, lying and being in Loudoun County, Virginia, being more particularly described
as follows: 
 PHASE 3, THE VILLAS AT EASTGATE CONDOMINIUM, as established by the Declaration of The Villas at Eastgate
Condominium recorded July 20, 2012 as Instrument No. 20120720-0055207, with the plat recorded as Instrument No. 20120720-0055208 and 20120720-0055209 among the Land Records of the Clerk of the Circuit Court of Loudoun County,
Virginia. 
 And being more particularly described as: 
 Beginning at the easterly corner of Phase 2, said corner lines on a southerly line of Phase A; thence departing Phase 2 and with the southerly line of Phase A the following five (5) courses and
distances: 
  

	 	1.	S 65o54’04” E, a distance of 75.96 feet to a point; 

  

	 	2.	43.04 feet along the arc of a curve to the left having a radius of 78.00 feet and with a chord bearing and distance of S 81°42’30” E, 42.50 feet to a
point; 

  

	 	3.	S 07o30’56” E, a distance of 41.35 feet to a point; 

  

	 	4.	S 25o42’38” W, a distance of 75.44 feet to a point; 

  

	 	5.	S 60o19’11” W, a distance of 40.25 feet to a point on a northerly line of Parcel A, Section 1, Phase 1, East Gate One; 

Thence departing the Phase A, and with a northerly line of Parcel A, Section 1, Phase 1, East Gate One, N 65o52’25” W,
a distance of 112.68 feet to a point, said point being the southerly corner of Phase 2; 
 Thence departing Parcel A,
Section 1, Phase 1, East Gate One and with the easterly line of Phase 2, N 24o07’35” E, a distance of 131.47 feet to the point of beginning. 
 Containing 17,707 square feet or 0.40650 acres of land. 

  
 21 

 EXHIBIT “B” 

Pro Forma Per Unit Cost and Loan Budget 

  
 22 

 EXHIBIT “C” 

Approved Final Project Cost Budget and Draw Schedule 

  
 23 

 EXHIBIT A 
 FORM OF 
          AMENDMENT TO DEED OF
TRUST 
 THIS          AMENDMENT TO DEED OF TRUST (“Deed of Trust
Amendment”), made this      day of             , 201  , by and among COMSTOCK EASTGATE, L.C., a Virginia limited liability company
(“Grantor”), and
                                        ,
residing in Fairfax County, Virginia and
                                        ,
residing in Fairfax County, Virginia, either of whom may act (collectively, “Trustee”), and CARDINAL BANK, a banking corporation organized under the laws of the Commonwealth of Virginia, its successors and assigns
(“Beneficiary”). 
 RECITALS 
 R-1. Grantor is indebted (the “Loan”) to Beneficiary pursuant to that certain Credit Line Deed of Trust Note in the maximum principal amount of $2,500,000 dated as of September 27, 2012
(the “Note”); and 
 R-2. By that certain Credit Line Deed of Trust, Assignment and Security Agreement dated as of
September 27, 2012 and recorded as Instrument #                              among the land records of
Loudoun County, Virginia (the “Deed of Trust”), Grantor granted to the Trustee an interest in certain real property more particularly described therein to secure repayment of the Note; and 

R-3. Grantor has requested and Beneficiary has agreed to fund a portion of the costs of making certain improvements to the parcels of
land situated, lying and being in Loudoun County, Virginia, as more particularly described on Exhibit A attached hereto and incorporated herein by this reference (the “Additional Land”); and 

R-4. The parties hereto desire to modify and amend the Deed of Trust for the purpose of extending the lien and operation of the Deed of
Trust to include the Additional Land. 
 NOW, THEREFORE, in consideration of the premises and other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, and in order to induce Beneficiary to fund a portion of the construction costs with respect to the Additional Land, Grantor and Beneficiary agree as follows: 

1. All references in the Deed of Trust to the Mortgaged Property shall include the Additional Land (as hereinabove defined). 

2. Grantor by these presents does grant, bargain, sell and convey, effective as of the date hereof, unto the Trustee, his survivor and
other successor and successors in trust, to have and to hold in trust in accordance with the terms and conditions of the Deed of Trust, which is hereby incorporated herein by reference, as modified herein, all of Grantor’s right, title and
interest in and to the Additional Land, together with (i) all buildings and improvements now or hereafter constructed thereon; (ii) all the estate and rights, if any, of Grantor in and to all land lying in public and private streets, roads
and alleyways abutting the Additional Land; (iii) all easements, rights of way, privileges and appurtenances now or hereafter belonging to or in any way related to the Additional Land; (iv) all fixtures, machinery, equipment, building
materials and other personal property of every nature whatsoever now or hereafter located in, or on, or used, or intended to be used, in connection with the operation of the above-described property, including, but without limitation, heating, air
conditioning, cooking, refrigerating, plumbing, and electrical apparatus and equipment, boilers, engines, motors, dynamos, generating equipment, piping and plumbing fixtures, ventilating and vacuum cleaning systems, fire extinguishing apparatus, gas
and electric fixtures, elevators, escalators, partitions, mantels, built-in mirrors, disposals, washers, dryers, window shades, blinds, screens, storm sashes, storm doors, awnings, carpeting, underpadding, drapes, plants and shrubbery, and
furnishings of public spaces, halls and lobbies, all of which personal property, including replacements thereof and additions thereto, shall be deemed part of the realty hereby conveyed (and Grantor hereby declares such personal property to be part
of said realty, whether attached thereto or not, and subject to the lien hereby created); and (v) all proceeds of the conversion, whether voluntary or involuntary, of any of the above-described property into cash or other liquid claims,
including, without limitation, all awards, payments or proceeds, including interest thereon, and the right to receive the same, which may be made as a result of any casualty, any exercise of the right of eminent domain or deed in lieu thereof, the
alteration of the grade of any street and any injury to or decrease in the value of the above-described property, together with all costs and expenses incurred by Beneficiary, in connection with the collection of such awards, payments and proceeds,
including, without limitation, reasonable attorney’s fees, Grantor hereby confirms such grant of property as security for all of Grantor’s obligations thereunder, including payment and performance of the Note. It is the intent of the
parties hereto that the lien of the Deed of Trust shall be and does constitute a first priority lien on the Property notwithstanding any claim or acts to the contrary. 
 3. Grantor hereby reconfirms the grant of property contained in the Deed of Trust as security for all of Grantor’s obligations thereunder, including payment and performance of the Note. It is the
intent of the parties hereto that the lien of the Deed of Trust shall have constituted and does constitute a continuing and uninterrupted first priority lien notwithstanding any claim or acts to the contrary. 

  
 24 

 4. To the best of Grantor’s knowledge, as of the date hereof, there are no defenses,
offsets or counterclaims to the Note or the Deed of Trust as hereby modified. Except as expressly modified herein, the Deed of Trust remains in full force and effect without modification, and is hereby ratified and affirmed. This Deed of Trust
Amendment is not intended to be, and shall not constitute a substitution or novation of the Note, Deed of Trust, or any other instruments evidencing or securing repayment of the Note. Grantor acknowledges and agrees that, to the best of
Grantor’s knowledge, Beneficiary has not defaulted under any obligations to Grantor. 
 IN WITNESS WHEREOF, Grantor,
Trustee (at the direction of Beneficiary as evidenced by its signature hereto) and Beneficiary have caused this Deed of Trust Amendment to be executed under seal by their representatives thereunto duly authorized. 

 

											
		 		 		 	GRANTOR:
				
		 		 		 	COMSTOCK EASTGATE, L.C., a Virginia limited liability company
				
		 	By:	 	Comstock Holding Companies, Inc., a Delaware corporation, its manager	 	
						
		 		 		 	By:	 	  
	 	(SEAL)
		 		 		 		 	Christopher D. Clemente	 	
		 		 		 		 	Chief Executive Officer  	 	

 COMMONWEALTH OF VIRGINIA, 
 CITY/COUNTY OF                     , TO WIT: 

I HEREBY CERTIFY that on this      day of             ,
201  , before me in the jurisdiction aforesaid personally appeared Christopher D. Clemente, the duly authorized Chief Executive Officer of Comstock Holding Companies, Inc., manager of Comstock Eastgate, L.C., a Virginia limited liability
company, known to me (or satisfactorily proven) to be the person whose name is subscribed to the within instrument, and acknowledged that he executed the same for the purposes therein contained as the duly authorized Chief Executive Officer of
Comstock Holding Companies, Inc. 
 WITNESS my hand and Notarial Seal. 

 

			
	  
	 	(SEAL)
	Notary Public	 	

  

											
	My Commission Expires: 	 	 	 		 	Registration #: 	 	 	 	

  
 25 

 
					
	BENEFICIARY:
	
	CARDINAL BANK, a banking corporation organized under the laws of the Commonwealth of Virginia
			
	By:	 	  
	 	(SEAL)
	Name:	 	  
	 	
	Title:	 	  
	 	
	
	TRUSTEES:
		
	  
	 	(SEAL)
	Name:	 	  
	 	
		 	Sole Acting Trustee	 	

 COMMONWEALTH OF VIRGINIA, 
 CITY/COUNTY OF                     , TO WIT: 

I HEREBY CERTIFY, that on this      day of             ,
201  , before me, the undersigned Notary Public of said Commonwealth, personally appeared
                            , who acknowledged himself to be the
                             of Cardinal Bank, a banking corporation organized under the laws of the
Commonwealth of Virginia, known to me (or satisfactorily proven) to be the person whose name is subscribed to the within instrument, and acknowledged that he executed the same for the purposes therein contained as the duly authorized
                     of said corporation. 
 WITNESS my hand and Notarial Seal. 
  

			
	  
	 	(SEAL)
	Notary Public	 	

  

											
	My Commission Expires: 	 	 	 		 	Registration #: 	 	 	 	

  
 26 

 COMMONWEALTH OF VIRGINIA, 
 CITY/COUNTY OF                     , TO WIT: 

I HEREBY CERTIFY, that on this      day of             ,
201  , before me, the undersigned Notary Public of said Commonwealth, personally appeared
                            , Trustee, known to me (or satisfactorily proven) to be the person whose name is
subscribed to the within instrument, and acknowledged that he executed the same for the purposes therein contained. 
 WITNESS
my hand and Notarial Seal. 
  

			
	  
	 	(SEAL)
	Notary Public	 	

  

											
	My Commission Expires: 	 	 	 		 	Registration #: 	 	 	 	

  
 27 

 EXHIBIT A 
 Legal Description 
 All those certain lots, pieces or parcels of land
situate, lying and being in Loudoun County, Virginia, being more particularly described as follows: 

  
 28

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