Document:

exv10w49

 

Exhibit
10.49

AGREEMENT

(Marketing and Sale of Condominium Units)

     THIS AGREEMENT (“Agreement”) is made as of the 21st day of December, 2006, by and
between Comstock Countryside, L.C., a Virginia limited liability company (“Countryside”), having
its offices at 11465 Sunset Hills Road, 5th Floor, Reston, Virginia 20190 and
Merion-Loudoun, LC, a Virginia limited liability company (“Owner”), having its offices at 928
Mackall Ave, McLean, Virginia 22101.

WITNESSETH:

     WHEREAS, Countryside is the Declarant of The Villas at Countryside Condominium (the
“Condominium”) in Sterling, Virginia and the owner of certain condominium units therein, as
identified on Schedule 1 attached hereto (the “Units”);

     WHEREAS, concurrently herewith, Countryside is selling the Units to Owner, and in connection
therewith, is transferring certain Special Declarant Rights to Owner;

     WHEREAS, the Owner desires to have Countryside continue to carry out the marketing and sales
activities for the Units;

     WHEREAS, Countryside desires to assume such responsibilities on and in accordance with the
terms and conditions of this Agreement.

     NOW, THEREFORE, for and in consideration of the premises and mutual covenants and agreement of
the parties contained herein, and of other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties hereto, intending to be legally bound, do
hereby agree as follows:

ARTICLE I. MARKETING AND SALE

     1.1. Subject to the terms of this Agreement, the Owner grants to Countryside the authority to
take all actions, as Countryside deems necessary and appropriate, at Countryside’s sole cost and
expense, to actively and continuously market and sell the Units, and, to the extent that the
estimated Net Price (defined herein) for a given Unit exceeds its Base Price (defined herein), to
enter into contracts (the “Outsale Contracts”), as the exclusive agent for and on the
Owner’s behalf, for the sale of Units. Countryside will provide, under its supervision and
management, at Countryside’s sole cost and expense, either its own employees or employees of a
brokerage company (which may be affiliated or unaffiliated with the Company), to market and sell
the Units and to manage the continuing administrative obligations of the Owner as Co-Declarant in
connection with the sale of the Units to Owner. The form of the Outsale Contracts shall be the
form currently used by Countryside for the sale of units at the Condominium to retail purchasers,
with an Addendum in the form attached hereto as Exhibit A, and shall provide for a purchase
price and earnest money deposit in such amount as may be agreed to by the Owner and Countryside
from time to time. The Owner agrees to enter into any additional documents which may be necessary
to confirm or ratify the authority granted to Countryside pursuant to the provisions of this
Section.

1

 

     1.2. All deeds for the conveyance of any Unit shall be in the name of the Owner as grantor.

     1.3 Countryside shall comply with the applicable governing laws and regulations in effect in
the jurisdiction in which the Units are located to perform its marketing and sales duties.

ARTICLE II. PAYMENTS TO COUNTRYSIDE

     2.1. Owner shall not be obligated to reimburse Countryside for any costs incurred by
Countryside in carrying out its obligations under this Agreement unless Owner shall have previously
agreed to do so in writing.

     2.2. Owner shall pay Countryside an amount equal to the difference between the Net Price for
each Unit settled, and the price for such Unit listed on Schedule 1 attached hereto (the
“Base Price”). For purposes hereof, the “Net Price” shall refer to the sales price for the Unit
less settlement expenses (such as real estate commissions, recording and closing costs, incentives
to buyers and the like) paid by Owner.

     2.3. So long as this Agreement shall remain in force, the foregoing amounts (the “Amounts
Payable”) shall be paid to Countryside upon the conveyance of each Unit regardless of whether
Countryside was the procuring cause of such sale. The Amounts Payable are not a commission, but an
allocation of profit which was negotiated in conjunction with the sale of the Units to Owner by
Countryside. The Amounts Payable shall be due and payable at the time of settlement on each Unit,
and shall be reflected as an amount due to Countryside on the settlement statement.

     2.4. If this Agreement has been terminated by Countryside as a result of a material breach by
Owner pursuant to Section 4.4 hereof, then the Amounts Payable shall remain due and payable to
Countryside pursuant to the terms of this Agreement despite the termination.

ARTICLE III. PAYMENTS TO OWNER

     3.1. During the term of this Agreement, Countryside shall pay Owner the sum of $1,500 per
month for each Unit which has not been conveyed to a retail purchaser (the “Monthly Payment”).
The foregoing monthly amount shall be prorated for any month in which a particular Unit was
conveyed. Owner hereby agrees to apply each Monthly Payment toward the interest carry on the first
mortgage encumbering the Units. Failure to do so shall constitute a material breach of this
Agreement. Each Monthly Payment shall be due and payable on the fifth (5th) day of each
calendar month.

     3.2. If Countryside shall fail to make a Monthly Payment on or before the due date, and such
failure shall continue for more than ten (10) business days after having received written notice
thereof from Owner, then Owner shall have the right to terminate this Agreement by delivering
written notice thereof to Countryside. In the event of such duly effected termination, Countryside
shall have no further right to any Amounts Payable on any Units which were not settled prior to the
termination.

2

 

     3.3. Upon full execution of this Agreement, Countryside shall make an initial payment (the
“Initial Payment”) of the total amount of Monthly Payments due for the first three (3) months (the
“Initial Period”) of the Fixed Term. In the event any Units are settled prior to the expiration of
the Initial Period, then the portion of the Initial Payment ascribed to the post-settlement period
of the settled Units shall, at Countryside’s election, either be (a) paid as a reimbursement to
Countryside at settlement, or (b) applied as a credit against the Monthly Payment due during the
fourth (4th) month of the Fixed Term.

ARTICLE IV. TERM

     4.1. The fixed term of this Agreement (the “Fixed Term”) shall be 18 months, commencing
January 1, 2007 and expiring June 30, 2008.

     4.2. In the event Countryside has settled at least 20 Units during the Fixed Term (or can
demonstrate that it is likely to settle at least 20 Units within thirty days thereafter), then it
shall have the unilateral right to extend the term of this Agreement for an additional 6 months,
through December 31, 2008 (the “Extension Term”).

     4.3. Neither party shall have the unilateral right to terminate this Agreement without cause.

     4.4. In the event either party hereto commits a material breach of this Agreement, then the
other party shall have the right to terminate the same if the defaulting party fails to rectify the
breach within ten days after receiving written notice thereof from the other party. In the event
of a material breach by Countryside, Owner’s sole remedy shall be to terminate this Agreement
pursuant to Section 3.2 hereof. In the event of a material breach by Owner, Countryside shall have
all of its rights and remedies available at law to recover its actual damages for such breach, and
all of its rights and remedies at equity to enforce any equitable remedy. If Owner should
terminate this Agreement as a result of a material default by Countryside, as aforesaid, then Owner
shall have a temporary license to use the marketing materials being used by Countryside immediately
prior to the termination of this Agreement, but only to the extent Countryside has the legal right
to grant such license, and only until the earlier of (a) settlement on the final Unit, or (b) two
years from the date hereof.

ARTICLE V. USE OF MODEL UNITS; COUNTRYSIDE’S BOOKS AND RECORDS

     5.1 During the term of this Agreement, Countryside shall have a license to use the model
units for performing its responsibilities hereunder. During such time, Countryside shall pay for
all of the operating expenses associated with use of the model units, such as (without limitation)
the cost of utilities; however, Countryside shall not be responsible for paying costs associated
with ownership of the model units, such as (without limitation) real estate taxes and mortgage
interest.

     5.2. Countryside will keep accurate books of account for the work performed under this
Agreement, showing the costs incurred hereunder, which books of account and all supporting data
shall, during regular business hours and at reasonable times, be open to inspection and copying by
the Owner or its authorized representatives, and shall be retained and available for reference for
a period of at least one year after the work has been completed.

3

 

ARTICLE VI. INDEMNIFICATION

     Owner hereby agrees to indemnify Countryside, its agents and employees, for any damages
incurred by Countryside, its agents or employees, in executing the responsibilities of Countryside
hereunder, arising from the gross negligence or willful misconduct of Owner, its agent or
employees. Countryside hereby agrees to indemnify Owner, its agents and employees, for any damages
incurred by Owner, its agents or employees, arising from the gross negligence or willful misconduct
of Countryside, its agent or employees, in executing the responsibilities of Countryside hereunder.

ARTICLE VII. MISCELLANEOUS

     7.1. The provisions of this Agreement shall be binding upon and inure to the benefit of the
parties hereto and their respective successors and assigns; provided, that neither party may assign
any of its rights or obligations hereunder without the prior written agreement of the non-assigning
party.

     7.2. All notices and other communications hereunder shall be in writing and shall be deemed
duly given if hand delivered, or mailed by certified mail, return receipt requested, postage
prepaid, to the addresses set forth in the preamble of this Agreement, or to such other address of
which one party hereto notifies the other.

     7.3. If any term, covenant, or condition of this Agreement or the application thereof to any
party shall be held invalid or unenforceable, the remaining terms, covenants, and conditions shall
not be affected thereby, and such remaining terms, covenants, and conditions shall be valid and
enforceable to the fullest extent permitted by law.

     7.4. The interpretation and enforcement of this Agreement shall be governed by the laws of
the Commonwealth of Virginia , without respect to its conflicts of laws principles.

     7.5. This Agreement may be amended, modified, or supplemented only by written agreement of
the parties. The waiver by any party hereto of a breach of any provision contained herein shall be
in writing, signed by the waiving party, and shall in no way be construed as a waiver of any prior
or succeeding breach of such provision or the waiver of the provision itself.

     7.6. Each party hereto shall do and perform, or cause to be done and performed, all such
further acts and things and shall execute and deliver all such other agreements, certificates,
instruments, and documents as any other party hereto or person otherwise subject hereto may
reasonably request in order to carry out the intent and accomplish the purposes of this Agreement
and the consummation of the transactions contemplated hereby.

[Signature Page to Follow]

4

 

     IN WITNESS WHEREOF, this Agreement has been duly executed by each of the parties hereto on the
date opposite such party’s signature, and the provisions hereof shall be deemed effective as of the
date first above written.

OWNER:

Merion-Loudoun, LC

	 	 	 
	By:

	 	/s/ William P. Bensten
	 

	 	 
	 

	 	William P. Bensten
	 

	 	Managing Member

COUNTRYSIDE:

Comstock Countryside, L.C.

	 	 	 	 	 
	By:	 	Comstock Homebuilding Companies, Inc.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Christopher Clemente
	 

	 	 	 	 
	 

	 	 	 	Christopher Clemente
	 

	 	 	 	Chief Executive Officer

5exv10w50

 

Exhibit
10.50

CONSULTING AGREEMENT

     THIS CONSULTING AGREEMENT (this “Agreement”) is entered into as of the 21st day of
December, 2006, by and between Comstock Homebuilding Companies, Inc., a Delaware corporation
(“Comstock”), and The Merion Group, L.C. (“Consultant”).

     WHEREAS, Comstock desires that the Consultant provide certain consulting services (the
“Services”) related to The Eclipse on Center Park Condominium in Arlington, Virginia (the
“Condominium”) and other projects being developed by Comstock in the Washington, D.C. metropolitan
area, and Consultant has agreed to provide such Services pursuant to the terms and conditions of
this Agreement.

     NOW, THEREFORE, for and in consideration of the premises herein contained, and other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties
hereto do hereby agree as follows:

     1. Services. The Services shall be defined to include sales management, marketing,
and production coordination services related to the Condominium and other existing and/or future
projects of Comstock in the Washington, D.C. metropolitan area, as designated by Comstock from time
to time and shall involve the Consultant providing an average of 20 hours of consultation time per
week during the Fixed Term (hereinafter defined). To facilitate Consultant’s performance of the
Services, Comstock shall provide Consultant, without charge, with the use of an office and
ancillary facilities within Comstock’s office premises during the term of this Agreement.

     2. Consulting Fee.

     (a) In consideration of the Consultant providing the Services to Comstock, Comstock agrees to
pay to the Consultant a fee (the “Fixed Term Consulting Fee”) in the amount of Twenty-Five Thousand
Nine Hundred and No/100 Dollars ($25,900.00) per month during the first three (3) months of the
Fixed Term, and the amount of Fifteen Thousand Nine Hundred and No/100 Dollars ($15,900.00) per
month during the final three (3) months of the Fixed Term. Should Comstock elect to terminate this
Agreement at any time, Comstock shall nevertheless remain obligated to pay the Fixed Term
Consulting Fee to Consultant through the expiration of the Fixed Term.

     (b) In the event Comstock requests, in writing, that the Consultant commit time above and
beyond those called for to perform the Services pursuant to Section 1 herein (including without
limitation those services described in Section 6 of the Separation Agreement entered into by
Comstock and Consultant as of even date herewith), then the fee to be paid to Consultant (the
“Additional Fees”) in consideration of those additional hours shall be $200 per hour. The
Additional Fees shall be due and payable to Consultant within fifteen (15) business days after
Consultant submits an invoice therefor to Comstock.

     (c) Consultant shall keep time sheets memorializing the number of hours spent and the Services
provided for each calendar month during the term of this Agreement.

1 of 4

 

In the event Consultant spends fewer than 80 hours in a calendar month, then no Additional Fees shall be earned
by Consultant until Consultant has provided Services for the number of hours necessary to make-up
the deficit from the previous month(s).

     (d) Comstock hereby agrees to reimburse Consultant for all costs incurred by Consultant in
carrying out its obligations under this Agreement, including, without limitation, travel costs, so
long as such costs were pre-approved in writing (which may include e-mail) by Comstock.

     3. Agents and Commission. Comstock and the Consultant each warrant to the other that
neither had dealt with an agent, broker or finder with respect to the transaction contemplated by
this Agreement. In the event any claim for commission or finder’s fee is brought by any person or
entity as a consequence of the transaction contemplated hereby, then the party whose acts give rise
to such claim shall indemnify and hold harmless the other party against any loss, cost or expense
of any nature, including, but not limited to, court costs and reasonable attorneys’ fees, arising
as a consequence of the claim for a commission or fee.

     4. Representations and Warranties by Consultant. Consultant has the power and
authority to enter into this Agreement and perform its obligations hereunder; the performance by
Consultant of its obligations hereunder does not and will not violate any law; and neither this
Agreement nor the performance by Consultant of its obligations hereunder violates any agreement or
contract to which Consultant is bound or a party. This Agreement is binding upon and enforceable
against Consultant in accordance with its terms, and the person signing this Agreement on behalf of
Consultant is authorized to do so.

     5. Indemnification. As specifically provided for and limited herby, Consultant shall
protect, defend, hold harmless, and indemnify Comstock and its partners, affiliates, successors,
heirs, assigns, directors, officers, employees and agents from and against all claims, actions,
liabilities, damages, losses, costs and expenses (including court costs and attorneys’ fees)
arising out of or incidental to the performance by Consultant of any duties and obligations
pursuant to this Agreement, or any breach by Consultant of the representations and warranties of
Consultant under this Agreement; provided, however, that such indemnification shall be strictly
limited to the actual damages suffered and shall in no event exceed the total compensation paid by
Comstock to Consultant hereunder. The foregoing indemnification shall survive the expiration or
termination of this Agreement and the purchase and sale of any property or potential transaction
for which Consultant has been retained hereunder.

     6. Term. The fixed term of this Agreement (the “Fixed Term”) shall commence on
January 1, 2007 and shall continue through June 30, 2007. It is understood and agreed that
Comstock may terminate this Agreement without cause upon delivering written notice thereof to
Consultant, whereupon the parties hereto shall have no further liability to each other, except for
the requirement in Section 2 hereof regarding Comstock’s obligation to pay the Fixed-Term
Consultant Fee to Consultant through the expiration of the Fixed Term. Upon the expiration of the
Fixed Term, the parties hereto may agree to extend the term of this Agreement on a month-to-month
basis (the “Month-To-Month Term”). The Month-To-Month Term may be terminated by either party
hereto with or without cause immediately upon delivery of written notice thereof
from one party to the other. Unless otherwise agreed to in writing by the parties hereto, the fees
charged by Consultant during the Month-To-Month Term shall be the same as the Additional Fees.

2 of 4

 

     7. Notice. All notices and other communications hereunder shall be in writing and be
deemed duly given if personally delivered, telecopied with proof of receipt, or sent by nationally
recognized overnight courier, or mailed by certified mail, return receipt requested, postage
prepaid:

	 	 	 
	If to Comstock:

	 	Comstock Homebuilding Companies Inc.
	 

	 	11465 Sunset Hills Road, Suite 510
	 

	 	Reston, Virginia 20190
	 

	 	Attn: Christopher Clemente
	 

	 	Telecopier (703) 760-1520
	 
	 	 
	If to Consultant:

	 	William P. Bensten
	 

	 	928 Mackall Avenue
	 

	 	McLean, Virginia 22101
	 

	 	Telecopier (703) 442-8714

The parties hereto shall be responsible for notifying each other of any change of address.

     8. Assignment. Except for an assignment to an affiliate of Comstock, the benefits
hereunder are not assignable by either party without the written consent of the other party.

     9. Construction of Agreement.

          a. This Agreement may be executed in several counterparts, each of which shall be deemed an
original, but all of which shall constitute one and the same instrument.

          b. Titles to paragraphs and subparagraphs are for convenience only and are not intended to
limit or expand the covenants and obligations expressed thereunder.

          c. Time shall be of the essence with regard to all terms and conditions of this Agreement.

          d. This Agreement contains the entire agreement among the parties hereto with respect to the
subject matter hereof. No change or modification of this Agreement, or any waiver of the
provisions hereof, shall be valid unless same is in writing and signed by the parties hereto.

          e. Waiver of performance or satisfaction of timely performance or the satisfaction of any
condition, covenant, requirement, obligation or warranty by one party shall not be deemed a waiver
of the performance or satisfaction of any other condition, covenant, requirement, obligation or
warranty unless specifically consented to in writing.

          f. This Agreement shall be construed in accordance with the laws of the Commonwealth of Virginia, without regard to its conflicts of laws principles.

3 of 4

 

          g. Nothing contained herein is intended to make, nor be construed to make, Comstock and
Consultant as partners or joint venturers.

          h. If any term, covenant or condition of this Agreement or the application thereof to any part
shall be invalid or unenforceable, the remaining terms, covenants and conditions or circumstances
shall not be affected thereby, and each term shall be valid and enforceable to the fullest extent
permitted by law.

          i. In the event any party is required to resort to litigation to enforce its rights hereunder,
the parties hereto agree that any judgment awarded to the substantially prevailing party
shall include all litigation expenses, including reasonable attorneys’ fees and costs. The parties
hereto hereby consent to the jurisdiction of the Circuit Court of Fairfax County with regard to any
litigation arising out of this Agreement, and hereby waive their right to a jury trial.

     WITNESS the following signatures and seals:

	 	 	 	 	 
	 	COMSTOCK:

COMSTOCK HOMEBULDING COMPANIES, INC.,

a Delaware corporation, Manager

 	 
	 	By:  	/s/ Christopher Clemente
 	 
	 	 	Christopher Clemente 	 
	 	 	Chief Executive Officer 	 
	 
	 	CONSULTANT:

 	 
	 	By:  	/s/ Willaim P. Bensten
 	 
	 	 	William P. Bensten 	 
	 	 	 	 
	 

4 of 4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00119-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00119-of-00352.parquet"}]]