Document:

Exhibit 10.79

 Exhibit 10.79 
 NORTH CAROLINA 
 MUTUAL RELEASE AND SETTLEMENT AGREEMENT 
 WAKE COUNTY 
 This MUTUAL RELEASE
AND SETTLEMENT AGREEMENT (“Agreement”) is made by and between COMSTOCK HOMES OF RALEIGH, LLC, a North Carolina limited liability company (“Plaintiff”), PROVIDENCE DEVELOPMENT OF RALEIGH, LLC, a North limited liability company
(“Defendant”) and MANNING FULTON & SKINNER, PA, a North Carolina professional association (“Escrow Agent”). The parties to this Agreement other than Escrow Agent may be collectively referred to herein as “the
parties.” 
 WHEREAS, the parties executed an Agreement for the purchase and Sale of Subdivision Lots and Option Agreement
dated December 16, 2005, as amended (“Contract”), for the sale and purchase of approximately 80 townhome lots and 148 single family lots in the subdivision known as Providence (the “Development”); 
 WHEREAS, Providence of Raleigh Subdivision is a planned community of more than 20 residential lots created within this State on or after
January 1, 1999, and is therefore a “planned community” as that term is defined in Chapter 47F of the North Carolina General Statutes, commonly known as the “North Carolina Planned Community Act” (hereinafter, the
“Planned Community Act” or the “Act”); 
 WHEREAS, Defendant is the Declarant under that certain Declaration
of Covenants, Conditions and Restrictions for Providence of Raleigh Subdivision recorded in Book 12053, page 2419, Wake County Registry, as supplemented by that certain Annexation Declaration recorded in Book 12451, page 2197, re-recorded in Book
12623, page 2662, both of the Wake County Registry (the “Subdivision Declaration”) and that certain Declaration of Covenants, Conditions and Restrictions for Providence Subdivision, Phase 2 Townhouses recorded in Book 12451, page 2202,
Wake County Registry (the “Townhouse Declaration”); 
 WHEREAS, a dispute has arisen between the parties pertaining to
the Contract and other action taken by the parties as described in Civil Action No. 07 CVS 15940 filed in Wake County, North Carolina Superior Court (the “Lawsuit”) and in the related Civil Action No. 08 SP 6183 filed in Wake
County, North Carolina Superior Court (the “TOA Foreclosure Action”); 
 WHEREAS, the Initial Escrow Deposit posted by
Plaintiff under the Contract has been released by the Escrow Agent to Defendant; 
 WHEREAS, Section 47F-2-117(a) of the
Act provides that the Subdivision Declaration and the Townhouse Declaration may be amended by affirmative vote or written agreement signed by lot owners of lots to which at least sixty-seven percent (67%) of the votes in each respective
association are allocated, or any larger majority the declaration for such association specifies; 
 WHEREAS, Article IX,
Section 4 of the Subdivision Declaration and Article IX, Section 4 of the Townhouse Declaration provide respectively that each such declaration may be amended during the first twenty-year period by an instrument signed by not less than
seventy-five percent (75%) of the lot owners subject to such declaration; 

 WHEREAS, at this time, Plaintiff is the owner of fifty-two (52) lots and Defendant is
the owner of thirty-one (31) lots, and together the parties are the owners of eighty-three (83) of the one hundred and seven (107) lots subject to the Subdivision Declaration, and Plaintiff is the owner of eighteen (18) of the
eighteen (18) townhouse lots subject to the Townhouse Declaration; 
 WHEREAS, the parties to this Agreement wish to revise
and amend the Subdivision Declaration and/or the Townhouse Declaration (and, to the extent necessary to accomplish the same results, the Bylaws for each association), in the following respects: (1) to allow vinyl siding to be used within the
Development ; (2) to change the side yard setbacks as provided in the Subdivision Declaration to conform with those provided in the Raleigh City Code; (3) to remove the blanket prohibition of wooden fences, to increase the maximum height
limitation for fences to six feet (6.0’), and to allow the Architectural Review Board the discretion to approve all proposed fences on a case-by-case basis; and (4) to allow the regular association dues payable by the Declarant under the
Declarations to accrue and become payable by Declarant at the time of closing on the sale of any lot to a builder and to allow the regular association dues payable by any builder to accrue and become payable by any builder at the time of closing of
a completed dwelling to the owner-occupant; and (5) to clarify that the Declarant has the right to make amendments to the Subdivision Declaration and the Townhouse Declaration, in its sole discretion, without the approval of the lot owners, in
the course of exercising the Declarant’s “development rights” as provided in the Subdivision Declaration and the Townhouse Declaration and the Act; 
 WHEREAS, the parties to this Agreement desire to settle all controversies between them; 
 NOW, THEREFORE, in consideration of the mutual covenants set forth below and other good and valuable consideration, the parties hereto represent and agree: 
 1. Nature of Agreement. This Agreement is a mutual release and settlement agreement that completely resolves the Lawsuit, the TOA
Foreclosure Action, and any other disputes between and among Plaintiff and Defendant. 
 2. Exchanges of Consideration.
In consideration for the releases and other obligations contained in this Agreement, the sufficiency of which is hereby acknowledged: 
 (a) Plaintiff waives all claims for reimbursement of costs incurred incidental to construction of an amenity package consisting of an entrance monument and associated landscaping and irrigation at the
entrance to the Development; 
 (b) Defendant, as Declarant under the recorded Subdivision Declaration and
Townhouse Declaration applicable to single-family lots and townhouse lots for the Development (together, the “Covenants”), shall continue to be responsible to fund any shortfall on the operations of the HOA or TOA; 
  

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 (c) Upon execution of this Agreement, Escrow Agent shall close a transaction
and three escrow accounts established on behalf of the parties, as further described below, with the following material terms and on the following conditions (“the Closing”): 
 (1) The Defendant shall: (i) pay all fines, penalties, costs, liens, claims and other remedies arising from or relating
to the TOA Foreclosure Action and any and all alleged violations of the Covenants by Plaintiff, whether known or unknown, occurring prior to the date of this Agreement in consideration for Plaintiff’s waiver of any claims, whether known or
unknown, arising from Defendant and any affiliates’ alleged acts and omissions as Declarant or other role as controlling party of the TOA; (ii) provide Plaintiff with the current budget, income statements and balance sheets for the HOA at
Closing; (iii) release all claims of lien against any property to be conveyed by Plaintiff pursuant to this Agreement in a form acceptable for filing; (iv) irrevocably approve Plaintiff’s current house plans in existing and future
homes in the Development as requested and shown in the letters attached hereto as Exhibit E; and (v) deposit $19,450.00 in escrow with the Escrow Agent representing the difference in values of the lots being conveyed by each party
(“Reconciliation Payment”), which is further described below, provided, however, that all closing costs incurred by Plaintiff in connection with the closing contemplated herein shall be paid out of the escrowed Reconciliation Payment. It
is further provided that any portion of the escrowed Reconciliation Payment that remains after payment of Plaintiff’s closing costs shall remain in escrow until such time as Plaintiff is able to convey to Defendant, or Defendant’s
assign(s), Single Family Lots 2 and 3. At such time as Plaintiff conveys Single Family Lots 2 and 3 to Defendant, or Defendant’s assign(s), the balance of the escrowed Reconciliation Payment shall be paid by Escrow Agent to Plaintiff. However,
in the event Plaintiff has not conveyed Single Family Lots 2 and 3 to Defendant, or Defendant’s assign(s), for any reason, within six (6) months of the full execution of this Agreement, the balance of the escrowed Reconciliation Payment
shall be released by Escrow Agent back to Defendant; 
 (2) The parties acknowledge and agree that Plaintiff
shall no longer be obligated to pay assessments for its townhome pads as stipulated in the Covenants and are hereby deemed satisfied and released. Plaintiff and Defendant agree to sign and record an amendment to the Covenants in the form attached
hereto as Exhibit B, revising and amending the Covenants as set forth therein and hereinabove; 
 (3)
Defendant shall upon execution of this Agreement convey to Plaintiff, through means of special warranty deeds, the form of which is attached hereto as Exhibit C, Single Family Lots 49, 71, 64, 65, 66, 67, 81, 82, 83 and 84 within the Development
(the “Defendant’s Conveyed Properties”), which are more particularly identified on Exhibit A hereto. The special warranty deeds shall be held in escrow by Escrow Agent pending completion of all conditions precedent to the Closing as
described in this Paragraph 2(c) (“the Comstock Escrow Deposit”). In addition, at such time as Plaintiff conveys Single Family Lots 2 and 3 to Defendant, or Defendant’s assign, Defendant shall convey to Plaintiff, through means of
special warranty deeds, Single Family Lots 50 and 51; 
  

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 (4) Defendant shall, upon execution of this Agreement, deposit $16,757.34 in
escrow with the Escrow Agent representing Plaintiff’s accrued, but currently unpaid, TOA and HOA dues in the amounts of $15,340.74 and $1,416.60, respectively, as required under the Covenants. Defendant shall instruct the Escrow Agent to
disburse $15,340.74 to the TOA and $1,416.60 to the HOA at the Closing described herein. 
 (5) Plaintiff shall
upon execution of this Agreement, convey to Defendant, through means of special warranty deeds, the form of which is attached hereto as Exhibit D, the 18 townhouse pads known as Townhome Lots 161, 162, 163, 164, 165, 166, 167, 168, 169, 170, 171,
172, 173, 174, 175, 176, 177 and 178 which Plaintiff owns and are part of the Development (the “Plaintiff’s Conveyed Properties”), which are more particularly identified on Exhibit A hereto. The special warranty deeds shall be held in
escrow by Escrow Agent pending completion of all conditions precedent to the Closing as described in this Paragraph 2(c) (“the PDR Escrow Deposit”). In addition, at such time as Plaintiff is able to obtain a release of all liens on Single
Family Lots 2 and 3 from its lender, Plaintiff shall convey Single Family Lots 2 and 3 to Defendant, at which time the provisions of paragraph 2(c)(1) concerning the Reconciliation Payment shall control. In the event Plaintiff has not conveyed
Single Family Lots 2 and 3 to Defendant, or Defendant’s assign(s), for any reason, within six (6) months of the full execution of this Agreement, the balance of the escrowed Reconciliation Payment shall be released by Escrow Agent back to
Defendant and the parties shall have no further liability to each other; 
 (6) The Escrow Agent shall receive
releases from the parties suitable for the recordation of all encumbrances, including lien releases and releases of deeds of trust in favor of Wachovia, SunTrust or any other lender on Plaintiff’s Conveyed Properties or Defendant’s
Conveyed Properties; 
 (7) The parties shall, upon execution of this Agreement, execute a written termination of
any remaining option or obligation to purchase or obligation to sell lots under the Contract, provided, however, the parties expressly acknowledge that Plaintiff will continue to attempt to obtain a release of liens from its lender on Single Family
Lots 2 and 3 for purposes of conveying said lots to Defendant, or Defendant’s assign, in exchange for Single Family Lots 50 and 51 (as well as receipt of the balance of the escrowed Reconciliation Payment); 
 (8) Each party shall bear its transfer costs incidental to this transaction and shall be responsible for depositing with the
Escrow Agent sums deemed sufficient by the Escrow Agent in its reasonable discretion to cover all of the party’s closing costs; 
 (9) The parties shall file dismissals with prejudice of all claims in the Lawsuit and the TOA Foreclosure Action and cancel the Notice of Lis Pendens related to the Lawsuit upon full execution of
this Agreement; 
  

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 (10) The releases contemplated by this Agreement shall be effective upon
full execution of this Agreement; 
 (11) The parties agree and specifically direct the Escrow Agent to withhold
from recordation of any deeds and making any disbursements of funds or otherwise closing the contemplated transaction until such time that all deliverables, including, but not limited to, deeds, releases, and covenant modifications, are in the
Escrow Agent’s possession; and 
 (12) Notwithstanding the foregoing, in the event that any third party,
including any creditors, lenders or obligees of Plaintiff or Defendant, takes title to or exercises its right to foreclose on any land owned by Plaintiff or Defendant in the Providence Subdivision that is to be conveyed to Plaintiff or Defendant
under the terms of this Agreement, each party shall forfeit all rights to the other’s deposits with the Escrow Agent under the Agreement, and each party’s Escrow Deposit shall revert back and be delivered to the party that tendered the
Escrow Deposit under this Agreement; 
 (13) The parties understand that agree that timely completion of the
Closing is of the essence. The parties acknowledge that each other will incur substantial damages if the Closing does not occur as provided herein, and that such damages are not readily ascertainable. If any party to this Agreement fails to provide
Escrow Agent with any of the necessary documents, monies or information within thirty (30) days as required by Paragraph 2(c) herein, the non-breaching party shall be entitled to liquidated damages of $25,000, and the parties agree that such
amount is sufficient for damages that would occur, as well as any additional remedies being sought by the parties in the Lawsuit. Upon any such failure described herein, Escrow Agent shall disburse and deliver the HOA Escrow Deposit, Comstock Escrow
Deposit, and PDR Escrow Deposit back to the party that tendered such escrow deposit under this Agreement; 
 (14)
The parties shall execute and deliver to Escrow Agent a settlement statement acknowledging the Closing and the actions to occur therein contemporaneous with the execution of this Agreement; 
 (15) Except as otherwise stated herein, the parties shall bear their own costs and expenses incidental to the matters
addressed by this Agreement; and 
 (16) The parties shall cooperate with each other on development requirements,
provided such assistance shall be at no cost to the other. By way of example and not limitation, the parties expect to cooperate in accommodating the reasonable requests of the other concerning easements, utilities, and construction items.

 (d) Upon Escrow Agent’s receipt of the items required in Paragraph 2(c) herein, including all documents,
as necessary, executed and in recordable form, Escrow Agent is authorized and directed to effectuate the Closing contemplated herein. 
 (e) Upon Closing, the parties hereby agree to terminate and cancel the Contract, and the parties shall not have any further options, obligations, or rights under the Contract, other than as set forth in
this Agreement. 
  

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 3. Releases by Plaintiff. Plaintiff, for itself, its successors and assigns, hereby
releases Defendant from any and all claims, causes of action, actions, suits, debts, dues, demands, bonds, costs, attorney fees or interests recoverable, and any and all damages recoverable which Plaintiff or any of its officers or agents have, or
may have either at law or equity, by reason of, arising out of, or relating to the Lawsuit, the TOA Foreclosure Action and the disputes underlying the same, including but not limited to, any and all claims which were or could have been raised in the
Lawsuit (“Plaintiff’s Released Claims”). Plaintiff forever discharges Defendant and their successors, assigns, affiliates, agents, employees, managers, members, officers, board members, shareholders, representatives, insurers and
legal representatives, from Plaintiff’s Released Claims. Plaintiff covenants and agrees that no assignment, transfer or conveyance in any manner of all or part of any legal right relating to Plaintiff’s Released Claims has been made. This
release is binding upon Plaintiff and its successors and assigns, and shall inure to the benefit of Defendant and its successors, assigns, affiliates, agents, employees and legal representatives. 
 Notwithstanding the foregoing, Plaintiff does not release Defendant from its obligations under this Agreement. All other obligations under
the Contract are waived and released. 
 4. Releases by Defendant. Defendant, for themselves, their successors and
assigns, hereby release Plaintiff from any and all claims, causes of action, actions, suits, debts, dues, demands, bonds, costs, attorney fees or interests recoverable, and any and all damages recoverable which Defendant or any of its officers or
agents have, or may have either at law or equity, by reason of, arising out of, or relating to the Lawsuit and the disputes underlying the same, including but not limited to, any and all claims which were or could have been raised in the Lawsuit
(“Defendant’s Released Claims”). Defendant forever discharges Plaintiff and its predecessors in interest, successors, assigns, affiliates, agents, employees, managers, members, representatives, insurers and legal representatives, from
Defendant’s Released Claims. Defendant covenants and agrees that no assignment, transfer or conveyance in any manner of all or part of any legal right relating to Defendant’s Released Claims has been made. This release is binding upon
Defendant and its successors and assigns, and shall inure to the benefit of Plaintiff and its successors, assigns, affiliates, agents, employees and legal representatives. 
 Notwithstanding the foregoing, Defendant does not release Plaintiff from its obligations under this Agreement. All other obligations under
the Contract are waived and released. 
 5. Representations. The parties hereby represent and agree as follows:

 (a) All real estate taxes have been or will be paid on or before the date of conveyance of the lots described
in Paragraph 2(c) herein. 
  

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 (b) Subject to the release of the liens described in Paragraph 2(c) herein,
the parties represent that the lots being conveyed pursuant to Paragraphs 2(c) shall be conveyed free and clear of any liens, claims, notices, actions or causes of action, whether known or threatened. If any lien, claim, notice, action, or cause of
action exists pertaining to any of the lots being conveyed pursuant to Paragraphs 2(c), the party transferring such lot shall be responsible for payment or satisfaction of such claim. 
 6. Duties Are Administrative. The duties of the Escrow Agent hereunder shall be entirely administrative and not discretionary. The
Escrow Agent shall have no duties other than as set forth herein. The Escrow Agent shall have no liability or responsibility hereunder for any act or omission to act except for its own gross negligence or bad faith. 
 7. Waiver; Indemnification. The parties agree to and hereby do waive any suit, claim, demand, or cause of action of any kind which
either may have or may assert against the Escrow Agent arising out of or relating to Escrow Agent’s performance hereunder, unless such suit, claim, demand, or cause of action is based entirely upon Escrow Agent’s gross negligence or bad
faith. The parties do hereby agree to indemnify and hold Escrow Agent harmless from and against any and all liabilities, actions, claims, demands, damages, and expenses of every type and kind, including reasonable attorneys’ fees, asserted
against or incurred by Escrow Agent as a result of or in connection with its serving as the Escrow Agent hereunder, excepting only such claims and expenses as may result from Escrow Agent’s gross negligence or bad faith. 
 8. Dispute and Representation. If Escrow Agent shall be unable to determine at any time to whom the Comstock Escrow Deposit, the HOA
Escrow Deposit or the PDR Escrow Deposit (collectively, the “Escrow Deposits”) should be delivered or if a dispute should develop between the parties concerning the disposition of the their Escrow Deposits, then in any such event, Escrow
Agent shall deliver the aforementioned Escrow Deposits in accordance with the joint (or consistent) written instructions of the parties. In the event that such joint (or consistent) written instructions shall not be received by Escrow Agent within
ten (10) days after Escrow Agent has served written requests for such joint (or consistent) written instructions upon the parties, Escrow Agent shall have the right to deliver all of the Escrow Deposits to a title insurance company of Escrow
Agent’s choice; and, thereafter, Escrow Agent shall be discharged of any further or continuing obligations in connection with this Agreement. 
 If costs and expenses (including attorneys’ fees) are incurred by Escrow Agent because of litigation or any dispute between the parties arising out of the holding of the Escrow Deposits, the
non-prevailing party shall reimburse Escrow Agent for such reasonable costs and expenses incurred. The parties hereby agree and acknowledge that Escrow Agent assumes no liability in connection with the holding or investment of the Escrow Deposits
pursuant hereto, except for the negligence or willful misconduct of Escrow Agent and its employees and agents. Escrow Agent shall not be responsible for the validity, correctness or genuineness of any document or notice referred to herein; and, in
the event of any dispute under this Agreement relating to the delivery of the Escrow Deposits, Escrow Agent may seek advice from its own counsel and shall be fully protected in any action taken in good faith in accordance with the opinion of Escrow
Agent’s counsel. 
  

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 9. Joinder of Escrow Agent. Escrow Agent enters into this Agreement for the purpose
of acknowledging its agreement to serve as the Escrow Agent hereunder. The parties agree that Escrow Agent may resign as Escrow Agent hereunder and may designate as a successor escrow agent having the same duties and responsibilities as the Escrow
Agent any of the following title insurance companies or the North Carolina agencies thereof: First American Title Insurance Company, Chicago Title Insurance Company or Investors Title Insurance Company.  
 10. Right to Review; Intent to Release. The parties acknowledge that: (a) they have been advised to consult an attorney prior to
signing this Agreement; (b) they have read carefully and had sufficient time to consider this Agreement and to consult with their attorney concerning its contents and effect; (c) they understand the terms of this Agreement; (d) they
knowingly and voluntarily waived the rights identified herein; and (e) they have determined that entering into this Agreement is in their best interest. 
 11. No Admissions. The settlement contemplated by this Agreement is in compromise of disputed claims, and the compromises are not to be construed as admissions of liability on the part of
any party. The parties deny liability and intend merely to avoid litigation and buy their peace. 
 12. Enforceability;
Authority of Parties and Signators. The parties hereby represent and warrant to each other that they have the power and authority to execute and deliver this Agreement and that they have obtained all necessary authorizations to enter into this
Agreement, that the execution of this Agreement does not violate any agreement to which it is a party and that this Agreement constitutes a legal, valid and binding obligation enforceable upon the parties in accordance with its terms, regardless of
the adequacy of consideration. By his or her signature, each signator executing this Agreement on behalf of an entity covenants and warrants to the other parties that he has the authority to do so as a binding and legally enforceable act of such
entity. 
 13. Entire Agreement; No Oral Modifications. This Agreement is not based upon any factual, legal, or other
representation or promise made by or on behalf of either of the parties not contained in this Agreement. The parties acknowledge and agree that if the facts or law with respect to which this Agreement as executed are, or may be found hereafter to
be, other than or different from the facts or law in that connection now believed by either of the parties to be true, the parties expressly accept and assume the risk of such possible difference and agree that all provisions of this Agreement shall
be and remain effective notwithstanding any such difference. This Agreement contains the entire understanding between the parties regarding the subject matter hereof and supersedes any prior understanding or agreement between the parties respecting
such subject matter. There are no representations, warranties, arrangements, understandings, or agreements, oral or written, relating to the subject matter of this Agreement, except as fully expressed herein. The terms of this Agreement are
contractual and not a mere recital. This Agreement may not be altered, amended, modified or rescinded in any way except by written instrument duly executed by the parties. 
  

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 14. Legal Representation. The parties acknowledge, represent and agree, each
with the other, that (i) each has consulted with an attorney of their choice regarding this Agreement prior to the execution hereof, or had the opportunity to consult with an attorney; (ii) each attorney or party has been afforded a full
opportunity to read, review and consider this Agreement; (iii) each attorney or party has had the opportunity to and has negotiated the terms of this Agreement; and (iv) neither Plaintiff nor Defendant shall be deemed the drafter hereof.

 15. Governing Law. All questions concerning this Agreement and performance hereunder shall be governed by and resolved
in accordance with the laws of the State of North Carolina. 
 16. Execution Under Seal. This Agreement has been executed
under seal in express contemplation of the parties’ continuing duties to perform and to be bound as contemplated by its terms for a period in excess of three years. 
 17. Counterparts. This Agreement may be executed in facsimile or PDF counterparts at different times and locations, each of which shall be deemed an original and all of which shall constitute the
same instrument. 
 [THIS SPACE INTENTIONALLY LEFT BLANK – SIGNATURES APPEAR ON NEXT PAGE] 
  

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 Agreed, effective the __ day of June, 2009. 
  

			
	COMSTOCK HOMES OF RALEIGH, LLC,
	a North Carolina limited liability company (“SEAL”)
		
	By:	 	COMSTOCK HOMEBUILDING COMPANIES, INC.,
Its Manager
		
	By:	 	 
		
	Title:	 	 
		
	Date:	 	 
	
	PROVIDENCE DEVELOPMENT OF RALEIGH, LLC,
	a North Carolina limited liability company (“SEAL”)
		
	By:	 	 
		
	Title:	 	 
		
	Date:	 	 
	
	ESCROW AGENT:
		
	By:	 	 
		
	Title:	 	 
		
	Date:	 	 

 [NOTARY ACKNOWLEDGEMENTS ATTACHED]

  

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 STATE OF NORTH CAROLINA 
 COUNTY OF WAKE 
 I, a Notary Public of the County and State aforesaid, certify
that _______________________, an authorized representative of PROVIDENCE DEVELOPMENT OF RALEIGH, LLC, a North Carolina limited liability company, personally appeared before me this day and, having provided satisfactory evidence of his identity in
the form of a state issued driver’s license, signed the foregoing instrument under seal for the purpose stated therein on behalf of the corporation, under authority duly given, on this the      day of June, 2009.

 (SEAL) 
  

					
		 	 	 	 
		
		 	_____________________, Notary Public
		
		 	My commission expires:  _________

 STATE OF ________________________ 
 COUNTY OF _______________ 
 I, a Notary Public of the County and State aforesaid, certify that _______________________, an authorized representative of COMSTOCK HOMES
OF RALEIGH, LLC, a North Carolina limited liability company, personally appeared before me this day and, having provided satisfactory evidence of his identity in the form of a state issued driver’s license, signed the foregoing instrument under
seal for the purpose stated therein on behalf of the corporation, under authority duly given, on this the      day of June, 2009. 
 (SEAL) 
  

					
		 	 	 	 
		
		 	_____________________, Notary Public
		
		 	My commission expires:  _________

  

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 STATE OF NORTH CAROLINA 
 COUNTY OF WAKE 
 I, a Notary Public of the County and State aforesaid, certify
that _______________________, an authorized representative of MANNING, FULTON & SKINNER, PA, a North Carolina professional association, personally appeared before me this day and, having provided satisfactory evidence of his identity in the
form of a state issued driver’s license, signed the foregoing instrument under seal for the purpose stated therein on behalf of the corporation, under authority duly given, on this the __ day of June     , 2009.

 (SEAL) 
  

					
		 	 	 	 
		
		 	_____________________, Notary Public
		
		 	My commission expires:  _________

  

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 EXHIBIT A 
 DESCRIPTION OF LOTS 
 Lots Conveyed by Defendant:

 Single Family Lots: Being Lots 49, 71, 64, 65, 66, 67, 81, 82, 83 and 84, Providence of Raleigh Subdivision, Phase 2, as shown
on plat of survey entitled “SUBDIVISION PLAT OF PROVIDENCE – PHASE 2” prepared by Elingburg Land Surveying Co., P.A. and recorded in Book of Maps 2007, pages 657 and 658, Wake County Registry. 
 Together with all rights, privileges, and easements appurtenant to the above-described property as set forth in that certain Declaration of
Covenants, Conditions and Restrictions for Providence of Raleigh Subdivision recorded in Book 12053, page 2419, Wake County Registry, as supplemented by that certain Annexation Declaration recorded in Book 12451, page 2197, re-recorded in Book
12623, page 2662, both of the Wake County Registry. 
 Lots Conveyed by Plaintiff: 
 Townhouse Lots: Being all of Townhouse Lots 161-178, inclusive, Providence of Raleigh Subdivision, Phase 2, as shown on plat of survey entitled
“SUBDIVISION PLAT OF PROVIDENCE – PHASE 2” prepared by Elingburg Land Surveying Co., P.A. and recorded in Book of Maps 2007, pages 657 and 658, Wake County Registry. 
 Together with all rights, privileges, and easements appurtenant to the above-described property as set forth in (i) that certain Declaration of Covenants, Conditions and Restrictions for
Providence of Raleigh Subdivision recorded in Book 12053, page 2419, Wake County Registry, as supplemented by that certain Annexation Declaration recorded in Book 12451, page 2197, re-recorded in Book 12623, page 2662, both of the Wake County
Registry, and (ii) that certain Declaration of Covenants, Conditions and Restrictions for Providence Subdivision, Phase 2 Townhouses recorded in Book 12451, page 2202, Wake County Registry. 
  

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 EXHIBIT B 
 Covenant Modification 
  

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 EXHIBIT C 
 FORM OF SPECIAL WARRANTY DEED FOR DEFENDANT’S CONVEYANCE 
  

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 EXHIBIT D 
 FORM OF SPECIAL WARRANTY DEED FOR PLAINTIFF’S CONVEYANCE 
  

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 EXHIBIT E 
 HOUSE PLAN SUBMISSION AND APPROVAL 
  

 - 17 -Exhibit 10.80

 Exhibit 10.80 
 SUBORDINATED DEFICIENCY NOTE 
  

			
	$400,000.00	  	September ___, 2009

 FOR VALUE RECEIVED, the undersigned, COMSTOCK HOMEBUILDING COMPANIES, INC., a Delaware corporation (the “Borrower”), promises to pay to the order of CORNERSTONE BANK (“Noteholder” or “Lender”), the sum
of Four Hundred Thousand Dollars and No/cents ($400,000.00) (the “Subordinated Deficiency Note”), or so much thereof as shall remain unpaid; this Note being non-interest bearing. This Subordinated Deficiency Note is being issued pursuant
to and shall be administered in accordance with that certain Settlement Agreement of even date herewith (the “Agreement”). Borrower hereby agrees to pay Noteholder in full on the Maturity Date (as defined herein). As consideration for the
entry into this Subordinated Deficiency Note and payment by Borrower hereunder, Noteholder has executed the release contained in the Agreement. 
 1. Maturity. The unpaid principal amount of this Subordinated Deficiency Note shall mature and become due and payable in full on the date that is three (3) years from the date hereof (the
“Maturity Date”). 
 2. Notices. Any notice, request, or demand to be given to the Borrower under this
Subordinated Deficiency Note shall be in writing and shall be deemed to have been given if delivered to the Borrower at 11465 Sunset Hills Road, Suite 500, Reston, Virginia 20190, Attention: Mr. Christopher Clemente, with a copy to
Mr. Jubal R. Thompson either (i) on the date of delivery of the notice to the Borrower by hand, or (ii) the next business day following the day on which the same shall have been placed in the hands of a nationally recognized
courier service for overnight delivery to the Borrower, with all charges prepaid and tracking information retained, addressed to the Borrower at the address provided herein. 
 3. Purpose of Loan. The Borrower hereby represents and warrants that the loan evidenced hereby was made and transacted solely for the
purpose of carrying on a business. 
 4. Prepayment. Subject to Paragraph 7 below, this Subordinated Deficiency Note may
be prepaid, in whole or in part, at any time without penalty or premium. 
 5. Choice of Law. The validity and
construction of this Subordinated Deficiency Note and all matters pertaining thereto are to be determined according to the laws of the State of Georgia. 
 6. Enforceability. In the event any provision of this Subordinated Deficiency Note (or any part of any provision) is held by a court of competent jurisdiction to be invalid, illegal or
unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision (or remaining part of the affected provision) of this Subordinated Deficiency Note; but this Subordinated Deficiency Note shall be
construed as if such invalid, illegal or unenforceable provision (or part thereof) had not been contained in this Subordinated Deficiency Note, but only to the extent it is invalid, illegal or unenforceable. This Subordinated Deficiency Note may not
be changed orally, but only by an agreement in writing signed by the parties against whom enforcement of any waiver, change, modification or discharge is sought. 

 7. Subordination. By acceptance of this Subordinated Deficiency Note, Holder of the
Subordinated Indebtedness (as defined below) agrees to each of the following provisions: 
 (a) As used in this
Paragraph 7, the following terms have the following respective meanings: 
 “Agents” means the
Guggenheim Agent and the KeyBank Agent. 
 “Bankruptcy Code” means 11 U.S.C. §101 et seq.,
as from time to time hereafter amended, and any successor or similar statute. 
 “Collateral”
means the Guggenheim Collateral and the KeyBank Collateral. 
 “Enforcement Action” means the
commencement of any litigation or proceeding at law or in equity, the commencement of any foreclosure proceeding, the exercise of any statutory or non-judicial power of sale, the taking of a deed or assignment in lieu of foreclosure, seeking to
obtain a judgment, seeking the appointment of or the obtaining of a receiver or the taking of any other enforcement action against, or the taking of possession or control of, or the exercise of any rights or remedies with respect to, any Obligor or
the Collateral, any other property or assets of any Obligor or any portion thereof. 
 “Guggenheim
Agent” means Guggenheim Corporate Funding, LLC, in its capacity as the administrative agent under the Guggenheim Senior Loan Documents, or any successor administrative agent under the Guggenheim Senior Loan Documents. 
 “Guggenheim Collateral” means all of the real, personal and other property owned by the Guggenheim Obligors
now or hereafter encumbered by or securing the Guggenheim Senior Note, the Guggenheim Senior Loan Agreement, the Guggenheim Senior Security Documents, or the Guggenheim Senior Guaranty, or any documents now or hereafter entered into or delivered in
connection with any of them, and all of each Guggenheim Obligor’s right, title and interest in and to such property, whether existing or future, and all security interests, security titles, liens, claims, pledges, encumbrances, conveyances,
endorsements and guaranties of whatever nature now or hereafter securing any Guggenheim Obligor’s obligations under the Guggenheim Senior Loan Documents or any part thereof, and all products and proceeds of the foregoing. The Guggenheim
Collateral shall not include the pledges by Borrower to KeyBank Agent of its equity interests in Potomac and Station View pursuant the KeyBank Senior Assignment of Interests. 
 “Guggenheim Obligors” means Comstock Penderbrook, L.C. and Borrower. 
 “Guggenheim Senior Debt” means (i) principal of, premium, if any, and interest on, the Guggenheim
Senior Note or pursuant to the Guggenheim Senior Loan Agreement (whether payable under the Guggenheim Senior Note, the Guggenheim Senior Loan Agreement, the Guggenheim Senior Guaranty, or any other Guggenheim Senior Loan Document), (ii)

 
prepayment fees, yield maintenance charges, breakage costs, late charges, default interest, agent’s fees, costs of collection, protective advances, advances to cure defaults, and
indemnities, and (iii) any other amount or obligations (including any fee or expense) due or payable with respect to the Guggenheim Senior Loan or any of the Guggenheim Senior Loan Documents (including interest and any other of the foregoing
amounts accruing after the commencement of any Insolvency Proceeding, and any other interest that would have accrued but for the commencement of such Insolvency Proceeding, whether or not any such interest is allowed as an enforceable claim in such
Insolvency Proceeding and regardless of the value of the Guggenheim Collateral at the time of such accrual), whether outstanding on the date of this Subordinated Deficiency Note or hereafter incurred, whether as a secured claim, undersecured claim,
unsecured claim, deficiency claim or otherwise, and all renewals, modifications, amendments, supplements, consolidations, restatements, extensions, refinances, and refundings of any thereof; provided, however, that notwithstanding anything herein to
the contrary, “Guggenheim Senior Debt” shall not include (a) any funds loaned or advanced by the Guggenheim Senior Lenders for any purpose unrelated to the Fair Lakes (Penderbrook) Condominium conversion project in Fairfax County, VA,
or (b) any of items described in (i), (ii), (iii) of this definition that are related to any of the purposes set forth in (a). 
 “Guggenheim Senior Guaranty” means that certain Carve-Out Guaranty dated as of February 27, 2007 executed by Borrower in favor of the Guggenheim Agent for the benefit of the
Guggenheim Senior Lenders, as the same may be from time to time amended, extended, supplemented, consolidated, renewed, restated or otherwise modified. 
 “Guggenheim Senior Lenders” means financial institutions or designated entities from time to time as defined in the Guggenheim Senior Loan Agreement. 
 “Guggenheim Senior Loan” means the up to Twenty Eight Million Dollars and No/Cents ($28,000,000) credit
facility provided pursuant to the Guggenheim Senior Loan Agreement, as the same may be amended, modified, increased, consolidated, restated, or replaced. 
 “Guggenheim Senior Loan Agreement” means that certain Loan Agreement dated as of February 22, 2007 executed by Comstock Penderbrook, L.C. and Guggenheim Corporate Funding, LLC,
individually and as Administrative Agent for the Guggenheim Senior Lenders, and certain other parties now or hereafter a party thereto, as modified by that certain First Amendment to Loan Agreement dated April 10, 2007, and as further modified
by Forbearance Agreement and Second Amendment to Loan Agreement dated January 27, 2009, and as further modified by Third Amendment to Loan Agreement dated on or near the date hereof, and as the same may be further amended, modified, increased,
consolidated, restated or replaced. 
 “Guggenheim Senior Loan Documents” means the Guggenheim
Senior Security Documents, the Guggenheim Senior Note, the Guggenheim Senior Loan Agreement, the Guggenheim Senior Guaranty, and any other documents, agreements or instruments now or hereafter executed and delivered by or on behalf of any Guggenheim
Obligor or any other person or entity in connection with the Guggenheim Senior Loan, and any documents, agreements or instruments hereafter executed and delivered by or on behalf of any Guggenheim Obligor or any other person or entity in connection
with any refinancing of the Guggenheim Senior Loan, as any of the same may be from time to time amended, extended, supplemented, consolidated, renewed, restated, or otherwise modified. 

 “Guggenheim Senior Note” means that certain Promissory Note
dated February 22, 2007 executed by Comstock Penderbrook, L.C. in favor of the Guggenheim Corporate Funding, LLC, as originally executed, or if varied, extended, supplemented, consolidated, amended, replaced, renewed, modified, or restated from
time to time as so varied, extended, supplemented, consolidated, amended, replaced, renewed, modified, or restated. 
 “Guggenheim Senior Security Documents” means the “Security Documents” as defined in the Guggenheim Senior Loan Agreement, and each other Guggenheim Senior Loan Document securing any or all of the Guggenheim Senior
Loan, together with any and all acknowledgments, powers, certificates, UCC financing statements, or other documents or instruments executed and delivered in connection therewith. 
 “Insolvency Proceeding” means any proceeding, whether voluntary or involuntary, under the Bankruptcy Code,
or any other bankruptcy, insolvency, liquidation, reorganization, composition, extension, arrangement, adjustment or other similar proceeding concerning any Obligor, any action for the winding-up or dissolution of any Obligor, any proceeding
(judicial or otherwise) concerning the application of the assets of any Obligor for the benefit of its creditors, the appointment of or any proceeding seeking the appointment of a trustee, receiver or other similar custodian for all or any
substantial part of the assets of any Obligor, a general assignment for the benefit of creditors or any proceeding or action seeking the marshaling of the assets and liabilities of any Obligor, or any other action concerning the adjustment of the
debts of any Obligor or the cessation of business by any Obligor, in each case under any applicable domestic or foreign federal or state law. For the purposes hereof, an “Insolvency Proceeding” shall also include the taking, seeking or
approving of any action in any proceeding described in the foregoing sentence by, against or concerning any other person or entity that could adversely affect any Obligor, any other obligor with respect to the Subordinated Indebtedness, the
Collateral, the Senior Loan Documents, the Agents, the Senior Lenders or any Judicial Proceeding under the Senior Security Documents or any other Senior Loan Document. 
 “Judicial Proceeding” means one or more proceedings by one or more holders of Senior Debt before a state or
federal court (having jurisdiction with respect thereto) to collect the Senior Debt following an acceleration of the maturity thereof as a result of a default. 
 “KeyBank Agent” means KeyBank National Association, in its capacity as the agent under the KeyBank Senior
Loan Documents, or any successor agent under the KeyBank Senior Loan Documents. 
 “KeyBank Cash
Collateral Agreement” means that certain Cash Collateral Agreement dated on or near the date herewith executed by Borrower in favor of the KeyBank Agent for the benefit of the KeyBank Senior Lenders, and as may be further amended, modified,
increased, consolidated, restated or replaced. 
 “KeyBank Collateral” means all of the real,
personal and other property owned by the KeyBank Obligors now or hereafter encumbered by or securing the KeyBank Senior Note, the KeyBank Senior Loan Agreement, the KeyBank Senior Security Documents, the KeyBank Cash Collateral Agreement, the
pledges by Borrower to KeyBank Agent of its

 
equity interests in Potomac and Station View pursuant the KeyBank Senior Assignment of Interests, or the KeyBank Senior Guaranty, or any documents now or hereafter entered into or delivered in
connection with any of them, and all of each KeyBank Obligor’s right, title and interest in and to such property, whether existing or future, and all security interests, security titles, liens, claims, pledges, encumbrances, conveyances,
endorsements and guaranties of whatever nature now or hereafter securing any KeyBank Obligor’s obligations under the KeyBank Senior Loan Documents or any part thereof, and all products and proceeds of the foregoing. 
 “KeyBank Obligors” means Comstock Station View, L.C., a Virginia limited liability company, Comstock Potomac
Yard, L.C., a Virginia limited liability company, and Borrower. 
 “KeyBank Senior Assignment of
Interests” means that certain Assignment of Interests dated March 14, 2008 executed by Borrower in favor of KeyBank Agent for the benefit of the KeyBank Senior Lenders, as the same may be from time to time amended, extended,
supplemented, consolidated, renewed, restated or otherwise modified. 
 “KeyBank Senior Debt”
means the (i) principal of, premium, if any, and interest on, the KeyBank Senior Note or pursuant to the KeyBank Senior Loan Agreement (whether payable under the KeyBank Senior Note, the KeyBank Senior Loan Agreement, the KeyBank Senior
Guaranty, or any other KeyBank Senior Loan Document), (ii) prepayment fees, yield maintenance charges, breakage costs, late charges, default interest, agent’s fees, costs of collection, protective advances, advances to cure defaults, and
indemnities, and (iii) any other amount or obligations (including any fee or expense) due or payable with respect to the KeyBank Senior Loan or any of the KeyBank Senior Loan Documents (including interest and any other of the foregoing amounts
accruing after the commencement of any Insolvency Proceeding, and any other interest that would have accrued but for the commencement of such Insolvency Proceeding, whether or not any such interest is allowed as an enforceable claim in such
Insolvency Proceeding and regardless of the value of the KeyBank Collateral at the time of such accrual), whether outstanding on the date of this Subordinated Deficiency Note or hereafter incurred, whether as a secured claim, undersecured claim,
unsecured claim, deficiency claim or otherwise, and all renewals, modifications, amendments, supplements, consolidations, restatements, extensions, refinances, and refundings of any thereof; provided, however, that notwithstanding anything herein to
the contrary, “KeyBank Senior Debt” shall not include (a) any funds loaned or advanced by the KeyBank Senior Lenders after the date of this Subordinated Deficiency Note for any purpose unrelated to the Eclipse on Center Park
Condominium high rise project in Arlington County, VA, referred to as the Potomac Project in the Key Bank Senior Loan Agreement, and the townhouse development project known as Station View in Loudoun County, Virginia referred to as the Station View
Project in the Key Bank Senior Loan Agreement, or (b) any of the items described in (i), (ii), (iii) of this definition that are related to any of the purposes set forth in (a); provided, further, however, that Lender acknowledges that all
amounts currently outstanding under the KeyBank Senior Loan Documents shall be deemed KeyBank Senior Debt. 
 “KeyBank Senior Guaranty” means that certain Unconditional Guaranty of Payment and Performance dated as of March 14, 2008 executed by Borrower in favor of the KeyBank Agent for the benefit of the KeyBank Senior
Lenders, as the same may be from time to time amended, extended, supplemented, consolidated, renewed, restated or otherwise modified. 

 “KeyBank Senior Lenders” means “Lenders” as
defined in the KeyBank Senior Loan Agreement. 
 “KeyBank Senior Loan” means the up to
$40,391,200.00 credit facility provided pursuant to the KeyBank Senior Loan Agreement, as the same may be amended, modified, increased, consolidated, restated, or replaced. 
 “KeyBank Senior Loan Agreement” means that certain Loan Agreement dated as of March 14, 2008 executed
by Comstock Station View, L.C., a Virginia limited liability company, and Comstock Potomac Yard, L.C., a Virginia limited liability company, and KeyBank National Association, individually and as Agent for the KeyBank Senior Lenders, and certain
other parties now or hereafter a party thereto, as modified by that certain First Amendment to Loan Agreement dated on or near the date hereof, and as the same may be further amended, modified, increased, consolidated, restated or replaced.

 “KeyBank Senior Loan Documents” means the KeyBank Senior Security Documents, the KeyBank
Senior Note, the KeyBank Senior Loan Agreement, the KeyBank Senior Guaranty, the KeyBank Senior Assignment of Interests and any other documents, agreements or instruments now or hereafter executed and delivered by or on behalf of any KeyBank Obligor
or any other person or entity in connection with the KeyBank Senior Loan, and any documents, agreements or instruments hereafter executed and delivered by or on behalf of any KeyBank Obligor or any other person or entity in connection with any
refinancing of the KeyBank Senior Loan, as any of the same may be from time to time amended, extended, supplemented, consolidated, renewed, restated, or otherwise modified. 
 “KeyBank Senior Note” means that certain Amended and Restated Note dated March 14, 2008 executed by
Comstock Station View, L.C., a Virginia limited liability company, and Comstock Potomac Yard, L.C., a Virginia limited liability company in favor of KeyBank National Association, as originally executed, or if varied, extended, supplemented,
consolidated, amended, replaced, renewed, modified, or restated from time to time as so varied, extended, supplemented, consolidated, amended, replaced, renewed, modified, or restated. 
 “KeyBank Senior Security Documents” means the “Security Documents” as defined in the KeyBank
Senior Loan Agreement, the KeyBank Cash Collateral Agreement, and each other KeyBank Senior Loan Document securing any or all of the KeyBank Senior Loan, together with any and all acknowledgments, powers, certificates, UCC financing statements, or
other documents or instruments executed and delivered in connection therewith. 
 “Obligors”
means the Guggenheim Obligors and the KeyBank Obligors. 
 “Potomac” means Comstock Potomac
Yard, L.C., a Virginia limited liability company. 
 “Senior Debt” means the Guggenheim Senior
Debt and the KeyBank Senior Debt. 

 “Senior Lender Sharing Ratio” means as of the date of
determination thereof, with respect to the Guggenheim Senior Debt, the outstanding principal amount due on the Guggenheim Senior Guaranty divided by the total outstanding principal balance of the KeyBank Senior Debt plus the outstanding principal
amount due on the Guggenheim Senior Guaranty, and means, with respect to the KeyBank Senior Debt, the outstanding principal balance of the KeyBank Senior Debt divided by the total outstanding principal balance of the KeyBank Senior Debt plus the
outstanding principal amount due on the Guggenheim Senior Guaranty. 
 “Senior Lenders” means
the KeyBank Senior Lenders and the Guggenheim Senior Lenders. 
 “Senior Loan Documents” means
the Guggenheim Senior Loan Documents and the KeyBank Senior Loan Documents. 
 “Senior Security
Documents” means the Guggenheim Senior Security Documents and the KeyBank Senior Security Documents. 
 “Station View” means Comstock Station View, L.C., a Virginia limited liability company. 
 “Subordinated Indebtedness” means the principal amount of the indebtedness evidenced by this Subordinated Deficiency Note, together with interest, breakage or other amount, if any, due thereon or payable with respect
thereto, whether the same is payable by Borrower or any other Obligor. 
 “Subsidiary” means any
corporation, association, partnership, trust, or other business entity of which the designated parent shall at any time own directly or indirectly through a Subsidiary or Subsidiaries at least a majority (by number of votes or controlling interests)
of the outstanding Voting Interests. 
 “Voting Interests” means stock or similar ownership
interests, of any class or classes (however designated), the holders of which are at the time entitled, as such holders, (a) to vote for the election of a majority of the directors (or persons performing similar functions) of the corporation,
association, partnership, trust or other business entity involved, or (b) to control, manage, or conduct the business of the corporation, partnership, association, trust or other business entity involved. 
 (b) Upon any distribution of the assets of Borrower in any Insolvency Proceeding relating to Borrower, or to its respective
creditors as such, then and in any such event: 
 (i) the holders of the Senior Debt shall be entitled to receive
payment in full of all amounts due or to become due on or in respect of all Senior Debt, before any payment, whether in cash, property, or securities is made on account of or applied to the Subordinated Indebtedness; and 
 (ii) any payment, whether in cash, property or securities, to which the holders of the Subordinated Indebtedness would be
entitled except for the provisions of this Paragraph 7, shall be paid or delivered, to the extent permitted by law, by any debtor, custodian,

 
liquidating trustee, agent, or other person making such payment, directly to the holders of the Senior Debt, or their representative or representatives, in amounts computed in accordance with
each applicable Senior Lender Sharing Ratio, for application to the payment thereof, to the extent necessary to pay all such Senior Debt in full, after giving effect to any concurrent payment or distribution, or provision therefor, to the holders of
such Senior Debt. 
 (c) By acceptance of this Subordinated Deficiency Note, each holder of the Subordinated
Indebtedness hereby expressly waives any rights to require or request that the Agents, or either of them, or the Senior Lenders marshal the Collateral in favor of the holder of the Subordinated Indebtedness or to equitably subordinate the rights,
liens or security interests of the Agents, or either of them, or the Senior Lenders, or any of them, under the Senior Loan Documents, whether pursuant to the Bankruptcy Code or otherwise. The Agents, or either of them, and the Senior Lenders, or any
of them, shall have the right at any and all times to determine the order in which, or whether, (i) recourse is sought against any Obligor or any other obligor with respect to the Senior Debt, or (ii) any or all of the Collateral shall be
enforced. Each holder of the Subordinated Indebtedness hereby waives any and all rights to require that the Agents, or either of them, and/or the Senior Lenders, or any of them, pursue or exhaust any rights or remedies with respect to any Obligor or
any other party prior to exercising their rights and remedies with respect to the Collateral or any other property or assets of the Obligors. The Agents, or either of them, and the Senior Lenders, or any of them, may forbear collection, grant
indulgences, release, compromise or settle the Senior Debt, or sell, take, exchange, surrender or release collateral or security therefor, consent to or waive any breach of, or any act, omission or default under, any of the Senior Loan Documents,
apply any sums received by or realized upon by the Agents, or either of them, and the Senior Lenders, or any of them, against liabilities of the Obligors to the Agents, or either of them, and the Senior Lenders, or any of them, in such order as the
Agents, or either of them, and the Senior Lenders, or any of them, shall determine in their sole discretion, and otherwise deal with any and all parties and the Collateral or other property or assets of the Obligors as they deem appropriate. The
Agents and the Senior Lenders shall have no liability to the holder of the Subordinated Indebtedness for, and each holder of the Subordinated Indebtedness hereby waives any claim, right, action or cause of action which it may now or hereafter have
against the Agents, or either of them, and the Senior Lenders, or any of them, arising out of, any waiver, consent, release, indulgence, extension, delay or other action or omission, any release of any Obligor, release of any of the Collateral, the
failure to realize upon any Collateral or other property or assets of any Obligor, or the failure to exercise any rights or remedies of the Agents, or either of them, and the Senior Lenders, or any of them, under the Senior Loan Documents.

 (d) Each holder of the Subordinated Indebtedness hereby expressly consents to and authorizes, at the option of
each Agent, the amendment, extension, restatement, consolidation, increase, renewal, refinance or other modification, in whole or in part, of all or any of the Senior Loan Documents, including, without limitation, increasing or decreasing the stated
principal amount of either Senior Loan, extending or shortening the term of either Senior Loan, increasing or decreasing the interest rate payable as provided in any of the Senior Loan Documents or altering any other payment terms under any of the
Senior Loan Documents. 

 (e) By acceptance of this Subordinated Deficiency Note, each holder of the
Subordinated Indebtedness acknowledges that no Agent and no Senior Lender has made nor do any of them now make any representations or warranties, express or implied, nor do they assume any liability to any holder of the Subordinated Indebtedness,
with respect to the creditworthiness or financial condition of any Obligor or any other person. Each holder of the Subordinated Indebtedness acknowledges that it has, independently and without reliance upon the Agents, or either of them, or the
Senior Lenders, or any of them, and based upon such information and documents as it has deemed appropriate, made its own credit analysis and decision to accept this Subordinated Deficiency Note and the Subordinated Indebtedness. Each holder of the
Subordinated Indebtedness will, independently and without reliance upon the Agents, or either of them, or the Senior Lenders, or any of them, based upon such information and documents as it deems appropriate at the time, continue to make its own
credit analysis and decisions in taking or not taking action under this Subordinated Deficiency Note. No Agent and no Senior Lender shall have any duty or responsibility, either initially or on a continuing basis, to provide any holder of the
Subordinated Indebtedness with any credit or other information with respect to any Obligor, whether coming into its possession before the making of any Senior Loan or at any time or times thereafter. Each holder of the Subordinated Indebtedness
agrees that no Agent an no Senior Lender owes any fiduciary duty to the holder of the Subordinated Indebtedness in connection with the administration of any Senior Loan or any Senior Loan Document and the holder of the Subordinated Indebtedness
agrees not to assert any such claim. 
 (f) The provisions of this Paragraph 7 shall be applicable both before
and after the commencement, whether voluntary or involuntary, of any Insolvency Proceeding by or against any Obligor and all references herein to any Obligor shall be deemed to apply to any such Obligor as a debtor-in-possession and to any trustee
in bankruptcy for the estate of any such Obligor. Furthermore, this Paragraph 7 and the subordinations contained herein shall apply notwithstanding the fact that all or any part of the Senior Debt or any claim for or with respect to all of any part
of the Senior Debt is subordinated, avoided or disallowed, in whole or in part, in any Insolvency Proceeding or other applicable federal, state or foreign law. Without limiting the foregoing, by acceptance of this Subordinated Deficiency Note, each
holder of the Subordinated Indebtedness expressly covenants and agrees that this Subordinated Deficiency Note is enforceable under applicable bankruptcy law and should be enforced under Section 510(a) of the Bankruptcy Code. Until such time as
the Senior Debt has been indefeasibly paid in full in cash and Senior Lenders have no further obligation to make any advances which would constitute Senior Debt, the holders of the Subordinated Indebtedness shall not, and shall not solicit any
person or entity to: (i) seek, commence, file, institute, consent to or acquiesce in any Involuntary Proceeding with respect to any Obligor or the Collateral; (ii) seek to consolidate any Obligor with any other person or entity in any
Insolvency Proceeding; or (iii) take any action in furtherance of any of the foregoing. 
 (g) Each holder
of the Subordinated Indebtedness hereby agrees that it shall not challenge the validity or amount of any claim submitted in such Insolvency Proceeding by the Agents, or either of them, or the Senior Lenders, or any of them, or any valuations of the
Collateral submitted by the Agents, or either of them, or the Senior Lenders, or any of them, in such Insolvency Proceeding or take any other action in such Insolvency Proceeding, which is adverse to their enforcement of any claim or receipt of
adequate protection (as that term is defined in the Bankruptcy Code). 

 (h) To the extent any transfer, payment or distribution of assets with
respect to all or any portion of the Senior Debt (whether in cash, property or securities and whether by or on behalf of any Obligor as proceeds of security or enforcement of any right of setoff or otherwise) is declared to be fraudulent or
preferential, set aside or required to be paid to any Obligor, the estate in bankruptcy thereof, any third party, or a trustee, receiver or other similar party under any bankruptcy, insolvency, receivership or similar law, then if such payment is
recovered by, or paid over to, any Obligor, the estate in bankruptcy thereof, any third party, or such trustee, receiver or other similar party, the Senior Debt or part thereof originally intended to be satisfied shall be deemed to be reinstated and
outstanding as if such payment or distribution had not occurred, and this Paragraph 7 and the agreements and subordination contained herein shall be reinstated with respect to any such transfer, payment or distribution. No Agent shall be required to
contest any such declaration or obligation to return such payment or distribution. 
 (i) Each holder of the
Subordinated Indebtedness intentionally and unconditionally waives and relinquishes any right to challenge the validity, enforceability and binding effect of any of the Senior Security Documents or the other Senior Loan Documents, and any lien,
encumbrance, claim or security interest now or hereafter created thereunder, or the attachment, perfection or priority thereof, regardless of the order of recording or filing of any thereof, or compliance by the Agents, or either of them, or the
Senior Lenders, or any of them, with the terms of any of the Senior Security Documents or any of the other Senior Loan Documents, by reason of any matter, cause or thing now or hereafter occurring, nor shall the holder of the Subordinated
Indebtedness raise any such matter, cause or thing as a defense to the enforcement thereof. 
 (j) Each holder of
the Subordinate Debt agrees that it will not in any manner challenge, oppose, object to, interfere with or delay (i) the validity or enforceability of this Subordinated Deficiency Note, including without limitation, any provisions regarding the
relative priority of the rights and duties of the Agents, or either of them, and Senior Lenders, or any of them, and the holder of the Subordinated Indebtedness, or (ii) any Agent’s or any Senior Lender’s security interest in, liens
on and rights as to the Obligors, and any Collateral or any other property or assets of any Obligor, or any Enforcement Actions of the Agents, or either of them, or the Senior Lenders, or any of them, (including, without limitation, any efforts by
the Agents, or either of them, to obtain relief from the automatic stay under Section 362 of the Bankruptcy Code). 
 IN
WITNESS WHEREOF, the Borrower has executed and sealed, or caused to be executed and sealed, this Note on the date first above written. 
  

					
	 BORROWER:
  
 Comstock Homebuilding Companies, Inc.
	 	
			
	By: 	 	 	 	(SEAL)
		 	 Name: Christopher Clemente
 Title:   CEO

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