Document:

EX-10.85

 Exhibit 10.85 

LOAN AGREEMENT 

(Acquisition and Development Loan and Revolving Construction Line of Credit) 

THIS LOAN AGREEMENT made effective as of the 30th day of December, 2013 by and between
COMSTOCK HALL ROAD, L.C., a Virginia limited liability company (the “Borrower”), and CARDINAL BANK, a Virginia state chartered bank (“Lender”). 

RECITALS 
 R-1. Borrower
is the owner or contract purchaser of certain real property more particularly described on Exhibit A attached hereto and by this reference made a part hereof (the “Land”). 

R-2. Lender has agreed to make (i) an acquisition and development line of credit to Borrower in the maximum aggregate principal amount
that may be advanced of Three Million Six Hundred Sixty-Nine Thousand and no/100 Dollars ($3,669,000.00) on a non-revolving basis (the “A&D Loan”) to finance a portion of the Borrower’s cost to acquire the Land,
subdivide and develop the Land into forty-two (42) single family attached lots (individually a “Lot” and collectively, the “Lots”), and develop the infrastructure for the Project (hereinafter defined) and (ii) a
construction line of credit in the maximum principal amount of Three Million Five Hundred Thousand and no/100 Dollars ($3,500,000) that may be outstanding at any one time advanced and re-advanced on a revolving basis for and on account of
materials to be furnished and labor and services to be performed in connection with the construction of forty-two (42) single family attached residential Units (hereinafter defined) and certain other improvements upon the Land (the
“Construction Line”), as amended, modified, supplemented and increased from time to time. 
 R-3. 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 $7,169,000.00 and that certain Credit Line Deed of Trust 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: 

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: 

 A&D Loan – The non-revolving line of credit from the Lender to the Borrower
evidenced by the Note, to be advanced and repaid pursuant to this Loan Agreement and secured by the Security Documents to be used to finance a portion of the Borrower’s cost to acquire the Land, subdivide and develop the Land into forty-two
(42) single family attached building Lots, and develop the infrastructure for the Project as more particularly set forth in the recitals to this Loan Agreement. 

A&D Loan Funding Termination Date – The Funding Termination Date. The Lender’s obligation to make any advances out of the
A&D Loan shall terminate on the Funding Termination Date. 
 Borrower – The party hereinabove designated as such, its
successors and assigns. 
 Building – Each separate building within the Project, each building to be limited to no more than
eight (8) Units. 
 Commitment - The commitment letter dated December 5, 2013 from Lender to Borrower in connection with
the A&D Loan, the Letters of Credit and the Construction Line, as the same may be from time to time amended. 
 Completion Date
– For each Unit, the earlier to occur of (i) the date that is twelve (12) months after the date of the advance of Construction Line funds for the foundation for a Unit, and (ii) the date such Unit is to be delivered to the
purchaser under a Contract. 
 Construction Line – 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 to be used for the construction of the Units as more particularly set forth in the recitals to this Loan Agreement. 

Construction Line Funding Termination Date – The Lender’s obligation to make advances of Construction Line proceeds for any
particular Unit shall expire on the Funding Termination Date for those Units for which the Lender did not issue its formal Construction Loan commitment prior to the Funding Termination Date. Construction Line advances for each Construction Loan that
the Lender commits to hereunder shall terminate on the Construction Loan Maturity Date. 
 Construction Line Maturity Date – The
last Construction Loan Maturity Date. 
 Construction Loan – A non-revolving limited amount that the Lender has committed to
fund under the Construction Line for a specified Unit. 
 Construction 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 Construction Line funds for the Unit. 

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. 

  
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 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 three percent (3%) of the
Contract purchase price; 
 (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; and 

(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 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. 
 Environmental Indemnity Agreement The
Environmental Indemnity Agreement executed by the Borrower and Guarantors of even date herewith. 
 Event(s) of Default - Any of the
happenings, events, circumstances or occurrences described in Article VI of this Loan Agreement. 
 Funding Termination Date –
December 30, 2015 (the “Initial Funding Termination Date”), or as extended as provided herein. The Initial Funding Termination Date shall be automatically extended to June 30, 2016 (the “First Extended Funding Termination
Date”), but only if (i) there are no defaults or events which with the passage of time would constitute a default under the Loan Documents, (ii) Borrower has satisfied all other terms and conditions required to be satisfied in
the Loan Documents as of the Initial Funding Termination Date, (iii) Borrower shall have sold and closed on at least ten (10) Units within the Project as of the Initial Funding Termination Date, and (iv) Borrower pays Lender a fully
earned non-refundable Loan extension fee equal to one-quarter of one percent (.25%) of the sum of the outstanding principal balance of the A & D Loan plus the remaining amount available to be funded out of the A & D Loan Budget as of the
Initial Funding Termination Date. The First Extended Funding Termination Date shall be automatically extended to December 30, 2016 (the “Second Extended Funding Termination Date”), but only if (i) there are no defaults or
events which with the passage of time would constitute a default under the Loan Documents, (ii) Borrower has satisfied all other terms and conditions required to be satisfied in the Loan Documents as of the First Extended Funding Termination
Date, (iii) Borrower shall have sold and closed on at least eighteen (18) Units within the Project as of the First Extended Funding Termination Date, and (iv) Borrower pays Lender a fully earned non-refundable Loan extension fee equal
to one-quarter of 

  
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one percent (.25%) of the sum of the outstanding principal balance of the A & D Loan plus the remaining amount available to be funded out of the A & D Loan Budget as of the First Extended
Funding Termination Date. The Initial Funding Termination Date to the extent extended to the First Extended Funding Termination Date and the Second Extended Funding Termination Date is the “Funding Termination Date.” 

Guarantors – Christopher Clemente, Gregory Benson and Comstock Holding Companies, Inc., a Delaware corporation and their
successors, personal representatives, devisees and heirs. 
 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 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. 

  
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 Indebtedness - All amounts due Lender pursuant to or on account of the Note, this Loan
Agreement or any of the other Loan 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 re-advanced),
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 Loan Documents. 

Initial Funding Termination Date – December 30, 2015. 

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. 
 Letters of Credit - The up to $2,000,000 in Letters of Credit which the Lender has committed to issue for the
Borrower’s account for the purpose of providing surety to the Public Authorities for the completion of certain Improvements to the Land. 

Loan(s) - Individually, the A&D Loan or the Construction Line, as the case may be, and collectively, the A&D Loan and the
Construction Line. 
 Loan Documents – The Note, this Loan Agreement, the Deed of Trust and all other documents executed by the
Borrower and/or the Guarantors evidencing, guarantying or securing the Loans. 
 Mortgaged Property - The property described as such
in the Deed of Trust, as amended, modified, supplemented or increased from time to time. 
 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 Loan 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 Land, the consolidation and re-subdivision of the Land into the Lots, the site development of the Land, and the
construction of the Improvements and the Units are collectively hereinafter referred to as the Project. 

  
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 Public Authorities – Loudoun County, Virginia and any other public, municipal or
quasi-municipal entity having jurisdiction over the Land and the Improvements to be constructed thereon. 
 Security Documents - The
Deed of Trust, the Environmental Indemnity Agreement, 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. 

Title Company – Superior Title Services, LC as the approved agent of Stewart Title Guaranty Company that will handle the closings
of the Loans. 
 Unit – An individual single family attached townhouse, together with all common elements appurtenant thereto
and the physical Improvements constructed, or being constructed, as a single family attached residence within the identified legal boundaries of an individual Lot. 

ARTICLE II 
 THE LOANS -
ADVANCES AND REPAYMENTS; 
 LETTER OF CREDIT FACILITY 

2.0 The Loans. Lender agrees to advance proceeds of the Loans to Borrower, subject to the terms and conditions herein set forth and in
accordance with the cost breakdown, budget (the “Budget”) and/or draw schedule attached hereto as Exhibit B and incorporated herein by reference, as amended from time to time by Lender. 

2.1 Applications for Advances. Borrower shall make applications for advances of Loan proceeds 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 to Lender all inspection fees and expenses incurred by Lender prior to or at the time of
the advance requested for each visit by Lender 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 Loans each calendar month. 
 2.2 Funding
Limitations. Except as specifically limited in this Loan Agreement, prior to the A&D Loan Funding Termination Date, Borrower shall have the right to borrow and repay, but not to re-borrow, from time to time, up to a maximum principal amount
of Three Million Six Hundred Sixty-Nine Thousand and no/100 Dollars ($3,669,000.00) for budgeted and approved Land Acquisition, Soft Costs, Development and Interest carry expenses as more particularly set forth in the Budget. Except as
specifically limited in this Loan Agreement, prior to the Construction Line Funding Termination Date, Borrower shall have the right to borrow, repay and re-borrow on a revolving basis an amount not to exceed Three Million Five Hundred Thousand
and no/100 

  
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Dollars ($3,500,000.00) that may be outstanding at any one time for the Hard Construction costs of the Units pursuant to the Budget. Lender shall not be obligated to advance A&D Loan
proceeds or Construction Line proceeds if (i) an Event of Default exists hereunder; (ii) Lender has made demand for any payment under the Note which remains unpaid; or (iii) any conditions precedent to such advance set forth in this
Loan Agreement has not been satisfied in Lender’s judgment. Subject to the preceding conditions, Lender agrees to make advances in amounts not to exceed the following amounts: 

(a) Land Acquisition Advance: $944,000. 

(b) Land Acquisition, Soft Costs, Development Costs and Interest Reserve Advances: The combined A&D Loan advances shall not exceed
the sum of the “as-is” appraised value of the Land and the lesser of: (i) fifty-five percent (55%) of the “as-developed” appraised value of the finished Units on a gross value basis, or (ii) sixty-seven percent
(67%) of the “as-developed” appraised value of the finished Units on a discounted cash flow basis. In no event shall the Lender advance more than $3,669,000 in the aggregate, on a non-revolving basis, for Land Acquisition, Soft Costs,
Development Costs and Interest on the A&D Loan. The Lender shall automatically advance funds out of the $250,000 Interest Reserve to cover the interest expense on the A&D Loan on a monthly basis when interest is due under the Note as to the
A&D Loan. The funds set aside in the Interest Reserve shall not be advanced for any other purpose than to cover the actual interest expense accruing on the A&D Loan. 

(c) Construction Loan Advances: Construction Loan advances shall not exceed the lesser of (i) seventy-three percent (73%) of
the “as-if completed” appraised value of a Unit on a gross sale price basis when added to the committed amount under the A&D Loan allocated to the Unit, (ii) eighty percent (80%) of the “as-if completed” appraised
value of a Unit on a discounted cash flow basis when added to the committed amount under the A&D Loan allocated to the Unit, and (iii) one hundred percent (100%) of the actual construction costs of the finished Unit. The maximum amount
of construction advances that may be outstanding at any one time during the term of the Construction Line shall not exceed $3,500,000. 
 (d)
Funding Termination: Lender shall not be obligated to advance any A&D Loan proceeds after the A&D Loan Funding Termination Date. Lender shall not be obligated to advance any Construction Loan proceeds after the Construction Loan
Maturity Date. 
 2.3 Conditions Precedent to Loan Closing and funding of the A&D Loan and issuance of Letters of
Credit: Lender shall not be obligated to close the Loans, make any advance of A&D Loan proceeds hereunder, make any advances out of the Interest Reserve, or cause the Letters of Credit to be issued unless the following conditions have been
satisfied: 
 (a) The Note, this Loan Agreement, the Deed of Trust and the other Loan Documents shall have been properly executed and
delivered to Lender (except that only a copy of the fully executed Deed of Trust shall be delivered to Lender). Borrower shall deliver the original fully executed and acknowledged Deed of Trust and other Loan Documents that Lender requires to be
recorded or filed to secure the Indebtedness and Obligations (the “Loan Recordation Documents”) to the Title Company in final form required for recordation in the appropriate land records and the

  
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Title Company shall record the fully executed Loan Recordation Documents immediately after the recordation of the deed conveying the Land from the seller of the Land to Borrower. If the
Title Company is unable to record the Loan Recordation Documents on or before 5:00 p.m., January 6, 2014 (the “Recordation Deadline”), then (i) Lender’s obligation to provide the Loans to Borrower shall immediately terminate
on the Recordation Deadline without further notice, grace or opportunity to cure such that Lender’s obligations under the Loan Documents shall be of no further force and effect thereafter, and (ii) the Title Company shall refund the entire
amount of Lender’s preliminary advance of the A&D Loan that Lender wired to the Title Company as held by the Title Company in escrow pending recordation of the Loan Recordation Documents to the Lender before 5:00 p.m. on January 7,
2014. All of Lender’s fees and expenses including, but not limited to, the fees and expenses of Lender’s legal counsel shall be fully earned, non-refundable and retained by Lender and its legal counsel to Borrower if the Loans terminate
for failure to record the Loan Recordation Documents by the Recordation Deadline. 
 (b) Borrower shall have deposited with the Title
Company in currently available funds the amount set forth on Line 303 of the settlement statement as approved by Lender, the receipt of which the Title Company shall confirm to Lender. 

(c) 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 Loans 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, 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. 
 (d) 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. 
 (e) Lender shall
have received all policies or certificates of insurance required by the terms of the Commitment and the other Loan 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. 
 (f) 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. 

  
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 (g) Lender shall have received 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. 
 (h) Lender shall have received true and
complete copies of all organizational documents of Borrower, appropriate resolutions authorizing the acceptance of the Loans by Borrower and the execution of the Note and all Loan Documents, appropriate certificates of incumbency and an opinion
letter from counsel for Borrower and the Guarantors, which is acceptable to Lender in all respects. 
 (i) Lender shall have received and
approved an appraisal of the Mortgaged Property that complies with the applicable requirements of the Commitment. 
 (j) 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. 
 (k) Lender shall have received from Borrower written evidence, in form and substance reasonably satisfactory to
Lender, to the effect that no development work of any kind has commenced upon the Land and no materials (financed with the proceeds of the Loans) 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. 
 (l) Lender shall have
received soil reports that shall (i) demonstrate that the soil conditions of the Land 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 on the Land. 

(n) Borrower shall have fully complied with any other applicable requirements of the Commitment. 

  
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 (o) Borrower and Guarantors shall have provided Lender with their current financial statements
and tax returns for the prior two (2) fiscal years in form and substance satisfactory to Lender. 
 (p) Borrower shall have established
a deposit relationship with Cardinal Bank and shall maintain such deposit relationship through the Maturity Date through which all Loan advances and Borrower’s funds pertaining to the development of the Lots and the construction of the Units
shall be maintained and flow. 
 2.4 Conditions Precedent to Advances of Hard Development Costs and Contingency out of A&D Loan
Budget. Lender shall not be obligated to make any advances of A&D Loan proceeds hereunder out of the Hard Development Costs and Contingency categories within the A&D Loan Budget, unless the conditions described in Section 2.3 remain
satisfied, and the following conditions have been satisfied with respect: 
 (a) Lender shall have received from Borrower written evidence,
in form and substance satisfactory to Lender, from all Public 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 development
of the Lots have been validly issued for the work being performed for such draw request; that all applicable 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, including, but not limited to, those fees to be financed by the Lender and the Letters of Credit to be issued by Lender in accordance with the terms of this Loan Agreement 

(b) 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 development have been furnished and installed. 

(c) No Event of Default which has not been cured has occurred under the Note or any of the other Loan Documents and no act has occurred which,
with the passage of time after due notice, would become an Event of Default. 
 (d) Lender has received evidence satisfactory to it that all
work requiring inspection by Public Authorities having or claiming jurisdiction has been duly inspected and approved by such Public Authorities and by any rating or inspection organization, bureau, association or office having or claiming
jurisdiction. 
 (e) 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. 

  
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 (f) 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. 
 (g) 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 that has insured the title to the Mortgaged Property. 

(h) Borrower shall have provided Lender with a list of the names of the architect, the engineer and all contractors and materialmen (the
“Contractors”) that will perform work or supply materials in connection with the development of the Lots and the construction of the Improvements, together, to the extent available, with complete copies of the executed contracts for
such work. 
 (i) Borrower shall have provided Lender with a set of detailed Plans and Specifications for all site development work,
architectural, structural, mechanical, plumbing, electrical, site development and other work for or in connection with the Project. 
 (j)
Lender shall have received copies of the recorded subdivision plat of the Mortgaged Property creating a minimum of forty-two (42) single family attached Lots. 

(k) Borrower shall provide Lender with the final site plan for the Project as approved by all necessary Public Authorities. 

(l) All other terms and conditions of the Loan Documents required to be met as of the date of the particular advance of Loan proceeds shall
have been met to the satisfaction of Lender. 
 2.5 Conditions Precedent to Construction Line Advances. Lender shall not be obligated
to make any advances of out of the Construction Line, unless the conditions described in Sections 2.3 and 2.4 remain satisfied, and the following conditions have been satisfied with respect to the Unit or Units for which the Construction Line
advance is being requested: 
 (a) Lender shall have received from Borrower written evidence, in form and substance satisfactory to Lender,
from all Public Authorities 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 for the work being performed for
such draw request; that all applicable 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, including, but not limited to, those fees to be
financed by the Lender and the Letters of Credit to be issued by Lender in accordance with the terms of this Loan Agreement. 
 (b) 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. 

  
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 (c) No Event of Default which has not been cured has occurred under any of the Loan Documents and
no act has occurred which, with the passage of time after due notice, would become an Event of Default. 
 (d) 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. 
 (e) Lender has received evidence satisfactory to it that all work
requiring inspection by Public Authorities has been duly inspected and approved by such Public Authorities and by any rating or inspection organization, bureau, association or office having or claiming jurisdiction. 

(f) 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 Construction Loan proceeds committed to that Unit 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. 
 (g) 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. 
 (h) In the case of the first advance
of Construction Line proceeds following the completion of the foundation and footings of a Building, Lender shall have received a plat of survey certified to Lender from a land surveyor registered in Virginia, which plat of survey shall clearly
designate the then “as built” location of the foundation of the Building and the relationship of the foundation by courses and distances to the perimeter of the parcel on which the Building is situated and any building restriction lines
and set-backs applicable to the Building, which survey shall be in conformity with the requirements set forth in Section 2.3 (f) hereof. 

(i) 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. 

  
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 (j) Lender shall have received evidence, which is reasonably satisfactory to Lender, of
compliance with all zoning, subdivision, environmental and other laws, ordinances, rules, regulations and restrictions affecting construction of the Improvements. 

(k) 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 that has insured the title
to the Mortgaged Property. 
 (l) The Borrower shall provide Lender with a final draw schedule for the Hard Construction advances in form and
substance approved by the Lender. 
 (m) Lender shall have received a detailed construction budget on forms approved by Lender detailing the
costs to construct the Improvements. 
 (n) All other terms and conditions of the Loan Documents that must be satisfied as of the date of the
particular advance of Construction Loan proceeds shall have been satisfied to the Lender’s satisfaction. 
 2.6 Additional
Conditions Precedent to Final Advance. Lender shall not be obligated to make the final advance of Loan proceeds with respect to the Land, the Improvements or any Unit included within the Project unless the conditions described in
Section 2.3 and Section 2.4 and the following additional conditions have been satisfied with respect to the Land, the Improvements or the 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 Public Authorities has been duly inspected and
approved by such Public 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) All other terms and conditions of the Loan Documents required to be met as of the date of the final advance of Construction 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 acquisition and development of the Land and the construction of the Improvements, and Borrower agrees not to expend any part of
the proceeds of the Loans for any purpose except in connection with the uses and purposes provided for in this Loan Agreement without the prior written consent of Lender. 

  
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 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 Loan Documents and any amounts so applied shall be part of the Loans 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 Loan Documents, to so advance the proceeds of the Loans. 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 the
Improvements or a particular Unit will exceed the total remaining amount of Loan proceeds to be provided by Lender for the Improvements or that Unit, Lender shall not advance any more Loan proceeds for the Improvements or that Unit until Borrower
has deposited with Lender the difference between the total remaining cost to complete the Improvements or that Unit (including sufficient funds to pay interest for the remaining term of the Loans) and the total remaining amount of the Loan proceeds
for the Improvements or that Unit. This provision will apply whenever the total remaining cost to complete the Improvements or a Unit exceeds the total remaining Loan proceeds for the Improvements or the particular Unit. Therefore, if the projected
total remaining costs to complete the Improvements or a Unit continues to increase after the first time that it exceeds the total amount of the remaining Loan proceeds for the Improvements or the Unit, Borrower shall deposit the incremental increase
before Lender advances any more Loan proceeds for the Improvements or the particular Unit. The determination of the total remaining cost to complete the Improvements and 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 Loans 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. 

  
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 2.12 Speculative Units and Construction Limitations. The Borrower may have not more than
eight (8) Speculative Units for which construction has commenced within the Project. Model Units shall be considered Speculative Units for the purpose of these limitations and Borrower shall have no more than two (2) Model Units at any
time during the term of the Loans. The Borrower shall have no more than sixteen (16) Units or four (4) Buildings under construction at any one time during the term of the Loans. The Lender may, but shall not be obligated to, advance Loan
proceeds to fund the development or construction costs for any Units during any period when the maximum limit of Speculative Units is exceeded. Borrower shall provide Lender with the information Lender requests with respect to Lender’s review
of each proposed Building and Borrower shall not commence construction of a Building until it has obtained Lender’s prior approval. 

2.13 Loan Fees. Lender’s obligation to make advances of the A&D Loan shall be contingent upon Borrower’s payment to
Lender of a fully earned non-refundable $36,600 loan fee for the A&D Loan which shall be paid to the Lender at the Loan closing and shall be fully earned when paid. Lender’s obligation to make advances and re-advances out of the
Construction Line for any Unit shall be contingent upon Borrower’s payment to Lender of a fully earned non-refundable Construction Line loan fee per Unit equal to one half of one percent (0.5%) of the total amount of the Construction Line
committed to be advanced for the Unit that the Borrower shall pay Lender at the time of the first advance of Construction Line proceeds for each Unit. 

2.14 Loan Repayment. On the A&D Loan Funding Termination Date, the Borrower shall pay all principal and accrued and unpaid interest
and costs for that portion of the A&D Loan that the Lender has allocated to those Units for which the Lender has not committed Construction Loans as of the A&D Loan Funding Termination Date. For all other Units, the Borrower shall pay all
principal and accrued and unpaid interest and costs for the A&D Loan allocated to a particular Unit and the Construction Loan for such Unit on or before the Construction Loan Maturity Date applicable to the Unit. Nothing in this Loan Agreement
or the Commitment shall impose upon or imply that Lender has any obligation to extend the A&D Loan Funding Termination Date, the Construction Line Funding Termination Date, or any Construction Loan Maturity Date, the decision to extend any of
those dates being within the sole and absolute discretion of the Lender. 
 2.15 Letter of Credit Facility. On the basis of the
representations, warranties and covenants this day made by Borrower in the Loan Documents and subject to satisfaction of the conditions herein set forth, Lender shall issue the Letters of Credit in favor of the Public Authorities pursuant to the
facility schedule approved by Lender (the “Schedule”) and on the following terms and conditions: 
 (a) The Lender agrees,
subject to the terms and conditions of this Loan Agreement, to issue the Letters of Credit for the account of the Borrower from time to time, pursuant to the Schedule. The total aggregate amount of the Letters of Credit that the Lender will issue
shall not exceed Two Million Dollars ($2,000,000). The obligation of the Lender to issue any Letters of Credit under this Letter of Credit Facility shall expire on that date that is 

  
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twenty-four (24) months from the date of this Loan Agreement, unless extended in writing by Lender in its sole discretion. The initial term of a Letter of Credit shall not exceed twenty-four
(24) months and will be renewable automatically (but only if no Event of Default has occurred and remains uncured as of the date of the renewal) for additional twelve (12) month periods to the extent that the Public Authorities require the
extension of the applicable Letter of Credit. In no event shall the Lender be obligated to issue or extend a Letter of Credit that would expire after December 30, 2016. Each Letter of Credit will be issued for the benefit of the Public
Authority to secure the Borrower’s obligations to construct the Improvements required by the Public Authorities in connection with their approval of the Project. 

(b) Each request for a Letter of Credit must be made in writing by an authorized representative of Borrower and must be accompanied by an
appropriately completed Letter of Credit Agreement in form acceptable to Lender in its sole discretion, executed by the Borrower, which must be received by the Lender not less than five (5) business days prior to the date on which the Letter of
Credit is to be issued. The purpose, form, amount and term of each Letter of Credit shall be subject to the Lender’s approval, in its sole discretion. 

(c) The Borrower agrees to pay to the Lender a non-refundable commission payable in advance on the date
the Letter of Credit is issued or renewed and on each anniversary date of the Letter of Credit after such issuance or renewal equal to one and one-half percent (1.5%) of the face amount of the Letter of Credit on each date. The Borrower shall
immediately reimburse the Lender on demand for any drawings paid by the Lender under a Letter of Credit. The Borrower’s reimbursement obligations with respect to draws on a Letter of Credit shall bear interest at a rate equal to the non-default
rate of interest then being charged Borrower under the Note plus three percent (3%) (computed for the actual number of days during which any Letter of Credit is drawn upon and the Lender remains unreimbursed), which interest shall be payable on
demand. The Borrower’s reimbursement obligations shall, until paid, be treated as outstanding advances under the Loan, and shall be secured by the Deed of Trust. 

(d) Each request for a Letter of Credit shall identify the portion of the Project to which the Letter of Credit is attributable, be in the form
of a requisition, in form and substance satisfactory to and approved by Lender, and shall be accompanied by, and shall itself constitute, a certification by Borrower that all representations and warranties of Borrower and Guarantors in the Loan
Documents remain true in all material respects as of the time of such request, and that no material adverse change in Borrower’s or any of the Guarantor’s respective financial conditions has occurred since the immediately preceding
issuance of a Letter of Credit. 
 (e) In no event will Lender be required to issue any Letter of Credit hereunder, or otherwise, if
(i) an event shall have occurred which, with the passage of time or the giving of notice, or both, could constitute an Event of Default under (A) the Loan Documents; or (B) any financing junior (or subordinate) to the Deed of Trust
and the Note secured thereby; or (C) any loan document evidencing or securing any other loan from Lender to Borrower or to any of the Guarantors, or (ii) Lender at any time determines, in its sole discretion, that the proceeds of the Loans
remaining to be advanced are insufficient to complete the Project in accordance with the plans and specifications. 

  
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 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 Loan 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 Public
Authorities and by the beneficiaries of any such restrictive covenants, respectively. 
 3.2 Permits. No work associated with the
development of the Land or 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 Public Authorities or have been dedicated (or will
be dedicated) to public use and has been or will be accepted by such Public Authorities or have been or will be created by recorded easement and all necessary steps have been taken or will be taken by Borrower or such Public 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 Loan 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 Borrower’s financial statements heretofore delivered to Lender are true and correct in all material
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 Borrower’s financial condition 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 Event of Default on the part of Borrower under the Loan
Documents and no event has occurred and is continuing which, with notice or the passage of time or both, would constitute an Event of Default under the Loan 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 Public Authority 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 promptly commence construction of the Improvements in accordance with the terms and provisions of this
Loan Agreement and will pursue the same 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 Public Authorities 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 Public
Authority. 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, 

  
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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.

 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, subject to Borrower’s contest rights set forth in
Section 4.6 of the Deed of Trust. 
 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. 

  
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 4.10 Insurance. The original policy or policies of insurance, a certified true copy
thereof and an original endorsement to the policy or policies of insurance issued by the approved insurance company that endorses the policy or policies to add the Lender as the mortgagee, loss payee and/or additional insured as its interests may
appear shall be deposited with Lender (the “Endorsement”), 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 (non-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 $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. 

  
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 (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 Loan 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 Loan proceeds to be made and delivered to Lender promptly in order to obtain advances of Loan 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 Financial Reporting. On or before
May 31 of each year, the Borrower and the Guarantors will furnish to the Lender a current financial statement including (i) a detailed balance sheet, (ii) a report disclosing in detail the Borrower’s income, expenses and net cash
flow, (iii) a detailed, comprehensive schedule of all contingent liabilities, and (iv) a certified true copy of its federal income tax return for the previous fiscal year. The Borrower shall furnish the Lender with a monthly sales status
report for the Project on the tenth (10th) day of each month commencing on the tenth (10th) day of the first full month after the
date hereof. The Borrower and the Guarantors 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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 4.16 End Loans and Sales Contracts. 

The Borrower shall provide the Lender with copies of all executed Contracts for the sale of Units within five (5) business days after
full execution. Lender shall be provided the opportunity to offer loans to purchasers of Units and Borrower will include the terms of Cardinal’s terms in its sales packages. However, notwithstanding the provisions of the preceding sentence, the
Borrower’s sales documents shall not require the purchasers of individual Units to obtain their purchase financing from the Lender or its subsidiary. 

4.17 Deposit Accounts. The Borrower shall maintain its primary operating and deposit accounts with the Lender at all times during the
term of the Loans. 
 4.18 Master Association. Borrower shall submit all existing or proposed documentation (the “Master
Association Documents”) intended or necessary to subject the Land and Improvements to a master association (the “Master Association”) to Lender for Lender’s review and approval concurrently with Borrower’s submission of the
Master Association Documents to any Public Authority required to review and approve the Master Association Documents as a precondition to creation of the Master Association. Once the Lender has approved the Master Association Documents, which
approval shall not be unreasonably withheld, delay, or conditioned, the Lender shall consent to and/or execute such Master Association Documents as are required of the Lender, in its capacity as the holder of a security interest in the Mortgaged
Property, to facilitate the Borrower’s establishment of a Master Association for the Project under the laws of the Commonwealth of Virginia. 

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. 

  
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 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 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 Loan 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 Loan Documents, including but not limited to any principal payment, interest payment, loan fee, extension fee or late
charge, within 10 days after written notice of such failure is sent by the Lender to the Borrower. 
 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 6.12 of this Article, and such default continues for thirty (30) days
after written notice of such default is sent by Lender to Borrower, or if such default cannot be reasonable cured within such thirty (30)-day period, the failure to commence such cure or diligently to prosecute the same to completion, provided in no
event shall such default continue uncured for more than ninety (90) days after written notice thereof. 
 6.3 Other Defaults. If
any other default shall occur under the Loan Documents. 
 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 Loans 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. 

  
 - 23 - 

 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 the Construction Line proceeds for a period in excess of thirty (30) days. 

6.8 [Intentionally omitted.] 

6.9 [Intentionally omitted.] 

6.10 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. 

6.11 Mechanic’s Lien. If a lien for the performance of work or the supply of materials which is established against the Mortgaged
Property remains unsatisfied or unbonded for a period of thirty (30) days after the date the lien becomes effective. 
 6.12
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 Loans, if such condition or situation is not
remedied within thirty (30) days after written notice to Borrower thereof. 
 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: 

  
 - 24 - 

 (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 that are 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; 
 (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. 
 7.1 No Conditions Precedent to Exercise of
Remedies. Neither Borrower nor any of the Guarantors 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 Loan 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 Loan Documents without first having obtained the consent of Borrower or any of the Guarantors; and in the latter event, Borrower and each of the Guarantors
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. 

  
 - 25 - 

 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 Loan Documents, and each and every such remedy shall be cumulative and shall be in addition to every other remedy given hereunder, under the Loan Documents, or now or
hereafter existing at law or in equity or by statute. Every right, power and remedy given by the Loan Documents to Lender shall be concurrent and may be pursued separately, successively or together against Borrower, the Guarantors, or the Mortgaged
Property or any part thereof, or any one or more of them; and every right, power and remedy given by the Loan 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 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 Loan Documents operate or would 

  
 - 26 - 

 
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 Loan Documents or the validity of the remaining Obligations, and the remaining provisions of the Loan 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 covenant, term, provision and condition of this Loan Agreement and the other
Loan 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 Construction Line 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. 

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. 

  
 - 27 - 

 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 two
(2) days after being sent via 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, CEO 

  

	 	    	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: 

  

	 	    	Cardinal Bank 

	 	    	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 other Loan 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 Mortgaged Property,
specifically to include but not limited to releases detailing Lender’s involvement with the financing of the Mortgaged Property. 

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. 

  
 - 28 - 

 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 Loans are paid in full. Any discrepancy between the terms of the
Commitment and the terms of the Loan Documents shall be construed in favor of the Loan 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. 
 REST OF PAGE
INTENTIONALLY LEFT BLANK 
 [Signatures and acknowledgements commence on next page] 

  
 - 29 - 

 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 HALL ROAD, 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 Virginia state chartered bank
	 	
			
	By:	 	  
	 	(SEAL)
		 	 Richard F. Schoen
 Senior Vice
President
	 	

  
 - 30 - 

 “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: 
 Property
1: 
 All of that certain lot or parcel of land designated as Parcel 47 of Section 95, originally a part of the land owned by Lewis James, situated
in Oak Grove, near the Town of Herndon, in Dranesville Magisterial District, County of Fairfax (now Loudoun), State of Virginia, bounded and described as follows: Beginning at a stone in the North line of a tract of land owned by A. T. Shirley and
in the center of a twenty foot street, thence North 59°08’ West, 111 feet to a stone in the East line of George W. Stinger’s land; thence with the East line of said Stinger, North 36° East, 216 feet to a stone; thence South
61°15’ East 120 feet to a stone in the center of a twenty foot street, thence South 38°45’ West, 204-7/10 feet to the place of beginning, containing one half (1/2) acre of land, being the land conveyed by George W. Stinger, et
us, to Ira F. Lee by deed dated May 1, 1918, and recorded in Deed Book 8T at Page 575 in the office of the Clerk of Fairfax County. Referenced is hereby made to the aforesaid instruments for a further and more particular description of the
property conveyed herein. 
 Property 2: 
 Beginning at
a stake in the North line of a tract of land owned by A. T. Shirley, and in the center of a twenty-foot street; thence North 59°08’ West, 111 feet to a stake in the East line of George W. Stinger’s land; thence with the East line of
said Stinger North 36° East, 216 feet to a stake; thence South 61°15’ West, 120 feet to an iron stake, in the center of a twenty foot street; thence South 38°45’ West, 204-7/10 feet to the place of beginning, containing
one-half acre, being the lot conveyed to the said A. T. Shirley by George A. Williams and his wife, Clara, the 4th day of August, 1925, and recorded in Liber P, No. 9, Page 524” (Among the land record of Fairfax County, Virginia.) 

Property 3: 
 Beginning at an iron marker in the original
East boundary line of said point being 194.2 feet from the center of Highway Numbered (605) and the land of Robert Washington on the East and adjoining; thence with the same South 37°09’ West, 194.8 feet to an iron marker and corner of
the original tract of land and the Southwest corner of the land of Robert Washington and in the North boundary line of the land owned by Paul Lucas; thence North 59°16” West, 115 feet to an iron marker corner of the lot to be conveyed, said
point being in the South boundary line of the original tract of land and in the boundary line of the land owned by said Paul Lucas; thence with a new division line across the tract of land, North 37°09” East, 193.8 feet to an iron marker
and corner of a lot to be conveyed and the Southwest corner; thence with said boundary line, South 59°59’ East, 115 feet to the place of beginning and containing (20280) square feet of land or .465/1000 of an acre of land, more or
less. 

  
 - 31 - 

 Property 4: 

Beginning at an iron pipe on the Southerly side of State Route 605 (50 feet), said pipe being South 66°27’ East, 279.88 feet from the corner of the
bend in State Route 605 in the Village of Oak Grove, and also being the Northwesterly corner of the land of Lee Edward Page; thence along the line of Lee Edward Page, South 30°43’ West, 179.12 feet to a concrete marker thence through the
land of George W. Stinger, North 66°27’ West, 122.56 feet to an iron pipe; [thence continuing through the land of Stinger, North 25°52’ East, 177.57 feet to a peg on the Southerly side of Route 605, thence along the Southerly side
of Route 605, South 66°27’ East, 137.72 feet to the point of beginning and containing 23,128 (twenty three thousand one hundred and twenty eight) square feet, more or less, in accordance with a survey made by me and being a portion of that
parcel of land which was conveyed to George W. Stinger from Thomas Keith, Special Commissioner, by Deed dated December 3, 1907, and recorded in Liber Y, No. 6, Page 148, of the Land Records of Loudoun County, Virginia. 

Also described as parcel of land as shown on Plat showing property of Darren T. Ewing as recorded in Deed Book 2350, Page 196 among the Land Records of
Loudoun County, Virginia. 
 Property 5: 
 Beginning at
a point at the intersection of the Easterly right-of-way of Oak Grove Road, Route #824 (formerly Route #605), and the Southerly right-of-way of Hall Road East, Route #788 (formerly Route #605) and proceeding with said Southerly right-of-way of Hall
Road, South 68°27’00” East, 142.16 feet to a point being the Northwesterly corner of the land of Ewing; 
 Thence leaving said Southerly
right-of-way of Hall Road East and proceeding with the Westerly line of the land of Ewing, South 25°52’00” West, 177.87 feet to an iron pipe found on the Northerly line of the land of Hitchcock: 

Thence with said Northerly line of the land of Hitchcock, North 68°27’00” West, 118.01 feet to a point on the aforementioned, Easterly
right-of-way of Oak Grove Road, said point being the Northwesterly corner of the land of Hitchcock; 
 Thence with said Easterly right-of-way of Oak Grove
Road, North 18°06’ East, 178.53 feet to the point and place of beginning and containing 23,198 square feet of land, more or less. 
 Property 6:

 Metes and Bounds Description of Tax Map Section 95 Parcel 50, designated as Pin # ###-##-####, standing in the name of The John C. Hitchcock
Revocable Living Trust Recorded in Instrument # 20031212-0162215 pages 1 thru 4, situated in the Dulles Election District, Loudoun County, Virginia, attached to Correction Deed recorded August 20, 2010 as Instrument No. 20100820-0049913.

 “BEGINNING at an iron pin set on the East side of Oakgrove Road, State Route 824 corner to Anderson; thence with the East side of Oakgrove Road N
19-15-15 E 182.46 feet to an iron pin set corner to Snyder; thence leaving said Road and with Snyder in part and Ewing, S 66-56-27 E 236.75 feet to an iron pin set corner to Ewing, The Mabel B. Paige Estate and Crank; thence with

  
 - 32 - 

 
Crank, S 25-08-34 W188.94 feet to an iron pin set comer to Crank and in the line of the Plat of Resubdivision of Grovewood-Parcel B, Section 1; thence with the line of the Plat of
Resubdivision of Grovewood-Parcel B, Section 1, N 65-51-44 W 123.56 feet to an existing pin comer to Anderson; thence with Anderson, N 64-15-10 W 9434 feet to the beginning”. Containing 0.9710 Acre more or less. 

Property 7: 
 BEGINNING in the center of Highway numbered
605, said point being a corner of the original lot or parcel of land also a corner of the lot now owned by the heirs of the late Ira Franklin Lee; thence S.37°09’W. and at the distance of 12.5 feet passing over an iron pipe marker in the
original boundary line and the division line between the lot or parcel of land now owned by the heirs of Ira Franklin Lee and adjoining on the East side thereof and with the same boundary line extended an additional distance of 181.7 feet and making
a total distance of 194.2 feet to an iron marker and corner in the West boundary line of Robert Washington’s lot; thence departing from the boundary line of the original tract of land and with new boundary lines across the said lot
N.59°59’W. 115 feet to an iron marker; thence N 37°09’E and at the distance of 181.7 feet passing over an iron marker in said line and with the same line extended an additional distance of 12.5 feet and making a total distance of
194.2 feet to the center of Highway numbered 605, and the original North boundary line of said lot and the land of the heirs of the late Ira Franklin lee adjoining; thence with the original boundary line thereof, S 59°59’E, 115 feet to the
place of beginning and containing 20232 square feet of land or 464/1000 of an acre of land, more or less. 

  
 - 33 - 

 “EXHIBIT B” 
  

[THIS PAGE INTENTIONALLY LEFT BLANK] 

  
 - 34 -EX-10.1

 Exhibit 10.1 

Privileged & Confidential 

CHANGE IN CONTROL SEVERANCE AGREEMENT 

CHANGE IN CONTROL SEVERANCE AGREEMENT (this “Agreement”) dated as of March 28, 2014, by and between
Spectrum Pharmaceuticals, Inc. (the “Company”), and             (the “Employee”). 

W I T N E S S E T H 

WHEREAS, the Company desires to offer certain severance protections to the Employee if the Employee’s employment with the Company
is terminated by the Company under certain circumstances following a Change in Control. 
 NOW, THEREFORE, in consideration of the
foregoing, of the mutual promises contained herein and of other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows: 

1. DEFINITIONS. For purposes of this Agreement, capitalized terms and phrases used herein and not otherwise defined shall have the
meanings ascribed in this Section 1: 
 (a) “Accrued Benefits” shall mean: (i) (A) any unpaid Base
Salary through the date of termination; (B) reimbursement for any unreimbursed business expenses incurred through the date of termination; and (C) any accrued but unused vacation time in accordance with Company policy, in each case,
payable within sixty (60) days following the applicable termination of employment (or such earlier date as may be required by applicable law); and (ii) all other accrued and vested payments, benefits or fringe benefits to which the
Employee shall be entitled in accordance with the applicable compensation arrangement or benefit plan or program of the Company. 
 (b)
“Base Salary” shall mean the Employee’s annual base compensation rate for services paid by the Company to the Employee at the time immediately prior to the Employee’s termination of employment, as reflected in the
Company’s payroll records or, if higher, the Employee’s annual base compensation rate immediately prior to a Change in Control. Base Salary shall not include commissions, bonuses, overtime pay, incentive compensation, benefits paid under
any qualified plan, any group medical, dental or other welfare benefit plan, non-cash compensation, or any other additional compensation, but shall include amounts reduced pursuant to the Employee’s salary reduction agreement under
Section 125, 132(f)(4) or 401(k) of the Internal Revenue Code, if any, or a nonqualified elective deferred compensation arrangement, if any, to the extent that in each such case the reduction is to base salary. 

(c) “Board” shall mean the Board of Directors of the Company. 

  
 1 

 (d) “Cause” shall mean the Employee engaging in any of the following:
(i) fraud, misappropriation, embezzlement or acts of similar dishonesty; (ii) conviction of, or plea of nolo contendere to a felony; (iii) any illegal use of drugs or excessive use of alcohol in the workplace;
(iv) intentional and willful misconduct that may subject the Company to criminal or civil liability; (v) breach of the Employee’s duty of loyalty to the Company or diversion or usurpation of corporate opportunities properly belonging
to the Company; (vi) the knowing breach of any Company confidentiality agreement to which the Employee is a party; (vii) disregard of the Company policies and procedures; (viii) insubordination, (ix) failure to satisfactorily
perform the duties of the Employee’s position, or (x) violation of any material provision of this Agreement, including, without limitation, Section 5 hereof, in each case, as determined by the Company in its sole discretion.
The Company’s lack of immediate action with respect to conduct of the Employee that would constitute Cause hereunder shall not preclude the Company from taking later action on such act or taking action with respect to another such act committed
by the Employee. 
 (e) “Change in Control” shall mean the consummation of the first transaction following the date hereof,
whether in a single transaction or in a series of transactions, that results in (i) the holders of the outstanding voting securities of the Company as of the date hereof ceasing to hold a majority of the outstanding voting securities of the
Company or its successor, or (ii) a sale of all or substantially all of the assets of the Company on a consolidated basis. 
 (f)
“Code Section 409A” shall mean Internal Revenue Code Section 409A and the treasury regulations and other official guidance promulgated thereunder from time to time. 

(g) “Good Reason” shall mean the occurrence of any of the following events, without the express written consent of the
Employee, unless such events are fully corrected in all material respects by the Company within thirty (30) days following written notification thereof by the Employee to the Company: (i) a material diminution in the Employee’s Base
Salary and employee benefits package in the aggregate as in effect immediately prior to a Change in Control; (ii) a material diminution in the Employee’s duties, authorities or responsibilities (other than temporarily while physically or
mentally incapacitated or as required by applicable law) as in effect immediately prior to a Change in Control; (iii) a relocation of the Employee’s primary work location by more than fifty (50) miles from its location as in effect
immediately prior to a Change in Control that also results in a material increase in the Employee’s commuting distance; or (iv) a material breach of this Agreement by the Company. The Employee shall provide the Company with a written
notice detailing the specific circumstances alleged to constitute Good Reason within ninety (90) days after the first occurrence of such circumstances, and actually terminate employment within thirty (30) days following the expiration of
the Company’s cure period as set forth above. Otherwise, any claim of such circumstances as “Good Reason” shall be deemed irrevocably waived by the Employee. 

2. TERM 
 (a) At-Will
Employment. The Employee acknowledges and agrees that the Employee’s employment with the Company is and shall remain “at-will” and the Employee’s employment with the Company may be terminated at any time and for any reason
(or no reason) by the Company or the Employee, with or without notice. During the period of the Employee’s employment with the Company, the Employee shall perform such duties and fulfill such responsibilities as reasonably requested by the
Company from time to time commensurate with the Employee’s position with the Company. 

  
 2 

 (b) Expiration. Notwithstanding any other provisions herein to the contrary, in the event
that a Change in Control is consummated and the Employee remains in the continued employment of the Company through the first anniversary of such Change in Control, this Agreement shall expire automatically as of such date, and thereafter, all of
the rights and obligations of the Employee and the Company hereunder shall become null and void and without any further legal force or effect whatsoever. 

3. CHANGE IN CONTROL SEVERANCE BENEFITS. 

(a) BENEFITS UPON TERMINATION WITHOUT CAUSE OR FOR GOOD REASON. If the Employee’s employment by the Company is terminated (x) by the
Company other than for Cause (and other than due to death or physical or mental incapacity), or (y) by the Employee for Good Reason, in each case, within twelve (12) months following the occurrence of a Change in Control, the Company shall
pay or provide the Employee with the following benefits, subject to the Employee’s continued compliance with the obligations in Sections 4, 5 and 6 hereof. 

(i) The Accrued Benefits. 
 (ii)
An amount equal to the Employee’s monthly Base Salary rate (but not as an employee), paid monthly for a period of twelve (12) months following such termination; provided that to the extent that the payment of any amount constitutes
“nonqualified deferred compensation” for purposes of Code Section 409A, any such payment scheduled to occur during the first sixty (60) days following such termination shall not be paid until the sixtieth (60th) day following such termination and shall include payment of any amount that was otherwise scheduled to be paid prior thereto. 

(iii) The impact of the Employee’s termination of employment under this Section 3(a) with respect to any outstanding
long-term incentive program awards shall be governed by all of the terms and conditions of such program and the applicable award documentation thereunder. 

(b) OTHER TERMINATIONS. The parties intention under this Agreement is to provide severance benefits only under the circumstances expressly
enumerated under Section 3(a) hereof. Unless otherwise determined by the Company in its sole discretion, in the event of a termination of the Employee’s employment with the Company for any reason (or no reason) or at any time other
than as expressly contemplated by Section 3(a) hereof, the Employee shall not be entitled to receive any severance benefits or other further compensation from the Company hereunder whatsoever, except for the Accrued Benefits and any
other rights or benefits to which the Employee is otherwise entitled pursuant to the requirements of applicable law. 
 (c) OTHER
OBLIGATIONS. Upon any termination of the Employee’s employment with the Company, on the request of the Company, the Employee shall promptly resign from any position as an officer, director or fiduciary of any Company-related entity. 

(d) EXCLUSIVE REMEDY. The amounts payable to the Employee following termination of employment hereunder shall be in full and complete
satisfaction of the Employee’s rights under this Agreement and any other claims that the Employee may have in respect of the Employee’s employment with the Company or any of its affiliates in connection with any termination of employment
contemplated hereunder, and the Employee acknowledges that such amounts are fair and reasonable, and are the Employee’s sole and exclusive remedy, in lieu of all other remedies at law or in equity, with respect to the termination of the
Employee’s employment hereunder or any breach of this Agreement. 

  
 3 

 4. RELEASE; NO MITIGATION; NO SET-OFFS. Any and all amounts payable and benefits or
additional rights provided pursuant to this Agreement beyond the Accrued Benefits shall only be payable if the Employee delivers to the Company and does not revoke a general release of claims in favor of the Company substantially in the form of
Exhibit A attached hereto. Such release shall be executed and delivered (and no longer subject to revocation, if applicable) within sixty (60) days following termination. In no event shall the Employee be obligated to seek other
employment or take any other action by way of mitigation of the amounts payable to the Employee under any of the provisions of this Agreement, nor shall the amount of any payment hereunder be reduced by any compensation earned by the Employee as a
result of employment by a subsequent employer. The Company’s obligations to pay the Employee amounts hereunder shall not be subject to set-off, counterclaim or recoupment by amounts owed by the Employee to the Company or any of its affiliates.

 5. RESTRICTIVE COVENANTS. 

(a) CONFIDENTIALITY; NONDISPARAGEMENT. 

(i) The Employee recognizes that by reason of the Employee’s provision of services to the Company, the Employee has acquired confidential
information and trade secrets concerning research and development, know-how, processes and techniques, technical data, customers, sales prospects, distribution, pricing and cost information, and marketing plans and proposals, financial data and the
intellectual property of the Company (collectively, the “Proprietary Information”), the use or disclosure of which could cause the Company substantial loss and damages that could not be readily calculated and for which no remedy at
law would be adequate; provided that Proprietary Information does not include any information that (A) is or becomes available to the general public or is generally available within the relevant business or industry other than as a
result of an action by the Employee in breach of this Agreement, or (B) the Employee receives or has received on a non-confidential basis from a source other than the Company. Accordingly, the Employee covenants and agrees with the Company
that, for the period commencing on the date hereof and ending on the first anniversary of the date that the Employee ceases to provide services to the Company, the Employee will not at any time, except in performance of the Employee’s
obligations to the Company or with the prior written consent of the Company, directly or indirectly, disclose or reveal to any person, entity or other organization or use for the Employee’s own benefit any Proprietary Information known to the
Employee unless disclosure is required by law, regulation or legal process (including, without limitation, by deposition, interrogatory, request for documents, subpoena, civil investigative demand or similar process) in connection with any
proceeding by or before a governmental or judicial authority, regulatory or administrative body or securities exchange. For purposes of this Agreement, Proprietary Information may be in any medium or form, including, without limitation, physical
documents, computer files or disks, videotapes, audiotapes, and oral communications. 

  
 4 

 (ii) In the event that the Employee is requested or required by law, regulation or legal process
to disclose any Proprietary Information, the Employee shall provide the Company with prompt written notice so that the Company may, at its own cost, seek a protective order or other appropriate remedy. In the event that such protective order or
other remedy is not obtained or the Company waives its right to seek such an order or remedy, the Employee shall, without liability under this Agreement, furnish only that portion of such Proprietary Information or take only such action that, in the
opinion of the Employee’s counsel, the Employee is required to disclose under applicable law, regulation or legal process; provided that the Employee shall exercise the Employee’s commercially reasonable efforts to obtain assurance
that confidential treatment shall be accorded any such Proprietary Information. 
 (iii) The Employee agrees that the Employee will not
make, or cause or assist any other person to make, any statement or other communication, written or otherwise, to any third party, including, without limitation, books, articles or writings of any other kind, as well as film, videotape, audio tape,
computer/internet format or any other medium, which impugns, attacks or criticizes, is misleading or untrue with respect to, or is otherwise disparaging (or that constitutes trade libel) of the reputation, business, prospects, products, services or
character of any of the Company or the Company or any of their affiliates or any of their respective directors, officers or employees. Nothing in this Section 5(a)(iii) shall prohibit the Employee from providing truthful information in
response to a subpoena or other legal process. 
 (b) INVENTIONS. (i) The Employee acknowledges and agrees that all ideas,
methods, inventions, discoveries, improvements, work products, developments, software, know-how, processes, techniques, methods, works of authorship and other work product, whether patentable or unpatentable, (A) that are reduced to practice,
created, invented, designed, developed, contributed to, or improved with the use of any Company resources and/or within the scope of the Employee’s work with the Company or that relate to the business, operations or actual or demonstrably
anticipated research or development of the Company, and that are made or conceived by the Employee, solely or jointly with others, during the period of the Employee’s employment with the Company, or (B) suggested by any work that the
Employee performs in connection with the Company, either while performing the Employee’s duties with the Company or on the Employee’s own time, but only insofar as the Inventions are related to the Employee’s work as an employee or
other service provider to the Company, shall belong exclusively to the Company (or its designee), whether or not patent or other applications for intellectual property protection are filed thereon (the “Inventions”). The Employee
will keep full and complete written records (the “Records”), in the manner prescribed by the Company, of all Inventions, and will promptly disclose all Inventions completely and in writing to the Company. The Records shall be the
sole and exclusive property of the Company, and the Employee will surrender them upon the termination of the Employee’s employment with the Company, or upon the Company’s request. The Employee will assign to the Company the Inventions and
all patents or other intellectual property rights that may issue thereon in any and all countries, whether during or subsequent to the Employee’s employment with the Company, together with the right to file, in the Employee’s name or in
the name of the Company (or its designee), applications for patents and equivalent rights (the “Applications”). The Employee will, at any time during and subsequent to the Employee’s employment with the Company, make such
applications, sign such papers, take all rightful oaths, and perform all other acts as may be requested from time to time by the Company to perfect, record, enforce, protect, patent or register the Company’s rights in the Inventions, all
without additional compensation to the Employee from the Company. The Employee will also execute assignments to the Company (or its designee) of the Applications, and give the Company and its attorneys all reasonable assistance (including the giving
of testimony) to obtain the Inventions for the Company’s benefit, all without additional compensation to the Employee from the Company, but entirely at the Company’s expense. 

  
 5 

 (ii) In addition, the Inventions will be deemed Work for Hire, as such term is defined under the
copyright laws of the United States, on behalf of the Company and the Employee agrees that the Company will be the sole owner of the Inventions, and all underlying rights therein, in all media now known or hereinafter devised, throughout the
universe and in perpetuity without any further obligations to the Employee. If the Inventions, or any portion thereof, are deemed not to be Work for Hire, or the rights in such Inventions do not otherwise automatically vest in the Company, the
Employee hereby irrevocably conveys, transfers and assigns to the Company, all rights, in all media now known or hereinafter devised, throughout the universe and in perpetuity, in and to the Inventions, including, without limitation, all of the
Employee’s right, title and interest in the copyrights (and all renewals, revivals and extensions thereof) to the Inventions, including, without limitation, all rights of any kind or any nature now or hereafter recognized, including, without
limitation, the unrestricted right to make modifications, adaptations and revisions to the Inventions, to exploit and allow others to exploit the Inventions and all rights to sue at law or in equity for any infringement, or other unauthorized use or
conduct in derogation of the Inventions, known or unknown, prior to the date hereof, including, without limitation, the right to receive all proceeds and damages therefrom. In addition, the Employee hereby waives any so-called “moral
rights” with respect to the Inventions. To the extent that the Employee has any rights in the results and proceeds of the Employee’s service to the Company that cannot be assigned in the manner described herein, the Employee agrees to
unconditionally waive the enforcement of such rights. The Employee hereby waives any and all currently existing and future monetary rights in and to the Inventions and all patents and other registrations for intellectual property that may issue
thereon, including, without limitation, any rights that would otherwise accrue to the Employee’s benefit by virtue of the Employee being an employee of or other service provider to the Company. 

(c) RETURN OF COMPANY PROPERTY. On the date of the Employee’s termination of employment with the Company for any reason (or at any
time prior thereto at the Company’s request), the Employee shall return all property belonging to the Company or its affiliates (including, but not limited to, any Company-provided laptops, computers, cell phones, wireless electronic mail
devices or other equipment, or documents and property belonging to the Company). The Employee may retain the Employee’s rolodex and similar address books provided that such items only include contact information. 

(d) REASONABLENESS OF COVENANTS. In signing this Agreement, the Employee gives the Company assurance that the Employee has carefully
read and considered all of the terms and conditions of this Agreement, including the restraints imposed under this Section 5. The Employee agrees that these restraints are necessary for the reasonable and proper protection of the Company
and its affiliates and their Confidential Information and that each and every one of the restraints is reasonable in respect of subject matter, length of time and geographic area, and that these restraints, individually or in the aggregate, will not
prevent the Employee from obtaining other suitable employment during the period in which the Employee is bound by the restraints. The covenants contained in this Section 5 are independent covenants and shall be enforceable by the Company
regardless of any claims that the Employee shall have against the Company or any of its affiliates, whether under this Agreement or otherwise. The Employee further covenants that the Employee will not challenge the reasonableness or enforceability
of any of the covenants set forth in this Section 5. It is also agreed that each of the Company’s affiliates will have the right to enforce all of the Employee’s obligations to that affiliate under this Agreement, including
without limitation pursuant to this Section 5. 

  
 6 

 (e) REFORMATION. In the event that any of the covenants contained in this
Section 5 shall be determined by any court of competent jurisdiction to be unenforceable for any reason whatsoever, then any such provision or provisions shall not be deemed void, and the parties hereto agree that said limits may be
modified by the court and that said covenants contained in this Section 5 shall be amended in accordance with said modification, it being specifically agreed by the parties that it is their continuing desire that the covenants contained
in this Section 5 be enforced to the full extent of its terms and conditions or if a court finds the scope of the covenants unenforceable, the court should redefine the covenants so as to comply with applicable law. 

6. COOPERATION. Upon the receipt of reasonable notice from the Company (including outside counsel), the Employee agrees that while
employed by the Company and thereafter, the Employee will respond and provide information with regard to matters in which the Employee has knowledge as a result of the Employee’s employment with the Company, and will provide reasonable
assistance to the Company, its affiliates and their respective representatives in defense of all claims that may be made against the Company or its affiliates, and will assist the Company and its affiliates in the prosecution of all claims that may
be made by the Company or its affiliates, to the extent that such claims may relate to the period of the Employee’s employment with the Company. The Employee agrees to promptly inform the Company if the Employee becomes aware of any lawsuit
involving such claims that may be filed or threatened against the Company or its affiliates. The Employee also agrees to promptly inform the Company (to the extent that the Employee is legally permitted to do so) if the Employee is asked to assist
in any investigation of the Company or its affiliates (or their actions), regardless of whether a lawsuit or other proceeding has then been filed against the Company or its affiliates with respect to such investigation, and shall not do so unless
legally required. Upon presentation of appropriate documentation, the Company shall pay or reimburse the Employee for all reasonable out-of-pocket travel, duplicating or telephonic expenses incurred by the Employee in complying with this
Section 6. 
 7. EQUITABLE RELIEF AND OTHER REMEDIES. The Employee acknowledges and agrees that the remedy at law for any
breach of any of the provisions of Section 5 or Section 6 hereof may be inadequate and, accordingly, the Employee covenants and agrees that the Company shall, in addition to any other rights and remedies to which the Company
and its affiliates may have under applicable law, be entitled to equitable relief, including, without limitation, injunctive relief, without bond or other necessity, and to the remedy of specific performance with respect to any breach or threatened
breach of such covenants, as may be available from any court of competent jurisdiction. In the event of a material violation by the Employee of Section 5 or Section 6 hereof, any severance being paid to the Employee pursuant
to this Agreement or otherwise shall immediately cease, and any severance previously paid to the Employee shall be immediately repaid to the Company. 

  
 7 

 8. NO ASSIGNMENTS. This Agreement is personal to each of the parties hereto. Except as
provided in this Section 8 hereof, no party may assign or delegate any rights or obligations hereunder without first obtaining the written consent of the other party hereto. The Company may assign this Agreement to any successor to all
or substantially all of the business and/or assets of the Company; provided that the Company shall require such successor to expressly assume and agree to perform this Agreement in the same manner and to the same extent that the Company would
be required to perform it if no such succession had taken place. As used in this Agreement, “Company” shall mean the Company and any successor to its business and/or assets, which assumes and agrees to perform the duties and
obligations of the Company under this Agreement by operation of law or otherwise. 
 9. NOTICE. For purposes of this Agreement,
notices and all other communications provided for in this Agreement shall be in writing and shall be deemed to have been duly given (a) on the date of delivery, if delivered by hand, (b) on the date of transmission, if delivered by
confirmed facsimile or electronic mail, (c) on the first business day following the date of deposit, if delivered by guaranteed overnight delivery service, or (d) on the fourth business day following the date delivered or mailed by United
States registered or certified mail, return receipt requested, postage prepaid, addressed as follows: 
 If to the Employee: 

At the address (or to the facsimile number) shown 

in the books and records of the Company. 

If to the Company: 
 Spectrum
Pharmaceuticals, Inc. 
 11500 S. Eastern Avenue, Suite 240 

Henderson, NV 89052 
 Attention:
Legal Department 
 e-mail: legal@sppirx.com 

With a copy to (which shall not constitute notice): 

Spectrum Pharmaceuticals, Inc. 

11500 S. Eastern Avenue, Suite 240 

Henderson, NV 89052 
 Attention:
Chief Executive Officer 
 or to such other address as either party may have furnished to the other in writing in accordance herewith, except that notices
of change of address shall be effective only upon receipt. 

  
 8 

 10. SECTION HEADINGS; INCONSISTENCY. The section headings used in this Agreement are
included solely for convenience and shall not affect, or be used in connection with, the interpretation of this Agreement. In the event of any inconsistency between the terms of this Agreement and any form, award, plan or policy of the Company, the
terms of this Agreement shall govern and control. 
 11. SEVERABILITY. The provisions of this Agreement shall be deemed severable.
The invalidity or unenforceability of any provision of this Agreement in any jurisdiction shall not affect the validity, legality or enforceability of the remainder of this Agreement in such jurisdiction or the validity, legality or enforceability
of any provision of this Agreement in any other jurisdiction, it being intended that all rights and obligations of the parties hereunder shall be enforceable to the fullest extent permitted by applicable law. 

12. COUNTERPARTS. This Agreement may be executed in several counterparts, each of which shall be deemed to be an original but all of
which together will constitute one and the same instrument. 
 13. GOVERNING LAW; JURISDICTION. This Agreement, the rights and
obligations of the parties hereto, and all claims or disputes relating thereto, shall be governed by and construed in accordance with the laws of the State of Nevada, without regard to the choice of law provisions thereof. Each of the parties agrees
that any dispute between the parties shall be resolved only in the courts of the State of Nevada or the United States District Court for Nevada and the appellate courts having jurisdiction of appeals in such courts. In that context, and without
limiting the generality of the foregoing, each of the parties hereto irrevocably and unconditionally (a) submits in any proceeding relating to this Agreement or the Employee’s employment by the Company or any affiliate, or for the
recognition and enforcement of any judgment in respect thereof (a “Proceeding”), to the exclusive jurisdiction of the courts of the State of Nevada, the court of the United States of America for the State of Nevada, and appellate
courts having jurisdiction of appeals from any of the foregoing, and agrees that all claims in respect of any such Proceeding shall be heard and determined in such Nevada State court or, to the extent permitted by law, in such federal court,
(b) consents that any such Proceeding may and shall be brought in such courts and waives any objection that the Employee or the Company may now or thereafter have to the venue or jurisdiction of any such Proceeding in any such court or that
such Proceeding was brought in an inconvenient court and agrees not to plead or claim the same, (c) WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY PROCEEDING (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO THIS AGREEMENT
OR THE EMPLOYEE’S EMPLOYMENT BY THE COMPANY OR ANY AFFILIATE OF THE COMPANY, OR THE EMPLOYEE’S OR THE COMPANY’S PERFORMANCE UNDER, OR THE ENFORCEMENT OF, THIS AGREEMENT, (d) agrees that service of process in any such Proceeding
may be effected by mailing a copy of such process by registered or certified mail (or any substantially similar form of mail), postage prepaid, to such party at the Employee’s or the Company’s address as provided in Section 9
hereof, and (e) agrees that nothing in this Agreement shall affect the right to effect service of process in any other manner permitted by the laws of the State of Nevada. The parties acknowledge and agree that in connection with any dispute
hereunder, each party shall pay all of its own costs and expenses, including, without limitation, its own legal fees and expenses. 

  
 9 

 14. MISCELLANEOUS. No provision of this Agreement may be modified, waived or discharged
unless such waiver, modification or discharge is agreed to in writing and signed by the Employee and such officer or director of the Company as may be designated by the Board. No waiver by either party hereto at any time of any breach by the other
party hereto of, or compliance with, any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time. This
Agreement together with all exhibits hereto (if any) sets forth the entire agreement of the parties hereto in respect of the subject matter contained herein and supersedes any and all prior agreements or understandings between the Employee and the
Company with respect to the subject matter hereof. No agreements or representations, oral or otherwise, express or implied, with respect to the subject matter hereof have been made by either party which are not expressly set forth in this Agreement.

 15. TAX MATTERS. 

(a) WITHHOLDING. The Company may withhold from any and all amounts payable under this Agreement or otherwise such federal, state and
local taxes as may be required to be withheld pursuant to any applicable law or regulation. 
 (b) CODE SECTION 409A COMPLIANCE. 

(i) The intent of the parties is that payments and benefits under this Agreement comply with Code Section 409A, and, accordingly, to the
maximum extent permitted, this Agreement shall be interpreted to be in compliance therewith. To the extent that any provision hereof is modified in order to comply with Code Section 409A, such modification shall be made in good faith and shall,
to the maximum extent reasonably possible, maintain the original intent and economic benefit to the Employee and the Company of the applicable provision without violating the provisions of Code Section 409A. 

(ii) To the extent required for purposes of Code Section 409A, if applicable, a termination of employment shall not be deemed to have
occurred for purposes of any provision of this Agreement providing for the payment of any amount or benefit upon or following a termination of employment unless such termination is also a “separation from service” within the meaning of
Code Section 409A and, for purposes of any such provision of this Agreement, references to a “termination,” “termination of employment” or like terms shall mean “separation from service.” Notwithstanding anything
to the contrary in this Agreement, if the Employee is deemed on the date of termination to be a “specified employee” within the meaning of that term under Code Section 409A(a)(2)(B), then with regard to any payment or the provision of
any benefit that is considered “nonqualified deferred compensation” under Code Section 409A payable on account of a “separation from service,” such payment or benefit shall not be made or provided until the date which is the
earlier of (A) the expiration of the six (6)-month period measured from the date of such “separation from service” of the Employee, and (B) the date of the Employee’s death, to the extent required under Code
Section 409A. Upon the expiration of the foregoing delay period, all payments and benefits delayed pursuant to this Section 15(b)(ii) (whether they would have otherwise been payable in a single sum or in installments in the absence
of such delay) shall be paid or reimbursed to the Employee in a lump sum, and all remaining payments and benefits due under this Agreement shall be paid or provided in accordance with the normal payment dates specified for them herein. 

  
 10 

 (iii) To the extent that reimbursements or other in-kind benefits under this Agreement constitute
“nonqualified deferred compensation” for purposes of Code Section 409A, (A) all expenses or other reimbursements hereunder shall be made on or prior to the last day of the taxable year following the taxable year in which such
expenses were incurred by the Employee, (B) any right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit, and (C) no such reimbursement, expenses eligible for reimbursement, or in-kind
benefits provided in any taxable year shall in any way affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other taxable year. For purposes of Code Section 409A, the Employee’s right to receive
installment payments pursuant to this Agreement shall be treated as a right to receive a series of separate and distinct payments. Whenever a payment under this Agreement specifies a payment period with reference to a number of days, the actual date
of payment within the specified period shall be within the sole discretion of the Company. 
 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

  
 11 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first
written above. 
  

			
	 SPECTRUM PHARMACEUTICALS, INC.

		
	By:	 	   

	Name:	 	
	Title:	 	
	
	EMPLOYEE
		
	By:	 	  

	Name:	 	
	 Title:
	 	

 Change in Control Severance Agreement Signature Page 

 EXHIBIT A 

GENERAL RELEASE 

I,             , in consideration of and subject to the performance by Spectrum
Pharmaceuticals, Inc. (together with its subsidiaries and successors, the “Company”), of its obligations under the Change in Control Severance Agreement dated as of March 28, 2014 (the “Agreement”), do hereby
release and forever discharge as of the date hereof the Company and its respective affiliates, subsidiaries and direct or indirect parent entities and all present, former and future directors, officers, agents, representatives, employees, successors
and assigns of the Company and/or its respective affiliates, subsidiaries and direct or indirect parent entities (collectively, the “Released Parties”) to the extent provided below (this
“General Release”). The Released Parties are intended to be third-party beneficiaries of this General Release, and this General Release may be enforced by each of them in accordance with the terms hereof in respect of the rights
granted to such Released Parties hereunder. Terms used herein but not otherwise defined shall have the meanings given to them in the Agreement. 

1. I understand that any payments or benefits paid or granted to me under Section 3 of the Agreement represent, in part,
consideration for signing this General Release and are not salary, wages or benefits to which I was already entitled. I understand and agree that I will not receive certain of the payments and benefits specified in Section 3 of the Agreement
unless I execute this General Release and do not revoke this General Release within the time period permitted hereafter. Such payments and benefits will not be considered compensation for purposes of any employee benefit plan, program, policy or
arrangement maintained or hereafter established by the Company or its affiliates. 
 2. Except as provided in paragraphs 4 and
5 below and except for the provisions of the Agreement which expressly survive the termination of my employment with the Company, I knowingly and voluntarily (for myself, my heirs, executors, administrators and assigns) release and forever discharge
the Company and the other Released Parties from any and all claims, suits, controversies, actions, causes of action, cross-claims, counter-claims, demands, debts, compensatory damages, liquidated damages,
punitive or exemplary damages, other damages, claims for costs and attorneys’ fees, or liabilities of any nature whatsoever in law and in equity, both past and present (through the date that this General Release becomes effective and
enforceable) and whether known or unknown, suspected, or claimed against the Company or any of the Released Parties which I, my spouse, or any of my heirs, executors, administrators or assigns, may have, which arise out of or are connected with my
employment with, or my separation or termination from, the Company (including, but not limited to, any allegation, claim or violation, arising under: Title VII of the Civil Rights Act of 1964, as amended; the Civil Rights Act of 1991; the Age
Discrimination in Employment Act of 1967, as amended (including the Older Workers Benefit Protection Act); the Equal Pay Act of 1963, as amended; the Americans with Disabilities Act of 1990; the Family and Medical Leave Act of 1993; the Worker
Adjustment Retraining and Notification Act; the Employee Retirement Income Security Act of 1974; any applicable Executive Order Programs; the Fair Labor Standards Act; or their state or local counterparts; or under any other federal, state or local
civil or human rights law, or under any other local, state, or federal law, regulation or ordinance; or under any public policy, contract or tort, or under common law; or arising under any policies, practices or procedures of the Company; or any
claim for wrongful discharge, breach of contract, infliction of emotional distress, defamation; or any claim for costs, fees, or other expenses, including attorneys’ fees incurred in these matters) (all of the foregoing collectively referred to
herein as the “Claims”). 

  
 A-1 

 3. I represent that I have made no assignment or transfer of any right, claim, demand,
cause of action, or other matter covered by paragraph 2 above. 
 4. I agree that this General Release does not waive or
release any rights or claims that I may have under the Age Discrimination in Employment Act of 1967 which arise after the date I execute this General Release. I acknowledge and agree that my separation from employment with the Company in compliance
with the terms of the Agreement shall not serve as the basis for any claim or action (including, without limitation, any claim under the Age Discrimination in Employment Act of 1967). 

5. I agree that I hereby waive all rights to sue or obtain equitable, remedial or punitive relief from any or all Released Parties
of any kind whatsoever in respect of any Claim, including, without limitation, reinstatement, back pay, front pay, and any form of injunctive relief. Notwithstanding the above, I further acknowledge that I am not waiving and am not being required to
waive any right that cannot be waived under law, including the right to file an administrative charge or participate in an administrative investigation or proceeding; provided, however, that I disclaim and waive any right to share or
participate in any monetary award resulting from the prosecution of such charge or investigation or proceeding. Additionally, I am not waiving (i) any right to the Accrued Benefits or any severance benefits to which I am entitled under the
Agreement, (ii) any claim relating to directors’ and officers’ liability insurance coverage or any right of indemnification under the Company’s organizational documents or otherwise, (iii) claims under the Consolidated
Omnibus Budget Reconciliation Act of 1985, as amended, (iv) claims related to reimbursement of ordinary and reasonable business expenses in accordance with the Company’s policies in effect from time to time, and (v) claims relating to
any outstanding equity-based award on the date of termination in accordance with the terms thereof. 
 6. In signing this
General Release, I acknowledge and intend that it shall be effective as a bar to each and every one of the Claims hereinabove mentioned or implied. I expressly consent that this General Release shall be given full force and effect according to each
and all of its express terms and provisions, including those relating to unknown and unsuspected Claims (notwithstanding any state or local statute that expressly limits the effectiveness of a general release of unknown, unsuspected and
unanticipated Claims), if any, as well as those relating to any other Claims hereinabove mentioned or implied. I acknowledge and agree that this waiver is an essential and material term of this General Release and that without such waiver the
Company would not have agreed to the terms of the Agreement. I further agree that in the event I should bring a Claim seeking damages against the Company, or in the event I should seek to recover against the Company in any Claim brought by a
governmental agency on my behalf, this General Release shall serve as a complete defense to such Claims to the maximum extent permitted by law. I further agree that I am not aware of any pending claim of the type described in paragraph 2 above as of
the execution of this General Release. 

  
 A-2 

 7. I agree that neither this General Release, nor the furnishing of the consideration
for this General Release, shall be deemed or construed at any time to be an admission by the Company, any Released Party or myself of any improper or unlawful conduct. 

8. I agree that if I violate this General Release by suing the Company or the other Released Parties, I will pay all costs and
expenses of defending against the suit incurred by the Released Parties, including reasonable attorneys’ fees. 
 9. I
agree that this General Release and the Agreement are confidential and agree not to disclose any information regarding the terms of this General Release or the Agreement, except to my immediate family and any tax, legal or other counsel that I have
consulted regarding the meaning or effect hereof or as required by law, and I will instruct each of the foregoing not to disclose the same to anyone. 

10. Any non-disclosure provision in this General Release does not prohibit or restrict me
(or my attorney) from responding to any inquiry about this General Release or its underlying facts and circumstances by the Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA), any other self-regulatory organization or any governmental entity. 
 11. I hereby acknowledge that
Sections 3 through 9, 11, and 13 through 15 of the Agreement shall survive my execution of this General Release. 
 12. I
represent that I am not aware of any claim by me other than the claims that are released by this General Release. I acknowledge that I may hereafter discover claims or facts in addition to or different than those which I now know or believe to exist
with respect to the subject matter of the release set forth in paragraph 2 above and which, if known or suspected at the time of entering into this General Release, may have materially affected this General Release and my decision to enter into it.

 13. Notwithstanding anything in this General Release to the contrary, this General Release shall not relinquish, diminish,
or in any way affect any rights or claims arising out of any breach by the Company or by any Released Party of the Agreement after the date hereof. 

14. Whenever possible, each provision of this General Release shall be interpreted in, such manner as to be effective and valid
under applicable law, but if any provision of this General Release is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability shall not affect
any other provision or any other jurisdiction, but this General Release shall be reformed, construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provision had never been contained herein. 

  
 A-3 

 BY SIGNING THIS GENERAL RELEASE, I REPRESENT AND AGREE THAT: 

 

	 	1.	I HAVE READ IT CAREFULLY; 

  

	 	2.	I UNDERSTAND ALL OF ITS TERMS AND KNOW THAT I AM GIVING UP IMPORTANT RIGHTS, INCLUDING BUT NOT LIMITED TO, RIGHTS UNDER THE AGE DISCRIMINATION IN EMPLOYMENT ACT OF 1967, AS AMENDED, TITLE VII OF THE CIVIL RIGHTS ACT
OF 1964, AS AMENDED; THE EQUAL PAY ACT OF 1963, THE AMERICANS WITH DISABILITIES ACT OF 1990; AND THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED; 

 

	 	3.	I VOLUNTARILY CONSENT TO EVERYTHING IN IT; 

  

	 	4.	I HAVE BEEN ADVISED TO CONSULT WITH AN ATTORNEY BEFORE EXECUTING IT AND I HAVE DONE SO OR, AFTER CAREFUL READING AND CONSIDERATION, I HAVE CHOSEN NOT TO DO SO OF MY OWN VOLITION; 

 

	 	5.	I HAVE HAD AT LEAST [21][45] DAYS FROM THE DATE OF MY RECEIPT OF THIS RELEASE TO CONSIDER IT, AND THE CHANGES MADE SINCE MY RECEIPT OF THIS RELEASE ARE NOT MATERIAL OR WERE MADE AT MY REQUEST AND WILL NOT RESTART THE
REQUIRED [21][45]-DAY PERIOD; 

  

	 	6.	I UNDERSTAND THAT I HAVE SEVEN (7) DAYS AFTER THE EXECUTION OF THIS RELEASE TO REVOKE IT AND THAT THIS RELEASE SHALL NOT BECOME EFFECTIVE OR ENFORCEABLE UNTIL THE REVOCATION PERIOD HAS EXPIRED;

  

	 	7.	I HAVE SIGNED THIS GENERAL RELEASE KNOWINGLY AND VOLUNTARILY AND WITH THE ADVICE OF ANY COUNSEL RETAINED TO ADVISE ME WITH RESPECT TO IT; AND 

 

	 	8.	I AGREE THAT THE PROVISIONS OF THIS GENERAL RELEASE MAY NOT BE AMENDED, WAIVED, CHANGED OR MODIFIED EXCEPT BY AN INSTRUMENT IN WRITING SIGNED BY AN AUTHORIZED REPRESENTATIVE OF THE COMPANY AND BY ME.

  

									
	SIGNED:	 	  
	 		 	DATED:	 	
	NAME:	 	  
	 		 		 	

  
 A-4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00228-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00228-of-00352.parquet"}]]