Document:

EX-10.11

 Exhibit 10.11 

 
  

TERMINATION AGREEMENT 
  

 
 between

 Guy Wouters 
 as “Mr. Wouters” 
 and 

Taminco BVBA 
 as “Taminco” 

 THIS TERMINATION AGREEMENT IS MADE BY AND BETWEEN, 

On the one hand, 
  

	 	1.	Mr. Guy Wouters, residing at Sleutelbloemlaan 15, 1933 Sterrebeek (Zaventem); 

Hereinafter referred to as “Mr. Wouters”; 
 And, 
 On the other hand, 

 

	 	2.	Taminco BVBA, a private limited liability company, duly incorporated and validly existing under the laws of Belgium, having its registered office at Pantserschipstraat
207, 9000 Gent, registered with the Register of Legal Entities of Ghent under number 0859.910.443; hereby duly represented by Laurent Lenoir and Kurt Decat in their capacity of Manager of the company; 

Hereinafter referred to as “Taminco”; 
 Mr. Wouters and Taminco are hereinafter jointly referred to as “Parties” or, individually, as “Party”. 
 WHEREAS: 
  

	 	A.	On 31 December 2009, Parties have entered into a management agreement (the “Agreement”), a copy of which is attached hereto as Annex 1.

  

	 	B.	In light of the appointment of Mr. Wouters as manager of Taminco and member of the board of managers, Parties have agreed to terminate the Agreement in mutual
consent as from 1 October 2012. 

  

	 	C.	In the framework thereof, Parties now wish to confirm in writing their intention to terminate the Agreement by mutual consent. 

NOW THEREFORE, THE PARTIES HERETO AGREE AS FOLLOWS: 
  

	1.	The Parties hereby confirm their intention to terminate the Agreement by mutual consent with effect as of 1 October 2012 (hereinafter the “Effective
Date”). 

  

	2.	Parties confirm that the outstanding fees due to Mr. Wouters by Taminco for the services mentioned and specified in the Agreement for the period up until the
Effective Date and outstanding fees due to Taminco by Mr. Wouters have been paid in accordance with the Agreement. 

  

	3.	As a result, Parties expressly confirm their agreement that, irrespective of what has been agreed in the Agreement or what is provided by law, no further termination
notice period applies and that no compensation or indemnity of any kind was or will be due by either Party in the framework of the present termination of the Agreement. 

  
 2 

	4.	This termination agreement and all disputes arising here from or related hereto, shall be governed by and construed exclusively in accordance with the provisions
included thereto in the Agreement. 

 *        * 

* 
 IN WITNESS WHEREOF the
Parties have signed this agreement on 25 March 2013 in two original copies, each Party acknowledges having received one duly signed original. 
  

					
	 For and on behalf of

Taminco
	 		 	Mr. Wouters
			
	 /s/ Laurent Lenoir
	 		 	 /s/ Mr. Wouters

	Name: Laurent Lenoir	 		 	
	Capacity: Manager	 		 	
			
	 /s/ Kurt Decat
	 		 	 
	Name: Kurt Decat	 		 	
	Capacity: Manager	 		 	

 Annex: 
  

	 	1.	Management Agreement dd. 31 December 2009 

  
 3EX-10.12

 Exhibit 10.12 
 Execution copy 
 SETTLEMENT 

 

			
	BETWEEN:	  	 Taminco bvba, with its corporate office at 9000 Ghent, Pantserschipstraat;

Represented by Kurt Decat (director) and Laurent Lenoir (director);
 Hereinafter referred as the “Company”;
 On one side,

		
	AND:	  	 Sabine Ketsman, residing at Kampenstraat 52 - 9552 Borsbeke;
 Hereinafter referred to as “Mrs. Ketsman”;
 On the other
side,

 hereinafter referred to collectively as the “Parties” 

WHEREAS: 
 The Parties
signed an employment contract for an indefinite period effective September 1, 2000 (hereinafter referred to “the Employment Contract”); 
 On the initiative of the Company the Parties now wish to terminate the Employment Contract by mutual agreement; 
 The Parties have agreed and signed this settlement with which they wish to put an end to all the disputes that arose or still might rise between them in the future as a result of the existence and
termination of the Employment Contract. 
 THE PARTIES HEREBY AGREE AND ACCEPT THE FOLLOWING CONDITIONS: 

 

	1	Termination 

 The Parties mutually agree
to terminate the Employment Contract effective March 31, 2013 at midnight. 
 Mrs. Ketsman will no longer be a part of
the personnel as of April 1, 2013 without the need for observing a notice period or the need for any substitute severance payment. 
  

	2	Vacation bonus upon departure and prorated end-of-year bonus 

 The Company will pay Mrs. Ketsman a vacation bonus upon departure in accordance with the legal regulations in the matter, as well as the end-of-year bonus pro rata temporis. The Company will
also provide her with the social-security documents mandated by law. 

  
  

1 

 Execution copy 

 

	3	Contractual compensation 

 In execution of
the Employment Contract the Company undertakes to pay the following compensation: 
  

	 	3.1	the monthly salary until March 31, 2013; 

  

	 	3.2	a bonus according to the bonus plan of the Company based on the consolidated 2013 results of the Company for the period from January 1, 2013
until March 31, 2013. 

  

	4	Withholdings 

 The compensation mentioned
in Article 2 and Article 3 above is a gross compensation on which the Company, if required, will withhold the social security contributions and tax deductions. 
 The compensation mentioned in this Agreement will be paid at latest within one month after the signature date of this Agreement, with the exception of the bonus mentioned in Article 3.2, which will be
paid in March 2014.  
  

	5	Amounts 

 Mrs. Ketsman
acknowledges and accepts that the amounts paid to her in execution of this Agreement include all sums of any kind to which she might be entitled as a result of the implementation and/or termination of the Employment Contract or the contractual
relationship that existed between the Parties. 
  

	6	Confidentiality 

 The Parties undertake to
respect the confidential nature of this Agreement and not to disclose therefore either the contents or the existence of this Agreement to third parties unless required to do so by a government agency. 

 

	7	Waivers 

 With the exception of the
provisions of this Agreement, the Parties waive irrevocably the right to institute or continue legal proceedings against each other, whatever the reason and whatever the grounds, which have their origin in the execution, the implementation or
termination of the Employment Contract or in their earlier contractual relationship. 
 In particular, Mrs. Ketsman explicitly
forgoes all claims of whatever nature or for whatever reason and waives all rights that she might be able to derive from the existence, the implementation or termination of her Employment Contract or some other contract with the Company or any other
enterprise or unit that is part of the same group as the Company. 

  
  

2 

 Execution copy 
 The Parties waive the right to invoke, de jure or in fact, any error or negligence concerning the existence or the extent of their rights. 

 

	8	Replacement 

 This Agreement replaces all
earlier agreements, be they oral or written, which might have existed between the Parties. 
 Drawn up in good faith and in duplicate, each of
the Parties acknowledges having received an executed copy, duly initialed and signed by both Parties. 
 In Ghent, on March 25,
2013 
  

					
	For the company	 		 	Mrs. Ketsman
			
	(read and approved)	 		 	(read and approved)
			
	 /s/ Kurt Decat
	 		 	 /s/ Sabine Ketsman

	Kurt Decat, Director	 		 	Sabine Ketsman
			
	 /s/ Laurent Lenoir
	 		 	
	Laurent Lenoir, Director	 		 	

  
  

3EX-10.81

 Exhibit 10.81 
 LOAN AGREEMENT 
 (Acquisition and Development Loan and Revolving
Construction Line of Credit) 
 THIS LOAN AGREEMENT made effective as of the 8th day of May, 2013 by and between COMSTOCK YORKSHIRE, L.C., a
Virginia limited liability company (the “Borrower”), and CARDINAL BANK, a Virginia state chartered bank (“Lender”). 
 WHEREAS, 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”); and 
 WHEREAS, 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 Five Million Two Hundred Thousand and no/100 Dollars ($5,200,000.00) on a non-revolving basis (the “A&D Loan”) to finance a portion of the
Borrower’s cost to acquire the Land, consolidate and re-subdivide the Land into a parcel for the construction of single family attached residences (the “Townhouse Parcel”) and into nineteen (19) single family detached lots (the
“Single Family Lots”), convert the Townhouse Parcel into a one hundred ten (110) unit condominium regime (the “Condominium Regime”), and develop the infrastructure for the Townhouse Parcel and the Condominium Regime and
(ii) a construction line of credit in the maximum principal amount of Two Million Five Hundred Thousand and no/100 Dollars ($2,500,000) 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 one hundred ten (110) single family attached residential condominium units on the Townhouse Parcel subject to the Condominium
Regime (the “Townhouse Condominiums”) and certain other improvements upon the Land (the “Construction Line”), as amended, modified, supplemented and increased from time to time; and 

WHEREAS, simultaneously with the execution and delivery hereof, Borrower has executed that certain Credit Line Deed of Trust Note dated
of even date herewith in the principal amount of $7,700,000.00 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 the Land into the Townhouse Parcel and
the Single Family Lots, create the Condominium Regime and develop the infrastructure for the Townhouse Parcel and the Condominium as more particularly set forth in the recitals to this Loan Agreement. 

A&D Loan Funding Termination Date – The Initial Funding Termination Date. The A&D Loan Funding Termination Date shall
be automatically extended to May 8, 2015, 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, and (iii) Borrower shall have sold at least twenty-four (24) Units and closed on at least twelve (12) Units within the Project as of
the Initial Funding Termination Date. If the Initial Funding Termination Date is automatically extended as set forth above, the Lender’s obligation to make any advances out of the A&D Loan shall terminate on May 8, 2015. 

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

Building – Each separate building within the Condominium Regime each building to be limited to no more than eight
(8) Units. 
 Commitment – The commitment letter dated April 22, 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
Construction Line Funding Termination Date shall independently apply to each Construction Loan that the Lender has formally approved and committed to fund prior to the Initial Funding Termination Date (if the Construction Line Funding Termination
Date is not automatically extended as set forth in the next sentence) and May 8, 2015 (if the Construction Line Funding Termination Date is automatically extended as set forth in the next sentence). The Construction Line Funding Termination
Date shall be automatically extended beyond the Initial Funding Termination Date to the date(s) more particularly set forth below, 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, 

  

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and (iii) Borrower shall have sold at least twenty-four (24) Units and closed on at least twelve (12) Units within the Project as of the Initial Funding Termination Date. The
Lender shall not be obligated to make advances out of the Construction Line for a Construction Loan for any Unit for which the Lender has not issued its formal Construction Loan commitment prior to the Initial Funding Termination Date, if the
Initial Funding Termination Date is not extended hereunder or prior to May 8, 2015, if the Initial Funding Termination Date is extended hereunder. 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. 

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. 

  

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 Event(s) of Default – Any of the happenings, events, circumstances or
occurrences described in Article VI of this Loan Agreement. 
 Guarantors – Christopher Clemente, Greg 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. 

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. 

  

- 4 - 

 Initial Funding Termination Date – May 8, 2014. 

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 $2,950,000 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, the creation of the Condominium
Regime for the Townhouse Parcel, the site development of the Land, and the construction of the Improvements and the Units are collectively hereinafter referred to as the Project. 

Public Authorities – Prince William County, Virginia and any other public, municipal or quasi-municipal entity having
jurisdiction over the Land and the Improvements to be constructed thereon. 

  

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 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. 
 Unit – An individual Townhouse Condominium unit 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 the individual Townhouse Condominium unit. 
 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 Five Million Two Hundred Thousand and no/100 Dollars ($5,200,000.00) 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 Two Million Five Hundred Thousand and no/100 Dollars ($2,500,000.00) 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: 

  

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 (a) Land Acquisition Advance: $785,000. 

(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 twelve (12) Single Family Lots for which the Lender has an appraisal as of the date of this Loan Agreement and the lesser of: (i) seventy-five percent (75%) of the
“as-developed” appraised value of the finished Townhouse Condominiums on a gross value basis, or (ii) sixty-five percent (65%) of the “as-developed” appraised value of the finished Townhouse Condominiums on a discounted
cash flow basis. In no event shall the Lender advance more than $5,200,000 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 $330,000 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) sixty-seven percent (67%) 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
$2,500,000. 
 (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: 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, the Deed of Trust and the other Loan Documents shall have been properly executed and delivered to Lender, the Deed of Trust (and any such supplements or amendments) shall be executed,
acknowledged and recorded in the appropriate land records, and payment shall have been made for all recording costs in connection with the Deed of Trust (and any such supplements or amendments) and any other recorded Loan Documents and for any
transfer or recordation taxes due under any federal, state or county law. 
 (b) Lender shall have received a paid policy of
title insurance (ALTA Standard Form “B” Loan Policy – Current Edition) or a valid and enforceable commitment to issue the same, together with such reinsurance agreements and direct access agreements as may be required by Lender, from
a company or companies satisfactory to Lender in the amount of the Loans and which 

  

- 7 - 

 
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. 

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

(f) 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. 
 (g) 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. 
 (h) Lender shall have received and approved an appraisal of the
Mortgaged Property that complies with the applicable requirements of the Commitment. 

  

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 (i) 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. 

(j) 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. 
 (k) 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. 
 (l) Lender shall have received a satisfactory Phase I environmental site assessment report on the Land. 

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

(n) 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. 
 (o) 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 Single Family Lots and the Townhouse Parcel,
creation of the Condominium Regime, and the construction of the Units shall be maintained and flow. 
 2.4 Conditions
Precedent to Development Advances. Lender shall not be obligated to make any advances of A&D Loan proceeds hereunder with respect to the development of the Townhouse Parcel and the creation of the Condominium Regime after the first advance
of the A&D Loan proceeds, 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 governmental authorities having or claiming jurisdiction to the effect that all
grading, building, construction and other permits and licenses necessary or required in connection with the development of the Single Family Lots and the Townhouse Parcel and the creation of the Condominium Regime 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 

  

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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 governmental or regulatory authorities having or claiming jurisdiction has been duly inspected and approved by
such authorities and by any rating or inspection organization, bureau, association or office having or claiming jurisdiction. 

(e) Lender shall 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. 
 (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 Townhouse Parcel 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. 

  

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 (j) Lender shall have received copies of the recorded subdivision plat of the Mortgaged
Property creating the Townhouse Parcel and a minimum of twelve (12) Single Family 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 governmental authorities having or claiming jurisdiction to the effect that all
grading, building, construction and other permits and licenses necessary or required in connection with the construction of the Improvements have been validly issued 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. 
 (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 governmental or regulatory authorities having or claiming jurisdiction has been duly inspected and approved by
such authorities and by any rating or inspection organization, bureau, association or office having or claiming jurisdiction. 

(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 

  

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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. 

(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 

  

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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 governmental or
regulatory authorities having or claiming jurisdiction has been duly inspected and approved by such authorities and by any rating or inspection organization, bureau, association or office having or claiming jurisdiction; 

(c) To the extent that any such certificate is a condition to the lawful use and occupancy of the subject Improvements, Lender has
received evidence satisfactory to it that the requisite certificate of use and occupancy for permanent occupancy of such Improvements has been validly issued; however, such a certificate shall be not required for any model houses; 

(d) 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. 

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 

  

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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. 

2.12 Speculative Units and Construction Limitations. The Borrower may have not more than eight (8) Speculative Units in the
first two (2) Buildings for which construction has commenced within the Project. To commence construction of any Building after the first two (2) Buildings, the Borrower shall not have more than the lesser of: (i) five
(5) Speculative Units, and (ii) fifty percent (50%) of the total Units then under construction. 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 eighteen (18) Units or three (3) 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 $26,000 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. 

  

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 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 Nine Hundred Fifty Thousand Dollars ($2,950,000). The obligation of the Lender
to issue any Letters of Credit under this Letter of Credit Facility shall expire on that date that is 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 May 8, 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 two percent (2%) per annum, based on the face amount of the Letter of Credit on each date. The Borrower shall immediately

  

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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 a Letter of Credit shall bear interest
at a per annum rate equal to the non-default rate of interest then being charged Borrower under the Note plus three percent (3%) per annum (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. It is anticipated that the initial issuance of the Letters of Credit will provide bond for two parcels of land adjoining the Land retained by the Seller for development and construction of a retail property (the
“Retail Parcels”). Borrower shall use its best efforts to obtain a subdivision amendment to remove the Retail Parcels from the subdivision plans for the Project to insure that the Letters of Credit are not posted as bonds for the
Seller’s obligations to the Public Authorities with respect to the Retail Parcels. 
 (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. 

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 governmental authorities having or
claiming jurisdiction and by the beneficiaries of any such restrictive covenants, respectively. 
 3.2 Permits. No work
associated with the development of the Townhouse Parcel, the creation of the Condominium Regime or the construction of the Improvements will be commenced 

  

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by Borrower unless and until all grading, building, construction and other permits necessary or required in connection with the commencement of the construction of the Improvements have been
validly issued and all fees and bonds (whether posted by Borrower or its seller) required in connection therewith have been paid or posted, as the circumstances may require. 
 3.3 Utilities. All utility services necessary for the construction of the Improvements and the operation thereof for their intended purpose are available at the boundaries of the Land, or there are
easements in place which will allow Borrower to extend utility services to the boundaries of the Land, including, without limitation, telephone service, water supply, storm and sanitary sewer facilities, and natural gas or electric facilities.

 3.4 Access – Roads. All roads and other access necessary for the construction and full utilization of the
Improvements for their intended purposes have either been completed or the necessary rights of way therefor have either been acquired by the appropriate governmental authorities or have been dedicated (or will be dedicated) to public use and has
been or will be accepted by such governmental 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 governmental authorities to assure the complete construction
and installation thereof by a time no later than the Completion Date. 
 3.5 Other Liens. Except as otherwise provided
for in the 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. 
 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 governmental authority having jurisdiction have been satisfied, and no violation of any law or regulation exists with respect thereto. 
 ARTICLE IV 
 AFFIRMATIVE COVENANTS 

4.0 Affirmative Covenants. Borrower hereby affirmatively covenants and agrees as follows: 

  

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 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 governmental authorities having or claiming jurisdiction and by the beneficiary of any such
restrictive covenant, and unless and until all building, construction and other permits necessary or required in connection with the commencement of the construction of the Improvements have been validly issued and all fees and bonds (whether posted
by Borrower or its seller) required in connection therewith have been paid or posted, as the circumstances may require. 
 4.3
Completion. Construction of a Unit shall be completed by Borrower on or before the Completion Date, free and clear of all liens and claims of liens for materials supplied and for services or labor performed in connection with the construction
of the Unit. 
 4.4 Compliance with Laws – Encroachments. The Improvements shall be constructed by Borrower in
strict accordance with all applicable (whether present or future) laws, ordinances, rules, regulations, requirements and orders of any governmental or regulatory authority having or claiming jurisdiction. The Improvements shall be constructed
entirely on the Land and will not encroach upon any easement or right-of-way, or upon the land of others. Construction of the Improvements shall be wholly within all applicable building restriction lines and set-backs, however established, and shall
be in strict accordance with all applicable use or other restrictions and the provisions of any prior agreements, declarations, covenants and all applicable zoning and subdivision ordinances and regulations. 

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

  

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

  

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 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. 

(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. 
 (e) Delivery
of Endorsement – Borrower shall deliver the original Endorsement to the Lender on or before June 8, 2013. 

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

  

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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. 
 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. 

  

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

  

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 5.2 Impairment of Security. Borrower shall take no action which will in any manner
impair the value of the Mortgaged Property or the validity, priority or security of the Deed of Trust. 
 5.3 Conditional
Sales. Borrower will not incorporate in the Improvements any property acquired under a conditional sales contract or lease, or as to which the vendor retains title or a security interest, without the prior written consent of Lender. 

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

  

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 6.5 Progress of Construction. Except for delays unavoidably occasioned by strikes,
lock-outs, war or civil disturbance, governmental actions (e.g., moratorium), natural disaster, acts of God, or extreme weather conditions, if construction of the Improvements is not carried on in good faith and with reasonable dispatch or if
Borrower abandons the work or discontinues work for a period of more than thirty (30) consecutive days. 
 6.6 Failure
to Complete. Except for delays unavoidably occasioned by strikes, lock-outs, war or civil disturbance, natural disaster, acts of God, or extreme weather conditions, if Borrower fails to complete the construction of a Unit on or before the
Completion Date. 
 6.7 Conditions Precedent to Any Advance. Except for delays unavoidably occasioned by strikes,
lock-outs, war or civil disturbance, natural disaster, acts of God, or extreme weather conditions, if Borrower is unable to satisfy any condition precedent to its right to receive an advance of 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: 

  

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 (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. 

  

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 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. 

  

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 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 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. 

  

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 8.9 Counterparts. This Loan Agreement may be executed in any number of counterparts,
each of which shall be considered an original for all purposes; provided, however, that all such counterparts shall together constitute one and the same instrument. 
 8.10 Notices. All notices, demands, requests and other communications required pursuant to the provisions of this Loan Agreement shall be in writing and shall be deemed to have been properly given
or served for all purposes when presented personally or sent by hand delivery, Federal Express or other similar overnight service or 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. 

  

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 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. 
 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.

 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 YORKSHIRE, 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
	 	

  

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 “EXHIBIT A” 
 Legal Description 
 All those certain lots, pieces or parcels of land situate,
lying and being in Prince William County, Virginia, being more particularly described as follows: 
 Property 1:

 Parcel 3 containing 9.3831 acres and Parcel 4 containing 1.7904 acres as shown on plat entitled “Plat Showing
Consolidation, Subdivision and Dedication of Various Easements of the Property of YORKSHIRE PROPERTY OFFICE BLDG.” prepared by Professional Design Group, Inc., dated November, 2008 and recorded as Instrument No. 201103180022986, said plat
attached and made a part of Deed of Consolidation, Subdivision, Dedication, Vacation and Easement recorded as Instrument No. 201103180022985, among the land records of Prince William County, Virginia. 

Property 2: 
 Lot 219, Block D, Yorkshire Acres, Section 1, as the same appears duly dedicated, platted and recorded in Deed Book 139 at Page 333, among the land records of Prince William County, Virginia.

 Property 3: 
 Lots 216, 217 and 218, Block D, Yorkshire Acres, Section 1, as the same appears duly dedicated, platted and recorded in Deed Book 139 at Page 333, among the land records of Prince William County,
Virginia. 

  

- 30 -

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