Document:

Exhibit 10.1

 

SECOND AMENDMENT TO THE INVESTMENT AGREEMENT

EXECUTED ON 24 OCTOBER 2013

 

This Second Amendment to the Investment Agreement (hereinafter referred to as this “Second Amendment”) is made as of 08 August, 2014, by and among (the “Parties”):

 

COURIER BRASIL HOLDINGS LTDA., a company duly organized and validly existing under the laws of Brazil, with head office in the city of São Paulo, State of São Paulo, at Rua José Bonifácio, 278, Room 417, Centro, Zip Code 01003-000, duly enrolled with the CNPJ/MF under No. 18.528.386/0001-74 (hereinafter referred to as “Investor” or “Courier”);

 

WALTER LUIZ ANTICAGLIA FILHO, Brazilian citizen, married, bearer of ID card No.16667830, enrolled with the Individual Taxpayers Registry of the Ministry of Finance (“CPF/MF”) under No. 063.717.038-54, resident and domiciled at Rua Professor Pedreira de Freitas, 820, apt. 31, Tatuape, City and State of São Paulo, Zip Code 03312-050 (hereinafter referred to simply as “Walter” or “Founding Shareholder”);

 

JULIANA COELHO SIQUEIRA ANTICAGLIA, Brazilian citizen, bearer of ID card No. 6093996, enrolled with the CPF/MF under No. 030.979.756-08, resident and domiciled at Rua Professor Pedreira de Freitas, 820, apt. 31, Tatuape, City and State of São Paulo, Zip Code 03312-050 (hereinafter referred to simply as “Juliana” and together with Walter, “Shareholders”); and

 

DIGITAL PAGE GRAFICA E EDITORA S.A., a corporation duly organized and validly existing under the laws of Brazil, with head office in the city of Guarulhos, State of São Paulo, at Rua Urbano Santos, 901, Sítio dos Britos, Zip Code 07182-320, enrolled with the CNPJ/MF under No. 10.752.175/0001-09 hereby represented by its undersigned legal representative (hereinafter referred to as “Digital Page” or the “Company”);

 

WHEREAS:

 

A) On October 24, 2013, the Parties executed the Investment Agreement (“Investment Agreement”), in which Parties agreed on Courier investment structure and conditions into the Company, with an originally expected closing date in January 2014. Since the company was in need of funds to honor debts, upgrade equipments, and working capital prior to closing, Courier agreed and performed a loan (“Loan”) of four million Reais (R$ 4,000,000.00) to the Company as per Loan Agreement of October 24, 2013, (“Loan Agreement”), followed by an additional loan of six million, one hundred and thirty six thousand, nine hundred and thirteen Reais (R$6,136,913.00) (“Additional Loan”) to the Company as per Additional Loan Agreement of December 20, 2013 (“Additional Loan Agreement”).

 

B) The closing did not occur on January 2014 due to discrepancies and inaccuracies on the Company’s accounting and financial statements information. The Parties then agreed to work in determining the Company’s accurate financial conditions, use a determined month balance sheet audited by Delloite Touche as a reference, and discuss the investment structure.

 

C) The Parties has agreed to a new investment structure in which Courier shall invest in shares representing 60% of the Company’s capital stock, (i) through the subscription of one million, one hundred and fifty thousand (1,150,000) newly issued shares with no par value, in the total amount of eighteen million seven hundred fifty thousand Reais (R$18,750,000.00) which shall be partially paid-in with: (a) the R$ 4,000,000.00 (four  million Reais) of credits arising from the Loan amount; and (b) any amount of credits 

 

 

arising from Additional Loan amounts; through conversion into capital and funds from Courier at the Closing Date” (“Subscribed Shares);  and (ii) through the purchase of eighty thousand (80.000) common shares with no par value from Founding Shareholder, in the total amount of one million, two hundred and fifty thousand Reais (R$ 1,250,000.00), in a total amount of twenty million Reais (R$ 20,000,000.00);

 

D) The Parties further agreed in the following changes: (i) maintaining the mandatory dividends at 10% until December 31, 2018 and increasing it to 20% from January 01, 2019; (ii) re determining the bonuses of the Founding Shareholder as set forth in the First Amendment to the Shareholders Agreement; (iii) determine one additional bonus in the amount of two hundred and fifty thousand Reais (R$ 250,000.00) to the Founding Shareholder in case an eight million Reais EBITIDA amount it reached in 2014 (iv) as established in the First Amendment to the Shareholders Agreement, maintaining the Call Option (except for a termination without Cause and defining the reasons for Cause), providing equal treatment for both Founding Shareholder and Courier in respect to Tag Along rights, adding Drag Along rights for the Investor and deleting the Put Option to the Investor; (v) establish a Lock-up period up to 31 December 2018 in which the Parties cannot transfer their shares; (vi) provide Walter a gross total annual payment as pro-labore for acting as an officer of the Company in the total amount of R$ 400,000, which includes any and all taxes (including personal income tax), social security (INSS) and related and other ancillary fees or payments and any so called “13th month” payment, whether it is due by the Company or the Founding Shareholder; (vii) The Founding Shareholder while being an Officer of the Company and starting from January 01, 2019 will also be eligible for an additional annual gain up to an amount comparable to, and earned in accordance with similar quantitative earnings targets by, Courier plant managers pursuant to the Courier Corporation Executive Compensation Plan; and (viii)  change the fiscal year for the Company to run from 01 September to August 31.

 

NOW, THEREFORE, the Parties hereto have agreed to amend once again the Investment Agreement in order to reflect the following terms and conditions:

 

1. Paragraph 5 of the Recitals — Whereas, shall have the following new wording:

 

“Whereas, subject to the terms and under the conditions hereof, the Investor wishes to invest in shares of the capital stock of the Company representing sixty percent (60%) of the Company’s capital stock, through the subscription of newly issued shares with no par value, in the total amount of eighteen million seven hundred fifty thousand Reais (R$18,750,000.00), and through the purchase of common shares with no par value from Founding Shareholder, in the total amount of one million, two hundred and fifty thousand Reais (R$ 1,250,000.00);”

 

2. Article II - Investment, sub-item 2.1. Purpose shall be read as follows:

 

“2.1. Purpose. The purpose of this Investment Agreement is to regulate and set forth the terms and conditions applicable to (i) the subscription, by the Investor, of shares of the capital stock of the Company, through the subscription of one million one hundred and fifty thousand (1,150,000) newly issued registered common shares with no par value, in the total amount of eighteen million seven hundred fifty thousand Reais (R$18,750,000.00), which shall be partially paid-in with: (a) the R$ 4,000,000.00 (four million Reais) of credits arising from the Loan amount; and (b) any amount of credits arising from Additional Loan amounts; through conversion into capital at the Closing Date (“Subscribed Shares”); and, after the Subscribed Shares; (ii) the purchase, by the Investor, of shares from the Founding Shareholder, including the quotas/shares currently held by Juliana of the Company’s capital stock, through the purchase of eighty thousand (80,000) shares in the total amount of one million two hundred and fifty thousand Reais (R$1.250,000.00) (“Shares Purchased”), being Subscribed Share and Shares Purchased, together, (“Investment Amount”).”

 

 

3. Article II - Investment, sub-item 2.2.9. Corporate Structure Post Closing shall be read as follows:

 

“2.2.9.            Corporate Structure post Closing. Immediately following the subscription of the Subscribed Shares by the Investor, the total capital stock of the Company shall be divided into two million and fifty thousand (2,050,000) shares, distributed among the Founding Shareholder and the Investor as follows:

 

	
Shareholders
    	
 
    	
Shares
    	
 
    	
%
    	
 
    
	
Investor
    	
 
    	
1,230,000
    	
 
    	
60
    	
%
    
	
Founding Shareholder
    	
 
    	
820,000
    	
 
    	
40
    	
%
    
	
Total
    	
 
    	
2,050,000
    	
 
    	
100
    	
%
    

 

4. Article II - Investment, sub-item 2.3. Use of Proceeds shall be read as follows:

 

“2.3.                     Use of Proceeds. The Company covenants to, and the Investor and the Founding Shareholder covenant to cause the Company to, use all of the proceeds arising from the Loan and from the Subscription Amount for payment of indebtedness of the Company, acquisition of new equipment new investments, provision of working capital of the Company, and Other activities and investments as agreed between the Parties in the course of business, as agreed in Exhibit 2.3 of the Investment Agreement at closing.”

 

4.1. Items (i), (ii) and (iii) of Article II - Investment, sub-item 2.3. Use of Proceeds are, therefore, being excluded from the Investment Agreement.

 

5. Article II - Investment, sub-item 2.4.4. shall be excluded from the Investment Agreement.

 

6.  Exhibit E - New By-Laws -  CHAPTER IX — FISCAL YEAR, FINANCIAL STATEMENTS AND PROFITS - Section 32 shall have the following wording:

 

“Section 32 - The fiscal year shall commence on September 1 and end on August 31. At the end of each fiscal year, the financial statements set forth by law shall be prepared.”

 

7.  The Parties agree, that the following new conditions to Closing shall be added to Section 2.4.2:

 

(i) The amendment to the Shareholders Agreement is executed.

 

(ii) The Company balance sheet as of August 31 2014 is audited by Deloitte Touche (“Audited Balance Sheet”).

 

(iii) The Founding Shareholder representing and warranting in addition to previously agreed representations and warranties that the Audited Balance Sheet is true and correct in all material aspects and there were no misuse of any tax credits.

 

(iv) The Founding Shareholder and Courier entering into an agreement detailing the pro-labore payment to Walter for acting as an Officer of the Company.

 

(v) Founding Shareholder acceptance of the use of proceeds acceptable to the Investor.

 

(vi) Repayment of the loan from the Founding Shareholder to the Company in the approximate amount of up to R$1 million, subject to confirmation of the amount by Investor, and delivery of a release from the Founding Shareholder confirming that no further loans are owed to him by the Company.

 

7.1. Article II — subitem 2.4.4 is hereby excluded.

 

 

8. The terms initiated herein with capital letters, unless otherwise defined in this Second Amendment to the Investment Agreement, shall have the same meanings which were attributed in the Investment Agreement.

 

9. All provisions of the Investment Agreement not expressly amended or modified herein shall remain in full force and effect in accordance with the terms of the Investment Agreement.

 

IN WITNESS WHEREOF, the Parties have caused this Second Amendment to the Investment Agreement to be duly executed in the presence of the undersigned witnesses.

 

São Paulo, August 08, 2014.

 

 

	
 
    	
/s/ Taryn   Nakayama
    	
 
    
	
 
    	
COURIER BRASIL HOLDINGS LTDA.
    	
 
    
	
By: Taryn Nakayama
    
	
Title: Director
    
	
 
    
	
 
    
	
 
    	
/s/ Walter Luiz A. Filho
    	
 
    
	
DIGITAL PAGE GRAFICA E EDITORA S.A.
    	
 
    
	
By: 
    
	
Title: 
    
	
 
    
	
 
    
	
 
    	
/s/ Walter Luiz A. Filho
    	
 
    
	
 
    	
WALTER LUIZ ANTICAGLIA FILHO
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
/s/   Juliana Anticaglia
    	
 
    
	
JULIANA COELHO SIQUEIRA ANTICAGLIA
    
	
 
    	
 
    
	
Witnesses:
    	
 
    
	
/s/ Camila   Ricardo Moraes
    	
 
    
	
Name:
    	
Camila Ricardo   Moraes
    	
 
    
	
ID:
    	
32.175.312-4   SSP/SP
    	
 
    
	
CPF/MF:
    	
 
    
	
/s/ Christiane   Mello do Espirito Santo
    	
 
    
	
Name:
    	
Christiane Mello   do Espirito Santo
    	
 
    
	
ID:
    	
25.779.167-X   SSP/SP
    	
 
    
	
CPF/MF:EX-10.86

 Exhibit 10.86 

SEPARATION AGREEMENT 

This Separation Agreement (this “Agreement”) is made effective the 24th day of
June, 2014 (the “Effective Date”), between Comstock Holding Companies, Inc., a Delaware corporation (“Company”), and Gregory V. Benson (“Employee”). 

Recitals 
 A. Company is
in the business of developing and selling residential real estate and provides services related thereto in the Washington D.C. metropolitan statistical area. 

B. Employee was, until recently, President and Chief Operating Officer of Company and is presently a member of the Board of Directors of
Company. 
 C. Employee and its affiliate owns shares of Company’s Class A Common Stock, par value $0.01 per share (the
“Class A Common Stock”), and Company’s Class B Common Stock, par value, $0.01 per share (the “Class B Common Stock” and together with the Class A Common Stock, the “Common Stock”). 

D. The parties desire to enter into this Agreement for the reasons stated herein. 

E. In consideration of the mutual promises contained in this Agreement, and for other good and valuable consideration, the receipt and
sufficiency of which are acknowledged, the undersigned, intending to be legally bound, state and agree as provided below. 
 Agreements

 1. Termination Date. The employment of Employee by Company and all rights and obligations of Employee and Company with respect
to such employment, were duly and effectively terminated as of May 5, 2014 (the “Termination Date”). Employee acknowledges and agrees that he has been paid all wages and accrued benefits to which he is entitled through the Termination
Date. Other than the payments set forth in this Agreement, the parties agree that Company owes no additional amounts to Employee for wages, back pay, severance pay, bonuses, damages, accrued vacation, benefits, insurance, sick leave, other leave, or
any other reason. This Agreement is intended to and does settle and resolve all claims of any nature that Employee might have against Company and the Company against Employee arising out of their employment relationship or the termination of
employment. 
 2. Severance Allowance. The parties desire an amicable and professional separation and in consideration of
Employee’s release below and to facilitate an amicable separation, as soon as practicable after execution of this Agreement, as severance allowance and not as salary, Company will pay Employee a total of $597,000, payable in 36 semi-monthly
installments of $16,583 (“Severance Allowance”). This Severance Allowance will commence on May 1, 2014 and be payable in arrears on a semi-monthly basis until paid (the “Severance Allowance Period”). The initial severance
payment shall be made on or before July 1, 2014 and shall cover the two month period, May 1, 2014 through June 30, 2014 (a total of four semi-monthly payments totaling $66,332). Subsequent severance payments shall be made semi-monthly
in arrears with the first such payment to be made on July 15, 2014. It is the intention of the parties that these payment be “synched” with the Company’s regular payroll program and be direct deposited. The Severance Allowance
will be made without regard to whether Employee secures subsequent employment. Company will withhold from the Severance Allowance estimated federal and state income taxes and FICA and all other deductions authorized by Employee and forward to the
taxing authorities, provided however, Employee is responsible for any and all tax liability associated with the Severance Allowance. 

 3. Cobra Benefits. If Employee elects to continue participation in any group medical,
dental, vision and/or prescription drug plan benefits to which Employee and/or Employee’s eligible dependents would be entitled under Section 4980B of the Code (COBRA), then, during the first 12 months of the Severance Allowance Period
(the “Benefits Continuation Period” which shall have begun on May 1, 2014), Company will pay the excess of (i) the COBRA cost of such coverage over (ii) the amount that Employee would have had to pay for such coverage if he
had remained employed during the Benefits Continuation Period and paid the active employee rate for such coverage. ; provided, however, that (A) if, during the Benefits Continuation Period, Employee becomes eligible to receive group health
benefits under a program of a subsequent employer or otherwise (including coverage available to Employee’s spouse), then Company’s obligation to pay any portion of the cost of health coverage as provided under this Section 3 shall
thereupon immediately cease, except as otherwise provided by law, and terminate at the date of earliest possible commencement of medical coverage by the subsequent employer; (B) the Benefits Continuation Period shall run concurrently with any
period for which Employee is eligible to elect health coverage under COBRA; (C) during the Benefits Continuation Period, the benefits provided in any one calendar year shall not affect the amount of benefits provided in any other calendar year
(other than the effect of any overall coverage benefits under the applicable plans); (D) the reimbursement of an eligible taxable expense shall be made as soon as practicable but not later than December 31 of the year following the year in
which the expense was incurred; and (E) Employee’s rights pursuant to this Section 3 shall not be subject to liquidation or exchange for another benefit. 

Further, under the COBRA guidelines, Employee is entitled to pay premiums to extend medical and dental insurance coverage beyond the Benefits Continuation
Period (see attached forms). However, the extended coverage available under the COBRA guidelines cease upon eligibility for another employer’s medical insurance plan. Employee agrees to notify Company within seven days of becoming eligible for
another employer’s medical insurance plan. Should Employee fail to notify Company in a timely manner of his eligibility to receive group health benefits under a program of a subsequent employer or otherwise, then Employee will be liable for all
payments made by Company pursuant to this Section 3 from the date of commencement of subsequent group health coverage through the end of the Benefits Continuation Period. 

4. Company Property. Employee has returned his laptop to the Company. Employee represents and warrants he has no other Company property
except hard copies and electronic files relating to his employment and other business relationships between the Employee and the Company including documents Employee has retained in his capacity as a Director. 

  
 2 

 5. Proprietary Information; Non-Disparagement. During the course of employment with
Company, Employee acquired certain information relative to Company or its affiliates or customers or employees which is either sensitive or proprietary. For the consideration herein provided, Employee agrees to keep such sensitive or proprietary
information confidential and not to disclose said information to any prospective or subsequent employers or to any party outside Company. In addition to the contractual obligations regarding confidentiality accepted hereunder and any other
requirements by law pertaining to “Insiders” as defined by the Securities and Exchange Commission (the “SEC”), Employee understands that he has a common law duty not to disclose trade secrets of Company, its affiliates and/or
customers acquired during the course of his employment by Company. Further, Employee agrees that, except as may be required by law or court order, he will not, directly or indirectly, make any statement, oral or written, or perform any act or
omission which disparages or casts in a negative light Company or any of its affiliates, its products, customers or employees. Similarly the Company shall not disparage or cast in a negative light the Employee except as required by law or by court
order. The provisions of Section 5 of this Agreement will survive completion of the performance of this Agreement. This Section 5 is not intended to in any way limit any of the Protected Rights contained in Section 13. Notwithstanding
the foregoing, the Employee in his capacity as a Director shall utilize sensitive or proprietary information consistent with his fiduciary obligations.  

6. Termination of Employment Agreement; Status of Other Contracts and/or Investments. Company and Employee acknowledge and agree that
the Employment Agreement (with the exception of Schedule 2.2 “Employer-Permitted Activities) by and between Employee and Company, formerly known as Comstock Homebuilding Companies, Inc., dated December 7, 2004 (the “Employment
Agreement”) is hereby terminated and of no further force and effect. The parties agree that (i) this Agreement constitutes the “Notice of Termination” required by Paragraph 1.5 of the Employment Agreement,
(ii) Employee’s employment was mutually terminated pursuant to Paragraph 5.8 of the Employment Agreement, and (iii) no further document is necessary to effect the termination of Employee’s employment with Company or to satisfy
Paragraph 1.5 of the Employment Agreement. 
 Notwithstanding the foregoing, the parties further acknowledge and agree that the following
agreements, all of which are attached as Exhibits to this Agreement, remain in full force and effect as of the Termination Date until their expiration or termination in accordance with the terms set forth therein with no modifications or changes due
to the termination of Employee: 
  

	 	a.	Confidentiality and Non-Competition Agreement dated December 7, 2004 by and between Company and Employee (the “Non-Competition Agreement”); 

 

	 	b.	Credit Enhancement and Indemnification Agreement dated February 17, 2011, by and between Company, Christopher D. Clemente, and Employee (the “CEIA”); 

 

	 	c.	Corporate Indemnification Agreement dated July 28, 2005 by and between Company and Employee; 

  

	 	d.	Operating Agreement of Comstock Investors VII, L.C.; and 

  

	 	e.	Operating Agreement of Comstock Investors VIII, L.C. 

  
 3 

 Employee and Dan Martin, a former employee of the Company, contemplate entering into a business
arrangement. To the extent the entry into a business arrangement by the Employee and Dan Martin constitutes a violation of the “no raid” provisions of the Non-Competition Agreement, the Company hereby waives any such violation provided
Employee otherwise adheres to all other provisions of the Non-Competition Agreement. 
 7. CEIA Transaction Fees/Stonehenge Funding.
The parties acknowledge and agree that the indemnification provisions of the CEIA remain in full force in effect but Employee hereby waives his right to receive a Transaction Fee (as defined in the CEIA) on any commercial loan for which Employee is
or was a guarantor under a loan or the related loan documents. Provided however, if Company agrees that any Transaction Fees are to be paid in the future to Christopher Clemente under the CEIA for loans also guaranteed by Employee as of the date of
the Termination Date, the same Transaction Fees shall also be paid to Employee. Employee holds a participation interest in a loan made by Stonehenge Funding, an entity controlled by the Chief Executive Officer of the Company, to the Company (the
“Stonehenge Loan”). Employee agrees the release set forth in Section 11 extends to the Stonehenge Loan (in that Employee, as the owner of a participating interest in Stonehenge Funding, shall not initiate or cause Stonehenge Funding
to initiate a lawsuit or other collection action against the Company) provided that in the event the Company and Stonehenge Funding enter into a modification of the Stonehenge Loan, the Company will not enter into an amendment that purports to treat
any participant of the Stonehenge Loan in a disparate manner from the Chief Executive Officer of the Company.  
 8. Board of
Directors; Remainder of Term. The parties acknowledge that Employee is a current member of Company’s Board of Directors (the “Board”), whose term is set to expire at the annual meeting of stockholders in 2015. Company and Employee
agree that Employee may, at his election, maintain his position as a director of Company for the remainder of his term and shall be provided all Board materials, provided, however, Employee shall not be entitled to any compensation as a result of
serving as a director for the remainder of his current term. Employee may stand for re-election to the Board if so requested by a majority of the members of the Board prior to the 2015 annual meeting of stockholders. Notwithstanding the foregoing,
at such time as Employee owns less than 5% of the Company’s outstanding Class A Common Stock (on an as converted basis), at the request of the Board, Employee shall resign from the Board. 

9. 2014 Annual Meeting. Employee and Clareth LLC, an entity owned by Employee (“Clareth”), agree not to vote any or all of
their Class A Shares and Class B Shares against the approval of the three agenda items for the 2014 annual meeting of stockholders: (a) the re-election of three director nominees to the Board, (b) the appointment of PriceWaterhouse
Coopers as the independent auditor of the Company through December 31, 2014, and (c) the non-binding advisory vote approving the annual compensation of Company’s named executive officers. Additionally, if requested by the Company,
Employee and Clareth agree to provide to the Company an irrevocable proxy to the vote all of their Class A Shares and Class B Shares in favor of substantially similar agenda items for the 2015 annual meeting of stockholders. 

  
 4 

 10. Option to Purchase Class A Shares and Class B Shares. 

a. Company, or its designee(s), will have the option (but not the obligation) to purchase from Employee and Clareth (referred to herein in this
Sections 10 and 11 each as a “Seller” and collectively as, “Sellers”) shares of Company’s Class A Common Stock (the “Class A Shares”), and Class B Common Stock (the “Class B Shares”) owned by Sellers
on or before June 30, 2015 for $1.09 per share (subject to adjustment below) (the “Purchase Price”) in one or more transactions (the “Option”). If Company exercises the Option and Company, or its designee(s), elects to
purchase less than all of Sellers’ Class A Shares and Class B Shares in a single transaction, then the following shall apply to each transaction; 
  

	 	(i)	each transaction shall include the purchase of a pro-rata portion of the Class A Shares and the Class B Shares; 

  

	 	(ii)	the first such purchase must include a minimum of 1,000,000 of Employees’ Class A Shares and Class B Shares (cumulative number of Sellers’ Class A Shares and Class B Shares); and 

 

	 	(iii)	each subsequent purchase must include a minimum of 100,000 Class A Shares and Class B Shares (cumulative number of Sellers’ Class A Shares and Class B Shares) until all Class A Shares and Class B
Shares have been purchased. 

 Notwithstanding the above, if Company or its designee(s) exercises the Option simultaneous
with, or within 120 days of, the sale by members of the Board, the Chief Executive Officer, the Chief Financial Officer, and the General Counsel of Company (collectively, the “Affiliates”) of more than 500,000 shares of Company’s
Common Stock in the aggregate, or the Company has knowledge of a potential transaction of which it must provide notice to Employee the Purchase Price will be the greater of (x) $1.09 or (y) 80% of the highest price at which any of the
Affiliates sells shares of Common Stock in such transaction. 
 Company may exercise its rights under this Section 10 at any time prior
to the expiration of the Option by providing Employee with a notice setting forth the number of Class A Shares and Class B Shares that it will purchase in the transaction. The closing of such purchase shall occur on the fifth business day after
Company delivers the notice to Employee. At the closing, (i) Sellers shall transfer to Company the number of Class A Shares and Class B Shares identified in the notice free and clear of all liens and (ii) Company shall pay to Sellers
the Purchase Price for each share purchased by wire transfer in immediately available funds in accordance with the written instructions provided by Employee to Company at least 1 business day prior to closing. 

b. Company shall, for a period of 12 months following the Effective Date, use its commercially reasonable efforts to seek a third party buyer
on Employee’s behalf to purchase all or a portion of Sellers’ Class A Shares and Class B Shares. The agreement of Company in this Section 10(b) shall in no way prejudice or limit the Company from exercising all or a portion of
the Option. Following the identification of such a third party buyer, the terms of any such sale shall be negotiated between Employee and such third party buyer and Company shall have no liability to Employee whatsoever regarding the price, manner
or terms of such sale. In return for Company’s efforts to facilitate the sale of Sellers’ Class A Shares and Class B Shares, each Seller agrees that it will not sell or transfer any of his/its Class A Shares or Class B Shares in
the open market or in a private transaction without the prior approval of the Board, which approval will not be unreasonably withheld, conditioned, or delayed, for the period of twelve months after the Effective Date of this Agreement. 

  
 5 

 11. General Release and Covenant Not to Sue. Employee and Clareth each forever releases
Company, its successors, subsidiaries, parent companies, assigns, joint ventures, and affiliated companies and their respective stockholders, officers, directors, agents, legal representatives, attorneys, employees, members, and managers
(collectively, the “Releasees”) from any and all claims, suits, debts, damages, liabilities, demands, or causes of action for any event, transaction, or matter which he or it may by law release, as well as all contractual obligations not
expressly set forth in this Agreement, whether known or unknown, fixed or contingent, that he or it may have or claim to have against any Releasee for any reason prior to the Effective Date, exclusively as to any matter related to Employee’s
employment with Company or the termination of Employee’s employment. This release includes, but is not limited to, claims arising under federal, state or local laws prohibiting employment discrimination; claims arising under severance plans and
contracts; and claims growing out of any legal restrictions on Company’s rights to terminate its employees or to take any other employment action, whether statutory, contractual or arising under common law or case law. Employee expressly agrees
and understands that this Agreement is intended to release and does in fact release any claim he might have or believe he has against the Releasees under federal, state and local employment laws including, but not limited to, the Employee Retirement
Income Security Act, Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 1981, Americans with Disabilities Act, Age Discrimination in Employment Act, Older Workers Benefit Protection Act, Fair Labor Standards Act, Family and Medical Leave
Act, Genetic Information Nondiscrimination Act, Occupational Safety and Health Act, or any other federal, state, or local employment statute or under common law. 

Employee and Clareth each agrees and understands that this release is also intended as a general release of any claim he/it may have or have
had against Releasees with respect to the Employment Agreement. Employee and Clareth each warrants that he/it is authorized to make this release, that he/it has not assigned or otherwise transferred any claim he or it might have against Company or
any of the Releasees, and that he/it has not filed any notices, claims, complaints, charges, or lawsuits of any kind whatsoever against Company or any of the Releasees as of the date of execution of this Agreement. 

Except as provided by Section 12, Employee and Clareth each further hereby agrees not to file a lawsuit or other legal claim or charge to
assert against any of the Releasees any claim released by this Agreement. By signing this Agreement, Employee and Clareth each acknowledges that he/it is doing so knowingly and voluntarily, that he/it understands that he/it may be releasing claims
he/it may not know about, and that he/it is waiving all rights he may have had under any law that is intended to protect him/it from waiving unknown claims. 

  
 6 

 12. Protected Rights. Employee understands that nothing contained in this Agreement
limits his ability to file a charge or complaint with the Equal Employment Opportunity Commission, the National Labor Relations Board or any other federal, state or local governmental agency or commission (“Government
Agencies”). Employee further understands that this Agreement does not limit his ability to communicate with any Government Agencies or otherwise participate in any investigation or proceeding that may be conducted by any Government
Agencies in connection with any charge or complaint, whether filed by Employee, on his behalf, or by any other individual. However, based on Employee’s release of claims set forth in Section 11, Employee understands that he is
releasing all claims that he may have, as well as his right to recover monetary damages or obtain other relief that is personal to Employee in connection with any charge or complaint that may be filed with any Government Agencies relating to
Employee’s employment with Company. 
 13. Cooperation. Employee shall cooperate fully with Company in its defense or
prosecution of any and all litigation filed against or by Company, including any claims filed with federal, state or local governments or agencies, whether known or unknown at the time of the Effective Date, provided however, Employee shall be
reasonably compensated for his time in defense or prosecution of such litigation. Employee shall also cooperate with the transition of the Employee’s job function and shall answer any questions pertaining to his job duties for a reasonable time
after the Effective Date, provided however, all such communications shall be made directly between the Employee and the General Counsel of the Company.  

14. Confidentiality. Employee understands that the terms of this Agreement and the related facts giving rise to this separation are
strictly confidential except to the extent disclosure is required by federal securities regulations. Employee agrees he shall not disclose the terms of this Agreement and the related facts giving rise to this separation to any person except as
Company may expressly direct under Section 15. Employee agrees that in the event anyone not a party to this Agreement should inquire as to the status of his employment or relationship with Company, he shall state only that he is no longer
affiliated with Company except in his capacity as a director (for so long as he serves as a director). 
 15. Enforcement. 

A. Breach of Agreement. Except for any injunctive relief either party may be entitled to in accordance with this Agreement, in the event
that either Employee or the Company should be in breach of this Agreement, the remedy shall be to utilize the arbitration provisions of Section 18. 

B. Compliance with Employee Handbook. Deliberately Omitted. 

C. Legal Fees and Costs. The prevailing party in arbitration shall be entitled to recover any legal fees and expenses 

16. Costs. The parties intend that each shall bear its own costs, if any, that may have been incurred relating to this Agreement. 

17. No Admission of Liability. This Agreement is not intended as an admission of liability by any party. 

  
 7 

 18. Arbitration. If the parties are unable to resolve any dispute arising under this
Agreement then such dispute shall be submitted to binding arbitration in accordance with the employment arbitration rules of the American Arbitration Association then in effect at the American Arbitration Association office nearest to Company’s
Fairfax County, Virginia office. However, neither the Company nor Employee shall initiate any action unless the alleged breaching party has been given written notice of such breach and a 10 day opportunity to cure. Further, in the case of the
Company, no action of any kind shall be initiated without prior written consent of the Board of Directors of the Company. The arbitrator shall be an attorney, who shall make findings of fact and reach conclusions of law and render a written
‘reasoned opinion.’ 
 A petition for arbitration may be brought at any time within the applicable statute of limitation. Judgment
on an award rendered by an arbitrator may be entered in any court having competent jurisdiction for enforcement. This provision is intended to be liberally construed in favor of requiring arbitration. 

19. Notice. In the event that any notice is to be given to any party under this Agreement, it shall be given by certified mail, return
receipt requested, and addressed to the party as follows: 
  

					
	 To Company:
	  	Office of the General Counsel	  	
		  	Comstock Holding Companies, Inc. 1886
Metro Center Drive, 4th Floor	  	
		  	Reston, VA 20190	  	
			
	 To Employee:
	  	Gregory Benson	  	
		  	 12357 Clareth Drive
	  	
		  	Oak Hill, Virginia 20171	  	

 20. Modification. This Agreement, or any provision hereof, may not be modified unless agreed to in
writing by each of the parties. 
 21. Waiver. No waiver of a breach or default to this Agreement shall be deemed a waiver of any
subsequent breach or default. 
 22. Choice of Law. This Agreement shall be governed by, and construed in accordance with, the laws
of the Commonwealth of Virginia without giving any force or effect to the provisions of any conflict of law rule thereof. 
 23.
Severability. In the event that, for any reason, any section or provision of this Agreement should be held invalid or otherwise unenforceable, it is agreed that the same shall not affect any other section or provision of this Agreement, and the
remaining provisions of this Agreement shall remain in full force and effect. 
 24. Binding Agreement. This Agreement shall be
binding on, and inure to the benefit of, the parties hereto, their successors, heirs, personal representatives, and assigns. 

  
 8 

 25. Entire Agreement. This Agreement contains the entire agreement between the parties
relating to the termination of Employee’s employment with Company. 
 26. Acknowledgement and Other Terms. The parties
acknowledge that they have carefully read and understand all of the provisions of this Agreement, that they have had sufficient opportunity to make diligent inquiry into, and to consult with independent counsel concerning, this Agreement, and that
they are voluntarily entering into this Agreement. The parties further represent and acknowledge that in executing this Agreement, they are not relying and have not relied upon any representation or statement made by any other party (including their
respective affiliates, stockholders, agents, representatives, employees and attorneys) with regard to the subject matter, basis or effect of this Agreement. 

Employee expressly acknowledges and agrees that he has been offered at least 21 days to consider this Agreement before signing it and that
he has read this Agreement and the general release carefully. Employee acknowledges and agrees that he/it fully understands that this Agreement is final and binding and that it contains a full release of all claims and potential claims. 

27. Advice of Counsel. Company hereby advises Employee to consult with an attorney prior to executing this Agreement on behalf of
himself and Clareth. Employee acknowledges that he has been so advised and has had the opportunity to consult with his own legal and/or financial advisors regarding the terms of this Agreement, and that he has either consulted with such advisors or
has determined that he has the requisite knowledge and expertise with such matters as to render such advice unnecessary. 
 28. Code
Section 409A. The tax treatment of the benefits provided under this Agreement is not warranted or guaranteed. Neither Company nor its directors, officers, employees or advisers shall be held liable for any taxes, interest, penalties or
other monetary amounts owed by Employee as a result of the application of Section 409A of the Internal Revenue Code of 1986, as amended. 

29. Forum Selection and Consent to Jurisdiction. With respect to any litigation based on, arising out of, or in connection with this
Agreement, the parties hereby expressly submit to the personal jurisdiction of the Fairfax County Circuit Court for the Commonwealth of Virginia and of the United States District Court for the Eastern District of Virginia. The parties hereby
expressly waive, to the fullest extent permitted by law, any objection that they may now or hereafter have to the laying of venue of any such litigation brought in any such court referred to above, including without limitation any claim that any
such litigation has been brought in an inconvenient forum. 
 30. Revocation and Effective Date. The parties agree Employee may
revoke this Agreement at will within seven days after he executes this Agreement by giving written notice of revocation to Company. Such notice must be delivered to Jubal R. Thompson, General Counsel of Company and must actually be received by him
at or before the above-referenced seven-day deadline. This Agreement may not be revoked after the expiration of the seven-day deadline. The effectiveness of this Agreement is expressly contingent on Employee not revoking the Agreement. In the event
that Employee revokes this Agreement within the revocation period described in this Section 30, this Agreement shall not be effective or enforceable, and all rights and obligations hereunder shall be void and of no effect. Assuming that
Employee does not revoke this Agreement within the revocation period described above, the effective date of this Agreement shall be the eighth day following the date on which Employee executes this Agreement. 

  
 9 

 31. Counterparts. This Agreement may be executed in any number of counterparts and may be
delivered by facsimile, each of which shall be deemed to be an original but all of which together shall constitute one and the same instrument. 

IN WITNESS WHEREOF, the parties have duly executed and delivered this Agreement as of the date first set forth above. 

 

			
	COMPANY:
	
	Comstock Holding Companies, Inc.
		
	By:	 	  

	Name:	 	Christopher Clemente, CEO
	
	EMPLOYEE:
	
	Gregory V. Benson
	
	  

 The undersigned has joined this Agreement for purposes of Sections 9, 10, 11 and 12 of this Agreement. 

 

			
	CLARETH LLC
		
	By:	 	  

	Name:	 	  

	Title:	 	  

  
 10

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