Document:

Exhibit 10.62

 Exhibit 10.62 
 UNCONDITIONAL GUARANTY OF PAYMENT AND PERFORMANCE 
 FOR AND IN CONSIDERATION OF the sum of Ten
and No/100 Dollars ($10.00) and other good and valuable consideration paid or delivered to the undersigned COMSTOCK HOMEBUILDING COMPANIES, INC., a Delaware corporation (“Guarantor”), the receipt and sufficiency whereof are hereby
acknowledged by Guarantor, and for the purpose of seeking to induce KEYBANK NATIONAL ASSOCIATION, a national banking association (hereinafter referred to as “Lender”, which term shall also include each other Lender which may now be
or hereafter become a party to the “Loan Agreement” (as hereinafter defined), and shall also include any such individual Lender acting as agent for all of the Lenders), to extend credit or otherwise provide financial accommodations to
COMSTOCK STATION VIEW, L.C., a Virginia limited liability company, and COMSTOCK POTOMAC YARD, L.C., a Virginia limited liability company (hereinafter referred to collectively as “Borrower”), which extension of credit and
provision of financial accommodations will be to the direct interest, advantage and benefit of Guarantor, Guarantor does hereby absolutely, unconditionally and irrevocably guarantee to Lender the complete payment and performance of the following
liabilities, obligations and indebtedness of Borrower to Lender (hereinafter referred to collectively as the “Obligations”): 
 (a)
the full and prompt payment when due, whether by acceleration or otherwise, either before or after maturity thereof, of the “Notes” made by Borrower to the order of the Lenders in the aggregate principal face amount of Forty Million Three
Hundred Ninety-One Thousand Two Hundred and No/100 Dollars ($40,391,200.00), together with interest as provided in the Notes and together with any replacements, supplements, renewals, modifications, consolidations, restatements, increases and
extensions thereof; and 
 (b) the full and prompt payment when due, whether by acceleration or otherwise, either before or after maturity
thereof, of each other note as may be issued by Borrower under that certain Loan Agreement dated of even date herewith (hereinafter referred to as the “Loan Agreement”) among Guarantor, Borrower, KeyBank, for itself and as agent, and the
other lenders now or hereafter a party thereto, together with interest as provided in each such note, together with any replacements, supplements, renewals, modifications, consolidations, restatements, increases, and extensions thereof (the Notes,
and each of the notes described in this subparagraph (b) is hereinafter referred to collectively as the “Note”); and 
 (c)
the full and prompt payment and performance of any and all obligations of Borrower to Lender under the terms of the Loan Agreement, together with any replacements, supplements, renewals, modifications, consolidations, restatements and extensions
thereof, including, without limitation, including, without limitation, Borrower’s covenants and agreements with respect to the Construction and completion of the Project free of any claim for mechanics’, materialmen’s or any other
liens, and in accordance with (i) all Laws, (ii) the Plans and Specifications and (iii) the time periods and other requirements set forth in the Loan Documents, including, without limitation, the following: 
 (i) To perform, complete and pay for (or cause to be performed, completed and paid for) the Construction and to pay all costs of said Construction
(including any and all cost overruns) and all other costs associated with the Project (including, without limitation, the costs of any architects’ and engineers’ fees), if Borrower shall fail to perform, complete or pay for such work,
including any commercially reasonable sums expended in excess of the amount of indebtedness incurred by Borrower under the Loan Agreement or with respect to the Construction Loan, whether or not the Construction is actually completed; 

 (ii) If the Lender exercises their right under the Loan Agreement to take possession of the Project and
complete the Construction, to reimburse Lender for all commercially reasonable costs and expenses incurred by the Lender in excess of the applicable Budget Line Items therefor (if any) in so taking possession of the Project and completing the
Construction pursuant to the Plans and Specifications; 
 (iii) If any mechanics’ or materialmen’s liens should be filed, or
should attach, with respect to the Project by reason of the Construction, to immediately cause the removal of such liens, or post security against the consequences of their possible foreclosure and procure an endorsement(s) to the title policy
insuring the Lender against the consequences of the foreclosure or enforcement of such lien(s); 
 (iv) If any chattel mortgages,
conditional vendor’s liens or any liens, encumbrances or security interests whatsoever should be filed, or should attach, with respect to the personal property, fixtures, attachments and equipment delivered upon the Project and owned by
Borrower, attached to the Project or used in connection with the construction of the Improvements, to immediately cause the removal of such lien(s) or post security against the consequences of their possible foreclosure and procure an endorsement(s)
to the title policy insuring the Borrowers against the consequences of the foreclosure or enforcement of such lien(s); 
 (v) Before the
first to occur of (i) five (5) days after receipt of written notice from Agent and (ii) five (5) days before the lapse of the applicable policy of insurance, to pay the premiums for all policies of insurance required to be
furnished by Borrower pursuant to the Loan Agreement during the Construction if such premiums are not paid by Borrower; 
 (d)
Borrower’s obligation to keep the Loan In Balance and the full and prompt payment of all Deficiency Deposits; 
 (e) the full and prompt
payment and performance of any and all obligations of Borrower and to Lender under the Security Documents, together with any replacements, supplements, renewals, modifications, consolidations, restatements and extensions thereof; and 
 (f) the full and prompt payment and performance of any and all other obligations of Borrower to Lender under any other agreements, documents or
instruments now or hereafter evidencing, securing or otherwise relating to the indebtedness evidenced by the Note or the other obligations of Borrower under the Loan Agreement (the Note, the Loan Agreement, the Security Documents and said other
agreements, documents and instruments are hereinafter collectively referred to as the “Loan Documents” and individually referred to as a “Loan Document”). 
 1. Agreement to Pay and Perform; Costs of Collection. Guarantor does hereby agree that following an Event of Default under the Loan Documents if
the Note is not paid by Borrower in accordance with its terms, or if any and all sums which are now or may hereafter become due from Borrower to Lender under the Loan Documents are not paid by Borrower in accordance with their terms, or if any and
all other obligations of Borrower to Lender under the 

  

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Note or of Borrower under the other Loan Documents are not performed by Borrower in accordance with their terms, Guarantor will immediately upon demand make
such payments and perform such obligations. Guarantor further agrees to pay Lender on demand all reasonable costs and expenses (including court costs and reasonable attorneys’ fees and disbursements) paid or incurred by Lender in endeavoring to
collect the Obligations guaranteed hereby, to enforce any of the Obligations of Borrower guaranteed hereby, or any portion thereof, or to enforce this Guaranty, and until paid to Lender, such sums shall bear interest at the Default Rate set forth in
the Loan Agreement unless collection from Guarantor of interest at such rate would be contrary to applicable law, in which event such sums shall bear interest at the highest rate which may be collected from Guarantor under applicable law.

 2. Reinstatement of Refunded Payments. If, for any reason, any payment to Lender of any of the Obligations guaranteed hereunder is
required to be refunded by Lender to Borrower, or paid or turned over to any other person, including, without limitation, by reason of the operation of bankruptcy, reorganization, receivership or insolvency laws or similar laws of general
application relating to creditors’ rights and remedies now or hereafter enacted, Guarantor agrees to pay to the Lender on demand an amount equal to the amount so required to be refunded, paid or turned over (the “Turnover Payment”),
the obligations of Guarantor shall not be treated as having been discharged by the original payment to Lender giving rise to the Turnover Payment, and this Guaranty shall be treated as having remained in full force and effect for any such Turnover
Payment so made by Lender, as well as for any amounts not theretofore paid to Lender on account of such obligations. 
 3. Rights of
Lender to Deal with Collateral, Borrower and Other Persons. Guarantor hereby consents and agrees that Lender may at any time, and from time to time, without thereby releasing Guarantor from any liability hereunder and without notice to or
further consent from Guarantor or any other Person or entity, either with or without consideration: release or surrender any lien or other security of any kind or nature whatsoever held by it or by any person, firm or corporation on its behalf or
for its account, securing any indebtedness or liability hereby guaranteed; substitute for any collateral so held by it, other collateral of like kind, or of any kind; modify the terms of the Note or the Loan Documents; extend or renew the Note for
any period; grant releases, compromises and indulgences with respect to the Note or the Loan Documents and to any persons or entities now or hereafter liable thereunder or hereunder; release any other guarantor, surety, endorser or accommodation
party of the Note, the Security Documents or any other Loan Document; or take or fail to take any action of any type whatsoever. No such action which Lender shall take or fail to take in connection with the Note or the Loan Documents, or any of
them, or any security for the payment of the indebtedness of Borrower to Lender or for the performance of any obligations or undertakings of Borrower or Guarantor, nor any course of dealing with Borrower or any other person, shall release
Guarantor’s obligations hereunder, affect this Guaranty in any way or afford Guarantor any recourse against Lender. The provisions of this Guaranty shall extend and be applicable to all replacements, supplements, renewals, amendments,
extensions, consolidations, restatements and modifications of the Note and the other Loan Documents, and any and all references herein to the Note and the other Loan Documents shall be deemed to include any such replacements, supplements, renewals,
extensions, amendments, consolidations, restatements or modifications thereof. Without limiting the generality of the foregoing, Guarantor acknowledges the terms of Section 18.3 of the Loan Agreement and agree that this Guaranty shall extend
and be applicable to each new or replacement note delivered by Borrower pursuant thereto without notice to or further consent from Guarantor. 
  

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 4. No Contest with Lender; Subordination. Guarantor will not, by paying any sum recoverable
hereunder (whether or not demanded by Lender) or by any means or on any other ground, claim any set-off or counterclaim against Borrower in respect of any liability of Guarantor to Borrower or, in proceedings under federal bankruptcy law or
insolvency proceedings of any nature, prove in competition with Lender in respect of any payment hereunder or be entitled to have the benefit of any counterclaim or proof of claim or dividend or payment by or on behalf of Borrower or the benefit of
any other security for any of the Obligations hereby guaranteed which, now or hereafter, Lender may hold or in which it may have any share. Guarantor hereby expressly waives any right of contribution from or indemnity against Borrower, whether at
law or in equity, arising from any payments made by Guarantor pursuant to the terms of this Guaranty, and Guarantor acknowledges that Guarantor has no right whatsoever to proceed against Borrower or for reimbursement of any such payments, except for
those rights of Guarantor under the Contribution Agreement; provided, however, Guarantor agrees not to pursue or enforce any of its rights under the Contribution Agreement and Guarantor agrees not to make or receive any payment on account of the
Contribution Agreement so long as any of the Obligations remain unpaid or undischarged. In the event Guarantor shall receive any payment under or on account of the Contribution Agreement, it shall hold such payment as trustee for Lender and be paid
over to Lender on account of the indebtedness of Borrower to Lender but without reducing or affecting in any manner the liability of Guarantor under the other provisions of this Guaranty except to the extent the principal amount or other portion of
such indebtedness shall have been reduced by such payment. In connection with the foregoing, so long as any of the Obligations remain unpaid or undischarged, Guarantor expressly waives any and all rights of subrogation to Lender against Borrower,
and Guarantor hereby waives any rights to enforce any remedy which Lender may have against Borrower and any rights to participate in any collateral for Borrower’s obligations under the Loan Documents. Guarantor hereby subordinates any and all
indebtedness of Borrower now or hereafter owed to Guarantor to all indebtedness of Borrower to Lender, and agrees with Lender that (a) Guarantor shall not demand or accept any payment from Borrower on account of such indebtedness,
(b) Guarantor shall not claim any offset or other reduction of Guarantor’s obligations hereunder because of any such indebtedness and (c) Guarantor shall not take any action to obtain any interest in any of the security provided by
Borrower described in and encumbered by the Loan Documents; provided, however, that, if Lender so requests, such indebtedness shall be collected, enforced and received by Guarantor as trustee for Lender and be paid over to Lender on account of the
indebtedness of Borrower to Lender, but without reducing or affecting in any manner the liability of Guarantor under the other provisions of this Guaranty except to the extent the principal amount or other portion of such outstanding indebtedness
shall have been reduced by such payment. 
 5. Waiver of Defenses. Guarantor hereby agrees that its obligations hereunder shall not be
affected or impaired by, and hereby waives and agrees not to assert or take advantage of any defense based on: 
 (a) (i) any change in the
amount, interest rate or due date or other term of any of the obligations hereby guaranteed, (ii) any change in the time, place or manner of payment of all or any portion of the obligations hereby guaranteed, (iii) any amendment or waiver
of, or consent to the departure from or other indulgence with respect to, the Loan Agreement, any other 

  

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Loan Document, or any other document or instrument evidencing or relating to any obligations hereby guaranteed, or (iv) any waiver, renewal, extension,
addition, or supplement to, or deletion from, or any other action or inaction under or in respect of, the Loan Agreement, any of the other Loan Documents, or any other documents, instruments or agreements relating to the obligations hereby
guaranteed or any other instrument or agreement referred to therein or evidencing any obligations hereby guaranteed or any assignment or transfer of any of the foregoing; 
 (b) any subordination of the payment of the obligations hereby guaranteed to the payment of any other liability of Borrower or any other person; 
 (c) any act or failure to act by Borrower or any other Person which may adversely affect Guarantor’s subrogation rights, if any, against Borrower or
any other Person to recover payments made under this Guaranty; 
 (d) any nonperfection or impairment of any security interest or other Lien
on any collateral, if any, securing in any way any of the obligations hereby guaranteed or any failure on the part of Lender to ascertain the extent or nature of any Collateral or any insurance or other rights with respect thereto, or the liability
of any party liable under the Loan Documents or the obligations evidenced or secured thereby; 
 (e) any application of sums paid by Borrower
or any other Person with respect to the liabilities of Lender, regardless of what liabilities of Borrower remain unpaid; 
 (f) any defense
of Borrower, including without limitation, the invalidity, illegality or unenforceability of any of the Obligations; 
 (g) either with or
without notice to Guarantor, any renewal, extension, modification, amendment or another changes in the Obligations, including but not limited to any material alteration of the terms of payment or performance of the Obligations; 
 (h) any statute of limitations in any action hereunder or for the collection of the Note or for the payment or performance of any obligation hereby
guaranteed; 
 (i) the incapacity, lack of authority, death or disability of Borrower or any other Person or entity, or the failure of Lender
to file or enforce a claim against the estate (either in administration, bankruptcy or in any other proceeding) of Borrower or Guarantor or any other Person or entity; 
 (j) the dissolution or termination of existence of Borrower, Guarantor or any other Person or entity; 
 (k)
the voluntary or involuntary liquidation, sale or other disposition of all or substantially all of the assets of Borrower or Guarantor or any other Person or entity; 
 (l) the voluntary or involuntary receivership, insolvency, bankruptcy, assignment for the benefit of creditors, reorganization, assignment, composition, or readjustment of, or any similar proceeding affecting,
Borrower or Guarantor or any other Person or entity, or any of Borrower’s or Guarantor’s or any other Person’s or entity’s properties or assets; 
  

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 (m) an assertion or claim that the automatic stay provided by 11 U.S.C. §362 (arising upon the
voluntary or involuntary bankruptcy proceeding of either Borrower) or any other stay provided under any other debtor relief law (whether statutory, common law, case law or otherwise) of any jurisdiction whatsoever, now or hereafter in effect, which
may be or become applicable, shall operate or be interpreted to stay, interdict, condition, reduce or inhibit the ability of Lender to enforce any of its rights, whether now or hereafter required, which Lender may have against Guarantor or the
Collateral; 
 (n) any right or claim of right to cause a marshaling of the assets of either Borrower or Guarantor; 
 (o) the damage, destruction, condemnation, foreclosure or surrender of all or any part of the Collateral or the Mortgaged Property or any of the
improvements located thereon; 
 (p) the failure of Lender to give notice of the existence, creation or incurring of any new or additional
indebtedness or obligation of Borrower or of any action or nonaction on the part of any other person whomsoever in connection with any obligation hereby guaranteed; 
 (q) any failure or delay of Lender to commence an action against Borrower or any other Person, to assert or enforce any remedies against Borrower under the Note or the other Loan Documents, or to realize upon any
security; 
 (r) any failure of any duty on the part of Lender to disclose to Guarantor any facts it may now or hereafter know regarding
Borrower (including, without limitation Borrower’s financial condition), any other person or entity, the Collateral, or any other assets or liabilities of such person or entity, whether such facts materially increase the risk to Guarantor or
not (it being agreed that Guarantor assume responsibility for being informed with respect to such information); 
 (s) failure to accept or
give notice of acceptance of this Guaranty by Lender; 
 (t) failure to make or give notice of presentment and demand for payment of any of
the indebtedness or performance of any of the obligations hereby guaranteed; 
 (u) failure to make or give protest and notice of dishonor or
of default to Guarantor or to any other party with respect to the indebtedness or performance of obligations hereby guaranteed; 
 (v) any
and all other notices whatsoever to which Guarantor might otherwise be entitled; 
 (w) any lack of diligence by Lender in collection,
protection or realization upon any collateral securing the payment of the indebtedness or performance of obligations hereby guaranteed; 
 (x) the invalidity or unenforceability of the Note, or any of the other Loan Documents, or any assignment or transfer of the foregoing; 
 (y) the compromise, settlement, release or termination of any or all of the obligations of Borrower under the Note or the other Loan Documents; 
  

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 (z) any transfer by Borrower or any other Person of all or any part of the security encumbered by the
Loan Documents; 
 (aa) any right to require Lender to proceed against either Borrower or any other Person or to proceed against or exhaust
any security held by Lender at any time or to pursue any other remedy in Lender’s power or under any other agreement before proceeding against Guarantor hereunder or under any other Loan Document; 
 (bb) the failure of Lender to perfect any security or to extend or renew the perfection of any security; 
 (cc) any principle or provision of law, statutory or otherwise, which is or might be in conflict with the terms and provisions of this Guaranty;

 (dd) any inaccuracy of any representation or other provision contained in any Loan Document; 
 (ee) any sale or assignment of the Loan Documents, or any interest therein; 
 (ff) any and all rights, benefits and defenses which might otherwise be available under the provisions of Sections 49-25 and 49-26 of the Code of
Virginia (1950), as amended; or 
 (gg) to the fullest extent permitted by law, any other legal, equitable or surety defenses whatsoever to
which Guarantor might otherwise be entitled, it being the intention that the obligations of Guarantor hereunder are absolute, unconditional and irrevocable. 
 6. Guaranty of Payment and Performance and Not of Collection. This is a Guaranty of payment and performance and not of collection. The liability of Guarantor under this Guaranty shall be primary, direct and
immediate and not conditional or contingent upon the pursuit of any remedies against Borrower or any other Person, nor against securities or liens available to Lender, its successors, successors in title, endorsees or assigns. Guarantor hereby
waives any right to require that an action be brought against Borrower or any other Person or to require that resort be had to any security or to any balance of any deposit account or credit on the books of Lender in favor of Borrower or any other
Person. 
 7. Rights and Remedies of Lender. In the event of an Event of Default under the Note or the Loan Documents, or any of them,
that is continuing (it being understood that the Lender has no obligation to accept cure after an Event of Default occurs), Lender shall have the right to enforce its rights, powers and remedies thereunder or hereunder or under any other Loan
Document, in any order, and all rights, powers and remedies available to Lender in such event shall be nonexclusive and cumulative of all other rights, powers and remedies provided thereunder or hereunder or by law or in equity. Accordingly,
Guarantor hereby authorizes and empowers Lender upon the occurrence of any Event of Default under the Note or the other Loan Documents, at its sole discretion, and without notice to Guarantor, to exercise any right or remedy which Lender may have,
including, but not limited to, judicial foreclosure, exercise of rights of power of sale, acceptance of a deed or assignment in lieu of foreclosure, appointment of a receiver to collect rents and profits, exercise of remedies against personal
property, or enforcement of any assignment of leases, as to any security, whether real, personal or intangible. 

  

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At any public or private sale of any security or collateral for any of the Obligations guaranteed hereby, whether by foreclosure or otherwise, Lender may, in
its discretion, purchase all or any part of such security or collateral so sold or offered for sale for its own account and may apply against the amount bid therefor all or any part of the balance due it pursuant to the terms of the Note or Security
Documents or any other Loan Document without prejudice to Lender’s remedies hereunder against Guarantor for deficiencies. If the Obligations guaranteed hereby are partially paid by reason of the election of Lender to pursue any of the remedies
available to Lender, or if such Obligations are otherwise partially paid, this Guaranty shall nevertheless remain in full force and effect, and Guarantor shall remain liable for the entire balance of the Obligations guaranteed hereby even though any
rights which Guarantor may have against Borrower may be destroyed or diminished by the exercise of any such remedy. 
 8. Application of
Payments. Guarantor hereby authorizes Lender, without notice to Guarantor, to apply all payments and credits received from Borrower or from Guarantor or realized from any security in such manner and in such priority as Lender in its sole
judgment shall see fit to the Obligations. 
 9. Business Failure, Bankruptcy or Insolvency. In the event of the business failure of
Guarantor or if there shall be pending any bankruptcy or insolvency case or proceeding with respect to Guarantor under federal bankruptcy law or any other applicable law or in connection with the insolvency of Guarantor, or if a liquidator,
receiver, or trustee shall have been appointed for Guarantor or Guarantor’s properties or assets, Lender may file such proofs of claim and other papers or documents as may be necessary or advisable in order to have the claims of Lender allowed
in any proceedings relative to Guarantor, or any of Guarantor’s properties or assets, and, irrespective of whether the indebtedness or other obligations of Borrower guaranteed hereby shall then be due and payable, by declaration or otherwise,
Lender shall be entitled and empowered to file and prove a claim for the whole amount of any sums or sums owing with respect to the indebtedness or other obligations of Borrower guaranteed hereby, and to collect and receive any moneys or other
property payable or deliverable on any such claim. Guarantor covenants and agrees that upon the commencement of a voluntary or involuntary bankruptcy proceeding by or against Borrower, Guarantor shall not seek a supplemental stay or otherwise
pursuant to 11 U.S.C. §105 or any other provision of the Bankruptcy Code, as amended, or any other debtor relief law (whether statutory, common law, case law, or otherwise) of any jurisdiction whatsoever, now or hereafter in effect, which may
be or become applicable, to stay, interdict, condition, reduce or inhibit the ability of Lender to enforce any rights of Lender against Guarantor by virtue of this Guaranty or otherwise. 
 10. Covenants of Guarantor. Guarantor hereby covenants and agrees with Lender that until all indebtedness guaranteed hereby has been completely
repaid and all obligations and undertakings of Borrower under, by reason of, or pursuant to the Note and the other Loan Documents have been completely performed and Lender has no further obligation to make Loans, Guarantor will comply with any and
all covenants applicable to Guarantor set forth in the Loan Agreement. 
 11. Security and Rights of Set-off. Guarantor hereby grants
to Lender, as security for the full and prompt payment and performance of Guarantor’s obligations hereunder, a continuing lien on and security interest in any and all securities or other property belonging to Guarantor now or hereafter held by
Lender and in any and all deposits (general or specific, time or demand, provisional or final, regardless of currency, maturity, or the branch of Lender where the deposits 

  

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are held) now or hereafter held by Lender and other sums credited by or due from Lender to Guarantor or subject to withdrawal by Guarantor; and regardless of
the adequacy of any collateral or other means of obtaining repayment of such obligations, during the continuance of any Event of Default under the Note or the other Loan Documents, Lender may at any time and without notice to Guarantor set-off and
apply the whole or any portion or portions of any or all such deposits and other sums against amounts payable under this Guaranty, whether or not any other person or persons could also withdraw money therefrom. Any security now or hereafter held by
or for Guarantor and provided by Borrower, or by anyone on Borrower’s behalf, in respect of liabilities of Guarantor hereunder shall be held in trust for Lender as security for the liabilities of Guarantor hereunder. 
 12. Changes in Writing; No Revocation. This Guaranty may not be changed orally, and no obligation of Guarantor can be released or waived by Lender
except as provided in §27 of the Loan Agreement. This Guaranty shall be irrevocable by Guarantor until all indebtedness guaranteed hereby has been completely repaid and all obligations and undertakings of Borrower under, by reason of, or
pursuant to the Note, and the Loan Documents have been completely performed and the Lenders have no further obligation to advance Loans under the Loan Agreement. 
 13. Notices. All notices, demands or requests provided for or permitted to be given pursuant to this Guaranty (hereinafter in this paragraph referred to as “Notice”) must be in writing and shall be
deemed to have been properly given or served by personal delivery or by sending same by overnight courier or by depositing the same in the United States mail, postpaid and registered or certified, return receipt requested, at the addresses set forth
below. Each Notice shall be effective upon being delivered personally or upon being sent by overnight courier or upon being deposited in the United States Mail as aforesaid. The time period in which a response to any such Notice must be given or any
action taken with respect thereto, however, shall commence to run from the date of receipt if personally delivered or sent by overnight courier or, if so deposited in the United States Mail, the earlier of three (3) Business Days following such
deposit and the date of receipt as disclosed on the return receipt. Rejection or other refusal to accept or the inability to deliver because of changed address of which no Notice was given shall be deemed to be receipt of the Notice sent. By giving
at least fifteen (15) days prior Notice thereof, Guarantor or Lender shall have the right from time to time and at any time during the term of this Guaranty to change their respective addresses and each shall have the right to specify as its
address any other address within the United States of America. For the purposes of this Guaranty: 
 The address of Lender is: 
 KeyBank National Association, as Agent 
 1200
Abernathy Road, N.E. 
 Suite 1550 
 Atlanta, GA 30328 
 Attn: Mr. Dan Silbert 
  

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 The address of Guarantor is: 
 Comstock Homebuilding Companies, Inc. 
 11465
Sunset Hills Road, Suite 500 
 Reston, Virginia 20190 
 Attn: Christopher Clemente 
 with a copy to: 
 Comstock Homebuilding Companies, Inc. 
 11465
Sunset Hills Road, Suite 500 
 Reston, Virginia 20190 
 Attn: Jubal Thompson, Esq. 
 14. GOVERNING LAW. GUARANTOR ACKNOWLEDGES AND AGREES THAT THIS
GUARANTY AND THE OBLIGATIONS OF GUARANTOR HEREUNDER SHALL BE GOVERNED BY AND INTERPRETED AND DETERMINED IN ACCORDANCE WITH THE LAWS OF THE COMMONWEALTH OF VIRGINIA. 
 15. CONSENT TO JURISDICTION; WAIVERS. GUARANTOR HEREBY IRREVOCABLY AND UNCONDITIONALLY (A) SUBMITS TO PERSONAL JURISDICTION IN THE COMMONWEALTH OF VIRGINIA OVER ANY SUIT, ACTION OR PROCEEDING
ARISING OUT OF OR RELATING TO THIS GUARANTY, AND (B) WAIVES ANY AND ALL PERSONAL RIGHTS UNDER THE LAWS OF ANY STATE (I) TO THE RIGHT, IF ANY, TO TRIAL BY JURY (LENDER HAVING ALSO WAIVED SUCH RIGHT TO TRIAL BY JURY), (II) TO OBJECT TO
JURISDICTION WITHIN THE COMMONWEALTH OF VIRGINIA OR VENUE IN ANY PARTICULAR FORUM WITHIN THE COMMONWEALTH OF VIRGINIA, AND (III) TO THE RIGHT, IF ANY, TO CLAIM OR RECOVER ANY SPECIAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES OR ANY DAMAGES OTHER
THAN OR IN ADDITION TO ACTUAL DAMAGES. EACH LENDER IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY AND ALL RIGHTS UNDER THE LAWS OF ANY STATE TO THE RIGHT, IF ANY, TO TRIAL BY JURY. GUARANTOR AGREES THAT, IN ADDITION TO ANY METHODS OF SERVICE OF PROCESS
PROVIDED FOR UNDER APPLICABLE LAW, ALL SERVICE OF PROCESS IN ANY SUCH SUIT, ACTION OR PROCEEDING MAY BE MADE BY CERTIFIED OR REGISTERED MAIL, RETURN RECEIPT REQUESTED, DIRECTED TO GUARANTOR AT THE ADDRESS SET FORTH IN PARAGRAPH 13 ABOVE, AND SERVICE
SO MADE SHALL BE COMPLETE FIVE (5) DAYS AFTER THE SAME SHALL BE SO MAILED. NOTHING CONTAINED HEREIN, HOWEVER, SHALL PREVENT LENDER FROM BRINGING ANY SUIT, ACTION OR PROCEEDING OR EXERCISING ANY RIGHTS AGAINST ANY SECURITY AND AGAINST GUARANTOR
PERSONALLY, AND AGAINST ANY PROPERTY OF GUARANTOR, WITHIN ANY OTHER STATE. INITIATING SUCH SUIT, ACTION OR PROCEEDING OR TAKING SUCH ACTION IN ANY STATE SHALL IN NO EVENT CONSTITUTE A WAIVER OF THE AGREEMENT CONTAINED HEREIN THAT THE LAWS OF THE
COMMONWEALTH OF VIRGINIA SHALL GOVERN THE RIGHTS AND OBLIGATIONS OF GUARANTOR AND LENDER HEREUNDER OR OF THE 

  

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SUBMISSION HEREIN MADE BY GUARANTOR TO PERSONAL JURISDICTION WITHIN THE COMMONWEALTH OF VIRGINIA, GUARANTOR HEREBY WAIVES ANY OBJECTION THAT IT MAY NOW OR
HEREAFTER HAVE TO THE VENUE OF ANY SUCH SUIT OR ANY SUCH COURT OR THAT SUCH SUIT IS BROUGHT IN AN INCONVENIENT COURT. GUARANTOR CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY LENDER HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH
LENDER WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVERS AND ACKNOWLEDGE THAT LENDER HAS BEEN INDUCED TO ENTER INTO THIS GUARANTY AND THE OTHER LOAN DOCUMENTS TO WHICH THEY ARE PARTIES BY, AMONG OTHER THINGS, THE WAIVERS
AND CERTIFICATIONS CONTAINED IN THIS PARAGRAPH 15. GUARANTOR ACKNOWLEDGES THAT IT HAS HAD AN OPPORTUNITY TO REVIEW THIS PARAGRAPH 15 WITH ITS LEGAL COUNSEL AND THAT GUARANTOR AGREES TO THE FOREGOING AS ITS FREE, KNOWING AND VOLUNTARY ACT.

 16. Successors and Assigns. The provisions of this Guaranty shall be binding upon Guarantor and its heirs, successors,
successors in title, legal representatives, and assigns, and shall inure to the benefit of Lender, its successors, successors in title, legal representatives and assigns. Guarantor shall not assign or transfer any of its rights or obligations under
this Guaranty without the prior written consent of Lender. 
 17. Assignment by Lender. This Guaranty is assignable by Lender in whole
or in part in conjunction with any assignment of the Note or portions thereof, and any assignment hereof or any transfer or assignment of the Note or portions thereof by Lender shall operate to vest in any such assignee the rights and powers, in
whole or in part, as appropriate, herein conferred upon and granted to Lender. 
 18. Severability. If any term or provision of this
Guaranty shall be determined to be illegal or unenforceable, all other terms and provisions hereof shall nevertheless remain effective and shall be enforced to the fullest extent permitted by law. 
 19. Disclosure. Guarantor agrees that in addition to disclosures made in accordance with standard banking practices, any Lender may disclose
information obtained by such Lender pursuant to this Guaranty to assignees or participants and potential assignees or participants hereunder subject to the terms of the Loan Agreement. 
 20. NO UNWRITTEN AGREEMENTS. THIS GUARANTY REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF
PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES. 
 21.
Time of the Essence. Time is of the essence with respect to each and every covenant, agreement and obligation of Guarantor under this Guaranty. 
 22. Ratification. Guarantors do hereby restate, reaffirm and ratify each and every warranty and representation regarding Guarantor set forth in the Loan Agreement as if the same were more fully set forth
herein. 
  

 11 

 23. Distributions. 
 (a) Guarantor shall not pay any Distribution unless and until: 
 (i) Agent shall have received and approved a statement (a “Compliance Certificate”) certified by the chief financial officer of Guarantor in the form of Exhibit “A” hereto evidencing
compliance with the covenants contained in §23(a)(ii) below. The Compliance Certificate shall be delivered to Agent no later than on the fifth (5th) day of each calendar month; it being acknowledged and agreed that Agent shall be deemed to have approved such statements in the event that Agent does not respond within ten (10) calendar days of confirmed receipt of such
statement. 
 (ii) the Guarantor is in compliance with the following covenants on an actual basis, as of the end of the month to which such
Compliance Certificate relates and will continue to be in compliance on a pro forma basis after such Distributions: 
 (1) the ratio of
Guarantor’s Total Liabilities to Tangible Net Worth is 2.25 to 1.00 or less; 
 (2) the ratio of Guarantor’s EBITDA to Interest
Incurred for the Test Period is greater than 2.00 to 1.00; and 
 (3) Guarantor’s Tangible Net Worth exceeds $50,000,000. 

(iii) Any amounts available for Distribution to Guarantor’s shareholders or other beneficial owners pursuant to this §23 must be
distributed within three (3) months following a Monthly Measurement Date as provided herein, provided that the conditions in §23 to the making of Distributions continue to be satisfied at such time. Any amounts available for Distribution
to Guarantor’s shareholders or other beneficial owners which are not distributed within three (3) months following a Monthly Measurement Date as provided herein shall be retained by Guarantor. 
 (iv) No Distributions may be made to any of the shareholders or other beneficial owners of Guarantor unless after such Distribution would be made no
Default or Event of Default shall have occurred and be continuing or would exist after giving effect to such Distribution. 
 (b) For the
purposes of this Section 23, the terms set forth below shall be defined as follows: 
 (i) EBITDA. With respect to a Person for
any period (without duplication): Net Income (or loss) of such Person for such period determined on a consolidated basis (prior to any impact of adjustments for minority interests in such Person) in accordance with GAAP, exclusive of the following
(but only to the extent included in the determination of such Net Income (loss)): (i) depreciation and amortization expense; (ii) interest expense, including interest expensed and previously capitalized interest included as costs of goods
sold (to the extent deducted in calculating such Net Income); (iii) income tax expense; (iv) extraordinary or non-recurring gains and losses; and (v) any gains resulting from the forgiveness of such Person’s Indebtedness.

  

 12 

 (ii) Intangible Assets. Collectively, (i) the amount (to the extent reflected in determining
Guarantor’s and its Subsidiaries total assets) of all write-ups in the book value of any asset (other than real property assets) owned by Guarantor and its Subsidiaries, and (ii) goodwill, patents, trademarks, service marks, trade names,
anticipated future benefit of tax loss carry forwards, copyrights, organization or developmental expenses, deferred financing costs, and other intangible assets. 
 (iii) Interest Incurred. For any period with respect to Guarantors and its Subsidiaries on a consolidated basis, without duplication, the sum of total interest incurred (both expensed and capitalized), together
with the interest portion of payments on Capitalized Leases. 
 (iv) Monthly Measurement Date. Each calendar month during the term of
the Loan Agreement, with the first Monthly Measurement Date occurring April 1, 2008. 
 (v) Net Income (or Loss). With respect
to Guarantor or its Subsidiaries (or any asset of Guarantor or its Subsidiaries) for any period, the net income (or loss) of Guarantor or its Subsidiaries (or attributable to such asset), determined on a consolidated basis in accordance with GAAP.

 (vi) Subsidiary. For any Person, any corporation, partnership, limited liability company or other entity of which at least a
majority of the securities or other ownership interests having by the terms thereof ordinary voting power to elect a majority of the board of directors or other persons performing similar functions of such corporation, partnership, limited liability
company or other entity (without regard to the occurrence of any contingency) is at the time directly or indirectly owned or controlled by such Person or one or more Subsidiaries of such Person or by such Person and one or more Subsidiaries of such
Person, and shall include all Persons the accounts of which are consolidated with those of such Person pursuant to GAAP. 
 (vii)
Tangible Net Worth. At any date, Guarantor’s and its Subsidiaries total assets, adjusted to add back the accumulated depreciation of its real estate assets, less its Intangible Assets, less its Total Liabilities, all as determined on a
consolidated basis in accordance with GAAP as determined as of such date. 
 (viii) Test Period. A period of six (6) consecutive
months, treated as a single accounting period. 
 (ix) Total Liabilities. The sum, without duplication of (i) all consolidated
liabilities of the Guarantor or its Subsidiaries determined in accordance with GAAP, including capital leases, accounts payable, accrued expenses, mortgage payables, notes payable, senior notes, convertible debentures, subordinated debentures, and
secured or unsecured debt owed to banks or other financial institutions, (ii) all Indebtedness of the Guarantor or its Subsidiaries whether or not so classified, and (iii) the balance available for drawing under letters of credit issued
for the account of the Guarantor or its Subsidiaries. 
 24. Fair Consideration. The Guarantor represents that the Guarantor is
engaged in common business enterprises related to those of Borrower and Guarantor will derive substantial direct or indirect economic benefit from the effectiveness and existence of the Loan Agreement. 
  

 13 

 25. Counterparts. This Guaranty and any amendment hereof may be executed in several counterparts
and by each party on a separate counterpart, each of which when so executed and delivered shall be an original, and all of which together shall constitute one instrument. In proving this Guaranty it shall not be necessary to produce or account for
more than one such counterpart signed by the party against whom enforcement is sought. 
 26. Definitions. All terms used herein and
not otherwise defined herein shall have the meanings set forth in the Loan Agreement including, without limitation, Schedule 9(b) thereto. 
 [Remainder of Page Intentionally Left Blank] 
  

 14 

 IN WITNESS WHEREOF, Guarantor has executed this Guaranty as of this      day
of March, 2008. 
  

			
	 GUARANTOR:

	
	 COMSTOCK HOMEBUILDING COMPANIES, INC., a Delaware corporation

		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

	
	[CORPORATE SEAL]

  

 15 

 Lender joins in the execution of this Guaranty for the sole and limited purpose of evidencing its
agreement to waiver of the right to trial by jury contained in Paragraph 15 hereof and Section 25 of the Loan Agreement. 
  

			
	 KEYBANK NATIONAL ASSOCIATION, as Agent

		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

  

 16 

 EXHIBIT “A” 
 FORM OF COMPLIANCE CERTIFICATE 
 KeyBank National Association, as Agent 
 1200 Abernathy Road, N.E., Suite 1550 
 Atlanta, Georgia 30328 
 Attn: Jennifer Wells 
 Ladies and Gentlemen: 
 Reference is made to the Unconditional Guaranty of Payment and Performance from Comstock Homebuilding Companies, Inc., a Delaware Corporation to KeyBank
National Association and the other lenders (collectively, the “Lenders”) from time to time party to that certain Loan Agreement dated as of March     , 2008, by and among Comstock Potomac Yard, L.C., a
Virginia limited liability company, Comstock Station View, L.C., a Virginia limited liability company, KeyBank National Association, as Agent, and the Lenders. Terms not otherwise defined herein are as defined in the Guaranty. 
 Guarantor desires to make Distributions as permitted by the Guaranty and is submitting evidence of compliance with conditions for making of Distributions
by Guarantor set forth in Section 23 thereof. The undersigned is providing the attached information to demonstrate compliance with the covenants for making of Distributions by Guarantor as of the date hereof. Such calculations have been
prepared in accordance with the Guaranty. The undersigned officer is the chief financial officer or chief accounting officer of Guarantor. 
 The undersigned representative has caused the provisions of the Loan Documents to be reviewed and has no knowledge of any Default or Event of Default. Additionally, no Default or Event of Default would exist after giving effect to such
Distributions by Guarantor. 
 IN WITNESS WHEREOF, the undersigned have duly executed this Compliance Certificate this
     day of             , 200    . 
  

			
	 COMSTOCK HOMEBUILDING COMPANIES, INC., a Delaware corporation

		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

	
	(CORPORATE SEAL)

  

 17 

 APPENDIX TO COMPLIANCE CERTIFICATE 
  

 18ex10_1.htm

    EXHIBIT
A

    

    

    

    

    2008
STOCK OPTION PLAN OF

    

    

    

    General
Automotive Company

    

    A
NV Corporation

    

    

    

    

    March
20, 2008

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    STOCK
OPTION PLAN OF

    General
Automotive Company

    

    TABLE
OF CONTENTS

     

    
    

     

    
      	 	
              Page
      No.

            
	
              PURPOSE
      OF THE PLAN

            	
              1

            
	 	 
	
              TYPES
      OF STOCK OPTIONS 

            	
              1

            
	 	 
	DEFINITIONS	
              1

            
	 	 
	ADMINISTRATION OF
      THE PLAN	
              2

            
	 	 
	
              GRANT
      OF OPTIONS 

            	
              3

            
	 	 
	
              STOCK
      SUBJECT TO PLAN  

            	
              4

            
	 	 
	TERMS AND CONDITIONS
      OF OPTIONS	
              4

            
	 	 
	TERMINATION OR
      AMENDMENT OF THE PLAN	
              9

            
	 	 
	
              INDEMNIFICATION
      

            	
              9

            
	 	 
	
              EFFECTIVE
      DATE AND TERM OF THE PLAN

            	
              10

            
	 	 
	
              MISCELLANEOUS
      

            	
              10

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    STOCK
OPTION PLAN OF

    General
Automotive Company

    

    A
NV Corporation

    

    

    

    
      	
              1.  

            	
              PURPOSE
      OF THE PLAN

            

    

    

    The
purpose of this Plan is to strengthen General Automotive Company (hereinafter the
“Company”) by providing incentive stock options as a means to attract, retain
and motivate key corporate personnel, through ownership of stock of the Company,
and to attract individuals of outstanding ability to render services to and
enter the employment of the Company or its subsidiaries.

    

    
      	
              2.  

            	
              TYPES
      OF STOCK OPTIONS

            

    

    

    There
shall be two types of Stock Options (referred to herein as "Options" without
distinction between such different types) that may be granted under this Plan:
(1) Options intended to qualify as Incentive Stock Options under Section 422 of
the Internal Revenue Code (“Qualified Stock Options”), and (2) Options not
specifically authorized or qualified for favorable income tax treatment under
the Internal Revenue Code (“Non-Qualified Stock Options”).

    

    
      	
              3.  

            	
              DEFINITIONS

            

    

    

    The
following definitions are applicable to the Plan:

    

    
      	
              (1)  

            	
              Board.  The
      Board of Directors of the Company.

            

    

    

    
      	
              (2)  

            	
              Code.  The
      Internal Revenue Code of 1986, as amended from time to
    time.

            

    

    

    
      	
              (3)  

            	
              Common
      Stock. The shares of Common Stock of the
  Company.

            

    

    

    
      	
              (4)  

            	
              Company.
      General Automotive Company, a NV
corporation.

            

    

    

    
      	
              (5)  

            	
              Consultant.
      An individual or entity that renders professional services to the Company
      as an independent contractor and is not an employee or under the direct
      supervision and control of the
Company.

            

    

    

    
      	
              (6)  

            	
              Disabled
      or Disability.  For the purposes of Section 7, a disability of
      the type defined in Section 22(e)(3) of the Code. The determination of
      whether an individual is Disabled or has a Disability is determined under
      procedures established by the Plan Administrator for purposes of the
      Plan.

            

    

    

    
      	
              (7)  

            	
              Fair
      Market Value. For purposes of the Plan, the “fair market value" per share
      of Common Stock of the Company at any date shall be: (a) if the Common
      Stock is listed on an established stock exchange or exchanges
    

            

    

     

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    
      
        	
                  

              	
                or the NASDAQ
      National Market, the closing price per share on the last trading day
      immediately preceding such date on the principal exchange on which it is
      traded or as reported by NASDAQ; or (b) if the Common Stock is not then
      listed on an exchange or the NASDAQ National Market, but is quoted on the
      NASDAQ Small Cap Market, the NASDAQ electronic bulletin board or the
      National Quotation Bureau pink sheets, the average of the closing bid and
      asked prices per share for the Common Stock as quoted by NASDAQ or the
      National Quotation Bureau, as the case may be, on the last trading day
      immediately preceding such date; or (c) if the Common Stock is not then
      listed on an exchange or the NASDAQ National Market, or quoted by NASDAQ
      or the National Quotation Bureau, an amount determined in good faith by
      the Plan Administrator.

              

      

       

    

    
      	
              (8)  

            	
              Incentive
      Stock Option. Any Stock Option intended to be and designated as an
      "incentive stock option" within the meaning of Section 422 of the
      Code.

            

    

    

    
      	
              (9)  

            	
              Non-Qualified
      Stock Option. Any Stock Option
      that is not an Incentive Stock
Option.

            

    

    

    
      	
              (10)  

            	
              Optionee.
      The recipient of a Stock Option.

            

    

    

    
      	
              (11)  

            	
              Plan
      Administrator. The board or the Committee designated by the Board pursuant
      to Section 4 to administer and interpret the terms of the
      Plan.

            

    

    

    
      	
              (12)  

            	
              Stock
      Option. Any option to purchase shares of Common Stock granted pursuant to
      Section 7.

            

    

    

    
      	
              4.  

            	
              ADMINISTRATION
      OF THE PLAN

            

    

    

    This Plan
shall be administered by the Board of Directors or by a Compensation Committee
(hereinafter the “Committee”) composed of members selected by, and serving at
the pleasure of, the Board of Directors (the “Plan Administrator”). Subject to
the provisions of the Plan, the Plan Administrator shall have authority to
construe and interpret the Plan, to promulgate, amend, and rescind rules and
regulations relating to its administration, to select, from time to time, among
the eligible employees and non-employee consultants (as determined pursuant to
Section 5) of the Company and its subsidiaries those employees and consultants
to whom Stock Options will be granted, to determine the duration and manner of
the grant of the Options, to determine the exercise price, the number of shares
and other terms covered by the Stock Options, to determine the duration and
purpose of leaves of absence which may be granted to Stock Option holders
without constituting termination of their employment for purposes of the Plan,
and to make all of the determinations necessary or advisable for administration
of the Plan. The interpretation and construction by the Plan Administrator of
any provision of the Plan, or of any agreement issued and executed under the
Plan, shall be final and binding upon all parties. No member of the Committee or
Board shall be liable for any action or determination undertaken or made in good
faith with respect to the Plan or any agreement executed pursuant to the
Plan.

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    If a
Committee is established, all of the members of the Committee shall be persons
who, in the opinion of counsel to the Company, are outside directors and
"non-employee directors" within the meaning of Rule 16b-3(b)(3)(i) promulgated
by the Securities and Exchange Commission.  ­From time to time,
the Board may increase or decrease the size of the Committee, and add additional
members to, or remove members from, the Committee. The Committee shall act
pursuant to a majority vote, or the written consent of a majority of its
members, and minutes shall be kept of all of its meetings and copies thereof
shall be provided to the Board. Subject to the provisions of the Plan and the
directions of the Board, the Committee may establish and follow such rules and
regulations for the conduct of its business as it may deem
advisable.

    

    At the
option of the Board, the entire Board of Directors of the Company may act as the
Plan Administrator during such periods of time as all members of the Board are
“outside directors” as defined in Treas. Regs. §1.162-27(e)(3), except that this
requirement shall not apply during any period of time prior to the date the
Company's Common Stock becomes registered pursuant to Section 12 of the
Securities Exchange Act of 1934, as amended.

    

    
      	
              5.  

            	
              GRANT
      OF OPTIONS

            

    

    

    The
Company is hereby authorized to grant Incentive Stock Options as defined in
section 422 of the Code to any employee or director (including any officer or
director who is an employee) of the Company, or of any of its subsidiaries;
provided, however, that no person who owns stock possessing more than 10% of the
total combined voting power of all classes of stock of the Company, or any of
its parent or subsidiary corporations, shall be eligible to receive an Incentive
Stock Option under the Plan unless at the time such Incentive Stock Option is
granted the Option price is at least 110% of the fair market value of the shares
subject to the Option, and such Option by its terms is not exercisable after the
expiration of five years from the date such Option is granted.

    

    An
employee may receive more than one Option under the Plan. Non-Employee Directors
shall be eligible to receive Non-­Qualified Stock Options in the discretion
of the Plan Administrator.  In addition, Non­-Qualified Stock
Options may be granted to employees, officers, directors and consultants who are
selected by the Plan Administrator.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    
      	
              6.  

            	
              STOCK
      SUBJECT TO PLAN

            

    

    

    The stock
available for grant of Options under the Plan shall be shares of the Company's
authorized but unissued, or reacquired, Common Stock. Subject to adjustment as
provided herein, the maximum aggregate number of shares of the Company’s common
stock that may be optioned and sold under the Plan is fifteen percent (15%) of
the issued and outstanding shares of the Company’s Common Stock on the date this
Plan is adopted by the Company’s Board of Directors.  The maximum
aggregate number of shares of the Company’s Common Stock that may be optioned
and sold under the Plan will be increased effective the first day of each of the
Company’s fiscal quarters, by an amount equal to the lesser of:

    

    
      	
              (1)  

            	
              The
      number of shares which is equal to 15% of the outstanding shares of the
      Common Stock on the first day of the applicable fiscal quarter, less the
      number of shares of Common Stock which may be optioned and sold under the
      Plan prior to the first day of the applicable fiscal quarter;
      and

            

    

    

    
      	
              (2)  

            	
              a
      lesser number of shares of Common Stock determined by the board of
      directors of the Company.

            

    

    

    The
maximum number of shares for which an Option may be granted to any Optionee
during any calendar year shall not exceed three percent (3%) of the issued and
outstanding common shares of the Company.  In the event that any
outstanding Option under the Plan for any reason expires or is terminated, the
shares of Common Stock allocable to the unexercised portion of the Option shall
again be available for Options under the Plan as if no Option had been granted
with regard to such shares.

    

    
      	
              7.  

            	
              TERMS
      AND CONDITIONS OF OPTIONS

            

    

    

    Options
granted under the Plan shall be evidenced by agreements (which need not be
identical) in such form and containing such provisions that are consistent with
the Plan as the Plan Administrator shall from time to time approve. Such
agreements may incorporate all or any of the terms hereof by reference and shall
comply with and be subject to the following terms and conditions:

    

    
      	
              (1)  

            	
              Number
      of Shares. Each Option agreement shall specify the number of shares
      subject to the Option.

            

    

    

    
      	
              (2)  

            	
              Option
      Price. The purchase price for the shares subject to any Option shall be
      determined by the Plan Administrator at the time of the grant, but shall
      not be less than 85% of Fair Market Value per share. Anything to the
      contrary notwithstanding, the purchase price for the shares subject to any
      Incentive Stock Option shall not be less than 100% of the Fair Market
      Value of the shares of Common Stock of the Company on the date the Stock
      Option is granted. In the case of any Incentive Stock Option granted to an
      employee who owns stock possessing more than 10% of the total combined
      voting power of all classes of stock of the Company, or any of its parent
      or subsidiary corporations, the Option price shall not be less
      

            

    

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    
    

     

    
      	 	than 110% of the
      Fair Market Value per share of the Common Stock of the Company on the date
      the Option is granted.  For purposes of determining the stock
      ownership of an employee, the attribution rules of Section 424(d) of the
      Code shall apply.

    

     

    
      	
              (3)  

            	
              Notice
      and Payment. Any exercisable portion of a Stock Option may be exercised
      only by: (a) delivery of a written notice to the Company prior to the time
      when such Stock Option becomes unexercisable herein, stating the number of
      shares bring purchased and complying with all applicable rules established
      by the Plan Administrator; (b) payment in full of the exercise price of
      such Option by, as applicable, delivery of: (i) cash or check for an
      amount equal to the aggregate Stock Option exercise price for the number
      of shares being purchased, (ii) in the discretion of the Plan
      Administrator, upon such terms as the Plan Administrator shall approve, a
      copy of instructions to a broker directing such broker to sell the Common
      Stock for which such Option is exercised, and to remit to the Company the
      aggregate exercise price of such Stock Option (a “cashless exercise”), or
      (iii) in the discretion of the Plan Administrator, upon such terms as the
      Plan Administrator shall approve, shares of the Company's Common Stock
      owned by the Optionee, duly endorsed for transfer to the Company, with a
      Fair Market Value on the date of delivery equal to the aggregate purchase
      price of the shares with respect to which such Stock Option or portion is
      thereby exercised (a "stock-for-stock exercise"); (c) payment of the
      amount of tax required to be withheld (if any) by the Company, or any
      parent or subsidiary corporation as a result of the exercise of a Stock
      Option.  At the discretion of the Plan Administrator, upon such
      terms as the Plan Administrator shall approve, the Optionee may pay all or
      a portion of the tax withholding by: (i) cash or check payable to the
      Company, (ii) a cashless exercise, (iii) a stock-for-stock exercise, or
      (iv) a combination of one or more of the foregoing payment methods; and
      (d) delivery of a written notice to the Company requesting that the
      Company direct the transfer agent to issue to the Optionee (or his
      designee) a certificate for the number of shares of Common Stock for which
      the Option was exercised or, in the case of a cashless exercise, for any
      shares that were not sold in the cashless exercise. Notwithstanding the
      foregoing, the Company, in its sole discretion, may extend and maintain,
      or arrange for the extension and maintenance of credit to any Optionee to
      finance the Optionee's purchase of shares pursuant to the exercise of any
      Stock Option, on such terms as may be approved by the Plan Administrator,
      subject to applicable regulations of the Federal Reserve Board and any
      other laws or regulations in effect at the time such credit is
      extended.

            

    

    

    
      	
              (4)  

            	
              Terms
      of Option. No Option shall be exercisable after the expiration of the
      earliest of: (a) ten years after the date the Option is granted, (b) three
      months after the date the Optionee's employment with the Company and its
      subsidiaries terminates, or a Non-Employee Director or Consultant ceases
      to provide services to the Company, if such termination or cessation is
      for any reason other than Disability or death, (c) one year
    

            

    

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    
      	 	 after the
      date the Optionee's employment with the Company, and its subsidiaries,
      terminates, or a Non­-Employee Director or Consultant ceases to
      provide services to the Company, if such termination or cessation is a
      result of death or Disability; provided, however, that the Option
      agreement for any Option may provide for shorter periods in each of the
      foregoing instances. In the case of an Incentive Stock Option granted to
      an employee who owns stock possessing more than 10% of the total combined
      voting power of all classes of stock of the Company, or any of its parent
      or subsidiary corporations, the term set forth in (a) above shall not be
      more than five years after the date the Option is
      granted.

    

     

    
      	
              (5)  

            	
              Exercise
      of an Option. No Option shall be exercisable during the lifetime of an
      Optionee by any person other than the Optionee. Subject to the foregoing,
      the Plan Administrator shall have the power to set the time or times
      within which each Option shall vest or be exercisable and to accelerate
      the time or times of vesting and exercise; provided, however each Option
      shall provide the right to exercise at the rate of at least 20% per year
      over five years from the date the Option is granted.  Unless
      otherwise provided by the Plan Administrator, each Option will not be
      subject to any vesting requirements. To the extent that an Optionee has
      the right to exercise an Option and purchase shares pursuant hereto, the
      Option may be exercised from time to time by written notice to the
      Company, stating the number of shares being purchased and accompanied by
      payment in full of the exercise price for such
  shares.

            

    

    

    
      	
              (6)  

            	
              No
      Transfer of Option. No Option shall be transferable by an Optionee
      otherwise than by will or the laws of descent and
      distribution.

            

    

     

    
      	
                                       
      (7)

            	
              Limit
      on Incentive Stock Option. The aggregate Fair Market Value (determined at
      the time the Option is granted) of the stock with respect to which an
      Incentive Stock Option is granted and exercisable for the first time by an
      Optionee during any calendar year (under all Incentive Stock Option plans
      of the Company and its subsidiaries) shall not exceed
      $100,000.  To the extent the aggregate Fair Market Value
      (determined at the time the Stock Option is granted) of the Common Stock
      with respect to which Incentive Stock Options are exercisable for the
      first time by an Optionee during any calendar year (under all Incentive
      Stock Option plans of the Company and any parent or subsidiary
      corporations) exceeds $100,000, such Stock Options shall be treated as
      Non­-Qualified Stock Options.  The determination of which
      Stock Options shall be treated as Non-­Qualified Stock Options shall
      be made by taking Stock Options into account in the Order in which they
      were granted.

            

    

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    
    

     

    
      	                          
      (8) 	
              Restriction
      on Issuance of Shares.  The issuance of Options and shares shall
      be subject to compliance with all of the applicable requirements of law
      with respect to the issuance and sale of securities, including, without
      limitation, any required qualification under state securities
      laws.  If an Optionee acquires shares of Common Stock pursuant
      to the exercise of an Option, the Plan Administrator, in its sole
      discretion, may require as a condition of issuance of shares covered by
      the Option that the shares of Common Stock be subject to restrictions on
      transfer. The Company may place a legend on the share certificates
      reflecting the fact that they are subject to restrictions on transfer
      pursuant to the terms of this Section.  In addition, the
      Optionee may be required to execute a buy-sell agreement in favor of the
      Company or its designee with respect to all or any of the shares so
      acquired. In such event, the terms of any such agreement shall apply to
      the optioned shares.

            
	 	 
	                          
      (9)	
              Investment
      Representation. Any Optionee may be required, as a condition of issuance
      of shares covered by his or her Option, to represent that the shares to be
      acquired pursuant to exercise will be acquired for investment and without
      a view toward distribution thereof, and in such case, the Company may
      place a legend on the share certificate(s) evidencing the fact that they
      were acquired for investment and cannot be sold or transferred unless
      registered under the Securities Act of 1933, as amended, or unless counsel
      for the Company is satisfied that the circumstances of the proposed
      transfer do not require such registration.

            
	 	 
	                        
      (10)	
              Rights
      as a Shareholder or Employee.  An Optionee or transferee of an
      Option shall have no right as a stockholder of the Company with respect to
      any shares covered by any Option until the date of the issuance of a share
      certificate for such shares.  No adjustment shall be made for
      dividends (Ordinary or extraordinary, whether cash, securities, or other
      property), or distributions or other rights for which the record date is
      prior to the date such share certificate is issued, except as provided in
      paragraph (13) below. Nothing in the Plan or in any Option agreement shall
      confer upon any employee any right to continue in the employ of the
      Company or any of its subsidiaries or interfere in any way with any right
      of the Company or any subsidiary to terminate the Optionee's employment at
      any time.

            
	 	 
	                        
      (11) 	
              No
      Fractional Shares. In no event shall the Company be required to issue
      fractional shares upon the exercise of an Option.

            
	 	 
	                        
      (12) 	
              Exercise
      in the Event of Death. In the event of the death of the Optionee, any
      Option or unexercised portion thereof granted to the Optionee, to the
      extent exercisable by him or her on the date of death, may be exercised by
      the Optionee's personal representatives, heirs, or legatees subject to the
      provisions of paragraph (4) above.

            

    

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    
      	                        
      (13) 	
              Recapitalization
      or Reorganization of the Company.  Except as otherwise provided
      herein, appropriate and proportionate adjustments shall be made (1) in the
      number and class of shares subject to the Plan, (2) to the Option rights
      granted under the Plan, and (3) in the exercise price of such Option
      rights, in the event that the number of shares of Common Stock of the
      Company are increased or decreased as a result of a stock dividend (but
      only on Common Stock), stock split, reverse stock split, recapitalization,
      reorganization, merger, consolidation, separation, or like change in the
      corporate or capital structure of the Company. In the event there shall be
      any other change in the number or kind of the outstanding shares of Common
      Stock of the Company, or any stock or other securities into which such
      common stock shall have been changed, or for which it shall have been
      exchanged, whether by reason of a complete liquidation of the Company or a
      merger, reorganization, or consolidation with any other corporation in
      which the Company is not the surviving corporation, or the Company becomes
      a wholly-owned subsidiary of another corporation, then if the Plan
      Administrator shall, in its sole discretion, determine that such change
      equitably requires an adjustment to shares of Common Stock currently
      subject to Options under the Plan, or to prices or terms of outstanding
      Options, such adjustment shall be made in accordance with such
      determination.

               

              
                To
      the extent that the foregoing adjustments relate to stock or securities of
      the Company, such adjustment shall be made by the Plan Administrator, the
      determination of which in that respect shall be final, binding, and
      conclusive. No right to purchase fractional shares shall result from any
      adjustment of Options pursuant to this Section. In case of any such
      adjustment, the shares subject to the Option shall he rounded down to the
      nearest whole share. Notice of any adjustment shall be given by the
      Company to each Optionee whose Options shall have been so adjusted and
      such adjustment (whether or not notice is given) shall be effective and
      binding for all purposes of the Plan.

                

                In
      the event of a complete liquidation of the Company or a merger,
      reorganization, or consolidation of the Company with any other corporation
      in which the Company is not the surviving corporation, or the Company
      becomes a wholly-owned subsidiary of another corporation, any unexercised
      Options granted under the Plan shall be deemed cancelled unless the
      surviving corporation in any such merger, reorganization, or consolidation
      elects to assume the Options under the Plan or to issue substitute Options
      in place thereof; provided, however, that notwithstanding the foregoing,
      if such Options would be cancelled in accordance with the foregoing, the
      Optionee shall have the right exercisable during a ten-day period ending
      on the fifth day prior to such liquidation, merger, or consolidation to
      exercise such Option in whole or in part without regard to any installment
      exercise provisions in the Option
  agreement.

              

            

    

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    
      	                        
      (14)	
              Modification,
      Extension and Renewal of Options.  Subject to the terms and
      conditions and within the limitations of the Plan, the Plan Administrator
      may modify, extend or renew outstanding options granted under the Plan and
      accept the surrender of outstanding Options (to the extent not theretofore
      exercised).  The Plan Administrator shall not, however, without
      the approval of the Board, modify any outstanding Incentive Stock Option
      in any manner that would cause the Option not to qualify as an Incentive
      Stock Option within the meaning of Section 422 of the Code.
      Notwithstanding the foregoing, no modification of an Option shall, without
      the consent of the Optionee, alter or impair any rights of the Optionee
      under the Option.

            
	 	 
	
                                       (15)

            	
              Other
      Provisions. Each Option may contain such other terms, provisions, and
      conditions not inconsistent with the Plan as may be determined by the Plan
      Administrator.

            

    

     

    
      	
              8.  

            	
              TERMINATION
      OR AMENDMENT OF THE PLAN

            

    

    

    The Board
may at any time terminate or amend the Plan; provided that, without approval of
the holders of a majority of the shares of Common Stock of the Company
represented and voting at a duly held meeting at which a quorum is present or
the written consent of a majority of the outstanding shares of Common Stock,
there shall be (except by operation of the provisions of sections (6) or (7)(13)
above) no increase in the total number of shares covered by the Plan, no change
in the class of persons eligible to receive options granted under the Plan, no
reduction in the limits for determination of the minimum exercise price of
Options granted under the Plan, and no extension of the limits for determination
of the latest date upon which Options may be exercised; and provided further
that, without the consent of the Optionee, no amendment may adversely affect any
then outstanding Option or any unexercised portion thereof.

    

    
      	
              9.  

            	
              INDEMNIFICATION

            

    

    

    In
addition to such other rights of indemnification as they may have as members of
the Board Committee that administers the Plan, the members of the Plan
Administrator shall be indemnified by the Company against reasonable expense,
including attorney's fees, actually and necessarily incurred in connection with
the defense of any action, suit or proceeding, or in connection with any appeal
therein to which they, or any of them, may be a party by reason of any action
taken or failure to act under or in connection with the Plan or any Option
granted thereunder, and against any and all amounts paid by them in settlement
thereof (provided such settlement is approved by independent legal counsel
selected by the Company).  In addition, such members shall be
indemnified by the Company for any amount paid by them in satisfaction of a
judgment in any action, suit, or proceeding, except in relation to matters as to
which it shall have been adjudged that such member is liable for negligence or
misconduct in the performance of his or her duties, provided however that within
sixty (60) days after institution of any such action, suit, or proceeding, the
member shall in writing offer the Company the opportunity, at its own expense,
to handle and defend the same.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    
      	
              10.  

            	
              EFFECTIVE
      DATE AND TERM OF THE PLAN

            

    

    

    This Plan
shall become effective on the date of adoption by the Company’s Board of
Directors. Unless sooner terminated by the Board in its sole discretion, this
Plan will expire five calendar years from the date of its adoption.

    

    
      	
              11.  

            	
              MISCELLANEOUS

            

    

    

    Any
dispute arising out of this Plan or any provision hereof, or of any agreement
issued or executed under the Plan shall be resolved by the Plan Administrator,
and the decision of the Plan Administrator shall be final and binding upon all
parties.

    

    IN WITNESS WHEREOF, the
Company by its duly authorized officer, has caused this Plan to be executed as
of the 20th day of March, 2008.

     

    General
Automotive Company

     

    
    

     

    
      	 	/s/Joseph
      DeFrancisci 
	
              By:

            	
              Joseph
      DeFrancisci

            
	
              Its:

            	President

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