Document:

EX-10.5

 Exhibit 10.5 
  

 
  

			
	October 17, 2013	  	VIA E-MAIL

 Employee Name and Address 

Re: Salary Deferral Opportunity for October 2013 

Dear [Employee Name]: 
 As you know, we are
working on a strategic partner transaction with JXTC in China that would involve the sale of our interest in the Cameroon project. We are making progress, but it would take additional time to close and is subject to a variety of conditions and
approvals. 
 We are also working on possible transactions involving our other projects, as well as raising additional financing for the
company. 
 Under the circumstances, we are seeking to reduce the company’s expenditures.

As part of that effort, we are presenting to you and all other salaried employees a VOLUNTARY opportunity with respect to the October payroll,
as follows: 
 1. You may, if you choose to do so, defer one-half of your base salary compensation for the month of October 2013. If you
desire to defer more than this up to your full base salary compensation for October 2013, you are also welcome to do so (but in all events you must receive on a current basis enough of your base salary to cover mandatory tax and other withholdings
as estimated by the company in its sole discretion on a good-faith basis). 
 2. Any amount that you defer would be payable to you, along
with an additional payment equal to 200% of the amount deferred (the “Deferral Inducement Amount”), on the earlier of the following: (a) receipt of proceeds from JXTC from the sale of our interest in the Cameroon project,
(b) receipt of proceeds from a significant financing in an amount expected to be sufficient to cover the company’s cash requirement for at least 6 months, or (c) March 14, 2014. We presently anticipate that the JXTC sale
event, or any financing event, if they occur, may not be for a number of months. 
 I want to emphasize that the deferral opportunity
described above (the “Deferral Opportunity”) is subject to your acceptance, and is entirely VOLUNTARY.

 If you desire to accept the Deferral Opportunity, please complete the attached Salary Deferral
Election and return it to Shelia Short by 5:00 p.m. (MT) Thursday, October 24, 2013. If you do not return the Salary Deferral Election to Shelia by that time, we will assume that you decided to not participate in the Deferral Opportunity.

 Thank you very much for your consideration. 
  

	
	Best regards,
	
	  

	Michael Mason
	CEO

 Attachment: Salary Deferral Election Form 

  
 2 

 Salary Deferral Election 

I,             (print your name), hereby elect to take advantage of the
“Deferral Opportunity” set forth in the accompanying letter sent to me by Geovic Mining Corp. (the “Company”), dated October 17, 2013 (the “Letter”). My deferral election is as follows: 

1. I hereby elect to defer             % (print clearly the whole percentage of October 2013 salary
you wish to defer) of my base salary for the month of October 2013 (the “Deferral Amount”). I understand that the Deferral Amount can be no less than 50% of my base salary for the month and may be up to the full amount of my base
salary for the month, but that in all events I will receive on a current basis enough of my base salary for October 2013 to cover my mandatory tax and other withholdings as estimated by the Company in its sole discretion on a good-faith basis. 

2. I understand and agree that the Deferral Amount and the Deferral Inducement Amount (as defined in the Letter) would be paid at the time or times set forth
in the Letter. 
 3. I have read the Letter and reviewed the Deferral Opportunity in its entirety. I have been given the opportunity to consult with tax,
legal, and financial advisors prior to making this deferral election. 
 4. I am making this base salary deferral on a VOLUNTARY basis and of my own free
will. The Company has not pressured me in any way to make or refrain from making this deferral election. 
 5. I understand that the Deferral Amount and the
Deferral Inducement Amount will be paid from the general assets of the Company, and no cash or other property will be held in trust or set aside for me in any way. I understand further that I will have no special claim to any of the Company’s
assets as a result of this deferral election. My right to receive the amount I defer and to receive the Deferral Inducement Amount shall be no greater than a general, unsecured creditor of the Company, and will be wholly dependent on the
Company’s ability to pay such amounts as and when they come due. 
 6. I understand and agree that the Letter and this Salary Deferral Election
constitute an amendment to any employment agreement, offer letter, or similar agreement that I may have with the Company, and that the terms and conditions of the Letter and of this Salary Deferral Election supersede any inconsistent terms of such
other agreements. 
 7. I understand and agree that all other terms and conditions of any employment agreement, offer letter, or similar agreement that I may
have with the Company shall remain in full force and effect. 
 8. I understand and agree that the Letter, the Deferral Opportunity, and this Salary Deferral
Election are intended to be exempt from the requirements of the Employee Retirement Income Security Act of 1974, as amended, as well as the provisions of Section 409A of the Internal Revenue Code of 1986, as amended. I understand and agree that
I am solely responsible for any tax consequences that may apply to me based on the arrangement created by the Letter, the Deferral Opportunity, and this Salary Deferral Election. 

  
 - 1 - 

 This Salary Deferral Election is hereby executed by the Employee identified below, on the date
set forth below. 
  

			
	  

	Employee Signature
	
	 
	Print Employee Name
	
	 
	Date
	
	Accepted and agreed to by the Company:
	
	Geovic Mining Corp.
		
	By:	 	  

		
	Title:	 	  

		
	Date:	 	  

  
 - 2 -EX-10.82

 Exhibit 10.82 

LOAN AGREEMENT 

THIS LOAN AGREEMENT (as amended, modified or supplemented from time to time, “Agreement”), dated as of the     
day of September, 2013, by and between (i) EAGLEBANK (the “Lender”), and (ii) COMSTOCK MAXWELL SQUARE, L.C., a Virginia limited liability company (the “Borrower”), recites and provides: 

RECITALS: 
 R-1. The Borrower has
entered into a contract to acquire a certain development site consisting of 2.12 subdivided acres located in the Southwest quadrant of Maxwell Avenue and 5th Street, City of Frederick, Maryland,
but excluding the four existing units known as Units 1-4, as more particularly described on Exhibit A attached hereto (the “Property”), on which the Borrower intends to develop and construct 45 townhouse units (singularly, a
“Lot” or, as improved, a “Unit” and if referring to more than one, “Lots” or, as improved, “Units”), and which has been or will be subjected, in whole or in part subject to expansion, to a condominium regime
known as Maxwell Square Condominium. 
 R-2. Subject to the terms of this Agreement, the Lender agrees to make an acquisition and
development loan (the “Development Loan”) to the Borrower, as more particularly described in Section One below, for the purpose of financing the acquisition and the Development (as hereinafter defined) of the Property. 

R-3. Subject to the terms of this Agreement, the Lender also agrees to make a revolving construction loan (the “Construction Loan”)
to the Borrower, as more particularly described in Section Two below, for the purpose of financing the construction of the Units. 
 R-4.
The Lender and the Borrower agree that the Development Loan and the Construction Loan (together, the “Loans”) will be made and advanced upon and subject to the terms, covenants and conditions set forth in this Agreement. 

R-5. Subject to the terms of this Agreement, the Lender also agrees to make a facility (the “LC Facility”) available to the Borrower
under which the Lender agrees to issue letters of credit (singularly, a “Letter of Credit” and if referring to more than one, “Letters of Credit”) for the account of the Borrower (any draw on any Letter of Credit shall be
referred to as an “LC Advance”), as more particularly described in Section Three below, for the purpose of securing the performance by the Borrower of public improvement requirements pursuant to agreements with the City of Frederick,
Maryland or other governmental entities. 
 R-6. The Lender and the Borrower agree that the LC Facility shall be made upon and subject to
the terms, covenants and conditions set forth in this Agreement. 

  
 1 

 AGREEMENT 

ACCORDINGLY, for and in consideration of the foregoing Recitals which are a material part of this Agreement and not mere prefatory language,
and of the mutual covenants and conditions set forth in this Agreement, and for other good and valuable consideration the receipt and sufficiency of which are hereby acknowledged, the Lender and the Borrower agree as follows: 

SECTION ONE 
 THE DEVELOPMENT
LOAN 
 1.1 Amount. The maximum principal amount that may be advanced under the Development Loan shall not exceed the lesser of
(i) Two Million One Hundred Forty Thousand and No/100 Dollars ($2,140,000.00), or (ii) fifty-five percent (55%) of the cost of acquisition of the Property and the Development thereof in accordance with a budget approved by the Lender,
or (iii) sixty percent (60%) of the discounted (“When Developed”) (finished lots) value of the Property pursuant to the Appraisal (hereinafter defined) and any appraisals which may be engaged by the Lender from time to time
subsequent to the date hereof. The Development Loan will be evidenced by a Development Loan Promissory Note made by the Borrower payable to the order of the Lender (as the same may be amended, renewed, restated, supplemented or substituted from time
to time, the “Development Loan Note”) which shall be governed by Maryland law. 
 1.2 Purpose. The Borrower will use the
Development Loan proceeds as follows: (i) up to One Million Seven Hundred Ninety Thousand and No/100 Dollars ($1,790,000.00) (the “Acquisition Advance”) shall be applied to costs (including closing costs) of acquisition of the
Property; and (ii) up to Three Hundred Fifty Thousand and No/100 Dollars ($350,000.00) (the “Development Advance” or, if more than one, “Development Advances”) shall be used for the Development of the Property in accordance
with a Development Budget that shall have been approved by the Lender in advance and in accordance with plans and specifications to be submitted to and approved by the Lender, and with advances to be made as the work progresses, all as set forth in
this Agreement. For purposes of this Agreement, the term “Development” shall mean, generally, (a) lot clearing and rough grading; (b) provision of storm drainage structures and facilities, sediment control devices, base paving of
streets, curbs and gutters; (c) providing sewer and water distribution systems and erecting temporary street signs; (d) provision of underground electric and gas utility lines, cable television easements and easements for private utility
companies to install telephone lines, pedestals and vaults adjacent to Lot lines; and (e) other subdivision improvements as required by governmental authorities in order for use and occupancy permits to issue. The Development Budget for
purposes of the Development Advance and portions thereof shall include the foregoing Development costs together with real estate taxes, an interest reserve to be withheld from loan proceeds and applied monthly to payment of accrued interest as
hereinafter set forth, and other expenses approved by the Lender. Certain other costs normally considered part of development costs shall be deferred and paid for by the Borrower out of its own funds, including by way of example and not limitation,
final paving of streets, site amenities, landscaping and erosion control. 

  
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 1.3 Development. All of the Lots shall be developed simultaneously, and the Development
Loan shall be allocated for costs among all of the Lots for all acquisition and Development costs. 
 1.4 Development Loan Interest
Reserve. From the proceeds of the Development Loan, One Hundred Fifty Thousand and No/100 Dollars ($150,000.00) shall not be disbursed but shall be reserved by the Lender for the payment of interest on the Development Loan (the “Interest
Reserve”) until such reserve is exhausted. Notwithstanding the foregoing or any provision of the Loan Documents to the contrary, the Lender shall not be obligated to make any disbursements from the Interest Reserve if any Event of Default shall
have occurred (including without limitation any failure to meet the Sales and Curtailment Schedule set forth below which failure is not cured by payment of the amount necessary to satisfy the curtailment component thereof), and further,
notwithstanding the foregoing or any provision of any of the Loan Documents to the contrary, nothing contained herein shall be deemed to release or in any way to relieve the Borrower from its obligation under the Development Loan Note to pay
interest as provided in the Development Loan Note. Each disbursement from the Interest Reserve shall constitute a disbursement of principal of the Development Loan and shall be added to the then outstanding principal balance of the Development Loan.

 1.5 Development Loan Real Estate Tax Reserve. From the proceeds of the Development Loan, One Hundred Thousand and No/100 Dollars
($100,000.00) shall not be disbursed but shall be reserved by the Lender (the “Taxes Reserve”) for the payment of real estate taxes and other governmental impositions against the Property (collectively, “Taxes”) until such
reserve is exhausted. Notwithstanding the foregoing or any provision of the Loan Documents to the contrary, the Lender shall not be obligated to make any disbursements from the Taxes Reserve if any Event of Default shall have occurred (including
without limitation any failure to meet the Sales and Curtailment Schedule set forth below which failure is not cured by payment of the amount necessary to satisfy the curtailment component thereof), and further, notwithstanding the foregoing or any
provision of any of the Loan Documents to the contrary, nothing contained herein shall be deemed to release or in any way to relieve the Borrower from its obligation under the Loan Documents to pay Taxes as they become due. Each disbursement from
the Taxes Reserve shall constitute a disbursement of principal of the Development Loan and shall be added to the then outstanding principal balance of the Development Loan. 

1.6 Fees. The Borrower shall pay to the Lender a fee for the Development Loan in the amount of Ten Thousand Seven Hundred and No/100
Dollars ($10,700.00), which shall be paid upon closing of the Loans. The Lender acknowledges receipt from the Borrower of Twelve Thousand Five Hundred and No/100 Dollars ($12,500.00), for application to the Lender’s third-party costs and
towards the Lender’s underwriting in connection with the Loans (including without limitation fees of appraisers, consultants and legal counsel), any unused balance of which may be applied to the foregoing Development Loan fee. 

  
 3 

 SECTION TWO 

THE CONSTRUCTION LOAN 
 2.1
Amount. The maximum principal amount that may be advanced and re-advanced under the Construction Loan shall not exceed Eleven Million and No/100 Dollars ($11,000,000.00) (the “Aggregate Advances Limit”), subject to the further
limitations set forth in this Section. The maximum amount outstanding at any one time under the Construction Loan shall not exceed Three Million Three Hundred Ninety Thousand and No/100 Dollars ($3,390,000.00) (the “Maximum Outstanding
Amount”). 
 2.2 Unit Advances. Advances for each Unit shall be limited to the lesser of (i) seventy-five percent
(75%) of the “as complete” appraised value of each model type, which value shall include the pro rata portion of the Development Loan allocated by the Lender to the Unit in the amount of Forty-Seven Thousand Six Hundred and No/100
Dollars ($47,600.00) (the “Per Unit Development Component”), or (ii) the sum of the Per Unit Development Component plus one hundred percent (100%) of the hard and soft costs per model type (such hard and soft costs on average not
to exceed $242,000.00 per Unit based on a budget approved by the Lender), or (iii) a maximum of Two Hundred Eighty-Nine Thousand Six Hundred and No/100 Dollars ($289,600.00) per Unit for Development costs plus the hard and soft costs of
construction. The Construction Loan will be evidenced by a Revolving Construction Loan Promissory Note made by the Borrower payable to the order of the Lender (as the same may be amended, renewed, restated, supplemented or substituted from time to
time, the “Construction Loan Note”) which shall be governed by Maryland law. 
 2.3 Further Limitations on Advances. The
Lender shall not be required to advance at any one time for Construction of Units more than the lesser of (A) the hard and soft costs of construction of more than fourteen (14) Units, or (B) Two Hundred Forty-Two Thousand and No/100
Dollars ($242,000.00) per Unit, on average. In addition, the Lender shall advance up to One Hundred Twenty Thousand and No/100 Dollars ($120,000.00) for construction of foundations of Units 32 through 37. 

2.4 Purpose. The Borrower will use the Construction Loan proceeds for the purpose of building (the “Construction”) the Units
in accordance with budgets therefor, construction start limits, sales schedule and loan curtailment requirements, all of which shall have been approved by the Lender in advance and in accordance with plans and specifications to be submitted to and
approved by the Lender, and with advances to be made as the work progresses, all as set forth in this Agreement. The overall Construction budget shall include and be consistent with the total costs per type of Unit that are to be set forth in a
budget (the “Unit Costs Budget”), which shall be agreed by the parties prior to and as a condition of the first advance of Construction Loan proceeds. 

2.5 Construction Limitation. At no time shall the Borrower be permitted to have under Construction more than fourteen (14) Units.
Upon completion and sale of Units from time to time, and payment of the Release Payment set forth in Section 4.9 below, funds repaid pursuant to Section 4.9 below may be readvanced under the Construction Loan subject to the foregoing
limitation on the number of Units that may be under Construction at any one time, which shall again apply, and subject to the Aggregate Advances Limit. 

  
 4 

 2.6 No Interest Reserve. The Borrower shall be obligated to pay interest as provided in
the Construction Loan Note. 
 2.7 Fees. The Borrower shall pay to the Lender a fee for the Construction Loan in the amount of
Fifty-Five Thousand and No/100 Dollars ($55,000.00). The Construction Loan fee will be paid in installments each in the amount of One Thousand Two Hundred Fifty and No/100 Dollars ($1,250.00), each such installment to be paid at the time of the
first draw of Construction Loan proceeds for each Unit. 
 SECTION THREE 

THE LC FACILITY 
 3.1
Facility; Amount. The maximum amount of the LC Facility shall be Fifty-One Thousand and No/100 Dollars ($51,000.00). The Lender agrees to issue one or more letters of credit (singularly, a “Letter of Credit” and if referring to more
than one, “Letters of Credit”) to the City of Frederick, Maryland or other governmental entities for the purpose of guaranteeing the satisfactory construction of public improvements pursuant to agreements and plans and specifications which
shall have been approved by such governmental entity and by the Lender. 
 3.2 Letters of Credit. Subject to the terms and conditions
of this Agreement and all terms and conditions as the Lender may require in an Application for Irrevocable Standby Letter of Credit (“LC Application”) to be executed by the Borrower in connection with each Letter of Credit, the Lender
agrees to issue one or more Letters of Credit for the account of the Borrower in form as attached hereto as Exhibit B (the “City of Frederick Form”) or such other form as may be approved by the Lender. Each Letter of Credit issued
pursuant to the LC Facility shall be evidenced by a Non-Revolving Promissory Note in form as attached hereto as Exhibit C (“each, a “LC Note”). The following particular terms and conditions shall apply: 

(a) Any draw under a Letter of Credit shall constitute an LC Advance under the applicable LC Note, shall bear interest at the rate set forth
in the LC Note, and shall be due on demand. No principal shall be deemed to be advanced or bear interest under an LC Note solely as the result of the issuance of the Letter of Credit. 

(b) Each Letter of Credit shall have an initial expiry date, and each LC Note shall have an initial maturity date, of one (1) year from
the date of issuance of the applicable Letter of Credit, subject to annual renewal unless, with respect to any Letter of Credit issued on the City of Frederick Form, the Lender shall have given the forty-five (45) day notice of non-renewal as
contemplated therein. The Lender agrees that it will not give the first forty-five (45) day notice of non-renewal of any such City of Frederick Letter of Credit provided that (i) a renewal fee in the amount of one percent (1%) of the
amount of the Letter of Credit is paid to the Lender on or before three hundred (300) days following issuance of the Letter of Credit, and 

  
 5 

 
(ii) no Event of Default shall have occurred and remain uncured within any applicable notice and/or cure period. Following the first year of the term of any City of Frederick Letter of Credit,
the Lender shall have the right at any time to give the forty-five (45) day notice of non-renewal. Upon the Lender giving a forty-five (45) day notice of non-renewal of any City of Frederick Letter of Credit, the original Letter of Credit
must be returned to the Lender on or before the end of the forty-five (45) day notice period and the Borrower’s failure to do so by the expiration of the forty-five (45) day notice period shall constitute an Event of Default hereunder
and under the Loan Documents without further notice. Each LC Note for a City of Frederick Letter of Credit shall have a maturity date of two (2) years after the date of issuance of the Letter of Credit. All other Letters of Credit shall have an
outside expiry date, and each other LC Note shall have an outside maturity date, on the same date of Maturity (as hereinafter defined) of the Development Loan Note and the Construction Loan Note. 

(c) If any Letter of Credit remains outstanding for a period later than the date which is two (2) years following closing of the Loans
(the “Two Year Anniversary”), the Borrower’s and the Guarantor’s obligations hereunder and under the Guaranty and under all of the other Loan Documents shall remain in full force and effect with respect to any such Letter(s) of
Credit and the applicable LC Note(s), and the Lender shall not be required to release any security under the Deed of Trust or any other Loan Document until the originals of all Letters of Credit have been returned to the Lender, notwithstanding that
the Development Loan and the Construction Loan have been repaid. In addition, if any Letter of Credit remains outstanding as of the closing on the sale of the 36th Unit, the Release Payment (as
hereinafter provided in Section 4.9) shall be increased by an amount equal to one hundred twenty-five percent (125%) of the aggregate face amount of all then-outstanding Letters of Credit, and such amount shall be deposited in the LC
Escrow pursuant to Section 4.9 hereof. Provided that at the maturity of the Loans the LC Escrow contains an amount at least equal to all outstanding Letters of Credit, provided that all other obligations hereunder have been fully paid and
performed, the Guarantor’s obligations shall continue in full force and effect with respect to the LC Note(s) related to the outstanding Letter(s) of Credit and any interest that may accrue thereon, and all other Loan Documents shall be
released. 
 (d) The Borrower’s failure to pay to the Lender the amount of any draw made on any Letter of Credit, together with accrued
interest thereon, within five (5) days after the draw is made, shall constitute an Event of Default hereunder and under the Loan Documents. 

(e) The Lender shall not be responsible for, and the indebtedness, obligation and liability of the Borrower under each LC Note and the LC
Facility (the “LC Obligations”) shall not be affected by (i) the use which may be made of any Letter of Credit or for any acts or omissions of the user(s) of any Letter of Credit; (ii) the validity, accuracy, sufficiency or
genuineness of drafts, required statements of documents, even if such drafts, statements or documents should in fact prove to be in any or all respects invalid, inaccurate, insufficient, fraudulent or forged; (iii) failure of any draft to bear
any reference or adequate reference to the 

  
 6 

 
applicable Letter of Credit, or the failure of documents to accompany any instrument of negotiation, or to forward documents as required by the terms of the Letter of Credit, each of which
provisions, if contained in the Letter of Credit, it is agreed may be waived by the Lender; (iv) errors, omissions, interruptions or delays in transmission or delivery of any message, by mail, cable, telegraph, telex or otherwise;
(v) failure of the beneficiary under any Letter of Credit to present the original of the Letter of Credit and any other documents required by the Lender in connection with an attempted draw; or (vi) any consequences arising from causes
beyond the control of the Lender. 
 (f) In the event of the imposition or implementation of, or increase in, subsequent to the issuance of
any Letter of Credit, any reserve, special deposit or similar requirement on or applicable to the applicable Letter of Credit, the Borrower shall, at the Lender’s request, reimburse the Lender for all increased costs of the Lender of
maintaining the Letter of Credit. 
 (g) The Borrower agrees that the Lender may pay, as complying with the terms of any Letter of Credit,
any drafts, required statements or other documents otherwise in order which may be signed or issued by the administrator, trustee in bankruptcy, debtor in possession, assignee for the benefit of creditors, liquidator, receiver or other legal
representative of the party who is authorized under the Letter of Credit to draw or issue any drafts, required statements or other documents. 

(h) If the Lender consents to any overdrafts under any Letter of Credit or authorizes payment or acceptance of drafts drawn thereunder with
irregular accompanying documents or authorizes or consents to any departure from the terms of any Letter of Credit, this Agreement shall be fully binding upon the Borrower with respect to such overdrafts, irregularities or both and the Lender’s
rights shall be, in every respect, the same as if this Agreement and the applicable Letter of Credit expressly provided for such overdraft or irregularity or both. Such consent may be given orally, in writing, by telex or in such other manner as the
Lender may require. 
 (i) If the Lender consents to any extension of time for presentation of drafts or documents under any Letter of
Credit or in the event the Lender consents to any other modification of the terms of any Letter of Credit or of any transaction under the applicable Letter of Credit, at the request of the Borrower, this Agreement shall be binding upon the Borrower
with regard to any action taken under such modified terms and to drafts and documents presented within such extended time. Such consent may be given orally, in writing, by telex or in such other manner as the Lender may require. 

(j) The Lender shall not be obligated to issue any Letter of Credit after the date which is one hundred twenty (120) days following
closing of the Loans. 

  
 7 

 (k) Except as otherwise expressly stated in any Letter of Credit, each Letter of Credit will be
subject to and governed by the laws of the State of Maryland and the 2007 revision of the Uniform Customs and Practice for Documentary Credits of the International Chamber of Commerce (Publication 600) and, in the event of any conflict, the laws of
the State of Maryland will control. 
 Section 3.3 Fees. The Borrower shall pay to the Lender a fee for each Letter of Credit in
the amount of one percent (1%) of the amount of each Letter of Credit, which shall be paid at the time the Borrower submits an LC Application to the Lender. In addition, a renewal fee in the amount of one percent (1%) of the amount of each
Letter of Credit that remains open for more than twelve (12) months shall be paid to the Lender upon each anniversary of each Letter of Credit, except for City of Frederick Letters of Credit, as to which such renewal fee shall be paid not later
than the three hundredth (300th) day following issuance of the applicable Letter of credit. Such fees shall be deemed earned in full on each payment date and shall be non-refundable in all
circumstances. 
 SECTION FOUR 

PARTICULAR TERMS OF BOTH LOANS AND THE LC FACILITY 

4.1 Guarantor. Comstock Holding Companies, Inc. (the “Guarantor”) shall guarantee the payment and performance of the
Borrower’s obligations, covenants and agreements under the Loans and the LC Facility, as evidenced by the Loan Documents, including completion of Construction, and shall also guarantee the Carve Out Obligations (defined on Exhibit D
attached hereto), which guaranty shall be evidenced by an instrument of unlimited and unconditional guaranty of payment, performance and completion from the Guarantor for the benefit of the Lender, in form and substance satisfactory to the Lender
(the “Guaranty”). 
 4.2 Term. The Development Loan Note, the Construction Loan Note and each LC Note are for convenience
collectively called the “Notes”. The Development Loan Note and the Construction Loan Note shall mature twenty-four (24) months after the date of closing on the Loans and the LC Facility (the “Development and Construction Loan
Maturity”). Each LC Note shall have an initial maturity date of one (1) year from the issuance of the Letter of Credit to which it relates, and if the applicable Letter of Credit is thereafter extended the applicable LC Note shall have an
outside maturity date on the same date that the Letter of Credit would expire (the “LC Maturity”). It is acknowledged and agreed that notwithstanding any provisions herein, the Borrower has not applied for, nor has the Lender made any
commitment with respect to, any extension of the Development and Construction Loan Maturity or the LC Maturity. Upon any application for an extension, any approval of an extension on any terms would be contingent upon the usual and customary
underwriting procedures of EagleBank, including without limitation, full credit and collateral evaluation and review, the approval of the loan committee of EagleBank, and payment to the Lender of extension fees as determined by the Lender. 

  
 8 

 4.3 Interest Rate. Commencing on the closing of the Loans and the LC Facility, the unpaid
balance of each of the Notes outstanding from time to time shall bear interest and be payable at the floating rate per annum equal to three percent (3%) above the thirty (30) day LIBOR Rate (hereinafter defined), rounded upwards, if
necessary, to the nearest one-eighth of one percent (0.125%). The LIBOR rate means, for each calendar month, the annualized weighted average of the 30-day London Interbank Offered Rates (at approximately 11:00 a.m. London time) for U.S. Dollar
transactions on the day that is two (2) business days prior to the first day of that calendar month, as reported by Bloomberg Business News; if Bloomberg Business News is not available, the Lender shall select a similar source for the LIBOR
index and shall notify the Borrower of such selection. If no LIBOR index is available, or if the Lender determines in its sole discretion that any reported LIBOR rate is unreliable, the Lender may select an alternative index upon notice to the
Borrower of such selection. Interest shall be calculated using a 360-day year, based upon the actual number of days for which the calculation is being made. Notwithstanding the above, in no event shall any of the Notes bear interest at a rate below
the floor interest rate of four and three-quarters percent (4.75%) per annum at any time (the “Interest Rate Floor”). 
 4.4
Collateral. The Loans and the LC Facility shall be secured by, among other things, the following: 
  

	 	(i)	A first lien revolving credit line deed of trust, security agreement and fixture filing (as the same may be amended, restated, supplemented or substituted, the “Deed of Trust”) on the Property;

  

	 	(ii)	An assignment of Leases and Rents on the Property (as the same may be amended, restated, supplemented or substituted, the “Leases Assignment”); 

 

	 	(iii)	An assignment of sales contracts and deposits with respect to the Property (the “Contracts Assignment”); 

  

	 	(iv)	Assignments of all Development and Construction documents including, without limitation, plans and specifications, permits, architect’s contracts, engineering contracts, Development contracts, and Construction
contracts (the “Documents Assignment”); 

  

	 	(v)	Consents to Assignment executed by each of the general contractor, architect and project engineer for each of the Development and the Construction (the “Consents”); 

 

	 	(vi)	An Environmental Indemnity Agreement made by the Borrower and the Guarantor for the benefit of the Lender (as the same may be amended, restated, supplemented or substituted, the “Environmental Indemnity”);

  

	 	(vii)	Such UCC-1 Financing Statements as the Lender may determine to be necessary or desirable. 

 4.5
Equity Requirement. As a condition of the Loans and the LC Facility, the Borrower shall make an equity investment in the Property in an amount not less than One 

  
 9 

 
Million Nine Hundred Thousand and No/100 Dollars ($1,900,000.00). As of the closing of the Loans and the LC Facility, the Borrower shall have provided reasonable evidence of a portion of such
investment to the Lender in the following amounts: (i) $1,295,000.00 in cash toward the acquisition of the Property, (ii) $505,000.00 in equity pursuant to the Appraisal as calculated by the Lender, and (iii) evidence of payment of
soft costs (paid invoices) in an amount of at least $60,000.00. Promptly after funding additional soft costs following closing, the Borrower shall provide evidence of payment of soft costs (paid invoices) in an amount of at least an additional
$90,000.00. 
 4.5 Deposit Relationship. As a condition of the Loans and the LC Facility, the Borrower shall establish its primary
operating account and all escrow accounts (including without limitation escrow account for deposits under sales contracts) with the Lender and shall maintain such accounts with the Lender throughout the term of the Loans and the LC Facility. In
addition, the Borrower and/or Guarantor and/or any related entities shall maintain an aggregate minimum monthly average aggregate deposit balance with the Lender of ten percent (10%) of the combined outstanding principal balances of the Loans,
tested quarterly, with the first quarterly test period commencing on October 1, 2013 and tested at December 31, 2013. Such deposits shall be held in demand deposits or money market accounts. If at any time under any of the Loan Documents
the Lender is collecting deposits for the payment of insurance premiums and/or real estate taxes, the amount(s) on deposit, to the extent unapplied as of the date of any such semi-annual test, shall be counted toward the foregoing deposit balance
requirements. The foregoing deposit balance requirement is in addition to any deposit balance requirement under the terms of the loan documents for any other loan or loans by the Lender to the Borrower, the Guarantor or any affiliate(s) of the
Borrower or the Guarantor. The failure to comply with the foregoing deposit balance requirements shall not constitute a default under the Loans or the LC Facility; however, interest shall accrue on all amounts outstanding under the Loans and the LC
Facility at one-quarter of one percent (0.25%) plus the rate of interest then payable under the Notes (and the Interest Rate Floor shall also increase by one-quarter of one percent (0.25%)) from the date of such failure until such time as the
deposit balance requirement is satisfied at the next quarterly test. 
 4.6. Sales Requirement. (a) As a condition of the Loans
and the LC Facility, the Borrower shall diligently pursue Development of the Lots and Construction and sale of the Units thereon. In addition, the Borrower (i) shall enter into and close under sales contracts to third parties on the following
number of Lots, (ii) resulting in the curtailments of the Development Loan by each Milestone Date as set forth below in an amount not less than $58,000.00 per Lot, (iii) by each Milestone Date set forth below (the “Sales and
Curtailment Requirement”): 
  

																			
	Number of Lots
by each Milestone
Date	 	 	Curtailments of
Development
Loan by each
Milestone Date	 	 	Remaining
Development
Loan Balance	 	 	Lots Remaining
as Collateral	 	 	Milestone Date	 
	 	0	  	 	$	0	  	 	$	2,140,000	  	 	 	45	  	 	 	3/31/2014	  
	 	2	  	 	$	116,000	  	 	$	2,024,000	  	 	 	43	  	 	 	6/30/2014	  
	 	6	  	 	$	348,000	  	 	$	1,676,000	  	 	 	37	  	 	 	9/30/2014	  
	 	8	  	 	$	464,000	  	 	$	1,212,000	  	 	 	29	  	 	 	12/31/2014	  
	 	8	  	 	$	464,000	  	 	$	748,000	  	 	 	21	  	 	 	3/31/2015	  
	 	12	  	 	$	696,000	  	 	$	52,000	  	 	 	9	  	 	 	6/30/2015	  
	 	9	  	 	$	522,000	  	 	$	(470,000	) 	 	 	0	  	 	 	9/30/2015	  

  
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 (b) Such sales contracts shall be acceptable to the Lender in all respects, provided that the
Lender shall not unreasonably withhold its approval of any sales contract for a Lot that will result in a payment against principal under the Development Loan from sales proceeds of at least Fifty-Eight Thousand and No/100 Dollars ($58,000.00) per
Unit. 
 (c) Failure of the Borrower to comply with the Sales and Curtailment Requirement shall, at the Lender’s option, constitute an
Event of Default under the Loan Documents; provided, however, that the Lender agrees that it will not elect to call an Event of Default if the Borrower pays to the Lender, by the applicable Milestone Date, the amount necessary for the required
Cumulative Curtailment of the Development Loan, as set forth in the foregoing chart on the same line as for that Milestone Date, to be satisfied as of that Milestone Date (the “Substitute Curtailment Payment”). Payment of the Substitute
Curtailment Payment shall not, however, entitle the Borrower to the release of any Lots from the lien of the Deed of Trust. No Lots or Units shall be released except pursuant to settlement on a bona fide sale to a third party pursuant to
Section 4.9 below. 
 (d) The Borrower shall provide to the Lender marketing and sales reports on a monthly basis setting forth the
status of marketing, sales contracts and closings or settlements in such detail as the Lender may reasonably require. 
 4.9 Release
Provisions. The Deed of Trust shall contain the following provision for release of Lots and/or Units from the lien thereof: 

“Provided that the Grantor requests the release of one of the Lots and/or Units from the lien of this Deed of Trust prior to the
repayment in full of the Secured Indebtedness, and provided that the sales contract with respect to such Lot and/or Unit is in the form approved by the Beneficiary and at a minimum price set forth in the Loan Agreement, or if not set forth therein
then otherwise satisfactory to the Beneficiary in its sole discretion, then the Beneficiary agrees to release the lien of this Deed of Trust with respect to any one of the Lots and/or Units, upon Grantor’s written request, upon the following
terms and conditions: 
  

	 	(a)	With respect to a Lot for which advances have been made only from the Development Loan, payment of a Release Payment for a Lot equal to Fifty-Eight Thousand and No/100 Dollars ($58,000.00) for each of the first
thirty-five (35) Lots 

  
 11 

	 	
released. If all Letters of Credit have not been returned to the Lender at the time of sale of the thirty-sixth (36th) Lot, then the
Release Payment for the thirty-sixth (36th) Lot shall be Fifty-Eight Thousand and No/100 Dollars ($58,000.00) plus an amount equal to one hundred twenty-five percent (125%) of the
aggregate face amount of all then-outstanding Letters of Credit (the “LC Release Price Component”); if all Letters of Credit have been returned to the Lender at that time, then the Release Payment for the thirty-sixth (36th) Lot and for each of the remaining Lots shall be Fifty-Eight Thousand and No/100 Dollars ($58,000.00) per Lot. 

 

	 	(b)	With respect to a Lot upon which improvements have been constructed, payment of a Release Payment equal to the sum of Fifty-Eight Thousand and No/100 Dollars ($58,000.00) plus one hundred percent (100%) of the
funds advanced under the Construction Loan for the Unit constructed thereon. 

 The Release Payment paid under this Section
(b) will be applied by the Lender first to the costs advanced from the Construction Loan for Construction of the Unit and the remainder will be applied to the outstanding principal balance of the Development Loan. 

 

	 	(c)	The LC Release Price Component shall be escrowed with the Beneficiary as cash collateral for the LC Facility set forth in the Loan Agreement. Amounts in the LC Escrow shall be returned to the Grantor from time to time
to the extent that the amount in the LC Escrow exceeds one hundred twenty-five percent (125%) of the aggregate amount of all Letters of Credits that remain outstanding. 

 

	 	(d)	No Event of Default shall then exist and be continuing; 

  

	 	(e)	The Grantor pays all fees, costs, charges and expenses (including without limitation reasonable attorneys’ fees) relating to the preparation, execution and recordation of any document required in connection with
any such partial release; and 

  

	 	(f)	The Grantor pays a fee in the amount of One Hundred and No/100 Dollars ($100.00) for processing the request for release (“Processing Fee”); provided, however, that the Processing Fee will be waived in the
event the purchaser under the sales contract acquires the Lot and/or Unit using EagleBank as its mortgage lender for the purchase money of the Lot and/or Unit. 

Notwithstanding the foregoing, no release price shall be payable for the release of streets or roadways, or storm water maintenance or other public
facilities, that are to be dedicated to City of Frederick, Maryland or other governmental entities for public maintenance, provided the same are in accordance with a site plan that shall have been approved by the Beneficiary or such other
governmental entities.” 

  
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 4.10 Condominium Association. The Lender has approved the following condominium documents
for the Property (the “Restated Condominium Documents”): (i) Second Amendment and Restated Declaration of Condominium of Maxwell Square Condominium to be executed by Churchill Group at Maxwell Square, a Maryland corporation
(“Churchill”), and the Council of Unit Owners of Maxwell Square Condominium (“Council”), (ii) First Amended Plat of Maxwell Square Condominium, and (iii) Third Amendment to Declaration of Condominium of Maxwell Square
Condominium to be executed by Churchill and the Council. As a condition of closing the Loans, the Restated Condominium Documents shall have been approved by all governmental authorities with jurisdiction and recorded among the Land Records of
FrederickCounty, Maryland. The Borrower shall not amend the Restated Condominium Documents without the prior written consent of the Lender, which will not be unreasonably withheld. 

SECTION FIVE 
 PAYMENTS,
COMPUTATIONS, FEES, CHARGES AND PROTECTIVE ADVANCES 
 5.1 Payments. All payments due with respect to this Agreement or the Loans or
the LC Facility shall be made in immediately available funds to the Lender at such place as designated by the Lender from time to time. The Lender is authorized, but shall be under no obligation, to charge any deposit account maintained by the
Borrower with the Lender or any affiliate of the Lender for any payments due to the Lender with respect to this Agreement or the Loans or the LC Facility. Payments shall be applied, at Lender’s sole discretion: (i) first, to payment of
accrued and unpaid interest, if any; (ii) second, to payment of any principal then due, if any; (iii) third, to late charges, if any; (iv) fourth, to reasonable attorneys’ fees and costs of collection; and (v) fifth, to
reduce the outstanding principal balance of the Notes until such principal shall have been fully repaid. All payments hereunder shall be made without offset, demand counterclaim, deduction, abatement, defense, or recoupment, each of which the
Borrower hereby waives. 
 5.2 Late Charges. If any payment due under any of the Notes is not made within ten (10) days of its
due date, the Borrower shall pay to the Lender upon demand (which may be in the form of the usual monthly billing or invoice) a late charge equal to five percent (5%) of the amount of such payment. 

5.3. Default Rate. After an Event of Default (hereinafter defined), the interest which accrues on the Notes shall be increased to the
Default Rate (as defined in the Notes). 
 5.4 Computations. Interest and fees on the Loans shall be computed on the basis of a year
of three hundred sixty (360) days and actual days elapsed. 
 5.5 Prepayment. The Borrower may prepay any of the Notes in whole
or in part without premium or penalty at any time upon ten (10) days prior written notice to the Lender. 

  
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Partial prepayments shall be applied to installments of principal in their inverse order of maturity, if applicable. Amounts prepaid under the Development Loan Note and the LC Note may not be
re-borrowed; amounts prepaid under the Construction Loan Note may be re-borrowed in accordance with the terms and conditions of this Agreement. 

5.6 Indebtedness. As used in this Agreement, the term “Indebtedness” means all present and future indebtedness of the
Borrower to the Lender arising out of or in connection with the Notes or any of the other Loan Documents. 
 SECTION SIX 

CONDITIONS 
 6.1
Conditions Precedent to Closing. In addition to any other conditions stated in this Agreement, the following conditions must be satisfied prior to Lender closing on the Loans and the LC Facility. 

(a) Loan Documents. Receipt by Lender of appropriately completed and duly executed originals of this Agreement, the Notes, the
Guaranty, the Deed of Trust, the Leases Assignment, the Account Assignment, the Contracts Assignment, the Documents Assignment, the Consents, the Environmental Indemnity, and UCC-1 Financing Statements, all as Lender may require (collectively,
together with any other documents executed and delivered in connection with the Indebtedness, the “Loan Documents”). 
 (b)
Organizational Documents. The Borrower and each entity comprising the Borrower shall supply to the Lender, to the extent it has not previously done so in any prior transaction with the Lender: (i) a currently certified copy of its
Articles of Organization and all amendments thereto; (ii) evidence satisfactory to the Lender and its counsel that it is in good standing in the jurisdiction where organized and qualified to do business in every jurisdiction in which the nature
of its businesses or its properties makes such qualification necessary; (iii) resolutions authorizing the due execution and delivery of the Loan Documents to which it is a party; and (iv) certified copies of its Operating Agreement and all
amendments thereto. The Articles of Organization and the Operating Agreement of Borrower and each entity comprising the Borrower shall not be amended, changed or modified in any respect without prior written consent of the Lender. In addition, the
Guarantor shall supply, to the extent it has not previously done so in any prior transaction with the Lender: (i) a currently certified copy of its Articles of Incorporation and all amendments thereto; (ii) evidence satisfactory to Lender
and its counsel that it is in good standing in the jurisdiction where organized and qualified to do business in every jurisdiction in which the nature of its businesses or its properties makes such qualification necessary; (iii) resolutions
authorizing the due execution and delivery of the Loan Documents to which it is a party and a certificate of incumbency; and (iv) certified copies of its By-Laws and all amendments thereto. The Articles of Incorporation and the Bylaws of the
Guarantor shall not be amended, changed or modified in any respect without the prior written consent of the Lender; provided, however, that on the condition that the Lender is given thirty (30) days advance written notice, the Lender hereby
consents to the Guarantor’s change in corporate domicile from 

  
 14 

 
Delaware to Virginia and all amendments to its organizational documents as are reasonably required to effect such change in domicile subsequent to the closing of the Loan; provided further that
UCC-1 financing statements shall be filed in the changed domicile at the cost and expense of the Borrower. 
 (c) Opinion. Receipt by
the Lender of the opinion(s) of the counsel for Borrower and the Guarantor, in form and content satisfactory to the Lender, in its sole, but reasonable, discretion. 

(d) Insurance. Receipt by the Lender of certificate(s) of insurance to evidence a fully paid policy or policies of comprehensive public
liability insurance naming Lender as an additional insured thereunder in an amount not less than Two Million and No/100 Dollars ($2,000,000.00) in the aggregate with not less than One Million and No/100 Dollars ($1,000.000.00) per occurrence; in any
event, the amount of all insurance shall be sufficient to prevent any co-insurance contribution on any loss, with each policy providing for a thirty (30) day prior written notice of cancellation, amendment or alteration. 

(e) Operating Account. The Borrower shall have established its primary operating account with the Lender. 

(f) Financing Statements. The financing statements necessary to perfect the Lender’s security interest in the personal property
subject to the Deed of Trust, and in any other collateral requiring the filing of a financing statement for perfection of a lien thereon, shall be duly filed in all appropriate offices and jurisdictions, all other financing statements covering any
of such personal property shall be terminated or the Lender shall be reasonably satisfied that such terminations are forthcoming, and filing and recording receipts evidencing such filings and terminations shall be delivered to Lender, all in form
and substance satisfactory to the Lender. 
 (g) Property Documents. The Lender shall have received and approved in its sole
discretion, the following: 
 (1) Appraisals. An appraisal of the Property, prepared by an appraiser acceptable to the
Lender, in form and content acceptable to the Lender, conforming to all regulatory and internal appraisal guidelines applicable to or established by the Lender, in its sole, absolute, nonreviewable discretion, reflecting a “when developed”
discounted value satisfactory to the Lender (the “Appraisal”); 
 (2) Title Insurance. A commitment for
title insurance (the “Title Commitment”) insuring the first priority lien of the Deed of Trust in the aggregate amount of the Notes, containing no exceptions unacceptable to the Lender, issued in the name of the Lender by a title company
acceptable to the Lender and in an amount equal to the aggregate principal amount of the Notes. The Title Commitment and the title policy issued pursuant thereto (the “Title Policy”) shall reflect that all requirements for issuance of the
Title Policy have been satisfied, and shall contain such other endorsements or coverages as the Lender may require. 

  
 15 

 (3) Survey. A current survey and legal description of the Property
satisfactory to the Lender from a registered land surveyor of the State of Maryland, which survey shall show all easements, rights of way and other matters of record, shall locate all existing improvements on the Property, shall contain metes and
bounds descriptions of each applicable constituent portion of the Property acceptable to the Lender and its counsel, shall generally show a state of facts acceptable to the Lender, and shall contain a surveyor’s certificate satisfactory to the
Lender. 
 (4) Environmental. Receipt and approval by the Lender of a Phase I Environmental Site Assessment of the
Property. 
 (5) Condominium Documents. The Restated Condominium Documents shall have been recorded. 

(6) Development Approvals. Copies of the certified site plan for the Property showing, without limitation, evidence
satisfactory to the Lender that the Property can be subdivided into the individual Lots for construction of the Units thereon subject only to normal ministerial governmental processes. 

(7) Development and Construction Budgets. Except with respect to the soft costs (“Preliminary Soft Costs”)
that are being funded at closing of the Loans, final budget for the Development and final Construction budget for the Property which shall have been reviewed and approved by the Lender in its sole discretion and by the Lender’s Development and
construction consultant (the “Lender’s Inspector”). 
 (8) Development Documents. The Plans and
Specifications, Development Schedule and any and all other Development documents requested by the Lender and/or the Lender’s Inspector, which shall have been reviewed and approved by the Lender in its sole discretion and by the Lender’s
Inspector, except with respect to the Preliminary Soft Costs. 
 (9) Flood Hazard. Evidence that no part of the
Property is located in a special flood hazard area. 
 (10) Public Utilities. Evidence to the effect that sanitary
sewer, water, electric, gas, telephone and other public utilities are available and adequate to serve the Property. 
 (11)
Licenses and Permits. Copies of all licenses and permits in connection with the Property, including without limitation licenses, permits, proffers and other conditions to final subdivision and site plan approval for the Property. 

  
 16 

 (12) Consultant’s Review. Satisfactory review and analysis by the
Lender’s construction consultant of the Development and Construction plans, documents and budgets. 
 (13)
Zoning. Receipt by the Lender of a zoning endorsement to the Title Policy acceptable to the Lender or such other written evidence as is acceptable to the Lender that the Property is zoned consistent with the uses contemplated beyond any
possibility of appeal and can be developed as proposed as a matter of right, and to the effect, further, that there are no pending proceedings, either administrative, legislative or judicial, which would in any manner adversely affect the status of
the zoning with respect to the Property or any part thereof. 
 (14) Marketing Report. Receipt and satisfactory review
and analysis by the Lender of a marketing report. 
 (15) Purchase Contract. Receipt and satisfactory review and
approval by the Lender of the contract for the acquisition of the Property and any amendments thereto. 
 (h) No Default. No event
shall have occurred and be continuing that constitutes an Event of Default (as defined below). 
 (i) Representations. All
representations and warranties contained in this Agreement shall be true and correct in every material respect as of the date of closing of the Loans. 

(j) Satisfactory Documents. All documents delivered pursuant to this Agreement must be in form and substance satisfactory to the Lender
and its counsel and all legal matters incident to this Agreement must be satisfactory to Lender’s counsel. 
 (k)
Identification. As required by federal regulation, closing the Loans is contingent upon satisfactory verification of identity of the signatories and verification that none of the Borrower or the Guarantor or any signers is restricted from
conducting business in the United States. 
 6.2 Conditions Precedent to Advances of Development Loan. In addition to any other
conditions stated in this Agreement, the following conditions related to the Development must be satisfied prior to any disbursements under the Development Loan except for the Preliminary Soft Costs and all of the following matters shall have been
approved by the Lender. 
 (a) Permits. Copies of any and all building and similar permits required in connection with the
Development, or such portion thereof for which advances are requested, together with such evidence as the Lender may require to the effect that all fees for such 

  
 17 

 
permits have been paid. Satisfactory evidence shall be submitted to the Lender that all governmental approvals necessary for the Development, or such portion thereof for which advances are
requested, have been obtained. The Lender shall also receive satisfactory evidence that all applicable safety, ecological and environmental laws and any other codes or regulations affecting the Development and/or proposed use of the Property have
been complied with. 
 (b) Plans and Specifications. Two (2) sets of complete copies of the final Plans and Specifications for
the Development, which Plans and Specifications shall be satisfactory to the Lender in all respects. The Lender’s review of the Plans and Specifications is solely for the benefit of the Lender, and the Lender’s approval thereof shall not
be deemed in any respect to be a representation or warranty, expressed or implied, that the Development will be sound, have a value of any particular magnitude or otherwise satisfy a particular standard. Prior to any advances for hard costs, the
Borrower shall furnish the Lender with copies of the City-approved stamped Plans, together with such evidence as the Lender may require to the effect that such Plans and Specifications have been approved by all governmental and quasi-governmental
authorities having or claiming jurisdiction, and together with a final Development Budget which must be satisfactory to the Lender in its discretion. 

(c) Trade Payment Breakdown. A breakdown of total development costs, which shall include a draw schedule (the “Development
Budget”) containing reasonable details of amounts anticipated to be payable for each category of work to be performed and materials to be supplied in connection with the Development, and a projected schedule for the progress of the Development,
all in such form and containing such details as the Lender shall require. Any change orders in excess of $10,000.00 for any one change order and in the aggregate more than $25,000.00 shall be subject to the Lender’s prior approval. No hard
costs shall be advanced under the Development Loan until such time as the Development Budget has been approved by the Lender in its sole discretion. The Borrower may, from time to time, reallocate line item amounts in the Development Budget based
upon such reasonable supporting documentation justifying such reallocation with notice to the Lender provided that (i) no reallocation from the Interest Reserve or the Taxes Reserve shall be permitted, and (ii) the total Development Budget
shall not be increased. 
 (d) Development Schedule. A projected Schedule (“Development Schedule”) for the progress of the
Development of the Property and a projection of cash flow, each in such form and containing such details as the Lender shall require. The Borrower shall be required to diligently pursue and proceed with the Development in accordance with the
Development Schedule to completion. Failure of the Borrower to meet the requirements of the Development Schedule for completion of Development shall constitute an Event of Default under this Agreement. 

(e) General Contractor. All contracts for Development shall be subject to the Lender’s approval. Each Development contract shall
be assigned to the Lender effective on a default under any of the Loan Documents. Each Development contractor shall consent to such 

  
 18 

 
assignment and agree, in the event of any such default, to continue performance of the contract for the Lender, if the Lender so requests. Comstock Homes of Washington, L.C., an affiliate of the
Guarantor, is hereby approved as the general contractor for Development. Prior to any advances for Development costs, the Borrower shall furnish the Lender with a copy of the contractor’s license for that portion of the Development. The
Borrower shall also furnish the Lender with copies of licenses for all major subcontractors. 
 (f) Architect’s and Engineer’s
Certificate. The architect and the engineer for the Development shall be subject to the Lender’s approval. In addition, the contracts with the architect and the engineer shall be subject to the Lender’s approval. A certificate from the
architect and/or project engineer will be required to the effect that the Development, if completed in accordance with the Plans and Specifications, will comply with all federal, state, county and/or city and local laws, statutes, ordinances, codes,
regulations, rules or other laws applicable to the Development (“Applicable Laws”). Prior to any advances for Development costs, the Borrower shall furnish the Lender with a copy of the engineer’s license and the architect’s
license. 
 6.3 Provisions Governing Disbursements of Development Loan. Disbursements of the Development Loan shall be governed by
the following provisions: 
 (a) The Development shall be performed by the Borrower in strict accordance with all applicable (whether
present or future) laws, ordinances, codes, rules, regulations, requirements and orders of any governmental or regulatory authority having or claiming jurisdiction. The Development shall be in strict accordance with all applicable use or other
restrictions and the provisions of any prior declarations, covenants, conditions, restrictions and zoning ordinances and regulations. 
 (b)
The Borrower shall have submitted to the Lender and the Lender’s Inspector such information as may be requested by the Lender or the Lender’s Inspector to verify the Development costs which are to be incurred in connection with the
Development. The Lender shall not be obligated to authorize disbursement of Development Loan proceeds with respect to the Development for an amount in excess of the Development costs to be incurred in connection therewith as verified by the Lender
or the Lender’s Inspector pursuant to the provisions of the preceding sentence. The funding of each draw request is subject to an inspection and approval by the Lender’s Inspector. 

(c) The Development Loan proceeds will be advanced in installments as the Development progresses in accordance with the terms of this
Agreement to finance the Development in accordance with the Plans and Specifications, but no more often than once monthly, provided that the Lender is satisfied that the amounts available under the Development Loan will be sufficient to complete the
work and pay or provide for all reasonably anticipated Development costs through the required Development completion date under the Development Schedule. In the event the Lender determines that the amounts available under the

  
 19 

 
Development Loan, together with any additional cash provided by the Borrower to the Lender, if any, is insufficient to complete the Development in such manner as the Lender may require, the
Borrower shall provide such funds necessary to complete the Development. 
 (d) Advances of the Development Loan shall be conditioned upon
the Lender’s receipt of (i) written certification by parties approved by the Lender that the work which is the basis of the requested advance was completed in accordance with the approved Plans and Specifications and within the cost
estimates approved by the Lender (or such adjustments of cost estimates of line items as shall be required and approved by the Lender, provided that sufficient funds to complete the Development will be available under such adjusted estimates), to
the satisfaction of the Lender, and (ii) evidence that at that time all necessary certificates required to be obtained from any board, agency or department (government or otherwise) have been obtained. All documents required to be submitted to
the Lender as a condition of each disbursement shall be on standard AIA forms and shall be furnished to the Lender at the Lender’s address set forth in this Agreement. The Lender shall have at least ten (10) business days after receipt of
the foregoing documentation prior to funding an approved advance. 
 (e) The Lender shall have received a notice of title continuation or an
endorsement to the title insurance policy with respect to the Property theretofore delivered to the Lender, showing that since the last preceding advance, there has been no change in the status of title and no other exception not theretofore
approved by the Lender, which endorsement shall have the effect of advancing the effective date of the policy to the date of the advance then being made and increasing the coverage of the policy by an amount equal to the advance then being made, if
the policy does not by its terms provide automatically for such an increase. 
 (f) Before making the first advance of Development Loan
Proceeds, the Borrower shall have provided to the Lender satisfactory documentary evidence that the general contractor has obtained a Basic Business License from the State of Maryland and such license is in effect. 

(g) Before making any advance of Development Loan proceeds, the Lender may require the Borrower to obtain from any contractor or materialmen
it may engage in connection with the Development, acknowledgements of payment and releases of liens and rights to claim liens, if applicable, down to the date of the last preceding advance and concurrently with the final advance. All such
acknowledgements and releases shall be in form and substance satisfactory to the Lender. 
 (h) The Lender shall not be obligated to make
the final advance of Development Loan proceeds hereunder, which shall include the retainage described above, unless (i) the Lender’s Inspector has certified to the Lender on standard AIA forms that the work is complete; (ii) the
Lender has received evidence satisfactory to it that all work requiring inspection by governmental or regulatory authorities having or claiming jurisdiction has been duly inspected and approved by such authorities and by any rating or inspection
organization, 

  
 20 

 
bureau, association, or office having or claiming jurisdiction; (iii) that completion of the Development has occurred free and clear of all mechanics’ or materialmen’s liens and
any bills or claims for labor, materials and services in connection with the completion of the Development; and (iv) certificates from the Borrower’s architect, engineer and/or contractor, and, if required, from the Lender’s
Inspector, certifying that the Development has been completed in accordance with, and as completed comply with, the Plans and Specifications and all laws and governmental requirements. All fees and costs of the Lender’s Inspector shall be paid
by the Borrower. 
 (i) The Lender shall not be obligated to make any advances of Development Loan proceeds hereunder unless, in the
reasonable judgment of the Lender, all work completed at the time of the application for advance has been performed in a good and workmanlike manner, and all materials and fixtures usually furnished and installed at that stage of the development
have been furnished and installed, and no default which has not been cured has occurred under this Agreement or any of the documents evidencing, securing or guaranteeing the Development Loan. 

6.4 Conditions Precedent to Advances of Construction Loan. In addition to any other conditions stated in this Agreement, the following
conditions related to Construction of Units must be satisfied prior to any disbursements under the Construction Loan and all of the following matters shall have been approved by the Lender. 

(a) Permits. Copies of any and all building and similar permits required in connection with the Construction for each Lot upon which a
Unit is to be constructed, together with such evidence as the Lender may require to the effect that all fees for such permits have been paid. Satisfactory evidence shall be submitted to the Lender that all governmental approvals necessary for the
Construction have been obtained. The Lender shall also receive satisfactory evidence that all applicable safety, ecological and environmental laws and any other codes or regulations affecting the Construction and/or proposed use of the Property have
been complied with. 
 (b) Plans and Specifications. Two (2) sets of complete copies of the final Plans and Specifications for
the Construction, which Plans and Specifications shall be satisfactory to the Lender in all respects. The Lender’s review of the Plans and Specifications is solely for the benefit of the Lender, and the Lender’s approval thereof shall not
be deemed in any respect to be a representation or warranty, expressed or implied, that the Construction will be sound, have a value of any particular magnitude or otherwise satisfy a particular standard. Prior to any advances for hard costs, the
Borrower shall furnish the Lender with copies of the City-approved stamped Plans, together with such evidence as the Lender may require to the effect that such Plans and Specifications have been approved by all governmental and quasi-governmental
authorities having or claiming jurisdiction, and together with a final Construction Budget which must be satisfactory to the Lender in its discretion. 

  
 21 

 (c) Trade Payment Breakdown. A breakdown of total development costs, which shall include a
draw schedule (the “Construction Budget”) containing reasonable details of amounts anticipated to be payable for each category of work to be performed and materials to be supplied in connection with the Construction, and a projected
schedule for the progress of the Construction, all in such form and containing such details as the Lender shall require. The parties shall have agreed on the Unit Costs Budget. Any change orders shall be subject to the Lender’s prior approval.
No hard costs shall be advanced under the Construction Loan until such time as the Construction Budget has been approved by the Lender in its sole discretion. The Borrower may, from time to time, request reallocation of amounts in the Construction
Budget based upon such reasonable supporting documentation justifying such reallocation with notice to the Lender provided that (i) no reallocation from the Interest Reserve or the Taxes Reserve shall be permitted, and (ii) the total
Construction Budget shall not be increased. 
 (d) Construction Schedule. A projected Schedule (“Construction Schedule”)
for the progress of Construction of Units and a projection of cash flow, each in such form and containing such details as the Lender shall require. The Borrower shall be required to diligently pursue and proceed with Construction of Units in
accordance with the Construction Schedule to completion. No more than fourteen (14) Units may be under Construction at any one time. Any Unit as to which Construction has commenced within the Loan term must be completed prior to Maturity, and
commencement of construction of any Units within four (4) months prior to Maturity shall be prohibited. The Construction Schedule shall be consistent with the foregoing. Failure of the Borrower to meet the requirements of the Construction
Schedule shall constitute an Event of Default under this Agreement. 
 (e) General Contractor. All contracts for Construction of
Units shall be subject to the Lender’s approval. The Construction contract shall be assigned to the Lender effective on a default under any of the Loan Documents. The general contractor shall consent to such assignment and agree, in the event
of any such default, to continue performance of the contract for the Lender, if the Lender so requests. Comstock Homes of Washington, L.C., an affiliate of the Guarantor, is hereby approved as the general contractor for Construction of Units. Prior
to any advances for Construction costs for any Unit, the Borrower shall furnish the Lender with a copy of the contractor’s license for that portion of the Construction. The Borrower shall also furnish the Lender with copies of licenses for all
major subcontractors. 
 (f) Architect’s and Engineer’s Certificate. The architect and the engineer for the Construction
shall be subject to the Lender’s approval. In addition, the contracts with the architect and the engineer shall be subject to the Lender’s approval. A certificate from the architect and/or project engineer will be required to the effect
that the Construction of the Units being built, if completed in accordance with the Plans and Specifications, will comply with all federal, state, county, and local laws, statutes, ordinances, codes, regulations, rules or other laws applicable to
the Construction of the applicable Unit (“Applicable Laws”). Prior to any advances for Construction costs, the Borrower shall furnish the Lender with a copy of the engineer’s license and the architect’s license. 

  
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 (g) Lender’s Construction Consultant. The Plans and Specifications, Construction
Budget, Construction Schedule and any and all other Construction documents requested by the Lender and/or its Construction consultant (the “Lender’s Inspector”), shall be subject to approval by the Lender and the Lender’s
Inspector. All draw requests shall be submitted to the Lender and the Lender’s Inspector for review and approval. The Borrower shall be responsible for payment of all of the Lender’s Inspector’s fees. 

6.5 Provisions Governing Disbursements of Construction Loan. Disbursements of the Construction Loan shall be governed by the following
provisions: 
 (a) The Construction of all Units shall be performed by the Borrower in strict accordance with all applicable (whether
present or future) laws, ordinances, codes, rules, regulations, requirements and orders of any governmental or regulatory authority having or claiming jurisdiction. Construction of Units shall be completed in a manner so as not to encroach upon any
easement or right-of-way, or upon the land of others. Construction of each Unit shall be wholly within all applicable building restriction lines and set-backs, however established, and shall be in strict accordance with all applicable use or other
restrictions and the provisions of any prior declarations, covenants, conditions, restrictions and zoning ordinances and regulations. 
 (b)
The Borrower shall have submitted to the Lender and the Lender’s Inspector such information as may be requested by the Lender or the Lender’s Inspector to verify the Construction costs which are to be incurred in connection with
Construction. The Lender shall not be obligated to authorize disbursement of Construction Loan proceeds with respect to Construction of any Unit for an amount in excess of the Construction costs to be incurred in connection therewith as verified by
the Lender or the Lender’s Inspector pursuant to the provisions of the preceding sentence. The funding of each draw request is subject to an inspection and approval by the Lender’s Inspector. 

(c) The Construction Loan proceeds will be advanced in installments as the Construction progresses in accordance with the terms of this
Agreement to finance the Construction of Units in accordance with the Plans and Specifications, but no more often than once monthly, provided that the Lender is satisfied that the amounts available under the Construction Loan will be sufficient to
complete the work and pay or provide for all reasonably anticipated Construction costs through the required Construction completion date under the Construction Schedule. In the event the Lender determines that the amounts available under the
Construction Loan, together with any additional cash provided by the Borrower to the Lender, if any, is insufficient to complete the Construction in such manner as the Lender may require, the Borrower shall provide such funds necessary to complete
Construction. 

  
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 (d) Each advance shall be conditioned upon the Lender’s receipt of (i) written
certification by parties approved by the Lender that the work which is the basis of the requested advance was completed in accordance with the approved Plans and Specifications and within the cost estimates approved by the Lender (or such
adjustments of cost estimates of line items as shall be required and approved by the Lender, provided that sufficient funds to complete the Construction will be available under such adjusted estimates), to the satisfaction of the Lender, and
(ii) that at that time all necessary certificates required to be obtained from any board, agency or department (government or otherwise) have been obtained. All documents required to be submitted to the Lender as a condition of each
disbursement shall be on standard AIA forms and shall be furnished to the Lender at the Lender’s address set forth in this Agreement. The Lender shall have at least ten (10) business days after receipt of the foregoing documentation prior
to funding an approved advance. 
 (e) With respect to the Lots, at such time as the footings for the foundation of each “Stick”
(hereinafter defined) have been installed, the Lender shall have received a “wall check” or “foundation” survey of that stick that meets the Lender’s survey requirements and that shows that (i) all new construction is
within the boundary lines of the applicable Lot and is in compliance with all applicable setback, location and area requirements of all applicable governmental approvals, and (ii) there is no change in condition which could adversely affect the
applicable Unit. For purposes of this Agreement, a “Stick” means a building containing contiguous Units constructed on a single, shared foundation. 

(f) The Lender shall have received a notice of title continuation or an endorsement to the title insurance policy with respect to the Property
theretofore delivered to the Lender, showing that since the last preceding advance, there has been no change in the status of title and no other exception not theretofore approved by the Lender, which endorsement shall have the effect of advancing
the effective date of the policy to the date of the advance then being made and increasing the coverage of the policy by an amount equal to the advance then being made, if the policy does not by its terms provide automatically for such an increase.

 (g) Before making any advance of Construction Loan proceeds, the Lender may require the Borrower to obtain from any contractor or
materialmen it may engage in connection with the Construction of any Unit, acknowledgements of payment and releases of liens and rights to claim liens, if applicable, down to the date of the last preceding advance and concurrently with the final
advance. All such acknowledgements and releases shall be in form and substance satisfactory to the Lender. 
 (h) No advances will be made
for building materials or furnishings that have not yet been incorporated into the Unit(s) (“Stored Materials”) unless (a) the Borrower has good title to the Stored Materials and has furnished satisfactory evidence of such title to
the Lender, (b) the Stored Materials are components in a form ready for incorporation into the applicable Unit(s) and will be so incorporated within a period of forty-five (45) days from the date of the advance for the Stored Materials,
(c) the Stored Materials are in the Borrower’s possession and 

  
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are satisfactorily stored on the Property or at such other location as the Lender may approve, in each case with adequate safeguards to prevent commingling with materials for other projects,
(d) the Stored Materials are protected and insured against loss, theft and damage in a manner and amount satisfactory to the Lender and the Lender has received Certificates of Insurance reflecting Borrower as an additional insured and owner of
the Stored Materials, (e) the Stored Materials have been paid for in full or will be paid for in full from the funds to be advanced, (f) the lender has or will have upon the payment for the Stored Materials from the advanced funds a
perfected, first priority security interest in the Stored Materials, (g) all lien rights and claims of the supplier have been released or will be released upon payment with the advanced funds, and (h) following the advance for the Stored
Materials, the aggregate amount of advances for Stored Materials that have not yet been incorporated into the Construction will not exceed Ten Thousand Dollars ($10,000.00) per Unit that is then under Construction. 

(i) The Lender shall not be obligated to make the final advance of Construction Loan proceeds hereunder with respect to any Unit, which shall
include the retainage described above, unless (i) the Lender’s Inspector has certified to the Lender on standard AIA forms that the work is complete (except for punch list items which the Lender may approve and for which Lender may retain
150% of the cost of correction) in accordance with the Plans and Specifications; (ii) the Lender has received evidence satisfactory to it that all work requiring inspection by governmental or regulatory authorities having or claiming
jurisdiction has been duly inspected and approved by such authorities and by any rating or inspection organization, bureau, association, or office having or claiming jurisdiction; (iii) that completion of Construction of the Unit has occurred
free and clear of all mechanics’ or materialmen’s liens and any bills or claims for labor, materials and services; (iv) certificates from the Borrower’s architect, engineer and/or contractor, and, if required, from the
Lender’s Inspector, certifying that Construction of the Unit has been completed in accordance with, and as completed comply with, the Plans and Specifications and all laws and governmental requirements; and (v) a certificate of occupancy
or residential use permit shall have been validly issued by the City of Frederick, Maryland, or such other governmental authority as has jurisdiction for the issuance of such certificates or permits, to allow lawful residential occupancy of the
completed Unit. All fees and costs of the Lender’s Inspector shall be paid by the Borrower. 
 (j) The Lender shall not be obligated to
make any advances of Construction Loan proceeds hereunder unless, in the reasonable judgment of the Lender, all work completed at the time of the application for advance has been performed in a good and workmanlike manner, and all materials and
fixtures usually furnished and installed at that stage of the development have been furnished and installed, and no default which has not been cured has occurred under this Agreement or any of the documents evidencing, securing or guaranteeing the
Construction Loan. 
 (k) During default after expiration of any applicable cure period hereunder, the Lender, at its option, may make any
and all advances, or any part thereof, directly to the general contractor or subcontractors against requisitions for payment under the general 

  
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contractor’s contract or the respective contracts or subcontracts, as the case may be; the execution of this Agreement by the Borrower shall and does constitute an irrevocable direction and
authorization to so advance funds, and such funds shall be added to the principal balance of the Construction Loan, shall bear interest as set forth in the Construction Loan Note and shall be secured by the Deed of Trust. All payments made pursuant
to the foregoing shall be made within the scope of the respective contracts. 
 SECTION SEVEN 

REPRESENTATIONS AND WARRANTIES 

In order to induce the Lender to extend credit to the Borrower, the Borrower and the Guarantor each make the following representations and
warranties as to itself: 
 7.1 Organization. The Borrower and each entity comprising the Borrower is a limited liability company
duly organized, validly existing and in good standing under the laws of the Commonwealth of Virginia and is duly qualified as a foreign limited liability company and in good standing under the laws of each other jurisdiction in which such
qualification is required. The Guarantor represents and warrants that it is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware and is duly qualified as a foreign corporation and in good
standing under the laws of each other jurisdiction in which such qualification is required. 
 7.2 Execution and Delivery. The
Borrower and each entity comprising the Borrower has the power, and has taken all of the necessary actions, to execute and deliver and perform its obligations under the Loan Documents, and the Loan Documents, when executed and delivered, will be
binding obligations of each such entity enforceable in accordance with their respective terms. 
 7.3 Power. Each of the Borrower and
each entity comprising the Borrower has the power and authority to own its properties and to carry on its business as now being conducted. 

7.4 Financial Statements. Al financial statements and information delivered to the Lender are correct and complete in all material
respects and present fairly the financial conditions, and reflect all known liabilities, contingent and otherwise, of the Borrower and the Guarantor as of the dates of such statements and information, and since such dates no material adverse change
in the assets, liabilities, financial condition, business or operations of the Borrower or the Guarantor has occurred. 
 7.5 Taxes.
All tax returns and reports of the Borrower and the Guarantor required by law to be filed have been duly filed, and all taxes, assessments, other governmental charges or levies (other than those presently payable without penalty or interest and
those that are being contested in good faith in appropriate proceedings) upon the Borrower and/or the Guarantor and upon any of their respective properties, assets, income or franchises, that are due and payable have been paid. 

  
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 7.6 Litigation. There is no action, suit or proceeding pending or, to the knowledge of the
Borrower or the Guarantor, threatened against or affecting the Borrower or the Guarantor that, either in any case or in the aggregate, may result in any material adverse change in the business, properties or assets or in the condition, financial or
otherwise, of the Borrower or the Guarantor, or that may result in any material liability on the part of the Borrower or the Guarantor that would materially and adversely affect the ability of the Borrower or the Guarantor to perform its and/or
their obligations under the Loan Documents, or that questions the validity of any of the Loan Documents or any action taken or to be taken in connection with the Loan Documents. 

7.7 No Breach. The execution and delivery of the Loan Documents, and compliance with the provisions of the Loan Documents, will not
conflict with or violate any provisions of law or conflict with, result in a breach of, or constitute a default under, the organizational documents of the Borrower, or any judgment, order or decree binding on the Borrower, or any other agreements to
which the Borrower is a party. 
 7.8 No Defaults. To the best of the Borrower’s knowledge, the Borrower is not in default with
respect to any debt, direct or indirect, upon or as to which the Borrower has any liability or obligation. 
 7.9 Compliance. The
Borrower is in compliance in all material respects with all applicable laws and regulations, including, without limitation, the Employee Retirement Income Security Act of 1974, as amended (“ERISA”). 

7.10 Approvals. No authorizations, approvals or consents of, and no filings and registrations with, any governmental or regulatory
authority or agency, are necessary for the execution, delivery or performance of the Loan Documents by the Borrower. 
 7.11 Title to
Assets. The Borrower has good and marketable title to all of its assets, subject only to the liens and security interests permitted by this Agreement. 

7.12 Use of Proceeds. The proceeds of the Loans and the LC Facility shall be used only for the purposes described in this Agreement.
The proceeds of the Loans and the LC Facility shall not be used to purchase or carry any margin stock, as such term is define din Regulation U of the Board of Governors of the Federal Reserve System. 

7.13 Vacant Status of Property. Other than as provided in the title report for the Property with respect to easement rights of others
on the Property, the Property is vacant and free of any tenancy that would or might impair development thereof. 

  
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 SECTION EIGHT 

COVENANTS OF BORROWER AND GUARANTOR 

In consideration of credit extended or to be extended by the Lender, the Borrower covenants and agrees as follows: 

8.1 Financial Information. The Borrower and the Guarantor shall each deliver to the Lender: (i) with respect to the Borrower, each
year within ninety (90) days after the close of its fiscal year, financial statements prepared in accordance with standard accounting principles consistently applied, certified as true and correct by an officer of each such entity;
(ii) with respect to the Guarantor, each year within ninety (90) days after the close of its fiscal year, audited financial statements; (iii) each year within thirty (30) days after filing, a copy of each such entity’s
federal income tax return and all schedules thereto, provided that in the event of such extension such entity shall provide the Lender with a copy of the federal income tax return and all schedules thereto within thirty (30) days of the filing
of same with the Internal Revenue Services, and provided further, that if the Borrower and the Guarantor file their returns on a consolidated basis, no separate federal income tax return of the Borrower shall be required to be delivered, and
(iv) promptly upon the Lender’s request, such financial and other information as the Lender reasonably may require from time to time. All financial statements shall be in such reasonable detail and shall be accompanied by such certificates
of the Borrower or the Guarantor, as applicable, as may reasonably be required by the Lender. 
 8.2 Taxes. All tax returns and
reports of the Borrower required by law to be filed have been duly filed, and all taxes, assessments, other governmental charges or levies (other than those presently payable without penalty or interest and those that are being contested in good
faith in appropriate proceedings) upon the Borrower and upon the Borrower’s properties, assets, income or franchises, that are due and payable, have been paid. 

8.3 Compliance with Laws. The Borrower shall comply with all applicable laws and regulations including, without limitation, ERISA. 

8.4 Maintain Existence. The Borrower and the Guarantor each shall maintain its existence in good standing, maintain and keep its
properties in good condition (ordinary wear and tear excepted), maintain adequate insurance for all of its properties with financially sound and reputable insurers. The Borrower shall remain in the same line of business as it is on the date of this
Agreement and shall not enter into any new lines of business without the prior written consent of the Lender. 
 8.5 Notices. As soon
as it has actual knowledge, the Borrower shall notify the Lender of the institution or threat of any material litigation or condemnation or administrative proceeding of any nature involving the Borrower. 

8.6 Books and Records. The Borrower shall maintain complete and accurate books of account and records. The principal books of account
and records shall be kept and maintained at 1886 Metro Center Drive, 4th Floor, Reston, VA 10190. The Borrower shall not remove such books of account and records without giving the Lender at least
thirty (30) days 

  
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prior written notice. The Borrower, upon reasonable notice from the Lender, shall permit the Lender, or any officer, employee or agent designated by the Lender, to examine the books of account
and records maintained by the Borrower, and agree that the Lender or such officer, employee or agent may audit and verify the books and records. The Borrower shall reimburse the Lender for any reasonable expenses incurred by the Lender in connection
with any such audits. All accounting records and financial reports furnished to the Lender by the Borrower and the Guarantor pursuant to this Agreement shall be maintained and prepared in accordance with GAAP. 

8.7 Liens. The Borrower shall not create, incur, assume or permit to exist any mortgage, deed of trust, assignment, pledge, lien,
security interest, charge or encumbrance, including, without limitation, the right of a vendor or under a conditional sale contract or the lessor under a capitalized lease (collectively, (“Liens”) of any kind or nature in or upon any of
the asset of the Borrower except: 
  

	 	(a)	Liens created or deposits made that are incidental to the conduct of the business of the Borrower, that are not incurred in connection with any borrowing or the obtaining of any credit and that do not and will not
interfere with the use by the Borrower of any of its assets in the normal course of its business or materially impair the value of such assets for the purpose of such business; and 

 

	 	(b)	Liens securing the Indebtedness. 

 8.8 Debt. Except as provided above in
Section 8.7, without the prior written consent of the Lender, the Borrower shall not incur or permit to exist any debt for borrowed funds, the deferred purchase price of goods or services or capitalized lease obligations, except for
(a) trade debt incurred in the ordinary course of business, and (b) the Indebtedness. 
 8.9 Contingent Liabilities.
Without the prior written consent of the Lender, neither the Borrower nor the Guarantor shall guarantee, endorse, become contingently liable upon or assume the obligation of any person, or permit any such contingent liability to exist, except by the
endorsement of negotiable instruments for deposit or collection or similar transactions in the ordinary course of business. 
 8.10 Sale
of Assets. Without the prior written consent of the Lender, the Borrower shall not sell, lease, assign or otherwise dispose of any of its assets except for (a) sales in the ordinary course of business including sales of Lots and Units as
approved by the Lender from time to time, (b) the disposition of assets that are no longer needed or useful in its business, and (c) assets which have been removed and replaced. 

  
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 8.11 Mergers and Acquisitions. Without the prior written consent of the Lender, the
Borrower shall not merge or consolidate with, or acquire all or substantially all of the assets, stock, partnership interests or other ownership interests of, any other person. 

8.12 Loans and Advances. Without the prior written consent of the Lender, the Borrower shall not make any loan or advance to any
affiliate, director, member, manager, officer or employee of the Borrower, or any other person, except for the creation of accounts receivable in the ordinary course of business on terms that are no less favorable than would apply in an arms-length
transaction. 
 8.13 Subsidiaries and Joint Ventures. Without the prior written consent of the Lender, the Borrower shall not form
any subsidiary, become a general or limited partner in any partnership or become a party to a joint venture. If the Lender grants its consent to the formation or acquisition of a subsidiary Borrower, such entity shall cause each subsidiary to
perform and observe all of the covenants contained in this Agreement and the other Loan Documents. 
 8.14 Affiliates. Without the
prior written consent of the Lender, the Borrower shall not engage in business with any of its affiliates except in the ordinary course of business and on terms that are no less favorable to the Borrower than would apply in an arm’s length
transaction. 
 8.15 Organization; Control and Management; Transfers. Until such time as the Loans and the LC Facility are fully
repaid, there shall be no Transfer (hereinafter defined) of any interest in the Borrower, nor any change in the Control (hereinafter defined) or management of either the Borrower or the Guarantor, nor any Transfer of the Property except for sales of
Lots and Units in accordance with the terms of the Loan Documents, without the Lender’s prior written consent. “Transfer” means any assignment, pledge, conveyance, sale, transfer, mortgage, encumbrance, grant of a security interest or
other disposition, either directly or indirectly, in the aggregate of fifty percent (50%) or more of the beneficial ownership interests of an entity and the possession, directly or indirectly, of the power to direct or cause the direction of
the management and policies of an entity, whether through the ability to exercise voting power, by contract or otherwise. “Controlled by” and “controlling” shall have the respective correlative meanings thereto. 

SECTION NINE 
 DEFAULT AND
REMEDIES 
 9.1 Default. Each of the following shall constitute an “Event of Default” under this Agreement: 

(a) Failure to Pay. If: (i) the Borrower shall fail to pay any monthly payment required under the Development Loan Note or the
Construction Loan Note (“Monthly Payments”) when due thereunder or (ii) the Borrower shall fail to pay any amount (other than the Monthly Payments) as and when due under the LC Note or any of the other Loan Documents; 

  
 30 

 (b) Failure to Give Notices. If the Borrower fails to give the Lender any notice required
by Section 8.5 of this Agreement within thirty (30) days after it has actual knowledge of the event giving rise to the obligation to give such notice. 

(c) Failure to Permit Inspections. If the Borrower refuses to permit the Lender to inspect its books and records in accordance with the
provisions of Section 8.6 or failure to permit the Lender to inspect the Property upon reasonable advance notice. 
 (d) Failure to
Observe Covenants. If the Borrower fails to perform or observe any non-monetary term, covenant, warranty or agreement contained in this Agreement or in the other Loan Documents for which no cure period or another cure period is provided, and
such failure shall continue for a period of thirty (30) days after written notice of such failure has been given to the Borrower by the Lender; provided, however, if such default is not in the payment of any sum due to the Lender hereunder, or
was not the subject of an Event of Default for which notice was previously provided, and provided the Borrower is diligently pursuing the cure of such default , then the Borrower shall have an additional sixty (60) days within which to cure
such default prior to the Lender exercising any right or remedy available hereunder, or at law or in equity. 
 (e) Defaults Under Loan
Documents. If an Event of Default shall occur under any of the Notes or any other Loan Document and shall not be cured within any applicable grace period. 

(f) Breach of Representation. Discovery by the Lender that any representation or warranty made or deemed made by the Borrower in this
Agreement or in any other Loan Document or in any statement or representation made in any certificate, report or opinion delivered pursuant to this Agreement or other Loan Document or in connection with any borrowing under this Agreement by the
Borrower or the Guarantor or any member, manager, officer, agent, employee or director of the Borrower or the Guarantor, was materially untrue when made or deemed to be made. 

(g) Voluntary Bankruptcy. If the Borrower or the Guarantor makes an assignment for the benefit of creditors, files a petition in
bankruptcy, petitions or applies to any tribunal for any receiver or any trustee of the Borrower or the Guarantor or any substantial part of the property of the Borrower or the Guarantor, or commences any proceeding relating to the Borrower or the
Guarantor under any reorganization, arrangement, composition, readjustment, liquidation or dissolution law or statute of any jurisdiction, whether in effect now or after this Agreement is executed. 

  
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 (h) Involuntary Bankruptcy. If, within sixty (60) days after the filing of a
bankruptcy petition or the commencement of any proceeding against the Borrower or the Guarantor seeking any reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar relief under any present or future statue, law or
regulation, the proceeding shall not have been dismissed, or, if within sixty (60) days, after the appointment, without the consent or acquiescence of the Borrower or the Guarantor, of any trustee, receiver or liquidator of any Borrower or all
or any substantial part of the properties of the Borrower o the Guarantor, the appointment shall not have been vacated. 
 (i) Cross
Default. If, as a result of default, any present or future obligations of the Borrower or the Guarantor or any affiliate of the Borrower or the Guarantor to the Lender or any other creditor, whether due to acceleration provisions or otherwise
therein, are declared to be due and payable prior to the expressed maturity of such obligations. 
 (j) Material Adverse Change. A
material adverse change occurs in the financial or business condition of the Borrower or the Guarantor. 
 (k) Judgment. If a
judgment, attachment, garnishment or other process is entered against the Borrower and is not vacated or bonded within sixty (60) days after entry (or such shorter period of time as necessary in order to avoid attachment or foreclosure), or if
a judgment, attachment, garnishment or other process is entered against the Guarantor that would materially affect the Guarantor’s ability to perform its obligations under the Loan Documents, and such judgment, attachment, garnishment or other
process is not vacated or bonded with in sixty (60) day after entry (or such shorter period of time as necessary in order to avoid attachment or foreclosure). 

(l) Dissolution. The dissolution, liquidation or termination of existence of the Borrower or the Guarantor unless a substitute
guarantor, satisfactory to the Lender in its sole and absolute discretion, assumes all liability under the Guaranty and Environmental Indemnity and executes any documents which the Lender may reasonably require to implement such substitution, within
sixty (60) days after event of dissolution, liquidation or termination of existence. 
 (m) Change in Management/Control. A
change in the management of or controlling interest in the Borrower or the Guarantor without the prior written consent of the Lender. 
 9.2
Remedies. Upon the occurrence of an Event of Default (a) the Lender, at its option, by written notice to the Borrower, may declare all Indebtedness to the Lender to be immediately due and payable, whether such Indebtedness was incurred
prior to, contemporaneous with or subsequent to the date of this Agreement and whether represented in writing or otherwise, without presentment, demand, protest or further notice of any kind, and (b) the Lender may exercise all rights and
remedies available to it under the Loan Documents and applicable law. The Borrower agrees to pay all costs and expenses incurred by the Lender in 

  
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enforcing any obligation under this Agreement or the other Loan Documents, including, without limitation, attorneys’ fees. No failure or delay by the Lender in exercising any power or right
will operate as a waiver of such power or right, nor will any single or partial exercise of any power or right preclude any other future exercise of such power or right, or the exercise of any other power or right. 

9.3 Borrower to Pay Fees and Charges. The Borrower shall pay all fees and charges incurred in the procuring, making and enforcement of
the Loans, including without limitation the reasonable fees and disbursements of Lender’s attorneys, charges for appraisals, the fee of Lender’s inspector and construction consultant, fees and expenses relating to examination of title,
title insurance premiums, surveys, and mortgage recording, documentary, transfer or other similar taxes and revenue stamps, loan extension fees, if any, and the Lender’s fees for the Loans. 

SECTION TEN 
 GENERAL PROVISIONS

 10.1 Defined Terms. Each accounting term used in this Agreement, not otherwise defined, shall have the meaning given to it
under GAAP applied on a consistent basis. The term “person” shall mean any individual partnership, corporation, trust, joint venture, unincorporated association, governmental subdivision or agency or any entity of any nature. The term
“subsidiary” means, with respect to any person, a corporation or other person of which shares of stock or other ownership interest having ordinary voting power to elect a majority of the board of directors or other managers of such
corporation or person are at the time owned, or the management of which it otherwise controlled, directly or indirectly, through one or more intermediaries, by such person. The term “affiliate” means, with respect to any specified person,
any other person that, directly or indirectly, controls or is controlled by, or is under common control with, such specified person. All meanings assigned to defined terms in this Agreement shall be applicable to the singular and plural forms of the
terms defined. 
 10.2 Notices. All notices, requests, demands and other communication with respect hereto shall be in writing and
shall be delivered by hand, prepaid by Federal Express (or a comparable overnight delivery service), or sent by the United States first-class mail, certified, postage prepaid, return receipt requested, to the parties at their respective addresses
set forth as follows: 
 If to the Lender, to: 

EAGLEBANK 
 7815 Woodmont Avenue

 Bethesda, MD 20814 
 Attn:
Jenifer Bush, Vice President 

  
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 With a copy to: 

Friedlander Misler, PLLC 
 5335
Wisconsin Avenue, N.W., Suite 600 
 Washington, D.C. 20015 

Attn: Leonard A. Sloan, Esq. 
 If
to the Borrower, to: 
 Comstock Maxwell Square, L.C. 

c/o Comstock Holding Companies, Inc. 

1886 Metro Center Drive, 4th Floor 

Reston, VA 20190 
 Attn:
Christopher Clemente 
 With a copy to: 

Comstock Maxwell Square, L.C. 

c/o Comstock Holding Companies, Inc. 

1886 Metro Center Drive, 4th Floor 

Reston, VA 20190 
 Attn: Jubal
Thompson, Esq. 
 Any notice, request, demand or other communication delivered or sent in the manner aforesaid shall be deemed given or made
(as the case may be) upon the earliest of (a) the date it is actually received, (b) on the business day after the day on which it is delivered by hand, (c) on the business day after the day on which it is properly delivered by Federal
Express (or a comparable overnight delivery service), or (d) on the third (3rd) business day after the day on which it is deposited in the United States mail. Any party may change such
party’s address by notifying the other parties of the new address in any manner permitted by this Section. 
 10.3 Successors and
Assigns. This Agreement will be binding upon and inure to the benefit of the Lender and the Borrower and their respective successors, assigns, personal representatives, executors and administrators, provided that the Borrower may not assign or
transfer its rights under this Agreement. 
 10.4 Entire Agreement. Except for the other Loan Documents expressly referred to in this
Agreement, this Agreement represents the entire agreement between the Lender and the Borrower, supersedes all prior commitments and may be modified only by an agreement in writing. 

10.5 Survival. All agreements, covenants, representations and warranties made in this Agreement and all other provisions of this
Agreement will survive the delivery of this Agreement and the other Loan Documents and the making of the advances under this Agreement and will remain in full force and effect until the obligations of the Borrower under this Agreement and the other
Loan Documents are indefeasibly satisfied. 

  
 34 

 10.6 Governing Law. This Agreement will be governed by and construed in accordance with
the laws of the State of Maryland, without reference to conflict of laws principles. 
 10.7 Headings. Section headings are for
convenience of reference only and shall not affect the interpretation of this Agreement. 
 10.8 Participations. The Lender shall
have the right to sell all or any part of its rights under the Loan Documents, and the Borrower authorizes the Lender to disclose to any prospective participant in or purchaser of any of the Loans any and all financial and other information in the
Lender’s possession concerning the Borrower or the collateral for the Loans. 
 10.9 No Third Party Beneficiary. The parties do
not intend the benefits of this Agreement or any other Loan Document to inure to any third party. 
 10.10 Waiver of Jury Trial. TO
THE FULLEST EXTENT PERMITTED BY LAW, THE LENDER AND THE BORROWER KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE ANY RIGHTS THEY MAY HAVE TO A TRIAL BY JURY BASED ON, ARISING OUT OF OR UNDER, OR IN CONNECTION WITH THIS AGREEMENT OR ANY OF THE OTHER
LOAN DOCUMENTS. 
 10.11 Waiver. The rights of the Lender under this Agreement and the other Loan Documents shall be in addition to
all other rights provided by law. No waiver of any provision of this Agreement, or any other Loan Document, shall be effective unless in writing, and no waiver shall extend beyond the particular purpose involved. No waiver in any one case shall
require the Lender to give any subsequent waivers. 
 10.12 Severability. If any provision of this Agreement or any other Loan
Document is held to be void, invalid, illegal or unenforceable in any respect, such provision shall be fully severable and this Agreement or the applicable Loan Document shall be construed as if the void, invalid, illegal or unenforceable provision
were not included in this Agreement or in such Loan Document. 
 10.13 No Setoffs. With respect to a monetary default claimed by the
Lender under the Loan Documents, no setoff, claim, counterclaim, reduction or diminution of any obligation or defense of any kind or nature that the Borrower has or may have against the Lender (other than the defenses of payment, the Lender’s
gross negligence or willful misconduct) shall be available against the Lender in any action, suit or proceeding brought by the Lender to enforce this Agreement or any other Loan Document. The foregoing shall not be construed as a waiver by the
Borrower of any such rights or claims against the Lender, but any recovery upon any such rights or claims shall be had from the Lender separately, it being the intent of this Agreement and the other Loan Documents that the Borrower shall be
obligated to pay, absolutely and unconditionally, all amounts due under this Agreement and the other Loan Documents. 

  
 35 

 10.14 No Merger. The Borrower and the Lender expressly agree that the Borrower’s
agreement and obligation to pay the Lender’s reasonable attorneys’ fees and costs, and all other litigation expenses, shall not be merged into any judgment obtained by the Lender, but shall survive the same and shall not be extinguished by
any monetary judgment. It is the express intent of the parties hereto that all post-judgment collection fees and expenses (including reasonable attorneys’ fees and costs) shall survive entry of a final judgment and shall be collectible by the
Lender against the Borrower from time to time following entry of any final judgment obtained by the Lender against the Borrower. 
 10.15.
Counterparts. This Agreement may be executed for the convenience of the parties in several counterparts, which are in all respects similar and each of which is to be deemed to be complete in and of itself, and any one of which may be
introduced in evidence or used for any other purpose with the production of the other counterparts thereof. 
 10.16 Consent to
Jurisdiction. The Borrower irrevocably submits to jurisdiction of any state or federal court sitting in the Commonwealth of Virginia or the State of Maryland over any suit, action or proceeding arising out of or relating to this Agreement, the
Notes or any other Loan Documents. The undersigned irrevocably waives, to the fullest extent permitted by law, any objection that the undersigned may now or hereafter have to the venue of any such suit, action or proceeding brought in any such court
and any claim that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum. Final judgment in any such court shall be conclusive and binding and may be enforced in any court in which the undersigned is
subject to jurisdiction by a suit upon such judgment provided that service of process is effected as provided herein or as otherwise permitted by applicable law. 

10.17 Service of Process. The Borrower hereby consents to process being served in any suit, action or proceeding instituted in the
Commonwealth of Virginia or the State of Maryland in connection with the Loans by (i) the mailing of a copy thereof by certified mail, postage prepaid, return receipt requested, to the Borrower at the address set forth in the Notices section of
this Agreement and (ii) serving a copy thereof upon the Borrower’s registered agent for service of process. The undersigned irrevocably agrees that such service shall be deemed to be service of process upon the undersigned in any such
suit, action or proceeding. Nothing in this Agreement shall affect the right of the Lender otherwise to bring proceedings against the undersigned in the courts of any jurisdiction or jurisdictions. 

  
 36 

 10.18 Exhibits. All exhibits referred to herein as attached hereto are incorporated in
full by reference as though fully set forth in this Agreement. The Exhibits are: 
  

			
	Exhibit A:	  	Legal Description of the Property
	Exhibit B:	  	City of Frederick Letter of Credit Form
	Exhibit C:	  	LC Promissory Note Form
	Exhibit D:	  	Carve Out Obligations

 [SIGNATURES ON FOLLOWING PAGES] 

  
 37 

 IN WITNESS WHEREOF, the Borrower and the Lender have caused this Agreement to be executed in
their respective names by duly authorized representatives as of the day and year first above written. The Guarantor joins herein to consent and agree to the terms, conditions, provisions and covenants of those sections of this Agreement that address
a covenant or obligation of the Guarantor. 
  

									
	WITNESS:	 		 	BORROWER:
			
		 		 	COMSTOCK MAXWELL SQUARE, L.C., a Virginia limited liability company
				
		 		 	By:	 	Comstock Holding Companies, Inc., a Delaware corporation, its Manager
					
		 		 		 	By:	 	  

		 		 		 		 	Christopher D. Clemente
		 		 		 		 	Chief Executive Officer

 [SEAL] 
 COMMONWEALTH OF
VIRGINIA 
 COUNTY OF                     , ss: 

I,                     , a Notary Public
in and for the aforesaid jurisdiction, do hereby certify that Christopher D. Clemente personally appeared before me in said jurisdiction and acknowledged that he is the Chief Executive Officer of Comstock Holding Companies, Inc., which is the
Manager of Comstock Maxwell Square, L.C., a Virginia limited liability company, party to the foregoing instrument, and that the same is his act and deed and the act and deed of said Comstock Maxwell Square, L.C. 

IN WITNESS WHEREOF, I have set my hand and Notarial Seal, this      day of
            , 2013. 
  

									
		 		 	  

		 		 	Notary Public	 		 	
					
	[SEAL]	 		 	My Commission expires:	 	  
	 	.
					
		 		 	Notary Registration No.	 	  
	 	.

  
 38 

							
		 		 	GUARANTOR:
	Witness:	 		 	
		 		 	COMSTOCK HOLDING COMPANIES, INC., a Delaware corporation
			
	  
	 		 	
	Print Name:	 		 		 	
				
		 		 	By:	 	  

		 		 		 	Christopher D. Clemente
		 		 		 	Chief Executive Officer

 COMMONWEALTH OF VIRGINIA 

COUNTY OF                     , ss: 

I,                     , a Notary Public
in and for the aforesaid jurisdiction, do hereby certify that Christopher D. Clemente personally appeared before me in said jurisdiction and acknowledged that he is the Chief Executive Officer of Comstock Holding Companies, Inc., a Delaware
corporation, party to the foregoing instrument, and that the same is his act and deed and the act and deed of said Comstock Holding Companies, Inc. 

IN WITNESS WHEREOF, I have set my hand and Notarial Seal, this      day of
            , 2013. 
  

									
		 		 	  

		 		 	Notary Public	 		 	
					
	[SEAL]	 		 	My Commission expires:	 	  
	 	.
					
		 		 	Notary Registration No.	 	  
	 	.

  
 39 

							
		 		 	LENDER:
	Witness:	 		 		 	
		 		 	EAGLEBANK
			
	  
	 		 	
	Print Name:	 		 		 	
				
		 		 	By:	 	  

		 		 		 	Jenifer Bush
		 		 		 	Vice President
				
	[SEAL]	 		 		 	

 COMMONWEALTH OF VIRGINIA 

COUNTY OF                     , ss: 

I,                     , a Notary Public
in and for the aforesaid jurisdiction, do hereby certify that Jenifer Bush personally appeared before me in said jurisdiction and acknowledged that she is a Vice President of EAGLEBANK; that she has been duly authorized to execute and deliver the
foregoing instrument for the purposes therein contained and that the same is her act and deed; that the seal affixed to said instrument is such corporate seal and that it was so affixed by order of the Board of Directors of said Bank; and that she
signed her name thereon by like order. 
 IN WITNESS WHEREOF, I have set my hand and Notarial Seal, this      day of
            , 2013. 
  

									
		 		 	  

		 		 	Notary Public	 		 	
					
	[SEAL]	 		 	My Commission expires:	 	  
	 	.
					
		 		 	Notary Registration No.	 	  
	 	.

  
 40

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