Document:

Exhibit 10.60

 Exhibit 10.60 
 AMENDED AND RESTATED INDENTURE 
 between 
 COMSTOCK HOMEBUILDING COMPANIES, INC. 
 and 
 WELLS FARGO BANK, N.A., 
 as Trustee

  
  
 Dated as of March 14, 2008 
  
  

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page
	ARTICLE I        DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION	  	1
			
	 Section 1.1
	  	Definitions	  	1
			
	 Section 1.2
	  	Compliance Certificate and Opinions	  	11
			
	 Section 1.3
	  	Forms of Documents Delivered to Trustee	  	12
			
	 Section 1.4
	  	Acts of Holders	  	12
			
	 Section 1.5
	  	Notices, Etc. to Trustee and Company	  	14
			
	 Section 1.6
	  	Notice to Holders; Waiver	  	14
			
	 Section 1.7
	  	Effect of Headings and Table of Contents	  	15
			
	 Section 1.8
	  	Successors and Assigns	  	15
			
	 Section 1.9
	  	Separability	  	15
			
	 Section 1.10
	  	Benefits of Indenture	  	15
			
	 Section 1.11
	  	Governing Law	  	15
			
	 Section 1.12
	  	Submission to Jurisdiction	  	16
			
	 Section 1.13
	  	Non-Business Days	  	16
			
	 Section 1.14
	  	Counterparts	  	16
		
	ARTICLE II        SENIOR NOTE FORMS	  	16
			
	 Section 2.1
	  	Form of Senior Note	  	16
			
	 Section 2.2
	  	Restrictive Legend	  	21
			
	 Section 2.3
	  	Form of Trustee’s Certificate of Authentication	  	23
			
	 Section 2.4
	  	Temporary Senior Notes	  	23
			
	 Section 2.5
	  	Definitive Senior Notes	  	24
		
	ARTICLE III        THE SENIOR NOTES	  	24
			
	 Section 3.1
	  	Payment of Principal and Interest	  	24
			
	 Section 3.2
	  	Denominations	  	26
			
	 Section 3.3
	  	Execution, Authentication, Delivery and Dating	  	26
			
	 Section 3.4
	  	Global Senior Notes	  	27
			
	 Section 3.5
	  	Registration, Transfer and Exchange Generally	  	29
			
	 Section 3.6
	  	Mutilated, Destroyed, Lost and Stolen Senior Notes	  	31
			
	 Sections 3.7
	  	Persons Deemed Owners	  	31

  

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 TABLE OF CONTENTS 
 (continued) 
  

					
	 	  	 	  	Page
	 Section 3.8
	  	Cancellation	  	32
			
	 Section 3.9
	  	Agreed Tax Treatment	  	32
			
	 Section 3.10
	  	CUSIP Numbers	  	32
		
	ARTICLE IV        SATISFACTION AND DISCHARGE	  	32
			
	 Section 4.1
	  	Satisfaction and Discharge of Indenture	  	32
			
	 Section 4.2
	  	Application of Trust Money	  	34
		
	ARTICLE V        REMEDIES	  	34
			
	 Section 5.1
	  	Events of Default	  	34
			
	 Section 5.2
	  	Acceleration of Maturity; Rescission and Annulment	  	35
			
	 Section 5.3
	  	Collection of Indebtedness and Suits for Enforcement by Trustee	  	36
			
	 Section 5.4
	  	Trustee May File Proofs of Claim	  	36
			
	 Section 5.5
	  	Trustee May Enforce Claim Without Possession of Senior Notes	  	37
			
	 Section 5.6
	  	Application of Money Collected	  	37
			
	 Section 5.7
	  	Limitation on Suits	  	37
			
	 Section 5.8
	  	Unconditional Right of Holders to Receive Principal, Premium, if any, and Interest	  	38
			
	 Section 5.9
	  	Restoration of Rights and Remedies	  	38
			
	 Section 5.10
	  	Rights and Remedies Cumulative	  	38
			
	 Section 5.11
	  	Delay or Omission Not Waiver	  	39
			
	 Section 5.12
	  	Control by Holders	  	39
			
	 Section 5.13
	  	Waiver of Past Defaults	  	39
			
	 Section 5.14
	  	Undertaking for Costs	  	40
			
	 Section 5.15
	  	Waiver of Usury, Stay or Extension Laws	  	40
		
	ARTICLE VI        THE TRUSTEE	  	40
			
	 Section 6.1
	  	Corporate Trustee Required	  	40
			
	 Section 6.2
	  	Certain Duties and Responsibilities	  	41
			
	 Section 6.3
	  	Notice of Defaults	  	42
			
	 Section 6.4
	  	Certain Rights of Trustee	  	42
			
	 Section 6.5
	  	May Hold Senior Notes	  	44

  

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 TABLE OF CONTENTS 
 (continued) 
  

					
	 	  	 	  	Page
	 Section 6.6
	  	Compensation; Reimbursement; Indemnity	  	44
			
	 Section 6.7
	  	Resignation and Removal; Appointment of Successor	  	45
			
	 Section 6.8
	  	Acceptance of Appointment by Successor	  	46
			
	 Section 6.9
	  	Merger, Conversion, Consolidation or Succession to Business	  	46
			
	 Section 6.10
	  	Not Responsible for Recitals or Issuance of Senior Notes	  	47
			
	 Section 6.11
	  	Appointment of Authenticating Agent	  	47
		
	ARTICLE VII        HOLDER’S LISTS AND REPORTS BY COMPANY	  	48
			
	 Section 7.1
	  	Company to Furnish Trustee Names and Addresses of Holders	  	48
			
	 Section 7.2
	  	Preservation of Information, Communications to Holders	  	49
			
	 Section 7.3
	  	Reports by Company	  	49
		
	ARTICLE VIII        CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE	  	50
			
	 Section 8.1
	  	Company May Consolidate, Etc., Only on Certain Terms	  	50
			
	 Section 8.2
	  	Successor Company Substituted	  	51
		
	ARTICLE IX        SUPPLEMENTAL INDENTURES	  	51
			
	 Section 9.1
	  	Supplemental Indentures without Consent of Holders	  	51
			
	 Section 9.2
	  	Supplemental Indentures with Consent of Holders	  	52
			
	 Section 9.3
	  	Execution of Supplemental Indentures	  	53
			
	 Section 9.4
	  	Effect of Supplemental Indentures	  	53
			
	 Section 9.5
	  	Reference in Senior Notes to Supplemental Indentures	  	53
		
	ARTICLE X        COVENANTS	  	53
			
	 Section 10.1
	  	Payment of Principal, Premium, if any, and Interest	  	53
			
	 Section 10.2
	  	Money for Senior Note Payments to be Held in Trust	  	54
			
	 Section 10.3
	  	Statement as to Compliance	  	55
			
	 Section 10.4
	  	Calculation Agent	  	55
			
	 Section 10.5
	  	Additional Covenants	  	56
			
	 Section 10.6
	  	Waiver of Covenants	  	57
			
	 Section 10.7
	  	Treatment of Senior Notes	  	58
			
	 Section 10.8
	  	Limitation on Issuance of Debt	  	58

  

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 TABLE OF CONTENTS 
 (continued) 
  

					
	 	  	 	  	Page
		
	ARTICLE XI        REDEMPTION OF SENIOR NOTES	  	58
			
	 Section 11.1
	  	Optional Redemption and Mandatory Redemptions	  	58
			
	 Section 11.2
	  	Special Event Redemption	  	59
			
	 Section 11.3
	  	Election to Redeem; Notice to Trustee	  	59
			
	 Section 11.4
	  	Selection of Senior Notes to be Redeemed	  	59
			
	 Section 11.5
	  	Notice of Redemption	  	59
			
	 Section 11.6
	  	Deposit of Redemption Price	  	60
			
	 Section 11.7
	  	Payment of Senior Notes Called for Redemption	  	60
		
	ARTICLE XII        SUBORDINATION OF SECURITIES	  	61
			
	 Section 12.1
	  	Senior Notes Subordinate to Permitted Debt	  	61
			
	 Section 12.2
	  	No Payment When Permitted Debt in Default; Payment Over of Proceeds Upon Dissolution, Etc	  	61
			
	 Section 12.3
	  	Payment Permitted if No Proceeding	  	62
			
	 Section 12.4
	  	Subrogation to Rights of Holders of Permitted Debt	  	63
			
	 Section 12.5
	  	Provisions Solely to Define Relative Rights	  	63
			
	 Section 12.6
	  	Trustee to Effectuate Subordination	  	63
			
	 Section 12.7
	  	No Waiver of Subordination Provisions	  	64
			
	 Section 12.8
	  	Notice to Trustee	  	64
			
	 Section 12.9
	  	Reliance on Judicial Order or Certificate of Liquidating Agent	  	65
			
	 Section 12.10
	  	Trustee Not Fiduciary for Holders of Permitted Debt	  	65
			
	 Section 12.11
	  	Rights of Trustee as Holder of Permitted Debt~ Preservation of Trustee’s Rights	  	65
			
	 Section 12.12
	  	Article Applicable to Paying Agents	  	65
		
	ARTICLE XIII        DEFEASANCE	  	66
			
	 Section 13.1
	  	Defeasance and Discharge	  	66
			
	 Section 13.2
	  	Conditions to Defeasance	  	66
			
	 Section 13.3
	  	Deposited Money and U.S. Government Obligations to be Held in Trust; Other Miscellaneous Provisions	  	67
			
	 Section 13.4
	  	Reinstatement	  	67

  

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 TABLE OF CONTENTS 
 (continued) 
  

							
	 	 	 	  	 	  	Page
	 SCHEDULE AND EXHIBITS
	  	
				
	Schedule A	 	-  	  	 Determination of LIBOR	  	
	Exhibit A	 	-  	  	 Form of Officer’s Financial Certificate pursuant to Section 7.3(b)	  	
	Exhibit B	 	-  	  	 Form of Officer’s Certificate pursuant to Section 10.3	  	

  

 -v- 

 AMENDED AND RESTATED INDENTURE 
 This AMENDED AND RESTATED INDENTURE, dated as of March 14, 2008, is between Comstock Homebuilding Companies, Inc., a Delaware corporation (the
“Company”), and Wells Fargo Bank, N.A., as Trustee (in such capacity, the “Trustee”). 
 RECITALS OF THE COMPANY 

 WHEREAS, the Company and the Trustee have executed and delivered the Indenture, dated as of March 15, 2007, as supplemented by the
Supplement to Indenture, dated as of January 7, 2008 (as so supplemented, the “Original Indenture”), pursuant to which the Company’s Senior Notes due 2017 (the “Original Notes”) were issued; 
 WHEREAS, J.P. Morgan Ventures Corporation, the beneficial holder of the Original Notes (the “Original Noteholder”), has consented to the
amendments to the Original Indenture and the Original Notes contained herein, subject to the terms and provisions of this Indenture; 
 WHEREAS, the Company has duly authorized the execution and delivery of this Indenture to provide for the issuance of its senior unsecured notes, and to provide the terms and conditions upon which such senior unsecured notes are to be
authenticated, issued and delivered; and 
 WHEREAS, all things necessary to make this Indenture a valid agreement of the Company, in
accordance with its terms, have been done. 
 NOW, THEREFORE, THIS INDENTURE WITNESSETH: 
 For and in consideration of the premises and the purchase of the Senior Notes by the Holders thereof, it is mutually covenanted and agreed, for the equal
and proportionate benefit of all Holders of the Senior Notes, as follows: 
 ARTICLE I 
 DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION 
 Section 1.1 Definitions. 
 For all purposes of this Indenture, except as otherwise expressly
provided or unless the context otherwise requires: 
 (a) the terms defined in this Article I have the meanings assigned to them in
this Article I; 
 (b) the words “include,” “includes” and “including” shall be deemed to be followed by
the phrase “without limitation”; 
 (c) all accounting terms used but not defined herein have the meanings assigned to them in
accordance with GAAP; 

 (d) unless the context otherwise requires, any reference to an “Article,” a
“Section,” a “Schedule” or an “Exhibit” refers to an Article, a Section, a Schedule or an Exhibit, as the case may be, of or to this Indenture; 
 (e) the words “hereby,” “herein,” “hereof’ and “hereunder” and other words of similar import refer to this
Indenture as a whole and not to any particular Article, Section or other subdivision; 
 (f) a reference to the singular includes the plural
and vice versa; and 
 (g) the masculine, feminine or neuter genders used herein shall include the masculine, feminine and neuter
genders. 
 “Acceptable Repurchase” has the meaning specified in Section 10.5(f). 
 “Acceptable Repurchase Mandatory Redemption Price” has the meaning set forth in Section 11.1(d). 
 “Act” when used with respect to any Holder, has the meaning specified in Section 1.4(a). 
 “Additional Interest” means the interest, if any, that shall accrue on any amounts payable on the Senior Notes, the payment of which has
not been made on the applicable Interest Payment Date and which shall accrue at the rate per annum specified or determined as specified in such Senior Note, in each case to the extent legally enforceable. 
 “Affiliate” of any specified Person means, with respect to such Person or any of its officers or directors, (i) any other Person
directly or indirectly controlling or controlled by or under direct or indirect common control with such specified Person or any officer or director of any such other Person or (ii) with respect to any natural Person, any Person having a
relationship with such Person by blood, marriage or adoption. For the purposes of this definition, “control,” when used with respect to any specified Person, means the power to direct the management and policies of such Person, directly or
indirectly, whether through the ownership of voting securities, by contract or otherwise; and the terms “controlling” and “controlled” have meanings correlative to the foregoing. For the avoidance of doubt, any natural Person
having a relationship by blood, marriage or adoption to any officer or director of the specified Person shall be an “Affiliate” of the specified Person. 
 “Applicable Depositary Procedures” means, with respect to any transfer or transaction involving a Global Senior Note or beneficial interest therein, the rules and procedures of the Depositary for such
Senior Note, in each case to the extent applicable to such transaction and as in effect from time to time. 
 “Authenticating
Agent” means any Person authorized by the Trustee pursuant to Section 6.11 to act on behalf of the Trustee to authenticate the Senior Notes. 
 “Board of Directors” means the board of directors of the Company or any duly authorized committee of that board. 
  

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 “Board Resolution” means a copy of a resolution certified by the Secretary or an
Assistant Secretary of the Company to have been duly adopted by the Board of Directors and to be in full force and effect on the date of such certification. 
 “Breakage Costs” means any and all reasonable costs and fees of any Holder of Senior Notes (including, without limitation, the reasonable fees and expenses of any counsel engaged by such Holder to
enforce the obligations of the Company hereunder) (as determined by such Holder), directly associated or incurred in connection with unwinding, terminating, modifying or otherwise breaking of any interest rate swap or other interest rate hedging
arrangement entered into with respect to the interest rate on the Senior Notes prior to the expiration of the Fixed Rate Period where such unwinding, termination, modification or breaking is caused by the payment or defeasance of principal on the
Senior Notes prior to the expiration of the Fixed Rate Period in connection with a Change-of-Control Election. 
 “Breakage
Gains” means the amount of gain actually realized by any Holder of Senior Notes (as determined by such Holder), directly associated or incurred in connection with unwinding, terminating, modifying or otherwise breaking any interest rate
swap or other interest rate hedging arrangement entered into with respect to the interest rate on the Senior Notes prior to the expiration of the Fixed Rate Period where such unwinding, termination, modification or breaking is caused by the payment
or defeasance of principal on the Senior Notes prior to the expiration of the Fixed Rate Period in connection with a Change-of-Control Election. 
 “Business Day” means any day other than (i) a Saturday or Sunday, (ii) a day on which banking institutions in the City of New York are authorized or required by law or executive order to remain closed or
(iii) a day on which the Corporate Trust Office of the Trustee is closed for business. 
 “Calculation Agent” has the
meaning specified in Section 10.4(a). 
 “Capital Lease” means lease of (or other agreement conveying the right
to use) any real or personal property by a Person that, in conformity with GAAP, is accounted for as a capital lease on the balance sheet of such Person 
 “Change-of-Control” means (i) any person (as such term is used in Sections 13(d) and 14(d) of the Exchange Act), including a “group” as defined in Section 1 3(d)(3) of the Exchange
Act (but excluding a director or other fiduciary holding securities under an employee benefit plan of the Company), becomes the beneficial owner of Equity Interests of the Company having at least fifty percent (50%) of the total number of votes
that may be cast for the election of directors of the Company; (ii) the merger or other business combination of the Company, sale of all or substantially all of the Company’s assets or combination of the foregoing transactions (a
“Transaction”), other than a Transaction immediately following which the shareholders of the Company immediately prior to the Transaction continue to have a majority of the voting power in the resulting entity (excluding for this purpose
any shareholder owning directly or indirectly more than ten percent (10%) of the shares of the other company involved in the Transaction); or (iii) the persons who were directors of the Company on the date hereof (the “Incumbent
Directors”) shall cease to constitute at least a majority of the Board or a majority of the board of directors of any successor to the Company; provided, that, any director who was not a director as 

  

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of the date hereof shall be deemed to be an Incumbent Director if such director was elected to the Board by, or on the recommendation of or with the approval
of, at least two-thirds of the directors who then qualified as Incumbent Directors either actually or by prior operation of this provision, unless such election, recommendation or approval was the result of an actual or threatened election contest
of the type contemplated by Regulation 14a-11 promulgated under the Exchange Act or any successor provision. 
 “Change-of-Control
Election” has the meaning specified in Section 10.5(b). 
 “Change-of-Control Event” means the
occurrence of (i) a Change-of-Control and (ii) a Ratings Downgrade. 
 “Change-of-Control Event Notice” has the
meaning specified in Section 10.5(b). 
 “Change-of-Control Mandatory Redemption Price” has the meaning set
forth in Section 11.1(b). 
 “Change-of-Control Notice” has the meaning specified in Section 10.5(b).

 “Code” means the Internal Revenue Code of 1986 or any successor statute thereto, in each case as amended from time to
time. 
 “Commission” has the meaning specified in Section 7.3(c). 
 “Company” means the Person named as the “Company” in the first paragraph of this Indenture until a successor Person shall have
become such pursuant to the applicable provisions of this Indenture, and thereafter “Company” shall mean such successor Person. 
 “Company Request” and “Company Order” mean, respectively, the written request or order signed in the name of the Company by its Chairman of the Board of Directors, its Vice Chairman of the Board of
Directors, its Chief Executive Officer, President or a Vice President, and by its Chief Financial Officer, its Treasurer, an Assistant Treasurer, its Secretary or an Assistant Secretary, and delivered to the Trustee. 
 “Consolidated Tangible Net Worth” means (i) the consolidated net worth of the Company and its consolidated subsidiaries minus
(ii) the consolidated intangibles of the Company and its consolidated subsidiaries including, without limitation, goodwill, trademarks, trade names, copyrights, patents, patent applications, licenses, and rights in any of the foregoing and
other items treated as intangibles in accordance with generally accepted accounting principles. 
 “Corporate Trust Office”
means the principal office of the Trustee at which at any particular time its corporate trust business shall be administered, which office at the date of this Indenture is located at 919 North Market Street, Suite 1600, Wilmington, Delaware 19801.

 “Debt” means, with respect to any Person, whether recourse is to all or a portion of the assets of such Person, whether
currently existing or hereafter incurred and whether or not contingent and without duplication, (i) every obligation of such Person for money borrowed; (ii) every obligation of such Person evidenced by bonds, debentures, notes or other
similar 

  

 4 

 
instruments, including obligations incurred in connection with the acquisition of property, assets or businesses; (iii) every reimbursement obligation
of such Person with respect to letters of credit, bankers’ acceptances or similar facilities issued for the account of such Person; (iv) every obligation of such Person issued or assumed as the deferred purchase price of property or
services (but excluding trade accounts payable or other accrued liabilities arising in the ordinary course of business); (v) every capital lease obligation of such Person; (vi) all indebtedness of such Person, whether incurred on or prior
to the date of this Indenture or thereafter incurred, for claims in respect of derivative products, including interest rate, foreign exchange rate and commodity forward contracts, options and swaps and similar arrangements; (vii) every
obligation of the type referred to in clauses (i) through (vi) of another Person and all dividends of another Person the payment of which, in either case, such Person has guaranteed or is responsible or liable for, directly or indirectly,
as obligor or otherwise; and (viii) any renewals, extensions, refundings, amendments or modifications of any obligation of the types referred to in clauses (i) through (vii). 
 “Defaulted Interest” has the meaning specified in Section 3.1(c). 
 “Defeasance” has the meaning specified in Section 13.1. 
 “Defeasance Maturity Date” has the meaning specified in Section 13.2. 
 “Defeasance Senior Notes” has the meaning specified in Section 13.1. 
 “Depositary” means an organization registered as a clearing agency under the Exchange Act that is designated as Depositary by the
Company or any successor thereto. DTC will be the initial Depositary. 
 “Depositary Participant” means a broker, dealer,
bank, other financial institution or other Person for whom from time to time a Depositary effects book-entry transfers and pledges of securities deposited with the Depositary. 
 “Dollar” or “$” means the currency of the United States of America that, as at the time of payment, is legal tender for
the payment of public and private debts. 
 “DTC” means The Depository Trust Company, a New York corporation, or any
successor thereto. 
 “EBITDA” means, for any period, the net income (or loss) of the Company and its Subsidiaries for such
period, excluding (a) any gains from the sale, lease, assignment or other transfer for value (each, a “Disposition”) by the Company or any Subsidiary to any Person (other than the Company or any Subsidiary) of any asset
or right of the Company or such Subsidiary (including, the loss, destruction or damage of any thereof or any actual or threatened (in writing to the Company or any Subsidiary) condemnation, confiscation, requisition, seizure or taking thereof) other
than (i) the Disposition of any asset which is to be replaced, and is in fact replaced, within thirty (30) days with another asset performing the same or a similar function, (ii) the sale or lease of inventory in the ordinary course
of business and (iii) other Dispositions in any fiscal year the aggregate cash proceeds (including cash proceeds received pursuant to policies of insurance or by way of deferred payment of principal pursuant to a note, installment receivable

  

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or otherwise, but only as and when received) received by the Company or any Subsidiary pursuant to such Disposition net of (A) the direct costs relating
to such sale, transfer or other disposition (including sales commissions and legal, accounting and investment banking fees), (B) taxes paid or reasonably estimated by the Company to be payable as a result thereof (after taking into account any
available tax credits or deductions and any tax sharing arrangements) and (C) amounts required to be applied to the repayment of any Debt secured by a Lien on the asset subject to such Disposition (other than the Senior Notes) do not in the
aggregate exceed $1,000,000, (b) any extraordinary gains not related to the extinguishment of debt, (c) any gains from discontinued operations and (d) with respect to calculating the Fixed Charge Coverage Ratio in connection with
Section 10.5(e)(i), (ii) and (iii) only, the aggregate amount of all other non-cash items reducing net income (including any non-cash charge incurred as a result of a permanent write-down or impairment of an
asset) for such period, to the extent deducted in determining such net income (or loss), Interest Expense, income tax expense, depreciation and amortization and non-cash management compensation expense for such period. 
 “EDGAR” has the meaning specified in Section 7.3(c). 
 “Equity Interests” means (a) the partnership interests (both common and preferred partnership interests) in a partnership (whether
a general or limited partnership), (b) the membership interests in a limited liability company (both common and preferred membership interests) and (c) the shares or stock interest (both common stock and preferred stock) in a corporation.

 “ERISA” means the Employee Retirement Income Security Act of 1974 or any successor statute thereto, in each case as
amended from time to time. 
 “Event of Default” has the meaning specified in Section 5.1. 
 “Exchange Act” means the Securities Exchange Act of 1934 or any successor statute thereto, in each case as amended from time to time.

 “Expiration Date” has the meaning specified in Section 1.4(h). 
 “Fixed Rate Period” shall have the meaning specified in the form of Senior Note set forth in Section 2.1. 
 “Fixed Charge Coverage Ratio” means, for each period of determination, which period shall be either the four consecutive fiscal quarters
or the one fiscal quarter ending on the last day of a particular fiscal quarter as otherwise indicated herein, the ratio of (a) the total for such period of EBITDA minus the sum of (i) the income taxes paid minus carryback refunds
received by the Company and each of its Subsidiaries and (ii) all unfinanced expenditures which, in accordance with GAAP, would be required to be capitalized and shown on the consolidated balance sheet of the Company, including expenditures in
respect of any Capital Lease to (b) the sum for such period of (i) cash interest paid by the Company during the period plus (ii) management fees paid in cash. 
 “GAAP” means United States generally accepted accounting principles, consistently applied, from time to time in effect. 
  

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 “Global Senior Note” means a Senior Note that evidences all or part of the Senior Notes,
the ownership and transfers of which shall be made through book entries by a Depositary. 
 “Government Obligation” means
(a) any security that is (i) a direct obligation of the United States of America of which the full faith and credit of the United States of America is pledged or (ii) an obligation of a Person controlled or supervised by and acting as
an agency or instrumentality of the United States of America or the payment of which is unconditionally guaranteed as a full faith and credit obligation by the United States of America, which, in either case of clause (i) or (ii), is not
callable or redeemable at the option of the issuer thereof, and (b) any depositary receipt issued by a “bank” (as defined in Section 3(a)(2) of the Securities Act) as custodian with respect to any Government Obligation that is
specified in clause (a) above and held by such bank for the account of the holder of such depositary receipt, or with respect to any specific payment of principal of or interest on any Government Obligation that is so specified and held;
provided, that (except as required by law) such custodian is not authorized to make any deduction from the amount payable to the holder of such depositary receipt from any amount received by the custodian in respect of the Government
Obligation or the specific payment of principal or interest evidenced by such depositary receipt. 
 “Holder” means a Person
in whose name a Senior Note is registered in the Securities Register. 
 “Indenture” means this Amended and Restated
Indenture as originally executed or as it may from time to time be amended or supplemented by one or more amendments or indentures supplemental hereto entered into pursuant to the applicable provisions hereof. 
 “Interest Expense” means consolidated interest expense of the Company and its Subsidiaries for such period (including all imputed
interest on Capital Leases) as reflected on the Company’s income statement for the period. 
 “Interest Payment Date”
means March 30, June 30, September 30 and December 30 of each year, commencing on March 30, 2009 during the term of this Indenture. 
 “Investment Company Act” means the Investment Company Act of 1940 or any successor statute thereto, in each case as amended from time to time. 
 “Leverage Ratio” means at any time, the ratio of Debt of the Company (excluding obligations related to inventory not owned resulting
from consolidations required pursuant to Financial Accounting Standards Board Interpretation No. 46 entitled “Consolidation of Variable Interest Entities, an Interpretation of Accounting Research Bulletin (ARB) No. 51” issued in
January 2003 and revised December 2003, as the same may be revised and amended from time to time) at such time to Consolidated Tangible Net Worth (as reported in the Company’s balance sheet contained in the most recent periodic report filed
with the Commission). 
 “LIBOR” has the meaning specified in Schedule A. 
 “LIBOR Business Day” has the meaning specified in Schedule A. 
 “LIBOR Determination Date” has the meaning specified in Schedule A. 
  

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 “Maturity,” when used with respect to any Senior Note, means the date on which the
principal of such Senior Note or any installment of principal becomes due and payable as therein or herein provided, whether at the Stated Maturity or by declaration of acceleration, call for redemption or otherwise. 
 “Notice of Default” means a written notice of the kind specified in Section 5.1(c). 
 “Officers’ Certificate” means a certificate signed by the Chairman of the Board, a Vice Chairman of the Board, the Chief Executive
Officer, the President or a Vice President, and by the Chief Financial Officer, the Treasurer, an Assistant Treasurer, the Secretary or an Assistant Secretary, of the Company and delivered to the Trustee. 
 “Opinion of Counsel” means a written opinion of counsel, who may be counsel for or an employee of the Company or any Affiliate of the
Company. 
 “Optional Redemption Price” has the meaning set forth in Section 11.1. 
 “Original Indenture” has the meaning set forth in the recitals. 
 “Original Issue Date” means the date of original issuance of each Senior Note or, in the case of the Senior Notes issued in exchange for
the Original Notes, the date of such exchange. 
 “Original Noteholder” has the meaning set forth in the recitals.

 “Original Notes” has the meaning set forth in the recitals. 
 “Outstanding” means, when used in reference to any Senior Notes, as of the date of determination, all Senior Notes theretofore
authenticated and delivered under this Indenture, except: 
 (i) Senior Notes theretofore canceled by the Trustee or delivered to the Trustee
for cancellation; 
 (ii) Senior Notes for whose payment or redemption money in the necessary amount has been theretofore deposited with the
Trustee or any Paying Agent (other than the Company) in trust or set aside and segregated in trust by the Company (if the Company and/or its Affiliate shall act as its own Paying Agent) for the Holders of such Senior Notes; provided, that if
the Company is acting as Paying Agent, Senior Notes for which payment or redemption money has been so deposited in trust with the Paying Agent shall be considered to remain Outstanding until such time as such payment or redemption money has actually
been paid in full to the Holders of such Senior Notes; and provided, further, that, if such Senior Notes are to be redeemed, notice of such redemption has been duly given pursuant to this Indenture or provision therefor satisfactory to the
Trustee has been made~ and (iii) Senior Notes that have been paid or in substitution for or in lieu of which other Senior Notes have been authenticated and delivered pursuant to the provisions of this Indenture, unless proof satisfactory to the
Trustee is presented that any such Senior Notes are held by Holders in whose hands such Senior Notes are valid, binding and legal obligations of the Company; provided, that in determining whether the Holders of the requisite principal amount
of Outstanding Senior Notes have given any request, demand, 

  

 8 

 
authorization, direction, notice, consent or waiver hereunder, Senior Notes owned by the Company or any other obligor upon the Senior Notes or any Affiliate
of the Company or such other obligor shall be disregarded and deemed not to be Outstanding unless the Company shall hold all Outstanding Senior Notes, except that, in determining whether the Trustee shall be protected in relying upon any such
request, demand, authorization, direction, notice, consent or waiver, only Senior Notes that a Responsible Officer of the Trustee actually knows to be so owned shall be so disregarded. Senior Notes so owned that have been pledged in good faith may
be regarded as Outstanding if the pledgee establishes to the satisfaction of the Trustee the pledgee’s right so to act with respect to such Senior Notes and that the pledgee is not the Company or any other obligor upon the Senior Notes or any
Affiliate of the Company or such other obligor. 
 “Paying Agent” means the Trustee or any Person authorized by the Company
to pay the principal of or any premium or interest on, or other amounts in respect of, any Senior Notes on behalf of the Company. 
 “Permitted Debt” means the principal of and any premium and interest on (including interest accruing on or after the filing of any petition in bankruptcy or for reorganization relating to the Company, whether or not such
claim for post-petition interest is allowed in such proceeding) all Debt of the Company, whether incurred on or prior to the date of this Indenture or thereafter incurred, to the extent such Debt is (i) secured by (or has provisions in the loan
documentation of such Debt permitting, upon the occurrence of an “event of default” (as defined in such loan documentation), such debt to become secured by) real property or membership interests of Subsidiaries of the Company the assets of
which primarily consist of real property or, (ii) Debt of a Subsidiary of the Company which is secured by real property and which the Company has guaranteed or is responsible or liable for, directly or indirectly, as obligor or otherwise,
(iii) “working capital” or “revolving” lines of credit with terms of three (3) years or less. 
 “Person” means a legal person, including any individual, corporation, estate, partnership (general or limited), joint venture, association, joint stock company, company, limited liability company, trust, unincorporated
association or government, or any agency or political subdivision thereof, or any other entity of whatever nature. 
 “Place of
Payment” means, with respect to the Senior Notes, the Corporate Trust Office of the Trustee. 
 “Predecessor Senior
Note” of any particular Senior Note means every previous Senior Note evidencing all or a portion of the same debt as that evidenced by such particular Senior Note. For the purposes of this definition, any security authenticated and
delivered under Section 3.6 in lieu of a mutilated, destroyed, lost or stolen Senior Note shall be deemed to evidence the same debt as the mutilated, destroyed, lost or stolen Senior Note. 
 “Proceeding” has the meaning specified in Section 12.2(b). 
 “Purchase Agreement” means the Senior Note Purchase and Redemption Agreement, dated as of the date hereof, between the Company, Kodiak
Warehouse LLC and the Purchaser. 
  

 9 

 “Purchaser” means Kodiak Warehouse JPM LLC, a Delaware limited liability company.

 “Rating Agencies” shall mean (i) Standard & Poor’s Ratings Group, a division of The McGraw-Hill
Companies, mc, (ii) Moody’s Investor Services Inc and (iii) Fitch/IBCA or in each case its respective successor. 
 “Ratings Downgrade” means a downgrading in or withdrawal of the Company’s general corporate rating or the rating accorded to the Company’s debt securities or preferred stock, if any, by any two of the Rating
Agencies as a result of a Change-of-Control. 
 “Redemption Date” means, when used with respect to any Senior Note to be
redeemed, the date fixed for such redemption by or pursuant to this Indenture. 
 “Redemption Price” means, when used with
respect to any Senior Note to be redeemed, in whole or in part, the Acceptable Repurchase Mandatory Redemption Price, the Change-of-Control Mandatory Redemption Price or the Optional Redemption Price, as applicable, at which such Senior Note or
portion thereof is to be redeemed as fixed by or pursuant to this Indenture. 
 “Reference Banks” has the meaning specified
in Schedule A. 
 “Regular Record Date” for the interest payable on any Interest Payment Date with respect to the
Senior Notes means the date that is fifteen (15) days preceding such Interest Payment Date (whether or not a Business Day). 
 “Responsible Officer” means, when used with respect to the Trustee, the officer in the corporate trust department of the Trustee having direct responsibility for the administration of this Indenture. 
 “Rights Plan” means a plan of the Company providing for the issuance by the Company to all holders of its common Equity Interests of
rights entitling the holders thereof to subscribe for or purchase shares or units of any class or series of Equity Interests in the Company which rights (i) are deemed to be transferred with such Equity Interests and (ii) are also issued
in respect of future issuances of such Equity Interests, in each case until the occurrence of a specified event or events. 
 “Securities Act” means the Securities Act of 1933 or any successor statute thereto, in each case as amended from time to time. 
 “Securities Register” and “Securities Registrar” have the respective meanings specified in Section 3.5(a). 
 “Senior Notes” or “Senior Note” means any debt securities or debt security, as the case may be, authenticated and
delivered under this Indenture. 
 “Special Record Date” for the payment of any Defaulted Interest means a date fixed by the
Trustee pursuant to Section 3.1(c). 
 “Stated Maturity” means the fifth anniversary of the date of this
Indenture. 
  

 10 

 “Subsidiary” means a Person more than fifty percent (50%) of the outstanding voting
stock or other voting interests of which is owned, directly or indirectly, by the Company or by one or more other Subsidiaries, or by the Company and one or more other Subsidiaries. For purposes of this definition, “voting stock”
means stock that ordinarily has voting power for the election of directors, whether at all times or only so long as no senior class of stock has such voting power by reason of any contingency. 
 “Trustee” means the Person named as the “Trustee” in the first paragraph of this Indenture, solely in its capacity as such and
not in its individual capacity, until a successor Trustee shall have become such pursuant to the applicable provisions of this Indenture, and, thereafter, “Trustee” shall mean or include each Person who is then a Trustee hereunder.

 “Trust Indenture Act” means the Trust Indenture Act of 1939 or any successor statute thereto, in each case as amended
from time to time. 
 Section 1.2 Compliance Certificate and Opinions. 
 (a) Upon any application or request by the Company to the Trustee to take any action under any provision of this Indenture, the Company shall, if
requested by the Trustee, furnish to the Trustee an Officers’ Certificate stating that all conditions precedent (including covenants compliance with which constitutes a condition precedent), if any, provided for in this Indenture relating to
the proposed action have been complied with and an Opinion of Counsel stating that in the opinion of such counsel all such conditions precedent (including covenants compliance with which constitutes a condition precedent), if any, have been complied
with, except that, in the case of any application or request as to which the furnishing of such documents is specifically required by any provision of this Indenture relating to such particular application or request, no additional certificate or
opinion need be furnished. 
 (b) Every certificate or opinion with respect to compliance with a condition or covenant provided for in this
Indenture (other than the certificate provided pursuant to Section 10.3) shall include: 
 (i) a statement by each individual
signing such certificate or opinion that such individual has read such condition or covenant and the definitions herein relating thereto; 
 (ii) a brief statement as to the nature and scope of the examination or investigation upon which the statements or opinions of such individual contained in such certificate or opinion are based; 
 (iii) a statement that, in the opinion of such individual, he or she has made such examination or investigation as is necessary to enable him or her to
express an informed opinion as to whether or not such condition or covenant has been complied with; and 
 (iv) a statement as to whether, in
the opinion of such individual, such condition or covenant has been complied with. 
  

 11 

 Section 1.3 Forms of Documents Delivered to Trustee. 
 (a) In any case where several matters are required to be certified by, or covered by an opinion of, any specified Person, it is not necessary that all
such matters be certified by, or covered by the opinion of, only one such Person, or that they be so certified or covered by only one document, but one such Person may certify or give an opinion with respect to some matters and one or more other
such Persons as to other matters, and any such Person may certify or give an opinion as to such matters in one or several documents. 
 (b)
Any certificate or opinion of an officer of the Company may be based, insofar as it relates to legal matters, upon a certificate or opinion of~ or representations by, counsel, unless such officer knows, or after reasonable inquiry should know, that
the certificate or opinion or representations with respect to matters upon which his or her certificate or opinion is based are erroneous. Any such certificate or Opinion of Counsel may be based, insofar as it relates to factual matters, upon a
certificate or opinion of, or representations by, an officer or officers of the Company stating that the information with respect to such factual matters is in the possession of the Company, unless such counsel knows, or after reasonable inquiry
should know, that the certificate or opinion or representations with respect to such matters are erroneous. 
 (c) Where any Person is
required to make, give or execute two or more applications, requests, consents, certificates, statements, opinions or other instruments under this Indenture, they may, but need not, be consolidated and form one instrument. 
 (d) Whenever, subsequent to the receipt by the Trustee of any Board Resolution, Officers’ Certificate, Opinion of Counsel or other document or
instrument, a clerical, typographical or other inadvertent or unintentional error or omission shall be discovered therein, a new document or instrument may be substituted therefor in corrected form with the same force and effect as if originally
received in the corrected form and, irrespective of the date or dates of the actual execution and/or delivery thereof, such substitute document or instrument shall be deemed to have been executed and/or delivered as of the date or dates required
with respect to the document or instrument for which it is substituted. Without limiting the generality of the foregoing, any Senior Notes issued under the authority of such defective document or instrument shall nevertheless be the valid
obligations of the Company entitled to the benefits of this Indenture equally and ratably with all other Outstanding Senior Notes. 
 Section 1.4 Acts of Holders. 
 (a) Any request, demand, authorization, direction, notice, consent, waiver or other
action provided by this Indenture to be given to or taken by Holders may be embodied in and evidenced by one or more instruments of substantially similar tenor signed by such Holders in person or by an agent thereof duly appointed in writing and,
except as herein otherwise expressly provided, such action shall become effective when such instrument or instruments (including any appointment of an agent) is or are delivered to the Trustee and, where it is hereby expressly required, to the
Company. Such instrument or instruments (and the action embodied therein and evidenced thereby) are herein sometimes referred to as the “Act” of the Holders signing such instrument or instruments. Proof of execution of any such
instrument or of a writing appointing any such agent shall be sufficient for any purpose of this Indenture and conclusive in favor of the Trustee and the Company, if made in the manner provided in this Section 1.4. 
  

 12 

 (b) The fact and date of the execution by any Person of any such instrument or writing may be proved by
the affidavit of a witness of such execution or by the certificate of any notary public or other officer authorized by law to take acknowledgments of deeds, certifying that the individual signing such instrument or writing acknowledged to him or her
the execution thereof. Where such execution is by a Person acting in other than his or her individual capacity, such certificate or affidavit shall also constitute sufficient proof of his or her authority. The fact and date of the execution by any
Person of any such instrument or writing, or the authority of the Person executing the same, may also be proved in any other manner that the Trustee deems sufficient and in accordance with such reasonable rules as the Trustee may determine.

 (c) The ownership of Senior Notes shall be proved by the Securities Register. 
 (d) Any request, demand, authorization, direction, notice, consent, waiver or other action by the Holder of any Senior Note shall bind every future
Holder of the same Senior Note and the Holder of every Senior Note issued upon the registration of transfer thereof or in exchange therefor or in lieu thereof in respect of anything done or suffered to be done by the Trustee or the Company in
reliance thereon, whether or not notation of such action is made upon such Senior Note. 
 (e) Without limiting the foregoing, a Holder
entitled to take any action hereunder with regard to any particular Senior Note may do so with regard to all or any part of the principal amount of such Senior Note or by one or more duly appointed agents each of which may do so pursuant to such
appointment with regard to all or any part of such principal amount. 
 (f) Except as set forth in paragraph (g) of this
Section 1.4, the Company may set any day as a record date for the purpose of determining the Holders of Outstanding Senior Notes entitled to give, make or take any request, demand, authorization, direction, notice, consent, waiver or
other action provided or permitted by this Indenture to be given, made or taken by Holders of Senior Notes. If any record date is set pursuant to this paragraph, the Holders of Outstanding Senior Notes on such record date, and no other Holders,
shall be entitled to take the relevant action, whether or not such Holders remain Holders after such record date; provided, that no such action shall be effective hereunder unless taken on or prior to the applicable Expiration Date by Holders
of the requisite principal amount of Outstanding Senior Notes on such record date. Nothing in this paragraph shall be construed to prevent the Company from setting a new record date for any action for which a record date has previously been set
pursuant to this paragraph (whereupon the record date previously set shall automatically and with no action by any Person be canceled and of no effect). Promptly after any record date is set pursuant to this paragraph, the Company, at its own
expense, shall cause notice of such record date, the proposed action by Holders and the applicable Expiration Date to be given to the Trustee in writing and to each Holder of Senior Notes in the manner set forth in Section 1.6.

 (g) The Trustee may set any day as a record date for the purpose of determining the Holders of Outstanding Senior Notes entitled to join
in the giving or making of (i) any Notice of Default, (ii) any declaration of acceleration or rescission or annulment thereof referred to in 

  

 13 

 
Section 5.2, (iii) any request to institute proceedings referred to in Section 5.7(b) or (iv) any direction referred to in
Section 5.12. If any record date is set pursuant to this paragraph, the Holders of Outstanding Senior Notes on such record date, and no other Holders, shall be entitled to join in such notice, declaration, request or direction, whether
or not such Holders remain Holders after such record date; provided, that no such action shall be effective hereunder unless taken on or prior to the applicable Expiration Date by Holders of the requisite principal amount of Outstanding
Senior Notes on such record date. Nothing in this paragraph shall be construed to prevent the Trustee from setting a new record date for any action for which a record date has previously been set pursuant to this paragraph (whereupon the record date
previously set shall automatically and with no action by any Person be canceled and of no effect). Promptly after any record date is set pursuant to this paragraph, the Trustee, at the Company’s expense, shall cause notice of such record date,
the proposed action by Holders and the applicable Expiration Date to be given to the Company in writing and to each Holder of Senior Notes in the manner set forth in Section 1.6. 
 (h) With respect to any record date set pursuant to paragraph (f) or (g) of this Section 1.4, the party hereto that sets such
record date may designate any day as the “Expiration Date” and from time to time may change the Expiration Date to any earlier or later day; provided, that no such change shall be effective unless notice of the proposed new
Expiration Date is given to the other party hereto in writing, and to each Holder of Senior Notes in the manner set forth in Section 1.6, on or prior to the existing Expiration Date. If an Expiration Date is not designated with respect
to any record date set pursuant to this Section 1.4, the party hereto that set such record date shall be deemed to have initially designated the ninetieth (90th) day after such record date as the Expiration Date with respect
thereto, subject to its right to change the Expiration Date as provided in this paragraph. Notwithstanding the foregoing, no Expiration Date shall be later than the one hundred eightieth (180th) day after the applicable record date. 

Section 1.5 Notices, Etc. to Trustee and Company. 
 Any request, demand, authorization, direction, notice, consent, waiver, Act of Holders, or other document provided or permitted by this Indenture to be made upon, given or furnished to, or filed with: 
 (a) the Trustee by any Holder or the Company shall be sufficient for every purpose hereunder if made, given, furnished or filed in writing to or with and
received by the Trustee at its Corporate Trust Office; or 
 (b) the Company by the Trustee or any Holder shall be sufficient for every
purpose hereunder if in writing and mailed, first class, postage prepaid, to the Company addressed to it at 11465 Sunset Hills Road, Suite 510, Reston, Virginia 20190 or at any other address previously furnished in writing to the Trustee by the
Company. 
 Section 1.6 Notice to Holders; Waiver. 
 Where this Indenture provides for notice to Holders of any event, such notice shall be sufficiently given (unless otherwise herein expressly provided) if in writing and mailed, first class, postage prepaid, to each
Holder affected by such event to the address of such Holder as it 

  

 14 

 
appears in the Securities Register, not later than the latest date (if any), and not earlier than the earliest date (if any), prescribed for the giving of
such notice. If, by reason of the suspension of or irregularities in regular mail service or for any other reason, it shall be impossible or impracticable to mail notice of any event to Holders when said notice is required to be given pursuant to
any provision of this Indenture, then any manner of giving such notice as shall be satisfactory to the Trustee shall be deemed to be a sufficient giving of such notice. In any case where notice to Holders is given by mail, neither the failure to
mail such notice, nor any defect in any notice so mailed, to any particular Holder shall affect the sufficiency of such notice with respect to other Holders. Where this Indenture provides for notice in any manner, such notice may be waived in
writing by the Person entitled to receive such notice, either before or after the event, and such waiver shall be the equivalent of such notice. Waivers of notice by Holders shall be filed with the Trustee, but such filing shall not be a condition
precedent to the validity of any action taken in reliance upon such waiver. 
 Section 1.7 Effect of Headings and Table of
Contents. 
 The Article and Section headings herein and the Table of Contents are for convenience only and shall not affect the
construction of this Indenture. 
 Section 1.8 Successors and Assigns. 
 This Indenture shall be binding upon and shall inure to the benefit of any successor to the Company and the Trustee, including any successor by operation
of law. Except in connection with a transaction involving the Company that is permitted under Article VIII and pursuant to which the assignee agrees in writing to perform the Company’s obligations hereunder, the Company shall not assign
its obligations hereunder. 
 Section 1.9 Separability. 
 If any provision in this Indenture or in the Senior Notes shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the
remaining provisions shall not in any way be affected or impaired thereby, and there shall be deemed substituted for the provision at issue a valid, legal and enforceable provision as similar as possible to the provision at issue. 
 Section 1.10 Benefits of Indenture. 
 Nothing in this Indenture or in the Senior Notes, express or implied, shall give to any Person, other than the parties hereto and their successors and assigns, the Holders of the Senior Notes and, solely to the extent set forth herein, the
holders of Permitted Debt, any benefit or any legal or equitable right, remedy or claim under this Indenture. 
 Section 1.11
Governing Law. 
 This Indenture and the rights and obligations of each of the Holders, the Company and the Trustee shall be construed
and enforced in accordance with and governed by the laws of the State of New York without reference to its conflict of laws provisions (other than Section 5-1401 of the General Obligations Law). 
  

 15 

 Section 1.12 Submission to Jurisdiction. 
 ANY LEGAL ACTION OR PROCEEDING BY OR AGAINST ANY PARTY HERETO OR WITH RESPECT TO OR ARISING OUT OF THIS INDENTURE MAY BE BROUGHT IN OR REMOVED TO THE
COURTS OF THE STATE OF NEW YORK, IN AND FOR THE COUNTY OF NEW YORK, OR OF THE UNITED STATES OF AMERICA FOR THE SOUTHERN DISTRICT OF NEW YORK (IN EACH CASE SITTING IN THE BOROUGH OF MANHATTAN). BY EXECUTION AND DELIVERY OF THIS INDENTURE, EACH PARTY
ACCEPTS, FOR ITSELF AND IN RESPECT OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, THE JURISDICTION OF THE AFORESAID COURTS (AND COURTS OF APPEALS THEREFROM) FOR LEGAL PROCEEDINGS ARISING OUT OF OR IN CONNECTION WITH THIS INDENTURE. 
 Section 1.13 Non-Business Days. 
 If any Interest Payment Date, Redemption Date or Stated Maturity of any Senior Note shall not be a Business Day, then (notwithstanding any other provision of this Indenture or the Senior Notes) payment of interest, premium, if any, or
principal or other amounts in respect of such Senior Note shall not be made on such date, but shall be made on the next succeeding Business Day (and interest shall accrue in respect of the amounts whose payment is so delayed for the period from and
after such Interest Payment Date, Redemption Date or Stated Maturity, as the case may be, until such next succeeding Business Day) except that, if such Business Day falls in the next succeeding calendar year, such payment shall be made on the
immediately preceding Business Day, in each case with the same force and effect as if made on the Interest Payment Date or Redemption Date or at the Stated Maturity. 
 Section 1.14 Counterparts. 
 This Indenture may be executed in any number of counterparts, each
of which so executed shall be deemed to be an original, but all such counterparts shall together constitute but one and the same instrument. 
 ARTICLE II 
 SENIOR NOTE FORMS 
 Section 2.1 Form of Senior Note. 
 Any Senior Note issued hereunder shall be in substantially the
following form: 
 COMSTOCK HOMEBUILDING COMPANIES, INC. 
 Senior Note due 2013 
  

			
	No.                 	 	$             

 Comstock Homebuilding Companies, Inc., a corporation organized and existing under the laws of
Delaware (hereinafter called the “Company,” which term includes any successor Person 

  

 16 

 
under the Indenture hereinafter referred to), for value received, hereby promises to pay to
[            ], or registered assigns, the principal sum of [PRINCIPAL AMOUNT]
($[            ]) [IF THE SECURITY IS A GLOBAL SECURITY, THEN INSERT: or such other principal amount represented hereby as may be set forth in the records of the
Securities Registrar hereinafter referred to in accordance with the Indenture] on             , 2013 [insert fifth anniversary of the date of the Indenture]. The Company further
promises to pay interest on said principal sum from and including January 1, 2009, or from and including the most recent Interest Payment Date to which interest has been paid or duly provided for, quarterly in arrears, to but excluding the
succeeding Interest Payment Date, on March 30, June 30, September 30 and December 30 of each year, commencing March 30, 2009, or if any such day is not a Business Day, on the next succeeding Business Day (and
interest shall accrue in respect of the amounts whose payment is so delayed for the period from and after such Interest Payment Date until such next succeeding Business Day), except that, if such Business Day falls in the next succeeding calendar
year, such payment shall be made on the immediately preceding Business Day, in each case, with the same force and effect as if made on the Interest Payment Date, at a fixed rate equal to 9.72% per annum through
            , 2010 [insert second anniversary of the date of the Indenture] (“Fixed Rate Period”) and thereafter at a variable rate, reset quarterly, equal to LIBOR
plus (i) 6.20% per annum, until             , 2012 [insert fourth anniversary of the date of the Indenture], and (ii) 8.20% per annum thereafter until the
principal hereof is paid or duly provided for or made available for payment; provided, that any overdue principal, premium, if any, and any overdue installment of interest shall bear Additional Interest at the rate of interest then borne by
the Senior Notes (to the extent that the payment of such interest shall be legally enforceable), compounded quarterly, from and including the dates such amounts are due to but excluding the dates such amounts are paid or made available for payment,
and such interest shall be payable on demand. 
 During the Fixed Rate Period, the amount of interest payable for any interest period shall
be computed on the basis of a three hundred sixty (360)-day year of twelve (12) thirty (30)-day months and the amount payable for any partial period shall be computed on the basis of the actual number of days elapsed in a three hundred sixty
(360)-day year of twelve (12) thirty (3 0)-day months. Upon expiration of the Fixed Rate Period, the amount of interest payable for any interest period will be computed on the basis of a three hundred sixty (360)-day year and the actual number
of days elapsed in the relevant interest period. The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date shall, as provided in the Indenture, be paid to the Person in whose name this Senior Note (or one or
more Predecessor Senior Notes) is registered at the close of business on the Regular Record Date for such interest installment. Any such interest not so punctually paid or duly provided for shall forthwith cease to be payable to the Holder on such
Regular Record Date and may either be paid to the Person in whose name this Senior Note (or one or more Predecessor Senior Notes) is registered at the close of business on a Special Record Date for the payment of such Defaulted Interest to be fixed
by the Trustee, notice whereof shall be given to Holders of Senior Notes not less than ten (10) days prior to such Special Record Date, or be paid at any time in any other lawful manner not inconsistent with the requirements of any securities
exchange or automated quotation system on which the Senior Notes may be listed, traded or quoted and upon such notice as may be required by such exchange or automated quotation system, all as more fully provided in the Indenture. 
  

 17 

 During an Event of Default, the Company shall not (i) declare or pay any dividends or distributions
on, or redeem, purchase, acquire or make a liquidation payment with respect to, any Equity Interests of the Company, (ii) vote in favor of or permit or otherwise allow any of its Subsidiaries to declare or pay any dividends or distributions on,
or redeem, purchase, acquire or make a liquidation payment with respect to or otherwise retire, any preferred Equity Interests of such Subsidiaries or other Equity Interests entitling the holders thereof to a stated rate of return (for the avoidance
of doubt, whether such preferred Equity Interests are perpetual or otherwise) or (iii) make any payment of principal of or any interest or premium, if any, on or repay, repurchase or redeem any Debt of the Company other than Permitted Debt
(other than (A) repurchases, redemptions or other acquisitions of Equity Interests of the Company in connection with (1) any employment contract, benefit plan or other similar arrangement with or for the benefit of any one or more
employees, officers, directors or consultants, (2) a dividend reinvestment or Equity Interests purchase plan or (3) the issuance of Equity Interests in the Company (or securities convertible into or exercisable for such Equity Interests)
as consideration in an acquisition transaction entered into prior to the applicable Event of Default, (B) as a result of an exchange, conversion reclassification or combination of any class or series of the Company’s Equity Interests (or
any Equity Interests in a Subsidiary of the Company) for, of or with any class or series of the Company’s Equity Interests or of any class or series of the Company’s indebtedness for any class or series of the Company’s Equity
Interests, (C) the purchase of fractional interests in the Equity Interests of the Company pursuant to the conversion or exchange provisions of such Equity Interests or the security being converted or exchanged, (D) any declaration of a
dividend in connection with any Rights Plan, the issuance of rights, Equity Interests or other property under any Rights Plan or the redemption or repurchase of rights pursuant thereto or (E) any dividend in the form of Equity Interests,
warrants, options or other rights where the dividend Equity Interest or the Equity Interest issuable upon exercise of such warrants, options or other rights is the same Equity Interest as that on which the dividend is being paid or ranks pari
passu with or junior to such Equity Interest). 
 Payment of principal of, premium, if any, and interest on this Senior Note shall be
made in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts. Payments of principal, premium, if any, and interest due at the Maturity of this Senior Note shall be
made at the Place of Payment upon surrender of such Senior Notes to the Paying Agent, and payments of interest shall be made, subject to such surrender where applicable, by wire transfer at such place and to such account at a banking institution in
the United States as may be designated in writing to the Paying Agent at least ten (10) Business Days prior to the date for payment by the Person entitled thereto unless proper written transfer instructions have not been received by the
relevant record date, in which case such payments shall be made by check mailed to the address of such Person as such address shall appear in the Security Register. 
 The indebtedness evidenced by this Senior Note is, to the extent provided in the Indenture, subordinate and junior in right of payment to the prior payment in full of all Permitted Debt, and this Senior Note is issued
subject to the provisions of the Indenture with respect thereto. Each Holder of this Senior Note, by accepting the same, (a) agrees to and shall be bound by such provisions, (b) authorizes and directs the Trustee on his, her or its behalf
to take such actions as may be necessary or appropriate to effectuate the subordination so provided and (c) appoints the Trustee his, her or its attorney-in-fact for any and all such purposes. Each Holder 

  

 18 

 
hereof, by his, her or its acceptance hereof, waives all notice of the acceptance of the subordination provisions contained herein and in the Indenture by
each holder of Permitted Debt, whether now outstanding or hereafter incurred, and waives reliance by each such holder upon said provisions. 
 Unless the certificate of authentication hereon has been executed by the Trustee by manual signature, this Senior Note shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose. 
 [FORM OF REVERSE OF SECURITY] 
 This Senior
Note is one of a duly authorized issue of securities of the Company (the “Senior Notes”) issued under the Amended and Restated Indenture, dated as of             ,
2008 (the “Indenture”), between the Company and Wells Fargo Bank, N.A., as Trustee (in such capacity, the “Trustee,” which term includes any successor trustee under the Indenture), to which Indenture and all
indentures supplemental thereto reference is hereby made for a statement of the respective rights, limitations of rights, duties and immunities thereunder of the Company, the Trustee and the Holders of the Senior Notes, and of the terms upon which
the Senior Notes are, and are to be, authenticated and delivered. All terms used in this Senior Note that are defined in the Indenture shall have the meanings assigned to them in the Indenture. 
 The Company may, on any Interest Payment Date, at its option, upon not less than thirty (30) days’ nor more than sixty (60) days’
written notice to the Holders of the Senior Notes, subject to the terms and conditions of Article XI of the Indenture, redeem this Senior Note in whole at any time or, subject to the consent of the Holders, in part from time to time in each case at
a Redemption Price equal to one hundred percent (100%) of the principal amount hereof (or of the redeemed portion hereof, as applicable), together, in the case of any such redemption, with accrued and unpaid interest, including any Additional
Interest, to but excluding the date fixed as the Redemption Date and plus all Breakage Costs. 
 Further, the Company shall, upon receipt of
a Change-of-Control Election after June 30, 2011, redeem the Senior Notes in whole on a date no more than thirty (30) days after receipt of the Change-of-Control Election, at a Redemption Price equal to one hundred percent (100%) of
the principal amount thereof, together, in the case of any such redemption, with accrued and unpaid interest, including any Additional Interest, to hut excluding the date fixed as the Redemption Date. The Company shall in connection with an
Acceptable Repurchase, redeem a portion of the Senior Notes at a Redemption Price equal to one hundred percent (100%) of the principal amount thereof, together, in the case of any such redemption, with accrued and unpaid interest, including any
Additional Interest, to but excluding the date fixed as the Redemption Date, and plus all Breakage Costs. 
 In the event of redemption of
this Senior Note in part only, a new Senior Note or Senior Notes for the unredeemed portion hereof will be issued in the name of the Holder hereof upon the cancellation hereof. If less than all the Senior Notes are to be redeemed, the particular
Senior Notes to be redeemed shall be selected not more than sixty (60) days prior to the Redemption 

  

 19 

 
Date by the Trustee from the Outstanding Senior Notes not previously called for redemption, by such method as the Trustee shall deem fair and appropriate and
which may provide for the selection for redemption of a portion of the principal amount of any Senior Note. 
 The Indenture permits, with
certain exceptions as therein provided, the Company and the Trustee at any time to enter into a supplemental indenture or indentures for the purpose of modifying in any manner the rights and obligations of the Company and of the Holders of the
Senior Notes, with the consent of the Holders of not less than a majority in principal amount of the Outstanding Senior Notes. The Indenture also contains provisions permitting Holders of specified percentages in principal amount of the Senior
Notes, on behalf of the Holders of all Senior Notes, to waive compliance by the Company with certain provisions of the Indenture and certain past defaults under the Indenture and their consequences. Any such consent or waiver by the Holder of this
Senior Note shall be conclusive and binding upon such Holder and upon all future Holders of this Senior Note and of any Senior Note issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of
such consent or waiver is made upon this Senior Note. 
 No reference herein to the Indenture and no provision of this Senior Note or of the
Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of and any premium, if any, and interest, including any Additional Interest (to the extent legally enforceable), on this Senior
Note at the times, place and rate, and in the coin or currency. herein prescribed. 
 As provided in the Indenture and subject to certain
limitations therein set forth, the transfer of this Senior Note is restricted to transfers to “Qualified Purchasers” (as such term is defined in the Investment Company Act of 1940, as amended) and is registrable in the Senior Notes
Register, upon surrender of this Senior Note for registration of transfer at the office or agency of the Company maintained for such purpose, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Company
and the Securities Registrar and duly executed by, the Holder hereof or such Holder’s attorney duly authorized in writing, and thereupon one or more new Senior Notes, of like tenor, of authorized denominations and for the same aggregate
principal amount, will be issued to the designated transferee or transferees. 
 The Senior Notes are issuable only in registered form
without coupons in minimum denominations of $100,000 and any integral multiple of $1,000 in excess thereof As provided in the Indenture and subject to certain limitations therein set forth, Senior Notes are exchangeable for a like aggregate
principal amount of Senior Notes and of like tenor of a different authorized denomination, as requested by the Holder surrendering the same. 
 No service charge shall be made for any such registration of transfer or exchange, but the Company may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith. 
 The Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose name this Senior Note is registered as the owner
hereof for all purposes, whether or not this Senior Note be overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the contrary. 
  

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 The Company and, by its acceptance of this Senior Note or a beneficial interest herein, the Holder of,
and any Person that acquires a beneficial interest in, this Senior Note agree that, for United States federal, state and local tax purposes, it is intended that this Senior Note constitute indebtedness. 
 This Senior Note shall be construed and enforced in accordance with and governed by the laws of the State of New York without reference to its
conflict of laws provisions (other than Section 5-1401 of the General Obligations Law). 
 IN WITNESS WHEREOF, the Company has
caused this instrument to be duly executed on this [DAY] day of [MONTH], [YEAR]. 
  

			
	 COMSTOCK HOMEBUILDING
 COMPANIES,
INC.

		
	By:	 	  

	Name:	 	  

	Title:	 	  

 Section 2.2 Restrictive Legend. 
 (a) Any Senior Note issued hereunder shall bear a legend in substantially the following form: 
 [IF THIS SECURITY IS A GLOBAL SECURITY INSERT: “THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED
TO AND IS REGISTERED IN THE NAME OF THE DEPOSITORY TRUST COMPANY (“DTC”) OR A NOMINEE OF DTC. THIS SECURITY IS EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN DTC OR ITS NOMINEE ONLY IN THE LIMITED
CIRCUMSTANCES DESCRIBED IN THE INDENTURE, AND NO TRANSFER OF THIS SECURITY (OTHER THAN A TRANSFER OF THIS SECURITY AS A WHOLE BY DTC TO A NOMINEE OF DTC OR BY A NOMINEE OF DTC TO DTC OR ANOTHER NOMINEE OF DTC) MAY BE REGISTERED EXCEPT IN LIMITED
CIRCUMSTANCES. 
 UNLESS THIS SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF DTC TO THE ISSUER OR ITS AGENT FOR REGISTRATION
OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY SECURITY ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT HEREON IS MADE TO CEDE & CO. OR TO SUCH
OTHER ENTITY AS IS REQUESTED BY AN 

  

 21 

 
AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE
REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.] 
 THE SECURITIES REPRESENTED BY THIS CERTIFICATE WERE ORIGINALLY
IS SUED IN A TRANSACTION EXEMPT FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND SUCH SECURITIES, AND ANY INTEREST THEREIN, MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE
OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH PURCHASER OF ANY SECURITIES IS HEREBY NOTIFIED THAT THE SELLER OF THE SECURITIES MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE
144A UNDER THE SECURITIES ACT. 
 THE HOLDER OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE AGREES FOR THE BENEFIT OF THE COMPANY THAT
(A) SUCH SECURITIES MAY BE OFFERED, RESOLD OR OTHERWISE TRANSFERRED ONLY (I) TO THE COMPANY, (II) TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS (a) A “QUALIFIED INSTITUTIONAL BUYER” (AS DEFINED IN RULE 144A TINDER THE
SECURITIES ACT) AND (b) A “QUALIFIED PURCHASER” (AS DEFINED IN SECTION 2(a)(51) OF THE INVESTMENT COMPANY ACT OF 1940, AS AMENDED) OR (III) TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A “QUALIFIED PURCHASER “ (AS
DEFINED IN SECTION 2(a)(51) OF THE INVESTMENT COMPANY ACT OF 1940, AS AMENDED) AND (B) THE HOLDER WILL NOTIFY ANY PURCHASER OF ANY SECURITIES FROM IT OF THE RESALE RESTRICTIONS REFERRED TO IN (A) ABOVE. 
 THE SECURITIES WILL BE ISSUED AND MAY BE TRANSFERRED ONLY IN B LOCKS HAVING AN AGGREGATE PRINCIPAL AMOUNT OF NOT LESS THAN $100,000. TO THE FULLEST EXTENT
PERMITTED BY LAW, ANY ATTEMPTED TRANSFER OF SECURITIES, OR ANY INTEREST THEREIN, IN A BLOCK HAVING AN AGGREGATE PRINCIPAL AMOUNT OF LESS THAN $100,000 AND MULTIPLES OF $1,000 IN EXCESS THEREOF SHALL BE DEEMED TO BE VOID AND OF NO LEGAL EFFECT
WHATSOEVER. TO THE FULLEST EXTENT PERMITTED BY LAW, ANY SUCH PURPORTED TRANSFEREE SHALL BE DEEMED NOT TO BE THE HOLDER OF SUCH SECURITIES FOR ANY PURPOSE, INCLUDING, BUT NOT LIMITED TO, THE RECEIPT OF PRINCIPAL OF OR INTEREST ON SUCH SECURITIES, OR
ANY INTEREST THEREIN, AND SUCH PURPORTED TRANSFEREE SHALL BE DEEMED TO HAVE NO INTEREST WHATSOEVER IN SUCH SECURITIES. 
 THE HOLDER OF THIS
SECURITY, OR ANY INTEREST THEREIN, BY ITS ACCEPTANCE HEREOF OR THEREOF ALSO AGREES, REPRESENTS AND WARRANTS THAT IT IS NOT AN EMPLOYEE BENEFIT PLAN, INDIVIDUAL 

  

 22 

 
RETIREMENT ACCOUNT OR OTHER PLAN OR ARRANGEMENT SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED
(“ERISA”), OR SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”), OR SIMILAR LAW (EACH A “PLAN”), OR AN ENTITY WHOSE UNDERLYING ASSETS INCLUDE “PLAN ASSETS” BY
REASON OF ANY PLAN’S INVESTMENT IN THE ENTITY, AND NO PERSON INVESTING “PLAN ASSETS” OF ANY PLAN MAY ACQUIRE OR HOLD THIS SECURITY OR ANY INTEREST THEREIN. ANY PURCHASER OR HOLDER OF THE SECURITIES OR ANY INTEREST THEREIN WILL BE
DEEMED TO HAVE REPRESENTED BY ITS PURCHASE AND HOLDING THEREOF THAT IT IS NOT AN EMPLOYEE BENEFIT PLAN WITHIN THE MEANING OF SECTION 3(3) OF ERISA, OR A PLAN TO WHICH SECTION 4975 OF THE CODE IS APPLICABLE, A TRUSTEE OR OTHER PERSON ACTING ON BEHALF
OF AN EMPLOYEE BENEFIT PLAN OR PLAN, OR ANY OTHER PERSON OR ENTITY USING THE ASSETS OF ANY EMPLOYEE BENEFIT PLAN OR PLAN TO FINANCE SUCH PURCHASE.” 
 (b) The above legends shall not be removed from any Senior Note unless there is delivered to the Company satisfactory evidence, which may include an Opinion of Counsel, as may be reasonably required to ensure that any
future transfers thereof may be made without restriction under or violation of the provisions of the Securities Act and other applicable law. Upon provision of such satisfactory evidence, the Company shall execute and deliver to the Trustee, and the
Trustee shall deliver, upon receipt of a Company Order directing it to do so, a Senior Note that does not bear the legend. 
 Section 2.3 Form of Trustee’s Certificate of Authentication. 
 The Trustee’s certificate of authentication
shall be in substantially the following form: 
 This is one of the Senior Notes referred to in the within-mentioned Indenture. 
  

					
	Dated:	    	
		    	WELLS FARGO BANK, N.A., not in its individual capacity, but solely as Trustee
			
		    	By:	 	  

		    	Name:	 	
		    	Title:	 	

 Section 2.4 Temporary Senior Notes. 
 (a) Pending the preparation of definitive Senior Notes, the Company may execute, and upon Company Order the Trustee shall authenticate and deliver,
temporary Senior Notes that are printed, lithographed, typewritten, mimeographed or otherwise produced, in any denomination, substantially of the tenor of the definitive Senior Notes in lieu of which they are 

  

 23 

 
issued and with such appropriate insertions, omissions, substitutions and other variations as the officers executing such Senior Notes may determine, as
evidenced by their execution of such Senior Notes. 
 (b) If temporary Senior Notes are issued, the Company will cause definitive Senior
Notes to be prepared without unreasonable delay. After the preparation of definitive Senior Notes, the temporary Senior Notes shall be exchangeable for definitive Senior Notes upon surrender of the temporary Senior Notes at the office or agency of
the Company designated for that purpose without charge to the Holder. Upon surrender for cancellation of any one or more temporary Senior Notes, the Company shall execute and the Trustee shall authenticate and deliver in exchange therefor one or
more definitive Senior Notes of any authorized denominations having the same Original Issue Date and Stated Maturity and having the same terms as such temporary Senior Notes. Until so exchanged, the temporary Senior Notes shall in all respects be
entitled to the same benefits under this Indenture as definitive Senior Notes. 
 Section 2.5 Definitive Senior Notes.

 The definitive Senior Notes shall be printed, lithographed or engraved, or produced by any combination of these methods, if required by any
securities exchange on which the Senior Notes may be listed, on a steel engraved border or steel engraved borders or may be produced in any other manner permitted by the rules of any securities exchange on which the Senior Notes may be listed, all
as determined by the officers executing such Senior Notes, as evidenced by their execution of such Senior Notes. 
 ARTICLE III

 THE SENIOR NOTES 
 Section 3.1 Payment of Principal and Interest. 
 (a) The unpaid principal amount of the Senior Notes shall bear interest
at a fixed rate equal to 9.72% per annum through the second anniversary of the date of this Indenture (“Fixed Rate Period”) and thereafter at a variable rate, reset quarterly, equal to LIBOR plus (i) 6.20% per annum,
until the fourth anniversary of the date of this Indenture, and (ii) 8.20% per annum thereafter until the principal thereof is paid or duly provided for, such interest to accrue from and including January 1, 2009 or from and including
the most recent Interest Payment Date to which interest has been paid or duly provided for to but excluding the succeeding Interest Payment Date, and any overdue principal, premium, if any, and any overdue installment of interest shall bear
Additional Interest at the rate of interest then borne by the Senior Notes, compounded quarterly from and including the dates such amounts are due to but excluding the dates such amounts are paid or funds for the payment thereof are made available
for payment. 
 (b) Interest and Additional Interest on any Senior Note that is payable, and is punctually paid or duly provided for, on any
Interest Payment Date shall be paid to the Person in whose name that Senior Note (or one or more Predecessor Senior Notes) is registered at the close of business on the Regular Record Date for such interest, except that interest and any Additional
Interest payable on the Stated Maturity (or any date of principal repayment upon early maturity) 

  

 24 

 
of the principal of a Senior Note or on a Redemption Date shall be paid to the Person to whom principal is paid. The initial payment of interest on any
Senior Note that is issued between a Regular Record Date and the related Interest Payment Date shall be payable as provided in such Senior Note. 
 (c) Any interest on any Senior Note that is due and payable, but is not timely paid or duly provided for, on any Interest Payment Date for Senior Notes (herein called “Defaulted Interest”) shall forthwith cease to be
payable to the registered Holder on the relevant Regular Record Date by virtue of having been such Holder, and such Defaulted Interest may be paid by the Company, at its election in each case, as provided in paragraph (i) or (ii) below:

 (i) The Company may elect to make payment of any Defaulted Interest to the Persons in whose names the Senior Notes (or their respective
Predecessor Senior Notes) are registered at the close of business on a Special Record Date for the payment of such Defaulted Interest (a “Special Record Date”), which shall be fixed in the following manner. At least thirty
(30) days prior to the date of the proposed payment, the Company shall notify the Trustee in writing of the amount of Defaulted Interest proposed to be paid on each Senior Note and the date of the proposed payment, and at the same time the
Company shall deposit with the Trustee an amount of money equal to the aggregate amount proposed to be paid in respect of such Defaulted Interest or shall make arrangements satisfactory to the Trustee for such deposit prior to the date of the
proposed payment, such money when deposited to be held in trust for the benefit of the Persons entitled to such Defaulted Interest. Thereupon the Trustee shall fix a Special Record Date for the payment of such Defaulted Interest, which shall be not
more than fifteen (15) days and not less than ten (10) days prior to the date of the proposed payment and not less than ten (10) days after the receipt by the Trustee of the notice of the proposed payment. The Trustee shall promptly
notify the Company of such Special Record Date and, in the name and at the expense of the Company, shall cause notice of the proposed payment of such Defaulted Interest and the Special Record Date therefor to be mailed, first class, postage prepaid,
to each Holder of a Senior Note at the address of such Holder as it appears in the Securities Register not less than ten (10) days prior to such Special Record Date. Notice of the proposed payment of such Defaulted Interest and the Special
Record Date therefor having been so mailed, such Defaulted Interest shall be paid to the Persons in whose names the Senior Notes (or their respective Predecessor Senior Notes) are registered on such Special Record Date; or 
 (ii) The Company may make payment of any Defaulted Interest in any other lawful manner not inconsistent with the requirements of any securities exchange
or automated quotation system on which the Senior Notes may be listed, traded or quoted and, upon such notice as may be required by such exchange or automated quotation system (or by the Trustee if the Senior Notes are not listed), if, after notice
given by the Company to the Trustee of the proposed payment pursuant to this clause, such payment shall be deemed practicable by the Trustee. 
 (d) Payments of interest on the Senior Notes shall include interest accrued to but excluding the respective Interest Payment Dates. During the Fixed Rate Period, the amount of interest payable for any interest period shall be computed on
the basis of a three hundred sixty (360)-day year of twelve (12) thirty (30)-day months and the amount payable for any partial period shall be computed on the basis of the actual number of days elapsed in a three hundred 

  

 25 

 
sixty (360)-day year of twelve (12) thirty (30)-day months. Upon expiration of the Fixed Rate Period, the amount of interest payable for any interest
period will be computed on the basis of a three hundred sixty (360)-day year and the actual number of days elapsed in the relevant interest period. 
 (e) Payment of principal of, premium, if any, and interest on the Senior Notes shall be made in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts.
Payments of principal, premium, if any, and interest due at the Maturity of such Senior Notes shall be made at the Place of Payment upon surrender of such Senior Notes to the Paying Agent and payments of interest shall be made, subject to such
surrender where applicable, by wire transfer at such place and to such account at a banking institution in the United States as may be designated in writing to the Paying Agent at least ten (10) Business Days prior to the date for payment by
the Person entitled thereto unless proper written transfer instructions have not been received by the relevant record date, in which case such payments shall be made by check mailed to the address of such Person as such address shall appear in the
Security Register. 
 (f) The parties hereto acknowledge and agree that the Holders have certain rights to direct the Company to modify the
Interest Payment Dates and corresponding Redemption Date and Stated Maturity of the Senior Notes or a portion of the Senior Notes pursuant to the Purchase Agreement. In the event any such modifications are made to the Senior Notes or a portion of
the Senior Notes, appropriate changes to the form of Senior Note set forth in Article II hereof shall be made prior to the issuance and authentication of new or replacement Senior Notes. Any such modification of the Interest Payment Dates and
corresponding Redemption Date and Stated Maturity with respect to any Senior Notes or tranche of Senior Notes shall not require or be subject to the consent of the Trustee. 
 (g) Subject to the foregoing provisions of this Section 3.1, each Senior Note delivered under this Indenture upon transfer of or in exchange
for or in lieu of any other Senior Note shall carry the rights to interest accrued and unpaid, and to accrue, that were carried by such other Senior Note. 
 (h) The Senior Notes will rank pari passu with each other and the Company’s other senior unsecured obligations, other than such senior unsecured obligations constituting Permitted Debt to the extent set forth in
Article XII, from time to time outstanding. 
 Section 3.2 Denominations. 
 The Senior Notes shall be in registered form without coupons and shall be issuable in minimum denominations of $100,000 and any integral multiple of
$1,000 in excess thereof. 
 Section 3.3 Execution, Authentication, Delivery and Dating. 
 (a) At any time and from time to time after the execution and delivery of this Indenture, the Company may deliver Senior Notes in an aggregate principal
amount (including all then Outstanding Senior Notes) not in excess of Seven Million Dollars ($7,000,000) executed by the Company to the Trustee for authentication, together with a Company Order for the authentication and delivery of such Senior
Notes, and the Trustee in accordance with the 

  

 26 

 
Company Order shall authenticate and deliver such Senior Notes. In authenticating such Senior Notes, and accepting the additional responsibilities under this
Indenture in relation to such Senior Notes, the Trustee shall be entitled to receive, and shall be fully protected in relying upon: 
 (i) a
copy of any Board Resolution relating thereto; and 
 (ii) an Opinion of Counsel stating that: (1) such Senior Notes, when authenticated
and delivered by the Trustee and issued by the Company in the manner and subject to any conditions specified in such Opinion of Counsel, will constitute, and the Indenture constitutes, valid and legally binding obligations of the Company, each
enforceable in accordance with its terms, subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general applicability relating to or affecting creditors’ rights and to general equity principles;
(2) the Senior Notes have been duly authorized and executed by the Company and have been delivered to the Trustee for authentication in accordance with this Indenture; (3) the Senior Notes are not required to be registered under the
Securities Act; and (4) the Indenture is not required to be qualified under the Trust Indenture Act. 
 (b) The Senior Notes shall be
executed on behalf of the Company by its Chairman of the Board, its Vice Chairman of the Board, its Chief Executive Officer, its President or one of its Vice Presidents. The signature of any of these officers on the Senior Notes may be manual or
facsimile. Senior Notes bearing the manual or facsimile signatures of individuals who were at any time the proper officers of the Company shall bind the Company, notwithstanding that such individuals or any of them have ceased to hold such offices
prior to the authentication and delivery of such Senior Notes or did not hold such offices at the date of such Senior Notes. 
 (c) No Senior
Note shall be entitled to any benefit under this Indenture or be valid or obligatory for any purpose, unless there appears on such Senior Note a certificate of authentication substantially in the form provided for herein executed by the Trustee by
the manual signature of one of its authorized signatories, and such certificate upon any Senior Note shall be conclusive evidence, and the only evidence, that such Senior Note has been duly authenticated and delivered hereunder. Notwithstanding the
foregoing, if any Senior Note shall have been authenticated and delivered hereunder but never issued and sold by the Company, and the Company shall have delivered such Senior Note to the Trustee for cancellation as provided in
Section 3.8, for all purposes of this Indenture such Senior Note shall be deemed never to have been authenticated and delivered hereunder and shall never be entitled to the benefits of this Indenture. 
 (d) Each Senior Note shall be dated the date of its authentication. 
 Section 3.4 Global Senior Notes. 
 (a) The Senior Notes issued on the Original Issue Date shall
be in the form of Global Senior Notes. Upon the election of any Holder holding a definitive Senior Note after the Original Issue Date, which election need not be in writing, the Senior Notes owned by such Holder shall be issued in the form of one or
more Global Senior Notes registered in the name of the Depositary or its nominee. Each Global Senior Note issued under this Indenture shall be registered in the name of the Depositary designated by the Company for such Global Senior Note 

  

 27 

 
or a nominee thereof and delivered to such Depositary or a nominee thereof or custodian therefor (which may be the Trustee), and each such Global Senior Note
shall constitute a single Senior Note for all purposes of this Indenture. 
 (b) Notwithstanding any other provision in this Indenture, no
Global Senior Note may be exchanged in whole or in part for registered Senior Notes, and no transfer of a Global Senior Note in whole or in part may be registered, in the name of any Person other than the Depositary for such Global Senior Note or a
nominee thereof unless (i) such Depositary advises the Trustee and the Company in writing that such Depositary is no longer willing or able to properly discharge its responsibilities as Depositary with respect to such Global Senior Note, and no
qualified successor is appointed by the Company within ninety (90) days of receipt by the Company of such notice, (ii) such Depositary ceases to be a clearing agency registered under the Exchange Act and no successor is appointed by the
Company within ninety (90) days after obtaining knowledge of such event, (iii) the Company executes and delivers to the Trustee a Company Order stating that the Company elects to terminate the book-entry system through the Depositary or
(iv) an Event of Default shall have occurred and be continuing. Upon the occurrence of any event specified in clause (i) (ii) (iii) or (iv) above in this Section 3.4(b), the Trustee shall notify the
Depositary and instruct the Depositary to notify all owners of beneficial interests in such Global Senior Note of the occurrence of such event and of the availability of Senior Notes to such owners of beneficial interests requesting the same. The
Trustee may conclusively rely, and be protected in relying, upon the written identification of the owners of beneficial interests furnished by the Depositary, and shall not be liable for any delay resulting from a delay by the Depositary. Upon the
issuance of such Senior Notes and the registration in the Securities Register of such Senior Notes in the names of the Holders of the beneficial interests therein, the Trustees shall recognize such holders of beneficial interests as Holders.

 (c) If any Global Senior Note is to be exchanged for other Senior Notes or canceled in part, or if another Senior Note is to be exchanged
in whole or in part for a beneficial interest in any Global Senior Note, then either (i) such Global Senior Note shall be so surrendered for exchange or cancellation as provided in this Article III or (ii) the principal amount
thereof shall be reduced or increased by an amount equal to (x) the portion thereof to be so exchanged or canceled or (y) the principal amount of such other Senior Note to be so exchanged for a beneficial interest therein, as the case may
be, by means of an appropriate adjustment made on the records of the Securities Registrar, whereupon the Trustee, in accordance with the Applicable Depositary Procedures, shall instruct the Depositary or its authorized representative to make a
corresponding adjustment to its records. Upon any such surrender or adjustment of a Global Senior Note by the Depositary, accompanied by registration instructions, the Company shall execute and the Trustee shall authenticate and deliver any Senior
Notes issuable in exchange for such Global Senior Note (or any portion thereof) in accordance with the instructions of the Depositary. The Trustee shall not be liable for any delay in delivery of such instructions and may conclusively rely on, and
shall be fully protected in relying on, such instructions. 
 (d) Every Senior Note executed, authenticated and delivered upon registration
of transfer of, or in exchange for or in lieu of, a Global Senior Note or any portion thereof shall be executed, authenticated and delivered in the form of, and shall be, a Global Senior Note, unless such Senior Note is registered in the name of a
Person other than the Depositary for such Global Senior Note or a nominee thereof. 
  

 28 

 (e) The Depositary or its nominee, as the registered owner of a Global Senior Note, shall be the Holder
of such Global Senior Note for all purposes under this Indenture and the Senior Notes, and owners of beneficial interests in a Global Senior Note shall hold such interests pursuant to the Applicable Depositary Procedures. Accordingly, any such
owner’s beneficial interest in a Global Senior Note shall be shown only on, and the transfer of such interest shall be effected only through, records maintained by the Depositary or its nominee or its Depositary Participants. The Securities
Registrar and the Trustee shall be entitled to deal with the Depositary for all purposes of this Indenture relating to a Global Senior Note (including the payment of principal and interest thereon and the giving of instructions or directions by
owners of beneficial interests therein and the giving of notices) as the sole Holder of the Senior Note and shall have no obligations to the owners of beneficial interests therein. Neither the Trustee nor the Securities Registrar shall have any
liability in respect of any transfers effected by the Depositary. 
 (f) The rights of owners of beneficial interests in a Global Senior Note
shall be exercised only through the Depositary and shall be limited to those established by law and agreements between such owners and the Depositary and/or its Depositary Participants. 
 (g) No holder of any beneficial interest in any Global Senior Note held on its behalf by a Depositary shall have any rights under this Indenture with
respect to such Global Senior Note, and such Depositary may be treated by the Company, the Trustee and any agent of the Company or the Trustee as the owner of such Global Senior Note for all purposes whatsoever. None of the Company, the Trustee nor
any agent of the Company or the Trustee will have any responsibility or liability for any aspect of the records relating to or payments made on account of beneficial ownership interests of a Global Senior Note or maintaining, supervising or
reviewing any records relating to such beneficial ownership interests. Notwithstanding the foregoing, nothing herein shall prevent the Company, the Trustee or any agent of the Company or the Trustee from giving effect to any written certification,
proxy or other authorization furnished by a Depositary or impair, as between a Depositary and such holders of beneficial interests, the operation of customary practices governing the exercise of the rights of the Depositary (or its nominee) as
Holder of any Senior Note. 
 Section 3.5 Registration, Transfer and Exchange Generally. 
 (a) The Trustee shall cause to be kept at the Corporate Trust Office a register (the “Securities Register”) in which the registrar and
transfer agent with respect to the Senior Notes (the “Securities Registrar”), subject to such reasonable regulations as it may prescribe, shall provide for the registration of Senior Notes and of transfers and exchanges of Senior
Notes. The Trustee shall at all times also be the Securities Registrar. The provisions of Article VI shall apply to the Trustee in its role as Securities Registrar. 
 (b) Subject to compliance with Section 2.2(b), upon surrender for registration of transfer of any Senior Note at the offices or agencies of
the Company designated for that purpose the Company shall execute, and the Trustee shall authenticate and deliver, in the name of the designated transferee or transferees, one or more new Senior Notes of any authorized denominations of like tenor
and aggregate principal amount. 
  

 29 

 (c) At the option of the Holder, Senior Notes may be exchanged for other Senior Notes of any authorized
denominations, of like tenor and aggregate principal amount, upon surrender of the Senior Notes to be exchanged at such office or agency. Whenever any Senior Notes are so surrendered for exchange, the Company shall execute, and the Trustee shall
authenticate and deliver, the Senior Notes that the Holder making the exchange is entitled to receive. 
 (d) All Senior Notes issued upon
any transfer or exchange of Senior Notes shall be the valid obligations of the Company, evidencing the same debt, and entitled to the same benefits under this Indenture, as the Senior Notes surrendered upon such transfer or exchange. 
 (e) Every Senior Note presented or surrendered for transfer or exchange shall be duly endorsed, or be accompanied by a written instrument of transfer in
form satisfactory to the Company and the Securities Registrar, duly executed by the Holder thereof or such Holder’s attorney duly authorized in writing. 
 (f) No service charge shall be made to a Holder for any transfer or exchange of Senior Notes, but the Company may require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed
in connection with any transfer or exchange of Senior Notes. 
 (g) Neither the Company nor the Trustee shall be required pursuant to the
provisions of this Section 3.5: (i) to issue, register the transfer of or exchange any Senior Note during a period beginning at the opening of business fifteen (15) days before the day of selection for redemption of Senior
Notes pursuant to Article XI and ending at the close of business on the day of mailing of the notice of redemption or (ii) to register the transfer of or exchange any Senior Note so selected for redemption in whole or in part, except, in
the case of any such Senior Note to be redeemed in part, any portion thereof not to be redeemed. 
 (h) The Company shall designate an office
or offices or agency or agencies where Senior Notes may be surrendered for registration or transfer or exchange. The Company initially designates the Corporate Trust Office as its office and agency for such purposes. The Company shall give prompt
written notice to the Trustee and to the Holders of any change in the location of any such office or agency. 
 (i) The Senior Notes may only
be transferred to a “Qualified Purchaser” as such term is defined in Section 2(a)(51) of the Investment Company Act. 
 (j) Neither the Trustee nor the Securities Registrar shall be responsible for ascertaining whether any transfer hereunder complies with the registration provisions of or any exemptions from the Securities Act, applicable state securities
laws or the applicable laws of any other jurisdiction, ERISA, the Code or the Investment Company Act; provided, that if a certificate is specifically required by the express terms of this Section 3.5 to be delivered to the Trustee
or the Securities Registrar by a Holder or transferee of a Senior Note, the Trustee and the Securities Registrar shall be under a duty to receive and examine the same to determine whether or not the certificate substantially conforms on its face to
the requirements of this Indenture and shall promptly notify the party delivering the same if such certificate does not comply with such terms. 
  

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 Section 3.6 Mutilated, Destroyed, Lost and Stolen Senior Notes. 
 (a) If any mutilated Senior Note is surrendered to the Trustee together with such security or indemnity as may be required by the Company or the Trustee
to save each of them harmless, the Company shall execute and upon receipt thereof the Trustee shall authenticate and deliver in exchange therefor a new Senior Note of like tenor and aggregate principal amount and bearing a number not
contemporaneously outstanding. 
 (b) If there shall be delivered to the Trustee (i) evidence to its satisfaction of the destruction,
loss or theft of any Senior Note and (ii) such security or indemnity as may be required by it to save each of the Company and the Trustee harmless, then, in the absence of notice to the Company or the Trustee that such Senior Note has been
acquired by a bona fide purchaser, the Company shall execute and upon its written request the Trustee shall authenticate and deliver, in lieu of any such destroyed, lost or stolen Senior Note, a new Senior Note of like tenor and aggregate principal
amount as such destroyed, lost or stolen Senior Note, and bearing a number not contemporaneously outstanding. 
 (c) If any such mutilated,
destroyed, lost or stolen Senior Note has become or is about to become due and payable, the Company in its discretion may, instead of issuing a new Senior Note, pay such Senior Note. 
 (d) Upon the issuance of any new Senior Note under this Section 3.6, the Company may require the payment of a sum sufficient to cover any tax
or other governmental charge that may be imposed in relation thereto and any other expenses (including the fees and expenses of the Trustee) connected therewith. 
 (e) Every new Senior Note issued pursuant to this Section 3.6 in lieu of any mutilated, destroyed, lost or stolen Senior Note shall constitute an original additional contractual obligation of the Company,
whether or not the mutilated, destroyed, lost or stolen Senior Note shall be at any time enforceable by anyone, and shall be entitled to all the benefits of this Indenture equally and proportionately with any and all other Senior Notes duly issued
hereunder. 
 (f) The provisions of this Section 3.6 are exclusive and shall preclude (to the extent lawful) all other rights and
remedies with respect to the replacement or payment of mutilated, destroyed, lost or stolen Senior Notes. 
 Section 3.7 Persons
Deemed Owners. 
 The Company, the Trustee and any agent of the Company or the Trustee shall treat the Person in whose name any Senior
Note is registered as the owner of such Senior Note for the purpose of receiving payment of principal of and any interest on such Senior Note and for all other purposes whatsoever, and neither the Company, the Trustee nor any agent of the Company or
the Trustee shall be affected by notice to the contrary. 
  

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 Section 3.8 Cancellation. 
 All Senior Notes surrendered for payment, redemption, transfer or exchange shall, if surrendered to any Person other than the Trustee, be delivered to the
Trustee, and any such Senior Notes and Senior Notes surrendered directly to the Trustee for any such purpose shall be promptly canceled by it. The Company may at any time deliver to the Trustee for cancellation any Senior Notes previously
authenticated and delivered hereunder that the Company may have acquired in any manner whatsoever, and all Senior Notes so delivered shall be promptly canceled by the Trustee. No Senior Notes shall be authenticated in lieu of or in exchange for any
Senior Notes canceled as provided in this Section 3.8, except as expressly permitted by this Indenture. All canceled Senior Notes shall be retained or disposed of by the Trustee in accordance with its customary practices and the Trustee
shall deliver to the Company a certificate of such disposition. 
 Section 3.9 Agreed Tax Treatment. 
 Each Senior Note issued hereunder shall provide that the Company and, by its acceptance or acquisition of a Senior Note or a beneficial interest therein,
the Holder of, and any Person that acquires a direct or indirect beneficial interest in, such Senior Note, intend and agree to treat such Senior Note as indebtedness of the Company for United States federal, state and local tax’ purposes. The
provisions of this Indenture shall be interpreted to further this intention and agreement of the parties. 
 Section 3.10 CUSIP
Numbers. 
 The Company in issuing the Senior Notes may use “CUSIP” numbers (if then generally in use), and, if so, the Trustee
shall use “CUSIP” numbers in notices of redemption and other similar or related materials as a convenience to Holders; provided, that any such notice or other materials may state that no representation is made as to the correctness
of such numbers either as printed on the Senior Notes or as contained in any notice of redemption or other materials and that reliance may be placed only on the other identification numbers printed on the Senior Notes, and any such redemption shall
not be affected by any defect in or omission of such numbers. 
 ARTICLE IV 
 SATISFACTION AND DISCHARGE 
 Section 4.1 Satisfaction and Discharge of
Indenture. 
 This Indenture shall, upon Company Request, cease to be of further effect (except as to any surviving rights of registration
of transfer or exchange of Senior Notes herein expressly provided for and as otherwise provided in this Section 4.1) and the Trustee, on written demand of and at the expense of the Company, shall execute proper instruments acknowledging
satisfaction and discharge of this Indenture, when 
 (a) either 
  

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 (i) all Senior Notes theretofore authenticated and delivered (other than (A) Senior Notes that have
been mutilated, destroyed, lost or stolen and that have been replaced or paid as provided in Section 3.6 and (B) Senior Notes for whose payment money has theretofore been deposited in trust or segregated and held in trust by the
Company and thereafter repaid to the Company or discharged from such trust as provided in Section 10.2) have been delivered to the Trustee for cancellation; or 
 (ii) all such Senior Notes not theretofore delivered to the Trustee for cancellation 
 (A) have become due and payable; or 
 (B)
will become due and payable at their Stated Maturity within one (1) year of the date of deposit; or 
 (C) are to be called for
redemption within one (1) year under arrangements satisfactory to the Trustee for the giving of notice of redemption by the Trustee in the name, and at the expense, of the Company; 
 and the Company, in the case of subclause (ii)(A), (B) or (C) above, has deposited or caused to be deposited with the Trustee as trust funds in trust for such purpose (x) an amount in the currency or
currencies in which the Senior Notes are payable, (y) Government Obligations which through the scheduled payment of principal and interest in respect thereof in accordance with their terms will provide, not later than the due date of any
payment, money in an amount or (z) a combination thereof, in each case sufficient, in the opinion of a nationally recognized firm of independent public accountants expressed in a written certification thereof delivered to the Trustee, to pay
and discharge the entire indebtedness on such Senior Notes not theretofore delivered to the Trustee for cancellation, for principal and any premium and interest (including any Additional Interest) to the date of such deposit (in the case of Senior
Notes that have become due and payable) or to the Stated Maturity (or any date of principal repayment upon early maturity) or Redemption Date, as the case may be; 
 (b) the Company has paid or caused to be paid all other sums payable hereunder by the Company; and 
 (c) the
Company has delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel each stating that all conditions precedent herein provided for relating to the satisfaction and discharge of this Indenture have been complied with.

 Notwithstanding the satisfaction and discharge of this Indenture, the obligations of the Company to the Trustee under Section 6.6, the
obligations of the Company to any Authenticating Agent under Section 6.11 and, if money shall have been deposited with the Trustee pursuant to subclause (a)(ii) of this Section 4.1, the obligations of the Trustee under
Section 4.2 and Section 10.2(e) shall survive. 
  

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 Section 4.2 Application of Trust Money. 
 Subject to the provisions of Section 10.2(c), all money deposited with the Trustee pursuant to Section 4.1 shall be held in trust
and applied by the Trustee, in accordance with the provisions of the Senior Notes and this Indenture, to the payment in accordance with Section 3.1, either directly or through any Paying Agent (including the Company acting as its own
Paying Agent) as the Trustee may determine, to the Persons entitled thereto, of the principal and any premium and interest (including any Additional Interest) for the payment of which such money or obligations have been deposited with or received by
the Trustee. 
 ARTICLE V 
 REMEDIES 
 Section 5.1 Events of Default. 
 “Event of Default” means, wherever used herein with respect to the Senior Notes, any one of the following events (whatever the reason for
such Event of Default and whether it shall be voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree or order of any court or any order, rule or regulation of any administrative or governmental body):

 (a) default in the payment of any interest upon any Senior Note, including any Additional Interest in respect thereof, when it becomes due
and payable, and continuance of such default for a period of thirty (30) days; or 
 (b) default in the payment of the principal of or
any premium on any Senior Note at its Maturity; or 
 (c) default in the performance, or breach, of any covenant or warranty of the Company
in this Indenture or the Purchase Agreement and continuance of such default or breach for a period of thirty (30) days after there has been given, by registered or certified mail, to the Company by the Trustee or to the Company and the Trustee
by the Holders of at least twenty-five percent (25%) in aggregate principal amount of the Outstanding Senior Notes a written notice specifying such default or breach and requiring it to be remedied and stating that such notice is a “Notice
of Default” hereunder (a “Notice of Default”); provided, that any default in the performance or breach of the covenant set forth in Section 10.8 shall constitute an Event of Default immediately upon such
default or breach (without any obligation of the Trustee or the Holders to deliver a Notice of Default) and the Holders shall have the immediate right to exercise all remedies granted to the Holders under this Indenture; or 
 (d) the entry by a court having jurisdiction in the premises of a decree or order adjudging the Company a bankrupt or insolvent, or approving as properly
filed a petition seeking reorganization, arrangement, adjustment or composition of or in respect of the Company under any applicable federal or state bankruptcy, insolvency, reorganization or other similar law, or appointing a custodian, receiver,
liquidator, assignee, trustee, sequestrator or other similar official of the Company or of any substantial part of its property, or ordering the winding up or liquidation of its affairs, and the continuance of any such decree or order for relief or
any such other decree or order unstayed and in effect for a period of sixty (60) consecutive days; or 
  

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 (e) the institution by the Company of proceedings to be adjudicated a bankrupt or insolvent, or the
consent by the Company to the institution of bankruptcy or insolvency proceedings against it, or the filing by the Company of a petition or answer or consent seeking reorganization or relief under any applicable federal or state bankruptcy,
insolvency, reorganization or other similar law, or the consent by it to the filing of such petition or to the appointment of or taking possession by a custodian, receiver, liquidator, assignee, trustee, sequestrator or other similar official of the
Company or of any substantial part of its property, or the making by it of an assignment for the benefit of creditors, or the admission by it in writing of its inability to pay its debts generally as they become due and its willingness to be
adjudicated a bankrupt or insolvent, or the taking of corporate action by the Company in furtherance of any such action. 
 Section 5.2
Acceleration of Maturity; Rescission and Annulment. 
 (a) If an Event of Default occurs and is continuing, then and in every such case
the Trustee or the Holders of not less than twenty-five percent (25%) in aggregate principal amount of the Outstanding Senior Notes may declare the principal amount of all the Senior Notes to be immediately due and payable, by a notice in
writing to the Company (and to the Trustee if given by Holders). 
 (b) At any time after such a declaration of acceleration with respect to
Senior Notes has been made and before a judgment or decree for payment of the money due has been obtained by the Trustee as hereinafter provided in this Article V, the Holders of a majority in aggregate principal amount of the Outstanding
Senior Notes, by written notice to the Trustee, may rescind and annul such declaration and its consequences if: 
 (i) the Company has paid or
deposited with the Trustee a sum sufficient to pay: 
 (A) all overdue installments of interest on all Senior Notes; 
 (B) any accrued Additional Interest on all Senior Notes; 
 (C) the principal of and any premium on any Senior Notes that have become due otherwise than by such declaration of acceleration and interest (including any Additional Interest) thereon at the rate borne by the Senior
Notes; 
 (D) all sums paid or advanced by the Trustee hereunder and the reasonable compensation, expenses, disbursements and advances of
the Trustee and its agents and counsel; 
 (E) all sums paid or advanced by the Holders hereunder and the reasonable fees, expenses,
disbursements and advances of the Holders and their agents and counsel in connection with the relevant default; and 
  

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 (ii) all Events of Default with respect to Senior Notes, other than the non-payment of the principal of
Senior Notes that has become due solely by such acceleration, have been cured or waived as provided in Section 5.13. 
 No such rescission shall
affect any subsequent default or impair any right consequent thereon. 
 Section 5.3 Collection of Indebtedness and Suits for
Enforcement by Trustee. 
 (a) The Company covenants that if: 
 (i) default is made in the payment of any installment of interest (including any Additional Interest) on any Senior Note when such interest becomes due
and payable and such default continues for a period of thirty (30) days; or 
 (ii) default is made in the payment of the principal of
and any premium on any Senior Note at the Maturity thereof; 
 the Company will, upon demand of the Trustee, pay to the Trustee, for the benefit of the
Holders of such Senior Notes, the whole amount then due and payable on such Senior Notes for principal and any premium and interest (including any Additional Interest) and, in addition thereto, all amounts owing the Trustee under
Section 6.6 and all sums paid or advanced by the Holders hereunder and the reasonable fees, expenses, disbursements and advances of the Holders and their agents and counsel in connection with such default. 
 (b) If the Company fails to pay such amounts forthwith upon such demand, the Trustee, in its own name and as trustee of an express trust, may institute a
judicial proceeding for the collection of the sums so due and unpaid, and may prosecute such proceeding to judgment or final decree, and may enforce the same against the Company or any other obligor upon such Senior Notes and collect the moneys
adjudged or decreed to be payable in the manner provided by law out of the property of the Company or any other obligor upon the Senior Notes, wherever situated. 
 (c) If an Event of Default with respect to Senior Notes occurs and is continuing, the Trustee may in its discretion proceed to protect and enforce its rights and the rights of the Holders of Senior Notes by such
appropriate judicial proceedings as the Trustee shall deem most effectual to protect and enforce any such rights, whether for the specific enforcement of any covenant or agreement in this Indenture or in aid of the exercise of any power granted
herein, or to enforce any other proper remedy. 
 Section 5.4 Trustee May File Proofs of Claim. 
 In case of any receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or similar judicial proceeding
relative to the Company (or any other obligor upon the Senior Notes), its property or its creditors, the Trustee shall be entitled and empowered, by intervention in such proceeding or otherwise, to take any and all actions authorized hereunder in
order to have claims of the Holders and the Trustee allowed in any such proceeding. In particular, the Trustee shall be authorized to collect and receive any moneys or other property payable or deliverable on any such claims and to distribute the
same; 

  

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and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such judicial proceeding is hereby authorized by
each Holder to make such payments to the Trustee and, in the event that the Trustee shall consent to the making of such payments directly to the Holders, to first pay to the Trustee any amount due it for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, and any other amounts owing the Trustee, any predecessor Trustee and other Persons under Section 6.6. 
 Section 5.5 Trustee May Enforce Claim Without Possession of Senior Notes. 
 All rights of action and claims under this Indenture or the Senior Notes may be prosecuted and enforced by the Trustee without the possession of any of
the Senior Notes or the production thereof in any proceeding relating thereto, and any such proceeding instituted by the Trustee shall be brought in its own name as trustee of an express trust, and any recovery of judgment shall after provision for
the payment of all the amounts owing the Trustee, any predecessor Trustee and other Persons under Section 6.6, be for the ratable benefit of the Holders of the Senior Notes in respect of which such judgment has been recovered.

 Section 5.6 Application of Money Collected. 
 Any money or property collected or to be applied by the Trustee with respect to the Senior Notes pursuant to this Article V shall be applied in the following order, at the date or dates fixed by the Trustee
and, in case of the distribution of such money or property on account of principal or any premium or interest (including any Additional Interest), upon presentation of the Senior Notes and the notation thereon of the payment if only partially paid
arid upon surrender thereof if fully paid: 
 FIRST: To the payment of all amounts due the Trustee, any predecessor Trustee and other Persons
under Section 6.6; 
 SECOND: To the payment of the amounts then due and unpaid upon the Senior Notes for principal and any
premium and interest (including any Additional Interest) in respect of which or for the benefit of which such money has been collected, ratably, without preference or priority of any kind, according to the amounts due and payable on the Senior Notes
for principal and any premium and interest (including any Additional Interest), respectively; and 
 THIRD: The balance, if any, to the
Person or Persons entitled thereto pursuant to the terms hereof. 
 Section 5.7 Limitation on Suits. 
 Subject to Section 5.8, no Holder of any Senior Notes shall have any right to institute any proceeding, judicial or otherwise, with respect to
this Indenture or for the appointment of a custodian, receiver, assignee, trustee, liquidator, sequestrator (or other similar official) or for any other remedy hereunder, unless: 
 (a) such Holder has previously given written notice to the Trustee of a continuing Event of Default with respect to the Senior Notes; 
  

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 (b) the Holders of not less than a majority in aggregate principal amount of the Outstanding Senior Notes
shall have made written request to the Trustee to institute proceedings in respect of such Event of Default in its own name as Trustee hereunder; 
 (c) such Holder or Holders have offered to the Trustee reasonable indemnity against the costs, expenses and liabilities to be incurred in compliance with such request; 
 (d) the Trustee after its receipt of such notice, request and offer of indemnity has failed to institute any such proceeding for sixty (60) days;
and 
 (e) no direction inconsistent with such written request has been given to the Trustee during such sixty (60)-day period by the Holders
of a majority in aggregate principal amount of the Outstanding Senior Notes; 
 it being understood and intended that no one or more of such Holders shall
have any right in any manner whatever by virtue of, or by availing itself of, any provision of this Indenture to affect, disturb or prejudice the rights of any other Holders of Senior Notes, or to obtain or to seek to obtain priority or preference
over any other of such Holders or to enforce any right under this Indenture, except in the manner herein provided and for the equal and ratable benefit of all such Holders. 
 Section 5.8 Unconditional Right of Holders to Receive Principal, Premium, if any, and Interest. 
 Notwithstanding any other provision in this Indenture, the Holder of any Senior Note shall have the right, which is absolute and unconditional, to receive
payment of the principal of and premium, if any, on such Senior Note at its Maturity and payment of interest (including any Additional Interest) on such Senior Note when due and payable and to institute suit for the enforcement of any such payment,
and such right shall not be impaired without the consent of such Holder. 
 Section 5.9 Restoration of Rights and Remedies.

 If the Trustee or any Holder has instituted any proceeding to enforce any right or remedy under this Indenture and such proceeding has been
discontinued or abandoned for any reason, or has been determined adversely to the Trustee or such Holder, then and in every such case the Company, the Trustee and such Holder shall, subject to any determination in such proceeding, be restored
severally and respectively to their former positions hereunder, and thereafter all rights and remedies of the Trustee and such Holder shall continue as though no such proceeding had been instituted. 
 Section 5.10 Rights and Remedies Cumulative. 
 Except as otherwise provided in Section 3.6(f), no right or remedy herein conferred upon or reserved to the Trustee or the Holders is intended to be exclusive of any other right or remedy, and every right
and remedy shall, to the extent permitted by law, be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or employment of any right or remedy
hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other appropriate right or remedy. 
  

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 Section 5.11 Delay or Omission Not Waiver. 
 No delay or omission of the Trustee or any Holder of any Senior Notes to exercise any right or remedy accruing upon any Event of Default shall impair any
such right or remedy or constitute a waiver of any such Event of Default or an acquiescence therein. Every right and remedy given by this Article V or by law to the Trustee or to the Holders may be exercised from time to time, and as often as
may be deemed expedient, by the Trustee or the Holders, as the case maybe. 
 Section 5.12 Control by Holders. 
 The Holders of not less than a majority in aggregate principal amount of the Outstanding Senior Notes shall have the right to direct the time, method and
place of conducting any proceeding for any remedy available to the Trustee or exercising any trust or power conferred on the Trustee; provided, that: 
 (a) such direction shall not be in conflict with any rule of law or with this Indenture; 
 (b) the Trustee
may take any other action deemed proper by the Trustee that is not inconsistent with such direction; and 
 (c) subject to the provisions of
Section 6.2, the Trustee shall have the right to decline to follow such direction if a Responsible Officer or Officers of the Trustee shall, in good faith, reasonably determine that the proceeding so directed would be unjustly
prejudicial to the Holders not joining in any such direction or would involve the Trustee in personal liability. 
 Section 5.13
Waiver of Past Defaults. 
 (a) The Holders of not less than a majority in aggregate principal amount of the Outstanding Senior Notes
may waive any past Event of Default hereunder and its consequences except an Event of Default: 
 (i) in the payment of the principal of,
premium, if any, or interest (including any Additional Interest) on any Outstanding Senior Note (unless such Event of Default has been cured and the Company has paid to or deposited with the Trustee a sum sufficient to pay all installments of
interest (including any Additional Interest) due and past due and all principal of and premium, if any, on all Senior Notes due otherwise than by acceleration); or 
 (ii) in respect of a covenant or provision hereof that under Article IX cannot be modified or amended without the consent of each Holder of any Outstanding Senior Note. 
 (b) Any such waiver shall be deemed to be on behalf of the Holders of all the Outstanding Senior Notes. 
  

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 (c) Upon any such waiver, such Event of Default shall cease to exist and any Event of Default arising
therefrom shall be deemed to have been cured for every purpose of this Indenture; but no such waiver shall extend to any subsequent or other Event of Default or impair any right consequent thereon. 
 Section 5.14 Undertaking for Costs. 
 All parties to this Indenture agree, and each Holder of any Senior Note by his or her acceptance thereof shall be deemed to have agreed, that any court may in its discretion require, in any suit for the enforcement of any right or remedy
under this Indenture, or in any suit against the Trustee for any action taken or omitted by it as Trustee, the filing by any party litigant in such suit of an undertaking to pay the costs of such suit, and that such court may in its discretion
assess reasonable costs, including reasonable attorneys’ fees and expenses, against any party litigant in such suit, having due regard to the merits and good faith of the claims or defenses made by such party litigant; provided,
however, that the provisions of this Section 5.14 shall not apply to any suit instituted by the Trustee, to any suit instituted by any Holder, or group of Holders, holding in the aggregate more than ten percent (10%) in
aggregate principal amount of the Outstanding Senior Notes, or to any suit instituted by any Holder for the enforcement of the payment of the principal of or premium, if any, on the Senior Note after the Stated Maturity or any interest (including
any Additional Interest) on any Senior Note after it is due and payable. 
 Section 5.15 Waiver of Usury, Stay or Extension Laws.

 The Company covenants (to the extent that it may lawfully do so) that it will not at any time insist upon, or plead, or in any manner
whatsoever claim or take the benefit or advantage of, any usury, stay or extension law wherever enacted, now or at any time hereafter in force, which may affect the covenants or the performance of this Indenture; and the Company (to the extent that
it may lawfully do so) hereby expressly waives all benefit or advantage of any such law, and covenants that it will not hinder, delay or impede the execution of any power herein granted to the Trustee, but will suffer and permit the execution of
every such power as though no such law had been enacted. 
 ARTICLE VI 
 THE TRUSTEE 
 Section 6.1 Corporate Trustee Required. 
 There shall at all times be a Trustee hereunder with respect to the Senior Notes. The Trustee shall be a corporation or national banking association
organized and doing business under the laws of the United States or of any state thereof, authorized to exercise corporate trust powers, having a combined capital and surplus of at least $50,000,000, subject to supervision or examination by federal
or state authority and having an office within the United States. If such entity publishes reports of condition at least annually, pursuant to law or to the requirements of such supervising or examining authority, then, for the purposes of this
Section 6.1, the combined capital and surplus of such entity shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition so published. If at any time the Trustee shall cease to be eligible
in accordance with the provisions of this Section 6.1, it shall resign immediately in the manner and with the effect hereinafter specified in this Article VI. 
  

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 Section 6.2 Certain Duties and Responsibilities. 
 (a) Except during the continuance of an Event of Default: 
 (i) the Trustee undertakes to perform such duties and only such duties as are specifically set forth in this Indenture, and no implied covenants or obligations shall be read into this Indenture against the Trustee;
and 
 (ii) in the absence of bad faith on its part, the Trustee may conclusively rely, as to the truth of the statements and the correctness
of the opinions expressed therein, upon certificates or opinions furnished to the Trustee and conforming to the requirements of this Indenture; provided, that in the case of any such certificates or opinions that by any provision hereof are
specifically required to be furnished to the Trustee, the Trustee shall be under a duty to examine the same to determine whether or not they substantially conform on their face to the requirements of this Indenture. 
 (b) If an Event of Default known to the Trustee has occurred and is continuing, the Trustee shall, prior to the receipt of directions, if any, from the
Holders of at least a majority in aggregate principal amount of the Outstanding Senior Notes, exercise such of the rights and powers vested in it by this Indenture, and use the same degree of care and skill in its exercise, as a prudent person would
exercise or use under the circumstances in the conduct of such person’s own affairs. 
 (c) Notwithstanding the foregoing, no provision
of this Indenture shall require the Trustee to expend or risk its own funds or otherwise incur any financial liability in the performance of any of its duties hereunder, or in the exercise of any of its rights or powers, if it shall have reasonable
grounds for believing that repayment of such funds or adequate indemnity against such risk or liability is not reasonably assured to it. Whether or not therein expressly so provided, every provision of this Indenture relating to the conduct or
affecting the liability of or affording protection to the Trustee shall be subject to the provisions of this Section 6.2. To the extent that, at law or in equity, the Trustee has duties and liabilities relating to the Holders, the
Trustee shall not be liable to any Holder for the Trustee’s good faith reliance on the provisions of this Indenture. The provisions of this Indenture, to the extent that they restrict the duties and liabilities of the Trustee otherwise existing
at law or in equity, are agreed by the Company and the Holders to replace such other duties and liabilities of the Trustee. 
 (d) No
provisions of this Indenture shall be construed to relieve the Trustee from liability with respect to matters that are within the authority of the Trustee under this Indenture for its own negligent action, negligent failure to act or willful
misconduct, except that: 
 (i) the Trustee shall not be liable for any error or judgment made in good faith by an authorized officer of the
Trustee, unless it shall be proved that the Trustee was negligent in ascertaining the pertinent facts; 
  

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 (ii) the Trustee shall not be liable with respect to any action taken or omitted to be taken by it in
good faith in accordance with the direction of the Holders of at least a majority in aggregate principal amount of the Outstanding Senior Notes (or such other percentage as may be required by the terms hereof) relating to the time, method and place
of conducting any proceeding for any remedy available to the Trustee under this Indenture; and 
 (iii) the Trustee shall be under no
liability for interest on any money received by it hereunder except as otherwise agreed in writing with the Company and money held by the Trustee in trust hereunder need not be segregated from other funds except to the extent required by law.

 Section 6.3 Notice of Defaults. 
 Within ninety (90) days after the occurrence of any default actually known to the Trustee, the Trustee shall give the Holders notice of such default unless such default shall have been cured or waived;
provided, that except in the case of a default in the payment of the principal of or any premium or interest on any Senior Notes, the Trustee shall be fully protected in withholding the notice if and so long as the board of directors, the
executive committee or a trust committee of directors and/or Responsible Officers of the Trustee in good faith determines that withholding the notice is in the interest of Holders; and provided, further, that in the case of any default
of the character specified in Section 5.1(c), no such notice to Holders shall be given until at least thirty (30) days after the occurrence thereof. For the purpose of this Section 6.3, the term
“default” means any event which is, or after notice or lapse of time or both would become, an Event of Default. 
 Section 6.4 Certain Rights of Trustee. 
 Subject to the provisions of Section 6.2: 
 (a) the Trustee may conclusively rely and shall be fully protected in acting or refraining from acting in good faith and in accordance with the terms
hereof upon any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, debenture, note or other paper or document reasonably believed by it to be genuine and to have been signed or
presented by the proper party or parties; 
 (b) if (i) in performing its duties under this Indenture the Trustee is required to decide
between alternative courses of action, (ii) in construing any of the provisions of this Indenture the Trustee finds ambiguous or inconsistent with any other provisions contained herein or (iii) the Trustee is unsure of the application of
any provision of this Indenture, then, except as to any matter as to which the Holders are entitled to decide under the terms of this Indenture, the Trustee shall deliver a notice to the Company requesting the Company’s written instruction as
to the course of action to be taken and the Trustee shall take such action, or refrain from taking such action, as the Trustee shall be instructed in writing to take, or to refrain from taking, by the Company; provided, that if the Trustee
does not receive such instructions from the Company within ten (10) Business Days after it has delivered such notice or such reasonably shorter period of time set forth in such notice the Trustee may, but shall be under no duty to, take such
action, or refrain from taking such action, as the Trustee shall deem advisable and in the best interests of the Holders, in which event the Trustee shall have no liability except for its own negligence, bad faith or willful misconduct; 

 

 42 

 (c) any request or direction of the Company shall be sufficiently evidenced by a Company Request or
Company Order and any resolution of the Board of Directors may be sufficiently evidenced by a Board Resolution; 
 (d) the Trustee may
consult with counsel (which counsel may be counsel to the Trustee, the Company or any of its Affiliates, and may include any of its employees) and the advice of such counsel or any Opinion of Counsel shall be full and complete authorization and
protection in respect of any action taken, suffered or omitted by it hereunder in good faith and in reliance thereon; 
 (e) the Trustee
shall be under no obligation to exercise any of the rights or powers vested in it by this Indenture at the request or direction of any of the Holders pursuant to this Indenture, unless such Holders shall have offered to the Trustee security or
indemnity reasonably satisfactory to it against the costs, expenses (including reasonable attorneys’ fees and expenses) and liabilities that might be incurred by it in compliance with such request or direction, including reasonable advances as
may be requested by the Trustee; 
 (f) the Trustee shall not be bound to make any investigation into the facts or matters stated in any
resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, indenture, note or other paper or document, but the Trustee in its discretion may make such inquiry or investigation into such facts
or matters as it may see fit, and, if the Trustee shall determine to make such inquiry or investigation, it shall be entitled to examine the books, records and premises of the Company, personally or by agent or attorney; 
 (g) the Trustee may execute any of the trusts or powers hereunder or perform any duties hereunder either directly or by or through agents, attorneys,
custodians or nominees and the Trustee shall not be responsible for any misconduct or negligence on the part of any such agent, attorney, custodian or nominee appointed with due care by it hereunder; 
 (h) whenever in the administration of this Indenture the Trustee shall deem it desirable to receive instructions with respect to enforcing any remedy or
right or taking any other action with respect to enforcing any remedy or right hereunder, the Trustees (i) may request instructions from the Holders (which instructions may only be given by the Holders of the same aggregate principal amount of
Outstanding Senior Notes as would be entitled to direct the Trustee under this Indenture in respect of such remedy, right or action), (ii) may refrain from enforcing such remedy or right or taking such action until such instructions are
received and (iii) shall be protected in acting in accordance with such instructions; 
 (i) except as otherwise expressly provided by
this Indenture, the Trustee shall not be under any obligation to take any action that is discretionary under the provisions of this Indenture; 
 (j) without prejudice to any other rights available to the Trustee under applicable law, when the Trustee incurs expenses or renders services in connection with any bankruptcy, insolvency or other proceeding referred to in clauses
(d) or (e) of the definition of Event of 

  

 43 

 
Default specified in Section 5.1, such expenses (including legal fees and expenses of its agents and counsel) and the compensation for such
services are intended to constitute expenses of administration under any bankruptcy laws or law relating to creditors rights generally; 
 (k) whenever in the administration of this Indenture the Trustee shall deem it desirable that a matter be proved or established prior to taking, suffering or omitting any action hereunder, the Trustee (unless other evidence be herein
specifically prescribed) may, in the absence of bad faith on its part, conclusively rely upon an Officers’ Certificate addressing such matter, which, upon receipt of such request, shall be promptly delivered by the Company; 
 (1) the Trustee shall not be charged with knowledge of any Event of Default unless either (i) a Responsible Officer of the Trustee shall have actual
knowledge or (ii) the Trustee shall have received written notice thereof from the Company or a Holder; and 
 (l) in the event that the
Trustee is also acting as Paying Agent, Authenticating Agent or Securities Registrar hereunder, the rights and protections afforded to the Trustee pursuant to this Article VI shall also be afforded such Paying Agent, Authenticating Agent or
Securities Registrar. 
 Section 6.5 May Hold Senior Notes. 
 The Trustee, any Authenticating Agent, any Paying Agent, any Securities Registrar or any other agent of the Company, in its individual or any other
capacity, may become the owner or pledgee of Senior Notes and may otherwise deal with the Company with the same rights it would have if it were not Trustee, Authenticating Agent, Paying Agent, Securities Registrar or such other agent. 
 Section 6.6 Compensation; Reimbursement; Indemnity. 
 (a) The Company agrees: 
 (i) to pay to the Trustee from time to time reasonable compensation for all
services rendered by it hereunder in such amounts as the Company and the Trustee shall agree from time to time (which compensation shall not be limited by any provision of law in regard to the compensation of a trustee of an express trust);

 (ii) to reimburse the Trustee upon its request for all reasonable expenses, disbursements and advances incurred or made by the Trustee in
accordance with any provision of this Indenture (including the reasonable compensation and the expenses and disbursements of its agents and counsel), except any such expense, disbursement or advance as may be attributable to its negligence, bad
faith or willful misconduct; and 
 (iii) to the fullest extent permitted by applicable law, to indemnify the Trustee (including in its
individual capacity) and its Affiliates, and their officers, directors, shareholders, agents, representatives and employees for, and to hold them harmless against, any loss, damage, liability, tax (other than income, franchise or other taxes imposed
on amounts paid pursuant to clause (i) or (ii) of this Section 6.6(a)), penalty, expense or claim of any kind or nature whatsoever incurred without negligence, bad faith or willful misconduct on its part arising out of 

  

 44 

 
or in connection with the acceptance or administration of this trust or the performance of the Trustee’s duties hereunder, including the costs and
expenses of defending itself against any claim or liability in connection with the exercise or performance of any of its powers or duties hereunder. 
 (b) To secure the Company’s payment obligations in this Section 6.6, the Company hereby grants and pledges to the Trustee and the Trustee shall have a lien prior to the Senior Notes on all money or
property held or collected by the Trustee, other than money or property held in trust to pay principal and interest on particular Senior Notes. Such lien shall survive the satisfaction and discharge of this Indenture or the resignation or removal of
the Trustee. 
 (c) The obligations of the Company under this Section 6.6 shall survive the satisfaction and discharge of this
Indenture and the earlier resignation or removal of the Trustee. 
 (d) In no event shall the Trustee be liable for any indirect, special,
punitive or consequential loss or damage of any kind whatsoever, including, but not limited to, lost profits, even if the Trustee has been advised of the likelihood of such loss or damage and regardless of the form of action. 
 (e) In no event shall the Trustee be liable for any failure or delay in the performance of its obligations hereunder because of circumstances beyond its
control, including, but not limited to, acts of God, flood, war (whether declared or undeclared), terrorism, fire, riot, embargo, government action, including any laws, ordinances, regulations, governmental action or the like which delay, restrict
or prohibit the providing of the services contemplated by this Indenture. 
 Section 6.7 Resignation and Removal; Appointment of
Successor. 
 (a) No resignation or removal of the Trustee and no appointment of a successor Trustee pursuant to this Article VI
shall become effective until the acceptance of appointment by the successor Trustee under Section 6.8. 
 (b) The Trustee may
resign at any time by giving written notice thereof to the Company. 
 (c) Unless an Event of Default shall have occurred and be continuing,
the Trustee may be removed at any time by the Company by a Board Resolution. If an Event of Default shall have occurred and be continuing, the Trustee may be removed by Act of the Holders of a majority in aggregate principal amount of the
Outstanding Senior Notes, delivered to the Trustee and to the Company. 
 (d) If the Trustee shall resign, be removed or become incapable of
acting, or if a vacancy shall occur in the office of Trustee for any reason, at a time when no Event of Default shall have occurred and be continuing, the Company, by a Board Resolution, shall promptly appoint a successor Trustee, and such successor
Trustee and the retiring Trustee shall comply with the applicable requirements of Section 6.8. If the Trustee shall resign, be removed or become incapable of acting, or if a vacancy shall occur in the office of Trustee for any reason, at
a time when an Event of Default shall have occurred and be continuing, the Holders, by Act of 

  

 45 

 
the Holders of a majority in aggregate principal amount of the Outstanding Senior Notes, shall promptly appoint a successor Trustee, and such successor
Trustee and the retiring Trustee shall comply with the applicable requirements of Section 6.8. If no successor Trustee shall have been so appointed by the Company or the Holders and accepted appointment within sixty (60) days after
the giving of a notice of resignation by the Trustee or the removal of the Trustee in the manner required by Section 6.8, any Holder who has been a bona fide Holder of a Senior Note for at least six (6) months may, on behalf of such
Holder and all others similarly situated, and any resigning Trustee may, at the expense of the Company, petition any court of competent jurisdiction for the appointment of a successor Trustee. 
 (e) The Company shall give notice to all Holders in the manner provided in Section 1.6 of each resignation and each removal of the Trustee
and each appointment of a successor Trustee. Each notice shall include the name of the successor Trustee and the address of its Corporate Trust Office. 
 Section 6.8 Acceptance of Appointment by Successor. 
 (a) In case of the appointment hereunder of
a successor Trustee, each successor Trustee so appointed shall execute, acknowledge and deliver to the Company and to the retiring Trustee an instrument accepting such appointment, and thereupon the resignation or removal of the retiring Trustee
shall become effective and such successor Trustee, without any further act, deed or conveyance, shall become vested with all the rights, powers, trusts and duties of the retiring Trustee; provided, that on the request of the Company or the
successor Trustee, such retiring Trustee shall, upon payment of its charges, execute and deliver an instrument transferring to such successor Trustee all the rights, powers and trusts of the retiring Trustee and shall duly assign, transfer and
deliver to such successor Trustee all property and money held by such retiring Trustee hereunder. 
 (b) Upon request of any such successor
Trustee, the Company shall execute any and all instruments for more fully and certainly vesting in and confirming to such successor Trustee all rights, powers and trusts referred to in paragraph (a) of this Section 6.8. 

(c) No successor Trustee shall accept its appointment unless at the time of such acceptance such successor Trustee shall be qualified and eligible
under this Article VI. 
 Section 6.9 Merger, Conversion, Consolidation or Succession to Business. 
 Any Person into which the Trustee may be merged or converted or with which it may be consolidated, or any Person resulting from any merger, conversion or
consolidation to which the Trustee shall be a party, or any Person succeeding to all or substantially all of the corporate trust business of the Trustee, shall be the successor of the Trustee hereunder, without the execution or filing of any paper
or any further act on the part of any of the parties hereto; provided, that such Person shall be otherwise qualified and eligible under this Article VI. In case any Senior Notes shall have been authenticated, but not delivered, by the
Trustee then in office, any successor by merger, conversion or consolidation or as otherwise provided above in this Section 6.9 to such authenticating Trustee may adopt such authentication and deliver the Senior Notes so authenticated,
and in case any Senior Notes shall not have been authenticated, any successor to 

  

 46 

 
the Trustee may authenticate such Senior Notes either in the name of any predecessor Trustee or in the name of such successor Trustee, and in all cases the
certificate of authentication shall have the full force which it is provided anywhere in the Senior Notes or in this Indenture that the certificate of the Trustee shall have. 
 Section 6.10 Not Responsible for Recitals or Issuance of Senior Notes. 
 The recitals contained herein and in the Senior Notes, except the Trustee’s certificates of authentication, shall be taken as the statements of the
Company, and neither the Trustee nor any Authenticating Agent assumes any responsibility for their correctness. The Trustee makes no representations as to the validity or sufficiency of this Indenture or of the Senior Notes. Neither the Trustee nor
any Authenticating Agent shall be accountable for the use or application by the Company of the Senior Notes or the proceeds thereof 
 Section 6.11 Appointment of Authenticating Agent. 
 (a) The Trustee may appoint an Authenticating Agent or Agents with
respect to the Senior Notes, which shall be authorized to act on behalf of the Trustee to authenticate Senior Notes issued upon original issue and upon exchange, registration of transfer or partial redemption thereof or pursuant to
Section 3.6, and Senior Notes so authenticated shall be entitled to the benefits of this Indenture and shall be valid and obligatory for all purposes as if authenticated by the Trustee hereunder. Wherever reference is made in this
Indenture to the authentication and delivery of Senior Notes by the Trustee or the Trustee’s certificate of authentication, such reference shall be deemed to include authentication and delivery on behalf of the Trustee by an Authenticating
Agent. Each Authenticating Agent shall be acceptable to the Company and shall at all times be an entity organized and doing business under the laws of the United States of America, or of any State or Territory thereof or the District of Columbia,
authorized under such laws to act as Authenticating Agent, having a combined capital and surplus of not less than $50,000,000 and subject to supervision or examination by federal or state authority. If such Authenticating Agent publishes reports of
condition at least annually pursuant to law or to the requirements of said supervising or examining authority, then for the purposes of this Section 6.11 the combined capital and surplus of such Authenticating Agent shall be deemed to be
its combined capital and surplus as set forth in its most recent report of condition so published. If at any time an Authenticating Agent shall cease to be eligible in accordance with the provisions of this Section 6.11, such
Authenticating Agent shall resign immediately in the manner and with the effect specified in this Section 6.11. 
 (b) Any Person
into which an Authenticating Agent may be merged or converted or with which it may be consolidated, or any Person resulting from any merger, conversion or consolidation to which such Authenticating Agent shall be a party, or any Person succeeding to
all or substantially all of the corporate trust business of an Authenticating Agent shall be the successor Authenticating Agent hereunder; provided, that such Person shall be otherwise eligible under this Section 6.11, without the
execution or filing of any paper or any further act on the part of the Trustee or the Authenticating Agent. 
 (c) An Authenticating Agent
may resign at any time by giving written notice thereof to the Trustee and to the Company. The Trustee may at any time terminate the agency of an 

  

 47 

 
Authenticating Agent by giving written notice thereof to such Authenticating Agent and to the Company. Upon receiving such a notice of resignation or upon
such a termination, or in case at any time such Authenticating Agent shall cease to be eligible in accordance with the provisions of this Section 6.11, the Trustee may appoint a successor Authenticating Agent eligible under the
provisions of this Section 6.11, which shall be acceptable to the Company, and shall give notice of such appointment to all Holders. Any successor Authenticating Agent upon acceptance of its appointment hereunder shall become vested with
all the rights, powers and duties of its predecessor hereunder, with like effect as if originally named as an Authenticating Agent. 
 (d)
The Company agrees to pay to each Authenticating Agent from time to time reasonable compensation for its services under this Section 6.11 in such amounts as the Company and the Authenticating Agent shall agree from time to time.

 (e) If an appointment of an Authenticating Agent is made pursuant to this Section 6.11, the Senior Notes may have endorsed
thereon, in addition to the Trustee’s certificate of authentication, an alternative certificate of authentication in the following form: 
 This is one
of the Senior Notes referred to in the within mentioned Indenture. 
  

					
	Dated:	 	
		 	 WELLS FARGO BANK, N.A., not in its
 individual capacity, but solely as Trustee

			
		 	By:	 	  

		 		 	Authenticating Agent
			
		 	By:	 	  

		 		 	Authenticating Agent

 ARTICLE VII 
 HOLDER’S LISTS AND REPORTS BY COMPANY 
 Section 7.1 Company to Furnish Trustee Names and
Addresses of Holders. 
 The Company will furnish or cause to be furnished to the Trustee: 
 (a) semiannually, on or before June 30 and December 31 of each year, a list, in such form as the Trustee may reasonably require, of the names
and addresses of the Holders as of a date not more than fifteen (15) days prior to the delivery thereof; and 
 (b) at such other times
as the Trustee may request in writing, within thirty (30) days after the receipt by the Company of any such request, a list of similar form and content as of a date not more than fifteen (15) days prior to the time such list is furnished;
in each case to the extent such information is in the possession or control of the Company and has not otherwise been received by the Trustee in its capacity as Securities Registrar. 
  

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 Section 7.2 Preservation of Information, Communications to Holders. 
 (a) The Trustee shall preserve, in as current a form as is reasonably practicable, the names and addresses of Holders contained in the most recent list
furnished to the Trustee as provided in Section 7.1 and the names and addresses of Holders received by the Trustee in its capacity as Securities Registrar. The Trustee may destroy any list furnished to it as provided in
Section 7.1 upon receipt of a new list so furnished. 
 (b) The rights of Holders to communicate with other Holders with respect
to their rights under this Indenture or under the Senior Notes, and the corresponding rights and privileges of the Trustee, shall be as provided in the Trust Indenture Act. 
 (c) Every Holder of Senior Notes, by receiving and holding the same, agrees with the Company and the Trustee that neither the Company nor the Trustee nor
any agent of either of them shall be held accountable by reason of the disclosure of information as to the names and addresses of the Holders made pursuant to the Trust Indenture Act. 
 Section 7.3 Reports by Company. 
 (a) The Company shall furnish to the Holders and to prospective purchasers of Senior Notes, upon their request, the information required to be furnished pursuant to Rule 144A(d)(4) under the Securities Act. The delivery requirement set
forth in the preceding sentence may be satisfied by compliance with Section 7.3(b). 
 (b) The Company shall furnish to each of (i) the Trustee, (ii) the Holders and to subsequent holders of Senior Notes, (iii) JPMorgan Chase Bank, N.A., 277 Park Avenue, 8th Floor, New York, New York 10172, Attention: Mr. John P. McDonagh or such other address as designated by the Original Noteholder) and (iv) any
beneficial owner of the Senior Notes reasonably identified to the Company (which identification may be made either by such beneficial owner or by JPMorgan Chase Bank, N.A.), a duly completed and executed officer’s financial certificate
substantially and substantively in the form attached hereto as Exhibit A, including the financial statements referenced in such Exhibit, which certificate and financial statements shall be so furnished by the Company not later than forty-five
(45) days after the end of each of the first three (3) fiscal quarters of each fiscal year of the Company and not later than ninety (90) days after the end of each fiscal year of the Company, or, if applicable, such shorter respective
periods as may then be required by the Commission for the filing by the Company of quarterly reports on Form 10-Q and annual reports on Form 10-K. 
 (c) If the Company intends to file its annual and quarterly information with the Securities and Exchange Commission (the “Commission”) in electronic form pursuant to Regulation S-T of the Commission using the
Commission’s Electronic Data Gathering, Analysis and Retrieval (“EDGAR”) system, the Company shall notify the Trustee in the manner prescribed herein of each such annual and quarterly filing. The Trustee is hereby authorized
and directed to access the EDGAR system for purposes of retrieving the financial information so filed. Compliance with the foregoing shall constitute delivery by the Company of its financial 

  

 49 

 
statements to the Trustee in compliance with the provisions of Section 314(a) of the Trust Indenture Act, if applicable. The Trustee shall have no duty
to search for or obtain any electronic or other filings that the Company makes with the Commission, regardless of whether such filings are periodic, supplemental or otherwise. Delivery of reports, information and documents to the Trustee pursuant to
this Section 7.3(c) shall be solely for purposes of compliance with this Section 7.3(c) and, if applicable, with Section 314(a) of the Trust Indenture Act, and shall not relieve the Company of the requirement to deliver
the certificate referred to in Section 7.3(b). The Trustee’s receipt of such reports, information and documents shall not constitute notice to it of the content thereof or any matter determinable from the content thereof, including
the Company’s compliance with any of its covenants hereunder, as to which the Trustee is entitled to rely upon Officers’ Certificates. 
 ARTICLE VIII 
 CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE 
 Section 8.1 Company May Consolidate, Etc., Only on Certain Terms. 
 The Company shall not consolidate with or merge into any other Person or convey, transfer or lease its properties and assets substantially as an entirety
to any Person, and no Person shall consolidate with or merge into the Company or convey, transfer or lease its properties and assets substantially as an entirety to the Company, unless: 
 (a) if the Company shall consolidate with or merge into another Person or convey, transfer or lease its properties and assets substantially as an entirety
to any Person, the entity formed by such consolidation or into which the Company is merged or the Person that acquires by conveyance or transfer, or that leases, the properties and assets of the Company substantially as an entirety shall be an
entity organized and existing under the laws of the United States of America or any State or Territory thereof or the District of Columbia and shall expressly assume, by an indenture supplemental hereto, executed and delivered to the Trustee, in
form reasonably satisfactory to the Trustee, the due and punctual payment of the principal of and any premium and interest (including any Additional Interest) on all the Senior Notes and the performance of every covenant of this Indenture on the
part of the Company to be performed or observed; 
 (b) immediately after giving effect to such transaction, no Event of Default, and no
event that, after notice or lapse of time, or both, would constitute an Event of Default, shall have happened and be continuing; and 
 (c)
the Company has delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that such consolidation, merger, conveyance, transfer or lease and, if a supplemental indenture is required in connection with such
transaction, any such supplemental indenture, comply with this Article VIII and that all conditions precedent herein provided for relating to such transaction have been complied with; and the Trustee may rely upon such Officers’
Certificate and Opinion of Counsel as conclusive evidence that such transaction complies with this Section 8.1. 
  

 50 

 Section 8.2 Successor Company Substituted. 
 (a) Upon any consolidation or merger by the Company with or into any other Person, or any conveyance, transfer or lease by the Company of its properties
and assets substantially as an entirety to any Person in accordance with Section 8.1 and the execution and delivery to the Trustee of the supplemental indenture described in Section 8.1(a), the successor entity formed by such
consolidation or into which the Company is merged or to which such conveyance, transfer or lease is made shall succeed to, and be substituted for, and may exercise every right and power of, the Company under this Indenture with the same effect as if
such successor Person had been named as the Company herein; and in the event of any such conveyance or transfer, following the execution and delivery of such supplemental indenture, the Company shall be discharged from all obligations and covenants
under the Indenture and the Senior Notes. 
 (b) Such successor Person to the Company may cause to be executed, and may issue either in its
own name or in the name of the Company, any or all of the Senior Notes issuable hereunder that theretofore shall not have been signed by the Company and delivered to the Trustee; and, upon the order of such successor Person instead of the Company
and subject to all the terms, conditions and limitations in this Indenture prescribed, the Trustee shall authenticate and shall deliver any Senior Notes that previously shall have been signed and delivered by the officers of the Company to the
Trustee for authentication, and any Senior Notes that such successor Person thereafter shall cause to be executed and delivered to the Trustee on its behalf All the Senior Notes so issued shall in all respects have the same legal rank and benefit
under this Indenture as the Senior Notes theretofore or thereafter issued in accordance with the terms of this Indenture. 
 (c) In case of
any such consolidation, merger, sale, conveyance or lease, such changes in phraseology and form may be made in the Senior Notes thereafter to be issued as may be appropriate to reflect such occurrence. 
 ARTICLE IX 
 SUPPLEMENTAL INDENTURES

 Section 9.1 Supplemental Indentures without Consent of Holders. 
 Without the consent of any Holders, the Company, when authorized by a Board Resolution, and the Trustee, at any time and from time to time, may enter into
one or more indentures supplemental hereto, in form reasonably satisfactory to the Trustee, for any of the following purposes: 
 (a) to
evidence the succession of another Person to the Company, and the assumption by any such successor of the covenants of the Company herein and in the Senior Notes; or 
 (b) to evidence and provide for the acceptance of appointment hereunder by a successor trustee; or 
 (c) to
cure any ambiguity, to correct or supplement any provision herein that may be defective or inconsistent with any other provision herein, or to make or amend any other 

  

 51 

 
provisions with respect to matters or questions arising under this Indenture, which shall not be inconsistent with the other provisions of this Indenture;
provided, that such action pursuant to this clause (c) shall not be effected unless the Company has delivered a written notice of such amendment to the Holders at least twenty (20) days prior to the effective date of such amendment;
provided, further, that such action pursuant to this clause (c) shall not adversely affect in any material respect the interests of any Holders; or 
 (d) to comply with the rules and regulations of any securities exchange or automated quotation system on which any of the Senior Notes may be listed, traded or quoted; or 
 (e) to add to the covenants, restrictions or obligations of the Company or to add to the Events of Default; provided, that such action pursuant to
this clause (e) shall not adversely affect in any material respect the interests of any Holders; or 
 (f) to modify, eliminate or add
to any provisions of the Indenture or the Senior Notes to such extent as shall be necessary to ensure that the Senior Notes are treated as indebtedness of the Company for United States federal income tax purposes; provided, that such action
pursuant to this clause (f) shall not adversely affect in any material respect the interests of any Holders. 
 Section 9.2
Supplemental Indentures with Consent of Holders. 
 (a) Subject to Section 9.1, with the consent of the Holders of not less
than a majority in aggregate principal amount of the Outstanding Senior Notes, by Act of said Holders delivered to the Company and the Trustee, the Company, when authorized by a Board Resolution, and the Trustee may enter into an indenture or
indentures supplemental hereto for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this Indenture or of modifying in any manner the rights of the Holders of Senior Notes under this Indenture;
provided, that no such supplemental indenture shall, without the consent of the Holder of each Outstanding Senior Note: 
 (i) except
as set forth in Section 3.1(f), change the Stated Maturity of the principal or any premium of any Senior Note or change the date of payment of any installment of interest (including any Additional Interest) on any Senior Note, or
reduce the principal amount thereof or the rate of interest thereon or any premium payable upon the redemption thereof or change the place of payment where, or the coin or currency in which, any Senior Note or interest thereon is payable, or
restrict or impair the right to institute suit for the enforcement of any such payment on or after such date; or 
 (ii) reduce the
percentage in aggregate principal amount of the Outstanding Senior Notes, the consent of whose Holders is required for any such supplemental indenture, or the consent of whose Holders is required for any waiver of compliance with any provision of
this Indenture or of defaults hereunder and their consequences provided for in this Indenture; or 
 (iii) modify any of the provisions of
this Section 9.2, Section 5.13 or Section 10.6, except to increase any percentage in aggregate principal amount of the Outstanding Senior Notes, the consent of whose Holders is required for any reason, or to
provide that certain other provisions of this Indenture cannot be modified or waived without the consent of the Holder of each Senior Note. 
  

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 (b) It shall not be necessary for any Act of Holders under this Section 9.2 to approve the
particular form of any proposed supplemental indenture, but it shall be sufficient if such Act shall approve the substance thereof. 
 Section 9.3 Execution of Supplemental Indentures. 
 In executing or accepting the additional trusts created by any
supplemental indenture permitted by this Article IX or the modifications thereby of the trusts created by this Indenture, the Trustee shall be entitled to receive, and shall be fully protected in conclusively relying upon, an Officers’
Certificate and an Opinion of Counsel stating that the execution of such supplemental indenture is authorized or permitted by this Indenture, and that all conditions precedent herein provided for relating to such action have been complied with. The
Trustee may, but shall not be obligated to, enter into any such supplemental indenture that affects the Trustee’s own rights, duties, indemnities or immunities under this Indenture or otherwise. Copies of the final form of each supplemental
indenture shall be delivered by the Trustee at the expense of the Company to each Holder promptly after the execution thereof. 
 Section 9.4 Effect of Supplemental Indentures. 
 Upon the execution of any supplemental indenture under this Article
IX, this Indenture shall be modified in accordance therewith, and such supplemental indenture shall form a part of this Indenture for all purposes; and every Holder of Senior Notes theretofore or thereafter authenticated and delivered hereunder
shall be bound thereby. 
 Section 9.5 Reference in Senior Notes to Supplemental Indentures. 
 Senior Notes authenticated and delivered after the execution of any supplemental indenture pursuant to this Article IX may, and shall if required
by the Company, bear a notation in form approved by the Company as to any matter provided for in such supplemental indenture. If the Company shall so determine, new Senior Notes so modified as to conform, in the opinion of the Company, to any such
supplemental indenture may be prepared and executed by the Company and authenticated and delivered by the Trustee in exchange for Outstanding Senior Notes. 
 ARTICLE X 
 COVENANTS 
 Section 10.1 Payment of Principal, Premium, if any, and Interest. 
 The Company covenants and agrees for the benefit of the Holders of the Senior Notes that it will duly and punctually pay the principal of and any premium
and interest (including any Additional Interest) on the Senior Notes in accordance with the terms of the Senior Notes and this Indenture. 
  

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 Section 10.2 Money for Senior Note Payments to be Held in Trust. 
 (a) If the Company shall at any time act as its own Paying Agent with respect to the Senior Notes, it will, on or before each due date of the principal of
and any premium or interest (including any Additional Interest) on the Senior Notes, segregate and hold in trust for the benefit of the Persons entitled thereto a sum sufficient to pay the principal and any premium or interest (including Additional
Interest) so becoming due until such sums shall be paid to such Persons or otherwise disposed of as herein provided, and will promptly notify the Trustee in writing of its failure so to act. 
 (b) Whenever the Company shall have one or more Paying Agents, it will, prior to 10:00 A.M., New York City time, on each due date of the principal of and
any premium or interest (including any Additional Interest) on any Senior Notes, deposit with a Paying Agent a sum sufficient to pay such amount, such sum to be held as provided in the Trust Indenture Act and (unless such Paying Agent is the
Trustee) the Company will promptly notify the Trustee of its failure so to act. 
 (c) The Company will cause each Paying Agent for the
Senior Notes other than the Trustee to execute and deliver to the Trustee an instrument in which such Paying Agent shall agree with the Trustee, subject to the provisions of this Section 10.2, that such Paying Agent will (i) comply
with the provisions of this Indenture and the Trust Indenture Act applicable to it as a Paying Agent and (ii) during the continuance of any default by the Company (or any other obligor upon the Senior Notes) in the making of any payment in
respect of the Senior Notes, upon the written request of the Trustee, forthwith pay to the Trustee all sums held in trust by such Paying Agent for payment in respect of the Senior Notes. 
 (d) The Company may at any time, for the purpose of obtaining the satisfaction and discharge of this Indenture or for any other purpose, pay, or by
Company Order direct any Paying Agent to pay, to the Trustee all sums held in trust by the Company or such Paying Agent, such sums to be held by the Trustee upon the same trusts as those upon which such sums were held by the Company or such Paying
Agent; and, upon such payment by any Paying Agent to the Trustee, such Paying Agent shall be released from all further liability with respect to such money. 
 (e) Any money deposited with the Trustee or any Paying Agent, or then held by the Company in trust for the payment of the principal of and any premium or interest (including any Additional Interest) on any Senior Note
and remaining unclaimed for two (2) years after such principal and any premium or interest has become due and payable shall (unless otherwise required by mandatory provision of applicable escheat or abandoned or unclaimed property law) be paid
on Company Request to the Company, or (if then held by the Company) shall (unless otherwise required by mandatory provision of applicable escheat or abandoned or unclaimed property law) be discharged from such trust; and the Holder of such Senior
Note shall thereafter, as an unsecured general creditor, look only to the Company for payment thereof, and all liability of the Trustee or such Paying Agent with respect to such trust money, and all liability of the Company as trustee thereof, shall
thereupon cease; provided, that the Trustee or such Paying Agent, before being required to make any such repayment, may at the expense of the Company cause to be published once, in a newspaper published in the English language, customarily

  

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published on each Business Day and of general circulation in the Borough of Manhattan, The City of New York, notice that such money remains unclaimed and
that, after a date specified therein, which shall not be less than thirty (30) days from the date of such publication, any unclaimed balance of such money then remaining will be repaid to the Company. 
 Section 10.3 Statement as to Compliance. 
 The Company shall deliver to the Trustee, within one hundred twenty (120) days after the end of each fiscal year of the Company ending after the date hereof, an Officers’ Certificate (substantially in the form attached hereto as
Exhibit B) covering the preceding calendar year, stating whether or not to the knowledge of the signers thereof the Company is in default in the performance or observance of any of the terms, provisions and conditions of this Indenture
(without regard to any period of grace or requirement of notice provided hereunder), and if the Company shall be in default, specifying all such defaults and the nature and status thereof of which they may have knowledge. 
 Section 10.4 Calculation Agent. 
 (a) The Company hereby agrees that for so long as any of the Senior Notes remain Outstanding, there will at all times be an agent appointed to calculate LIBOR in respect of each Interest Payment Date in accordance with the terms of
Schedule A (the “Calculation Agent”). The Company has initially appointed the Trustee as Calculation Agent for purposes of determining LIBOR for each Interest Payment Date. Notwithstanding the foregoing, so long as the Senior
Notes are Outstanding, the Calculation Agent shall be the Trustee. If the Calculation Agent is unable or unwilling to act as such or is removed by the Company, the Company will promptly appoint as a replacement Calculation Agent the London office of
a leading bank which is engaged in transactions in three (3)-month Eurodollar deposits in the international Eurodollar market and which does not control or is not controlled by or under common control with the Company or its Affiliates. The
Calculation Agent may not resign its duties without a successor having been duly appointed. 
 (b) The Calculation Agent shall be required to
agree that, as soon as possible after 11:00 A.M. (London time) on each LIBOR Determination Date (as defined in Schedule A), but in no event later than 11:00 A.M. (London time) on the Business Day immediately following each LIBOR Determination
Date, the Calculation Agent will calculate the interest rate (the interest payment shall be rounded to the nearest cent, with half a cent being rounded upwards) for the related Interest Payment Date, and will communicate such rate and amount to the
Company, the Trustee, each Paying Agent and the Depositary. The Calculation Agent will also specify to the Company the quotations upon which the foregoing rates and amounts are based and, in any event, the Calculation Agent shall notify the Company
before 5:00 P.M. (London time) on each LIBOR Determination Date that either: (i) it has determined or is in the process of determining the foregoing rates and amounts or (ii) it has not determined and is not in the process of determining
the foregoing rates and amounts, together with its reasons therefor. The Calculation Agent’s determination of the foregoing rates and amounts for any Interest Payment Date will (in the absence of manifest error) be final and binding upon all
parties. For the sole purpose of calculating the interest rate for the Senior Notes, “Business Day” shall be defined as any day on which dealings in deposits in Dollars are transacted in the London interbank market. 
  

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 Section 10.5 Additional Covenants. 
 (a) The Company covenants and agrees with each Holder of Senior Notes that if an Event of Default shall have occurred and be continuing, it shall not
(i) declare or pay any dividends or distributions on, or redeem, purchase, acquire or make a liquidation payment with respect to, any Equity Interests of the Company, (ii) vote in favor of or permit or otherwise allow any of its
Subsidiaries to declare or pay any dividends or distributions on, or redeem, purchase, acquire or make a liquidation payment with respect to or otherwise retire, any preferred Equity Interests of such Subsidiaries or other Equity Interests entitling
the holders thereof to a stated rate of return (for the avoidance of doubt, whether such preferred Equity Interests are perpetual or otherwise), or (iii) make any payment of principal of or any interest or premium, if any, on or repay,
repurchase or redeem any Debt of the Company other than Permitted Debt (other than (A) repurchases, redemptions or other acquisitions of Equity Interests of the Company in connection with any employment contract, benefit plan or other similar
arrangement with or for the benefit of any one or more employees, officers, directors or consultants, in connection with a dividend reinvestment or Equity Interests purchase plan or in connection with the issuance of Equity Interests in the Company
(or securities convertible into or exercisable for such Equity Interests) as consideration in an acquisition transaction entered into prior to the applicable Event of Default, (B) as a result of an exchange, conversion reclassification or
combination of any class or series of the Company’s Equity Interests (or any Equity Interests in a Subsidiary of the Company) for any class or series of the Company’s Equity Interests or of any class or series of the Company’s
indebtedness for any class or series of the Company’s Equity Interests, (C) the purchase of fractional interests in the Equity Interests of the Company pursuant to the conversion or exchange provisions of such Equity Interests or the
security being converted or exchanged, (D) any declaration of a dividend in connection with any Rights Plan, the issuance of rights, Equity Interests or other property under any Rights Plan or the redemption or repurchase of rights pursuant
thereto or (E) any dividend in the form of Equity Interests, warrants, options or other rights where the dividend Equity Interest or the Equity Interest issuable upon exercise of such warrants, options or other rights is the same Equity
Interest as that on which the dividend is being paid or ranks pan passu with or junior to such Equity Interest). 
 (b) The Company shall
notify in writing, within five (5) Business Days of the occurrence thereof, the Trustee and each Holder of Senior Notes of the occurrence of a Change-of-Control (the “Change-of-Control Notice”). Within thirty (30) days of
the occurrence of a Change-of-Control, the Depositor shall initiate a ratings affirmation process with the Ratings Agencies to determine if a Ratings Downgrade has occurred as a result of such Change-of-Control. Within five (5) Business Days of
the completions of such ratings affirmation process, the Company shall notify in writing the Trustee and each holder of Senior Notes of the occurrence of a Change-of-Control Event (the “Change-of-Control Event Notice”). If the
Company shall have received, within thirty (30) days from the Holders of Senior Notes’ receipt of the Change-of-Control Event Notice, written notice from any Holder of Senior Notes of such Holder’s election to cause the Defeasance or
redemption, as applicable, of the Senior Notes as provided in this Section 10.5(b) (the “Change-of-Control Election”), then the Company shall (i) if such Change-of-Control Election is received on or prior to
June 30, 2011, cause Article XIII to be applied to the Outstanding Senior Notes or (ii) if such Change-of-Control Election is received after June 30, 2011, redeem the Senior Notes pursuant to Section 11.1(b).

  

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 (c) The Company hereby covenants and agrees that the Company shall maintain, as of the end of each fiscal
quarter commencing with the Company’s second fiscal quarter during 2008, a Consolidated Tangible Net Worth (as reported in the Company’s balance sheet contained in the most recent periodic report filed with the Commission) in excess of
$35,000,000. 
 (d) The Company will not permit the Leverage Ratio, as of the end of each fiscal quarter, to be greater than 3.00 to 1.00
commencing with the Company’s second fiscal quarter during 2008. 
 (e) The Company will not permit the Fixed Charge Coverage Ratio, as
of the end of each fiscal quarter commencing with the Company’s second fiscal quarter during 2008, to be less than 0.50 to 1.00. 
 (f)
Until such time as the Company shall (x) have maintained a Fixed Charge Coverage Ratio of not less than 2.0 to 1.0 as of the two (2) immediately preceding fiscal quarters, in each case, for, collectively, such quarter together with the
preceding three (3) quarters and (y) be in compliance with all other covenants contained herein, the Company shall not repurchase any Equity Interests of the Company unless in connection with such repurchase of Equity Interests (an
“Acceptable Repurchase”) (i) the Company will redeem pursuant to Section 11.l(d) an amount of Senior Notes having an outstanding principal amount equal to the purchase price of such Equity Interests to be
repurchased up to a maximum of $7,000,000, (ii) the redemption and defeasance of such Senior Notes shall be in increments of $1,000,000 and (iii) the redemption and defeasance, if any, of such Senior Notes shall be consummated and all
payments or deposits made with respect thereto shall be made prior to the consummation of the repurchase of any Equity Interests. 
 (g) The
Company covenants and agrees with each Holder of Senior Notes that it shall not issue any Equity Interests of the Company to any Affiliate of the Company which are preferred in any manner to the Company’s shares of Class A common stock.

 (h) The Company shall not, and shall not permit any Subsidiary to, directly or indirectly, enter into or conduct any transaction or series
of related transactions with an Affiliate of the Company on terms that are less favorable to the Company or such Subsidiary, as the case may be, than those that could be obtained at the time of such transaction in arm’s-length dealings with a
Person who is not such an Affiliate. 
 Section 10.6 Waiver of Covenants. 
 The Company may omit in any particular instance to comply with any covenant or condition contained in Section 10.5 if, before or after the
time for such compliance, the Holders of at least a majority in aggregate principal amount of the Outstanding Senior Notes shall, by Act of such Holders, either waive such compliance in such instance or generally waive compliance with such covenant
or condition, but no such waiver shall extend to or affect such covenant or condition except to the extent so expressly waived, and, until such waiver shall become effective, the obligations of the Company in respect of any such covenant or
condition shall remain in full force and effect. 
  

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 Section 10.7 Treatment of Senior Notes. 
 The Company will treat the Senior Notes as indebtedness, and the amounts, other than payments of principal, payable in respect of the principal amount of
such Senior Notes as interest, for all U.S. federal income tax purposes. All payments in respect of the Senior Notes will be made free and clear of U.S. withholding tax to any beneficial owner thereof that has provided an Internal Revenue Service
Form W-9 or W-8BEN (or any substitute or successor form) establishing its U.S. or non-U.S. status for U.S. federal income tax purposes, or any other applicable form establishing a complete exemption from U.S. withholding tax. 
 Section 10.8 Limitation on Issuance of Debt. 
 The Company hereby agrees not to, without the prior written consent of Holders of a majority of outstanding principal amount of the Senior Notes, issue, offer, sell, contract to sell, grant any option to purchase or
otherwise dispose of, directly or indirectly, any other Debt unless the Company shall be in compliance with each of the covenants contained in this Indenture after taking into account such issuance, offer, sale, contract to sell, grant, purchase or
other disposition and (i) such Debt is Permitted Debt or (ii) such Debt (A) shall be expressly subordinate by its terms to the Senior Notes and (B) shall not contain any covenants of the Company which are more restrictive than
the covenants contained in this Indenture. 
 ARTICLE XI 
 REDEMPTION OF SENIOR NOTES 
 Section 11.1 Optional Redemption and Mandatory Redemptions.

 (a) The Company may, at its option, on any Interest Payment Date redeem the Senior Notes in whole at any time or, subject to the consent of
the Holders, in part from time to time, in each case at a Redemption Price equal to one hundred percent (100%) of the principal amount thereof (or of the redeemed portion thereof, as applicable), together, in the case of any such redemption,
with accrued and unpaid interest, including any Additional Interest, to but excluding the date fixed as the Redemption Date and plus all Breakage Costs (the “Optional Redemption Price”). 
 (b) The Company shall, upon receipt of a Change-of-Control Election after June 30 2011, redeem the Senior Notes in whole on a date no more than
thirty (30) days after receipt of the Change-of-Control Election, at a Redemption Price equal to one hundred percent (100%) of the outstanding principal amount thereof, together, in the case of any such redemption, with accrued and unpaid
interest, including any Additional Interest, to but excluding the date fixed as the Redemption Date (the “Change of Control Mandatory Redemption Price”). 
 (c) The Company shall, in connection with an Acceptable Repurchase, redeem the portion of Senior Notes required to be redeemed pursuant to Section 10.5(f), at a Redemption Price equal to one hundred
percent (100%) of the principal amount of the redeemed portion of the Securities, together with, in the case of any such redemption, any accrued and unpaid interest, including any Additional Interest, to but excluding the date fixed as the
Redemption Date and plus all Breakage Costs (the “Acceptable Repurchase Mandatory Redemption Price”). 
  

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 Section 11.2 [Reserved]. 
 Section 11.3 Election to Redeem; Notice to Trustee. 
 The election of the Company to redeem any Senior Notes, in whole or in part, shall be evidenced by or pursuant to a Board Resolution. In case of any redemption at the election of the Company, the Company shall, not
less than forty-five (45) days and not more than seventy-five (75) days prior to the Redemption Date (unless a shorter notice shall be satisfactory to the Trustee), notify the Trustee in writing of such date and of the principal amount of
the Senior Notes to be redeemed and provide the additional information required to be included in the notice or notices contemplated by Section 11.5. In the case of any redemption of Senior Notes, in whole or in part, (a) prior to
the expiration of any restriction on such redemption provided in this Indenture or the Senior Notes or (b) pursuant to an election of the Company which is subject to a condition specified in this Indenture or the Senior Notes, the Company shall
furnish the Trustee with an Officers’ Certificate and an Opinion of Counsel evidencing compliance with such restriction or condition. 
 Section 11.4 Selection of Senior Notes to be Redeemed. 
 (a) If less than all the Senior Notes are to be redeemed, the
particular Senior Notes to be redeemed shall be selected and redeemed on a pro rata basis not more than sixty (60) days prior to the Redemption Date by the Trustee from the Outstanding Senior Notes not previously called for redemption;
provided, that the unredeemed portion of the principal amount of any Senior Note shall be in an authorized denomination (which shall not be less than the minimum authorized denomination) for such Senior Note. 
 (b) The Trustee shall promptly notify the Company in writing of the Senior Notes selected for redemption and, in the case of any Senior Notes selected
for partial redemption, the principal amount thereof to be redeemed. For all purposes of this Indenture, unless the context otherwise requires, all provisions relating to the redemption of Senior Notes shall relate, in the case of any Senior Note
redeemed or to be redeemed only in part, to the portion of the principal amount of such Senior Note that has been or is to be redeemed. 
 (c) The provisions of paragraphs (a) and (b) of this Section 11.4 shall not apply with respect to any redemption affecting only a single Senior Note, whether such Senior Note is to be redeemed in whole or in part. In
the case of any such redemption in part, the unredeemed portion of the principal amount of the Senior Note shall be in an authorized denomination (which shall not be less than the minimum authorized denomination) for such Senior Note. 
 Section 11.5 Notice of Redemption. 
 (a) Notice of redemption shall be given not later than the thirtieth (30th) day, and not earlier than the sixtieth (60th) day, prior to the Redemption Date to each Holder of Senior Notes to be redeemed, in whole or in part.

 (b) With respect to Senior Notes to be redeemed, in whole or in part, each notice of redemption shall state: 
  

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 (i) the Redemption Date; 
 (ii) the Redemption Price or, if the Redemption Price cannot be calculated prior to the time the notice is required to be sent, the estimate of the Redemption Price, as calculated by the Company, together with a
statement that it is an estimate and that the actual Redemption Price will be calculated on the fifth Business Day prior to the Redemption Date (and if an estimate is provided, a further notice shall be sent of the actual Redemption Price on the
date that such Redemption Price is calculated); 
 (iii) if less than all Outstanding Senior Notes are to be redeemed, the identification
(and, in the case of partial redemption, the respective principal amounts) of the amount of and particular Senior Notes to be redeemed; 
 (iv) that on the Redemption Date, the Redemption Price will become due and payable upon each such Senior Note or portion thereof, and that any interest (including any Additional Interest) on such Senior Note or such portion, as the case may
be, shall cease to accrue on and after said date; and 
 (v) the place or places where such Senior Notes are to be surrendered for payment of
the Redemption Price. 
 (c) Notice of redemption of Senior Notes to be redeemed, in whole or in part, at the election of the Company shall
be given by the Company or, at the Company’s written request, by the Trustee in the name and at the expense of the Company and shall be irrevocable. The notice if mailed in the manner provided above shall be conclusively presumed to have been
duly given, whether or not the Holder receives such notice. In any case, a failure to give such notice by mail or any defect in the notice to the Holder of any Senior Note designated for redemption as a whole or in part shall not affect the validity
of the proceedings for the redemption of any other Senior Note. 
 Section 11.6 Deposit of Redemption Price. 
 Prior to 10:00 A.M., New York City time, on the Redemption Date specified in the notice of redemption given as provided in Section 11.5, the
Company will deposit with the Trustee or with one or more Paying Agents (or if the Company is acting as its own Paying Agent, the Company will segregate and hold in trust as provided in Section 10.2) an amount of money sufficient to pay
the Redemption Price of, and any accrued interest (including any Additional Interest) on, all the Senior Notes (or portions thereof) that are to be redeemed on that date. 
 Section 11.7 Payment of Senior Notes Called for Redemption. 
 (a) If any notice of redemption has
been given as provided in Section 11.5, the Senior Notes or portion of Senior Notes with respect to which such notice has been given shall become due and payable on the date and at the place or places stated in such notice at the
applicable Redemption Price. On presentation and surrender of such Senior Notes at a Place of Payment specified in such notice, the Senior Notes or the specified portions thereof shall be paid and redeemed by the Company at the applicable Redemption
Price. 
  

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 (b) Upon presentation of any Senior Note redeemed in part only, the Company shall execute and the Trustee
shall authenticate and deliver to the Holder thereof, at the expense of the Company, a new Senior Note or Senior Notes, of authorized denominations, in aggregate principal amount equal to the unredeemed portion of the Senior Note so presented and
having the same Original Issue Date, Stated Maturity and terms. 
 (c) If any Senior Note called for redemption shall not be so paid upon
surrender thereof for redemption, the principal of and any premium on such Senior Note shall, until paid, bear interest from and including the Redemption Date at the rate prescribed therefor in the Senior Note. 
 ARTICLE XII 
 SUBORDINATION OF
SECURITIES 
 Section 12.1 Senior Notes Subordinate to Permitted Debt. 
 The Company covenants and agrees, and each Holder of a Senior Note, by its acceptance thereof, likewise covenants and agrees, that, to the extent and in
the manner hereinafter set forth in this Article XII, the payment of the principal of and any premium and interest (including any Additional Interest) on each and all of the Senior Notes is hereby expressly made subordinate and subject in
right of payment to the prior payment in full of all Permitted Debt. 
 Section 12.2 No Payment When Permitted Debt in Default;
Payment Over of Proceeds Upon Dissolution, Etc. 
 (a) In the event of a bankruptcy, insolvency or other proceeding described in clause
(d) or (e) of the definition of Event of Default specified in Section 5.1 (each such event, if any, herein sometimes referred to as a “Proceeding”), all Permitted Debt (including any interest thereon accruing
after the commencement of any such proceedings) shall first be paid in full before any payment or distribution, whether in cash, securities or other property, shall be made to any Holder of any of the Senior Notes on account thereof. Any payment or
distribution, whether in cash, securities or other property (other than securities of the Company or any other entity provided for by a plan of reorganization or readjustment the payment of which is subordinate, at least to the extent provided in
these subordination provisions with respect to the indebtedness evidenced by the Senior Notes, to the payment of all Permitted Debt at the time outstanding and to any securities issued in respect thereof under any such plan of reorganization or
readjustment), which would otherwise (but for these subordination provisions) be payable or deliverable in respect of the Senior Notes shall be paid or delivered directly to the holders of Permitted Debt in accordance with the priorities then
existing among such holders until all Permitted Debt (including any interest thereon accruing after the commencement of any Proceeding) shall have been paid in full. 
 (b) In the event of any Proceeding, after payment in full of all sums owing with respect to Permitted Debt, the Holders of the Senior Notes, together with the holders of any obligations of the Company ranking on a
parity with the Senior Notes, shall be entitled to be paid from the remaining assets of the Company the amounts at the time due and owing on account of 

  

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unpaid principal of and any premium and interest (including any Additional Interest) on the Senior Notes and such other obligations before any payment or
other distribution, whether in cash, property or otherwise, shall be made on account of any Equity Interests or any obligations of the Company ranking junior to the Senior Notes and such other obligations. If, notwithstanding the foregoing, any
payment or distribution of any character on any security, whether in cash, securities or other property (other than securities of the Company or any other entity provided for by a plan of reorganization or readjustment the payment of which is
subordinate, at least to the extent provided in these subordination provisions with respect to the indebtedness evidenced by the Senior Notes, to the payment of all Permitted Debt at the time outstanding and to any securities issued in respect
thereof under any such plan of reorganization or readjustment) shall be received by the Trustee or any Holder in contravention of any of the terms hereof and before all Permitted Debt shall have been paid in full, such payment or distribution or
security shall be received in trust for the benefit of, and shall be paid over or delivered and transferred to, the holders of the Permitted Debt at the time outstanding in accordance with the priorities then existing among such holders for
application to the payment of all Permitted Debt remaining unpaid, to the extent necessary to pay all such Permitted Debt (including any interest thereon accruing after the commencement of any Proceeding) in full. In the event of the failure of the
Trustee or any Holder to endorse or assign any such payment, distribution or security, each holder of Permitted Debt is hereby irrevocably authorized to endorse or assign the same. 
 (c) The Trustee and the Holders, at the expense of the Company, shall take such reasonable action (including the delivery of this Indenture to an agent
for any holders of Permitted Debt or consent to the filing of a financing statement with respect hereto) as may, in the opinion of counsel designated by the holders of a majority in principal amount of the Permitted Debt at the time outstanding, be
necessary or appropriate to assure the effectiveness of the subordination effected by these provisions. 
 (d) The provisions of this
Section 12.2 shall not impair any rights, interests, remedies or powers of any secured creditor of the Company in respect of any security interest the creation of which is not prohibited by the provisions of this Indenture. 

(e) The securing of any obligations of the Company, otherwise ranking on a parity with the Senior Notes or ranking junior to the Senior Notes, shall
not be deemed to prevent such obligations from constituting, respectively, obligations ranking on a parity with the Senior Notes or ranking junior to the Senior Notes. 
 Section 12.3 Payment Permitted if No Proceeding. 
 Nothing contained in this Article XII
or elsewhere in this Indenture or in any of the Senior Notes shall prevent (a) the Company, at any time, except during the pendency of any Proceeding referred to in Section 12.2, from making payments at any time of principal of,
premium, if any, or interest (including any Additional Interest) on the Senior Notes or (b) the application by the Trustee of any moneys deposited with it hereunder to the payment of or on account of the principal of, premium, if any, or
interest (including any Additional Interest) on the Senior Notes or the retention of such payment by the Holders, if, at the time of such application by the Trustee, it did not have knowledge (in accordance with Section 12.8) that such
payment would have been prohibited by the provisions of this Article XII, except as provided in Section 12.8. 
  

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 Section 12.4 Subrogation to Rights of Holders of Permitted Debt. 
 Subject to the payment in full of all amounts due or to become due on all Permitted Debt, or the provision for such payment in cash or cash equivalents or
otherwise in a manner satisfactory to the holders of Permitted Debt, the Holders of the Senior Notes shall be subrogated to the extent of the payments or distributions made to the holders of such Permitted Debt pursuant to the provisions of this
Article XII (equally and ratably with the holders of all indebtedness of the Company that by its express terms is subordinated to Permitted Debt of the Company to substantially the same extent as the Senior Notes are subordinated to the
Permitted Debt and is entitled to like rights of subrogation by reason of any payments or distributions made to holders of such Permitted Debt) to the rights of the holders of such Permitted Debt to receive payments and distributions of cash,
property and securities applicable to the Permitted Debt until the principal of and any premium and interest (including any Additional Interest) on the Senior Notes shall be paid in full. For purposes of such subrogation, no payments or
distributions to the holders of the Permitted Debt of any cash, property or securities to which the Holders of the Senior Notes or the Trustee would be entitled except for the provisions of this Article XII, and no payments made pursuant to
the provisions of this Article XII to the holders of Permitted Debt by Holders of the Senior Notes or the Trustee, shall, as among the Company, its creditors other than holders of Permitted Debt, and the Holders of the Senior Notes, be deemed
to be a payment or distribution by the Company to or on account of the Permitted Debt. 
 Section 12.5 Provisions Solely to Define
Relative Rights. 
 The provisions of this Article XII are and are intended solely for the purpose of defining the relative rights
of the Holders of the Senior Notes on the one hand and the holders of Permitted Debt on the other hand. Nothing contained in this Article XII or elsewhere in this Indenture or in the Senior Notes is intended to or shall (a) impair, as
between the Company and the Holders of the Senior Notes, the obligations of the Company, which are absolute and unconditional, to pay to the Holders of the Senior Notes the principal of and any premium and interest (including any Additional
Interest) on the Senior Notes as and when the same shall become due and payable in accordance with their terms, (b) affect the relative rights against the Company of the Holders of the Senior Notes and creditors of the Company other than their
rights in relation to the holders of Permitted Debt or (c) prevent the Trustee or any Holder from exercising all remedies otherwise permitted by applicable law upon default under this Indenture, including filing and voting claims in any
Proceeding, subject to the rights, if any, under this Article XII of the holders of Permitted Debt to receive cash, property and securities otherwise payable or deliverable to the Trustee or such Holder. 
 Section 12.6 Trustee to Effectuate Subordination. 
 Each Holder of a Senior Note by his, her or its acceptance thereof authorizes and directs the Trustee on his, her or its behalf to take such action as may be necessary or appropriate to acknowledge or effectuate the
subordination provided in this Article XII and appoints the Trustee his, her or its attorney-in-fact for any and all such purposes. 
  

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 Section 12.7 No Waiver of Subordination Provisions. 
 (a) No right of any present or future holder of any Permitted Debt to enforce subordination as herein provided shall at any time in any way be prejudiced
or impaired by any act or failure to act on the part of the Company or by any act or failure to act, in good faith, by any such holder, or by any noncompliance by the Company with the terms, provisions and covenants of this Indenture, regardless of
any knowledge thereof that any such holder may have or be otherwise charged with. 
 (b) Without in any way limiting the generality of
paragraph (a) of this Section 12.7, the holders of Permitted Debt may, at any time and from to time, without the consent of or notice to the Trustee or the Holders of the Senior Notes, without incurring responsibility to such
Holders of the Senior Notes and without impairing or releasing the subordination provided in this Article XII or the obligations hereunder of such Holders of the Senior Notes to the holders of Permitted Debt, do any one or more of the
following, so long as such Permitted Debt shall remain Permitted Debt thereafter: (i) change the manner, place or terms of payment or extend the time of payment of, or renew or alter, Permitted Debt, or otherwise amend or supplement in any
manner Permitted Debt or any instrument evidencing the same or any agreement under which Permitted Debt is outstanding, (ii) sell, exchange, release or otherwise deal with any property pledged, mortgaged or otherwise securing Permitted Debt,
(iii) release any Person liable in any manner for the payment of Permitted Debt and (iv) exercise or refrain from exercising any rights against the Company and any other Person. 
 Section 12.8 Notice to Trustee. 
 The Company shall give prompt written notice to a Responsible Officer of the Trustee of any fact known to the Company that would prohibit the making of any payment to or by the Trustee in respect of the Senior Notes. Notwithstanding the
provisions of this Article XII or any other provision of this Indenture, the Trustee shall not be charged with knowledge of the existence of any facts that would prohibit the making of any payment to or by the Trustee in respect of the Senior
Notes, unless and until a Responsible Officer of the Trustee shall have received written notice thereof from the Company or a holder of Permitted Debt or from any trustee, agent or representative therefor; provided, that if the Trustee shall
not have received the notice provided for in this Section 12.8 at least two Business Days prior to the date upon which by the terms hereof any monies may become payable for any purpose (including, the payment of the principal of and any
premium on or interest (including any Additional Interest) on any Senior Note), then, anything herein contained to the contrary notwithstanding, the Trustee shall have full power and authority to receive such monies and to apply the same to the
purpose for which they were received and shall not be affected by any notice to the contrary that may be received by it within two Business Days prior to such date. 
 The Trustee shall be entitled to rely on the delivery to it of a written notice by a Person representing himself, herself or itself to be a holder of Permitted Debt (or a trustee, agent, representative or
attorney-in-fact therefor) to establish that such notice has been given by a holder of Permitted Debt (or a trustee, agent, representative or attorney-in-fact therefor). In the event that the Trustee determines in good faith that further evidence is
required with respect to the right of any Person as a holder of Permitted Debt to participate in any payment or distribution 

  

 64 

 
pursuant to this Article XII, the Trustee may request such Person to furnish evidence to the reasonable satisfaction of the Trustee as to the amount
of Permitted Debt held by such Person, the extent to which such Person is entitled to participate in such payment or distribution and any other facts pertinent to the rights of such Person under this Article XII, and if such evidence is not
furnished, the Trustee may defer any payment to such Person pending judicial determination as to the right of such Person to receive such payment. 
 Section 12.9 Reliance on Judicial Order or Certificate of Liquidating Agent. 
 Upon any payment or distribution of
assets of the Company referred to in this Article XII, the Trustee and the Holders of the Senior Notes shall be entitled to conclusively rely upon any order or decree entered by any court of competent jurisdiction in which such Proceeding is
pending, or a certificate of the trustee in bankruptcy, receiver, liquidating trustee, custodian, assignee for the benefit of creditors, agent or other Person making such payment or distribution, delivered to the Trustee or to the Holders of Senior
Notes, for the purpose of ascertaining the Persons entitled to participate in such payment or distribution, the holders of the Permitted Debt and other indebtedness of the Company, the amount thereof or payable thereon, the amount or amounts paid or
distributed thereon and all other facts pertinent thereto or to this Article XII. 
 Section 12.10 Trustee Not Fiduciary for
Holders of Permitted Debt. 
 The Trustee, in its capacity as trustee under this Indenture, shall not be deemed to owe any fiduciary duty
to the holders of Permitted Debt and shall not be liable to any such holders if it shall in good faith mistakenly pay over or distribute to Holders of Senior Notes or to the Company or to any other Person cash, property or securities to which any
holders of Permitted Debt shall be entitled by virtue of this Article XII or otherwise. 
 Section 12.11 Rights of Trustee as
Holder of Permitted Debt~ Preservation of Trustee’s Rights. 
 The Trustee in its individual capacity shall be entitled to all the
rights set forth in this Article XII with respect to any Permitted Debt that may at any time be held by it, to the same extent as any other holder of Permitted Debt, and nothing in this Indenture shall deprive the Trustee of any of its rights
as such holder. 
 Section 12.12 Article Applicable to Paying Agents. 
 If at any time any Paying Agent other than the Trustee shall have been appointed by the Company and be then acting hereunder, the term
“Trustee” as used in this Article XII shall in such case (unless the context otherwise requires) be construed as extending to and including such Paying Agent within its meaning as fully for all intents and purposes as if such
Paying Agent were named in this Article XII in addition to or in place of the Trustee; provided, that Sections 12.8 and 12.11 shall not apply to the Company or any Affiliate of the Company if the Company or such Affiliate
acts as Paying Agent. 
  

 65 

 ARTICLE XIII 
 DEFEASANCE 
 Section 13.1 Defeasance and Discharge. 
 In the event of the exercise of the option provided in Section 10.5(b) by a Holder of the Senior Notes as a result of the receipt of a
Change-of-Control Election on or prior to June 30, 2011, and the result that this Section 13.1 shall be applied to the Outstanding Senior Notes (the “Defeasance Senior Notes”), the Company shall, within thirty
(30) days following its receipt of the Change-of-Control Election, satisfy the conditions set forth in Section 13.2. The Company shall be deemed to have been discharged from its obligations with respect to the Defeasance Senior
Notes as provided in this Section 13.1 on and after the date the conditions set forth in the Section 13.2 are satisfied (hereinafter called “Defeasance”). For this purpose, such Defeasance means that the
Company shall be deemed to have paid and discharged the entire indebtedness represented by the Defeasance Senior Notes and to have satisfied all of its other obligations under the Defeasance Senior Notes and this Indenture insofar as the Defeasance
Senior Notes are concerned (and the Trustee, upon written request and at the expense of the Company, shall execute proper instruments acknowledging the same), subject to the following, which shall survive until otherwise terminated or discharged
hereunder (1) the rights of Holders of the Defeasance Senior Notes to receive, solely from the trust fund described in Section 13.2 and as more fully set forth in such Section 13.2, payments in respect of the principal
of~ premium, if any, and interest on the Defeasance Senior Notes when payments are due, (2) the Company’s obligations with respect to the Defeasance Senior Notes under Sections 2.4, 3.5, 3.6, and 10.2,
(3) the rights, powers, trusts, duties and immunities of the Trustee hereunder and (4) this Article XIII. 
 Section 13.2 Conditions to Defeasance. 
 The following shall be the conditions to application of
Section 13.1 to the Defeasance Senior Notes: 
 (1) The Company shall irrevocably have deposited or caused to be deposited with
the Trustee (or another trustee that satisfies the requirements contemplated by Section 6.1 and agree to comply with the provisions of this Article XIII applicable to it) as trust funds in trust for the purpose of making the
following payments, specifically pledged as security for, and dedicated solely to, the benefit of the Holders of Defeasance Senior Notes, (A) money in an amount in Dollars, (B) Government Obligations that through the scheduled payment of
principal and interest in respect thereof in accordance with their terms will provide, not later than one day before the due date of any payment, money in an amount in Dollars, or (C) a combination thereof, in each case sufficient, in the
opinion of a nationally recognized firm of independent public accountants expressed in a written certification thereof delivered to the Trustee, to pay and discharge, and which shall be applied by the Trustee (or any such other qualifying Trustee)
to pay and discharge, one hundred percent (100%) of the principal amount of the Defeasance Senior Notes on June 30, 2011 (the “Defeasance Maturity Date”) plus interest on the Defeasance Senior Notes due and payable on the
Interest Payment Dates occurring prior to and including the Defeasance Maturity Date and Breakage Costs, if any, less Breakage Gains, if any, in accordance with the terms of this Indenture and the Defeasance Senior Notes. 
  

 66 

 (2) Such Defeasance shall not cause the Trustee to have a conflicting interest within the meaning of the
Trust Indenture Act. 
 (3) Such Defeasance shall not result in the trust arising from such deposit constituting an “investment
company” within the meaning of the Investment Company Act of 1940, unless such trust shall be qualified or exempt from regulation thereunder. 
 (4) The Company shall have delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that all conditions precedent with respect to such Defeasance have been complied with. 
 Section 13.3 Deposited Money and U.S. Government Obligations to be Held in Trust; Other Miscellaneous Provisions. 
 Subject to the provisions of Section 10.2(e), all money and Government Obligations (including the proceeds thereof) deposited with the Trustee
or other qualifying trustee (solely for purposes of this Section 13.3 and Section 13.4, the Trustee and any such other trustee are referred to collectively as the “Trustee”) pursuant to Section 13.2 in
respect of the Defeasance Senior Notes shall be held in trust and applied by the Trustee, in accordance with the provisions of the Defeasance Senior Notes and this Indenture, to the payment, either directly or through any such Paying Agent
(including the Company acting as its own Paying Agent) as the Trustee may determine, to the Holders of the Defeasance Senior Notes, of all sums due and to become due thereon in respect of principal, premium, if any, and interest, but money so held
in trust need not be segregated from other funds except to the extent required by law. 
 The Company shall pay and indemnify the Trustee
against any tax, fee or other charge imposed on or assessed against the Government Obligations deposited pursuant to Section 13.2 or the principal and interest received in respect thereof other than any such tax, fee or other charge that
by law is for the account of the Holders of Defeasance Senior Notes. 
 Anything in this Article XIII to the contrary notwithstanding,
the Trustee shall deliver or pay to the Company from time to time upon Company Request any money or Government Obligations held by it as provided in Section 13.2 with respect to the Defeasance Senior Notes that, in the opinion of a
nationally recognized firm of independent public accountants expressed in a written certification thereof delivered to the Trustee, are in excess of the amount thereof that would then be required to be deposited to effect an equivalent Defeasance
with respect to the Defeasance Senior Notes. 
 Section 13.4 Reinstatement. 
 If the Trustee or the Paying Agent is unable to apply any money in accordance with this Article XIII with respect to the Defeasance Senior Notes by
reason of any order or judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting such application, then the Company’s obligations under this Indenture and the Defeasance Senior Notes shall be revived and
reinstated as though no deposit had occurred pursuant to this Article XIII with respect to the Defeasance Senior Notes until such time as the Trustee or Paying Agent 

  

 67 

 
is permitted to apply all money held in trust pursuant to Section 13.3 with respect to the Defeasance Senior Notes in accordance with this
Article XIII provided, however, that if the Company makes any payment of principal of, premium, if any, or interest on any Defeasance Senior Note following the reinstatement of its obligations, the Company shall be subrogated to the rights of
the Holders of Defeasance Senior Notes to receive such payment from the money so held in trust. 
 [signature page follows] 
  

 68 

 IN WITNESS WHEREOF, the parties hereto have caused this Amended and Restated Indenture to be duly
executed as of the day and year first above written. 
  

					
	 COMSTOCK HOMEBUILDING
 COMPANIES,
INC.

		
	By:	 	 /s/ Bruce Labovitz

	Name:	 	Bruce Labovitz
	Title:	 	Chief Financial Officer
	
	WELLS FARGO BANK, N.A., as Trustee
		
	By:	 	 /s/ Tracy M. McLamb

	Name:	 	Tracy M. McLamb
	Title:	 	Vice President

  

 69 

 Schedule A 
 DETERMINATION OF LIBOR 
 With respect to the Senior Notes, the London interbank offered rate
(“LIBOR”) shall be determined by the Calculation Agent in accordance with the following provisions (in each case rounded to the nearest .000001%): 
 (1) On the second LIBOR Business Day (as defined below) prior to an Interest Payment Date occurring after the expiration of the Fixed Rate Period (each such day, a “LIBOR Determination Date”), LIBOR for any given security
shall for the following interest payment period equal the rate, as obtained by the Calculation Agent from Bloomberg Financial Markets Commodities News, for three (3)-month Eurodollar deposits that appears on Dow Jones Telerate Page 3750 (as defined
in the International Swaps and Derivatives Association, Inc. 2000 Interest Rate and Currency Exchange Definitions, as the same may be amended from time to time), or such other page as may replace such Page 3750 (as any such replacement may be
amended from time to time), as of 11:00 A.M. (London time) on such LIBOR Determination Date. 
 (2) If, on any LIBOR Determination Date, such rate does not
appear on Dow Jones Telerate Page 3750 or such other page as may replace such Page 3750, the Calculation Agent shall determine the arithmetic mean of the offered quotations of the Reference Banks (as defined below) to leading banks in the London
interbank market for three (3)-month Eurodollar deposits in an amount determined by the Calculation Agent by reference to requests for quotations as of approximately 11:00 A.M. (London time) on the LIBOR Determination Date made by the Calculation
Agent to the Reference Banks. If, on any LIBOR Determination Date, at least two of the Reference Banks provide such quotations, LIBOR shall equal such arithmetic mean of such quotations. If, on any LIBOR Determination Date, only one or none of the
Reference Banks provide such quotations, LIBOR shall be deemed to be the arithmetic mean of the offered quotations that leading banks in the City of New York selected by the Calculation Agent are quoting on the relevant LIBOR Determination Date for
three (3)-month Eurodollar deposits in an amount determined by the Calculation Agent by reference to the principal London offices of leading banks in the London interbank market; provided, that if the Calculation Agent is required but is
unable to determine a rate in accordance with at least one of the procedures provided above or adequate and fair means do not exist for ascertaining the applicable interest rate on the basis set forth above (due to changes arising in the interbank
Eurocurrency market or otherwise), then the Senior Notes shall not bear interest in respect of LIBOR but shall instead bear interest with reference to a floating rate equal to the Base Rate (as defined below). 
 (3) As used herein: “Reference Banks” means four (4) major banks in the London interbank market selected by the Calculation Agent; “LIBOR
Business Day” means a day on which commercial banks are open for business (including dealings in foreign exchange and foreign currency deposits) in London; the “Base Rate” on any day shall equal the greater of the
arithmetic mean of (i) the “prime rate” for dollar denominated loans quoted by leading banks in the City of New York selected by the Calculation Agent and (ii) the Federal Funds Rate (as defined below) plus 0.50% per annum;
and the “Federal Funds Rate” on any day equals the rate per annum equal to the weighted average (rounded upwards to the nearest 0.00000 1) of the rate on overnight federal funds transactions with members of the Federal Reserve
System only arranged by federal funds brokers, as published as of such day by the Federal Reserve Bank of New York. 

 EXHIBIT A 
 FORM OF OFFICER’S FINANCIAL CERTIFICATE 
 The undersigned, the [CHIEF FINANCIAL OFFICER / TREASURER
/ ASSISTANT TREASURER / SECRETARY / ASSISTANT SECRETARY, CHAIRMAN / VICE CHAIRMAN / CHIEF EXECUTIVE OFFICE / PRESIDENT / VICE PRESIDENT] of Comstock Homebuilding Companies, Inc. (the “Company”) hereby certifies, pursuant to
Section 7.3(b) of the Amended and Restated Indenture, dated as of             , 2008 (the “Indenture”), between the Company and Wells Fargo Bank, N.A., as trustee,
that, as of [DATE], [YEAR], the Company, if applicable, and its subsidiaries had the following ratios and balances: 
  

							
	 As of [QUARTERLY/ANNUAL FINANCIAL DATE], [YEAR]
	 	 	 	 	 	 
	 Consolidated Net Worth
	 		 	 	 	
				
	 Leverage Ratio
	 		 	 	 	
				
	 Fixed Charge Coverage Ratio
	 		 	 	 	
				
	 Senior secured indebtedness for borrowed money (“Debt”)
	 	$	 	 	 	
				
	 Senior unsecured Debt
	 	$	 	 	 	
				
	 Subordinated Debt
	 	$	 	 	 	
				
	 Total Debt
	 	$	 	 	 	
				
	 Ratio of (x) senior secured and unsecured Debt to (y) total Debt
	 		 	 	 	%
				
	 Ratio of (x) Subordinated Debt to (y) Consolidated Tangible Net Worth
	 		 	 	 	

 [FOR FISCAL YEAR END: Attached hereto are the audited consolidated financial statements (including the balance
sheet, income statement and statement of cash flows, and notes thereto, together with the report of the independent accountants thereon) of the Company and its consolidated subsidiaries for the three (3) years ended [DATE], [YEAR].]

 [FOR FISCAL QUARTER END: Attached hereto are the unaudited consolidated and consolidating financial statements (including the balance sheet and
income statement) of the Company and its consolidated subsidiaries for the fiscal quarter ended [DATE], [YEAR].] 
 The financial
statements fairly present in all material respects, in accordance with U.S. generally accepted accounting principles (“GAAP”), the financial position of the Company and its consolidated subsidiaries, and the results of operations
and changes in financial condition as of the date, and for the [QUARTER] [YEAR] ended [DATE], [YEAR], and such financial statements have been prepared in accordance with GAAP consistently applied throughout the period involved (expect
as otherwise noted therein). 

 [ANNUALLY AND, IF THE COMPANY IS NO LONGER SUBJECT TO AND IN COMPLIANCE WITH SECTION 13 OR 15(d) OF
THE EXCHANGE ACT:] There has been no default with respect to any indebtedness owed by the Company and/or its subsidiaries in a principal amount in excess of $2,000,000 (other than those defaults cured prior to the earlier to occur of
(i) the expiration of any applicable cure period and (ii) thirty (30) days after the occurrence of the same) [except as set forth below:]. 
 Attached hereto is a current organizational chart of the Company and its subsidiaries as of the date hereof. 
 IN WITNESS WHEREOF, the undersigned has executed this Officer’s Financial Certificate as of this [DAY] day of [MONTH], [YEAR]. 
  

			
	 COMSTOCK HOMEBUILDING
 COMPANIES,
INC.

		
	By:	 	  

	Name:	 	  

	Title:	 	  

		
		 	Comstock Homebuilding Companies, Inc.
		 	 11465 Sunset Hills Road
 Suite 510
 Reston, Virginia 20190

		 	(703) 883-1700

 EXHIBIT B 
 FORM OF 
 OFFICERS’ CERTIFICATE 
 PURSUANT TO SECTION 10.3 
 Pursuant to Section 10.3 of the Amended and
Restated Indenture, dated as of             , 2008 (as modified, supplemented or amended from time to time, the “Indenture”) among Comstock Homebuilding Companies,
Inc., a Delaware corporation (the “Company”) and Wells Fargo Bank, N.A., as Trustee, each of the undersigned hereby certifies that, to the knowledge of the undersigned, the Company is not in default in the performance or observance
of any of the terms, provisions and conditions of the Indenture (without regard to any period of grace or requirement of notice provided under the Indenture) for the fiscal period ending on [DATE], [YEAR], [except as follows: SPECIFY EACH SUCH
DEFAULT AND THE NATURE AND STATUS THEREOF]. 
 Capitalized terms used herein, and not otherwise defined herein, have the respective
meanings assigned thereto in the Indenture. 
 [signatures page follows] 

 IN WITNESS WHEREOF, the undersigned have executed this Officers’ Certificate as of [DATE],
[YEAR]. 
  

			
	By:	 	  

	Name:	 	  

	Title:	 	 [Must be the CHIEF EXECUTIVE OFFICER, the PRESIDENT or a
 SENIOR VICE PRESIDENT] of
 Comstock Homebuilding Companies, Inc.

		
	By:	 	  

	Name:	 	  

	Title:	 	 [Must be the CHIEF FINANCIAL OFFICER, the CHIEF ACCOUNTING OFFICER, the TREASURER or an ASSISTANT TREASURER] of
 Comstock Homebuilding Companies, Inc.Exhibit 10.61

 Exhibit 10.61 
 LOAN AGREEMENT 
 DATED AS OF MARCH 14, 2008 
 by and among 
 COMSTOCK STATION VIEW, L.C., 
 COMSTOCK POTOMAC YARD, L.C., 
 AS BORROWERS,

 KEYBANK NATIONAL ASSOCIATION, 
 THE OTHER LENDERS THAT MAY BECOME 
 PARTIES TO THIS AGREEMENT, 
 AND 
 KEYBANK NATIONAL ASSOCIATION, 
 AS AGENT 
  

 TABLE OF CONTENTS 
  

							
	 	  	 	  	 	  	Page
	§1.	  	DEFINITIONS AND RULES OF INTERPRETATION	  	1
		  	§1.1	  	Definitions	  	1
		  	§1.2	  	Rules of Interpretation	  	15
			
	§2.	  	THE LOAN FACILITIES	  	15
		  	§2.1	  	Loans	  	16
		  	§2.2	  	Interest on Loans	  	16
		  	§2.3	  	Requests for Loans	  	17
		  	§2.4	  	Funds for Loans	  	17
		  	§2.5	  	Use of Proceeds	  	17
		  	§2.6	  	Remargining	  	18
		  	§2.7	  	Reborrowing for Purposes of Paying Interest	  	18
		  	§2.8	  	Revolving Credit Facility	  	19
			
	§3.	  	REPAYMENT OF THE LOANS	  	19
		  	§3.1	  	Stated Maturity	  	19
		  	§3.2	  	Optional Prepayments	  	19
		  	§3.3	  	Mandatory Prepayments	  	19
		  	§3.4	  	Partial Prepayments	  	19
		  	§3.5	  	Effect of Prepayments	  	19
			
	§4.	  	CERTAIN GENERAL PROVISIONS	  	19
		  	§4.1	  	Conversion Options	  	19
		  	§4.2	  	Closing Fee	  	20
		  	§4.3	  	[Intentionally omitted]	  	20
		  	§4.4	  	Funds for Payments	  	20
		  	§4.5	  	Computations	  	21
		  	§4.6	  	Suspension of LIBOR Rate Loans	  	21
		  	§4.7	  	Illegality	  	22
		  	§4.8	  	Additional Interest	  	22
		  	§4.9	  	Additional Costs, Etc	  	22
		  	§4.10	  	Capital Adequacy	  	23
		  	§4.11	  	Breakage Costs	  	24
		  	§4.12	  	Default Interest; Late Charge	  	24

  

 TABLE OF CONTENTS 
 (continued) 
  

							
	 	  	 	  	 	  	Page
		  	§4.13	  	Certificate	  	24
		  	§4.14	  	Limitation on Interest	  	24
		  	§4.15	  	Certain Provisions Relating to Increased Costs	  	25
			
	§5.	  	COLLATERAL SECURITY	  	25
		  	§5.1	  	Collateral	  	25
		  	§5.2	  	Release of Mortgaged Property	  	25
		  	§5.3	  	Release of Collateral	  	27
		  	§5.4	  	Sale of Mortgaged Property or Change in Borrowers	  	27
			
	§6.	  	REPRESENTATIONS AND WARRANTIES	  	28
		  	§6.1	  	Corporate Authority, Etc	  	28
		  	§6.2	  	Governmental Approvals	  	29
		  	§6.3	  	Financial Statements	  	29
		  	§6.4	  	No Material Changes	  	29
		  	§6.5	  	Franchises, Patents, Copyrights, Etc	  	29
		  	§6.6	  	Litigation	  	29
		  	§6.7	  	No Material Adverse Contracts, Etc	  	29
		  	§6.8	  	Compliance with Other Instruments, Laws, Etc	  	30
		  	§6.9	  	Tax Status	  	30
		  	§6.10	  	No Event of Default	  	30
		  	§6.11	  	Investment Company Act	  	30
		  	§6.12	  	Employee Benefit Plans	  	30
		  	§6.13	  	Disclosure	  	30
		  	§6.14	  	Trade Name; Place of Business	  	31
		  	§6.15	  	Regulations T, U and X	  	31
		  	§6.16	  	Environmental Compliance	  	31
		  	§6.17	  	Subsidiaries; Organizational Structure	  	32
		  	§6.18	  	Mortgaged Property	  	33
		  	§6.19	  	Brokers	  	34
		  	§6.20	  	Other Debt	  	34
		  	§6.21	  	Solvency	  	34
		  	§6.22	  	No Bankruptcy Filing	  	34

  

 ii 

 TABLE OF CONTENTS 
 (continued) 
  

							
	 	  	 	  	 	  	Page
		  	§6.23	  	No Fraudulent Intent	  	34
		  	§6.24	  	OFAC	  	34
		  	§6.25	  	Transaction in Best Interests of Borrowers; Consideration	  	34
		  	§6.26	  	Purchase Contracts	  	35
		  	§6.27	  	Contribution Agreement	  	35
		  	§6.28	  	Potomac Project	  	35
			
	§7.	  	AFFIRMATIVE COVENANTS	  	35
		  	§7.1	  	Punctual Payment	  	35
		  	§7.2	  	Maintenance of Office	  	35
		  	§7.3	  	Records and Accounts	  	36
		  	§7.4	  	Financial Statements, Certificates and Information	  	36
		  	§7.5	  	Notices	  	38
		  	§7.6	  	Existence	  	39
		  	§7.7	  	Insurance; Condemnation	  	39
		  	§7.8	  	Liens	  	42
		  	§7.9	  	Inspection of Properties and Books	  	43
		  	§7.10	  	Compliance with Laws, Contracts, Licenses, and Permits	  	43
		  	§7.11	  	Further Assurances	  	43
		  	§7.12	  	Leases	  	43
		  	§7.13	  	Plan Assets	  	43
		  	§7.14	  	Single Purpose Entity Requirements	  	44
		  	§7.15	  	Potomac Project	  	46
			
	§8.	  	NEGATIVE COVENANTS	  	46
		  	§8.1	  	Restrictions on Indebtedness	  	46
		  	§8.2	  	Restrictions on Liens, Etc	  	47
		  	§8.3	  	Merger, Consolidation	  	47
		  	§8.4	  	Sale and Leaseback	  	47
		  	§8.5	  	Compliance with Environmental Laws	  	48
		  	§8.6	  	Distributions	  	49
		  	§8.7	  	Zoning and Contract Changes and Compliance	  	49
		  	§8.8	  	Contracts	  	49

  

 iii 

 TABLE OF CONTENTS 
 (continued) 
  

							
	 	  	 	  	 	  	Page
		  	§8.9	  	Restrictions on Easements, Covenants and Restrictions	  	50
			
	§9.	  	HOLDBACKS	  	51
			
	§10.	  	CLOSING CONDITIONS	  	51
		  	§10.1	  	Loan Documents	  	51
		  	§10.2	  	Certified Copies of Organizational Documents	  	51
		  	§10.3	  	Resolutions	  	52
		  	§10.4	  	Incumbency Certificate; Authorized Signers	  	52
		  	§10.5	  	Opinion of Counsel	  	52
		  	§10.6	  	Payment of Fees	  	52
		  	§10.7	  	Performance; No Default	  	52
		  	§10.8	  	Representations and Warranties	  	52
		  	§10.9	  	Proceedings and Documents	  	52
		  	§10.10	  	Mortgaged Property Qualification Documents	  	52
		  	§10.11	  	Appraisal	  	53
		  	§10.12	  	Consents	  	53
		  	§10.13	  	Purchase Contracts	  	53
		  	§10.14	  	CHCI Subordinate Notes	  	53
		  	§10.15	  	Other	  	53
			
	§11.	  	CONDITIONS TO ALL BORROWINGS	  	53
		  	§11.1	  	Prior Conditions Satisfied	  	53
		  	§11.2	  	Representations True; No Default	  	53
		  	§11.3	  	Borrowing Documents	  	53
		  	§11.4	  	Endorsement to Title Policy	  	53
		  	§11.5	  	Future Advances Tax Payment	  	54
			
	§12.	  	EVENTS OF DEFAULT; ACCELERATION; ETC	  	54
		  	§12.1	  	Events of Default and Acceleration	  	54
		  	§12.2	  	Certain Cure Periods; Limitation of Cure Periods	  	57
		  	§12.3	  	Termination of Commitments	  	57
		  	§12.4	  	Remedies	  	57
		  	§12.5	  	Distribution of Collateral Proceeds	  	57
			
	§13.	  	SETOFF	  	58

  

 iv 

 TABLE OF CONTENTS 
 (continued) 
  

							
	 	  	 	  	 	  	Page
	§14.	  	THE AGENT	  	59
		  	§14.1	  	Authorization	  	59
		  	§14.2	  	Employees and Agents	  	59
		  	§14.3	  	No Liability	  	59
		  	§14.4	  	No Representations	  	60
		  	§14.5	  	Payments	  	60
		  	§14.6	  	Holders of Notes	  	61
		  	§14.7	  	Indemnity	  	61
		  	§14.8	  	Agent as Lender	  	62
		  	§14.9	  	Resignation	  	62
		  	§14.10	  	Duties in the Case of Enforcement	  	62
		  	§14.11	  	Bankruptcy	  	63
		  	§14.12	  	Request for Agent Action	  	63
		  	§14.13	  	Reliance by Agent	  	63
		  	§14.14	  	Approvals	  	64
		  	§14.15	  	Borrowers Not Beneficiary	  	64
			
	§15.	  	EXPENSES	  	64
			
	§16.	  	INDEMNIFICATION	  	65
			
	§17.	  	SURVIVAL OF COVENANTS, ETC	  	66
			
	§18.	  	ASSIGNMENT AND PARTICIPATION	  	66
		  	§18.1	  	Conditions to Assignment by Lenders	  	66
		  	§18.2	  	Register	  	67
		  	§18.3	  	New Notes	  	67
		  	§18.4	  	Participations	  	68
		  	§18.5	  	Pledge by Lender	  	68
		  	§18.6	  	No Assignment by Borrowers	  	68
		  	§18.7	  	Disclosure	  	68
		  	§18.8	  	Amendments to Loan Documents	  	69
			
	§19.	  	NOTICES	  	69
			
	§20.	  	RELATIONSHIP	  	71
			
	§21.	  	GOVERNING LAW; CONSENT TO JURISDICTION AND SERVICE	  	71

  

 v 

 TABLE OF CONTENTS 
 (continued) 
  

							
	 	  	 	  	 	  	Page
	§22.	  	HEADINGS	  	71
			
	§23.	  	COUNTERPARTS	  	72
			
	§24.	  	ENTIRE AGREEMENT, ETC	  	72
			
	§25.	  	WAIVER OF JURY TRIAL AND CERTAIN DAMAGE CLAIMS	  	72
			
	§26.	  	DEALINGS WITH THE BORROWERS	  	72
			
	§27.	  	CONSENTS, AMENDMENTS, WAIVERS, ETC	  	73
			
	§28.	  	SEVERABILITY	  	73
			
	§29.	  	TIME OF THE ESSENCE	  	74
			
	§30.	  	NO UNWRITTEN AGREEMENTS	  	74
			
	§31.	  	REPLACEMENT NOTES	  	74
			
	§32.	  	NO THIRD PARTIES BENEFITED	  	74
			
	§33.	  	PATRIOT ACT	  	74
			
	§34.	  	JOINT AND SEVERAL LIABILITY	  	75
			
	§35.	  	ADDITIONAL AGREEMENTS CONCERNING OBLIGATIONS OF BORROWERS	  	75
		  	§35.1	  	Attorney-in-Fact	  	75
		  	§35.2	  	Accommodation	  	75
		  	§35.3	  	Waiver of Automatic or Supplemental Stay	  	75
		  	§35.4	  	Waiver of Defenses	  	75
		  	§35.5	  	Waiver	  	78
		  	§35.6	  	Subordination	  	78
			
	§36.	  	CONFLICT	  	78
			
	§37.	  	AMENDMENT AND RESTATEMENT OF ORIGINAL LOAN AGREEMENTS	  	78

  

 vi 

 EXHIBITS AND SCHEDULES 
  

			
		
	 EXHIBIT A-1
	  	FORM OF POTOMAC NOTE
		
	 EXHIBIT A-2
	  	FORM OF STATION VIEW NOTE
		
	 EXHIBIT B
	  	FORM OF REQUEST FOR LOAN
		
	 EXHIBIT C
	  	FORM OF ASSIGNMENT AND ACCEPTANCE AGREEMENT
		
	 EXHIBIT D
	  	INTENTIONALLY OMITTED
		
	 EXHIBIT E
	  	COMPLIANCE CERTIFICATE
		
	 SCHEDULE 1.1
	  	LENDERS AND COMMITMENTS
		
	 SCHEDULE 1.2
	  	MORTGAGED PROPERTY QUALIFICATION DOCUMENTS
		
	 SCHEDULE 3.3
	  	MANDATORY PREPAYMENTS
		
	 SCHEDULE 6.6
	  	PENDING LITIGATION AND JUDGMENTS
		
	 SCHEDULE 6.9
	  	TAXPAYER IDENTIFICATION NUMBERS
		
	 SCHEDULE 6.17
	  	ORGANIZATIONAL STRUCTURE
		
	 SCHEDULE 6.18(C)
	  	PURCHASE OPTIONS
		
	 SCHEDULE 6.28
	  	OUTSTANDING CERTIFICATES OF OCCUPANCY
		
	 SCHEDULE 7.12
	  	POTOMAC PROJECT LEASING PARAMETERS
		
	 SCHEDULE 8.8
	  	RELEASE PRICES

  

 vii 

 LOAN AGREEMENT 
 THIS LOAN AGREEMENT (this “Agreement”) is made as of the 14th day of March, 2008 by and among COMSTOCK STATION VIEW, L.C., a
Virginia limited liability company (“Station View”), COMSTOCK POTOMAC YARD, L.C., a Virginia limited liability company (“Potomac”; Station View and Potomac are sometimes hereinafter referred to individually as
“Borrower” and collectively as “Borrowers”), KEYBANK NATIONAL ASSOCIATION (“KeyBank”) and the other lending institutions that may become parties hereto pursuant to §18 (together with KeyBank, the
“Lenders”), and KEYBANK NATIONAL ASSOCIATION, as Agent for the Lenders (the “Agent”). 
 RECITALS

 WHEREAS, Borrowers have requested that the Lenders provide a loan to Borrowers; and 
 WHEREAS, the Agent and the Lenders are willing to provide such loan to Borrowers on and subject to the terms and conditions set forth herein;

 NOW, THEREFORE, in consideration of the recitals herein and mutual covenants and agreements contained herein, the parties hereto
hereby covenant and agree as follows: 
  

	§1.	DEFINITIONS AND RULES OF INTERPRETATION. 

 §1.1
Definitions. The following terms shall have the meanings set forth in this §l or elsewhere in the provisions of this Agreement referred to below: 
 Affiliate. An Affiliate, as applied to any Person, shall mean any other Person directly or indirectly controlling, controlled by, or under common control with, that Person. For purposes of this definition,
“control” (including, with correlative meanings, the terms “controlling”, “controlled by” and “under common control with”), as applied to any Person, means (a) the possession, directly or indirectly, of
the power to vote ten percent (10%) or more of the stock, shares, voting trust certificates, beneficial interest, partnership interests, member interests or other interests having voting power for the election of directors of such Person or
otherwise to direct or cause the direction of the management and policies of that Person, whether through the ownership of voting securities or by contract or otherwise, or (b) the ownership of (i) a general partnership interest,
(ii) a managing member’s or manager’s interest in a limited liability company or (iii) a limited partnership interest or preferred stock (or other ownership interest) representing ten percent (10%) or more of the outstanding
limited partnership interests, preferred stock or other ownership interests of such Person. 
 Agent. KeyBank National Association,
acting as administrative agent for the Lenders, and its successors and assigns. 
 Agent’s Head Office. The Agent’s head
office located at 127 Public Square, Cleveland, Ohio 44114-1306, or at such other location as the Agent may designate from time to time by notice to the Borrowers and the Lenders. 

 Agent’s Special Counsel. McKenna Long & Aldridge LLP or such other counsel as
selected by Agent. 
 Agreement. This Loan Agreement, including the Schedules and Exhibits hereto. 
 Agreement Regarding Fees. See §4.2. 
 Appraisal. An MAI appraisal of the value of the Mortgaged Property, determined on an “as-is” market value basis, performed by an independent appraiser selected by the Agent who is not an employee of the Borrowers, the
Guarantor or any of their Affiliates, the Agent or a Lender, the form and substance of such appraisal and the identity of the appraiser to be in compliance with the Financial Institutions Reform, Recovery and Enforcement Act of 1989, as amended, the
rules and regulations adopted pursuant thereto and all other regulatory laws and policies (both regulatory and internal) applicable to the Lenders and otherwise acceptable to the Agent. 
 Appraised Value. The “as is” market value of the Mortgaged Property as reflected in the Appraisal of the Mortgaged Property; subject,
however, to such reasonable adjustments to the value determined thereby as may be required by the appraisal department of the Agent in its good faith business judgment. The Appraised Value of the Mortgaged Property shall be determined based only
upon permits for the development of the Mortgaged Property that have been issued and are in full force and effect. 
 Assignment and
Acceptance Agreement. See §18.1. 
 Assignment of Interests. The Assignment of Interests dated of even date herewith by the
Guarantor in favor of Agent for the benefit of the Lenders, as the same may be hereafter modified or amended. 
 Assignment of Potomac
Loan Documents. The Assignment dated of even date herewith from Corus Bank, N.A. to Agent. 
 Assignment of Sales Contracts and
Deposits. The Assignment of Sales Contracts and Deposits dated of even date herewith by Potomac in favor of Agent for the benefit of the Lenders, as the same may be hereafter modified or amended. 
 Assignment of Station View Loan Documents. The Assignment dated of even date herewith from KeyBank National Association to Agent. 
 Authorized Officer. Christopher Clemente and Bruce Labovitz as to Station View, and Christopher Clemente and Bruce Labovitz as to Potomac.

 Balance Sheet Date. December 31, 2007. 
 Bankruptcy Code. Title 11, U.S.C.A., as amended from time to time or any successor statute thereto. 
  

 2 

 Base Rate. The greater of (a) the fluctuating annual rate of interest announced from time to
time by the Agent at the Agent’s Head Office as its “prime rate” or (b) one half of one percent (0.5%) above the Federal Funds Effective Rate. The Base Rate is a reference rate and does not necessarily represent the lowest or
best rate being charged to any customer. Any change in the rate of interest payable hereunder resulting from a change in the Base Rate shall become effective as of the opening of business on the day on which such change in the Base Rate becomes
effective, without notice or demand of any kind. 
 Base Rate Loans. Collectively, Loans bearing interest calculated by reference to
the Base Rate. 
 Borrowers. As defined in the preamble hereto. 
 Breakage Costs. The cost to any Lender of re-employing funds bearing interest at LIBOR (calculated based on the change in LIBOR) for the balance
of an applicable Interest Period (actual or requested), incurred (or reasonably expected to be incurred) in connection with (i) any payment of any portion of the Loans bearing interest at LIBOR prior to the termination of any applicable
Interest Period, (ii) the conversion of a LIBOR Rate Loan to any other applicable interest rate on a date other than the last day of the relevant Interest Period, or (iii) the failure of a Borrower to draw down, on the first day of the
applicable Interest Period, any amount as to which such Borrower has elected a LIBOR Rate Loan. 
 Business Day. Any day on which
banking institutions located in the same city and State as the Agent’s Head Office are located are open for the transaction of banking business and, in the case of LIBOR Rate Loans, which also is a LIBOR Business Day. 
 Capitalized Lease. A lease under which the discounted future rental payment obligations of the lessee or the obligor are required to be
capitalized on the balance sheet of such Person in accordance with GAAP. 
 CERCLA. The Comprehensive Environmental Response,
Compensation and Liability Act of 1980, as amended. 
 Change of Control. A “Change of Control” shall occur if (i) any
person (as such term is used in Sections 13(d) and 14(d) of the Exchange Act), including a “group” as defined in Section 13(d)(3) of the Exchange Act (but excluding a director or other fiduciary holding securities under an employee
benefit plan of the Guarantor), becomes the beneficial owner of Equity Interests of the Guarantor having at least fifty percent (50%) of the total number of votes that may be cast for the election of directors of the Guarantor; (ii) the
merger or other business combination of the Guarantor, sale of all or substantially all of the Guarantor’s assets or combination of the foregoing transactions; or (iii) the persons who were directors of the Guarantor on the date hereof
(the “Incumbent Directors”) shall cease to constitute at least a majority of the board of directors of the Guarantor; provided, that, any director who was not a director as of the date hereof shall be deemed to be an Incumbent Director if
such director was elected to the board of directors by, or on the recommendation of or with the approval of, at least two-thirds of the directors who then qualified as Incumbent Directors either actually or by prior operation of this provision,
unless such election, recommendation or approval was the result of an actual or threatened election contest of the type contemplated by Regulation 14a-11 promulgated under the Exchange Act or any successor provision. 
  

 3 

 CHCI Subordinate Notes. The promissory notes issued pursuant to that certain Indenture dated
March 15, 2007, by and between Guarantor and Wells Fargo Bank, N.A. (“Trustee”), as amended and restated pursuant to that certain Amended and Restated Indenture dated March 14, 2008, by and between Guarantor and Trustee.

 Closing Date. The first date on which all of the conditions set forth in §10 and §11 have been satisfied. 
 Code. The Internal Revenue Code of 1986, as amended. 
 Collateral. All of the property, rights and interests of the Borrowers and the Guarantor which are subject to the security interests, security title, liens and mortgages created by the Security Documents,
including, without limitation, the Mortgaged Property, the Guaranty and the Assignment of Interests. 
 Commitment. With respect to
each Lender, the amount set forth on Schedule 1.1 hereto as the amount of such Lender’s Commitment to make or maintain Loans to the Borrowers, as the same may be changed from time to time in accordance with the terms of this Agreement.

 Commitment Percentage. With respect to each Lender, the percentage set forth on Schedule 1.1 hereto as such Lender’s
percentage of the aggregate Commitments of all of the Lenders, as the same may be changed from time to time in accordance with the terms of this Agreement. 
 Compliance Certificate. See §7.4(i). 
 Condemnation Proceeds. All compensation, awards,
damages, judgments and proceeds awarded to a Borrower by reason of any Taking, net of all reasonable and customary amounts actually expended to collect the same. 
 Condominium Declaration. Declaration of The Eclipse on Center Park Condominium dated as of October 20, 2006, by Comstock Potomac Yard, L.C., a Virginia limited liability company (“Declarant”),
recorded on October 20, 2006 at Book 4033, Page 290, in the Office of the Clerk of the Circuit Court of Arlington County, Virginia; as amended by that certain Corrective Amendment to Condominium Instruments to The Eclipse on Center Park
Condominium, dated November 27, 2006, by Declarant, recorded on November 29, 2006, at Book 4045, Page 1819, aforesaid records; as further amended by that certain Corrective Amendment to Condominium Instruments to The Eclipse on Center Park
Condominium dated June 19, 2007, by Declarant, recorded on June 20, 2007, at Book 4109, Page 110, aforesaid records; as further amended by that certain Corrective Amendment to Condominium Instruments to The Eclipse on Center Park
Condominium dated May 18, 2007, by Declarant, recorded on December 19, 2007, at Book 4156, Page 891, aforesaid records; as further amended by that certain Corrective Amendment to Condominium Instruments to The Eclipse on Center Park
Condominium dated December 27, 2007, by Declarant, recorded on December 28, 2007 at Book 4158, Page 1412, aforesaid records; as further amended by that certain Amendment to 

  

 4 

 
Condominium Instruments of The Eclipse on Center Park Condominium Assigning Storage Spaces, dated December 27, 2007, by Declarant, recorded on
December 28, 2007, at Book 4158, Page 1515, aforesaid records. 
 Contribution Agreement. That certain Contribution Agreement
dated of even date herewith among the Borrowers and the Guarantor, as the same may be modified, amended or ratified from time to time. 
 Conversion/Continuation Request. A notice given by a Borrower to the Agent of its election to convert or continue a Loan in accordance with §4.1. 
 Declaration. The instrument, and all amendments or supplements thereto, recorded in among the land records of the jurisdiction in which the Station View Project or any part thereof is located, that either
(i) imposes on the association maintenance or operational responsibilities for the common area or (ii) creates the authority in the association to impose on lots, or on the owners or occupants of such lots, or on any other entity any
mandatory payment of money in connection with the provision of maintenance and/or services for the benefit of some or all of the lots, the owners or occupants of the lots, or the common area. 
 Default. See §12.1. 
 Default
Rate. See §4.12. 
 Delinquent Lender. See §14.5(c). 
 Derivatives Contract. Any and all rate swap transactions, basis swaps, credit derivative transactions, forward rate transactions, commodity swaps,
commodity options, forward commodity contracts, equity or equity index swaps or options, bond or bond price or bond index swaps or options or forward bond or forward bond price or forward bond index transactions, interest rate options, forward
foreign exchange transactions, cap transactions, floor transactions, collar transactions, currency swap transactions, cross-currency rate swap transactions, currency options, spot contracts, or any other similar transactions or any combination of
any of the foregoing (including any options to enter into any of the foregoing), whether or not any such transaction is governed by or subject to any master agreement. Not in limitation of the foregoing, the term “Derivatives Contract”
includes any and all transactions of any kind, and the related confirmations, which are subject to the terms and conditions of, or governed by, any form of master agreement published by the International Swaps and Derivatives Association, Inc., any
International Foreign Exchange Master Agreement, or any other master agreement, including any such obligations or liabilities under any such master agreement. 
 Distribution. With respect to any Person, the declaration or payment of any cash, cash flow, dividend or distribution on or in respect of any shares of any class of capital stock, partner’s interest,
member’s interest or other beneficial interest of such Person; the purchase, redemption, exchange or other retirement of any shares of any class of capital stock, partner’s interest, member’s interest or other beneficial interest of
such Person, directly or indirectly through a subsidiary of such Person or otherwise; the return of capital by a Person to its shareholders, partners, members or other beneficial owners as such; any payment made to retire, 

  

 5 

 
or to obtain the surrender of, any outstanding warrants, options or other rights to acquire any capital stock, partner’s interest, member’s
interest or other beneficial interest in a Person; or any other distribution on or in respect of any shares of any class of capital stock, partner’s interest, member’s interest or other beneficial interest of such Person. 
 Dollars or $. Dollars in lawful currency of the United States of America. 
 Domestic Lending Office. Initially, the office of each Lender designated as such on Schedule 1.1 hereto; thereafter, such other office of
such Lender, if any, located within the United States that will be making or maintaining Base Rate Loans. 
 Drawdown Date. The date
on which any Loan is made or is to be made, and the date on which any Loan which is made prior to the Maturity Date is converted in accordance with §4.1. 
 Employee Benefit Plan. Any employee benefit plan within the meaning of §3(3) of ERISA maintained or contributed to by either Borrower or any ERISA Affiliate, other than a Multiemployer Plan. 
 Environmental Engineer. A firm of independent professional engineers or other scientists generally recognized as expert in the detection, analysis
and remediation of Hazardous Substances and related environmental matters and acceptable to the Agent in its reasonable discretion. 
 Environmental Laws. As defined in the Indemnity Agreement. 
 Equity Interests. With respect to any Person, any share
of capital stock of (or other ownership or profit interests in) such Person, any warrant, option or other right for the purchase or other acquisition from such Person of any share of capital stock of (or other ownership or profit interests in) such
Person, any security convertible into or exchangeable for any share of capital stock of (or other ownership or profit interests in) such Person or warrant, right or option for the purchase or other acquisition from such Person of such shares (or
such other interests), and any other ownership or profit interest in such Person (including, without limitation, partnership, member or trust interests therein), whether voting or nonvoting, and whether or not such share, warrant, option, right or
other interest is authorized or otherwise existing on any date of determination. 
 ERISA. The Employee Retirement Income Security Act
of 1974, as amended and in effect from time to time. 
 ERISA Affiliate. Any Person which is treated as a single employer with a
Borrower or the Guarantor under §414 of the Code. 
 ERISA Reportable Event. A reportable event with respect to a Guaranteed
Pension Plan within the meaning of §4043 of ERISA and the regulations promulgated thereunder as to which the requirement of notice has not been waived. 
 Event of Default. See §12.1. 
  

 6 

 Federal Funds Effective Rate. For any day, the rate per annum (rounded upward to the nearest
one-hundredth of one percent (1/100 of 1%)) announced by the Federal Reserve Bank of Cleveland on such day as being the weighted average of the rates on overnight federal funds transactions arranged by federal funds brokers on the previous trading
day, as computed and announced by such Federal Reserve Bank in substantially the same manner as such Federal Reserve Bank computes and announces the weighted average it refers to as the “Federal Funds Effective Rate.” 
 GAAP. Generally accepted accounting principles that are (a) consistent with the principles promulgated or adopted by the Financial Accounting
Standards Board and its predecessors, as in effect from time to time and (b) consistently applied with past financial statements of the Person adopting the same principles. 
 General Contractor Dispute. The disputes relating to Potomac’s and Balfour Beatty Construction LLC (as successor-in-interest to Centex
Construction LLC) obligations for the Potomac Project under the AIA construction contract and exhibits executed on November 4, 2004 by Potomac and Centex Construction LLC and related Agreement dated January 30, 2008 by and between Potomac
and Balfour Beatty Construction LLC. 
 Governmental Authority. The United States of America, the Commonwealth of Virginia, any
political subdivision thereof, and any agency, authority, department, commission, board, bureau, or instrumentality of any of them. 
 Guaranteed Pension Plan. Any employee pension benefit plan within the meaning of §3(2) of ERISA maintained or contributed to by a Borrower or any ERISA Affiliate the benefits of which are guaranteed on termination in full or in
part by the PBGC pursuant to Title IV of ERISA, other than a Multiemployer Plan. 
 Guarantor. Comstock Homebuilding Companies, Inc.,
a Delaware corporation. 
 Guaranty. The Unconditional Guaranty of Payment and Performance dated of even date herewith made by
Guarantor in favor of the Agent and the Lenders, as the same may be modified, amended, or ratified, such Guaranty to be in form and substance satisfactory to Agent. 
 Hazardous Substances. As defined in the Indemnity Agreement. 
 Holdbacks. The Interest
Holdback. 
 Indebtedness. With respect to a Person, at the time of computation thereof, all of the following (without duplication):
(a) all obligations of such Person in respect of money borrowed (other than trade debt incurred in the ordinary course of business which is not more than thirty (30) days past due); (b) all obligations of such Person, whether or not
for money borrowed (i) represented by notes payable, or drafts accepted, in each case representing extensions of credit, (ii) evidenced by bonds, debentures, notes or similar instruments, or (iii) constituting purchase money
indebtedness, conditional sales contracts, title retention debt instruments or other similar instruments, upon which interest charges are customarily paid or that are issued or assumed as full or partial payment for property or services rendered;
(c) obligation 

  

 7 

 
of such Person as a lessee or obligor under a Capitalized Lease; (d) all reimbursement obligations of such Person under any letters of credit or
acceptances (whether or not the same have been presented for payment); (e) all obligations of such Person in respect of any purchase obligation, repurchase obligation, takeout commitment or forward equity commitment, in each case evidenced by a
binding agreement; (f) obligations under any Derivatives Contract; (g) all Indebtedness of other Persons which such Person has guaranteed or is otherwise recourse to such Person, including liability of a general partner in respect of
liabilities of a partnership in which it is a general partner which would constitute “Indebtedness” hereunder, any obligation to supply funds to or in any manner to invest directly or indirectly in a Person, to maintain working capital or
equity capital of a Person or otherwise to maintain net worth, solvency or other financial condition of a Person, to purchase indebtedness, or to assure the owner of indebtedness against loss, including, without limitation, through an agreement to
purchase property, securities, goods, supplies or services for the purpose of enabling the debtor to make payment of the indebtedness held by such owner or otherwise; and (h) all Indebtedness of another Person secured by (or for which the
holder of such Indebtedness has an existing right, contingent or otherwise, to be secured by) any Lien on property or assets owned by such Person, even though such Person has not assumed or become liable for the payment of such Indebtedness or other
payment obligation. 
 Indemnity Agreement. The Indemnity Agreement Regarding Hazardous Materials made by the Borrowers and Guarantor
in favor of the Agent and the Lenders, as the same may be modified, amended or ratified, such agreement to be in form and substance satisfactory to Agent. 
 Insurance Proceeds. All insurance proceeds, damages and claims and the right thereto under any insurance policies relating to any portion of any Collateral, net of all reasonable and customary amounts actually
expended to collect the same. 
 Interest Holdback. See §9(a). 
 Interest Payment Date. As to each Loan, the first (1st) day of each calendar month during the term of such Loan. 
 Interest Period. With respect to each LIBOR Rate Loan (a) initially, the period commencing on the Drawdown Date of such LIBOR Rate Loan and
ending one, two or three months (subject to availability) thereafter, and (b) thereafter, each period commencing on the day following the last day of the next preceding Interest Period applicable to such Loan and ending on the last day of one
of the periods set forth above, as selected by a Borrower in a Loan Request or Conversion/Continuation Request; provided that all of the foregoing provisions relating to Interest Periods are subject to the following: 
 (i) if any Interest Period with respect to a LIBOR Rate Loan would otherwise end on a day that is not a LIBOR Business Day, such Interest Period shall
end on the next succeeding LIBOR Business Day, unless such next succeeding LIBOR Business Day occurs in the next calendar month, in which case such Interest Period shall end on the next preceding LIBOR Business Day, as determined conclusively by the
Agent in accordance with the then current bank practice in London; 
  

 8 

 (ii) if a Borrower shall fail to give notice as provided in §4.1, such Borrower shall be deemed to
have requested a conversion of the affected LIBOR Rate Loan to a Base Rate Loan on the last day of the then current Interest Period with respect thereto; 
 (iii) any Interest Period pertaining to a LIBOR Rate Loan that begins on the last Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the calendar month at the end of
such Interest Period) shall end on the last Business Day of the applicable calendar month; and 
 (iv) no Interest Period relating to any
LIBOR Rate Loan shall extend beyond the Maturity Date. 
 KeyBank. As defined in the preamble hereto. 
 Lenders. KeyBank and any other Person which becomes an assignee of any rights of a Lender pursuant to §18 (but not including any participant
as described in §18). 
 LIBOR. For any LIBOR Rate Loan for any Interest Period, the average rate (rounded upwards to the nearest
1/16th) as shown in Reuters Screen LIBOR01 Page at which deposits in U.S. dollars are offered by first class banks in the London Interbank Market at approximately 11:00 a.m. (London time) on the day that is two (2) LIBOR Business Days prior to
the first day of such Interest Period with a maturity approximately equal to such Interest Period and in an amount approximately equal to the amount to which such Interest Period relates, adjusted for reserves and taxes if required by future
regulations. If Reuters no longer reports such rate, then the rate shall be determined by reference to such other comparable publicly available service displaying such rate as selected by Agent in its sole discretion. If Agent determines in good
faith that the rate so reported no longer accurately reflects the rate available to Agent in the London Interbank Market, Loans shall accrue interest based upon the Base Rate. For any period during which a Reserve Percentage shall apply, LIBOR with
respect to LIBOR Rate Loans shall be equal to the amount determined above divided by an amount equal to 1 minus the Reserve Percentage. 
 LIBOR Business Day. Any day on which commercial banks are open for international business (including dealings in Dollar deposits) in London, England. 
 LIBOR Lending Office. Initially, the office of each Lender designated as such on Schedule 1.1 hereto; thereafter, such other office of such Lender, if any, that shall be making or maintaining LIBOR Rate
Loans. 
 Lien. See §8.2. 
 Loan or Loans. An individual Loan or the aggregate Loans, as the case may be, made by the Lenders hereunder to Borrowers. 
 Loan Documents. This Agreement, the Notes, the Security Documents and all other documents, instruments or agreements now or hereafter executed or delivered by or on behalf of a Borrower or the Guarantor in connection with the Loans.

  

 9 

 Loan Request. See §2.3. 
 Loan to Value Ratio. See §2.6. 
 Majority Lenders. As of any date, the Lender or Lenders whose aggregate Commitment Percentage is greater than fifty percent (50%) of the Total Commitment; provided that if there shall only be two (2) Lenders, the Majority
Lenders shall mean both of such Lenders; and provided further that in determining said percentage at any given time, all then existing Delinquent Lenders will be disregarded and excluded and the Commitment Percentages of the Lenders shall be
redetermined for voting purposes only to exclude the Commitment Percentages of such Delinquent Lenders. 
 Material Adverse Effect. A
material adverse effect on (a) the business activities, properties, assets, prospects, condition (financial or otherwise) or results of operations of a Borrower; (b) the ability of any Borrower or the Guarantor to perform any of its
obligations under the Loan Documents; or (c) the validity or enforceability of any of the Loan Documents or the rights or remedies of Agent or the Lenders thereunder; provided, however, that none of the following shall constitute, or shall be
considered in determining whether there has occurred, and no event, circumstance, change or effect resulting from or arising out of any of the following shall constitute, a Material Adverse Effect: (i) the announcement of the execution of this
Agreement; (ii) changes in the national or world economy or financial markets as a whole (but excluding changes in economic conditions that affect the industries or markets in which Borrowers or Guarantor conduct their business) so long as such
changes or conditions do not adversely affect Borrowers or Guarantor, taken as a whole, in a materially disproportionate manner relative to other similarly situated participants in the industries or markets in which Borrowers or Guarantor operate;
and (iii) a decline in the price, or a change in the trading volume or listing status, of the common stock of Guarantor on the NASDAQ. 
 Maturity Date. March 14, 2011, or such earlier date on which the Loans shall become due and payable pursuant to the terms hereof. 
 Moody’s. Moody’s Investor Service, Inc. 
 Mortgage. The Deed of Trust from a
Borrower to the trustees named therein acting on behalf of the Agent for the benefit of the Lenders, as the same may be modified or amended, pursuant to which such Borrower has conveyed or granted a mortgage lien upon or a conveyance in fee simple
of the Mortgaged Property as security for the Obligations. 
 Mortgaged Property or Mortgaged Properties. The real estate owned
by a Borrower which is security for the Obligations pursuant to the Mortgage. 
 Mortgaged Property Qualification Documents. See
Schedule 1.2 attached hereto. 
 Multiemployer Plan. Any multiemployer plan within the meaning of §3(37) of ERISA
maintained or contributed to by a Borrower or any ERISA Affiliate. 
 Net Sales Proceeds. With respect to the sale of any portion of
the Mortgaged Property in accordance with the provisions of §5.2, all gross proceeds of such sale plus all other 

  

 10 

 
consideration received in conjunction with such sale less all reasonable, ordinary and customary costs, expenses and commissions incurred as a direct result
of such sale and paid to any Person; provided that if such commissions are to a Person related to the Borrowers, Guarantor or any of their respective partners, members, managers, officers or directors or any Person affiliated with the Borrowers,
Guarantor or any their respective partners, members, managers, officers or directors, then such commissions shall be reasonable and customary in the market in which the Mortgaged Property is located. Net Sales Proceeds shall under no circumstances
be less than ninety percent (90%) of the sales price set forth in the Purchase Contract without the prior written consent of Agent. 
 Notes. See §2.1(b). 
 Notice. See §19. 
 Obligations. All indebtedness, obligations and liabilities of the Borrowers or the Guarantor to any of the Lenders or the Agent, individually or
collectively, under this Agreement or any of the other Loan Documents or in respect of any of the Loans or the Notes, or other instruments at any time evidencing any of the foregoing, whether existing on the date of this Agreement or arising or
incurred hereafter, direct or indirect, joint or several, absolute or contingent, matured or unmatured, liquidated or unliquidated, secured or unsecured, arising by contract, operation of law or otherwise. 
 OFAC. Office of Foreign Asset Control of the Department of the Treasury of the United States of America. 
 Original Potomac Loan Agreement. The “Loan Agreement,” as defined in the Assignment of Potomac Loan Documents. 
 Original Potomac Note. The “Note,” as defined in the Assignment of Potomac Loan Documents. 
 Original Station View Loan Agreement. The “Loan Agreement,” as defined in the Assignment of Station View Loan Documents. 
 Original Station View Note. The “Note,” as defined in the Assignment of Station View Loan Documents. 
 Outstanding. With respect to any Loan, the aggregate unpaid principal thereof as of any date of determination. 
 Patriot Act. The Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001, as the
same may be amended from time to time, and corresponding provisions of future laws. 
 PBGC. The Pension Benefit Guaranty Corporation
created by §4002 of ERISA and any successor entity or entities having similar responsibilities. 
  

 11 

 Person. Any individual, corporation, limited liability company, partnership, trust, unincorporated
association, business, or other legal entity, and any government or any governmental agency or political subdivision thereof. 
 Plan
Assets. Assets of any employee benefit plan subject to Part 4, Subtitle A, Title I of ERISA. 
 Potomac. As defined in the
preamble hereto. 
 Potomac Loans. The portion of the Loans that are not Station View Loans. 
 Potomac Project. A completed 465-unit condominium project located in Alexandria, Virginia between U.S. Route 1 and the Potomac River, subject only
to minor customary punchlist items in connection with the sale of Potomac Units and warranty work typical for a condominium project. 
 Potomac Units. Each of the residential condominium units within the Potomac Project established by the Condominium Declaration, together with any appurtenant undivided interest in the common elements created under the Condominium
Declaration and easements for the use of any appurtenant limited common elements. 
 Purchase Contract. A purchase and sale agreement
between a Borrower and the purchaser of a Unit for the purchase of a Unit (and appurtenant percentage interests in the limited common elements and common elements, if any), whether now or hereafter existing. 
 Record. The grid attached to any Note, or the continuation of such grid, or any other similar record, including computer records, maintained by
the Agent with respect to any Loan referred to in such Note. 
 Register. See §18.2. 
 Release. See §6.16(c)(iii). 
 Rent Roll. A report prepared by Potomac Yard showing for the Potomac Project owned or leased by Potomac Yard, its occupancy, lease expiration dates, lease rent and other information in substantially the form presented to Agent prior
to the date hereof or in such other form as may be reasonably acceptable to the Agent. 
 Requirements. Any law, ordinance, code,
order, rule or regulation of any Governmental Authority relating in any way to the acquisition and ownership of the Potomac Project or the Station View Project, or the use, occupancy, operation or sale of the Potomac Project or Station View Project,
including those relating to subdivision control, zoning, building, use and occupancy, fire prevention, health, safety, sanitation, handicapped access, historic preservation and protection, tidelands, wetlands, flood control, access and earth
removal, interstate land sales and all Environmental Laws. 
 Reserve Percentage. For any Interest Period, that percentage which is
specified three (3) Business Days before the first day of such Interest Period by the Board of Governors of 

  

 12 

 
the Federal Reserve System (or any successor) or any other governmental or quasi-governmental authority with jurisdiction over Agent or any Lender for
determining the maximum reserve requirement (including, but not limited to, any marginal reserve requirement) for Agent or any Lender with respect to liabilities constituting of or including (among other liabilities) Eurocurrency liabilities in an
amount equal to that portion of the Loan affected by such Interest Period and with a maturity equal to such Interest Period. 
 Salable
Inventory. The total amount of unsold Potomac Units on a square foot basis. 
 SEC. The federal Securities and Exchange
Commission. 
 Security Documents. Collectively, the Guaranty, the Mortgage, the Indemnity Agreement, the Assignment of Interests, the
Assignment of Sales Contracts and Deposits, UCC-1 financing statements and any further collateral assignments to the Agent for the benefit of the Lenders. 
 Single Purpose Entity. See §7.14(b). 
 S&P. Standard & Poor’s Ratings
Group. 
 Station View. As defined in the preamble hereto. 
 Station View Loans. The portion of the loans used to refinance existing indebtedness secured by the Station View Project. 
 Station View Project. A 7.4 acre parcel of land in Ashburn, Virginia on which Station View intends to construct a residential community consisting
of forty-seven (47) fee simple residential townhomes. 
 Subsidiary. For any Person, any corporation, partnership, limited
liability company or other entity of which at least a majority of the securities or other ownership interests having by the terms thereof ordinary voting power to elect a majority of the board of directors or other persons performing similar
functions of such corporation, partnership, limited liability company or other entity (without regard to the occurrence of any contingency) is at the time directly or indirectly owned or controlled by such Person or one or more Subsidiaries of such
Person or by such Person and one or more Subsidiaries of such Person, and shall include all Persons the accounts of which are consolidated with those of such Person pursuant to GAAP. 
 Survey. An instrument survey of the Mortgaged Property prepared by a registered land surveyor which shall show the location of all buildings,
structures, easements and utility lines on such property, shall be sufficient to remove the standard survey exception from the Title Policy, shall show that all buildings and structures are within the lot lines of the Mortgaged Property and shall
not show any encroachments by others (or to the extent any encroachments are shown, such encroachments shall be acceptable to the Agent in its reasonable discretion), shall show rights of way, adjoining sites, establish building lines and street
lines, the distance to and names of the nearest intersecting streets and such other details as the Agent may reasonably require; and shall show whether or not the Mortgaged Property is located in a flood 

  

 13 

 
hazard district as established by the Federal Emergency Management Agency or any successor agency or is located in any flood plain, flood hazard or wetland
protection district established under federal, state or local law and shall otherwise be in form and substance reasonably satisfactory to the Agent. 
 Surveyor Certification. With respect to the Mortgaged Property, a certificate executed by the surveyor who prepared the Survey with respect thereto, dated as of a recent date and containing such information
relating to such parcel as the Agent or the Title Insurance Company may reasonably require, such certificate to be reasonably satisfactory to the Agent in form and substance. 
 Taking. The taking or appropriation (including by deed in lieu of condemnation) of any Mortgaged Property, or any part thereof or interest
therein, whether permanently or temporarily, for public or quasi-public use under the power of eminent domain, by reason of any public improvement or condemnation proceeding, or in any other manner or any damage or injury or diminution in value
through condemnation, inverse condemnation or other exercise of the power of eminent domain. 
 Title Insurance Company. Lawyers Title
Insurance Company and/or any other title insurance company or companies approved by the Agent and the Borrowers. 
 Title Policy. With
respect to the Mortgaged Property, an ALTA standard form title insurance policy (or, if such form is not available, an equivalent, legally promulgated form of mortgagee title insurance policy reasonably acceptable to the Agent) issued by a Title
Insurance Company (with such reinsurance as the Agent may reasonably require, any such reinsurance to be with direct access endorsements to the extent available under applicable law) in an amount as the Agent may reasonably require based upon the
fair market value of the applicable Mortgaged Property insuring the priority of the Mortgage thereon and that a Borrower holds marketable fee simple title to such parcel, subject only to the encumbrances acceptable to Agent in its reasonable
discretion and which shall not contain standard exceptions for mechanics liens, persons in occupancy or matters which would be shown by a survey, shall not insure over any matter except to the extent that any such affirmative insurance is acceptable
to the Agent in its reasonable discretion, and shall contain such endorsements and affirmative insurance as the Agent may reasonably require and is available in the State in which the Mortgaged Property is located. 
 Total Commitment. The sum of the Commitments of the Lenders, as in effect from time to time. 
 Transfer. See §5.4. 
 Type. As to any Loan, its nature as a Base Rate Loan or a LIBOR Rate Loan. 
 Unit or Units. Any or all of the Potomac
Units. 
  

 14 

 §1.2 Rules of Interpretation. 
 (a) A reference to any document or agreement shall include such document or agreement as amended, modified or supplemented from time to time in accordance
with its terms and the terms of this Agreement. 
 (b) The singular includes the plural and the plural includes the singular. 
 (c) A reference to any law includes any amendment or modification of such law. 
 (d) A reference to any Person includes its permitted successors and permitted assigns. 
 (e) Accounting terms not otherwise defined herein have the meanings assigned to them by GAAP applied on a consistent basis by the accounting entity to
which they refer. 
 (f) The words “include”, “includes” and “including” are not limiting. 
 (g) The words “approval” and “approved”, as the context requires, means an approval in writing given to the party seeking approval
after full and fair disclosure to the party giving approval of all material facts necessary in order to determine whether approval should be granted. 
 (h) All terms not specifically defined herein or by GAAP, which terms are defined in the Uniform Commercial Code as in effect in the Commonwealth of Virginia, have the meanings assigned to them therein. 
 (i) Reference to a particular “§”, refers to that section of this Agreement unless otherwise indicated. 
 (j) The words “herein”, “hereof”, “hereunder” and words of like import shall refer to this Agreement as a whole and not to
any particular section or subdivision of this Agreement. 
  

	§2.	THE LOAN FACILITIES. 

 §2.1 Loans. 

(a) Subject to the terms and conditions set forth in this Agreement, each of the Lenders severally agrees to lend to Borrowers on the Closing Date,
and Borrowers agree to borrow on the Closing Date, such Lender’s Loan Commitment Percentage of the total Loan Commitment (except the portion allocated to the Interest Holdback, which shall be advanced as provided in §9(a)). 
 (b) The Loans shall be evidenced by notes of the Borrowers in substantially the form of Exhibit A hereto (collectively, the “Notes”),
dated of even date with this Agreement (except as otherwise provided in §18.3) and completed with appropriate insertions. One Note shall be payable to the order of each Lender in the principal amount equal to such Lender’s Loan 

  

 15 

 
Commitment, respectively, or, if less, the outstanding amount of all Loans made by such Lender, plus interest accrued thereon, as set forth below. The
Borrowers irrevocably authorize Agent to make or cause to be made, at or about the time of the Drawdown Date of any Loan or the time of receipt of any payment of principal thereof, an appropriate notation on Agent’s Record reflecting the making
of such Loan or (as the case may be) the receipt of such payment. The outstanding amount of the Loans set forth on Agent’s Record shall be prima facie evidence of the principal amount thereof owing and unpaid to each Lender, but
the failure to record, or any error in so recording, any such amount on Agent’s Record shall not limit or otherwise affect the obligations of the Borrowers hereunder or under any Note to make payments of principal of or interest on any Note
when due. 
 §2.2 Interest on Loans. 
 (a) Each Base Rate Loan shall bear interest for the period commencing with the Drawdown Date thereof and ending on the date on which such Base Rate Loan is repaid or converted to a LIBOR Rate Loan at the rate per
annum equal to the sum of the Base Rate plus one and one-half percent (1.5%). 
 (b) Each LIBOR Rate Loan shall bear interest for the period
commencing with the Drawdown Date thereof and ending on the last day of each Interest Period with respect thereto at the rate per annum equal to the sum of LIBOR determined for such Interest Period plus four percent (4%). 
 (c) Borrowers promise to pay interest on the Loans in arrears on each Interest Payment Date with respect thereto. 
 (d) Base Rate Loans and LIBOR Rate Loans may be converted to Loans of the other Type as provided in §4.1. 
 §2.3 Requests for Loans. A Borrower shall give to the Agent written notice executed by an Authorized Officer of such Borrower in the form of
Exhibit B hereto (or telephonic notice confirmed in writing in the form of Exhibit B hereto) of each Loan requested hereunder (including a request for a disbursement from the Interest Holdback) (a “Loan Request”) by 11:00
a.m. (Cleveland time) one (1) Business Day prior to the proposed Drawdown Date with respect to Base Rate Loans and two (2) Business Days prior to the proposed Drawdown Date with respect to LIBOR Rate Loans. Each such notice shall specify
with respect to the requested Loan, the proposed principal amount of such Loan, the Type of Loan, the initial Interest Period (if applicable) for such Loan and the Drawdown Date. Promptly upon receipt of any such notice, the Agent shall notify each
of the Lenders thereof. Each such Loan Request shall be irrevocable and binding on such Borrower and shall obligate such Borrower to accept the Loan requested from the Lenders on the proposed Drawdown Date. There shall be no more than six
(6) LIBOR Rate Loans outstanding at any one time. Notwithstanding anything herein to the contrary, Lenders shall not be required to advance any Loans if such advance would cause the Loan to Value Ratio to exceed the thresholds permitted under
§2.6. 
  

 16 

 §2.4 Funds for Loans. 
 (a) Not later than 1:00 p.m. (Cleveland time) on the proposed Drawdown Date of any Loans, each of the Lenders will make available to the Agent, at the
Agent’s Head Office, in immediately available funds, the amount of such Lender’s Loan Commitment or Loan Commitment Percentage, as applicable, of the amount of the requested Loan which may be disbursed pursuant to §2.1 or §9.
Upon receipt from each Lender of such amount, and upon receipt of the documents required by §10 and §11, as applicable, and the satisfaction of the other conditions set forth therein, to the extent applicable, the Agent will make available
to a Borrower (or to the Agent for the benefit of the Lenders with respect to disbursements from the Holdbacks for the payment of interest) the aggregate amount of such Loans made available to the Agent by the Lenders by crediting such amount to the
account of a Borrower maintained at the Agent’s Head Office. 
 (b) Unless the Agent shall have been notified by any Lender prior to the
applicable Drawdown Date that such Lender will not make available to Agent such Lender’s Commitment Percentage of a proposed Loan, Agent may in its discretion assume that such Lender has made such Loan available to Agent in accordance with the
provisions of this Agreement and the Agent may, if it chooses, in reliance upon such assumption make such Loan available to a Borrower (or to the Agent for the benefit of the Lenders with respect to disbursements from the Holdbacks for the payment
of interest), and such Lender shall be liable to the Agent for the amount of such advance. If such Lender does not pay such corresponding amount upon the Agent’s demand therefor, the Agent will promptly notify the Borrowers, and the Borrowers
shall promptly pay such corresponding amount to the Agent; provided, however, such obligation of Borrowers shall be deemed satisfied if Agent’s demand is not made to, Borrowers within five (5) Business Days following the applicable
Drawdown Date. The Agent shall also be entitled to recover from the Lender or the Borrowers, as the case may be, interest on such corresponding amount in respect of each day from the date such corresponding amount was made available by the Agent to
the Borrowers to the date such corresponding amount is recovered by the Agent at a per annum rate equal to (i) from the Borrowers at the applicable rate for such Loan or (ii) from a Lender at the Federal Funds Effective Rate. 

§2.5 Use of Proceeds. The Borrowers will use the proceeds of the Loans as follows: solely to (i) pay closing costs in connection with
this Agreement, (ii) refinance existing indebtedness secured by the Station View Project, (iii) refinance existing indebtedness secured by the Potomac Project, (iv) fund interest due on the Loans, (v) fund to Potomac for the
repurchase by Guarantor of the CHCI Subordinate Notes the amount identified on the Loan settlement statement for such purpose, and (vi) the remainder not specifically used by the foregoing item (v) shall be available for general working
capital purposes. The Borrowers and Guarantor each represent and warrant that the amounts advanced or to be advanced under the Notes and Loans are greater than $5,000.00 and are being made exclusively in connection with loans made for business or
investment purposes within the meaning and intent of Section 6.1-330.75 of the Code of Virginia (1950), as amended. 
 §2.6
Remargining. Borrowers will not at any time permit the ratio of (a) the Outstanding Loans as of such date to (b) the aggregate Appraised Value as of such date (such ratio, the “Loan to Value Ratio”) to exceed seventy-two
percent (72%); provided, however, from and after December 31, 2008, such Loan to Value Ratio may not exceed seventy percent (70%) at any time. Borrowers acknowledge that in the event that following the receipt of a new 

  

 17 

 
Appraisal Agent determines that the Outstanding Loans is greater than seventy percent (70%) of the aggregate Appraised Value, the Outstanding Loans
shall be reduced such that the Outstanding Loans does not exceed seventy percent (70%) of the aggregate Appraised Value, and Borrowers shall within thirty (30) days of notice from Agent pay to Agent as a prepayment of the Loans (to be
applied pro rata among the Potomac Loan and the Station View Loan) such amount as is necessary so that the sum of the Outstanding Loans does not exceed seventy percent (70%) of the aggregate Appraised Value. If the Borrowers fail to remargin
the Loan within such thirty (30) day period, then Borrowers shall have an additional sixty (60) days to make the required prepayment hereunder so long as Borrowers are diligently and continuously attempting to cure such Default. The Agent
on behalf of the Banks shall have the right to obtain from time to time, at the Borrowers’ cost and expense, updated Appraisals of the Project which will be ordered by the Agent, provided that so long as no Default or Event of Default
shall have occurred and be continuing, the Borrowers shall only be obligated to pay for the costs and expenses associated with one such Appraisal during any twelve (12) month period prior to the occurrence of the Maturity Date. The reasonable
actual out-of-pocket costs and expenses incurred by the Agent in obtaining such Appraisals shall be paid by the Borrowers forthwith upon billing or request by the Agent for reimbursement therefor. Notwithstanding the foregoing, provided no
Event of Default has occurred and is continuing, then Agent shall not have the right to obtain an updated Appraisal prior to December 31, 2008; provided, further, however that in the event Agent determines in its reasonable discretion
that Potomac Units are not going under contract or are not being released pursuant to §5.2 at a frequency and sales price that would support the mandatory prepayments required by §3.3, then Agent shall have the right to obtain an Appraisal
of the Potomac Project as of December 31, 2008 at the Borrowers’ expense. 
 §2.7 Reborrowing for Purposes of Paying
Interest. Notwithstanding anything herein to the contrary, Borrowers may reborrow (and repay and reborrow) from time to time between the Closing Date and the Maturity Date funds not to exceed the amount in the Interest Holdback from the Interest
Holdback at such time as the Interest Holdback is fully funded pursuant to §5.2(d)(ii). Borrowers may only reborrow such amounts for the purpose of paying interest on the Loans. 
 §2.8 Revolving Credit Facility. Provided that no Default or Event of Default shall have occurred and be continuing, on the date the total
Outstanding Loans reduce to $30,000,000, Borrowers may give written notice to the Agent within thirty (30) days of the Outstanding Loans reducing to $30,000,000 that Borrowers desire to modify this Agreement to permit reborrowings. Borrowers
and Agent agree to enter into good-faith discussions regarding a modification of this Agreement and the other Loan Documents permitting reborrowings for projects other than the Potomac Project and Station View Project and establishing a borrowing
base pursuant to such documents and terms as are satisfactory to Borrowers, Agent and the Lenders in their sole discretion. Additionally, inclusion of any new projects as Collateral shall be at the sole discretion of Agent and the Lenders.

  

 18 

	§3.	REPAYMENT OF THE LOANS. 

 §3.1 Stated Maturity.
Borrowers promise to pay on the Maturity Date and there shall become absolutely due and payable on the Maturity Date all of the Loans outstanding on such date, together with any and all accrued and unpaid interest thereon. 
 §3.2 Optional Prepayments. Borrowers shall have the right, at their election, to prepay the outstanding amount of the Loans, as a whole or in
part, at any time without penalty or premium; provided, that if any prepayment of the outstanding amount of any LIBOR Rate Loans pursuant to this §3.2 is made on a date that is not the last day of the Interest Period relating thereto,
such prepayment shall be accompanied by the payment of any amounts due pursuant to §4.8. A Borrower shall give the Agent, no later than 10:00 a.m. (Cleveland time) at least three (3) days prior written notice of any prepayment pursuant to
this §3.2, in each case specifying the proposed date of prepayment of the Loans and the principal amount to be prepaid. 
 §3.3
Mandatory Prepayments. Beginning on March 31, 2009 and on each of September 30, 2009 and March 30, 2010, Potomac shall immediately pay the amounts set forth on Schedule 3.3 hereto to the Agent for the respective accounts
of the Lenders for application to the outstanding principal balance of the Loans; provided, however, Potomac shall receive a credit against any amounts due pursuant to this §3.3 for release proceeds paid to Agent pursuant to §5.2(d) for
application to the outstanding principal balance of the Potomac Loans, such credit to carry over to subsequent prepayment dates. 
 §3.4
Partial Prepayments. Except with respect to the sale of Units pursuant to §5.2, each partial prepayment of the Loans under §3.2 shall be in a minimum amount of $100,000.00 or an integral multiple of $50,000.00 in excess thereof, and
shall be accompanied by the payment of accrued interest on the principal prepaid to the date of payment. Each partial payment under §3.2, §3.3 or §5.2 shall, in the absence of instruction by the Borrowers, be applied first to the
principal of Base Rate Loans of such Borrower, and then to the principal of LIBOR Rate Loans of such Borrower. Each partial payment under §5.2(d) or §5.2(e) shall reduce the outstanding principal balance of the Potomac Loans or Station
View Loans, respectively. 
 §3.5 Effect of Prepayments. Amounts of the Loans prepaid prior to the Maturity Date may not be
reborrowed, except as expressly permitted in §2.7 of this Agreement. 
  

	§4.	CERTAIN GENERAL PROVISIONS. 

 §4.1 Conversion
Options. 
 (a) The Borrowers may elect from time to time to convert any of their respective outstanding Loans to a Loan of another Type
and such Loans shall thereafter bear interest as a Base Rate Loan or a LIBOR Rate Loan, as applicable; provided that (i) with respect to any such conversion of a LIBOR Rate Loan to a Base Rate Loan, a Borrower shall give the Agent at least one
(1) Business Day’s prior written notice of such election, and such conversion shall only be made on the last day of the Interest Period with respect to such LIBOR Rate Loan; (ii) with respect to any such conversion of a Base Rate Loan
to a LIBOR Rate Loan, a Borrower shall give the Agent at least two (2) LIBOR Business Days’ prior written notice of such election and the Interest Period requested for such Loan, the principal amount of the Loan so converted 

  

 19 

 
shall be in a minimum aggregate amount of $100,000.00 or an integral multiple of $50,000.00 in excess thereof and, after giving effect to the making of such
Loan, there shall be no more than six (6) LIBOR Rate Loans outstanding at any one time; and (iii) no Loan may be converted into a LIBOR Rate Loan when any Default or Event of Default has occurred and is continuing. All or any part of the
outstanding Loans of any Type may be converted as provided herein, provided that no partial conversion shall result in a Base Rate Loan in a principal amount of less than $100,000.00 or an integral multiple of $50,000.00 or a LIBOR Rate Loan
in a principal amount of less than $100,000.00 or an integral multiple of $50,000.00. On the date on which such conversion is being made, each Lender shall take such action as is necessary to transfer its Commitment Percentage of such Loans to its
Domestic Lending Office or its LIBOR Lending Office, as the case may be. Each Conversion/Continuation Request relating to the conversion of a Base Rate Loan to a LIBOR Rate Loan shall be irrevocable by the Borrowers. 
 (b) Any LIBOR Rate Loan may be continued as such Type upon the expiration of an Interest Period with respect thereto by compliance by a Borrower with the
terms of §4.1; provided that no LIBOR Rate Loan may be continued as such when any Default or Event of Default has occurred and is continuing, but shall be automatically converted to a Base Rate Loan on the last day of the Interest Period
relating thereto ending during the continuance of any Default or Event of Default. 
 (c) In the event that a Borrower does not notify the
Agent of its election hereunder with respect to any LIBOR Rate Loan, such Loan shall be automatically converted to a Base Rate Loan at the end of the applicable Interest Period. 
 §4.2 Closing Fee. The Borrowers agree to pay to KeyBank certain fees for services rendered or to be rendered in connection with the Loans as
provided pursuant to an Agreement Regarding Fees dated as of even date herewith between the Borrowers and KeyBank (the “Agreement Regarding Fees”). All such fees shall be fully earned when paid and nonrefundable under any circumstances.

 §4.3 [Intentionally omitted]. 
 §4.4 Funds for Payments. 
 (a) All payments of principal, interest, facility fees, Agent’s
fees, closing fees and any other amounts due hereunder or under any of the other Loan Documents shall be made to the Agent, for the respective accounts of the Lenders and the Agent, as the case may be, at the Agent’s Head Office, not later than
2:00 p.m. (Cleveland time) on the day when due, in each case in lawful money of the United States in immediately available funds. The Agent is hereby authorized to charge the accounts of the Borrowers with KeyBank, on the dates when the amount
thereof shall become due and payable, with the amounts of the principal of and interest on the Loans and all fees, charges, expenses and other amounts owing to the Agent and/or the Lenders under the Loan Documents. Subject to the foregoing, all
payments made to Agent on behalf of the Lenders, and actually received by Agent, shall be deemed received by the Lenders on the date actually received by Agent. 
  

 20 

 (b) All payments by the Borrowers hereunder and under any of the other Loan Documents shall be made
without setoff or counterclaim and free and clear of and without deduction for any taxes, levies, imposts, duties, charges, fees, deductions, withholdings, compulsory loans, restrictions or conditions of any nature now or hereafter imposed or levied
by any jurisdiction or any political subdivision thereof or taxing or other authority therein unless the Borrowers are compelled by law to make such deduction or withholding. If any such obligation is imposed upon the Borrowers with respect to any
amount payable by it hereunder or under any of the other Loan Documents, the Borrowers will pay to the Agent, for the account of the Lenders or (as the case may be) the Agent, on the date on which such amount is due and payable hereunder or under
such other Loan Document, such additional amount in Dollars as shall be necessary to enable the Lenders or the Agent to receive the same net amount which the Lenders or the Agent would have received on such due date had no such obligation been
imposed upon the Borrowers. The Borrowers will deliver promptly to the Agent certificates or other valid vouchers for all taxes or other charges deducted from or paid with respect to payments made by the Borrowers hereunder or under any other Loan
Document. 
 (c) Each Lender organized under the laws of a jurisdiction outside the United States, if requested in writing by the Borrowers
(but only so long as such Lender remains lawfully able to do so), shall provide the Borrowers with such duly executed form(s) or statement(s) which may, from time to time, be prescribed by law and, which, pursuant to applicable provisions of
(i) an income tax treaty between the United States and the country of residence of such Lender, (ii) the Code, or (iii) any applicable rules or regulations in effect under (i) or (ii) above, indicates the withholding status
of such Lender; provided that nothing herein (including without limitation the failure or inability to provide such form or statement) shall relieve the Borrowers of their obligations under §4.4(b). In the event that the Borrowers shall
have delivered the certificates or vouchers described above for any payments made by the Borrowers and such Lender receives a refund of any taxes paid by the Borrowers pursuant to §4.4(b), such Lender will pay to the Borrowers the amount of
such refund promptly upon receipt thereof; provided that if at any time thereafter such Lender is required to return such refund, the Borrowers shall promptly repay to such Lender the amount of such refund. 
 §4.5 Computations. All computations of interest on the Loans and of other fees to the extent applicable shall be based on a 360 day year and
paid for the actual number of days elapsed. Except as otherwise provided in the definition of the term “Interest Period” with respect to LIBOR Rate Loans, whenever a payment hereunder or under any of the other Loan Documents becomes due on
a day that is not a Business Day, the due date for such payment shall be extended to the next succeeding Business Day, and interest shall accrue during such extension. The Outstanding Loans as reflected on the records of the Agent from time to time
shall be considered prima facie evidence of such amount absent manifest error. 
 §4.6 Suspension of LIBOR Rate Loans. In the
event that, prior to the commencement of any Interest Period relating to any LIBOR Rate Loan, the Agent shall determine that adequate and reasonable methods do not exist for ascertaining LIBOR for such Interest Period, or the Agent shall reasonably
determine that LIBOR will not accurately and fairly reflect the cost of the Lenders making or maintaining LIBOR Rate Loans for such Interest Period, the Agent shall forthwith give notice of such determination (which shall be conclusive and binding
on the Borrowers and the Lenders absent manifest error) to the Borrowers and the Lenders. In such 

  

 21 

 
event (a) any Loan Request with respect to a LIBOR Rate Loan shall be automatically withdrawn and shall be deemed a request for a Base Rate Loan and
(b) each LIBOR Rate Loan will automatically, on the last day of the then current Interest Period applicable thereto, become a Base Rate Loan, and the obligations of the Lenders to make LIBOR Rate Loans shall be suspended until the Agent
determines that the circumstances giving rise to such suspension no longer exist, whereupon the Agent shall so notify the Borrowers and the Lenders. 
 §4.7 Illegality. Notwithstanding any other provisions herein, if any present or future law, regulation, treaty or directive or the interpretation or application thereof shall make it unlawful, or any
central bank or other governmental authority having jurisdiction over a Lender or its LIBOR Lending Office shall assert that it is unlawful, for any Lender to make or maintain LIBOR Rate Loans, such Lender shall forthwith give notice of such
circumstances to the Agent and the Borrowers and thereupon (a) the commitment of the Lenders to make LIBOR Rate Loans shall forthwith be suspended and (b) the LIBOR Rate Loans then outstanding shall be converted automatically to Base Rate
Loans on the last day of each Interest Period applicable to such LIBOR Rate Loans or within such earlier period as may be required by law. Notwithstanding the foregoing, before giving such notice, the applicable Lender shall designate a different
lending office if such designation will void the need for giving such notice and will not, in the judgment of such Lender, be otherwise materially disadvantageous to such Lender or increase any costs payable by Borrowers hereunder. 
 §4.8 Additional Interest. If any LIBOR Rate Loan or any portion thereof is repaid or is converted to a Base Rate Loan for any reason on a
date which is prior to the last day of the Interest Period applicable to such LIBOR Rate Loan, or if repayment of the Loans has been accelerated as provided in §12.1, a Borrower will pay to the Agent upon demand for the account of the
applicable Lenders in accordance with their respective Commitment Percentages, in addition to any amounts of interest otherwise payable hereunder, the Breakage Costs. Borrowers understand, agree and acknowledge the following: (i) no Lender has
any obligation to purchase, sell and/or match funds in connection with the use of LIBOR as a basis for calculating the rate of interest on a LIBOR Rate Loan; (ii) LIBOR is used merely as a reference in determining such rate; and
(iii) Borrowers have accepted LIBOR as a reasonable and fair basis for calculating such rate and any Breakage Costs. Borrowers further agree to pay the Breakage Costs, if any, whether or not a Lender elects to purchase, sell and/or match funds.

 §4.9 Additional Costs, Etc. Notwithstanding anything herein to the contrary, if any present or future applicable law, which
expression, as used herein, includes statutes, rules and regulations thereunder and interpretations thereof by any competent court or by any governmental or other regulatory body or official charged with the administration or the interpretation
thereof and requests, directives, instructions and notices at any time or from time to time hereafter made upon or otherwise issued to any Lender or the Agent by any central bank or other fiscal, monetary or other authority (whether or not having
the force of law), shall: 
 (a) subject any Lender or the Agent to any tax, levy, impost, duty, charge, fee, deduction or withholding of any
nature with respect to this Agreement, the other Loan Documents, such Lender’s Commitment or the Loans (other than taxes based upon or measured by the gross receipts, income or profits of such Lender or the Agent or its franchise tax), or

  

 22 

 (b) materially change the basis of taxation (except for changes in taxes on gross receipts, income or
profits or its franchise tax) of payments to any Lender of the principal of or the interest on any Loans or any other amounts payable to any Lender under this Agreement or the other Loan Documents, or 
 (c) impose or increase or render applicable any special deposit, reserve, assessment, liquidity, capital adequacy or other similar requirements (whether
or not having the force of law and which are not already reflected in any amounts payable by Borrowers hereunder) against assets held by, or deposits in or for the account of, or loans by, or commitments of an office of any Lender, or 
 (d) impose on any Lender or the Agent any other conditions or requirements with respect to this Agreement, the other Loan Documents, the Loans, such
Lender’s Commitment or any class of loans or commitments of which any of the Loans or such Lender’s Commitment forms a part; and the result of any of the foregoing is: 
 (i) to increase the cost to any Lender of making, funding, issuing, renewing, extending or maintaining any of the Loans or such Lender’s Commitment,
or 
 (ii) to reduce the amount of principal, interest or other amount payable to any Lender or the Agent hereunder on account of such
Lender’s Commitment or any of the Loans, or 
 (iii) to require any Lender or the Agent to make any payment or to forego any interest
or other sum payable hereunder, the amount of which payment or foregone interest or other sum is calculated by reference to the gross amount of any sum receivable or deemed received by such Lender or the Agent from the Borrowers hereunder,

 then, and in each such case, the Borrowers will, within fifteen (15) days of demand made by such Lender or (as the case may be) the Agent at any time
and from time to time and as often as the occasion therefor may arise, pay to such Lender or the Agent such additional amounts as such Lender or the Agent shall determine in good faith to be sufficient to compensate such Lender or the Agent for such
additional cost, reduction, payment or foregone interest or other sum. Each Lender and the Agent in determining such amounts may use any reasonable averaging and attribution methods generally applied by such Lender or the Agent. 
 §4.10 Capital Adequacy. If after the date hereof any Lender determines that (a) the adoption of or change in any law, rule, regulation
or guideline regarding capital requirements for banks or bank holding companies or any change in the interpretation or application thereof by any governmental authority charged with the administration thereof, or (b) compliance by such Lender
or its parent bank holding company with any guideline, request or directive of any such entity regarding capital adequacy (whether or not having the force of law), has the effect of reducing the return on such Lender’s or such holding
company’s capital as a consequence of such Lender’s commitment to make Loans hereunder to a level below that which such Lender or holding company could have achieved but for such adoption, change or compliance (taking into consideration
such Lender’s or such holding company’s then existing policies with respect to capital adequacy and assuming the full utilization of such entity’s capital) by any amount 

  

 23 

 
deemed by such Lender to be material, then such Lender may notify the Borrowers thereof. The Borrowers agree to pay to such Lender the amount of such
reduction in the return on capital as and when such reduction is determined, upon presentation by such Lender of a statement of the amount setting forth the Lender’s calculation thereof. In determining such amount, such Lender may use any
reasonable averaging and attribution methods generally applied by such Lender. 
 §4.11 Breakage Costs. Borrowers shall pay all
Breakage Costs required to be paid by them pursuant to this Agreement and incurred from time to time by any Lender upon demand within fifteen (15) days from receipt of written notice from Agent, or such earlier date as may be required by this
Agreement. 
 §4.12 Default Interest; Late Charge. Following the occurrence and during the continuance of any Event of Default,
and regardless of whether or not the Agent or the Lenders shall have accelerated the maturity of the Loans, all Loans shall bear interest payable on demand at a rate per annum equal to six percent (6.0%) above the Base Rate (the “Default
Rate”), until such amount shall be paid in full (after as well as before judgment), or if such amount shall exceed the maximum rate permitted by law, then at the maximum rate permitted by law. In addition, Borrowers shall pay a late charge
equal to four percent (4.0%) of any amount of interest and/or principal payable on the Loans to it or any other amounts payable hereunder or under the other Loan Documents, which is not paid by the Borrowers within ten (10) days of the
date when due. 
 §4.13 Certificate. A certificate setting forth any amounts payable pursuant to §4.8, §4.9,
§4.10, §4.11 or §4.12 and a reasonably detailed explanation of such amounts which are due, submitted by any Lender or the Agent to the Borrowers, shall be conclusive in the absence of manifest error. 
 §4.14 Limitation on Interest. Notwithstanding anything in this Agreement or the other Loan Documents to the contrary, all agreements between
or among the Borrowers, the Guarantor, the Lenders and the Agent, whether now existing or hereafter arising and whether written or oral, are hereby limited so that in no contingency, whether by reason of acceleration of the maturity of any of the
Obligations or otherwise, shall the interest contracted for, charged or received by the Lenders exceed the maximum amount permissible under applicable law. If, from any circumstance whatsoever, interest would otherwise be payable to the Lenders in
excess of the maximum lawful amount, the interest payable to the Lenders shall be reduced to the maximum amount permitted under applicable law; and if from any circumstance the Lenders shall ever receive anything of value deemed interest by
applicable law in excess of the maximum lawful amount, an amount equal to any excessive interest shall be applied to the reduction of the principal balance of the Obligations and to the payment of interest or, if such excessive interest exceeds the
unpaid balance of principal of the Obligations, such excess shall be refunded to the Borrowers. All interest paid or agreed to be paid to the Lenders shall, to the extent permitted by applicable law, be amortized, prorated, allocated and spread
throughout the full period until payment in full of the principal of the Obligations (including the period of any renewal or extension thereof) so that the interest thereon for such full period shall not exceed the maximum amount permitted by
applicable law. This Section shall control all agreements between or among the Borrowers, the Guarantor, the Lenders and the Agent. 
  

 24 

 §4.15 Certain Provisions Relating to Increased Costs. If a Lender gives notice of the
existence of the circumstances set forth in §4.7 or any Lender requests compensation for any losses or costs to be reimbursed pursuant to any one or more of the provisions of §4.9 or §4.10, then, upon request of Borrowers, such
Lender, as applicable, shall use reasonable efforts in a manner consistent with such institution’s practice in connection with loans like the Loan of such Lender to eliminate, mitigate or reduce amounts that would otherwise be payable by
Borrowers under the foregoing provisions, provided that such action would not be otherwise prejudicial to such Lender, including, without limitation, by designating another of such Lender’s offices, branches or affiliates; the Borrowers
agreeing to pay all reasonably incurred costs and expenses incurred by such Lender in connection with any such action. Notwithstanding anything to the contrary contained herein, if no Default or Event of Default shall have occurred and be
continuing, and if any Lender has given notice of the existence of the circumstances set forth in §4.7 or has requested payment or compensation for any losses or costs to be reimbursed pursuant to any one or more of the provisions of §4.9
or §4.10 (each, an “Affected Lender”), then, within thirty (30) days after such notice or request for payment or compensation, Borrowers shall have the one-time right as to such Affected Lender to be exercised by delivery of
written notice delivered to the Agent and the Affected Lender within thirty (30) days of receipt of such notice to elect to cause the Affected Lender to transfer its Commitment. The Agent shall promptly notify the remaining Lenders that each of
such Lenders shall have the right, but not the obligation, to acquire a portion of the Commitment, pro rata based upon their relevant Commitment Percentages, of the Affected Lender (or if any of such Lenders does not elect to purchase its pro rata
share, then to such remaining Lenders in such proportion as approved by the Agent). In the event that the Lenders do not elect to acquire all of the Affected Lender’s Commitment, then the Agent shall endeavor to obtain a new Lender to acquire
such remaining Commitment. Upon any such purchase of the Commitment of the Affected Lender, the Affected Lender’s interest in the Obligations and its rights hereunder and under the Loan Documents shall terminate at the date of purchase, and the
Affected Lender shall promptly execute all documents reasonably requested to surrender and transfer such interest. The purchase price for the Affected Lender’s Commitment shall equal any and all amounts outstanding and owed by Borrowers to the
Affected Lender, as applicable, including principal and all accrued and unpaid interest or fees. 
  

	§5.	COLLATERAL SECURITY. 

 §5.1 Collateral. The
Obligations shall be secured by a perfected first priority lien and security interest to be held by the Agent for the benefit of the Lenders in the Collateral pursuant to the Security Documents. 
 §5.2 Release of Mortgaged Property. Provided no Default or Event of Default shall have occurred hereunder and be continuing (or would exist
immediately after giving effect to the transactions contemplated by this §5.2), the Agent shall release a Unit or Units included in the Mortgaged Property to be conveyed pursuant to a Purchase Contract from the lien or security title of the
Security Documents encumbering the same upon the request of a Borrower subject to and upon the following terms and conditions: 
 (a) such
Borrower shall deliver to the Agent written notice of its desire to obtain such release no later than three (3) Business Days prior to the date on which such release is to be effected. Such request shall be accompanied by a copy of the sales
contract, closing statement and any related documents reasonably requested by the Agent; 
  

 25 

 (b) all release documents to be executed by the Agent shall be in form and substance reasonably
satisfactory to the Agent; 
 (c) Borrowers shall pay all reasonable costs and expenses of the Agent in connection with such release,
including without limitation, reasonable attorney’s fees; 
 (d) with respect to the Potomac Units, Potomac shall cause the settlement
agent to contemporaneously with each sale of a Unit pay to the Agent for the account of the Lenders an amount equal to one hundred percent (100%), as may be adjusted below in this §5.2(d), of the Net Sales Proceeds for such Potomac Unit, which
payment shall be applied by Agent as follows: 
 (i) First, to reduce the Outstanding Potomac Loans as provided in §3.4 in an amount
equal to one hundred ten percent (110%) of the portion of the Potomac Loans allocated to such Potomac Unit on a square foot basis as set forth on Schedule 5.2 hereto multiplied by the square footage of such Potomac Unit to be released;

 (ii) Second, any remaining Net Sales Proceeds shall be applied as a prepayment of the Potomac Loan and increase the Interest Holdback to
an amount not greater than seven and one-half percent (7.5%) of the total amount of the Potomac Loans which may be borrowed by Potomac (including the Interest Holdback); 
 (iii) Third, any remaining Net Sales Proceeds shall be used to reduce the outstanding principal balance of the Potomac Loans as provided in §3.4.

 Notwithstanding the foregoing, once the Interest Holdback reaches an amount equal to seven and one-half percent (7.5%) of the total
amount of the Potomac Loans which may be borrowed by Potomac (including the Interest Holdback), then the percentage of Net Sales Proceeds to be applied by Agent pursuant to this §5.2(d) shall decrease as the Outstanding Potomac Loans per square
foot of Salable Inventory reduces as follows: 
  

				
	 Outstanding Potomac Loans per Square Foot of Salable Inventory
	  	Percentage of Net Sales
Proceeds Applied by Agent	 
	 Greater than or equal to $150.00
	  	100.0	%
	 Greater than or equal to $100.00 but less than $150.00
	  	65.0	%
	 Less than $100.00
	  	50.0	%

 (e) Intentionally Omitted; 
 (f) in no event shall Agent release a Unit if following such sale portions of the remaining Mortgaged Property (i) shall be without access to a
public street over remaining Mortgaged Property or over a perpetual easement for ingress and egress, or (ii) shall no longer be 

  

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able to tap into, connect with, utilize or maintain all utilities necessary to serve such portions of the Mortgaged Property, to the extent applicable,
including without limitation, storm sewer, sanitary sewer, water, electricity and gas, either over remaining Mortgaged Property or over a perpetual easement with respect thereto; 
 (g) prior to any sale hereunder, such Borrower shall have taken such actions as may be required to cause the portion of the Mortgaged Property to be sold
to be taxed separately from the remaining portion of the Mortgaged Property; 
 (h) both the portion of the Mortgaged Property to be sold and
any improvements thereon and the Mortgaged Property remaining after such sale and any improvements thereon will be in compliance with all zoning laws, building codes, parking laws and regulations, subdivision laws or approvals, set-back lines or any
other governmental regulation, requirement or agreement, including, without limitation, environmental laws, and any recorded covenants, conditions or restrictions; and 
 (i) the sale of such property shall not cause any Borrower to be in violation of or result in a breach under any other agreement or instrument by which it or any portion of the Mortgaged Property is bound. 

§5.3 Release of Collateral. Upon the refinancing or repayment of the Obligations in full, then the Agent shall release the Collateral from
the lien and security interest of the Security Documents. Notwithstanding the foregoing, provided no Default or Event of Default shall have occurred hereunder and be continuing (or would exist immediately after giving effect to the transactions
contemplated by this §5.3), upon the bulk sale of the Station View Project, Agent shall release the Station View Project from the lien and security interests of the Security Documents upon a payment of the sum of $2,820,000 as a prepayment of
principal, plus any amounts drawn under the Interest Holdback which are allocable to the Station View Loans; provided, however, in the event the Potomac Loans have been paid in full, Borrowers shall be required to repay the Obligations in
full to obtain a release of the Station View Project. 
 §5.4 Sale of Mortgaged Property or Change in Borrowers. 
 (a) Borrowers acknowledge that the Lenders have examined and relied on the creditworthiness and experience of Borrowers in agreeing to make the Loan, and
that the Lenders have a valid interest in maintaining the value of the Mortgaged Property and the other Collateral so as to ensure that should Borrowers default in the repayment of the Loans, the Lenders can recover the Obligations by a sale of the
Collateral. 
 (b) Borrowers may not Transfer the Collateral (except as permitted in §5.2, §7.12, or §8.4), nor allow any
Change in Ownership. 
 (c) A “Transfer” is defined as any sale, conveyance, assignment, alienation, mortgage,
hypothecation, encumbrance, grant of a lien over or a security interest in, pledge or other transfer of the Mortgaged Property, any other Collateral or any part thereof or interest therein, whether voluntary or involuntary. Without limiting the
generality of the foregoing, a Transfer is deemed to include: (i) an installment sales agreement wherein a Borrower agrees to sell the Mortgaged Property or any part thereof for a price to be paid in installments; (ii) an 

  

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agreement by a Borrower leasing all or any part of the Mortgaged Property; or (iii) a sale, assignment or other transfer of, or the grant of a security
interest in, any Borrower’s right, title and interest in and to any rents, issues or profits from the Collateral. 
 (d) A
“Change in Ownership” shall occur (i) upon any transfer of any direct or indirect ownership or economic interests in any Borrower or the creation of new or additional Equity Interests in any Borrower; or (ii) upon the
addition, change, removal, resignation or transfer of a managing member, general partner or similar controlling person or entity of any Borrower. 
  

	§6.	REPRESENTATIONS AND WARRANTIES. 

 The Borrowers represent
and warrant to the Agent and the Lenders as follows. 
 §6.1 Corporate Authority, Etc. 
 (a) Incorporation; Good Standing. Each of the Borrowers and the Guarantor (i) is a corporation, limited partnership, general partnership,
limited liability company or trust duly organized under the laws of its State of organization and is validly existing and in good standing under the laws thereof, (ii) has all requisite power to own its property and conduct its business as now
conducted and as presently contemplated and (iii) is in good standing and is duly authorized to do business in the jurisdiction where the Mortgaged Property is located (to the extent required by applicable law) and in each other jurisdiction
where a failure to be so qualified could have a Material Adverse Effect. 
 (b) Authorization. The execution, delivery and performance
of this Agreement and the other Loan Documents to which any Borrower or the Guarantor is a party and the transactions contemplated hereby and thereby (i) are within the authority of such Person, (ii) have been duly authorized by all
necessary proceedings on the part of such Person, (iii) do not and will not conflict with or result in any breach or contravention of any provision of law, statute, rule or regulation to which such Person is subject or any judgment, order,
writ, injunction, license or permit applicable to such Person, (iv) do not and will not conflict with or constitute a default (whether with the passage of time or the giving of notice, or both) under any provision of the partnership agreement,
articles of incorporation, operating agreement or other charter documents or bylaws of, or any agreement or other instrument binding upon, such Person or any of its properties, (v) do not and will not result in or require the imposition of any
lien or other encumbrance on any of the properties, assets or rights of such Person other than the liens and encumbrances in favor of Agent contemplated by this Agreement and the other Loan Documents, and (vi) do not require the approval or
consent of any Person other than those already obtained and delivered to Agent. 
 (c) Enforceability. The execution and delivery of
this Agreement and the other Loan Documents to which any Borrower or the Guarantor is a party are valid and legally binding obligations of such Person enforceable in accordance with the respective terms and provisions hereof and thereof, except as
enforceability is limited by bankruptcy, insolvency, reorganization, moratorium or other laws relating to or affecting generally the enforcement of creditors’ rights and general principles of equity. 
  

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 §6.2 Governmental Approvals. The execution, delivery and performance of this Agreement and
the other Loan Documents to which the Borrowers or the Guarantor is a party and the transactions contemplated hereby and thereby do not require the approval or consent of, or filing or registration with, or the giving of any notice to, any court,
department, board, governmental agency or authority other than those already obtained and the filing of the Security Documents in the appropriate records office with respect thereto. 
 §6.3 Financial Statements. The Borrowers have furnished to Agent: (a) the balance sheet of each Borrower as of the Balance Sheet Date
certified by the chief financial or accounting officer of each Borrower, and (b) certain other financial information relating to the Borrowers, the Guarantor and the Mortgaged Property. Such balance sheet and statements have been prepared in
accordance with GAAP and fairly present the financial condition of each Person covered thereby as of such dates. There are no liabilities, contingent or otherwise, of the Borrowers or Guarantor involving material amounts not disclosed in said
financial statements and the related notes thereto. 
 §6.4 No Material Changes. Since the Balance Sheet Date there has occurred
no materially adverse change in the financial condition or business of any Borrower or the Guarantor as shown on or reflected in the balance sheet of such Person as of the Balance Sheet Date, other than changes in the ordinary course of business
that have not and could not reasonably be expected to have a Material Adverse Effect. 
 §6.5 Franchises, Patents, Copyrights,
Etc. The Borrowers possess all franchises, patents, copyrights, trademarks, trade names, service marks, licenses and permits, and rights in respect of the foregoing, adequate for the conduct of their business substantially as now conducted
without known conflict with any rights of others. The Mortgaged Property is not owned or operated under or by reference to any registered or protected trademark, trade name, service mark or logo. 
 §6.6 Litigation. Except as stated on Schedule 6.6, there are no actions, suits, proceedings or investigations of any kind pending or
to the knowledge of the Borrowers threatened against any Borrower or the Guarantor before any court, tribunal, arbitrator, mediator or administrative agency or board which question the validity of this Agreement or any of the other Loan Documents,
any action taken or to be taken pursuant hereto or thereto or any lien, security title or security interest created or intended to be created pursuant hereto or thereto, or which if adversely determined could reasonably be expected to have a
Material Adverse Effect or impair the right or ability of such Person to carry on business substantially as now conducted. Except as set forth on Schedule 6.6, there are no judgments, final orders or awards outstanding against or affecting
any Borrower, the Guarantor or the Mortgaged Property. 
 §6.7 No Material Adverse Contracts, Etc. None of the Borrowers or the
Guarantor is subject to any charter, corporate or other legal restriction, or any judgment, decree, order, rule or regulation that has or is expected in the future to have a Material Adverse Effect. None of the Borrowers or the Guarantor is a party
to any contract or agreement that has or could reasonably be expected to have a Material Adverse Effect. 
  

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 §6.8 Compliance with Other Instruments, Laws, Etc. None of the Borrowers or the Guarantor is
in violation of any provision of its charter or other organizational documents, bylaws, or any agreement or instrument to which it is subject or by which it or any of its properties is bound or any decree, order, judgment, statute, license, rule or
regulation, in any of the foregoing cases in a manner that has had or could reasonably be expected to have a Material Adverse Effect. 
 §6.9 Tax Status. Each of the Borrowers and the Guarantor (a) has made or filed all federal and state income and all other tax returns, reports and declarations required by any jurisdiction to which it is subject or has
obtained an extension for filing, (b) has paid prior to delinquency all taxes and other governmental assessments and charges shown or determined to be due on such returns, reports and declarations, except those being contested in good faith and
by appropriate proceedings and (c) has set aside on its books provisions reasonably adequate for the payment of all taxes for periods subsequent to the periods to which such returns, reports or declarations apply. There are no unpaid taxes in
any material amount claimed to be due by the taxing authority of any jurisdiction, and the officers or partners of such Person know of no basis for any such claim. There are no audits pending or to the knowledge of Borrowers threatened with respect
to any tax returns filed by Borrowers or the Guarantor. The taxpayer identification numbers or social security numbers for the Borrowers and the Guarantor is as set forth in Schedule 6.9 hereto. 
 §6.10 No Event of Default. No Default or Event of Default has occurred and is continuing. 
 §6.11 Investment Company Act. None of the Borrowers is an “investment company”, or an “affiliated company” or a
“principal underwriter” of an “investment company”, as such terms are defined in the Investment Company Act of 1940. 
 §6.12 Employee Benefit Plans. None of the Borrowers or any ERISA Affiliate maintains or contributes to any Employee Benefit Plan, Multiemployer Plan or Guaranteed Pension Plan. None of the assets of the Borrowers constitute a
“plan asset” of any Employee Plan, Multiemployer Plan or Guaranteed Pension Plan. 
 §6.13 Disclosure. All of the
representations and warranties made by or on behalf of the Borrowers and the Guarantor in this Agreement and the other Loan Documents or any document or instrument delivered to the Agent or the Lenders pursuant to or in connection with any of such
Loan Documents are true and correct in all material respects, and neither the Borrowers nor the Guarantor has failed to disclose such information as is necessary to make such representations and warranties not misleading. There is no material fact
or circumstance that has not been disclosed to the Agent and the Lenders, and the written information, reports and other papers and data with respect to the Borrowers, the Guarantor or the Mortgaged Property (other than projections and estimates)
furnished to the Agent or the Lenders in connection with this Agreement or the obtaining of the Commitments of the Lenders hereunder was, at the time so furnished, complete and correct in all material respects, or has been subsequently supplemented
by other written information, reports or other papers or data, to the extent necessary to give in all material respects a true and accurate knowledge of the subject matter in all material respects; provided that such representation shall not apply
to (a) the accuracy of any appraisal or 

  

 30 

 
environmental reports prepared by third parties or legal conclusions or analysis provided by the Borrowers’ and/or the Guarantor’s counsel
(although the Borrowers and the Guarantor have no reason to believe that the Agent and the Lenders may not rely on the accuracy thereof) or (b) budgets, projections and other forward-looking speculative information prepared in good faith by the
Borrowers (except to the extent the related assumptions were when made manifestly unreasonable). 
 §6.14 Trade Name; Place of
Business. Neither of the Borrowers uses any trade name and conducts business under any name other than its actual name set forth in the Loan Documents. The principal place of business of the Borrowers is 11465 Sunset Hills Road, 5th Floor,
Reston, Virginia 20190. 
 §6.15 Regulations T, U and X. No portion of any Loan is to be used for the purpose of purchasing or
carrying any “margin security” or “margin stock” as such terms are used in Regulations T, U and X of the Board of Governors of the Federal Reserve System, 12 C.F.R. Parts 220, 221 and 224. Neither of the Borrowers is engaged, nor
will it engage, principally or as one of its important activities, in the business of extending credit for the purpose of purchasing or carrying any “margin security” or “margin stock” as such terms are used in Regulations T, U
and X of the Board of Governors of the Federal Reserve System, 12 C.F.R. Parts 220, 221 and 224. 
 §6.16 Environmental
Compliance. The Borrowers have taken all commercially reasonable steps to investigate the past and present conditions and usage of the Mortgaged Property and the operations conducted thereon and, except as specifically set forth in the written
environmental site assessment reports of the Environmental Engineer and all other soil, construction, forensic site reports, surveys and assessments relating to and documenting the condition and history of the Mortgaged Property provided to the
Agent on or before the date hereof, make the following representations and warranties: 
 (a) Neither any Borrower nor any operator of the
Mortgaged Property, nor any operations thereon or any prior use thereof, nor the Mortgaged Property, is in violation or alleged violation of any judgment, decree, order, law, license, rule or regulation pertaining to environmental matters, including
without limitation, those arising under any Environmental Law. 
 (b) There are no claims by former owners or occupants of the Mortgaged
Property, or by owners of other properties, or by any other third parties, or by any government agencies, relating to or arising out of the presence of Hazardous Materials on, in, under, or migrating from the Mortgaged Property. 
 (c) (i) No portion of the Mortgaged Property has been used for the handling, processing, storage or disposal of Hazardous Substances, and no underground
tank or other underground storage receptacle for Hazardous Substances is located on any portion of the Mortgaged Property; (ii) in the course of any activities conducted by the Borrowers or the operators of the Mortgaged Property, no Hazardous
Substances have been generated or are being used on the Mortgaged Property; (iii) there has been no past or present releasing, spilling, leaking, pumping, pouring, emitting, emptying, discharging, injecting, escaping, disposing or dumping (a
“Release”) or threatened Release of Hazardous Substances on, upon, into or from the 

  

 31 

 
Mortgaged Property; (iv) there have been no Releases on, upon, from or into any real property in the vicinity of the Mortgaged Property which, through
soil or groundwater contamination or otherwise, may have come to be located on the Mortgaged Property; and (v) any Hazardous Substances that have been generated on the Mortgaged Property have been transported off site in accordance with all
applicable Environmental Laws. 
 (d) None of the Borrowers nor the Mortgaged Property is subject to any applicable Environmental Law
requiring the performance of Hazardous Substances site assessments, or the removal or remediation of Hazardous Substances, or the giving of notice to any governmental agency or the recording or delivery to other Persons of an environmental
disclosure document or statement in each case by virtue of the transactions set forth herein and contemplated hereby, or as a condition to the recording of the Mortgages or to the effectiveness of any other transactions contemplated hereby except
for such matters that shall be complied with as of the Closing Date. 
 (e) There are no existing or closed sanitary landfills, solid waste
disposal sites, or hazardous waste treatment, storage or disposal facilities on or affecting the Mortgaged Property, and the Mortgaged Property has never been used for the disposal of solid waste, trash or debris. 
 (f) Neither of the Borrowers has received notice of any claim by any party that any use, operation, or condition of the Mortgaged Property has caused any
nuisance or any other liability or adverse condition on any other property, nor is there any knowledge of any basis for such a claim. 
 (g)
There are no Hazardous Materials in, on, or under the Mortgaged Property in any concentration or in any condition that would limit, restrict, or otherwise affect any future use of the Mortgaged Property, including without limitation: any residential
use; use of groundwater for any purpose, including drinking water; or grading, excavation, and disposal of soil. 
 (h) The Mortgaged
Property is not subject to any orders, decrees, or notices that would require the owner to take any action under any applicable Environmental Laws, nor are there conditions on the Mortgaged Property that could subject the owner of the Property to
any such order, decree, or notice. 
 (i) The Mortgaged Property contains no wetlands (as that term is defined in the Clean Water Act) except
as shown on the Survey, endangered or threatened species (as those terms are defined in the Endangered Species Act), listed critical habitat or property that is eligible for listing as critical habitat (under the Endangered Species Act), and is not
subject to any other ecological condition or classification that would limit, restrict, or otherwise affect any future use of the Mortgaged Property. 
 §6.17 Subsidiaries; Organizational Structure. Neither of the Borrowers has any Subsidiaries. Schedule 6.17 sets forth the form and jurisdiction of organization of each Person that directly or
indirectly owns an interest in the Borrowers and such Person’s ownership interest therein. No Person owns any legal, equitable or beneficial interest in any of the Persons set forth on Schedule 6.17 except as set forth on such Schedules.

  

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 §6.18 Mortgaged Property. The Borrowers have obtained the approvals, consents, orders,
agreements, authorizations, permits and licenses from applicable governmental authorities or under the terms of any restriction, covenant or easement affecting the portion of the Mortgaged Property on which the Potomac Project is located, to permit
the development of the Potomac Project for use as a mixed use condominium, and all such approvals are in full force and effect. The Mortgaged Property is in compliance with all applicable federal and state law and governmental regulations and any
local ordinances, orders or regulations, including without limitation, laws, regulations and ordinances relating to zoning, building codes, subdivision, fire protection, health, safety, historic preservation and protection, wetlands, tidelands, and
Environmental Laws. None of the Mortgaged Property is subject to any lease, license or other occupancy agreement, except as expressly permitted in §7.12. There is no violation or asserted violation of any agreements or restrictions concerning
the Mortgaged Property or the existing or contemplated use thereof. The Borrowers have no notice, information or knowledge of any change contemplated in any applicable law, ordinance, regulation or restriction, or any judicial, administrative,
governmental or quasi-governmental action, or any action by adjacent landowners, or of any natural or artificial conditions existing upon the Mortgaged Property, which would materially limit or restrict or prevent the contemplated or intended use
and purpose of the Mortgaged Property. All water, sewer, electric, gas, telephone and other utilities necessary for the development, use and operation of the Potomac Project for its current and intended use are installed to the property lines of the
Potomac Project through dedicated public rights-of-way or through perpetual private easements approved by the Agent with respect to which the Mortgage creates a valid and enforceable first lien or security title, and there is sufficient existing
capacity for each of such utilities to provide service to the Potomac Project in accordance with the anticipated use thereof. The streets abutting the Potomac Project are dedicated and accepted public roads, to which the Potomac Project has direct
access by trucks and other motor vehicles and by foot, or are perpetual private ways (with direct access by trucks and other motor vehicles and by foot to public roads) to which the Potomac Project has direct access approved by the Agent and with
respect to which the applicable Mortgage creates a valid and enforceable first lien. All private ways providing access to the Mortgaged Property are zoned in a manner which will permit access to the Mortgaged Property over such ways by trucks and
other commercial, industrial and personal vehicles. There are no unpaid or outstanding real estate or other taxes or assessments on or against any of the Mortgaged Property which are payable by the Borrowers (except only real estate or other taxes
or assessments, that are not yet delinquent or are being protested as permitted by this Agreement). The Mortgaged Property is separately assessed for purposes of real estate tax assessment and payment and is covered by a tax parcel or parcels which
pertain to such Mortgaged Property only and not to any property which is not subject to the Mortgages. There are no pending, or to the knowledge of Borrowers threatened or contemplated, eminent domain proceedings against any of the Mortgaged
Property. None of the Mortgaged Property is now damaged as a result of any fire, explosion, accident, flood or other casualty. Neither of the Borrowers has received any outstanding notice from any insurer or its agent requiring performance of any
work with respect to any of the Mortgaged Property or canceling or threatening to cancel any policy of insurance, and the Mortgaged Property complies with the requirements of all of the Borrowers’ insurance carriers. No Person has any right or
option to acquire the Mortgaged Property or any portion thereof or interest therein except as set forth on Schedule 6.18(c). 
  

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 §6.19 Brokers. No Borrower nor Guarantor has engaged or otherwise dealt with any broker,
finder or similar entity in connection with this Agreement or the Loans contemplated hereunder. 
 §6.20 Other Debt. Neither of
the Borrowers has any Indebtedness other than Indebtedness that will be satisfied on the Closing Date. 
 §6.21 Solvency. As of
the Closing Date and after giving effect to the transactions contemplated by this Agreement and the other Loan Documents, including all Loans made or to be made hereunder, neither any Borrower nor the Guarantor is insolvent on a balance sheet basis
such that the sum of such Person’s assets exceeds the sum of such Person’s liabilities, each Borrower and the Guarantor is able to pay its debts as they become due, and each Borrower and the Guarantor has sufficient capital to carry on its
business. 
 §6.22 No Bankruptcy Filing. None of the Borrowers or Guarantor is contemplating either the filing of a petition by
it under any state or federal bankruptcy or insolvency laws or the liquidation of its assets or property, and the Borrowers have no knowledge of any Person contemplating the filing of any such petition against either Borrower or the Guarantor.

 §6.23 No Fraudulent Intent. Neither the execution and delivery of this Agreement or any of the other Loan Documents nor the
performance of any actions required hereunder or thereunder is being undertaken by any Borrower or the Guarantor with or as a result of any actual intent by any of such Persons to hinder, delay or defraud any entity to which any of such Persons is
now or will hereafter become indebted. 
 §6.24 OFAC. None of the Borrowers or the Guarantor is (or will be) a person with whom
any Lender is restricted from doing business under OFAC (including, those Persons named on OFAC’s Specially Designated and Blocked Persons list) or under any statute, executive order (including the September 24, 2001 Executive Order
Blocking Property and Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism), or other governmental action and is not and shall not engage in any dealings or transactions or otherwise be associated with such
persons. In addition, Borrower hereby agrees to provide to the Lenders any additional information that a Lender deems necessary from time to time in order to ensure compliance with all applicable laws concerning money laundering and similar
activities. 
 §6.25 Transaction in Best Interests of Borrowers; Consideration. The transaction evidenced by this Agreement and
the other Loan Documents is in the best interests of each Borrower. The direct and indirect benefits to inure to the Borrowers pursuant to this Agreement and the other Loan Documents constitute substantially more than “reasonably equivalent
value” (as such term is used in Section 548 of the Bankruptcy Code) and “valuable consideration,” “fair value,” and “fair consideration” (as such terms are used in any applicable state fraudulent conveyance
law), in exchange for the benefits to be provided by the Borrower pursuant to this Agreement and the other Loan Documents, and but for the willingness of Guarantor to guaranty 

  

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the Loans, Borrowers would be unable to obtain the financing contemplated hereunder which financing will enable the Borrowers to have available financing to
refinance existing indebtedness and to conduct and expand their business. Borrowers further acknowledge and agree that Borrowers constitute a single integrated and common enterprise and that each receives a benefit from the availability of credit
under this Agreement. 
 §6.26 Purchase Contracts. Schedule 6.26 hereto sets forth as of the date hereof all of the
Purchase Contracts for the Potomac Project. Potomac has not entered into any other agreements for the sale of the Potomac Units other than the Purchase Contracts on such schedule. Potomac has delivered to the Agent a true, correct and complete copy
of the Purchase Contracts. Each of the Purchase Contracts is in full force and effect and both the Borrower and the purchaser thereunder are in compliance with their respective obligations under such Purchase Contract. Potomac has obtained all
approvals and otherwise satisfied any requirement of any applicable Governmental Authority or Requirement to market and sell the Potomac Units. 
 §6.27 Contribution Agreement. The Borrowers and the Guarantor have executed and delivered the Contribution Agreement, and the Contribution Agreement constitutes the valid and legally binding obligations of such parties
enforceable against them in accordance with the terms and provisions thereof, except as enforceability is limited by bankruptcy, insolvency, reorganization, moratorium or other laws relating to or affecting generally the enforcement of
creditors’ rights and except to the extent that availability of the remedy of specific performance or injunctive relief is subject to the discretion of the court before which any proceeding therefor may be brought. 
 §6.28 Potomac Project. The Potomac Project has been fully completed in accordance with its plans and specifications and has all permits and
approvals for the occupancy thereof, including certificates of occupancy from the Governmental Authority in which the Potomac Project is located, other than those certificates of occupancy for the Potomac Units set forth on Schedule 6.28
hereto, so that Potomac Units may be sold by Potomac for immediate occupancy. No material claim or other request for payment has been made by any purchaser of any Potomac Unit with respect to any express or implied warranty provided to it in
connection with the construction, development or sale of Units at the Potomac Project. 
  

	§7.	AFFIRMATIVE COVENANTS. 

 The Borrowers covenant and agree
that, so long as any Loan or Note is outstanding or any Lender has any obligation to make any Loans: 
 §7.1 Punctual Payment. The
Borrowers will duly and punctually pay or cause to be paid the principal and interest on their respective Loans and all interest and fees provided for in this Agreement, all in accordance with the terms of this Agreement and the Notes, as well as
all other sums owing pursuant to the Loan Documents. 
 §7.2 Maintenance of Office. The Borrowers will maintain their respective
chief executive offices at 11465 Sunset Hills Road, Reston, Virginia 20190, or at such other place in the United States of America as each Borrower shall designate upon thirty (30) days prior written notice to the Agent and the Lenders, where
notices, presentations and demands to or upon the Borrowers in respect of the Loan Documents may be given or made. 
  

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 §7.3 Records and Accounts. The Borrowers will (a) keep true and accurate records and
books of account in which full, true and correct entries will be made in accordance with GAAP and (b) maintain adequate accounts and reserves for all taxes (including income taxes), depreciation and amortization of its properties, contingencies
and other reserves. 
 §7.4 Financial Statements, Certificates and Information. Borrowers will deliver to the Agent with
sufficient copies for each of the Lenders: 
 (a) as soon as practicable, but in any event not later than ninety (90) days after the end
of each fiscal year of each Borrower, the unaudited consolidated balance sheet of Borrowers, at the end of such year, and the related unaudited statements of income, changes in capital and cash flows for such year, each setting forth in comparative
form the figures for the previous fiscal year and all such statements to be in reasonable detail, prepared in accordance with GAAP, together with a certification by the chief financial officer or accounting officer of each Borrower that the
information contained in such financial statements fairly presents the financial position of such Borrower on the date thereof; 
 (b) not
later than thirty (30) days after the end of each month, copies of the unaudited balance sheet of each Borrower as at the end of such month, and the related unaudited statements of income and cash flows for the portion of each Borrower’s
fiscal year then elapsed, all in reasonable detail and prepared in accordance with GAAP, together with a certification by the chief financial officer or accounting officer of each Borrower that the information contained in such financial statements
fairly presents the financial position of such Borrower on the date thereof; 
 (c) within five (5) days of the filing of
Guarantor’s Form 10-K with the SEC, if applicable, but in any event within one hundred five (105) days after the end of each fiscal year of each Guarantor, the audited consolidated balance sheet of Guarantor, at the end of such year, and
the related audited statements of income and debt, changes in capital and cash flows for such year, each setting forth in comparative form the figures for the previous fiscal year and all such statements to be in reasonable detail, prepared in
accordance with GAAP, together with a certification by the chief financial officer or accounting officer of Guarantor that the information contained in such financial statements fairly presents the financial position of Guarantor on the date
thereof, and accompanied by an auditor’s report prepared without qualification by an accounting firm reasonably acceptable to the Agent, a statement of any Distributions made by Guarantor in the fourth calendar quarter, and any other
information the Agent may reasonably require to complete a financial analysis of Guarantor, together with a written statement from such accountants to the effect that they have read a copy of this Agreement, and that, in making the examination
necessary to said certification, they have obtained no knowledge of any Default or Event of Default, or, if such accountants shall have obtained knowledge of any then existing Default or Event of Default they shall disclose in such statement any
such Default or Event of Default; 
  

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 (d) within five (5) days of the filing of Guarantor’s Form 10-Q with the SEC, if applicable,
but in any event within forty-five (45) days after the end of each of the three calendar quarters of each year, an unaudited consolidated balance sheet of the Guarantor as of the end of such quarter for which a Form 10-Q is filed and the
related statement of income and debt and statement of cash flows for such quarter and for the portion of the year ended at the end of such quarter, setting forth in each case in comparative form the figures for the corresponding quarter and the
corresponding portion of the previous year, all in reasonable detail and prepared in accordance with GAAP, together with a certification by the chief financial officer or accounting officer of Guarantor that the information contained in such
financial statements fairly presents the financial position of Guarantor on the date thereof and a statement of any Distributions made by Guarantor in the each of the first three calendar quarters; 
 (e) simultaneously with the delivery of the financial statements referred to in clause (a) above, the statement of all contingent liabilities which
are not reflected in such financial statements or referred to in the notes thereto (including, without limitation, all guaranties, endorsements and other contingent obligations in respect of the indebtedness of others, and obligations to reimburse
the issuer in respect of any letters of credit); 
 (f) promptly after they are filed with the Internal Revenue Service, copies of all annual
federal income tax returns and amendments thereto of each Borrower and each Guarantor; 
 (g) evidence reasonably satisfactory to Agent of
the timely payment of all real estate taxes for the Mortgaged Property; 
 (h) not later than January 31 of each year, a budget and
business plan for the Borrowers and Guarantor for the next calendar year; and 
 (i) simultaneously with the delivery of the financial
statements referred to in subsections (a) and (b) above, a statement (a “Compliance Certificate”) certified by the chief financial officer of Borrower in the form of Exhibit E hereto evidencing compliance with the
covenants contained in §2.6, and (if applicable) reconciliations to reflect changes in GAAP since the Balance Sheet Date; 
 (j) monthly
sales reports for the Potomac Project and the Station View Project, including, without limitation, notices of default under the Purchase Contracts and a schedule of upcoming closings; 
 (k) simultaneously with the delivery of the financial statements referred to in subsections (a) and (b) above, and in the event the Borrower
has actually rented units at Potomac Yard, (i) a Rent Roll for the Potomac Project and a summary thereof in form satisfactory to Agent as of the end of each calendar quarter, together with a listing of each tenant that has taken occupancy of
the Potomac Project during each calendar quarter, (ii) an operating statement for the Potomac Project for each such calendar quarter and year to date (such statements and reports to be in form reasonably satisfactory to Agent), and (iii) a
copy of each Lease or amendment to any Lease entered into with respect to the Potomac Project during such calendar quarter; 
  

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 (l) from time to time such other financial data and information in the possession of any Borrower or the
Guarantor (including without limitation auditors’ management letters, status of litigation or investigations against a Borrower and any settlement discussions relating thereto, property inspection and environmental reports and information as to
zoning and other legal and regulatory changes affecting any Borrower or the Guarantor) as the Agent may reasonably request. 
 Any material to be delivered
pursuant to this §7.4 may be delivered electronically directly to Agent and the Lenders provided that such material is in a format reasonably acceptable to Agent, and such material shall be deemed to have been delivered to Agent and the Lenders
upon Agent’s receipt thereof. Upon the request of Agent, Borrowers shall deliver paper copies thereof to Agent and the Lenders. Borrowers authorize Agent to disseminate any such materials through the use of Intralinks, SyndTrak or any other
electronic information dissemination system, and the Borrowers release Agent and the Lenders from any liability in connection therewith. 
 §7.5 Notices. 
 (a) Defaults. The Borrowers will promptly upon obtaining actual knowledge of same notify the
Agent in writing of the occurrence of any Default or Event of Default, which notice shall describe such occurrence with reasonable specificity and shall state that such notice is a “notice of default”. If any Person shall give any notice
or take any other action in respect of a claimed default (whether or not constituting an Event of Default) under this Agreement or under any note, evidence of indebtedness, indenture or other obligation to which or with respect to which any Borrower
or the Guarantor is a party or obligor, whether as principal or surety, and such default would permit the holder of such note or obligation or other evidence of indebtedness to accelerate the maturity thereof, which acceleration would either cause a
Default or have a Material Adverse Effect, the Borrowers shall forthwith give written notice thereof to the Agent and each of the Lenders, describing the notice or action and the nature of the claimed default. 
 (b) Environmental Events. The Borrowers will give notice to the Agent within five (5) Business Days of becoming aware of (i) any
potential or known Release, or threat of Release, of any Hazardous Substances in violation of any applicable Environmental Law; (ii) any violation of any Environmental Law that any Borrower or the Guarantor reports in writing or is reportable
by such Person in writing (or for which any written report supplemental to any oral report is made) to any federal, state or local environmental agency or (iii) any inquiry, proceeding, investigation, or other action, including a notice from
any agency of potential environmental liability, of any federal, state or local environmental agency or board, that in either case involves (A) any Mortgaged Property, or (B) or the Agent’s liens or security title on the Collateral
pursuant to the Security Documents. 
 (c) Notification of Claims Against Collateral. The Borrowers will give notice to the Agent in
writing within five (5) Business Days of becoming aware of any material setoff, claims (including, with respect to the Mortgaged Property, environmental claims), withholdings or other defenses to which any of the Collateral, or the rights of
the Agent or the Lenders with respect to the Collateral, are subject. 
  

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 (d) Notice of Litigation and Judgments. The Borrowers will give notice to the Agent in writing
within five (5) Business Days of becoming aware of any litigation or proceedings threatened in writing or any pending litigation and proceedings affecting any Borrower or the Guarantor or to which any Borrower or the Guarantor is or is to
become a party involving an uninsured claim against any Borrower or the Guarantor that could either cause a Default or could reasonably be expected to have a Material Adverse Effect and stating the nature and status of such litigation or
proceedings. The Borrowers and the Guarantor will give notice to the Agent, in writing, in form and detail reasonably satisfactory to the Agent and each of the Lenders, within ten (10) days of any judgment not covered by insurance, whether
final or otherwise, against any Borrower or the Guarantor in an amount in excess of $100,000.00. 
 (e) ERISA. The Borrowers will give
notice to the Agent within five (5) Business Days after any Borrower or any ERISA Affiliate (i) gives or is required to give notice to the PBGC of any “reportable event” (as defined in §4043 of ERISA) with respect to any
Guaranteed Pension Plan, Multiemployer Plan or Employee Benefit Plan, or knows that the plan administrator of any such plan has given or is required to give notice of any such reportable event; (ii) gives a copy of any notice of complete or
partial withdrawal liability under Title IV of ERISA; or (iii) receives any notice from the PBGC under Title IV or ERISA of an intent to terminate or appoint a trustee to administer any such plan. 
 (f) Notification of Lenders. Within five (5) Business Days after receiving any notice under this §7.5, the Agent will forward a copy
thereof to each of the Lenders, together with copies of any certificates or other written information that accompanied such notice. 
 §7.6 Existence. Each Borrower will preserve and keep in full force and effect its corporate or limited liability company existence, and will cause the Guarantor to preserve and keep in full force and effect its legal existence
in the jurisdiction of its incorporation or formation. The Borrowers will preserve and keep in full force all of their respective rights and franchises, the preservation of which is necessary to the conduct of their business. 
 §7.7 Insurance; Condemnation. 
 (a) The Borrowers will, at their expense, procure and maintain for the benefit of the Borrowers and the Agent, insurance policies issued by such insurance companies, in such amounts, in such form and substance, and with such coverages,
endorsements, deductibles and expiration dates as are acceptable to the Agent, providing the following types of insurance covering the Mortgaged Property: 
 (i) “All Risks” property insurance (including broad form flood, broad form earthquake, and comprehensive boiler and machinery coverages) on any improvement and the contents therein of the Borrowers in an
amount not less than one hundred percent (100%) of the full replacement cost of such improvements and the contents therein of the Borrowers or such other amount as the Agent may approve, with deductibles not to exceed $10,000.00 for any one
occurrence, with a replacement cost coverage endorsement, an agreed amount endorsement, and, if requested by the Agent, a contingent liability from operation of building laws endorsement in such amounts as the Agent may require. Full replacement
cost as used herein means the cost of replacing such improvements (exclusive of the cost of excavations, foundations and footings below the lowest basement floor) and the contents therein of the Borrowers without deduction for physical depreciation
thereof; 
  

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 (ii) During the course of construction or repair of any improvements, the insurance required by clause
(i) above shall be written on a builders risk, completed value, non-reporting form, meeting all of the terms required by clause (i) above, covering the total value of work performed, materials, equipment, machinery and supplies furnished,
existing structures, and temporary structures being erected on or near the Mortgaged Property, including coverage against collapse and damage during transit or while being stored off-site, and containing a soft costs (including loss of rents)
coverage endorsement and a permission to occupy endorsement; 
 (iii) Flood insurance if at any time any improvements are located in any
federally designated “special hazard area” (including any area having special flood, mudslide and/or flood-related erosion hazards, and shown on a Flood Hazard Boundary Map or a Flood Insurance Rate Map published by the Federal Emergency
Management Agency as Zone A, AO, Al-30, AE, A99, AH, VO, V1-30, VE, V, M or E) and the broad form flood coverage required by clause (i) above is not available, in an amount equal to not less than $25,000,000 or the maximum amount then available
under the National Flood Insurance Program; 
 (iv) Commercial general liability insurance against claims for personal injury (to include,
without limitation, bodily injury and personal and advertising injury) and property damage liability, all on an occurrence basis, if commercially available, with such coverages as the Agent may reasonably request (including, without limitation,
contractual liability coverage, completed operations coverage for a period of two (2) years following completion of construction of any improvements on the Mortgaged Property, and coverages equivalent to an ISO broad form endorsement), with a
general aggregate limit of not less than $2,000,000.00, a completed operations aggregate limit of not less than $2,000,000.00, and a combined single “per occurrence” limit of not less than $1,000,000.00 for bodily injury, property damage
and medical payments; 
 (v) During the course of construction or repair of any improvements on the Mortgaged Property, owner’s
contingent or protective liability insurance covering claims not covered by or under the terms or provisions of the insurance required by clause (iv) above; 
 (vi) Employer’s liability insurance with respect to the Borrowers’ employees; 
 (vii) Umbrella
liability insurance with limits of not less than $1,000,000.00 to be in excess of the limits of the insurance required by clauses (iv), (v) and (vi) above, with coverage at least as broad as the primary coverages of the insurance required
by clauses (iv), (v) and (vi) above, with any excess liability insurance to be at least as broad as the coverages of the lead umbrella policy. All such policies shall be endorsed to provide defense coverage obligations; 
  

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 (viii) Workers’ compensation insurance for all employees of the Borrowers engaged on or with
respect to the Mortgaged Property with limits as required by applicable law; and 
 (ix) Such other insurance in such form and in such
amounts as may from time to time be reasonably required by the Agent against other insurable hazards and casualties which at the time are commonly insured against in the case of properties of similar character and location to the Mortgaged Property.

 The Borrowers shall pay all premiums on insurance policies. The insurance policies with respect to the Mortgaged Property provided for in
clauses (iv), (v) and (vii) above shall name the Agent and each Lender as an additional insured and shall contain a cross liability/severability endorsement. The insurance policies provided for in clauses (i), (ii) and
(iii) above shall name the Agent as mortgagee and loss payee, shall be first payable in case of loss to the Agent, and shall contain mortgage clauses and lender’s loss payable endorsements in form and substance acceptable to the Agent. The
Borrowers shall deliver duplicate originals or certified copies of all such policies to the Agent, and the Borrowers shall promptly furnish to the Agent all renewal notices and evidence that all premiums or portions thereof then due and payable have
been paid. At least thirty (30) days prior to the expiration date of the policies, the Borrowers shall deliver to the Agent evidence of continued coverage, including a certificate of insurance, as may be satisfactory to the Agent. 

(b) All policies of insurance required by this Agreement shall contain clauses or endorsements to the effect that (i) no act or omission of the
Borrowers or anyone acting for the Borrowers (including, without limitation, any representations made in the procurement of such insurance), which might otherwise result in a forfeiture of such insurance or any part thereof, no occupancy or use of
the Mortgaged Property for purposes more hazardous then permitted by the terms of the policy, and no foreclosure or any other change in title to the Mortgaged Property or any part thereof, shall affect the validity or enforceability of such
insurance insofar as the Agent is concerned, (ii) the insurer waives any right of set off, counterclaim, subrogation, or any deduction in respect of any liability of the Borrowers and the Agent, (iii) such insurance is primary and without
right of contribution from any other insurance which may be available, (iv) such policies shall not be modified, canceled or terminated prior to the scheduled expiration date thereof without the insurer thereunder giving at least thirty
(30) days prior written notice to the Agent by certified or registered mail, and (v) that the Agent or the Lenders shall not be liable for any premiums thereon or subject to any assessments thereunder, and shall in all events be in amounts
sufficient to avoid any coinsurance liability. 
 (c) The insurance required by this Agreement may be effected through a blanket policy or
policies covering additional locations and property of the Borrowers and other Persons not included in the Mortgage Property, provided that such blanket policy or policies comply with all of the terms and provisions of this §7.7 and
contain endorsements or clauses assuring that any claim recovery will not be less than that which a separate policy would provide, including, without limitation, a priority claim provision with respect to property insurance and an aggregate limits
of insurance endorsement in the case of liability insurance. 
  

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 (d) All policies of insurance required by this Agreement shall be issued by companies licensed to do
business in the State where the policy is issued and also in the States where the Mortgaged Property is located and having a rating in Best’s Key Rating Guide of at least “A” and a financial size category of at least “X.”

 (e) Neither of the Borrowers shall carry separate insurance, concurrent in kind or form or contributing in the event of loss, with any
insurance required under this Agreement unless such insurance complies with the terms and provisions of this §7.7. 
 (f) In the event
of any loss or damage to the Mortgaged Property, a Borrower shall give prompt written notice to the insurance carrier and the Agent. Each Borrower hereby irrevocably authorizes and empowers the Agent, at the Agent’s option and in the
Agent’s sole discretion or at the request of the Majority Lenders in their sole discretion, as its attorney in fact, to make proof of such loss, to adjust and compromise any claim under insurance policies, to appear in and prosecute any action
arising from such insurance policies, to collect and receive Insurance Proceeds and Condemnation Proceeds, and to deduct therefrom the Agent’s reasonable expenses incurred in the collection of such Insurance Proceeds; provided,
however, that so long as no Default or Event of Default has occurred and is continuing and so long as such Borrower shall in good faith diligently pursue such claim, such Borrower may make proof of loss and appear in any proceedings or
negotiations with respect to the adjustment of such claim, except that such Borrower may not settle, adjust or compromise any such claim without the prior written consent of the Agent, which consent shall not be unreasonably withheld or delayed;
provided, further, that such Borrower may make proof of loss and adjust and compromise any claim under casualty insurance policies which is in an amount less than $500,000.00 so long as no Default or Event of Default has occurred and
is continuing and so long as such Borrower shall in good faith diligently pursue such claim. The Borrowers further authorize the Agent, at the Agent’s option, to (i) apply the balance of such Insurance Proceeds and Condemnation Proceeds to
the payment of the Obligations (and among the Loans as Agent determines in its sole discretion) whether or not then due, or (ii) if the Agent shall require the reconstruction or repair of the Mortgaged Property, to hold the balance of such
proceeds as trustee to be used to pay taxes, charges, sewer use fees, water rates and assessments which may be imposed on the Mortgaged Property and the Obligations (and among the Loans as Agent determines in its sole discretion) as they become due
during the course of reconstruction or repair of the Mortgaged Property and to reimburse such Borrower, in accordance with such terms and conditions as the Agent may prescribe, for the costs of reconstruction or repair of the Mortgaged Property, and
upon completion of such reconstruction or repair to apply any excess to the payment of the Obligations (and among the Loans as Agent determines in its sole discretion). 
 §7.8 Liens. Neither Borrower will suffer or permit any mechanics’ lien claims to be filed or otherwise asserted against the Potomac Project or the Station View Project, and will promptly discharge the
same in case of the filing of any claims for lien or proceedings for the enforcement thereof, provided, however, that such Borrower shall have the right to contest in good faith and with reasonable diligence the validity of any such lien or claim
provided that such Borrower posts a statutory lien bond which removes such lien from title to the Potomac Project or Station View Project, as applicable, within twenty (20) days of written notice by Agent to such Borrower of the existence of
the lien; provided, however, such time period shall be extended to sixty (60) days in the event such Borrower delivers to Agent a bond, letter of credit, or other security reasonably acceptable to Agent. 
  

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 §7.9 Inspection of Properties and Books. The Borrowers will, and will cause the Guarantor to,
permit the Agent and the Lenders, upon reasonable prior notice, to visit and inspect any of the properties of the Borrowers and the Guarantor, to examine the books of account of such Person (and to make copies thereof and extracts therefrom) and to
discuss the affairs, finances and accounts of such Person with, and to be advised as to the same by, their respective officers, partners or members, all at such reasonable times and intervals as the Agent or any Lender may reasonably request. The
Lenders shall use good faith efforts to coordinate such visits and inspections so as to minimize the interference with and disruption to the normal business operations of the Borrowers and the Guarantor. 
 §7.10 Compliance with Laws, Contracts, Licenses, and Permits. The Borrowers will comply with (i) all applicable laws and regulations now
or hereafter in effect wherever its business is conducted, including all Environmental Laws, (ii) the provisions of its corporate charter, partnership agreement, limited liability company agreement or declaration of trust, as the case may be,
and other charter documents and bylaws, (iii) all agreements and instruments to which it is a party or by which it or any of its properties may be bound, (iv) all applicable decrees, orders, and judgments, and (v) all licenses and
permits relating to the Mortgaged Property or required by applicable laws and regulations for the conduct of its business or the ownership, use, development, sale or operation of its properties. Borrowers shall develop and implement such programs,
policies and procedures as are necessary to comply with the Patriot Act and shall promptly advise Agent in writing in the event that a Borrower shall determine that any investors in such Borrower are in violation of such act. 
 §7.11 Further Assurances. The Borrowers will, and will cause the Guarantor to, cooperate with the Agent and the Lenders and execute such
further instruments and documents as the Lenders or the Agent shall reasonably request to carry out to their satisfaction the transactions contemplated by this Agreement and the other Loan Documents. 
 §7.12 Leases. The Borrowers shall not enter into any lease, license or other occupancy agreement for any of the Mortgaged Property without
the prior written consent of Agent other than those agreements consistent with the leasing parameters for the Potomac Project set forth on Schedule 7.12 attached hereto. Any rent or other income received during the term of the Loan by or on
behalf of Potomac Yard in connection with such agreements shall be used solely for the payment of principal, interest or other charges due in connection with the Loans, amounts payable with respect to the operation of the Potomac Project, or the
increasing of the Interest Holdback in accordance with §9; it being acknowledged and agreed by Borrowers that no such amounts may be distributed by Potomac Yard. 
 §7.13 Plan Assets. The Borrowers will do, or cause to be done, all things necessary to ensure that none of the Mortgaged Property nor any of their other assets will be deemed to be Plan Assets at any time.

  

 43 

 §7.14 Single Purpose Entity Requirements. The Borrowers hereby represent, warrant and
covenant, as of the date hereof and until such time as the Obligations are paid in full and the obligation to make further Loans has terminated, as follows: 
 (a) Obligation to be a Single Purpose Entity. 
 (i) Each Borrower has been a Single Purpose Entity at
all times since its formation and will continue to be a Single Purpose Entity at all times until the Loan has been paid in full and the Lenders have no further obligations to make Loans. 
 (ii) The “single purpose entity” provisions included in the organizational documents of each Borrower shall not, without Agent’s prior
written consent, be amended, rescinded or otherwise revoked until the Loan has been paid in full and the Lenders have no obligation to make Loans. 
 (b) Definition of Single Purpose Entity. 
 (i) General Criteria. With respect to the Borrowers, a “Single
Purpose Entity” means a corporation, limited partnership or limited liability company which, at all times since its formation and thereafter: 
 (A) shall not engage in any business or activity, other than with respect to each Borrower, the ownership, operation, development and sale of the Mortgaged Property and activities incidental thereto; 
 (B) shall not acquire or own any assets other than with respect to the Borrowers, the Mortgaged Property and such incidental personal property as may be
necessary for the development and sale of the Mortgaged Property; 
 (C) [Intentionally Omitted.]; 
 (D) shall preserve its existence as an entity duly organized, validly existing and in good standing (if applicable) under the laws of the jurisdiction
of its formation or organization; 
 (E) shall not merge or consolidate with any other Person; 
 (F) shall not take, any action to dissolve, wind-up, terminate or liquidate in whole or in part; to sell, transfer or otherwise dispose of all or
substantially all of its assets; to change its legal structure; transfer or permit the direct or indirect transfer of any partnership, membership or other Equity Interests, as applicable; issue additional partnership, membership or other Equity
Interests, as applicable; or seek to accomplish any of the foregoing; 
 (G) shall not, without the unanimous written consent of all a
Borrower’s partners, members, or shareholders, as applicable, and the written consent of one hundred percent (100%) of the members of the board of directors or board of managers in the case of a single member limited liability company:
(1) file or consent to the filing of any petition, either voluntary or involuntary, to take advantage of any applicable insolvency, bankruptcy, liquidation or reorganization statute; (2) seek or consent to the appointment of a receiver,
liquidator or any similar official; or (3) make an assignment for the benefit of creditors; 
  

 44 

 (H) shall not amend or restate its organizational documents if such change would adversely impact the
requirements set forth in this §7.14; 
 (I) shall not own any Subsidiary or make any investment in, any other Person; 
 (J) shall not commingle its assets with the assets of any other Person; 
 (K) shall not, incur any Indebtedness, other than the Loan and customary unsecured trade payables incurred in the ordinary course of owning and operating the Mortgaged Property provided the same are not evidenced by a
promissory note, do not (as to each Borrower) exceed, in the aggregate, at any time a maximum amount of two percent (2%) of the outstanding principal amount of the Loan to such Borrower and are paid within sixty (60) days of the date
incurred; 
 (L) shall maintain its records, books of account, bank accounts, financial statements, accounting records and other entity
documents separate and apart from those of any other Person; 
 (M) shall only enter into any contract or agreement with any general
partner, member, shareholder, principal or Affiliate of any Borrower, or any general partner, member, principal or Affiliate thereof, upon terms and conditions that are intrinsically fair and substantially similar to those that would be available on
an arms-length basis with third parties; 
 (N) shall not maintain its assets in such a manner that it will be costly or difficult to
segregate, ascertain or identify its individual assets from those of any other Person, other than the obligations of the Borrowers under the Loan; 
 (O) shall not assume or guaranty the debts of any other Person, hold itself out to be responsible for the debts of another Person, or otherwise pledge its assets for the benefit of any other Person or hold out its credit as being available
to satisfy the obligations of any other Person (other than the obligations of the other Borrower); 
 (P) shall not make any loans or
advances to any other Person; 
 (Q) shall file its own tax returns as required under federal and state law; 
 (R) shall hold itself out to the public as a legal entity separate and distinct from any other Person and conduct its business solely in its own name
and shall correct any known misunderstanding regarding its separate identity; 
  

 45 

 (S) shall maintain adequate capital for the normal obligations reasonably foreseeable in a business of
its size and character and in light of its contemplated business operations; 
 (T) shall allocate shared expenses (including, without
limitation, shared office space); 
 (U) shall pay its own liabilities (including, without limitation, salaries of its own employees) from
its own funds; and 
 (V) shall not acquire obligations or securities of its partners, members or shareholders, as applicable. 

§7.15 Potomac Project. 
 (a)
Potomac shall have a period of twelve (12) months from the date of this Agreement to obtain the certificates of occupancy for the Potomac Units described on Schedule 6.28 hereto. 
 (b) In the event that Potomac shall be required to pay any amounts that become due in connection with the General Contractor Dispute or otherwise in
connection with the completion of the Potomac Project, then such amounts shall be paid from funds of the Borrowers or the Guarantor, but in no event shall be paid from the Holdbacks or from Net Sales Proceeds. 
  

	§8.	NEGATIVE COVENANTS. 

 The Borrowers covenant and agree
that, so long as any Loan or Note is outstanding or any of the Lenders has any obligation to make any Loans: 
 §8.1 Restrictions on
Indebtedness. Neither Borrower will create, incur, assume, guarantee or be or remain liable, contingently or otherwise, with respect to any Indebtedness other than: 
 (a) Indebtedness to the Lenders and Agent arising under any of the Loan Documents; 
 (b) current liabilities
of such Persons incurred in the ordinary course of business but not incurred through (i) the borrowing of money, or (ii) the obtaining of credit except for credit on an open account basis customarily extended and in fact extended in
connection with normal purchases of goods and services; 
 (c) Indebtedness in respect of taxes, assessments, governmental charges or levies
and claims for labor, materials and supplies to the extent that payment therefor shall not at the time be required to be made in accordance with the provisions of §7.8; 
 (d) Indebtedness in respect of judgments or awards only to the extent, for the period and in an amount not resulting in a Default; and 
  

 46 

 (e) endorsements for collection, deposit or negotiation and warranties of products or services, in each
case incurred in the ordinary course of business. 
 §8.2 Restrictions on Liens, Etc. The Borrowers will not (a) create or
incur or suffer to be created or incurred or to exist any lien, security title, encumbrance, mortgage, pledge, negative pledge, charge, restriction or other security interest of any kind upon any of their respective property or assets of any
character whether now owned or hereafter acquired, or upon the income or profits therefrom; (b) transfer any of their property or assets or the income or profits therefrom for the purpose of subjecting the same to the payment of Indebtedness or
performance of any other obligation in priority to payment of its general creditors; (c) acquire, or agree or have an option to acquire, any property or assets upon conditional sale or other title retention or purchase money security agreement,
device or arrangement; (d) suffer to exist for a period of more than sixty (60) days after the same shall have been incurred any Indebtedness or claim or demand against any of them that if unpaid could by law or upon bankruptcy or
insolvency, or otherwise, be given any priority whatsoever over any of their general creditors; (e) sell, assign, pledge or otherwise transfer any accounts, contract rights, general intangibles, chattel paper or instruments, with or without
recourse; or (f) incur or maintain any obligation to any holder of Indebtedness of any of such Persons which prohibits the creation or maintenance of any lien securing the Obligations (collectively, “Liens”); provided that
notwithstanding anything to the contrary contained herein, the Borrowers may create or incur or suffer to be created or incurred or to exist: 
 (i) Liens on properties to secure taxes, assessments and other governmental charges (excluding any Lien imposed pursuant to any of the provisions of ERISA or pursuant to any Environmental Laws) or claims for labor, material or supplies in
respect of obligations not then delinquent or not otherwise required to be paid or discharged under the terms of this Agreement or any of the other Loan Documents; 
 (ii) deposits or pledges made in connection with, or to secure payment of, workers’ compensation, unemployment insurance, old age pensions or other social security obligations; 
 (iii) Liens in favor of the Agent and the Lenders under the Loan Documents to secure the Obligations; and 
 (iv) Liens and encumbrances on a Mortgaged Property expressly permitted under the terms of the Mortgage relating thereto. 
 §8.3 Merger, Consolidation. None of the Borrowers or Guarantor nor any member, partner or shareholder thereof shall become a party to any
dissolution, liquidation, disposition of all or substantially all of its assets or business, merger, reorganization, consolidation or other business combination or agree to effect any asset acquisition, stock acquisition or other acquisition
individually or in a series of transactions which may have a similar effect as any of the foregoing, in each case without the prior written consent of the Majority Lenders. 
 §8.4 Sale and Leaseback. Neither Borrower will enter into any arrangement whereby such Borrower shall sell or transfer any of the Mortgaged
Property owned by it in order that then 

  

 47 

 
or thereafter such Borrower shall lease back such Mortgaged Property; provided, however, Potomac may, subject to the release requirements of §5.2, sell
to the Guarantor or any Affiliate such number of Potomac Units that are necessary for Borrowers to meet the mandatory prepayment requirements set forth in §3.3 provided that the sales price of such Potomac Units is the greater of (i) the
minimum release price for such Unit as set forth on Schedule 8.8 hereto, or (ii) an amount per square foot equal to the average price per square foot of the last ten (10) Potomac Units sold by Potomac. 
 §8.5 Compliance with Environmental Laws. Neither Borrower will, nor will either of them permit any other Person to, do any of the following:
(a) use any of the Mortgaged Property or any portion thereof as a facility for the handling, processing, storage or disposal of Hazardous Substances, solid waste, trash or debris, except for small quantities of Hazardous Substances used in the
ordinary course of business and in compliance with all applicable Environmental Laws, (b) cause or permit to be located on any of the Mortgaged Property any underground tank or other underground storage receptacle for Hazardous Substances,
(c) generate any Hazardous Substances on any of the Mortgaged Property except in full compliance with Environmental Laws, (d) conduct any activity at the Mortgaged Property or use the Mortgaged Property in any manner that could reasonably
be contemplated to cause a Release of Hazardous Substances on, upon or into the Mortgaged Property or any surrounding properties or any threatened Release of Hazardous Substances which might give rise to liability under CERCLA or any other
Environmental Law, or (e) directly or indirectly transport or arrange for the transport of any Hazardous Substances (except in compliance with all Environmental Laws). 
 The Borrowers shall: 
 (i) in the event of
any change in Environmental Laws governing the assessment, release or removal of Hazardous Substances, take all reasonable action (including, without limitation, the conducting of engineering tests at the sole expense of a Borrower) to confirm that
no Hazardous Substances are or ever were Released or disposed of on the Mortgaged Property in violation of applicable Environmental Laws; and 
 (ii) if any Release or disposal of Hazardous Substances which any Person may be legally obligated to contain, correct or otherwise remediate or which may otherwise expose it to liability shall occur or shall have occurred on the Mortgaged
Property (including without limitation any such Release or disposal occurring prior to the acquisition of such Mortgaged Property by such Borrower), a Borrower shall, after obtaining knowledge thereof, cause the prompt containment and removal of
such Hazardous Substances and remediation of the Mortgaged Property in full compliance with all applicable Environmental Laws. The Agent may engage its own Environmental Engineer to review the environmental assessments and the compliance with the
covenants contained herein. 
 At any time after an Event of Default shall have occurred hereunder the Agent may at its election (and will at
the request of the Majority Lenders) obtain such environmental assessments of any or all of the Mortgaged Property prepared by an Environmental Engineer as may be necessary or advisable for the purpose of evaluating or confirming (i) whether
any Hazardous Substances are present in the soil or water at or adjacent to the Mortgaged Property and (ii) whether the use, development and operation of the Mortgaged Property complies with all 

  

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Environmental Laws to the extent required by the Loan Documents. Additionally, at any time that the Agent or the Majority Lenders shall have reasonable
grounds to believe that a Release or threatened Release of Hazardous Substances which any Person may be legally obligated to contain, correct or otherwise remediate or which otherwise may expose such Person to liability may have occurred, relating
to the Mortgaged Property, or that any of the Mortgaged Property is not in compliance with Environmental Laws to the extent required by the Loan Documents, a Borrower shall promptly upon the request of Agent obtain and deliver to Agent such
environmental assessments of the Mortgaged Property prepared by an Environmental Engineer as may be necessary or advisable for the purpose of evaluating or confirming (i) whether any Hazardous Substances are present in the soil or water at or
adjacent to the Mortgaged Property and (ii) whether the use and operation of the Mortgaged Property comply with all Environmental Laws to the extent required by the Loan Documents. Environmental assessments may include detailed visual
inspections of the Mortgaged Property including, without limitation, any and all storage areas, storage tanks, drains, dry wells and leaching areas, and the taking of soil samples, as well as such other investigations or analyses as are reasonably
necessary or appropriate for a complete determination of the compliance of the Mortgaged Property and the use and operation thereof with all applicable Environmental Laws. All environmental assessments contemplated by this §8.5 shall be at the
sole cost and expense of a Borrower. 
 §8.6 Distributions. Provided no Default or Event of Default has occurred or is
continuing, or would arise as a result thereof, the Borrowers shall be permitted to make Distributions solely for (i) reimbursement of costs incurred in connection with the Mortgaged Properties, and (ii) once the percentage of Net Sales
Proceeds applied by Agent reduces to less than one hundred percent (100%) as set forth in §5.2(d), then any excess Net Sale Proceeds may be distributed to Guarantor. Notwithstanding the foregoing, Borrowers shall not make any Distributions
until all amounts then due and payable to Agent and the Lenders under the Loan Documents have been paid, including, without limitation, the mandatory prepayment requirement set forth in §3.3, and all amounts then payable with respect to the
development, ownership, sale and operation of the Station View Project and the Potomac Project have been paid. 
 §8.7 Zoning and
Contract Changes and Compliance. Neither Borrower shall initiate or consent to any zoning reclassification of any of the Mortgaged Property or seek any variance under any existing zoning ordinance or use or permit the use of the Mortgaged
Property in any manner that could result in such use becoming a non-conforming use under or violating or not being in compliance with any zoning ordinance or any other applicable land use law, rule or regulation and any agreements applicable to the
Mortgaged Property. Neither Borrower shall initiate any change in any laws, requirements of governmental authorities or obligations created by private contracts which now or hereafter may affect the Mortgaged Property. The Borrowers will give
all such notices to, duly perform and comply with and otherwise take all such other actions with respect to, any applicable governmental authority as may be required under laws, regulations, approvals, permits or agreements to maintain all
entitlements, permits and other approvals with respect to the Mortgaged Property in full force and effect. 
  

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 §8.8 Contracts. 
 (a) The Borrowers will take or cause to be taken all commercially reasonable steps to market the Units. Borrowers shall use the standard form of purchase contract approved by Agent in its reasonable discretion, with
such changes thereto as Borrowers may make in the ordinary course of business, provided that the purchase price for any Unit shall not, without the prior written consent of Agent, be less than the minimum release price for such Unit as set forth on
Schedule 8.8 hereto. 
 (b) The Borrowers shall not modify, amend, terminate or cancel any of the Purchase Contracts without the prior
written approval of the Agent, which consent shall not be unreasonably withheld. The Borrowers shall perform each and every of their respective obligations under the Purchase Contracts. The Borrowers will not, directly or indirectly, waive or agree
or consent to the waiver of, the performance of any material obligations of any other party under the Purchase Contracts. The Borrowers will not do any act or allow any condition to occur which would relieve any purchaser of its obligation to
purchase under the Purchase Contracts. The Borrowers shall undertake reasonable steps, as determined in the reasonable discretion of Potomac Yard, to compel performance by each other parties to the Purchase Contracts of all obligations, covenants
and agreements by such other party to be performed thereunder. Any deposit or other monies forfeited by any buyer under the Purchase Contracts shall within two (2) Business Days be applied to reduce the Outstanding Potomac Loans or Station View
Loans, as applicable. Notwithstanding anything herein to the contrary, Borrowers shall not be deemed to have breached the covenants contained in this §8.8 in the event that a buyer cancels or terminates a Purchase Contact. Borrowers shall
comply with all applicable laws, rules and regulations governing the retention of the deposits made under the Purchase Contracts. Borrowers shall assign to Agent all of Borrowers’ right, title and interest in and to such deposits to be held in
accordance with applicable law. Agent shall have no responsibility or liability for the security or safety of such deposits so held by Borrowers. If applicable laws require that earnest money deposits made by contract purchasers be held in an
institution in the Commonwealth of Virginia, then Borrowers shall within (15) Business Days from the date Agent delivers a draft to Borrowers provide to Agent a written and signed account control agreement or similar agreement in form and
substance reasonably satisfactory from the depository holding such deposits providing that until the Loan is paid in full, any and all such deposits which are payable to a borrower as a result of a contract purchaser’s default or forfeiture as
permitted by the Purchase Contract, by law, or by a final judgment, arbitration award or settlement and release agreement, thereof shall be paid directly to Agent. 
 §8.9 Restrictions on Easements, Covenants and Restrictions. The Borrowers will not create or suffer to be created or to exist any easement, right of way, restriction, covenant, condition, license or other
right in favor of any Person which affects or might affect title to the Mortgaged Property or the development, sale or use of the Mortgaged Property or any part thereof without (i) submitting to the Agent the proposed instrument creating such
easement, right of way, covenant, condition, license or other right, accompanied by a survey showing the exact proposed location thereof and such other information as the Agent may reasonably request, and (ii) obtaining the prior approval of
the Agent, which approval shall not be unreasonably withheld. 
  

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	§9.	HOLDBACKS. 

 (a) The Loan includes an initial interest
holdback of $1,000,000, which initial holdback may be increased as the result of the application of release proceeds as set forth in §5.2(d) to an amount not greater than seven and one-half percent (7.5%) of the total amount of Potomac
Loans which may be borrowed by Potomac including the Interest Holdback (the “Interest Holdback”). In the event release proceeds are applied to the Interest Holdback as set forth in §5.2(d), then such application shall be deemed to be
a repayment of the Potomac Loan and the Commitment shall be reinstated for such amounts actually received by Agent; provided, however, that in no event shall the Commitment ever exceed $40,391,200. In the event that the amount of the Interest
Holdback exceeds seven and one-half percent (7.5%) of the total amount of Potomac Loans which may be borrowed by Potomac including the Interest Holdback, then such excess shall no longer be part of the Interest Holdback and the Commitment shall
be accordingly permanently reduced. Borrowers may request a disbursement from the Interest Holdback pursuant to §2.3 to be applied against the interest due on the Outstanding Loans. By execution hereof, each Borrower irrevocably authorizes the
Agent, without the necessity of any further authorization, to cause the Lenders to disburse directly to itself for the account of the Lenders rather than to a Borrower out of the Interest Holdback such sums as are necessary to pay, on a monthly
basis, accrued interest on the Loans (and any amount so advanced by the Lenders without the submission by a Borrower of a Loan Request shall be Base Rate Loans). Upon disbursement, the amount that is disbursed shall be disbursed pro rata by
the Lenders and shall be added to the then outstanding principal sum of the Loans and shall bear interest at the rate provided for in this Agreement. Upon the occurrence of an Event of Default under this Agreement or any other Loan Document, the
Agent shall have the right but not the obligation to continue to cause disbursements of monthly interest installments from the Interest Holdback. Establishment of the Interest Holdback shall in no way relieve the Borrowers of their obligation to
make interest payments. Upon the occurrence of a Default or an Event of Default under any Loan Document, the Agent may, at its option, cease making any further disbursement from the Interest Holdback. 
 (b) Intentionally Omitted. 
  

	§10.	CLOSING CONDITIONS. 

 The obligation of the Lenders to make
the Loans shall be subject to the satisfaction of the following conditions precedent: 
 §10.1 Loan Documents. Each of the Loan
Documents shall have been duly executed and delivered by the respective parties thereto and shall be in full force and effect. The Agent shall have received a fully executed counterpart of each such document, except that each Lender shall have
received the fully executed original of its Note. 
 §10.2 Certified Copies of Organizational Documents. The Agent shall have
received from the Borrowers and the Guarantor a copy, certified as of a recent date by the appropriate officer of each State in which such Person is organized and in which the Mortgaged Property is located and a duly authorized officer, partner or
member of such Person, as applicable, to be true and complete, of the partnership agreement, corporate charter or operating agreement and/or other organizational agreements of such Borrower and the Guarantor, as applicable, and its qualification to
do business, as applicable, as in effect on such date of certification. 
  

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 §10.3 Resolutions. All action on the part of the Borrowers and the Guarantor necessary for
the valid execution, delivery and performance by such Person of this Agreement and the other Loan Documents to which such Person is or is to become a party shall have been duly and effectively taken, and evidence thereof reasonably satisfactory to
the Agent shall have been provided to the Agent. 
 §10.4 Incumbency Certificate; Authorized Signers. Unless covered by the
resolutions described in §10.3, the Agent shall have received from each Borrower and the Guarantor that is not an individual an incumbency certificate, dated as of the Closing Date, signed by a duly authorized officer of such Person and giving
the name and bearing a specimen signature of each individual who shall be authorized to sign, in the name and on behalf of such Person, each of the Loan Documents to which such Person is or is to become a party. The Agent shall have also received
from each Borrower a certificate, dated as of the Closing Date, signed by a duly authorized representative of such Borrower and giving the name and specimen signature of each Authorized Officer who shall be authorized to make Loan Requests and
Conversion/Continuation Requests and to give notices and to take other action on behalf of the Borrowers under the Loan Documents. 
 §10.5 Opinion of Counsel. The Agent shall have received an opinion addressed to the Lenders and the Agent and dated as of the Closing Date from counsel to the Borrowers and the Guarantor in form and substance reasonably
satisfactory to the Agent. 
 §10.6 Payment of Fees. The Borrowers shall have paid to the Agent the fees payable pursuant to
§4.2. 
 §10.7 Performance; No Default. Borrowers and the Guarantor shall have performed and complied with all terms and
conditions herein required to be performed or complied with by it on or prior to the Closing Date, and on the Closing Date there shall exist no Default or Event of Default. 
 §10.8 Representations and Warranties. The representations and warranties made by the Borrowers and the Guarantor in the Loan Documents or
otherwise made by or on behalf of the Borrowers and the Guarantor in connection therewith or after the date thereof shall have been true and correct in all material respects when made and shall also be true and correct in all material respects on
the Closing Date. 
 §10.9 Proceedings and Documents. All proceedings in connection with the transactions contemplated by this
Agreement and the other Loan Documents shall be reasonably satisfactory to the Agent and the Agent’s counsel in form and substance, and the Agent shall have received all information and such counterpart originals or certified copies of such
documents and such other certificates, opinions, assurances, consents, approvals or documents as the Agent and the Agent’s counsel may reasonably require. 
 §10.10 Mortgaged Property Qualification Documents. The Mortgaged Property Qualification Documents for the Mortgaged Property shall have been delivered to the Agent at the Borrowers’ expense and shall
be in form and substance satisfactory to the Agent. 
  

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 §10.11 Appraisal. The Agent shall have received the Appraisal of the Mortgaged Property in
form and substance satisfactory to the Agent and determined the Appraised Value, and the ratio of the Total Commitment to the Appraised Value shall not exceed seventy-two percent (72%). 
 §10.12 Consents. The Agent shall have received evidence reasonably satisfactory to the Agent that all necessary stockholder, partner, member
or other consents required in connection with the consummation of the transactions contemplated by this Agreement and the other Loan Documents have been obtained. 
 §10.13 Purchase Contracts. The Agent shall have received a certified copy of each executed Purchase Contract. 
 §10.14 CHCI Subordinate Notes. The Agent shall have received evidence reasonably satisfactory to the Agent that Guarantor’s payment obligation under the CHCI Subordinate Notes has reduced to aggregate
principal amount of Nine Million and No/100 Dollars ($9,000,000). 
 §10.15 Other. The Agent shall have reviewed such other
documents, instruments, certificates, opinions, assurances, consents and approvals as the Agent or the Agent’s Special Counsel may reasonably have requested. 
  

	§11.	CONDITIONS TO ALL BORROWINGS. 

 The obligations of the
Lenders to make any Loan, whether on or after the Closing Date, shall also be subject to the satisfaction of the following conditions precedent: 
 §11.1 Prior Conditions Satisfied. All conditions set forth in §10 shall continue to be satisfied as of the date upon which any Loan is to be made. 
 §11.2 Representations True; No Default. Each of the representations and warranties made by or on behalf of the Borrowers and the Guarantor
contained in this Agreement, the other Loan Documents or in any document or instrument delivered pursuant to or in connection with this Agreement shall be true in all material respects both as of the date as of which they were made and shall also be
true in all material respects as of the time of the making of such Loan, with the same effect as if made at and as of that time, except to the extent of changes resulting from transactions permitted by the Loan Documents (it being understood and
agreed that any representation or warranty which by its terms is made as of a specified date shall be required to be true and correct only as of such specified date), and no Default or Event of Default shall have occurred and be continuing.

 §11.3 Borrowing Documents. The Agent shall have received a fully completed Loan Request for such Loan and the other documents
and information as required by §2.3, fully completed, as applicable. 
 §11.4 Endorsement to Title Policy. At such times as
Agent shall determine in its discretion prior to each funding, to the extent available under applicable law, a “date down” endorsement to each Title Policy indicating no change in the state of title and containing no survey exceptions not
approved by the Agent, which endorsement shall, expressly or by virtue of 

  

 53 

 
a proper “pending disbursements” clause or endorsement in each Title Policy, increase the coverage of each Title Policy to the aggregate amount of
all Loans advanced and outstanding on or before the effective date of such endorsement (provided that the amount of coverage under an individual Title Policy for an individual Mortgaged Property need not equal the aggregate amount of all
Loans), or if such endorsement is not available, such other evidence and assurances as the Agent may reasonably require (which evidence may include, without limitation, an affidavit from a Borrower stating that there have been no changes in title
from the date of the last effective date of the Title Policy). 
 §11.5 Future Advances Tax Payment. As a condition precedent to
any Lender’s obligations to make any Loans available to the Borrowers hereunder, the Borrowers will pay to the Agent any mortgage, recording, intangible, documentary stamp or other similar taxes and charges which the Agent reasonably determines
to be payable as a result of such Loan to any state or any county or municipality thereof in which the Mortgaged Property is located, and deliver to the Agent such affidavits or other information which the Agent reasonably determines to be necessary
in connection with such payment in order to insure that the Mortgages on the Mortgaged Property located in such state secure the Borrowers’ obligation with respect to the Loans then being requested by the Borrowers. The provisions of this
§11.5 shall not limit the Borrowers’ obligations under other provisions of the Loan Documents, including without limitation §15 hereof. 
  

	§12.	EVENTS OF DEFAULT; ACCELERATION; ETC. 

 §12.1
Events of Default and Acceleration. If any of the following events (“Events of Default” or, if the giving of notice or the lapse of time or both is required, then, prior to such notice or lapse of time, “Defaults”) shall
occur: 
 (a) the Borrowers shall fail to pay any principal of the Loans when the same shall become due and payable, whether at the stated
date of maturity or any accelerated date of maturity or at any other date fixed for payment; 
 (b) the Borrowers shall fail to pay any
interest on the Loans or any fees or other sums due hereunder or under any of the other Loan Documents, within ten (10) days of the date the same shall become due and payable, whether at the stated date of maturity or any accelerated date of
maturity or at any other date fixed for payment, provided that no such grace period shall apply to any such payments due at maturity; 
 (c)
the Borrowers shall fail to remargin the Loan as required in §2.6; 
 (d) [Intentionally Omitted.]; 
 (e) any of the Borrowers or the Guarantor shall fail to perform any other term, covenant or agreement contained herein or in any of the other Loan
Documents which they are required to perform (other than those specified in the other subclauses of this §12 or in the other Loan Documents); 
 (f) any representation or warranty made by or on behalf of the Borrowers or the Guarantor in this Agreement or any other Loan Document, or any report, certificate, financial 

  

 54 

 
statement, request for a Loan, or in any other document or instrument delivered pursuant to or in connection with this Agreement, any advance of a Loan or
any of the other Loan Documents shall prove to have been false in any material respect upon the date when made or deemed to have been made or repeated; 
 (g) without limiting the provisions of this Agreement prohibiting the incurrence of Indebtedness by the Borrowers, any of the Borrowers (i) shall fail to pay when due (including, without limitation, at maturity)
any principal, interest or other amount on account any obligation for borrowed money or credit received or other Indebtedness, or (ii) shall fail to observe or perform any term, covenant or agreement contained in any agreement by which it is
bound, evidencing or securing any obligation for borrowed money or credit received or other Indebtedness for such period of time as would permit (assuming the giving of appropriate notice if required) the holder or holders thereof or of any
obligations issued thereunder to accelerate the maturity thereof; 
 (h) any of the Borrowers or the Guarantor (i) shall make an
assignment for the benefit of creditors, or admit in writing its general inability to pay or generally fail to pay its debts as they mature or become due, or shall petition or apply for the appointment of a trustee or other custodian, liquidator or
receiver for it or any substantial part of its assets, (ii) shall commence any case or other proceeding relating to it under any bankruptcy, reorganization, arrangement, insolvency, readjustment of debt, dissolution or liquidation or similar
law of any jurisdiction, now or hereafter in effect, or (iii) shall take any action to authorize or in furtherance of any of the foregoing; 
 (i) a petition or application shall be filed for the appointment of a trustee or other custodian, liquidator or receiver of any of the Borrowers or the Guarantor or any substantial part of the assets of any thereof, or a case or other
proceeding shall be commenced against any such Person under any bankruptcy, reorganization, arrangement, insolvency, readjustment of debt, dissolution or liquidation or similar law of any jurisdiction, now or hereafter in effect, and any such Person
shall indicate its approval thereof, consent thereto or acquiescence therein or such petition, application, case or proceeding shall not have been dismissed within sixty (60) days following the filing or commencement thereof; 
 (j) a decree or order is entered appointing a trustee, custodian, liquidator or receiver for any of the Borrowers or the Guarantor or adjudicating any
such Person, bankrupt or insolvent, or approving a petition in any such case or other proceeding, or a decree or order for relief is entered in respect of any such Person in an involuntary case under federal bankruptcy laws as now or hereafter
constituted; 
 (k) there shall remain in force, undischarged, unsatisfied and unstayed, for more than sixty (60) days, whether or not
consecutive, one or more uninsured or unbonded final judgments against any of the Borrowers or Guarantor that, either individually or in the aggregate, exceed $250,000.00; 
 (l) any of the Loan Documents shall be canceled, terminated, revoked or rescinded otherwise than in accordance with the terms thereof or the express
prior written agreement, consent or approval of the Lenders, or any action at law, suit in equity or other legal 

  

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proceeding to cancel, revoke or rescind any of the Loan Documents shall be commenced by or on behalf of any of the Borrowers or the Guarantor, or any court
or any other governmental or regulatory authority or agency of competent jurisdiction shall make a determination, or issue a judgment, order, decree or ruling, to the effect that any one or more of the Loan Documents is illegal, invalid or
unenforceable in accordance with the terms thereof; 
 (m) with respect to any Guaranteed Pension Plan, an ERISA Reportable Event shall have
occurred and the Majority Lenders shall have determined in their reasonable discretion that such event reasonably could be expected to result in liability of any of the Borrowers or the Guarantor to the PBGC or such Guaranteed Pension Plan in an
aggregate amount exceeding $250,000.00 and such event in the circumstances occurring reasonably could constitute grounds for the termination of such Guaranteed Pension Plan by the PBGC or for the appointment by the appropriate United States District
Court of a trustee to administer such Guaranteed Pension Plan; or a trustee shall have been appointed by the United States District Court to administer such Plan; or the PBGC shall have instituted proceedings to terminate such Guaranteed Pension
Plan; 
 (n) any Borrower, the Guarantor or any Person so connected with any of them shall be indicted for a federal crime, a punishment for
which could include the forfeiture of any assets of any Borrower or the Guarantor; 
 (o) the Guarantor denies that it has any liability or
obligation under the Guaranty or any other Loan Document, or shall notify the Agent or any of the Lenders of Guarantor’s intention to attempt to cancel or terminate the Guaranty, or any other Loan Document, or shall fail to observe or comply
with any term, covenant, condition or agreement under the Guaranty, or any other Loan Document; 
 (p) any event, act, condition or
occurrence of whatever nature, whether singly or in conjunction with any other event or events, act or acts, condition or conditions, occurrence or occurrences, whether or not related, that causes a Material Adverse Effect including, without
limitation, the acceleration of the debt evidenced by the CHCI Subordinate Notes or any other Indebtedness of Guarantor individually or in the aggregate in excess of $30,000,000 or any adverse determination in any litigation, arbitration, or
governmental investigation or proceeding involving Borrowers or the Guarantor; 
 (q) any Change of Control shall occur; or 
 (r) an Event of Default under any of the other Loan Documents shall occur; 
 then, and in any such event, the Agent may, and upon the request of the Majority Lenders shall, by notice in writing to the Borrowers declare all amounts owing with respect to this Agreement, the Notes and the other
Loan Documents to be, and they shall thereupon forthwith become, immediately due and payable without presentment, demand, protest or other notice of any kind, all of which are hereby expressly waived by the Borrowers; provided that in the
event of any Event of Default specified in §12.1(h), §12.1(i) or §12.1(j), all such amounts shall become immediately due and payable automatically and without any requirement of presentment, demand, protest or other notice of any kind
from any of the Lenders or the Agent. 
  

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 §12.2 Certain Cure Periods; Limitation of Cure Periods. No Event of Default shall exist
hereunder upon the occurrence of any failure described in §12.1(e) in the event that the Borrowers cure such Default within thirty (30) days following receipt of written notice of such default, provided that the provisions of this
§12.2 shall not pertain to defaults consisting of a failure to provide insurance as required by §7.7, to any default consisting of a failure to comply with §5.4, §7.14, §7.15, §8.1, §8.2, §8.6, §8.7 or
§8.8 or to any Default excluded from any provision of cure of defaults contained in any other of the Loan Documents. 
 §12.3
Termination of Commitments. If any one or more Events of Default specified in §12.1(h), §12.1(i) or §12.1(j) shall occur, then immediately and without any action on the part of the Agent or any Lender any unused portion of the
credit hereunder shall terminate and the Lenders shall be relieved of all obligations to make Loans to the Borrowers. If any other Event of Default shall have occurred, the Agent may, and upon the election of the Majority Lenders shall, by notice to
the Borrowers terminate the obligation to make Loans to the Borrowers. No termination under this §12.3 shall relieve the Borrowers of their obligations to the Lenders arising under this Agreement or the other Loan Documents. 
 §12.4 Remedies. In case any one or more Events of Default shall have occurred and be continuing, and whether or not the Lenders shall have
accelerated the maturity of the Loans pursuant to §12.1, the Agent on behalf of the Lenders may, and upon the direction of the Majority Lenders shall, proceed to protect and enforce their rights and remedies under this Agreement, the Notes
and/or any of the other Loan Documents by suit in equity, action at law or other appropriate proceeding, including to the full extent permitted by applicable law the specific performance of any covenant or agreement contained in this Agreement and
the other Loan Documents, the obtaining of the ex parte appointment of a receiver, and, if any amount shall have become due, by declaration or otherwise, the enforcement of the payment thereof. No remedy herein conferred upon the Agent or the holder
of any Note is intended to be exclusive of any other remedy and each and every remedy shall be cumulative and shall be in addition to every other remedy given hereunder or now or hereafter existing at law or in equity or by statute or any other
provision of law. Notwithstanding the provisions of this Agreement providing that the Loans may be evidenced by multiple Notes in favor of the Lenders, the Lenders acknowledge and agree that only the Agent may exercise any remedies arising by reason
of a Default or Event of Default. If any Borrower or the Guarantor fails to perform any agreement or covenant contained in this Agreement or any of the other Loan Documents beyond any applicable period for notice and cure, Agent may itself perform,
or cause to be performed, any agreement or covenant of such Person contained in this Agreement or any of the other Loan Documents which such Person shall fail to perform, and the out-of-pocket costs of such performance, together with any reasonable
expenses, including reasonable attorneys’ fees actually incurred (including attorneys’ fees incurred in any appeal) by Agent in connection therewith, shall be payable by Borrowers upon demand and shall constitute a part of the Obligations
and shall if not paid within five (5) Business Days after demand bear interest at the rate for overdue amounts as set forth in this Agreement. In the event that all or any portion of the Obligations is collected by or through an
attorney-at-law, the Borrowers shall pay all costs of collection including, but not limited to, reasonable attorney’s fees. 
 §12.5 Distribution of Collateral Proceeds. In the event that, following the occurrence and during the continuance of any Event of Default, any monies are received in connection with 

  

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the enforcement of any of the Loan Documents, or otherwise with respect to the realization upon any of the Collateral or other assets of Borrowers or the
Guarantor, such monies shall be distributed for application as follows; provided that the proceeds realized from the sale of the Mortgaged Property pursuant to the Mortgage shall be applied in the order set forth therein: 
 (a) First, to the payment of, or (as the case may be) the reimbursement of the Agent for or in respect of, all reasonable out-of-pocket costs, expenses,
disbursements and losses which shall have been paid, incurred or sustained by the Agent to protect or preserve the Collateral or in connection with the collection of such monies by the Agent, for the exercise, protection or enforcement by the Agent
of all or any of the rights, remedies, powers and privileges of the Agent or the Lenders under this Agreement or any of the other Loan Documents or in respect of the Collateral or in support of any provision of adequate indemnity to the Agent
against any taxes or liens which by law shall have, or may have, priority over the rights of the Agent or the Lenders to such monies; 
 (b)
Second, to all other Obligations (including any interest, expenses or other obligations incurred after the commencement of a bankruptcy in such order or preference as the Majority Lenders shall determine; provided, that (i) in the event
that any Lender shall have wrongfully failed or refused to make an advance under §2.4 or §9 and such failure or refusal shall be continuing, advances made by other Lenders during the pendency of such failure or refusal shall be entitled to
be repaid as to principal and accrued interest in priority to the other Obligations described in this subsection (b), and (ii) except as otherwise provided in clause (i), Obligations owing to the Lenders with respect to each type of Obligation
such as interest, principal, fees and expenses shall be made among the Lenders pro rata; and provided, further that the Majority Lenders may in their discretion make proper allowance to take into account any Obligations not then due
and payable; and 
 (c) Third, the excess, if any, shall be returned to the Borrowers or to such other Persons as are entitled thereto.

  

	§13.	SETOFF. 

 Regardless of the adequacy of any Collateral,
during the continuance of any Event of Default, any deposits (general or specific, time or demand, provisional or final, regardless of currency, maturity, or the branch where such deposits are held) or other sums credited by or due from any Lender
to the Borrowers and any securities or other property of the Borrowers in the possession of such Lender may, without notice to any Borrower (any such notice being expressly waived by Borrowers) but with the prior written approval of Agent, be
applied to or set off against the payment of Obligations and any and all other liabilities, direct, or indirect, absolute or contingent, due or to become due, now existing or hereafter arising, of the Borrowers to such Lender. Each of the Lenders
agrees with each other Lender that if such Lender shall receive from the Borrowers or the Guarantor, whether by voluntary payment, exercise of the right of setoff, or otherwise, and shall retain and apply to the payment of the Note or Notes held by
such Lender any amount in excess of its ratable portion of the payments received by all of the Lenders with respect to the Notes held by all of the Lenders, such Lender will make such disposition and arrangements with the other Lenders with respect
to such excess, either by way of distribution, pro tanto assignment of claims, subrogation or otherwise as shall result in each Lender receiving 

  

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in respect of the Notes held by it its proportionate payment as contemplated by this Agreement; provided that if all or any part of such excess payment is
thereafter recovered from such Lender, such disposition and arrangements shall be rescinded and the amount restored to the extent of such recovery, but without interest. 
  

	§14.	THE AGENT. 

 §14.1 Authorization. The Agent is
authorized to take such action on behalf of each of the Lenders and to exercise all such powers as are hereunder and under any of the other Loan Documents and any related documents delegated to the Agent, together with such powers as are reasonably
incident thereto, provided that no duties or responsibilities not expressly assumed herein or therein shall be implied to have been assumed by the Agent. The obligations of the Agent hereunder are primarily administrative in nature, and nothing
contained in this Agreement or any of the other Loan Documents shall be construed to constitute the Agent as a trustee for any Lender or to create an agency or fiduciary relationship. Agent shall act as the contractual representative of the Lenders
hereunder, and notwithstanding the use of the term “Agent”, it is understood and agreed that Agent shall not have any fiduciary duties or responsibilities to any Lender by reason of this Agreement or any other Loan Document and is acting
as an independent contractor, the duties and responsibilities of which are limited to those expressly set forth in this Agreement and the other Loan Documents. The Borrowers and any other Person shall be entitled to conclusively rely on a statement
from the Agent that it has the authority to act for and bind the Lenders pursuant to this Agreement and the other Loan Documents. 
 §14.2 Employees and Agents. The Agent may exercise its powers and execute its duties by or through employees or agents and shall be entitled to take, and to rely on, advice of counsel concerning all matters pertaining to its
rights and duties under this Agreement and the other Loan Documents. The Agent may utilize the services of such Persons as the Agent may reasonably determine, and all reasonable fees and expenses of any such Persons shall be paid by the Borrowers.

 §14.3 No Liability. Neither the Agent nor any of its shareholders, directors, officers or employees nor any other Person
assisting them in their duties nor any agent, or employee thereof, shall be liable for (a) any waiver, consent or approval given or any action taken, or omitted to be taken, in good faith by it or them hereunder or under any of the other Loan
Documents, or in connection herewith or therewith, or be responsible for the consequences of any oversight or error of judgment whatsoever, except that the Agent or such other Person, as the case may be, shall be liable for losses due to its willful
misconduct or gross negligence as finally determined by a court of competent jurisdiction after the expiration of all applicable appeal periods or (b) any action taken or not taken by Agent with the consent or at the request of the Majority
Lenders. The Agent shall not be deemed to have knowledge or notice of the occurrence of any Default or Event of Default, except with respect to defaults in the payment of principal, interest and fees required to be paid to the Agent for the account
of the Lenders, unless the Agent has received notice from a Lender or the Borrowers referring to the Loan Documents and describing with reasonable specificity such Default or Event of Default and stating that such notice is a “notice of
default”. 
  

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 §14.4 No Representations. The Agent shall not be responsible for the execution or validity or
enforceability of this Agreement, the Notes, any of the other Loan Documents or any instrument at any time constituting, or intended to constitute, collateral security for the Notes, or for the value of any such collateral security or for the
validity, enforceability or collectability of any such amounts owing with respect to the Notes, or for any recitals or statements, warranties or representations made herein, or any agreement, instrument or certificate delivered in connection
therewith or in any of the other Loan Documents or in any certificate or instrument hereafter furnished to it by or on behalf of the Borrowers or the Guarantor, or be bound to ascertain or inquire as to the performance or observance of any of the
terms, conditions, covenants or agreements herein or in any of the other Loan Documents. The Agent shall not be bound to ascertain whether any notice, consent, waiver or request delivered to it by the Borrowers or the Guarantor or any holder of any
of the Notes shall have been duly authorized or is true, accurate and complete. The Agent has not made nor does it now make any representations or warranties, express or implied, nor does it assume any liability to the Lenders, with respect to the
creditworthiness or financial condition of the Borrowers or the Guarantor, or the value of the Collateral or any other assets of the Borrowers or the Guarantor. Each Lender acknowledges that it has, independently and without reliance upon the Agent
or any other Lender, and based upon such information and documents as it has deemed appropriate, made its own credit analysis and decision to enter into this Agreement. Each Lender also acknowledges that it will, independently and without reliance
upon the Agent or any other Lender, based upon such information and documents as it deems appropriate at the time, continue to make its own credit analysis and decisions in taking or not taking action under this Agreement and the other Loan
Documents. Agent’s Special Counsel has only represented Agent and KeyBank in connection with the Loan Documents and the only attorney client relationship or duty of care is between Agent’s Special Counsel and Agent or KeyBank. Each Lender
has been independently represented by separate counsel on all matters regarding the Loan Documents and the granting and perfecting of liens in the Collateral. 
 §14.5 Payments. 
 (a) A payment by any Borrower or the Guarantor to the Agent hereunder or under
any of the other Loan Documents for the account of any Lender shall constitute a payment to such Lender. The Agent agrees to distribute to each Lender not later than one Business Day after the Agent’s receipt of good funds, determined in
accordance with the Agent’s customary practices, such Lender’s pro rata share of payments received by the Agent for the account of the Lenders except as otherwise expressly provided herein or in any of the other Loan Documents. In the
event that the Agent fails to distribute such amounts within one Business Day as provided above, the Agent shall pay interest on such amount at a rate per annum equal to the Federal Funds Effective Rate from time to time in effect. 
 (b) If in the opinion of the Agent the distribution of any amount received by it in such capacity hereunder, under the Notes or under any of the other
Loan Documents might involve it in liability, it may refrain from making such distribution until its right to make such distribution shall have been adjudicated by a court of competent jurisdiction. If a court of competent jurisdiction shall adjudge
that any amount received and distributed by the Agent is to be repaid, each Person to whom any such distribution shall have been made shall either repay to the Agent its proportionate share of the amount so adjudged to be repaid or shall pay over
the same in such manner and to such Persons as shall be determined by such court. 
  

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 (c) Notwithstanding anything to the contrary contained in this Agreement or any of the other Loan
Documents, any Lender that fails (i) to make available to the Agent its pro rata share of any Loan, (ii) to comply with the provisions of §13 with respect to making dispositions and arrangements with the other Lenders, where such
Lender’s share of any payment received, whether by setoff or otherwise, is in excess of its pro rata share of such payments due and payable to all of the Lenders, in each case as, when and to the full extent required by the provisions of this
Agreement, or (iii) to perform any other obligation within the time period specified for performance, or if no time period is specified, if such failure continues for a period of five (5) Business Days after notice from the Agent shall be
deemed delinquent (a “Delinquent Lender”) and shall be deemed a Delinquent Lender until such time as such delinquency is satisfied. In addition to the rights and remedies that may be available to the Agent at law and in equity, a
Delinquent Lender’s right to participate in the administration of the Loan Documents, including, without limitation, any rights to consent to or direct any action or inaction of the Agent pursuant to this Agreement or otherwise, or to be taken
into account in the calculation of Majority Lenders or any matter requiring approval of all of the Lenders, shall be suspended while such Lender is a Delinquent Lender. A Delinquent Lender shall be deemed to have assigned any and all payments due to
it from the Borrowers or the Guarantor, whether on account of outstanding Loans, interest, fees or otherwise, to the remaining nondelinquent Lenders for application to, and reduction of, their respective pro rata shares of all outstanding Loans. The
Delinquent Lender hereby authorizes the Agent to distribute such payments to the nondelinquent Lenders in proportion to their respective pro rata shares of all outstanding Loans. The provisions of this Section shall apply and be effective regardless
of whether an Event of Default occurs and is then continuing, and notwithstanding (i) any other provision of this Agreement to the contrary or (ii) any instruction of Borrowers as to its desired application of payments. The Agent shall be
entitled to (i) withhold or set off, and to apply to the payment of the obligations of any Delinquent Lender any amounts to be paid to such Delinquent Lender under this Agreement, (ii) to collect interest from such Lender for the period
from the date on which the payment was due at the rate per annum equal to the Federal Funds Effective Rate plus one percent (1%), for each day during such period, and (iii) bring an action or suit against such Delinquent Lender in a court of
competent jurisdiction to recover the defaulted obligations of such Delinquent Lender. A Delinquent Lender shall be deemed to have satisfied in full a delinquency when and if, as a result of application of the assigned payments to all outstanding
Loans of the nondelinquent Lenders or as a result of other payments by the Delinquent Lenders to the nondelinquent Lenders, the Lenders’ respective pro rata shares of all outstanding Loans have returned to those in effect immediately prior to
such delinquency and without giving effect to the nonpayment causing such delinquency. 
 §14.6 Holders of Notes. Subject to the
terms of §18, the Agent may deem and treat the payee of any Note as the absolute owner or purchaser thereof for all purposes hereof until it shall have been furnished in writing with a different name by such payee or by a subsequent holder,
assignee or transferee. 
 §14.7 Indemnity. The Lenders ratably agree hereby to indemnify and hold harmless the Agent from and
against any and all claims, actions and suits (whether groundless or otherwise), 

  

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losses, damages, costs, expenses (including any expenses for which the Agent has not been reimbursed by the Borrowers as required by §15), and
liabilities of every nature and character arising out of or related to this Agreement, the Notes, or any of the other Loan Documents or the transactions contemplated or evidenced hereby or thereby, or the Agent’s actions taken hereunder or
thereunder, except to the extent that any of the same shall be directly caused by the Agent’s willful misconduct or gross negligence as finally determined by a court of competent jurisdiction after the expiration of all applicable appeal
periods. The agreements in this §14.7 shall survive the payment of all amounts payable under the Loan Documents. 
 §14.8 Agent
as Lender. In its individual capacity, KeyBank shall have the same obligations and the same rights, powers and privileges in respect to its Commitment and the Loans made by it, and as the holder of any of the Notes as it would have were it not
also the Agent. 
 §14.9 Resignation. The Agent may resign at any time by giving thirty (30) calendar days’ prior
written notice thereof to the Lenders and the Borrowers. The Majority Lenders (calculated without including the Commitment of the Lender acting as Agent) may remove the Agent from its capacity as Agent in the event of the Agent’s gross
negligence or willful misconduct. Upon any such resignation or removal, the Majority Lenders, subject to the terms of §18.1, shall have the right to appoint as a successor Agent any Lender or any bank whose senior debt obligations are rated not
less than “A” or its equivalent by Moody’s or not less than “A” or its equivalent by S&P and which has a net worth of not less than $500,000,000.00. Unless a Default or Event of Default shall have occurred and be
continuing, such successor Agent shall be reasonably acceptable to the Borrowers. If no successor Agent shall have been appointed and shall have accepted such appointment within thirty (30) days after the retiring Agent’s giving of notice
of resignation or the Majority Lenders’ removal of the Agent, then the retiring or removed Agent may, on behalf of the Lenders, appoint a successor Agent, which shall be any Lender or any financial institution whose senior debt obligations are
rated not less than “A2” or its equivalent by Moody’s or not less than “A” or its equivalent by S&P and which has a net worth of not less than $500,000,000.00. Upon the acceptance of any appointment as Agent hereunder by
a successor Agent, such successor Agent shall thereupon succeed to and become vested with all the rights, powers, privileges and duties of the retiring or removed Agent, and the retiring or removed Agent shall be discharged from its duties and
obligations hereunder as Agent. After any retiring or removed Agent’s resignation, the provisions of this Agreement and the other Loan Documents shall continue in effect for its benefit in respect of any actions taken or omitted to be taken by
it while it was acting as Agent. Upon any change in the Agent under this Agreement, the resigning or removed Agent shall execute such assignments of and amendments to the Loan Documents as may be necessary to substitute the successor Agent for the
resigning Agent. 
 §14.10 Duties in the Case of Enforcement. In case one or more Events of Default have occurred and shall be
continuing, and whether or not acceleration of the Obligations shall have occurred, the Agent may and, if (a) so requested by the Majority Lenders and (b) the Lenders have provided to the Agent such additional indemnities and assurances in
accordance with their respective Commitment Percentages against expenses and liabilities as the Agent may reasonably request, shall proceed to exercise all or any legal and equitable and other rights or remedies as it may have; provided, however,
that unless and until the Agent shall have received such directions, the Agent may (but shall not be obligated to) take such action, or refrain from 

  

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taking such action, with respect to such Default or Event of Default as it shall deem to be in the best interests of the Lenders. Without limiting the
generality of the foregoing, if Agent reasonably determines payment is in the best interest of all the Lenders, Agent may without the approval of the Lenders pay taxes and insurance premiums and spend money for maintenance, repairs or other expenses
which may be necessary to be incurred, and Agent shall promptly thereafter notify the Lenders of such action. Each Lender shall, within thirty (30) days of request therefor, pay to the Agent its Commitment Percentage of the reasonable costs
incurred by the Agent in taking any such actions hereunder to the extent that such costs shall not be promptly reimbursed to the Agent by the Borrowers or the Guarantor or out of the Collateral within such period with respect to the Mortgaged
Property. The Majority Lenders may direct the Agent in writing as to the method and the extent of any such exercise, the Lenders hereby agreeing to indemnify and hold the Agent harmless in accordance with their respective Commitment Percentages from
all liabilities incurred in respect of all actions taken or omitted in accordance with such directions, provided that the Agent need not comply with any such direction to the extent that the Agent reasonably believes the Agent’s compliance with
such direction to be unlawful in any applicable jurisdiction or commercially unreasonable under the UCC as enacted in any applicable jurisdiction. 
 §14.11 Bankruptcy. In the event a bankruptcy or other insolvency proceeding is commenced by or against any Borrower or the Guarantor with respect to the Obligations, the Agent shall have the sole and exclusive right to file and
pursue a joint proof claim on behalf of all Lenders. Any votes with respect to such claims or otherwise with respect to such proceedings shall be subject to the vote of the Majority Lenders or all of the Lenders as required by this Agreement. Each
Lender irrevocably waives its right to file or pursue a separate proof of claim in any such proceedings unless Agent fails to file such claim within thirty (30) days after receipt of written notice from the Lenders requesting that Agent file
such proof of claim. 
 §14.12 Request for Agent Action. Agent and the Lenders acknowledge that in the ordinary course of
business of the Borrowers (a) the Mortgaged Property may be subject to a Taking, or (b) Borrowers may desire to enter into easements or other agreements affecting the Mortgaged Property, or take other actions or enter into other agreements
in the ordinary course of business which similarly require the consent, approval or agreement of the Agent. In connection with the foregoing, the Lenders hereby expressly authorize the Agent to (x) execute releases of liens in connection with
any Taking, (y) execute consents or subordinations in form and substance satisfactory to Agent in connection with any easements or agreements affecting the Mortgaged Property, or (z) execute consents, approvals, or other agreements in form
and substance satisfactory to the Agent in connection with such other actions or agreements as may be necessary in the ordinary course of Borrowers’ business. 
 §14.13 Reliance by Agent. The Agent shall be entitled to rely upon, and shall not incur any liability for relying upon, any notice, request, certificate, consent, statement, instrument, document or other
writing (including any electronic message, Internet or intranet website posting or other distribution) believed by it to be genuine and to have been signed, sent or otherwise authenticated by any Person purporting to have authority to act on behalf
of another Person. The Agent also may rely upon any statement made to it orally or by telephone and believed by it to have been made by the proper Person, and shall not incur any liability for relying thereon. In determining compliance with any
condition hereunder to the making of a Loan, that by its terms 

  

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must be fulfilled to the satisfaction of a Lender, the Agent may presume that such condition is satisfactory to such Lender unless the Agent shall have
received notice to the contrary from such Lender prior to the making of such Loan. The Agent may consult with legal counsel (who may be counsel for the Borrowers), independent accountants and other experts selected by it, and shall not be liable for
any action taken or not taken by it in accordance with the advice of any such counsel, accountants or experts. 
 §14.14
Approvals. If consent is required for some action under this Agreement, or except as otherwise provided herein an approval of the Lenders or the Majority Lenders is required or permitted under this Agreement, each Lender agrees to give the
Agent, within ten (10) days of receipt of the request for action together with all reasonably requested information related thereto (or such lesser period of time required by the terms of the Loan Documents), notice in writing of approval or
disapproval (collectively “Directions”) in respect of any action requested or proposed in writing pursuant to the terms hereof. To the extent that any Lender does not approve any recommendation of Agent, such Lender shall in such notice to
Agent describe the actions that would be acceptable to such Lender. If consent is required for the requested action, any Lender’s failure to respond to a request for Directions within the required time period shall be deemed to constitute a
Direction to take such requested action. In the event that any recommendation is not approved by the requisite number of Lenders and a subsequent approval on the same subject matter is requested by Agent, then for the purposes of this paragraph each
Lender shall be required to respond to a request for Directions within five (5) Business Days of receipt of such request. Agent and each Lender shall be entitled to assume that any officer of the other Lenders delivering any notice, consent,
certificate or other writing is authorized to give such notice, consent, certificate or other writing unless Agent and such other Lenders have otherwise been notified in writing. 
 §14.15 Borrowers Not Beneficiary. Except for the provisions of §14.9 relating to the appointment of a successor Agent, the provisions of
this §14 are solely for the benefit of the Agent and the Lenders, may not be enforced by the Borrowers or the Guarantor, and except for the provisions of §14.9, may be modified or waived without the approval or consent of the Borrowers and
the Guarantor. 
  

	§15.	EXPENSES. 

 The Borrowers agree to pay (a) the
reasonable costs of producing and reproducing this Agreement, the other Loan Documents and the other agreements and instruments mentioned herein, (b) any taxes (including any interest and penalties in respect thereto) payable by the Agent or
any of the Lenders (other than taxes based upon the Agent’s or any Lender’s gross or net income, except that the Agent and the Lenders shall be entitled to indemnification for any and all amounts paid by them in respect of taxes based on
income or other taxes assessed by any State in which Mortgaged Property or other Collateral is located, such indemnification to be limited to taxes due solely on account of the granting of Collateral under the Security Documents and to be net of any
credit allowed to the indemnified party from any other State on account of the payment or incurrence of such tax by such indemnified party), including any recording, mortgage, documentary or intangibles taxes in connection with the Mortgages and
other Loan Documents, or other taxes payable on or with respect to the transactions contemplated by this Agreement, including any such taxes payable by the Agent or any of the Lenders after the 

  

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Closing Date (the Borrowers hereby agreeing to indemnify the Agent and each Lender with respect thereto), (c) all title insurance premiums,
engineer’s fees, environmental reviews and the reasonable fees, expenses and disbursements of the counsel to the Agent and any local counsel to the Agent incurred in connection with the preparation, administration, or interpretation of the Loan
Documents and other instruments mentioned herein, and amendments, modifications, approvals, consents or waivers hereto or hereunder, (d) to the extent that the Commitment is ever increased pursuant to a written amendment to this Agreement, the
out-of-pocket fees, costs, expenses and disbursements of Agent incurred in connection with the syndication and/or participation of the Loans, (e) all other reasonable out of pocket fees, expenses and disbursements of the Agent incurred by the
Agent in connection with the preparation or interpretation of the Loan Documents and other instruments mentioned herein, and the syndication of the Commitments pursuant to §18 to the extent that the Commitment is ever increased pursuant to a
written amendment to this Agreement (without duplication of those items addressed in subparagraph (d), above), (f) all out of pocket expenses (including attorneys’ fees and costs, and the fees and costs of appraisers, engineers, investment
bankers or other experts retained by any Lender or the Agent) incurred by any Lender or the Agent in connection with (i) the enforcement of or preservation of rights under any of the Loan Documents against the Borrowers or the Guarantor or the
administration thereof after the occurrence of a Default or Event of Default and (ii) any litigation, proceeding or dispute whether arising hereunder or otherwise, in any way related to the Agent’s or any of the Lenders’ relationship
with the Borrowers or the Guarantor, (g) all reasonable fees, expenses and disbursements of the Agent incurred in connection with UCC searches, UCC filings, title rundowns, title searches or mortgage recordings, (h) all reasonable
out-of-pocket fees, expenses and disbursements (including reasonable attorneys’ fees and costs) which may be incurred by KeyBank in connection with the execution and delivery of this Agreement and the other Loan Documents (without duplication
of any of the items listed above), and (i) all expenses relating to the use of Intralinks, SyndTrak or any other similar system for the dissemination and sharing of documents and information in connection with the Loans. The covenants of this
§15 shall survive for one hundred twenty (120) calendar days following the repayment of the Loans and the termination of the obligations of the Lenders hereunder. 
  

	§16.	INDEMNIFICATION. 

 The Borrowers, jointly and severally,
agree from the date hereof to indemnify and hold harmless the Agent, the Lenders and the Arranger and each director, officer, employee, agent and Person who controls the Agent or any Lender or the Arranger against any and all claims, actions and
suits, whether groundless or otherwise, and from and against any and all liabilities, losses, damages and expenses of every nature and character arising out of or relating to this Agreement or any of the other Loan Documents or the transactions
contemplated hereby and thereby including, without limitation, (a) any and all claims for brokerage, leasing, finders or similar fees which may be made relating to the Mortgaged Property or the Loans, (b) any condition of the Mortgaged
Property, (c) any actual or proposed use by the Borrowers of the proceeds of any of the Loans, (d) any actual or alleged infringement of any patent, copyright, trademark, service mark or similar right of the Borrowers or the Guarantor,
(e) the Borrowers and the Guarantor entering into or performing this Agreement or any of the other Loan Documents, (f) any actual or alleged violation of any law, ordinance, code, order, rule, regulation, approval, consent, permit or
license relating to the Mortgaged Property, (g) with respect to the Borrowers, the violation of any 

  

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Environmental Law, the Release or threatened Release of any Hazardous Substances or any action, suit, proceeding or investigation brought or threatened with
respect to any Hazardous Substances (including, but not limited to, claims with respect to wrongful death, personal injury, nuisance or damage to property), and (h) any use of Intralinks, SyndTrak or any other system for the dissemination and
sharing of Loan Documents and information pertaining to the Loans, in each case including, without limitation, the reasonable fees and disbursements of counsel incurred in connection with any such investigation, litigation or other proceeding;
provided, however, that the Borrowers shall not be obligated under this §16 to indemnify or hold harmless any Person for all liabilities, claims, actions, suits, losses, damages and expenses of every nature and character arising
from such Person’s own gross negligence or willful misconduct as determined by a court of competent jurisdiction after the exhaustion of all applicable appeal periods. If, and to the extent that the obligations of the Borrowers under this
§16 are unenforceable for any reason, the Borrowers hereby agree to make the maximum contribution to the payment in satisfaction of such obligations which is permissible under applicable law. The provisions of this §16 shall survive the
repayment of the Loans and the termination of the obligations of the Lenders hereunder. 
  

	§17.	SURVIVAL OF COVENANTS, ETC. 

 Except as otherwise provided
in §15, all covenants, agreements, representations and warranties made herein, in the Notes, in any of the other Loan Documents or in any documents or other papers delivered by or on behalf of the Borrowers or the Guarantor pursuant hereto or
thereto shall be deemed to have been relied upon by the Lenders and the Agent, notwithstanding any investigation heretofore or hereafter made by any of them, and shall survive the making by the Lenders of any of the Loans, as herein contemplated,
and shall continue in full force and effect so long as any amount due under this Agreement or the Notes or any of the other Loan Documents remains outstanding or any Lender has any obligation to make any Loans. Except as otherwise provided in
§15, the indemnification obligations of the Borrowers provided herein and in the other Loan Documents shall survive the full repayment of amounts due and the termination of the obligations of the Lenders hereunder and thereunder to the extent
provided herein and therein. All statements contained in any certificate delivered to any Lender or the Agent at any time by or on behalf of the Borrowers or the Guarantor pursuant hereto or in connection with the transactions contemplated hereby
shall constitute representations and warranties by such Person hereunder. 
  

	§18.	ASSIGNMENT AND PARTICIPATION. 

 §18.1 Conditions to
Assignment by Lenders. Except as provided herein, each Lender may assign to one or more banks or other entities all or a portion of its interests, rights and obligations under this Agreement (including all or a portion of its Commitment
Percentage and Commitment and the same portion of the Loans at the time owing to it and the Notes held by it); provided that (a) the Agent and, so long as no Default or Event of Default exists hereunder, the Borrowers shall have each
given their prior written consent to such assignment, which consent shall not be unreasonably withheld or delayed (provided that such consent shall not be required for any assignment to another Lender, to a lender which is and remains under common
control with the assigning Lender or to a wholly-owned Subsidiary of such Lender, provided that such assignee shall remain a wholly-owned Subsidiary of such Lender), (b) each such assignment 

  

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shall be of a constant, and not a varying, percentage of all the assigning Lender’s rights and obligations under this Agreement, (c) the parties to
such assignment shall execute and deliver to the Agent, for recording in the Register (as hereinafter defined) an Assignment and Acceptance Agreement in the form of Exhibit C annexed hereto, together with any Notes subject to such assignment,
(d) in no event shall any assignment be to any Person controlling, controlled by or under common control with, or which is not otherwise free from influence or control by, any Borrower or the Guarantor, (e) such assignee shall have a net
worth as of the date of such assignment of not less than $100,000,000.00 (unless otherwise approved by Agent and, so long as no Default or Event of Default exists hereunder, Borrowers), (f) such assignee shall acquire an interest in the Loans
of not less than $5,000,000.00 and integral multiples of $1,000,000.00 in excess thereof (or if less, the remaining Loans of the assignor), unless waived by the Agent, and so long as no Default or Event of Default exists hereunder, the Borrowers,
and (g) such assignee shall be subject to the terms of any intercreditor agreement among the Lenders and the Agent. Upon execution, delivery, acceptance and recording of such Assignment and Acceptance Agreement, (i) the assignee thereunder
shall be a party hereto and all other Loan Documents executed by the Lenders and, to the extent provided in such Assignment and Acceptance Agreement, have the rights and obligations of a Lender hereunder, (ii) the assigning Lender shall, upon
payment to the Agent of the registration fee referred to in §18.2, be released from its obligations under this Agreement arising after the effective date of such assignment with respect to the assigned portion of its interests, rights and
obligations under this Agreement, and (iii) the Agent may unilaterally amend Schedule 1.1 to reflect such assignment. In connection with each assignment, the assignee shall represent and warrant to the Agent, the assignor and each other
Lender as to whether such assignee is controlling, controlled by, under common control with or is not otherwise free from influence or control by, any Borrower or the Guarantor. 
 §18.2 Register. The Agent shall maintain on behalf of the Borrowers a copy of each assignment delivered to it and a register or similar list
(the “Register”) for the recordation of the names and addresses of the Lenders and the Commitment Percentages of and principal amount of the Loans owing to the Lenders from time to time. The entries in the Register shall be conclusive, in
the absence of manifest error, and the Borrowers, the Guarantor, the Agent and the Lenders may treat each Person whose name is recorded in the Register as a Lender hereunder for all purposes of this Agreement. The Register shall be available for
inspection by the Borrowers and the Lenders at any reasonable time and from time to time upon reasonable prior notice. Upon each such recordation, the assigning Lender agrees to pay to the Agent a registration fee in the sum of $3,500.00.

 §18.3 New Notes. Upon its receipt of an Assignment and Acceptance Agreement executed by the parties to such assignment,
together with each Note subject to such assignment, the Agent shall record the information contained therein in the Register. Within five (5) Business Days after receipt of notice of such assignment from Agent, the Borrowers, at their own
expense, shall execute and deliver to the Agent, in exchange for each surrendered Note, a new Note to the order of such assignee in an amount equal to the amount assigned to such assignee pursuant to such Assignment and Acceptance Agreement and, if
the assigning Lender has retained some portion of its obligations hereunder, a new Note to the order of the assigning Lender in an amount equal to the amount retained by it hereunder. Such new Notes shall provide that they are replacements for the
surrendered Notes, shall be in an aggregate principal amount equal to the aggregate principal amount of the surrendered Notes, shall be dated the effective 

  

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date of such Assignment and Acceptance Agreement and shall otherwise be in substantially the form of the assigned Notes. The surrendered Notes shall be
canceled and returned to the Borrowers. 
 §18.4 Participations. Each Lender may sell participations to one or more Lenders or
other entities in all or a portion of such Lender’s rights and obligations under this Agreement and the other Loan Documents; provided that (a) any such sale or participation shall not affect the rights and duties of the selling
Lender hereunder, (b) such participation shall not entitle such participant to any rights or privileges under this Agreement or any Loan Documents, (c) such participation shall not entitle the participant to the right to approve waivers,
amendments or modifications, (d) such participant shall have no direct rights against the Borrowers, (e) such sale is effected in accordance with all applicable laws, and (f) such participant shall not be a Person controlling,
controlled by or under common control with, or which is not otherwise free from influence or control by any Borrower or the Guarantor. Any Lender which sells a participation shall promptly notify the Agent of such sale and the identity of the
purchaser of such interest. 
 §18.5 Pledge by Lender. Any Lender may at any time pledge all or any portion of its interest and
rights under this Agreement (including all or any portion of its Note) to any of the twelve Federal Reserve Banks organized under §4 of the Federal Reserve Act, 12 U.S.C. §341 or to such other Person as the Agent may approve to secure
obligations of such lenders. No such pledge or the enforcement thereof shall release the pledgor Lender from its obligations hereunder or under any of the other Loan Documents. 
 §18.6 No Assignment by Borrowers. Neither Borrower shall assign or transfer any of its rights or obligations under this Agreement without the
prior written consent of each of the Lenders. 
 §18.7 Disclosure. Borrowers agree to promptly cooperate with any Lender in
connection with any proposed assignment or participation of all or any portion of its Commitment. The Borrowers agree that in addition to disclosures made in accordance with standard banking practices any Lender may disclose information obtained by
such Lender pursuant to this Agreement to assignees or participants and potential assignees or participants hereunder; provided, however, Lender and Agent acknowledge that all information disseminated by Borrower or Guarantor that is not filed with
the SEC is deemed confidential. Each Lender agrees for itself that it shall use reasonable efforts in accordance with its customary procedures to hold confidential all non-public information obtained from Borrowers or the Guarantor, and shall use
reasonable efforts in accordance with its customary procedures to not disclose such information to any other Person, it being understood and agreed that, notwithstanding the foregoing, a Lender may make (a) disclosures to its participants
(provided such Persons are advised of the provisions of this §18.7), (b) disclosures to its directors, officers, employees, Affiliates, accountants, appraisers, legal counsel and other professional advisors of such Lender (provided that
such Persons who are not employees of such Lender are advised of the provision of this §18.7), (c) disclosures customarily provided or reasonably required by any potential or actual bona fide assignee, transferee or participant or their
respective directors, officers, employees, Affiliates, accountants, appraisers, legal counsel and other professional advisors in connection with a potential or actual assignment or transfer by such Lender of any Loans or any participations therein
(provided such Persons are advised of the provisions of this §18.7), 

  

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(d) disclosures to bank regulatory authorities or self-regulatory bodies with jurisdiction over such Lender, or (e) disclosures required or
requested by any other governmental authority or representative thereof or pursuant to legal process; provided that, unless specifically prohibited by applicable law or court order, each Lender shall notify Borrowers of any request by any
governmental authority or representative thereof prior to disclosure (other than any such request in connection with any examination of such Lender by such government authority) for disclosure of any such non-public information prior to disclosure
of such information. Non-public information shall not include any information which is or subsequently becomes publicly available other than as a result of a disclosure of such information by a Lender, or prior to the delivery to such Lender is
within the possession of such Lender if such information is not known by such Lender to be subject to another confidentiality agreement with or other obligations of secrecy to any Borrower or the Guarantor, as applicable, or is disclosed with the
prior approval of Borrowers. Nothing herein shall prohibit the disclosure of non-public information to the extent necessary to enforce the Loan Documents. 
 §18.8 Amendments to Loan Documents. Upon any such assignment or participation, the Borrowers and the Guarantor shall, upon the request of the Agent, enter into such documents as may be reasonably required
by the Agent to modify the Loan Documents to reflect such assignment or participation. 
  

	§19.	NOTICES. 

 Each notice, demand, election or request
provided for or permitted to be given pursuant to this Agreement (hereinafter in this §19 referred to as “Notice”), but specifically excluding to the maximum extent permitted by law any notices of the institution or commencement of
foreclosure proceedings, must be in writing and shall be deemed to have been properly given or served by personal delivery or by sending same by overnight courier or by depositing same in the United States Mail, postpaid and registered or certified,
return receipt requested, or as expressly permitted herein, by telegraph, telecopy, telefax or telex, and addressed as follows: 
  

 69 

 If to the Agent or KeyBank: 
 KeyBank National Association 
 1200 Abernathy Road, N.E. 
 Suite 1550 
 Atlanta, Georgia 30328

 Attn: Ms. Jennifer Wells 
 Telecopy No.: (770) 510-2195 
 With a copy to: 
 McKenna Long & Aldridge LLP 
 Suite 5300 
 303 Peachtree Street, N.E. 
 Atlanta, Georgia
30308 
 Attn: William F. Timmons, Esq. 
 Telecopy No.: (404) 527-4198 
 If to the Borrowers: 
 c/o Comstock Homebuilding Companies, Inc. 
 11465 Sunset Hills Road, 5th Floor 
 Reston, Virginia 20190 
 Attn: Christopher Clemente 
 Telecopy No.: (703) 760-1520 
 With a copy to: 
 c/o Comstock Homebuilding
Companies, Inc. 
 11465 Sunset Hills Road, 5th Floor 
 Reston, Virginia 20190 
 Attn: Jubal Thompson, Esq. 
 Telecopy No.:
(703) 760-1520 
 to any other Lender which is a party hereto, at the address for such Lender set forth on its signature page hereto, and to any Lender
which may hereafter become a party to this Agreement, at such address as may be designated by such Lender. Each Notice shall be effective upon being personally delivered or upon being sent by overnight courier or upon being deposited in the United
States Mail as aforesaid, or if transmitted by telegraph, telecopy, telefax or telex is permitted, upon being sent and confirmation of receipt. The time period in which a response to such Notice must be given or any action taken with respect thereto
(if any), however, shall commence to run from the date of receipt if personally delivered or sent by overnight courier, or if so deposited in the United States Mail, the earlier of three (3) Business Days following such deposit or the date of
receipt as disclosed on the return receipt. Rejection or other refusal to accept or the inability to deliver because of changed address for which no notice was given shall be deemed to be receipt of the Notice sent. By giving at least fifteen
(15) days prior Notice thereof, a Borrower, a Lender or Agent shall have the right from time to time and at any time during the term of this Agreement to change their respective addresses and each shall have the right to specify as its address
any other address within the United States of America. 
  

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	§20.	RELATIONSHIP. 

 Neither the Agent nor any Lender has any
fiduciary relationship with or fiduciary duty to the Borrowers or the Guarantor arising out of or in connection with this Agreement or the other Loan Documents or the transactions contemplated hereunder and thereunder, and the relationship between
each Lender and Agent, and the Borrowers is solely that of a lender and borrower, and nothing contained herein or in any of the other Loan Documents shall in any manner be construed as making the parties hereto partners, joint venturers or any other
relationship other than lender and borrower. 
  

	§21.	GOVERNING LAW; CONSENT TO JURISDICTION AND SERVICE. 

 THIS AGREEMENT AND EACH OF THE OTHER LOAN DOCUMENTS, EXCEPT AS OTHERWISE SPECIFICALLY PROVIDED HEREIN OR THEREIN, SHALL BE GOVERNED BY THE LAWS OF THE COMMONWEALTH OF VIRGINIA. THE BORROWERS AGREE THAT ANY SUIT FOR THE ENFORCEMENT OF
THIS AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS MAY BE BROUGHT IN ANY COURT OF COMPETENT JURISDICTION IN THE COMMONWEALTH OF VIRGINIA (INCLUDING ANY FEDERAL COURT SITTING THEREIN). EACH BORROWER FURTHER ACCEPTS, GENERALLY AND UNCONDITIONALLY, THE
NON EXCLUSIVE JURISDICTION OF SUCH COURTS AND ANY RELATED APPELLATE COURT AND IRREVOCABLY (i) AGREES TO BE BOUND BY ANY JUDGMENT RENDERED THEREBY WITH RESPECT TO THIS AGREEMENT AND ANY OF THE OTHER LOAN DOCUMENTS AND (ii) WAIVES ANY
OBJECTION IT MAY NOW OR HEREAFTER HAVE AS TO THE VENUE OF ANY SUCH PROCEEDING BROUGHT IN SUCH A COURT OR THAT SUCH A COURT IS AN INCONVENIENT FORUM. EACH BORROWER FURTHER AGREES THAT SERVICE OF PROCESS IN ANY SUCH SUIT MAY BE MADE UPON SUCH BORROWER
BY MAIL AT THE ADDRESS SPECIFIED IN SECTION 19 HEREOF. IN ADDITION TO THE COURTS OF THE COMMONWEALTH OF VIRGINIA OR ANY FEDERAL COURT SITTING THEREIN, THE AGENT OR ANY LENDER MAY BRING ACTION(S) FOR ENFORCEMENT ON A NONEXCLUSIVE BASIS WHERE ANY
COLLATERAL OR ASSETS OF BORROWERS OR THE GUARANTOR EXIST AND THE BORROWERS CONSENT TO THE NONEXCLUSIVE JURISDICTION OF SUCH COURTS AND THE SERVICE OF PROCESS IN ANY SUCH SUIT BEING MADE UPON THE BORROWERS BY MAIL AT THE ADDRESS SPECIFIED IN SECTION
19 HEREOF. 
  

	§22.	HEADINGS. 

 The captions in this Agreement are for
convenience of reference only and shall not define or limit the provisions hereof. 
  

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	§23.	COUNTERPARTS. 

 This Agreement and any amendment hereof may
be executed in several counterparts and by each party on a separate counterpart, each of which when so executed and delivered shall be an original, and all of which together shall constitute one instrument. In proving this Agreement it shall not be
necessary to produce or account for more than one such counterpart signed by the party against whom enforcement is sought. 
  

	§24.	ENTIRE AGREEMENT, ETC. 

 This Agreement and the Loan
Documents is intended by the parties as the final, complete and exclusive statement of the transactions evidenced by this Agreement and the Loan Documents. All prior or contemporaneous promises, agreements and understandings, whether oral or
written, are deemed to be superceded by this Agreement and the Loan Documents, and no party is relying on any promise, agreement or understanding not set forth in this Agreement and the Loan Documents. Neither this Agreement nor any term hereof may
be changed, waived, discharged or terminated, except as provided in §27. 
  

	§25.	WAIVER OF JURY TRIAL AND CERTAIN DAMAGE CLAIMS. 

 EACH
OF THE BORROWERS, THE AGENT AND THE LENDERS HEREBY WAIVES ITS RIGHT TO A JURY TRIAL WITH RESPECT TO ANY ACTION OR CLAIM ARISING OUT OF ANY DISPUTE IN CONNECTION WITH THIS AGREEMENT, ANY NOTE OR ANY OF THE OTHER LOAN DOCUMENTS, ANY RIGHTS OR
OBLIGATIONS HEREUNDER OR THEREUNDER OR THE PERFORMANCE OF SUCH RIGHTS AND OBLIGATIONS. EACH BORROWER HEREBY WAIVES ANY RIGHT IT MAY HAVE TO CLAIM OR RECOVER IN ANY SUCH LITIGATION ANY SPECIAL, INDIRECT OR CONSEQUENTIAL DAMAGES AND TO THE EXTENT
PERMITTED BY APPLICABLE LAW, PUNITIVE OR ANY DAMAGES OTHER THAN, OR IN ADDITION TO, ACTUAL DAMAGES. EACH OF THE BORROWERS (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY LENDER OR THE AGENT HAS REPRESENTED, EXPRESSLY OR
OTHERWISE, THAT SUCH LENDER OR THE AGENT WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVERS AND (B) ACKNOWLEDGES THAT THE AGENT AND THE LENDERS HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN
DOCUMENTS TO WHICH THEY ARE PARTIES BY, AMONG OTHER THINGS, THE WAIVERS AND CERTIFICATIONS CONTAINED IN THIS §25. EACH OF THE BORROWERS, THE AGENT AND THE LENDERS ACKNOWLEDGE THAT IT HAS HAD AN OPPORTUNITY TO REVIEW THIS §25 WITH LEGAL
COUNSEL AND THAT EACH OF THE BORROWERS , THE AGENT AND THE LENDERS AGREES TO THE FOREGOING AS ITS FREE, KNOWING AND VOLUNTARY ACT. 
  

	§26.	DEALINGS WITH THE BORROWERS. 

 The Agent, the Lenders and
their affiliates may accept deposits from, extend credit to, invest in, act as trustee under indentures of, serve as financial advisor of, and generally engage in any kind of banking, trust or other business with the Borrowers and the Guarantor or
any of their Affiliates regardless of the capacity of the Agent or the Lender hereunder. The Lenders 

  

 72 

 
acknowledge that, pursuant to such activities, KeyBank or its Affiliates may receive information regarding such Persons (including information that may be
subject to confidentiality obligations in favor of such Person) and acknowledge that the Agent shall be under no obligation to provide such information to them. 
  

	§27.	CONSENTS, AMENDMENTS, WAIVERS, ETC. 

 Except as otherwise
expressly provided in this Agreement, any consent or approval required or permitted by this Agreement may be given, and any term of this Agreement or of any other instrument related hereto or mentioned herein may be amended, and the performance or
observance by the Borrowers or the Guarantor of any terms of this Agreement or such other instrument or the continuance of any Default or Event of Default may be waived (either generally or in a particular instance and either retroactively or
prospectively) with, but only with, the written consent of the Majority Lenders. Notwithstanding the foregoing, none of the following may occur without the written consent of each Lender: (a) a reduction in the rate of interest on the Notes;
(b) an increase in the amount of the Commitments of the Lenders; (c) a forgiveness, reduction or waiver of the principal of any unpaid Loan or any interest thereon or fee payable under the Loan Documents; (d) a change in the amount of
any fee payable to a Lender hereunder; (e) the postponement of any date fixed for any payment of principal of or interest on the Loan; (f) an extension of the Maturity Date; (g) a change in the manner of distribution of any payments
to the Lenders or the Agent; (h) the release of the Borrower or any Guarantor or any Collateral except as otherwise provided in §5.2; (i) an amendment of the definition of Majority Lenders or of any requirement for consent by all of
the Lenders; (j) any modification to require a Lender to fund a pro rata share of a request for an advance of the Loan made by a Borrower other than based on its Commitment Percentage; (k) an amendment to this §27; or (l) an
amendment of any provision of this Agreement or the Loan Documents which requires the approval of all of the Lenders or the Majority Lenders to require a lesser number of Lenders to approve such action. The provisions of §14 may not be amended
without the written consent of the Agent. The Borrowers agree to enter into, and to cause the Guarantor to enter into, such modifications or amendments of this Agreement or the other Loan Documents as reasonably may be requested by KeyBank in
connection with the syndication of the Loan, provided that no such amendment or modification materially affects or increases any of the obligations of the Borrowers or Guarantor hereunder. No waiver shall extend to or affect any obligation
not expressly waived or impair any right consequent thereon. No course of dealing or delay or omission on the part of the Agent or any Lender in exercising any right shall operate as a waiver thereof or otherwise be prejudicial thereto. No notice to
or demand upon any of the Borrowers or the Guarantor shall entitle the Borrowers or the Guarantor to other or further notice or demand in similar or other circumstances. 
  

	§28.	SEVERABILITY. 

 The provisions of this Agreement are
severable, and if any one clause or provision hereof shall be held invalid or unenforceable in whole or in part in any jurisdiction, then such invalidity or unenforceability shall affect only such clause or provision, or part thereof, in such
jurisdiction, and shall not in any manner affect such clause or provision in any other jurisdiction, or any other clause or provision of this Agreement in any jurisdiction. 
  

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	§29.	TIME OF THE ESSENCE. 

 Time is of the essence with respect
to each and every covenant, agreement and obligation of the Borrowers and the Guarantor under this Agreement and the other Loan Documents. 
  

	§30.	NO UNWRITTEN AGREEMENTS. 

 THE LOAN DOCUMENTS REPRESENT
THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES. ANY ADDITIONAL TERMS OF THE AGREEMENT
BETWEEN THE PARTIES ARE SET FORTH BELOW. 
  

	§31.	REPLACEMENT NOTES. 

 Upon receipt of evidence reasonably
satisfactory to the Borrowers of the loss, theft, destruction or mutilation of any Note, and in the case of any such loss, theft or destruction, upon delivery of an indemnity agreement reasonably satisfactory to Borrowers or, in the case of any such
mutilation, upon surrender and cancellation of the applicable Note, the Borrowers will execute and deliver, in lieu thereof, a replacement Note, or identical in form and substance to the applicable Note and dated as of the date of the applicable
Note and upon such execution and delivery all references in the Loan Documents to such Note shall be deemed to refer to such replacement Note. 
  

	§32.	NO THIRD PARTIES BENEFITED. 

 This Agreement and the other
Loan Documents are made and entered into for the sole protection and legal benefit of the Borrowers, the Lenders, the Agent and their permitted successors and assigns, and no other Person shall be a direct or indirect legal beneficiary of, or have
any direct or indirect cause of action or claim in connection with, this Agreement or any of the other Loan Documents. All conditions to the performance of the obligations of the Agent and the Lenders under this Agreement, including the obligation
to make Loans, are imposed solely and exclusively for the benefit of the Agent and the Lenders and no other Person shall have standing to require satisfaction of such conditions in accordance with their terms or be entitled to assume that the Agent
and the Lenders will refuse to make Loans in the absence of strict compliance with any or all thereof and no other Person shall, under any circumstances, be deemed to be a beneficiary of such conditions, any and all of which may be freely waived in
whole or in part by the Agent and the Lenders at any time if in their sole discretion they deem it desirable to do so. In particular, the Agent and the Lenders make no representations and assume no obligations as to third parties concerning the
quality of the construction by the Borrowers of any development or the absence therefrom of defects. 
  

	§33.	PATRIOT ACT. 

 Each Lender and the Agent (for itself and
not on behalf of any Lender) hereby notifies Borrowers and Guarantor that, pursuant to the requirements of the Patriot Act, it is required to obtain, verify and record information that identifies each Borrower, which information includes names and
addresses and other information that will allow such Lender or the Agent, as applicable, to identify Borrowers in accordance with the Patriot Act. 
  

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	§34.	JOINT AND SEVERAL LIABILITY 

 Each of the Borrowers
covenants and agrees that each and every covenant and obligation of any Borrower hereunder and under the other Loan Documents shall be the joint and several obligations of each Borrower. 
  

	§35.	ADDITIONAL AGREEMENTS CONCERNING OBLIGATIONS OF BORROWERS 

 §35.1 Attorney-in-Fact. For the purpose of implementing the joint borrower provisions of the Loan Documents, the Borrowers hereby irrevocably appoint each other as their agent and attorney-in-fact for all purposes of the Loan
Documents, including the giving and receiving of notices and other communications. 
 §35.2 Accommodation. It is understood and
agreed that the handling of this credit facility on a joint borrowing basis as set forth in this Agreement is solely as an accommodation to the Borrowers and at their request. Accordingly, the Agent and the Lenders are entitled to rely, and shall be
exonerated from any liability for relying upon, any Loan Request or any other request or communication made by a purported officer of any Borrower without the need for any consent or other authorization of any other Borrower and upon any information
or certificate provided on behalf of any Borrower by a purported officer of such Borrower, and any such request or other action shall be fully binding on each Borrower as if made by it. 
 §35.3 Waiver of Automatic or Supplemental Stay. Each of the Borrowers represents, warrants and covenants to the Lenders and Agent that in the
event of the filing of any voluntary or involuntary petition in bankruptcy by or against the other of the Borrowers at any time following the execution and delivery of this Agreement, neither of the Borrowers shall seek a supplemental stay or any
other relief, whether injunctive or otherwise, pursuant to Section 105 of the Bankruptcy Code or any other provision of the Bankruptcy Code, to stay, interdict, condition, reduce or inhibit the ability of the Lenders or Agent to enforce any
rights it has by virtue of this Agreement, the Loan Documents, or at law or in equity, or any other rights the Lenders or Agent has, whether now or hereafter acquired, against the other Borrower or against any property owned by such other Borrower.

 §35.4 Waiver of Defenses. Each of the Borrowers hereby waives and agrees not to assert or take advantage of any defense based
upon: 
 (a) Any right to require Agent or the Lenders to proceed against the other Borrower or any other Person or to proceed against or
exhaust any security held by Agent or the Lenders at any time or to pursue any other remedy in Agent’s or any Lender’s power or under any other agreement before proceeding against a Borrower hereunder or under any other Loan Document;

 (b) The defense of the statute of limitations in any action hereunder or the payment or performance of any of the Obligations; 

 

 75 

 (c) Any defense that may arise by reason of the incapacity, lack of authority, death or disability of any
other Person or Persons or the failure of Agent or any Lender to file or enforce a claim against the estate (in administration, bankruptcy or any other proceeding) of any other Person or Persons; 
 (d) Any failure on the part of Agent or any Lender to ascertain the extent or nature of any Collateral or any insurance or other rights with respect
thereto, or the liability of any party liable under the Loan Documents or the obligations evidenced or secured thereby; 
 (e) Demand,
presentment for payment, notice of nonpayment, protest, notice of protest and all other notices of any kind (except for such notices as are specifically required to be provided to Borrowers pursuant to the Loan Documents), or the lack of any
thereof, including, without limiting the generality of the foregoing, notice of the existence, creation or incurring of any new or additional indebtedness or obligation or of any action or non-action on the part of any Borrower, Agent, any Lender,
any endorser or creditor of Borrowers or on the part of any other Person whomsoever under this or any other instrument in connection with any obligation or evidence of indebtedness held by Agent or any Lender; 
 (f) Any defense based upon an election of remedies by Agent or any Lender, including any election to proceed by judicial or nonjudicial foreclosure of
any security, whether real property or personal property security, or by deed in lieu thereof, and whether or not every aspect of any foreclosure sale is commercially reasonable, or any election of remedies, including remedies relating to real
property or personal property security, which destroys or otherwise impairs the subrogation rights of a Borrower or the rights of a Borrower to proceed against the other Borrower for reimbursement, or both; 
 (g) Any right or claim of right to cause a marshaling of the assets of Borrowers; 
 (h) Any principle or provision of law, statutory or otherwise, which is or might be in conflict with the terms and provisions of this Agreement;

 (i) Any duty on the part of Agent or any Lender to disclose to Borrowers any facts Agent or any Lender may now or hereafter know about
Borrowers or the Collateral, regardless of whether Agent or any Lender has reason to believe that any such facts materially increase the risk beyond that which each Borrower intends to assume or has reason to believe that such facts are unknown to
Borrowers or has a reasonable opportunity to communicate such facts to Borrowers, it being understood and agreed that each Borrower is fully responsible for being and keeping informed of the financial condition of the other Borrower, of the
condition of the Mortgaged Property or the Collateral and of any and all circumstances bearing on the risk that liability may be incurred by Borrowers hereunder and under the other Loan Documents; 
 (j) Any lack of notice of disposition or of manner of disposition of any Collateral; 
 (k) Any inaccuracy of any representation or other provision contained in any Loan Document; 
  

 76 

 (l) Any sale or assignment of the Loan Documents, or any interest therein; 
 (m) Any sale or assignment by a Borrower or any other Person of any Collateral, or any portion thereof or interest therein, whether or not consented to
by Agent or any Lender; 
 (n) Any invalidity, irregularity or unenforceability, in whole or in part, of any one or more of the Loan
Documents; 
 (o) Any lack of commercial reasonableness in dealing with the Collateral; 
 (p) Any deficiencies in the Collateral or any deficiency in the ability of Agent or any Lender to collect or to obtain performance from any Persons now
or hereafter liable for the payment and performance of any obligation hereby guaranteed; 
 (q) An assertion or claim that the automatic stay
provided by 11 U.S.C. §362 (arising upon the voluntary or involuntary bankruptcy proceeding of the other Borrower) or any other stay provided under any other debtor relief law (whether statutory, common law, case law or otherwise) of any
jurisdiction whatsoever, now or hereafter in effect, which may be or become applicable, shall operate or be interpreted to stay, interdict, condition, reduce or inhibit the ability of Agent or any Lender to enforce any of its rights, whether now or
hereafter required, which Agent or any Lender may have against a Borrower or the Collateral owned by it; 
 (r) Any modifications of the Loan
Documents or any obligation of Borrowers relating to the Loan by operation of law or by action of any court, whether pursuant to the Bankruptcy Code, or any other debtor relief law (whether statutory, common law, case law or otherwise) of any
jurisdiction whatsoever, now or hereafter in effect, or otherwise; 
 (s) Any release of a Borrower or of any other Person from performance
or observance of any of the agreements, covenants, terms or conditions contained in any of the Loan Documents by operation of law, Agent’s or the Lenders’ voluntary act or otherwise; 
 (t) Any action, occurrence, event or matter consented to by Borrowers under any provision hereof, or otherwise; 
 (u) The dissolution or termination of existence of any Borrower; 
 (v) Either with or without notice to Borrowers, any renewal, extension, modification, amendment or another changes in the Obligations, including but not limited to any material alteration of the terms of payment or
performance of the Obligations; 
 (w) Any defense of Borrowers, including without limitation, the invalidity, illegality or unenforceability
of any of the Obligations; or 
 (x) To the fullest extent permitted by law, any other legal, equitable or surety defenses whatsoever to
which Borrowers might otherwise be entitled, it being the intention that the obligations of Borrowers hereunder are absolute, unconditional and irrevocable. 
  

 77 

 §35.5 Waiver. Each of the Borrowers waives, to the fullest extent that each may lawfully so
do, the benefit of all appraisement, valuation, stay, extension, homestead, exemption and redemption laws which such Person may claim or seek to take advantage of in order to prevent or hinder the enforcement of any of the Loan Documents or the
exercise by Lenders or Agent of any of their respective remedies under the Loan Documents and, to the fullest extent that the Borrowers may lawfully so do, such Person waives any and all right to have the assets comprised in the security intended to
be created by the Security Documents (including, without limitation, those assets owned by the other of the Borrowers) marshaled upon any foreclosure of the lien created by such Security Documents. Each of the Borrowers further agrees that the
Lenders and Agent shall be entitled to exercise their respective rights and remedies under the Loan Documents or at law or in equity in such order as they may elect. Without limiting the foregoing, each of the Borrowers further agrees that upon the
occurrence of an Event of Default, the Lenders and Agent may exercise any of such rights and remedies without notice to either of the Borrowers except as required by law or the Loan Documents and agrees that neither the Lenders nor Agent shall be
required to proceed against the other of the Borrowers or any other person or to proceed against or to exhaust any other security held by the Lenders or Agent at any time or to pursue any other remedy in Lender’s or Agent’s power or under
any of the Loan Documents before proceeding against a Borrower or its assets under the Loan Documents. 
 §35.6 Subordination.
Each of the Borrowers hereby expressly waives any right of contribution from or indemnity against the other, whether at law or in equity, arising from any payments made by such Person pursuant to the terms of this Agreement or the Loan Documents,
and each of the Borrowers acknowledges that it has no right whatsoever to proceed against the other for reimbursement of any such payments. In connection with the foregoing, each of the Borrowers expressly waives any and all rights of subrogation to
the Lenders or Agent against the other of the Borrowers, and each of the Borrowers hereby waives any rights to enforce any remedy which the Lenders or Agent may have against the other of the Borrowers and any rights to participate in any Collateral
or any other assets of the other Borrower. In addition to and without in any way limiting the foregoing, each of the Borrowers hereby subordinates any and all indebtedness it may now or hereafter owe to such other Borrower to all indebtedness of the
Borrowers to the Lenders and Agent, and agrees with the Lenders and Agent that neither of the Borrowers shall claim any offset or other reduction of such Borrower’s obligations hereunder because of any such indebtedness and shall not take any
action to obtain any of the Collateral or any other assets of the other Borrower. 
  

	§36.	CONFLICT. 

 In the event of any express inconsistency
between the terms of this Agreement and the other Loan Documents, the terms of this Agreement shall control. 
  

	§37.	AMENDMENT AND RESTATEMENT OF ORIGINAL LOAN AGREEMENTS. 

 This Agreement amends and restates in its entirety the Original Potomac Loan Agreement and the Original Station View Loan Agreement. The loan documents relating to the loans contemplated by the Original Station View Loan Agreement and the
Original Potomac Loan Agreement other than the loan agreement, promissory note(s) and deeds of trust, which are each being amended and restated, are hereby terminated. Borrowers acknowledges the 

  

 78 

 
assignments evidenced by the Assignment of Potomac Loan Documents and the Assignment of Station View Loan Documents. Furthermore, in order to induce Agent
and the Lenders to accept such assignments, each Borrower, for itself and its heirs, successors and assigns, represents and warrants to Agent and the Lenders that such Borrower has no defenses, setoffs, claims, counterclaims or causes of action of
any kind or nature whatsoever with respect to the loan documents more particularly described therein as of the date hereof, the administration or funding of the existing loans on the Station View Project or the Potomac Project, as applicable or with
respect to any acts or omissions of the existing lender, and each Borrower does hereby expressly waive, release and relinquish any and all such defenses, setoffs, claims, counterclaims and causes of action, if any, whether now known or hereafter
discovered. 
 [SIGNATURES BEGIN ON FOLLOWING PAGE] 
  

 79 

 IN WITNESS WHEREOF, each of the undersigned have caused this Agreement to be executed by its duly
authorized representatives as of the date first set forth above. 
  

					
	BORROWERS:
	
	 COMSTOCK STATION VIEW, L.C.,
 a
Virginia limited liability company

		
	By:	 	Comstock Homebuilding Companies, Inc., a Delaware corporation, its Manager
			
		 	By:	 	  

		 	Name:	 	Bruce Labovitz
		 	Title:	 	Chief Financial Officer
		 		 	(SEAL)
	
	 COMSTOCK POTOMAC YARD, L.C.,
 a
Virginia limited liability company

		
	 By:
	 	Comstock Homebuilding Companies, Inc., a Delaware corporation, its Manager
			
		 	By:	 	  

		 	Name:	 	Bruce Labovitz
		 	Title:	 	Chief Financial Officer
		 		 	(SEAL)
	
	AGENT AND LENDERS:
	
	 KEYBANK NATIONAL ASSOCIATION,
 individually and as Agent

		
	By:	 	  

	Name:	 	  

	Title:	 	  

  

 80 

 EXHIBIT A 
 FORM OF AMENDED AND RESTATED NOTE 
  

			
	$                    	 	March     , 2008

 FOR VALUE RECEIVED, the undersigned, COMSTOCK STATION VIEW, L.C., a Virginia limited
liability company, and COMSTOCK POTOMAC YARD, L.C., a Virginia limited liability company (collectively, “Maker”), hereby jointly and severally promise to pay to
                    
                                 (“Payee”), or order, in accordance with
the terms of that certain Loan Agreement, dated as of March     , 2008, as from time to time in effect, among Maker, KeyBank National Association, for itself and as Agent, and such other Lenders as may be from time to time
named therein (the “Loan Agreement”), to the extent not sooner paid, on or before the Maturity Date, the principal sum of
                     ($            ), or such amount as may be advanced by
the Payee under the Loan Agreement as a Loan with daily interest from the date thereof, computed as provided in the Loan Agreement, on the principal amount hereof from time to time unpaid, at a rate per annum on each portion of the principal amount
which shall at all times be equal to the rate of interest applicable to such portion in accordance with the Loan Agreement, and with interest on overdue principal and, to the extent permitted by applicable law, on overdue installments of interest
and late charges at the rates provided in the Loan Agreement. Interest shall be payable on the dates specified in the Loan Agreement, except that all accrued interest shall be paid at the stated or accelerated maturity hereof or upon the prepayment
in full hereof. Capitalized terms used herein and not otherwise defined herein shall have the meanings set forth in the Loan Agreement. 
 Payments hereunder shall be made to the Agent for the Payee at 127 Public Square, Cleveland, Ohio 44114-1306, or at such other address as Agent may designate from time to time. 
 This Note is one of one or more Notes evidencing borrowings under and is entitled to the benefits and subject to the provisions of the Loan Agreement.
The principal of this Note may be due and payable in whole or in part prior to the Maturity Date and is subject to mandatory prepayment in the amounts and under the circumstances set forth in the Loan Agreement, and may be prepaid in whole or from
time to time in part, all as set forth in the Loan Agreement. 
 Notwithstanding anything in this Note to the contrary, all agreements
between the undersigned Maker and the Lenders and the Agent, whether now existing or hereafter arising and whether written or oral, are hereby limited so that in no contingency, whether by reason of acceleration of the maturity of any of the
Obligations or otherwise, shall the interest contracted for, charged or received by the Lenders exceed the maximum amount permissible under applicable law. If, from any circumstance whatsoever, interest would otherwise be payable to the Lenders in
excess of the maximum lawful amount, the interest payable to the Lenders shall be reduced to the maximum amount permitted under applicable law; and if from any circumstance the Lenders shall ever receive anything of value deemed interest by
applicable law in excess of the maximum lawful amount, an amount equal to any excessive interest shall be applied to the reduction of the principal balance of the Obligations of the undersigned Maker and to the payment of interest or, if such
excessive interest exceeds the unpaid balance of principal of the Obligations of the undersigned Maker, such excess shall be refunded to the undersigned 

  

 Exhibit A - Page 1 

 
Maker. All interest paid or agreed to be paid to the Lenders shall, to the extent permitted by applicable law, be amortized, prorated, allocated and spread
throughout the full period until payment in full of the principal of the Obligations of the undersigned Maker (including the period of any renewal or extension thereof) so that the interest thereon for such full period shall not exceed the maximum
amount permitted by applicable law. This paragraph shall control all agreements between the undersigned Maker and the Lenders and the Agent. 
 The undersigned Maker represents and warrants that the proceeds of this Note are being used exclusively for business or investment purposes within the meaning and intent of Section 6.1-330.75 of the Code of Virginia (1950), as amended.

 In case an Event of Default shall occur, the entire principal amount of this Note may become or be declared due and payable in the manner
and with the effect provided in said Loan Agreement. 
 This Note shall be governed by the laws of the Commonwealth of Virginia. 

The undersigned Maker and all guarantors and endorsers hereby waive presentment, demand, notice, protest, notice of intention to accelerate the
indebtedness evidenced hereby, notice of acceleration of the indebtedness evidenced hereby and all other demands and notices in connection with the delivery, acceptance, performance and enforcement of this Note, except as specifically otherwise
provided in the Loan Agreement, and assent to extensions of time of payment or forbearance or other indulgence without notice. 
 This Note
is delivered in amendment and restatement of the Original Potomac Note and the Original Station View Note. 
 IN WITNESS WHEREOF, the
undersigned has by its duly authorized officer executed this Note under seal on the day and year first above written. 
  

					
	 COMSTOCK POTOMAC YARD, L.C.,
 a
Virginia limited liability company

		
	By:	 	Comstock Homebuilding Companies, Inc., a Delaware corporation, its Manager
			
		 	By:	 	  

		 	Name:	 	  

		 	Title:	 	  

		
		 	[CORPORATE SEAL]

  

 Exhibit A - Page 2 

					
	 COMSTOCK STATION VIEW, L.C.,
 a
Virginia limited liability company

		
	By:	 	Comstock Homebuilding Companies, Inc., a Delaware corporation, its Manager
			
		 	By:	 	  

		 	Name:	 	  

		 	Title:	 	  

		 	(SEAL)

  

 Exhibit A - Page 3 

 EXHIBIT B 
 FORM OF REQUEST FOR LOAN 
 KeyBank National Association, as Agent 
 4035 Ridge Top Rd 
 5th Floor 
 Fairfax, VA 22030 
 Attn: Kas Govender 
 Ladies and Gentlemen: 
 Pursuant to the provisions of
§2.3 of the Loan Agreement dated as of March     , 2008 (as the same may hereafter be amended, the “Loan Agreement”), among Comstock Station View, L.C. and Comstock Potomac Yard, L.C. (collectively, the
“Borrowers”), KeyBank National Association for itself and as Agent, and the other Lenders from time to time party thereto, the undersigned Borrower hereby requests and certifies as follows: 
 1. Loan. The undersigned Borrower hereby requests a Loan under §2.1 of the Loan Agreement: 
 Principal Amount: $             
 Type (LIBOR Rate, Base Rate):              
 Drawdown Date:              
 Interest Period for LIBOR Rate Loans:              
 by credit to the general account of the undersigned Borrower with the Agent at the Agent’s Head Office. 
 2. Use of Proceeds. Such Loan shall be used for purposes permitted by §2.5 of the Loan Agreement. 
 3. No Default. The undersigned chief financial officer or chief accounting officer of the undersigned Borrower certifies that the Borrowers and
the Guarantor are and will be in compliance with all covenants under the Loan Documents after giving effect to the making of the Loan requested hereby and no Default or Event of Default has occurred and is continuing. 
 4. Representations True. The undersigned chief financial officer or chief accounting officer of undersigned Borrower certifies, represents and
agrees that each of the representations and warranties made by or on behalf of the Borrowers and the Guarantor, contained in the Loan Agreement, in the other Loan Documents or in any document or instrument delivered pursuant to or in connection with
the Loan Agreement was true in all material respects as of the date on which it was made and, is true in all material respects as of the date hereof and shall also be true at and as of the Drawdown Date for the Loan requested hereby, with the same
effect as if made at and as of such Drawdown Date, except to the extent of changes resulting from transactions permitted by the Loan Documents (it being understood and agreed that any representation or warranty which by its terms is made as of a
specified date shall be required to be true and correct only as of such specified date). 
  

 Exhibit B - Page 1 

 5. Other Conditions. The undersigned chief financial officer or chief accounting officer of the
undersigned Borrower certifies, represents and agrees that all other conditions to the making of the Loan requested hereby set forth in the Loan Agreement have been satisfied. 
 6. Definitions. Terms defined in the Loan Agreement are used herein with the meanings so defined. 
 IN WITNESS WHEREOF, the undersigned has duly executed this request this             
day of     , 200  . 
  

					
	 COMSTOCK STATION VIEW, L.C.,
 a
Virginia limited liability company

		
	By:	 	Comstock Homebuilding Companies, Inc., a Delaware corporation, its Manager
			
		 	By:	 	  

		 	Name:	 	  

		 	Title:	 	  

		 	(CORPORATE SEAL)
	
	 COMSTOCK POTOMAC YARD, L.C.,
 a
Virginia limited liability company

		
	By:	 	Comstock Homebuilding Companies, Inc., a Delaware corporation, its Manager
			
		 	By:	 	  

		 	Name:	 	  

		 	Title:	 	  

		 	(CORPORATE SEAL)

  

 Exhibit B - Page 2 

 EXHIBIT C 
 FORM OF ASSIGNMENT AND ACCEPTANCE AGREEMENT 
 THIS ASSIGNMENT AND ACCEPTANCE AGREEMENT (this
“Agreement”) dated                     , by and between
                                        
(“Assignor”), and
                                        
(“Assignee”). 
 WITNESSETH: 
 WHEREAS, Assignor is a party to that certain Loan Agreement, dated March     , 2008, by and among COMSTOCK STATION VIEW, L.C. and COMSTOCK POTOMAC YARD, L.C. (collectively,
“Borrowers”), the other lenders that are or may become a party thereto, and KEYBANK NATIONAL ASSOCIATION, individually and as Agent (the “Loan Agreement”); and 
 WHEREAS, Assignor desires to transfer to Assignee [Describe assigned Commitments] under the Loan Agreement and its rights with respect to
the Commitment assigned and its Outstanding Loans with respect thereto; 
 NOW, THEREFORE, for and in consideration of the sum of Ten
and No/100 Dollars ($10.00) and other good and valuable considerations, the receipt and sufficiency of which are hereby acknowledged, Assignor and Assignee hereby agree as follows: 
 1. Definitions. Terms defined in the Loan Agreement and used herein without definition shall have the respective meanings assigned to such terms in
the Loan Agreement. 
 2. Assignment. 
 (a) Subject to the terms and conditions of this Agreement and in consideration of the payment to be made by Assignee to Assignor pursuant to Paragraph 5 of this Agreement, effective as of the “Assignment
Date” (as defined in Paragraph 7 below), Assignor hereby irrevocably sells, transfers and assigns to Assignee, without recourse, (i) a portion of its Note in the amount of
$             representing a $             Loan Commitment, and a
                                 percent
(    %) Loan Commitment Percentage, (ii) a $             Loan Commitment, and a
                                 percent
(    %) Loan Commitment Percentage, and (iii) a corresponding interest in and to all of the other rights and obligations under the Loan Agreement and the other Loan Documents relating thereto (the assigned
interests being hereinafter referred to as the “Assigned Interests”), including Assignor’s share of all outstanding Loans with respect to the Assigned Interests and the right to receive interest and principal on and all other fees and
amounts with respect to the Assigned Interests, all from and after the Assignment Date, all as if Assignee were an original Lender under and signatory to the Loan Agreement having a Loan Commitment Percentage equal to the amount of the respective
Assigned Interests. 
 (b) Assignee, subject to the terms and conditions hereof, hereby assumes all obligations of Assignor with respect to
the Assigned Interests from and after the Assignment Date as if Assignee were an original Lender under and signatory to the Loan Agreement and the 

  

 Exhibit C - Page 1 

 
“Intercreditor Agreement” (as hereinafter defined), which obligations shall include, but shall not be limited to, the obligation to make Loans to
the Borrowers with respect to the Assigned Interests and to indemnify the Agent as provided therein (such obligations, together with all other obligations set forth in the Loan Agreement and the other Loan Documents are hereinafter collectively
referred to as the “Assigned Obligations”). Assignor shall have no further duties or obligations with respect to, and shall have no further interest in, the Assigned Obligations or the Assigned Interests. 
 3. Representations and Requests of Assignor. 
 (a) Assignor represents and warrants to Assignee (i) that it is legally authorized to, and has full power and authority to, enter into this Agreement and perform its obligations under this Agreement; (ii) that as of the date
hereof, before giving effect to the assignment contemplated hereby the principal face amount of Assignor’s Note is $             and Assignor’s Note is
$             and the aggregate outstanding principal balance of the Loans made by it equals $            
and Loans made by it equals $            , and (iii) that it has forwarded to the Agent the Notes held by Assignor. Assignor makes no representation or warranty, express or
implied, and assumes no responsibility with respect to any statements, warranties or representations made in or in connection with the Loan Documents or the execution, legality, validity, enforceability, genuineness or sufficiency of any Loan
Document or any other instrument or document furnished pursuant thereto or in connection with the Loan, the collectability of the Loans, the continued solvency of the Borrowers or the Guarantor or the continued existence, sufficiency or value of the
Collateral or any assets of the Borrowers or the Guarantor which may be realized upon for the repayment of the Loans, or the performance or observance by the Borrowers or the Guarantor of any of their respective obligations under the Loan Documents
to which it is a party or any other instrument or document delivered or executed pursuant thereto or in connection with the Loan; other than that it is the legal and beneficial owner of, or has the right to assign, the interests being assigned by it
hereunder and that such interests are free and clear of any adverse claim. 
 (b) Assignor requests that the Agent obtain replacement notes
for each of Assignor and Assignee as provided in the Loan Agreement. 
 4. Representations of Assignee. Assignee makes and confirms to
the Agent, Assignor and the other Lenders all of the representations, warranties and covenants of a Lender under Articles 14 and 18 of the Loan Agreement. Without limiting the foregoing, Assignee (a) represents and warrants that it is legally
authorized to, and has full power and authority to, enter into this Agreement and perform its obligations under this Agreement; (b) confirms that it has received copies of such documents and information as it has deemed appropriate to make its
own credit analysis and decision to enter into this Agreement; (c) agrees that it has and will, independently and without reliance upon Assignor, any other Lender or the Agent and based upon such documents and information as it shall deem
appropriate at the time, continue to make its own credit decisions in evaluating the Loans, the Loan Documents, the creditworthiness of the Borrowers and the Guarantor and the value of the assets of the Borrowers and the Guarantor, and taking or not
taking action under the Loan Documents and any intercreditor agreement among the Lenders and the Agent (the “Intercreditor Agreement”); (d) appoints and authorizes the Agent to take such action as agent on its behalf and to exercise
such powers as are reasonably 

  

 Exhibit C - Page 2 

 
incidental thereto pursuant to the terms of the Loan Documents and the Intercreditor Agreement; (e) agrees that, by this Assignment, Assignee has become
a party to and will perform in accordance with their terms all the obligations which by the terms of the Loan Documents and the Intercreditor Agreement are required to be performed by it as a Lender; (f) represents and warrants that Assignee
does not control, is not controlled by, is not under common control with and is otherwise free from influence or control by, any Borrower or the Guarantor, (g) agrees that if Assignee is not incorporated under the laws of the United States of
America or any State, it has on or prior to the date hereof delivered to Borrowers and Agent certification as to its exemption (or lack thereof) from deduction or withholding of any United States federal income taxes and (h) Assignee has a net
worth as of the date hereof of not less than $100,000,000.00 unless waived in writing by Borrowers and Agent as required by the Loan Agreement. Assignee agrees that Borrowers may rely on the representation contained in Section 4(i). 

5. Payments to Assignor. In consideration of the assignment made pursuant to Paragraph 1 of this Agreement, Assignee agrees to pay to Assignor
on the Assignment Date, an amount equal to $             representing the aggregate principal amount outstanding of the Loans owing to Assignor under the Loan Agreement and the other
Loan Documents with respect to the Assigned Interests. 
 6. Payments by Assignor. Assignor agrees to pay the Agent on the Assignment
Date the registration fee required by §18.2 of the Loan Agreement. 
 7. Effectiveness. 
 (a) The effective date for this Agreement shall be
                                 (the “Assignment Date”). Following the
execution of this Agreement, each party hereto shall deliver its duly executed counterpart hereof to the Agent for acceptance and recording in the Register by the Agent. 
 (b) Upon such acceptance and recording and from and after the Assignment Date, (i) Assignee shall be a party to the Loan Agreement and the Intercreditor Agreement and, to the extent of the Assigned Interests,
have the rights and obligations of a Lender thereunder, and (ii) Assignor shall, with respect to the Assigned Interests, relinquish its rights and be released from its obligations under the Loan Agreement and the Intercreditor Agreement.

 (c) Upon such acceptance and recording and from and after the Assignment Date, the Agent shall make all payments in respect of the rights
and interests assigned hereby accruing after the Assignment Date (including payments of principal, interest, fees and other amounts) to Assignee. 
 (d) All outstanding LIBOR Rate Loans shall continue in effect for the remainder of their applicable Interest Periods and Assignee shall accept the currently effective interest rates on its Assigned Interest of each LIBOR Rate Loan.

 8. Notices. Assignee specifies as its address for notices and its Lending Office for all assigned Loans, the offices set forth
below: 
  

 Exhibit C - Page 3 

					
	Notice Address:	 	  

		 	  

					
		 	Attn:	 	  

		 	Facsimile:	 	  

					
			
	Domestic Lending Office:	 	Same as above	 	
			
	Eurodollar Lending Office:	 	Same as above	 	

 9. Payment Instructions. All payments to Assignee under the Loan Agreement shall be made as
provided in the Loan Agreement in accordance with the separate instructions delivered to Agent. 
 10. Governing Law. THIS AGREEMENT
IS INTENDED TO TAKE EFFECT AS A SEALED INSTRUMENT FOR ALL PURPOSES AND TO BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE COMMONWEALTH OF VIRGINIA (WITHOUT REFERENCE TO CONFLICT OF LAWS). 
 11. Counterparts. This Agreement may be executed in any number of counterparts which shall together constitute but one and the same agreement.

 12. Amendments. This Agreement may not be amended, modified or terminated except by an agreement in writing signed by Assignor and
Assignee, and consented to by Agent. 
 13. Successors. This Agreement shall inure to the benefit of the parties hereto and their
respective successors and assigns as permitted by the terms of Loan Agreement and the Intercreditor Agreement. 
 [signatures on following
page] 
  

 Exhibit C - Page 4 

 IN WITNESS WHEREOF, intending to be legally bound, each of the undersigned has caused this Agreement to
be executed on its behalf by its officers thereunto duly authorized, as of the date first above written. 
  

			
	ASSIGNEE:
		
	By:	 	  

	Title:	 	
	
	ASSIGNOR:
		
	By:	 	  

	Title:	 	

  

					
	RECEIPT ACKNOWLEDGED AND
	ASSIGNMENT CONSENTED TO BY:
	
	 KEYBANK NATIONAL ASSOCIATION,
 as
Agent

		
	By:	 	  

	Title:	 	
	
	CONSENTED TO BY:
	
	COMSTOCK STATION VIEW, L.C.,
	a Virginia limited liability company
		
	By:	 	Comstock Homebuilding Companies, Inc.,
		 	a Delaware corporation, its Manager
			
		 	By:	 	  

		 	Name:	 	  

		 	Title:	 	  

		
		 	(CORPORATE SEAL)
	
	COMSTOCK POTOMAC YARD, L.C.,
	a Virginia limited liability company
		
	 By:
	 	Comstock Homebuilding Companies, Inc.,
		 	a Delaware corporation, its Manager
			
		 	By:	 	  

		 	Name:	 	  

		 	Title:	 	  

		
		 	(CORPORATE SEAL)

  

 Exhibit C - Page 5 

 EXHIBIT D 
 INTENTIONALLY OMITTED 
  

 Exhibit D - Page 1 

 EXHIBIT E 
 COMPLIANCE CERTIFICATE 
 FORM OF COMPLIANCE CERTIFICATE 
 KeyBank National Association, as Agent 
 1200 Abernathy Road, N.E., Suite
1550 
 Atlanta, Georgia 30328 
 Attn: Jennifer Wells 

Ladies and Gentlemen: 
 Reference is made to the Loan
Agreement dated as of March     , 2008 (as the same may hereafter be amended, the “Loan Agreement”) by and among Comstock Potomac Yard, L.C., a Virginia limited liability company, Comstock Station View,
L.C., a Virginia limited liability company (collectively, “Borrowers”), KeyBank National Association for itself and as Agent, and the other lenders from time to time party thereto. Terms defined in the Loan Agreement and not otherwise
defined herein are used herein as defined in the Loan Agreement. 
 Pursuant to the Loan Agreement, Borrowers are furnishing to you herewith
(or have most recently furnished to you) the consolidated financial statements of Borrowers for the fiscal period ended
                                 (the “Balance Sheet Date”). Such
financial statements have been prepared in accordance with GAAP and present fairly the consolidated financial position of Borrowers at the date thereof and the results of its operations for the periods covered thereby. 
 This certificate is submitted in compliance with requirements of §7.4(i) of the Loan Agreement. The calculations provided below are made using the
consolidated financial statements of Borrowers as of the Balance Sheet Date adjusted in the best good faith estimate of Borrowers to give effect to the making of a Loan, or other event that occasions the preparation of this certificate; and the
nature of such event and the estimate of Borrowers of its effects are set forth in reasonable detail in an attachment hereto. The undersigned officer is the chief financial officer or chief accounting officer of each Borrower. 
 The undersigned representative has caused the provisions of the Loan Documents to be reviewed and have no knowledge of any Default or Event of Default.
[(Note: If the signer does have knowledge of any Default or Event of Default, the form of certificate should be revised to specify the Default or Event of Default, the nature thereof and the actions taken, being taken or proposed to be taken by
the Borrower with respect thereto.)] 
 The undersigned is providing the attached information to demonstrate compliance as of the date
hereof with the covenants described in the attachment hereto. 
  

 Exhibit E - Page 1 

 IN WITNESS WHEREOF, the undersigned have duly executed this Compliance Certificate this
     day of             , 200  . 
  

					
	 COMSTOCK STATION VIEW, L.C.,
 a
Virginia limited liability company

		
	By:	 	 Comstock Homebuilding Companies, Inc.,
 a
Delaware corporation, its Manager

			
		 	By:	 	  

		 	Name:	 	  

		 	Title:	 	  

		
		 	(CORPORATE SEAL)
	
	 COMSTOCK POTOMAC YARD, L.C.,
 a
Virginia limited liability company

		
	By:	 	 Comstock Homebuilding Companies, Inc.,
 a
Delaware corporation, its Manager

			
		 	By:	 	  

		 	Name:	 	  

		 	Title:	 	  

		
		 	(CORPORATE SEAL)

 [APPENDIX TO COMPLIANCE CERTIFICATE] 
  

 Exhibit E - Page 2 

 SCHEDULE 1.1 
 LENDERS AND COMMITMENTS 
  

							
	 Name and Address
	  	Loan
Commitment	  	Loan Commitment
Percentage	 
	 KeyBank National Association
 1200 Abernathy Road, N.E.
 Suite 1550
 Atlanta, Georgia 30328
	  	$	40,391,200.00	  	100	%
			
	 LIBOR Lending Office
 Same as above
	  			  		

  

 Schedule 1.1 - Page 1 

 SCHEDULE 1.2 
 MORTGAGED PROPERTY QUALIFICATION DOCUMENTS 
 With respect to the Mortgaged Property, each of the
following: 
 (a) Security Documents. Such Security Documents relating to the Mortgaged Property as the Agent shall in good faith
require, duly executed and delivered by the respective parties thereto. 
 (b) Perfection of Liens. Evidence reasonably satisfactory
to the Agent that the Security Documents are effective to create in favor of the Agent a legal, valid and enforceable first lien or security title and security interest in the Mortgaged Property and that all filings, recordings, deliveries of
instruments and other actions necessary or desirable to protect and preserve such liens or security title or security interests have been duly effected. 
 (c) Survey and Taxes. The Survey of the Mortgaged Property, together with the Surveyor Certification and evidence of payment of all real estate taxes, assessments and municipal charges on the Mortgaged Property
which on the date of determination are required to have been paid under §7.8. 
 (d) Title Insurance; Title Exception Documents.
The Title Policy (or “marked” commitment/pro forma policy for a Title Policy) covering the Mortgaged Property, including all endorsements thereto, and together with proof of payment of all fees and premiums for such policy, and true and
accurate copies of all documents listed as exceptions under such policy. 
 (e) UCC Certification. A certification from the Title
Insurance Company, records search firm, or counsel satisfactory to the Agent that a search of the appropriate public records disclosed no conditional sales contracts, security agreements, chattel mortgages, leases of personalty, financing statements
or title retention agreements which affect any property, rights or interests of the Borrowers that are or are intended to be subject to the security interest, security title, assignments, and mortgage liens created by the Security Documents relating
to the Mortgaged Property except to the extent that the same are discharged and removed prior to or simultaneously with the inclusion of the Mortgaged Property in the Collateral. 
 (f) Certificates of Insurance. Each of (i) a current certificate of insurance as to the insurance maintained by the Borrowers on the
Mortgaged Property (including flood insurance if necessary) from the insurer or an independent insurance broker dated as of the date of determination, identifying insurers, types of insurance, insurance limits, and policy terms (or certificates
therefor signed by the insurer or an agent authorized to bind the insurer); and (ii) such further information and certificates from the Borrowers, their insurers and insurance brokers as the Agent may reasonably request, all of which shall be
in compliance with the requirements of this Agreement. 
 (g) Hazardous Substance Assessments. With respect to the Station View
Project, a hazardous waste site assessment report addressed to the Agent (or the subject of a reliance letter addressed to, and in a form reasonably satisfactory to, the Agent) concerning Hazardous Substances and asbestos on the Mortgaged Property
dated or updated not more than sixty (60)

  

 Schedule 1.2 - Page 1 

 
days prior to the Closing Date, from the Environmental Engineer, such report to contain no qualifications except those that are acceptable to the Majority
Lenders in their reasonable discretion and to otherwise be in form and substance reasonably satisfactory to the Agent in its sole discretion. With respect to the Potomac Project, Agent shall not require all existing reports to be addressed to Agent
or a reliance letter. 
 (h) Zoning and Land Use Compliance. Such evidence regarding zoning and land use compliance as the Agent may
require and approve in its reasonable discretion. 
 (i) Additional Documents. Such other agreements, documents, certificates, reports
or assurances as the Agent may reasonably require. 
  

 Schedule 1.2 - Page 2 

 SCHEDULE 3.3 
 MANDATORY PREPAYMENTS 
  

				
	 Prepayment Date
	  	Prepayment Amount
	 March 31, 2009
	  	$	20,680,380.00
	 September 30, 2009
	  	$	9,847,800.00
	 March 31, 2010
	  	$	8,863,020.00

  

 Schedule 3.3 Page - 1 

 SCHEDULE 6.6 
 PENDING LITIGATION AND JUDGMENTS 
 [See Attached] 
  

 Schedule 6.6 - Page 1 

 SCHEDULE 6.9 
 TAXPAYER IDENTIFICATION NUMBERS 
 Borrowers: 
  

			
	Potomac:	 	26-0065265
	Station View:	 	20-4615947

 Guarantor: 
  

			
	Comstock Homebuilding Companies, Inc.:	 	20-1164345

  

 Schedule 6.9 - Page 1 

 SCHEDULE 6.17 
 ORGANIZATIONAL STRUCTURE 
 Comstock Homebuilding Companies, Inc., a Delaware corporation, owns one
hundred percent (100%) of the membership interests in each of Potomac and Station View. 
  

 Schedule 6.18(c) - Page 1 

 SCHEDULE 6.18(c) 
 PURCHASE OPTIONS 
 None. 
  

 Schedule 6.18(c) - Page 1 

 SCHEDULE 6.28 
 OUTSTANDING CERTIFICATES OF OCCUPANCY 
 Unit Nos.: 154, 155, 156, 157, 246, 1043, 1044, 1149 and 1150 
  

 Schedule 6.28 - Page 1 

 SCHEDULE 7.12 
 POTOMAC PROJECT LEASING PARAMETERS 
 In no event shall Potomac, as part of its rental program established for the
Potomac Project, enter into leases that would impair the ability of Borrowers to meet mandatory curtailments for the Potomac Project as set forth in Section 3.3 of the Loan Agreement, as determined by Agent in its reasonable discretion. Prior
to entering into any such lease, Potomac shall give prior written notice to Agent of its intent to enter into such lease and obtain Agent’s confirmation (not to be unreasonably withheld or delayed) that such lease will not impair the ability of
Borrowers to meet the curtailment requirements of section 3.3. Prior to entry into any leases for the Potomac Project, Potomac shall submit to Agent its form of lease, approval of which will not be unreasonably withheld or delayed. 
  

 Schedule 7.12 - Page 1 

 SCHEDULE 8.8 
 RELEASE PRICES 
 [See Attached] 
  

 Schedule 8.8 - Page 1

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