On November 20, 2015, Comstock Two Rivers I, L.C. and Comstock Two Rivers II, L.C., each a wholly-owned subsidiary of Comstock Holding Companies, Inc., (collectively known as “CTR”) received notices of default from Two Rivers Associates LLC under Sales Contracts originally dated May 29, 2014 (the “Two Rivers Contracts”) for their purported failure to purchase the minimum amount of finished townhome lots required by the lot takedown schedule set forth in the Two Rivers Contracts. According to the notices of default, CTR has ten (10) days to cure the default. In the event CTR is ultimately deemed to be in default under the Two Rivers Contracts, the sole remedy for CTR’s failure to cure the purported default is forfeiture of it purchase money deposit in the current aggregate outstanding amount of $1,444,000. CTR and Two Rivers Associates LLC are currently in discussions regarding the Two Rivers Contracts.