<SEC-DOCUMENT>0001104659-20-009801.txt : 20200203
<SEC-HEADER>0001104659-20-009801.hdr.sgml : 20200203
<ACCEPTANCE-DATETIME>20200203163649
ACCESSION NUMBER:		0001104659-20-009801
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		5
CONFORMED PERIOD OF REPORT:	20200203
ITEM INFORMATION:		Entry into a Material Definitive Agreement
ITEM INFORMATION:		Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20200203
DATE AS OF CHANGE:		20200203

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			AMREP CORP.
		CENTRAL INDEX KEY:			0000006207
		STANDARD INDUSTRIAL CLASSIFICATION:	PERIODICALS:  PUBLISHING OR PUBLISHING AND PRINTING [2721]
		IRS NUMBER:				590936128
		STATE OF INCORPORATION:			OK
		FISCAL YEAR END:			0430

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-04702
		FILM NUMBER:		20569128

	BUSINESS ADDRESS:	
		STREET 1:		620 WEST GERMANTOWN PIKE
		STREET 2:		SUITE 175
		CITY:			PLYMOUTH MEETING
		STATE:			PA
		ZIP:			19462
		BUSINESS PHONE:		610-487-0905

	MAIL ADDRESS:	
		STREET 1:		620 WEST GERMANTOWN PIKE
		STREET 2:		SUITE 175
		CITY:			PLYMOUTH MEETING
		STATE:			PA
		ZIP:			19462

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	AMREP CORP
		DATE OF NAME CHANGE:	19920703

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	AMERICAN REALTY & PETROLEUM CORP
		DATE OF NAME CHANGE:	19671019
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>tm206507d1_8k.htm
<DESCRIPTION>FORM 8-K
<TEXT>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>UNITED STATES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SECURITIES AND EXCHANGE COMMISSION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Washington, D.C. 20549</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>FORM 8-K</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>CURRENT REPORT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Pursuant to Section 13 OR 15(d) of the
Securities Exchange Act of 1934</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Date of Report (Date of earliest event reported):&nbsp;&nbsp;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;February
3, 2020&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

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    <TD STYLE="width: 100%; border-bottom: black 1pt solid; text-align: center; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 18pt"><B>AMREP CORPORATION</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">(Exact name of registrant as specified in its charter)</FONT></TD></TR>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
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    <TD STYLE="width: 35%; border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Oklahoma</B></FONT></TD>
    <TD STYLE="width: 37%; border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>1-4702</B></FONT></TD>
    <TD STYLE="width: 28%; border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>59-0936128</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">(State or other jurisdiction of</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">(Commission File</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">(IRS Employer</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">incorporation)</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">Number)</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">Identification No.)</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR>
    <TD STYLE="vertical-align: top; width: 58%; border-bottom: black 1pt solid">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>620 West Germantown Pike, Suite 175</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Plymouth Meeting, PA</B></P></TD>
    <TD STYLE="vertical-align: bottom; width: 42%; border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>19462</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">(Address of principal executive offices)</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">(Zip Code)</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Registrant's telephone number, including
area code:&nbsp;&nbsp;<U>(610) 487-0905</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

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    <TD STYLE="width: 100%; border-bottom: black 1pt solid; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">(Former name or former address, if changed since last report)</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Check the appropriate box below if the Form 8-K filing is intended
to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction
A.2. below):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

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<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Wingdings">&#168;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</FONT></TD></TR>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Wingdings">&#168;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Wingdings">&#168;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Pre-commencement communication pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Wingdings">&#168;</FONT></TD>
    <TD STYLE="padding-bottom: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Pre-commencement communication pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Securities registered pursuant to Section 12(b) of the Act:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
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    <TD STYLE="width: 35%; border: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 2.2pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">Title of each class</FONT></TD>
    <TD STYLE="width: 20%; border-top: Black 1pt solid; border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 2.2pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">Trading Symbol(s)</FONT></TD>
    <TD STYLE="width: 45%; border-top: Black 1pt solid; border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 2.2pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">Name of each exchange on which registered</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 2.2pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">Common Stock $.10 par value</FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 2.2pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">AXR</FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 2.2pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">New York Stock Exchange</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Indicate by check mark whether the registrant is an emerging
growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR &sect;230.405) or Rule 12b-2 of the Securities Exchange
Act of 1934 (17 CFR &sect;240.12b-2).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right; text-indent: 0.5in">Emerging growth company
 &nbsp;&nbsp;&nbsp;<FONT STYLE="font-family: Wingdings">&#168;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">If an emerging growth company, indicate by check mark if the
registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards
provided pursuant to Section 13(a) of the Exchange Act. &nbsp;&nbsp;&nbsp;<FONT STYLE="font-family: Wingdings">&#168;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2in; text-indent: -2in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2in; text-indent: -2in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2in; text-indent: -2in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2in; text-indent: -2in"><B></B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2in; text-indent: -2in"><B></B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2in; text-indent: -2in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Item 1.01 Entry into a Material Definitive Agreement.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On February 3, 2020, Mountain Hawk
East Development Company LLC (&ldquo;MHEDC&rdquo;), an indirect subsidiary of AMREP Corporation, entered into a Business Loan
Agreement with Sandia Laboratory Federal Credit Union (&ldquo;Lender&rdquo;). The Business Loan Agreement is evidenced by a
Promissory Note, and is secured by a Line of Credit Mortgage, between MHEDC and Lender, with respect to certain planned
residential lots within the Hawk Site subdivision located in Rio Rancho, New Mexico. Pursuant to a Commercial Guaranty
entered into by AMREP Southwest Inc. (&ldquo;ASW&rdquo;), an indirect subsidiary of AMREP Corporation, in favor of Lender,
ASW has guaranteed MHEDC&rsquo;s obligations under each of the above agreements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif"><U>Available Principal</U>: Lender agreed to lend up to $3,000,000
to MHEDC on a revolving line of credit basis to partially fund the development of certain planned residential lots within the Hawk
Site subdivision. The maximum principal available under the loan will be limited to 75% of the bulk discounted value of the lots
to be developed with the loan proceeds. </FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif"><U>Maturity Date</U>: The loan is scheduled to mature on August 1,
2022. </FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif"><U>Interest Payments</U>: Interest on the outstanding principal amount
of the loan is payable monthly at the fixed annual rate of 4.5%. </FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif"><U>Principal Payments</U>: Lender is required to release the lien
of its mortgage on any lot upon MHEDC making a principal payment equal to $52,000 per lot. On the maturity date, MHEDC will be
required to make a final payment of all outstanding principal and accrued and unpaid interest. The outstanding principal amount
of the loan may be prepaid at any time without penalty.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">MHEDC and ASW have made certain representations
and warranties in connection with this loan and are required to comply with various covenants, reporting requirements and other
customary requirements for similar loans. The loan documentation contains customary events of default for similar financing transactions,
including: MHEDC&rsquo;s failure to make principal, interest or other payments when due; the failure of MHEDC or ASW to observe
or perform their respective covenants under the loan documentation; the representations and warranties of MHEDC or ASW being false;&nbsp;the
insolvency or bankruptcy of MHEDC or ASW; and&nbsp;the failure of ASW to maintain a tangible net worth of at least $29 million.
Upon the occurrence and during the continuance of an event of default, Lender may declare the outstanding principal amount and
all other obligations under the loan immediately due and payable. MHEDC incurred certain customary costs and expenses and paid
certain fees to Lender in connection with the loan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The foregoing description of the loan documentation
is a summary only and is qualified in all respects by the provisions of the loan documentation; copies of the Business Loan Agreement,
Promissory Note, Line of Credit Mortgage and Commercial Guaranty are attached hereto as Exhibits 10.1 through 10.4 and are incorporated
herein by reference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Item 2.03 Creation of a Direct Financial Obligation or an
Obligation under an Off-Balance Sheet Arrangement of a Registrant.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The information in Item 1.01 of this Current
Report on Form 8-K is incorporated by reference into this Item 2.03.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="background-color: white"><B>Item 9.01&nbsp;&nbsp;Financial
Statements and Exhibits.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">(d) Exhibits.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; white-space: nowrap; text-align: center"><U>Exhibit
    Number</U></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: center"><U>Description</U></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="vertical-align: top; font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="vertical-align: top; width: 10%; font: 10pt Times New Roman, Times, Serif; text-align: center"><A HREF="tm206507d1_ex10-1.htm">10.1</A></TD><TD STYLE="width: 3%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 87%; font-size: 10pt; text-align: left"><A HREF="tm206507d1_ex10-1.htm">Business Loan Agreement, dated as of February 3, 2020, between Sandia Laboratory Federal Credit Union and Mountain Hawk East Development Company LLC.</A></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="vertical-align: top; font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; text-align: center"><A HREF="tm206507d1_ex10-2.htm">10.2</A></TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left"><A HREF="tm206507d1_ex10-2.htm">Promissory Note, dated February 3, 2020, by Mountain Hawk East Development Company LLC in favor of Sandia Laboratory Federal Credit Union.</A></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="vertical-align: top; font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; text-align: center"><A HREF="tm206507d1_ex10-3.htm">10.3</A></TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left"><A HREF="tm206507d1_ex10-3.htm">Line of Credit Mortgage, dated as of February 3, 2020, between Sandia Laboratory Federal Credit Union and Mountain Hawk East Development Company LLC.</A></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="vertical-align: top; font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; text-align: center"><A HREF="tm206507d1_ex10-4.htm">10.4</A></TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left"><A HREF="tm206507d1_ex10-4.htm">Commercial Guaranty, dated as of February 3, 2020, made by AMREP Southwest Inc. for the benefit of Sandia Laboratory Federal Credit Union.</A></TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">SIGNATURES</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; background-color: white; border-collapse: collapse">
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>AMREP Corporation</B></FONT></TD></TR>
<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR>
    <TD STYLE="padding-bottom: 1pt; vertical-align: top; font-size: 10pt; width: 50%"><FONT STYLE="font-family: Times New Roman, Times, Serif">Date: February 3, 2020</FONT></TD>
    <TD STYLE="padding-bottom: 1pt; vertical-align: bottom; font-size: 10pt; width: 3%"><FONT STYLE="font-family: Times New Roman, Times, Serif">By:</FONT></TD>
    <TD STYLE="padding-bottom: 1pt; vertical-align: bottom; width: 47%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; border-bottom: black 0.75pt solid">/s/ Christopher
V. Vitale&nbsp;</P></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Name: Christopher V. Vitale</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Title: President and Chief Executive Officer</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><U>EXHIBIT INDEX&nbsp;</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="vertical-align: top; text-align: center; padding-bottom: 1pt; white-space: nowrap; font-family: Times New Roman, Times, Serif"><U>Exhibit
    Number</U></TD><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 1pt; font-family: Times New Roman, Times, Serif"><U>Description</U></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="vertical-align: top; text-align: center; padding-bottom: 1pt; white-space: nowrap; font-family: Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 1pt; font-family: Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="vertical-align: top; width: 10%; font-family: Times New Roman, Times, Serif; text-align: center; padding-left: 5.4pt"><A HREF="tm206507d1_ex10-1.htm">10.1</A></TD><TD STYLE="width: 3%; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 87%; font: 10pt Times New Roman, Times, Serif; text-align: left"><A HREF="tm206507d1_ex10-1.htm">Business Loan Agreement, dated as of February 3, 2020, between Sandia Laboratory Federal Credit Union and Mountain Hawk East Development Company LLC.</A></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif; text-align: center; padding-left: 5.4pt">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif; text-align: center; padding-left: 5.4pt"><A HREF="tm206507d1_ex10-2.htm">10.2</A></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><A HREF="tm206507d1_ex10-2.htm">Promissory Note, dated February 3, 2020, by Mountain Hawk East Development Company LLC in favor of Sandia Laboratory Federal Credit Union.</A></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif; text-align: center; padding-left: 5.4pt">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif; text-align: center; padding-left: 5.4pt"><A HREF="tm206507d1_ex10-3.htm">10.3</A></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><A HREF="tm206507d1_ex10-3.htm">Line of Credit Mortgage, dated as of February 3, 2020, between Sandia Laboratory Federal Credit Union and Mountain Hawk East Development Company LLC.</A></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif; text-align: center; padding-left: 5.4pt">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="vertical-align: top; font-family: Times New Roman, Times, Serif; text-align: center; padding-left: 5.4pt"><A HREF="tm206507d1_ex10-4.htm">10.4</A></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><A HREF="tm206507d1_ex10-4.htm">Commercial Guaranty, dated as of February 3, 2020, made by AMREP Southwest Inc. for the benefit of Sandia Laboratory Federal Credit Union.</A></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>tm206507d1_ex10-1.htm
<DESCRIPTION>EXHIBIT 10.1
<TEXT>
<HTML>
<HEAD>
     <TITLE></TITLE>
</HEAD>
<BODY STYLE="font: 10pt Times New Roman, Times, Serif">

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="text-align: right; margin: 0"><B>Exhibit 10.1</B></P>

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0"></P>

<P STYLE="text-align: center; font: 14pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; color: #242424"><B>BUSINESS LOAN AGREEMENT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center; border: black 1pt solid; width: 19%; vertical-align: bottom">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Principal<BR>
$3,000,000.00</B></P></TD>
    <TD STYLE="text-align: center; border-top: black 1pt solid; border-right: black 1pt solid; border-bottom: black 1pt solid; width: 11%; font-size: 10pt; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Loan Date<BR>
 02-03-2020</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-top: black 1pt solid; border-right: black 1pt solid; border-bottom: black 1pt solid; width: 11%; font-size: 10pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Maturity<BR>
 08-01-2022</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-top: black 1pt solid; border-right: black 1pt solid; border-bottom: black 1pt solid; width: 15%; font-size: 10pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Loan No<BR>
2401</B></FONT></TD>
    <TD STYLE="text-align: center; border-top: black 1pt solid; border-right: black 1pt solid; border-bottom: black 1pt solid; width: 13%; vertical-align: bottom">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 17.5pt"><B>Call / Coll<BR>
70 / 26</B></P></TD>
    <TD STYLE="text-align: center; border-top: black 1pt solid; border-right: black 1pt solid; border-bottom: black 1pt solid; width: 15%; vertical-align: bottom">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 21.1pt"><B>Account<BR>
0010188747</B></P></TD>
    <TD STYLE="text-align: center; border-top: black 1pt solid; border-right: black 1pt solid; border-bottom: black 1pt solid; width: 7%; font-size: 10pt; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Officer<BR>
 DC</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-top: black 1pt solid; border-right: black 1pt solid; border-bottom: black 1pt solid; text-align: center; width: 9%; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Initials</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="8" STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">References in the boxes above are for Lender's
        use only and do not limit the applicability of this document to any particular loan or item.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Any item above containing &quot;***&quot;
        has been omitted due to text length limitations.</P></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="border-top: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-top: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-top: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-top: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-top: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 10pt; width: 15%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: #242424"><B>Borrower:</B></FONT></TD>
    <TD STYLE="width: 30%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #242424"><B>MOUNTAIN
    HAWK EAST DEVELOPMENT COMPANY LLC 333 RIO RANCHO DR., SUITE 202<BR> RIO RANCHO, NM&nbsp;&nbsp;87124</B></FONT></TD>
    <TD STYLE="width: 10%">&nbsp;</TD>
    <TD STYLE="width: 12%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #242424"><B>Lender:</B></FONT></TD>
    <TD STYLE="padding-right: 10pt; width: 33%"><P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #242424"><B>Sandia
Laboratory Federal Credit Union<BR>
3707 Juan Tabo Blvd. Albuquerque,<BR>
 NM&nbsp;&nbsp;87111</B></FONT></P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in; text-align: justify; color: #242424">THIS BUSINESS
LOAN AGREEMENT dated February&nbsp;3, 2020, is made and executed between MOUNTAIN HAWK EAST DEVELOPMENT COMPANY LLC (&quot;Borrower&quot;)
and Sandia Laboratory Federal Credit Union (&quot;Lender&quot;) on the following terms and conditions. Borrower has received prior
commercial loans from Lender or has applied to Lender for a commercial loan or loans or other financial accommodations, including
those which may be described on any exhibit or schedule attached to this Agreement. Borrower understands and agrees that: (A)&nbsp;in
<B>granting, renewing, or extending any Loan, Lender is relying upon Borrower's representations, warranties, and agreements as
set forth </B>in <B>this Agreement; (B)&nbsp;the granting, renewing, or extending of any Loan by Lender at all times shall be subject
to Lender's sole judgment and discretion; and (C)&nbsp;all such Loans shall be and remain subject to the terms and conditions of
this Agreement.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in; text-align: justify"><FONT STYLE="color: #242424"><B>TERM.
</B>This Agreement shall be effective as of February&nbsp;3, 2020, and shall continue in full force and effect until such time
as all of Borrower's Loans in favor of Lender have been paid in full, including principal, interest, costs, expenses, reasonable
attorneys&rsquo; fees, and other fees and charges</FONT><FONT STYLE="color: #4B4B4B">, </FONT><FONT STYLE="color: #242424">or until
such time as the parties may agree in writing to terminate this Agreement.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in; text-align: justify"><B>PROJECT</B>.
The project to be funded with the proceeds of this Loan is expected to consist of the development of residential lots in Tract
37-A (as contemplated by the paragraph below entitled &ldquo;PARTIAL RELEASE OF EXCESS LAND&rdquo;) of the Hawksite Subdivision,
Rio Rancho, NM 87124 in three construction phases (the &ldquo;Project&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in; text-align: justify"><FONT STYLE="color: #242424"><B>LINE
OF CREDIT. </B>The Indebtedness includes a revolving line of credit in the maximum principal amount of $3,000,000.00; provided
that, the amount available under the credit line shall be limited to 75% of the bulk discounted value of </FONT>Tract 37-A<FONT STYLE="color: #242424">.
If no lots have been released from the Mortgage in a phase, then the bulk discounted value of such phase of Tract 37-A shall be
determined by appraisal. However, if lots have been released from the Mortgage in a phase, then the remaining value of such phase
shall equal the sale price per lot provided in the applicable (if any) purchase agreement with a homebuilder multiplied by the
number of unreleased lots in such phase. The bulk discounted value shall be calculated at the time of each draw using the Borrowing
Base form attached hereto as <B>Exhibit&nbsp;&ldquo;A&rdquo;</B> and made a part hereof. The proceeds of this Loan shall be used
to fund the construction costs of Tract 37-A in the following order: (1)&nbsp;construction of offsite infrastructure for the Project
and construction of infrastructure that services phase 1 of the Project through substantial completion of such phase; (2)&nbsp;construction
of infrastructure that services phase 2 of the Project through substantial completion of such phase; and (3)&nbsp;construction
of infrastructure that services phase 3 of the Project through substantial completion of such phase. &ldquo;Substantial completion&rdquo;
means the issuance of a certificate of substantial completion by the City of Rio Rancho.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in; text-align: justify"><FONT STYLE="color: #242424"><B>CONDITIONS
PRECEDENT TO EACH ADVANCE. </B>Lender's obligation to make the </FONT><FONT STYLE="color: #57313A">i</FONT><FONT STYLE="color: #242424">nitial
Advance and each subsequent Advance under this Agreement shall be subject to the fulfillment to Lender's satisfaction of all of
the conditions set forth in this Agreement and in the Related Documents</FONT><FONT STYLE="color: #4B4B4B">.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #242424"><B>Loan
Documents. </B>Borrower shall provide to Lender the following documents for the Loan</FONT><FONT STYLE="color: #4B4B4B">: </FONT><FONT STYLE="color: #242424">(1)&nbsp;the
Note; (2)&nbsp;Security Agreements granting to Lender security interests in the Collateral; (3)&nbsp;financing statements and all
other documents perfecting Lender's Security Interests; (4)&nbsp;evidence of insurance as required below; (5)&nbsp;guaranties</FONT><FONT STYLE="color: #4B4B4B">;
</FONT><FONT STYLE="color: #242424">(6)&nbsp;a completed Borrowing Base form (<B>Exhibit&nbsp;&ldquo;A&rdquo;</B>); and (7)&nbsp;such
Related Documents as Lender may require for the Loan</FONT><FONT STYLE="color: #4B4B4B">; </FONT><FONT STYLE="color: #242424">all
in form and substance satisfactory to Lender and Lender's counsel.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #242424"><B>Borrower's
Authorization. </B>Borrower shall have provided in form and substance satisfactory to Lender properly certified resolutions, duly
authorizing the execution and delivery of this Agreement, the Note and the Related Documents. In addition, Borrower shall have
provided such other resolutions, authorizations</FONT><FONT STYLE="color: #4B4B4B">, </FONT><FONT STYLE="color: #242424">documents
and instruments as Lender or its counsel, may require.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><B>Payment
of Fees and Expenses. </B>Borrower shall have paid to Lender all fees, charges, and other expenses which are then due and payable
as specified in this Agreement or any Related Document.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><B>Representations
and Warranties. </B>The representations and warranties set forth in this Agreement, in the Related Documents, and in any document
or certificate delivered to Lender under this Agreement are true and correct.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><B>No
Event of Default. </B>There shall not exist at the time of any Advance a condition which would constitute an Event of Default under
this Agreement or under any Related Document.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in; text-align: justify"><FONT STYLE="color: #242424"><B>REPRESENTATIONS
AND WARRANTIES. </B>Borrower represents and warrants to Lender, as of the date of this Agreement, as of the date of each disbursement
of loan proceeds, as of the date of any renewal, extension or modification of any Loan, and at all times any Indebtedness exists</FONT><FONT STYLE="color: #4B4B4B">:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #242424"><B>Organization.
</B>Borrower is a limited liability company which is, and at all times shall be, duly organized, validly existing, and </FONT><FONT STYLE="color: #3A3A3A">in
</FONT><FONT STYLE="color: #242424">good standing under and by virtue of the laws of the State of New Mexico</FONT><FONT STYLE="color: #4B4B4B">.
</FONT><FONT STYLE="color: #242424">Borrower is duly authorized to transact business in all other states in which Borrower is doing
business, having obtained all necessary filings, governmental licenses and approvals for each state in which Borrower is doing
business. Specifically, Borrower </FONT><FONT STYLE="color: #3A3A3A">is, </FONT><FONT STYLE="color: #242424">and at all times shall
be, duly qualified as a foreign limited liability company in all states in which the failure to so qualify would have a material
adverse effect on its business or financial condition. Borrower has the full power and authority to own its properties and to transact
the business in which it is presently engaged or presently proposes to engage. Borrower maintains an office at 333&nbsp;RIO RANCHO
DR., SUITE 202, RIO RANCHO, NM 87124. Unless Borrower has designated otherwise in writing, the principal office is the office at
which Borrower keeps its books and records including its records concerning the Collateral. Borrower will notify Lender prior to
any change in the location of Borrower's state of organization or any change in Borrower's name. Borrower shall do all things necessary
to preserve and to keep in full force and effect its existence, rights and privileges, and shall comply with all regulations, rules,
ordinances, statutes, orders and decrees of any governmental or quasi-governmental authority or court applicable to Borrower and
Borrower's business activities.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #242424"><B>Assumed
Business Names. </B>Borrower has filed or recorded all documents or filings required by law relating to all assumed business names
used by Borrower</FONT><FONT STYLE="color: #4B4B4B">. </FONT><FONT STYLE="color: #242424">Excluding the name of Borrower, the following
is a complete list of all assumed business names under which Borrower does business: <B>None.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #242424"><B>Authorization.
</B>Borrower's execution, delivery, and performance of this Agreement and all the Related Documents have been duly authorized by
all necessary action by Borrower and do not conflict with</FONT><FONT STYLE="color: #4B4B4B">, </FONT><FONT STYLE="color: #242424">result
in a violation of, or constitute a default under (1)&nbsp;any provision of (a)&nbsp;Borrower's articles of organization or membership
agreements</FONT><FONT STYLE="color: #4B4B4B">, </FONT><FONT STYLE="color: #242424">or (b)&nbsp;any agreement or other instrument
binding upon Borrower or (2)&nbsp;any law, governmental regulation, court decree, or order applicable to Borrower or to Borrower's
properties.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #242424"><B>Financial
Information</B></FONT><B><FONT STYLE="color: #4B4B4B">. </FONT></B><FONT STYLE="color: #242424">Each of Borrower's financial statements
supplied to Lender truly and completely disclosed Borrower's financial condition as of the date of the statement, and there has
been no material adverse change in Borrower&rsquo;s financial condition subsequent to the date of the most recent financial statement
supplied to Lender. Borrower has no material contingent obligations except as disclosed in such financial statements.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #242424"><B>Legal
Effect. </B>This Agreement constitutes, and any instrument or agreement Borrower is required to give under this Agreement when
delivered will constitute legal, valid, and binding obligations of Borrower enforceable against Borrower in accordance with their
respective terms</FONT><FONT STYLE="color: #56625E">.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #242424"><B>Properties.
</B>Except as contemplated by this Agreement or as previously disclosed in Borrower's financial statements or in writing to Lender
and as accepted by Lender, and except for property tax liens for taxes not presently due and payable, Borrower owns and has good
title to all of Borrower's properties free and clear of all Security Interests, and has not executed any security documents or
financing statements relating to such properties. All of Borrower's properties are titled in Borrower's legal name, and Borrower
has not used or filed a financing statement under any other name for at least the last five (5)&nbsp;years</FONT><FONT STYLE="color: #4B4B4B">.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<TR STYLE="vertical-align: top">
    <TD STYLE="width: 34%"></TD>
    <TD STYLE="text-align: center; width: 32%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>BUSINESS LOAN AGREEMENT</B></FONT></TD>
    <TD STYLE="width: 34%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B></B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0.25in; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Loan No: 2401</B></FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>(Continued)</B></FONT></TD>
    <TD STYLE="padding-right: 0.25in; font-weight: bold; text-align: right"><B>Page&nbsp;2</B></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: center">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">&nbsp;</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #242424"><B>Hazardous
Substances. </B>Except as disclosed to and acknowledged by Lender in writing, Borrower represents and warrants that: (1)&nbsp;During
the period of Borrower's ownership of the Collateral, there has been no use, generation, manufacture, storage, treatment, disposal,
release or threatened release of any Hazardous Substance by any person on, under, about or from any of the Collateral. (2)&nbsp;Borrower
has no knowledge of, or reason to believe that there has been (a)&nbsp;any breach or v</FONT><FONT STYLE="color: #4F4F4F">i</FONT><FONT STYLE="color: #242424">olation
of any Environmental Laws; (b)&nbsp;any use, generation, manufacture, storage, treatment, disposal, release or threatened release
of any Hazardous Substance on, under, about or from the Collateral by any prior owners or occupants of any of the Collateral; or
(c)&nbsp;any actual or threatened litigation or claims of any kind by any person relating to such matters. (3)&nbsp;Neither Borrower
nor any tenant, contractor, agent or other authorized user of any of the Collateral shall use, generate, manufacture, store, treat,
dispose of or release any Hazardous Substance on, under, about or from any of the Collateral; and any such activity shall be conducted
in compliance with all applicable federal, state</FONT><FONT STYLE="color: #4F4F4F">, </FONT><FONT STYLE="color: #242424">and local
laws, regulations, and ordinances, including without limitation all Environmental Laws. Borrower authorizes Lender and its agents
to enter upon the Collateral to make such inspections and tests as Lender may deem appropriate to determine compliance of the Collateral
with this section of the Agreement. Any inspections or tests made by Lender shall be at Borrower's expense and for Lender's purposes
only and shall not be construed to create any responsibility or liability on the part of Lender to Borrower or to any other person.
The representations and warranties contained herein are based on Borrower's due diligence </FONT><FONT STYLE="color: #3B3B3B">in
</FONT><FONT STYLE="color: #242424">investigating the Collateral for hazardous waste and Hazardous Substances. Borrower hereby
(1)&nbsp;releases and waives any future claims against Lender for indemnity or contribution in the event Borrower becomes liable
for cleanup or other costs under any such laws, and (2)&nbsp;agrees to indemnify, defend, and hold harmless Lender against any
and all claims, losses, liabilities, damages, penalties, and expenses which Lender may directly or indirectly sustain or suffer
resulting from a breach of this section of the Agreement or as a consequence of any use, generation, manufacture, storage, disposal,
release or threatened release of a hazardous waste or substance on the Collateral. The provisions of this section of the Agreement,
including the obligation to indemnify and defend, shall survive the payment of the Indebtedness and the termination, expiration
or satisfaction of this Agreement and shall not be affected by Lender's acquisition of any interest in any of the Collateral, whether
by foreclosure or otherwise.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #242424"><B>Litigation
and Claims. </B>No litigation, claim, investigation, administrative proceeding or similar action (including those for unpaid taxes)
against Borrower is pending or threatened, and no other event has occurred which may materially adversely affect Borrower's financial
condition or properties, other than litigation, claims, or other events, if any, that have been disclosed to and acknowledged by
Lender </FONT><FONT STYLE="color: #3B3B3B">in </FONT><FONT STYLE="color: #242424">writing.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #242424"><B>Taxes.
</B>To the best of Borrower's knowledge, all of Borrower's tax returns and reports that are or were required to be filed, have
been filed, and all taxes, assessments and other governmental charges have been paid in full</FONT><FONT STYLE="color: #4F4F4F">,
</FONT><FONT STYLE="color: #242424">except those presently being or to be contested by Borrower in good faith in the ordinary course
of business and for which adequate reserves have been provided</FONT><FONT STYLE="color: #8A8A8A">.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #242424"><B>Lien
Priority. </B>Unless otherwise previously disclosed to Lender in writing, Borrower has not entered into or granted any Security
Agreements, or permitted the filing or attachment of any Security Interests on or affecting any of the Collateral directly or indirectly
securing </FONT><FONT STYLE="color: #3B3B3B">repayment </FONT><FONT STYLE="color: #242424">of Borrower's Loan and Note, that would
be prior or that may in any way be superior to Lender's Security Interests and rights in and to such Collateral.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #242424"><B>Binding
Effect. </B>This Agreement, the Note, all Security Agreements (if any), and all Related Documents are binding upon the signers
thereof, as well as upon their successors, representatives and assigns, and are </FONT><FONT STYLE="color: #3B3B3B">legally </FONT><FONT STYLE="color: #242424">enforceable
in accordance with their respective terms.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #242424"><B>AFFIRMATIVE
COVENANTS.</B> Borrower covenants and agrees with Lender that,</FONT> <FONT STYLE="color: #3B3B3B">so </FONT><FONT STYLE="color: #242424">long
as this Agreement remains in effect, Borrower will:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #242424"><B>Notices
of Claims and Litigation. </B>Promptly inform Lender in writing of (1)&nbsp;all material adverse changes in Borrower&rsquo;s financial
condition,</FONT> <FONT STYLE="color: #4F4F4F">and</FONT> <FONT STYLE="color: #242424">(2)&nbsp;all existing and all threatened
litigation, claims, </FONT><FONT STYLE="color: #3B3B3B">investigations, </FONT><FONT STYLE="color: #242424">administrative proceedings
or similar actions affecting Borrower or any Guarantor which could materially affect the financial condition of Borrower or the
financial </FONT><FONT STYLE="color: #3B3B3B">condition </FONT><FONT STYLE="color: #242424">of any Guarantor.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #242424"><B>Financial
Records. </B>Maintain its books and records in accordance with GAAP, applied on a consistent basis, and permit Lender to examine
and audit Borrower's books and records at all reasonable times</FONT><FONT STYLE="color: #4F4F4F">.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; color: #242424"><B>Financial
Statements. </B>Furnish Lender with the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify; color: #242424"><B>Annual Statements.
</B>As soon as available, but in no event later than one-hundred twenty (120) days after the end of each fiscal year, Borrower&rsquo;s
balance sheet and income statement for the year ended, prepared by Borrower.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><B>Additional
Requirements. Tax Returns.</B> Not later than ninety (90) days after AMREP Corporation has filed it tax return for the tax reporting
period ended, Guarantor shall cause to be delivered to Lender the state and federal tax returns for Guarantor. Guarantor&rsquo;s
annual internally prepared balance sheets and income statements shall be delivered to Lender within one hundred twenty (120) days
after the end of the fiscal year.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify">All
financial reports required to be provided under this Agreement shall be prepared in accordance with GAAP, applied on a consistent
basis as Lender may reasonably request, and certified by Borrower as being true and correct.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #242424"><B>Additional
Information. </B>Furnish such additional information and statements, as Lender may request from time to time</FONT><FONT STYLE="color: #4F4F4F">.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #242424"><B>Insurance.
</B>Maintain fire and other risk insurance, public liability insurance, and such other insurance as Lender may require with respect
to Borrower's properties and operations, in form, amounts, coverages and with insurance companies acceptable to Lender. Borrower,
upon request of Lender, will deliver to Lender from time to time the policies or certificates of </FONT><FONT STYLE="color: #3B3B3B">insurance
</FONT><FONT STYLE="color: #242424">in form satisfactory to Lender, </FONT><FONT STYLE="color: #3B3B3B">including </FONT><FONT STYLE="color: #242424">stipulations
that coverages will not be cancelled or diminished without at least ten (10)&nbsp;days prior written notice to Lender</FONT><FONT STYLE="color: #8A8A8A">.
</FONT><FONT STYLE="color: #242424">Each insurance policy also shall include an endorsement providing that </FONT><FONT STYLE="color: #3B3B3B">coverage
</FONT><FONT STYLE="color: #242424">in favor of Lender will not be impaired in any way by any act, omission or default of Borrower
or any other person</FONT><FONT STYLE="color: #8A8A8A">. </FONT><FONT STYLE="color: #242424">In connection with all policies covering
assets in which Lender holds or is offered a security interest for the Loans, Borrower will provide Lender with such lender's loss
payable or other endorsements as Lender may require.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #242424"><B>Insurance
Reports. </B>Furnish to Lender</FONT><FONT STYLE="color: #4F4F4F">, </FONT><FONT STYLE="color: #242424">upon request of Lender,
reports on each existing insurance policy showing such information as Lender may reasonably request, including without limitation
the follow</FONT><FONT STYLE="color: #4F4F4F">i</FONT><FONT STYLE="color: #242424">ng</FONT><FONT STYLE="color: #4F4F4F">: </FONT><FONT STYLE="color: #242424">(1)&nbsp;the
name of the insurer</FONT><FONT STYLE="color: #4F4F4F">; </FONT><FONT STYLE="color: #242424">(2)&nbsp;the risks insured; (3)&nbsp;the
amount of the policy; (4)&nbsp;the properties insured</FONT><FONT STYLE="color: #4F4F4F">; </FONT><FONT STYLE="color: #242424">(5)&nbsp;the
then current property values on the basis of which insurance has been obtained, and the manner of determining those values; and
(6)&nbsp;the expiration date of the policy.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify; color: #242424"><B>Guaranties.
</B>Prior to disbursement of any Loan proceeds, furnish executed guaranties of the Loans in favor of Lender, executed by the guarantor
named below, on Lender's forms, and in the amount and under the conditions set forth in those guaranties.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 50%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; margin-left: 1.25in">
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-top: 2pt; width: 50%; font-weight: bold; font-size: 10pt; padding-bottom: 2pt"><FONT STYLE="font-size: 10pt; color: #242424"><U>Name of Guarantor</U></FONT></TD>
    <TD STYLE="padding-top: 2pt; width: 50%; font-weight: bold; font-size: 10pt; padding-bottom: 2pt"><FONT STYLE="font-size: 10pt; color: #242424"><U>Amount</U></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-top: 2pt; font-size: 10pt; padding-bottom: 2pt"><FONT STYLE="font-size: 10pt; color: #242424">AMREP SOUTHWEST, INC.</FONT></TD>
    <TD STYLE="padding-top: 2pt; font-size: 10pt; padding-bottom: 2pt"><FONT STYLE="font-size: 10pt; color: #242424">Unlimited</FONT></TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #242424"><B>Other
Agreements</B></FONT><B><FONT STYLE="color: #4F4F4F">. </FONT></B><FONT STYLE="color: #242424">Comply with all terms </FONT><FONT STYLE="color: #3B3B3B">and
</FONT><FONT STYLE="color: #242424">conditions of all other agreements</FONT><FONT STYLE="color: #4F4F4F">, </FONT><FONT STYLE="color: #242424">whether
now or hereafter existing</FONT><FONT STYLE="color: #3B3B3B">, </FONT><FONT STYLE="color: #242424">between Borrower and</FONT>
<FONT STYLE="color: #3B3B3B">any </FONT><FONT STYLE="color: #242424">other party and notify Lender immediately in writing of any
default in </FONT><FONT STYLE="color: #3B3B3B">connection </FONT><FONT STYLE="color: #242424">with any other such agreements</FONT><FONT STYLE="color: #4F4F4F">.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify; color: #242424"><B>Loan
Proceeds.</B> Use all Loan proceeds solely for Borrower's business operations, unless specifically consented to the contrary by
Lender in writing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 34%"></TD>
    <TD STYLE="text-align: center; width: 32%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>BUSINESS LOAN AGREEMENT</B></FONT></TD>
    <TD STYLE="width: 34%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B></B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0.25in; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Loan No: 2401</B></FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>(Continued)</B></FONT></TD>
    <TD STYLE="padding-right: 0.25in; font-weight: bold; text-align: right"><B>Page&nbsp;3</B></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: center">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #242424"><B>Taxes,
Charges and Liens. </B>Pay and discharge when due all of its indebtedness and obligations, including without limitation all assessments</FONT><FONT STYLE="color: #4F4F4F">,
</FONT><FONT STYLE="color: #242424">taxes, governmental charges, levies and liens, of every kind and nature, </FONT><FONT STYLE="color: #3B3B3B">imposed
</FONT><FONT STYLE="color: #242424">upon Borrower or its properties</FONT><FONT STYLE="color: #4F4F4F">, </FONT><FONT STYLE="color: #242424">income</FONT><FONT STYLE="color: #4F4F4F">,
</FONT><FONT STYLE="color: #242424">or profits</FONT><FONT STYLE="color: #4F4F4F">, </FONT><FONT STYLE="color: #242424">prior to
the date on which penalties would attach, and all lawful claims that, if unpaid</FONT><FONT STYLE="color: #4F4F4F">, </FONT><FONT STYLE="color: #242424">might
become a lien or charge upon any of Borrower's properties, income</FONT><FONT STYLE="color: #707070">, </FONT><FONT STYLE="color: #242424">or
profits. Provided however, Borrower will not be required to pay and discharge any such assessment</FONT><FONT STYLE="color: #4F4F4F">,
tax, charge, </FONT><FONT STYLE="color: #242424">levy, lien or claim so long as (1)&nbsp;the legality of the same shall be contested
in good faith by appropriate proceedings, and (2)&nbsp;Borrower shall have established on Borrower's books adequate reserves with
respect to such contested assessment, tax, charge, levy, lien, or claim in accordance with GAAP.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify; color: #242424"><B>Performance.
</B>Perform and comply, in a timely manner, with all terms, conditions, and provisions set forth in this Agreement, in the Related
Documents, and in all other instruments and agreements between Borrower and Lender. Borrower shall notify Lender immediately in
writing of any default in connection with any agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify; color: #242424"><B>Operations.
</B>Maintain executive and management personnel with substantially the same qualifications and experience as the present executive
and management personnel; provide written notice to Lender of any change in executive and management personnel; conduct its business
affairs in a reasonable and prudent manner.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify; color: #242424"><B>Environmental
Studies. </B>Promptly conduct and complete, at Borrower's expense, all such investigations, studies, samplings and testings as
may be requested by Lender or any governmental authority relative to any substance. or any waste or by-product of any substance
defined as toxic or a hazardous substance under applicable federal, state, or local law. rule, regulation, order or directive,
at or affecting any property or any facility owned, leased or used by Borrower.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #242424"><B>Compliance
with Governmental Requirements. </B>Comply with all laws, ordinances, and regulations, now or hereafter in effect, of all governmental
authorities applicable to the conduct of Borrower's properties, businesses and operations, and to the use or occupancy of the Collateral,
including without limitation, the Americans With Disabilities Act. Borrower may contest in good faith any such law, ordinance,
or regulation and withhold compliance during any proceeding, </FONT><FONT STYLE="color: #3B3B3B">including </FONT><FONT STYLE="color: #242424">appropriate
appeals, so long as Borrower has notified Lender in writing prior to doing so and so long as, in Lender&rsquo;s sole opinion, Lender&rsquo;s
interests in the Collateral are not jeopardized Lender may require Borrower to post adequate security or a surety bond, reasonably
satisfactory to Lender, to protect Lender's interest.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify; color: #242424"><B>Inspection.
</B>Permit employees or agents of Lender at any reasonable time to inspect any and all Collateral for the Loan or Loans and Borrower's
other properties and to examine or audit Borrower's books, accounts. and records and to make copies and memoranda of Borrower's
books, accounts, and records. If Borrower now or at any time hereafter maintains any records (including without limitation computer
generated records and computer software programs for the generation of such records) in the possession of a third party, Borrower,
upon request of Lender, shall notify such party to permit Lender free access to such records at all reasonable times and to provide
Lender with copies of any records it may request, all at Borrower's expense.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify; color: #242424"><FONT STYLE="color: #242424"><B>Environmental
Compliance and Reports. </B>Borrower shall comply </FONT><FONT STYLE="color: #3B3B3B">in </FONT><FONT STYLE="color: #242424">all
respects with any and all Environmental Laws</FONT><FONT STYLE="color: #505050">; </FONT><FONT STYLE="color: #242424">not cause
or permit to exist, as a result of an </FONT><FONT STYLE="color: #3B3B3B">intentional </FONT><FONT STYLE="color: #242424">or unintentional
action or omission on Borrower's part or on the part of any third party, on property owned and/or occupied by Borrower, any environmental
activity where damage may result to the environment, unless such environmental activity is pursuant to and in compliance with the
conditions of a permit issued by the appropriate federal, state or local governmental authorities; shall furnish to Lender promptly
and in any event within thirty (30) days after receipt thereof a copy of any notice, summons, lien, citation, directive, letter
or other communication from any governmental agency or instrumentality concerning any intentional or unintentional action or omission
on Borrower's part in connection with any environmental activity whether or not there is damage to the environment and/or other
natural resources</FONT><FONT STYLE="color: #505050">.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify; color: #242424"><FONT STYLE="color: #242424"><B>Additional
Assurances. </B>Make, execute and deliver to Lender such promissory notes, mortgages, deeds of trust. security agreements, assignments,
financing statements</FONT><FONT STYLE="color: #505050">, </FONT><FONT STYLE="color: #242424">instruments</FONT><FONT STYLE="color: #505050">,
</FONT><FONT STYLE="color: #242424">documents and other agreements as Lender or its attorneys may reasonably request to evidence
and secure the Loans and to perfect all Security Interests.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in; text-align: justify"><FONT STYLE="color: #242424"><B>LENDER'S
EXPENDITURES. </B>If any action or proceeding is commenced that would materially affect Lender's </FONT><FONT STYLE="color: #3B3B3B">interest
</FONT><FONT STYLE="color: #242424">in the Collateral or if Borrower fails to comply with any provision of this Agreement or any
Related Documents, </FONT><FONT STYLE="color: #3B3B3B">including </FONT><FONT STYLE="color: #242424">but not limited to Borrower's
failure to discharge or pay when due any amounts Borrower is required to discharge or pay under this Agreement or any Related Documents,
Lender on Borrower's behalf may {but shall not be obligated to) take any action that Lender deems appropriate</FONT><FONT STYLE="color: #505050">,
</FONT><FONT STYLE="color: #242424">including but not limited to discharging or paying all taxes, liens, security interests</FONT><FONT STYLE="color: #505050">,
</FONT><FONT STYLE="color: #242424">encumbrances and other claims, at any time levied or placed on any Collateral and paying all
costs for </FONT><FONT STYLE="color: #505050">i</FONT><FONT STYLE="color: #242424">nsuring</FONT><FONT STYLE="color: #505050">,
</FONT><FONT STYLE="color: #242424">maintaining and preserving any Collateral. All such expenditures incurred or paid by Lender
for such purposes will then bear </FONT><FONT STYLE="color: #3B3B3B">interest </FONT><FONT STYLE="color: #242424">at the rate charged
under the Note from the date </FONT><FONT STYLE="color: #3B3B3B">incurred </FONT><FONT STYLE="color: #242424">or paid by Lender
to the date of repayment by Borrower. All such expenses will become a part of the Indebtedness and, at Lender's option, will (A)&nbsp;be
payable on demand; (B)&nbsp;be added to the balance of the Note and be apportioned among and be payable with any installment payments
to become due during either (1)&nbsp;the term of any applicable insurance policy; or (2)&nbsp;the remaining term of the Note</FONT><FONT STYLE="color: #505050">;
</FONT><FONT STYLE="color: #242424">or (C)&nbsp;be treated as a balloon payment which will be due and payable at the Note's maturity</FONT><FONT STYLE="color: #8E8E8E">.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in; text-align: justify"><FONT STYLE="color: #242424"><B>CESSATION
OF ADVANCES. </B>If Lender has made any commitment to make any Loan to Borrower, whether under this Agreement or under any other
agreement</FONT><FONT STYLE="color: #505050">, </FONT><FONT STYLE="color: #242424">Lender shall have no obligation to make Loan
Advances or to disburse Loan proceeds if: (A)&nbsp;Borrower or any Guarantor is in default under the terms of this Agreement or
any of the Related Documents or any other agreement that Borrower or any Guarantor has with Lender (B)&nbsp;Borrower or any Guarantor
dies. becomes incompetent or becomes insolvent, files a petition in bankruptcy or similar proceedings</FONT><FONT STYLE="color: #505050">,
or</FONT> <FONT STYLE="color: #242424">is adjudged a bankrupt; (C)&nbsp;there occurs a material adverse change in Borrower</FONT><FONT STYLE="color: #505050">'</FONT><FONT STYLE="color: #242424">s
financial condition, in the financial condition of any Guarantor or in the value of any Collateral securing any Loan</FONT><FONT STYLE="color: #505050">;
</FONT><FONT STYLE="color: #242424">or (D)&nbsp;any Guarantor seeks, claims or otherwise attempts to limit, modify or revoke such
Guarantor's guaranty of the Loan or any other loan with Lender.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in; text-align: justify"><FONT STYLE="color: #242424"><B>STATUTORY
LIEN. </B>Borrower agrees that </FONT><FONT STYLE="color: #3B3B3B">all </FONT><FONT STYLE="color: #242424">loan advances under
this Agreement </FONT><FONT STYLE="color: #3B3B3B">are </FONT><FONT STYLE="color: #242424">secured by all shares and deposits in
all joint and individual accounts Borrower has with Lender now </FONT><FONT STYLE="color: #3B3B3B">and </FONT><FONT STYLE="color: #242424">in
the future</FONT><FONT STYLE="color: #8E8E8E">. </FONT><FONT STYLE="color: #242424">Borrower author</FONT><FONT STYLE="color: #505050">iz</FONT><FONT STYLE="color: #242424">es
Lender. to the extent permitted by </FONT><FONT STYLE="color: #3B3B3B">applicable </FONT><FONT STYLE="color: #242424">law, to apply
the balance in these accounts to pay any amounts due under this Agreement when Borrower is in default under this Agreement. Shares
and deposits in an Individual Retirement Account and any other account that would lose special tax treatment under state or federal
law if given as security are not subject to the security interest Borrower has given </FONT><FONT STYLE="color: #3B3B3B">in </FONT><FONT STYLE="color: #242424">Borrower's
shares and deposits</FONT><FONT STYLE="color: #505050">.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in; text-align: justify"><B>PARTIAL RELEASE OF EXCESS
LAND. </B>The Line of Credit Mortgage securing the Loan (the &ldquo;Mortgage&rdquo;)<FONT STYLE="color: #242424">, encumbers </FONT><FONT STYLE="color: #282828"><B>Tracts
numbered Thirty-five (35) and Thirty-seven (37) of RIO RANCHO HAWKSITE, as the same is shown and designated on the plat entitled
 &ldquo;PLAT OF RIO RANCHO HAWKSITE, A SUBDIVISION OF A PORTION OF UNPLATTED PROPERTY WITHIN UNIT 25, RIO RANCHO ESTATES, BEING
A PORTION OF SECTION&nbsp;8, 9 AND 17, TOWNSHIP 13 NORTH, RANGE 3 EAST, NEW MEXICO PRINCIPAL MERIDIAN, CITY OF RIO RANCHO, SANDOVAL
COUNTY, NEW MEXICO&rdquo;, filed in the office of the County Clerk of Sandoval County, New Mexico on February&nbsp;24, 2004, in
Vol. 3, Folio 2392B (Rio Rancho Estates Plat Book No.&nbsp;17, Page&nbsp;16)(the &ldquo;Real Property&rdquo;). Notwithstanding
anything herein to the contrary, Borrower intends to replat the Real Property and upon the recording of a replat of the Real Property
creating Tract 35-A consisting of approximately 17.6240 acres, more or less, and Tract 37-A consisting of 24.0510 acres, more or
less (the &ldquo;Replat&rdquo;), with Tract 37-A continuing to secure the Loan subject to partial release provisions set forth
in the Mortgage. Tract 35-A shall be released from the operation of this Mortgage following the recording of the Replat within
ten (10)&nbsp;business days after a written request from Grantor to Lender.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in; text-align: justify"><FONT STYLE="color: #242424"><B>DEFAULT.
</B>Each of the following </FONT><FONT STYLE="color: #3B3B3B">shall </FONT><FONT STYLE="color: #242424">constitute an Event of
Default under this Agreement:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #242424"><B>Payment
Default. </B>Borrower fails </FONT><FONT STYLE="color: #3B3B3B">to </FONT><FONT STYLE="color: #242424">make any payment when due
under the Loan</FONT><FONT STYLE="color: #505050">.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 34%"></TD>
    <TD STYLE="text-align: center; width: 32%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>BUSINESS LOAN AGREEMENT</B></FONT></TD>
    <TD STYLE="width: 34%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B></B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0.25in; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Loan No: 2401</B></FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>(Continued)</B></FONT></TD>
    <TD STYLE="padding-right: 0.25in; font-weight: bold; text-align: right"><B>Page&nbsp;6</B></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: center">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify; color: #242424"><B>Other Defaults.
</B>Borrower fails to comply with or to perform any other term, obligation, covenant or condition contained in this Agreement or
in any of the Related Documents or to comply with or to perform any term, obligation, covenant or condition contained in any other
agreement between Lender and Borrower.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify; color: #242424"><FONT STYLE="color: #242424"><B>False
Statements. </B>Any warranty, representation or statement made or furnished to Lender by Borrower or on Borrower's behalf under
this Agreement or the Related Documents </FONT><FONT STYLE="color: #3A3A3A">is </FONT><FONT STYLE="color: #242424">false or misleading
in any material respect, either now or at the time made or furnished or becomes false or misleading at any time thereafter.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #242424"><B>Death
or Insolvency. </B>The dissolution of Borrower (regardless of whether election to continue is made). any member withdraws from
Borrower, or any other termination of Borrower's existence as a going business or the death of any member, the insolvency of Borrower,
the appointment of a receiver for any part of Borrower's property, any </FONT><FONT STYLE="color: #3A3A3A">assignment </FONT><FONT STYLE="color: #242424">for
the benefit of creditors, any type of creditor workout, or the commencement of any proceeding under any bankruptcy or insolvency
laws by or against Borrower.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #242424"><B>Defective
Collateralization. </B>This Agreement or any of the Related Documents ceases to be in full force and effect (including failure
of any collateral document to create a valid and perfected security interest or lien) at any time and for any reason</FONT><FONT STYLE="color: #525452">.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #242424"><B>Creditor
or Forfeiture Proceedings. </B>Commencement of foreclosure or forfeiture proceedings, whether by judicial proceeding, self-help,
repossession or any other method, by any creditor of Borrower or by any governmental agency against any collateral securing the
Loan</FONT><FONT STYLE="color: #525452">. </FONT><FONT STYLE="color: #242424">This includes a garnishment of any of Borrower's
accounts, </FONT><FONT STYLE="color: #3A3A3A">including </FONT><FONT STYLE="color: #242424">deposit accounts, with Lender. However,
this Event of Default shall not apply if there is a good faith dispute by Borrower as to the validity or reasonableness of the
claim which is the basis of the creditor or forfeiture proceeding and if Borrower g</FONT><FONT STYLE="color: #525452">i</FONT><FONT STYLE="color: #242424">ves
Lender written notice of the creditor or forfeiture proceeding and deposits with Lender monies or a surety bond for the creditor
or forfeiture proceeding, in an amount determined by Lender, in </FONT><FONT STYLE="color: #3A3A3A">its </FONT><FONT STYLE="color: #242424">sole
discretion, as being an adequate reserve or bond for the dispute.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in"><FONT STYLE="color: #242424"><B>Events Affecting Guarantor.
</B>Any of the preceding events occurs with respect to any Guarantor of any of the Indebtedness or any Guarantor dies or becomes
incompetent, or revokes or disputes the validity of, or liability under, any Guaranty of the Indebtedness. If </FONT>Guarantor
shall fail to maintain a minimum net worth equal to or greater than $29,000,000 <FONT STYLE="color: #242424">measured annually
as of April&nbsp;30<SUP>th</SUP> of each year </FONT>and determined by review of financial statements required to be provided to
Lender. Guarantor will provide to Lender (a)&nbsp;Guarantor&rsquo;s annual financial statements (balance sheet and income statement)
within 120 days of its Fiscal Year end (FYE is April&nbsp;30). All financial information provided to Lender will be in form and
content acceptable to Lender in its reasonable discretion. Guarantor&rsquo;s net worth covenant is a material inducement to Lender
making the Loan and Borrower agrees that a failure of Guarantor to maintain said minimum net worth shall constitute an Event of
Default under this Loan Agreement and Related Documents.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #242424"><B>Adverse
Change</B></FONT><B><FONT STYLE="color: #525452">. </FONT><FONT STYLE="color: #242424">A </FONT></B><FONT STYLE="color: #242424">material
adverse change occurs </FONT><FONT STYLE="color: #3A3A3A">in </FONT><FONT STYLE="color: #242424">Borrower's financial condition.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify; color: #242424"><B>Right to Cure.
</B>As a condition precedent to an Event of Default, Lender will provide Borrower written notice and thereafter either: (a)&nbsp;fifteen
(15) days to cure any monetary default; and (b)&nbsp;thirty (30) days to cure any non-monetary default or, if the non-monetary
default is of the nature that cannot reasonably be cured within thirty (30) days, then Grantor shall initiate steps which Lender,
in Lender&rsquo;s sole discretion, deems sufficient to cure the default and thereafter continues and completes all reasonable and
necessary steps sufficient to produce compliance as soon as reasonably practical.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in; text-align: justify"><B>EFFECT OF AN EVENT OF DEFAULT<FONT STYLE="color: #525452">.
</FONT></B><FONT STYLE="color: #242424">If any Event of Default shall occur, except where otherwise provided in this Agreement
or the Related Documents, all commitments and obligations of Lender under this Agreement or the Related Documents or any other
agreement immediately will terminate (including any obligation to make further Loan Advances or disbursements). and</FONT><FONT STYLE="color: #525452">,
</FONT><FONT STYLE="color: #242424">at Lender's option, all Indebtedness immediately will become due and payable, all without notice
of any kind to Borrower, except that in the case of an Event of Default of the type described in the &quot;Insolvency&quot; subsection
above, such acceleration shall be automatic and not optional. In addition, Lender shall have all the rights and remedies provided
in the Related Documents or available at law, in equity, or otherwise. Except as may be prohibited by applicable law, all of Lender's
rights and remedies shall be cumulative and may be exercised singularly or concurrently. Election by Lender to pursue any remedy
shall not exclude pursuit of any other remedy, and an election to make expenditures or to act to perform an obligation of Borrower
or of any Grantor shall not affect Lender's right to declare a default and to exercise its rights and remedies.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in; text-align: justify; color: #242424"><B>MISCELLANEOUS
PROVISIONS. </B>The following miscellaneous provisions are a part of this Agreement:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #242424"><B>Amendments.
</B>This Agreement, together with any Related Documents, constitutes the entire understanding and agreement of the parties as to
the matters set forth in this Agreement. No alteration of or amendment </FONT><FONT STYLE="color: #3A3A3A">to </FONT><FONT STYLE="color: #242424">this
Agreement shall be effective unless given in writing and signed by the party or parties sought to be charged or bound by the alteration
or amendment.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #242424"><B>Attorneys'
Fees; Expenses. </B>Borrower agrees to pay upon demand all of Lender's reasonable costs and reasonable expenses, including Lender</FONT><FONT STYLE="color: #525452">'</FONT><FONT STYLE="color: #242424">s
reasonable attorneys' fees and Lender's reasonable legal expenses, incurred in connection with the enforcement of this Agreement.
Lender may hire or pay someone else to help enforce this Agreement, and Borrower shall pay the reasonable costs and reasonable
expenses of such enforcement. Costs and expenses include Lender's reasonable attorneys' fees and legal expenses whether or not
there is a lawsuit, including reasonable attorneys' fees and reasonable legal expenses for bankruptcy proceedings (including efforts
to modify or vacate any automatic stay or injunction), appeals, and any anticipated post-judgment collection services</FONT><FONT STYLE="color: #525452">.
</FONT><FONT STYLE="color: #242424">Borrower also shall pay all court costs and such reasonable additional fees as may be directed
by the court.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #242424"><B>Caption
Headings. </B>Caption headings </FONT><FONT STYLE="color: #3A3A3A">in </FONT><FONT STYLE="color: #242424">this Agreement are for
convenience purposes only and are not to be used to interpret or define the provisions of this Agreement.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #242424"><B>Consent
to Loan Participation</B></FONT><B><FONT STYLE="color: #525452">. </FONT></B><FONT STYLE="color: #525452">Lender may provide to
any one or more purchasers, or potential purchasers, any information or knowledge Lender may have about Borrower or about any other
matter related to the Loan provided that: (i)&nbsp;Lender notifies Borrower in writing of such disclosure prior to such disclosure;
and (ii)&nbsp;such purchaser executes, acknowledges and delivers to Lender and Borrower a confidentiality agreement in form and
substance mutually acceptable to Borrower and Lender.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify; color: #242424"><B>Governing
Law. </B>This Agreement will be governed by federal law applicable to Lender and, to the extent not preempted by federal law, the
laws of the State of New Mexico without regard to its conflicts of law provisions. This Agreement has been accepted by Lender in
the State of New Mexico.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #242424"><B>Choice
of Venue.</B> If there is a lawsuit</FONT><FONT STYLE="color: #525452">, </FONT><FONT STYLE="color: #242424">Borrower agrees upon
Lender's request to submit to the jurisdiction of the courts of Sandoval County</FONT><FONT STYLE="color: #525452">, State</FONT>
<FONT STYLE="color: #242424">of New Mexico.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #242424"><B>No
Waiver by Lender.</B> Lender shall not be deemed to have waived </FONT><FONT STYLE="color: #3A3A3A">any </FONT><FONT STYLE="color: #242424">rights
under this Agreement unless such waiver is given in writing and signed by Lender. No delay or omission on the part of Lender in
exercising any right shall operate as a waiver of such right or any other right. A waiver by Lender of a provision of this Agreement
shall not prejudice or constitute a waiver of Lender's right otherwise to demand strict compliance with that provision or any other
provision of this Agreement. No prior waiver by Lender, nor any course of dealing between Lender and Borrower, or between Lender
and any Grantor, shall constitute a waiver of any of Lender's rights or of any of Borrower&rsquo;s or any Grantor</FONT><FONT STYLE="color: #545454">'</FONT><FONT STYLE="color: #242424">s
obligations as to any future transactions</FONT><FONT STYLE="color: #545454">. </FONT><FONT STYLE="color: #242424">Whenever the
consent of Lender is required under this Agreement, the granting of such consent by Lender in any instance shall not constitute
continuing consent to subsequent instances where such consent is required and in all cases such consent may be granted or withheld
in the sole discretion of Lender.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 34%"></TD>
    <TD STYLE="text-align: center; width: 32%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>BUSINESS LOAN AGREEMENT</B></FONT></TD>
    <TD STYLE="width: 34%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B></B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0.25in; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Loan No: 2401</B></FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>(Continued)</B></FONT></TD>
    <TD STYLE="padding-right: 0.25in; font-weight: bold; text-align: right"><B>Page&nbsp;7</B></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: center">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #242424"><B>Notices.
</B>Any notice required to be given under this Agreement shall be given in writing, and shall be effective when actually delivered
(unless otherwise required by law), when deposited with a nationally recognized overnight courier, or, if mailed, when deposited
in the United States mail, as first class, certified or registered mail postage prepaid, directed to the addresses shown near the
beginning of this Agreement. Any party may change its address for notices under this Agreement by giving formal written notice
to the other parties, specifying that the purpose of the notice is to change the party's address</FONT><FONT STYLE="color: #545454">.
</FONT><FONT STYLE="color: #242424">For notice purposes, Borrower agrees to keep Lender informed at all times of Borrower's current
address. Unless otherwise provided or required by law, </FONT><FONT STYLE="color: #3B3B3B">if </FONT><FONT STYLE="color: #242424">there
is more than one Borrower, any not</FONT><FONT STYLE="color: #2B5236">i</FONT><FONT STYLE="color: #242424">ce given by Lender to
any Borrower </FONT><FONT STYLE="color: #3B3B3B">is </FONT><FONT STYLE="color: #242424">deemed to be notice given to all Borrowers.
Notice by facsimile is expressly prohibited.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #242424"><B>Severability.
</B>If a court of competent jurisdiction finds any provision of this Agreement to be illegal, invalid, or unenforceable as to any
circumstance, that finding shall not make the offending provision illegal, invalid, or unenforceable as to any other circumstance</FONT><FONT STYLE="color: dimgray">.
</FONT><FONT STYLE="color: #242424">If feasible, the offending provision shall be considered modified so that it becomes legal,
valid and enforceable. If the offending provision cannot be so modified, it shall be considered deleted from this Agreement. Unless
otherwise required by law, the illegality, invalidity, or unenforceability of any provision of this Agreement shall not affect
the legality, validity or enforceability of any other provision of this Agreement.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #242424"><B>Subsidiaries
of Borrower. </B>To the extent the context of any provisions of this Agreement makes it appropriate, including without limitation
any representation, warranty or covenant, the word &quot;Borrower&quot; as used in this Agreement shall include all of Borrower's
subsidiaries. Notwithstanding the foregoing however, under no circumstances shall this Agreement be construed to require Lender
to make any Loan or other financial accommodation to any of Borrower</FONT><FONT STYLE="color: #545454">'</FONT><FONT STYLE="color: #242424">s
subsidiaries.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify; color: #242424"><B>Successors
and Assigns. </B>All covenants and agreements by or on behalf of Borrower contained in this Agreement or any Related Documents
shall bind Borrower's successors and assigns and shall inure to the benefit of Lender and its successors and assigns. Borrower
shall not, however, have the right to assign Borrower's rights under this Agreement or any interest therein, without the prior
written consent of Lender.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #242424"><B>Survival
of Representations and Warranties. </B>Borrower understands and agrees that in extending Loan Advances, Lender is </FONT><FONT STYLE="color: #3B3B3B">relying
</FONT><FONT STYLE="color: #242424">on all representations, warranties, and covenants made by Borrower in this Agreement or in
any certificate or other instrument delivered by Borrower to Lender under this Agreement or the Related Documents. Borrower further
agrees that regardless of any investigation made by Lender, all such representations, warranties and covenants will survive the
extension of Loan Advances and delivery to Lender of the Related Documents, shall be continuing in nature, shall be deemed made
and redated by Borrower at the time each Loan Advance is made, and shall remain in full force and effect until such time as Borrower's
Indebtedness shall be paid in full, or until this Agreement shall be terminated in the manner provided above, whichever is the
last to occur.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #242424"><B>Time
</B></FONT><B><FONT STYLE="color: #3B3B3B">is </FONT><FONT STYLE="color: #242424">of the Essence. </FONT></B><FONT STYLE="color: #242424">Time
is of the essence in the performance of this Agreement.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in; text-align: justify"><FONT STYLE="color: #242424"><B>DEFINITIONS.
</B>The following capitalized words and terms shall have the following meanings when used in this Agreement. Unless specifically
stated to the contrary, all references to dollar amounts shall mean amounts in lawful money of the United States of America</FONT><FONT STYLE="color: dimgray">.
</FONT><FONT STYLE="color: #242424">Words and terms used in the singular shall include the plural, and the plural shall include
the singular, as the context may require</FONT><FONT STYLE="color: #959595">. </FONT><FONT STYLE="color: #242424">Words and terms
not otherwise defined in this Agreement shall have the meanings attributed to such terms in the Uniform Commercial Code. Accounting
words and terms not otherwise defined in this Agreement shall have the meanings assigned to them </FONT><FONT STYLE="color: #3B3B3B">in
</FONT><FONT STYLE="color: #242424">accordance with generally accepted accounting principles as in effect on the date of this Agreement:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify; color: #242424"><B>Advance. </B>The
word &quot;Advance&quot; means a disbursement of Loan funds made, or to be made, to Borrower or on Borrower&rsquo;s behalf on a
line of credit or multiple advance basis under the terms and conditions of this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify; color: #242424"><B>Agreement.
</B>The word &quot;Agreement&quot; means this Business Loan Agreement, as this Business Loan Agreement may be amended or modified
from time to time, together with all exhibits and schedules attached to this Business Loan Agreement from time to time.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #242424"><B>Borrower.
</B>The word &quot;Borrower&quot; means MOUNTAIN HAWK EAST DEVELOPMENT COMPANY LLC and includes all co-signers and co</FONT><FONT STYLE="color: dimgray">-</FONT><FONT STYLE="color: #242424">makers
signing the Note and all their successors and assigns</FONT><FONT STYLE="color: #545454">.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #242424"><B>Collateral.
</B>The word &quot;Collateral&quot; means all property and assets granted as collateral security for a Loan, whether real or personal
property, whether granted directly or </FONT><FONT STYLE="color: #3B3B3B">indirectly, </FONT><FONT STYLE="color: #242424">whether
granted now or in the future, and whether granted in the form of a security </FONT><FONT STYLE="color: #3B3B3B">interest, </FONT><FONT STYLE="color: #242424">mortgage,
collateral mortgage, deed of trust, assignment, pledge, crop pledge, chattel mortgage, collateral chattel mortgage, chattel trust,
factor's lien, equipment trust, conditional sale, trust receipt, lien, charge</FONT><FONT STYLE="color: dimgray">, </FONT><FONT STYLE="color: #242424">lien
or title retention contract, lease or consignment intended as a security device, or any other security or lien </FONT><FONT STYLE="color: #3B3B3B">interest
</FONT><FONT STYLE="color: #242424">whatsoever, whether created by law, contract, or otherwise</FONT><FONT STYLE="color: dimgray">.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #242424"><B>Environmental
Laws. </B>The words &quot;Environmental Laws&quot; mean any and all state, federal and local statutes</FONT><FONT STYLE="color: #545454">,
</FONT><FONT STYLE="color: #242424">regulations and ordinances relating to the protection of human health or the environment, including
without limitation the Comprehensive </FONT><FONT STYLE="color: #3B3B3B">Environmental </FONT><FONT STYLE="color: #242424">Response</FONT><FONT STYLE="color: #545454">,
</FONT><FONT STYLE="color: #242424">Compensation</FONT><FONT STYLE="color: #545454">, </FONT><FONT STYLE="color: #242424">and Liability
Act of 1980, as amended, 42 U.S.C. </FONT><FONT STYLE="color: #3B3B3B">Section&nbsp;</FONT><FONT STYLE="color: #242424">9601, <I>et
seq</I>. (&quot;CERCLA&quot;), the Superfund Amendments and Reauthorization Act of </FONT><FONT STYLE="color: #3B3B3B">1986, </FONT><FONT STYLE="color: #242424">Pub.
L. No.&nbsp;99-499 (&quot;SARA&quot;)</FONT><FONT STYLE="color: #545454">, </FONT><FONT STYLE="color: #242424">the Hazardous Materials
Transportation Act, 49 U.S</FONT><FONT STYLE="color: #545454">.</FONT><FONT STYLE="color: #242424">C. Section&nbsp;1801, <I>et
seq</I>., the Resource Conservation and Recovery Act, 42 U.S</FONT><FONT STYLE="color: #545454">.</FONT><FONT STYLE="color: #242424">C</FONT><FONT STYLE="color: #545454">.
</FONT><FONT STYLE="color: #242424">Section&nbsp;6901, <I>et seq</I></FONT><FONT STYLE="color: #959595">.</FONT><FONT STYLE="color: #3B3B3B">,
</FONT><FONT STYLE="color: #242424">or other applicable state or federal laws,</FONT> <FONT STYLE="color: #545454">rules</FONT><FONT STYLE="color: #242424">,
or regulations adopted pursuant thereto.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #242424"><B>Event
of Default. </B>The words &quot;Event of Default&quot; mean any of the events of default set forth in this Agreement </FONT><FONT STYLE="color: #3B3B3B">in
</FONT><FONT STYLE="color: #242424">the default section of this Agreement.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #242424"><B>GAAP.
</B>The word &quot;GAAP&quot; means generally accepted accounting principles</FONT><FONT STYLE="color: gray">.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #242424"><B>Grantor.
</B>The word &quot;Grantor&quot; means each and all of the persons or entities granting a Security Interest in any Collateral for
the Loan</FONT><FONT STYLE="color: #545454">, including</FONT> <FONT STYLE="color: #242424">without limitation </FONT><FONT STYLE="color: #3B3B3B">all
</FONT><FONT STYLE="color: #242424">Borrowers granting such a Security Int</FONT><FONT STYLE="color: #545454">e</FONT><FONT STYLE="color: #242424">rest.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #242424"><B>Guarantor.
</B>The word </FONT><FONT STYLE="color: #3B3B3B">&quot;Guarantor&quot; </FONT><FONT STYLE="color: #242424">means </FONT><FONT STYLE="color: #262626">AMREP
SOUTHWEST,&nbsp;INC</FONT><FONT STYLE="color: #242424">.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #242424"><B>Guaranty</B></FONT><B><FONT STYLE="color: #545454">.
</FONT></B><FONT STYLE="color: #242424">The word </FONT><FONT STYLE="color: #3B3B3B">&quot;Guaranty&quot; </FONT><FONT STYLE="color: #242424">means
the guaranty from Guarantor to Lender, including without limitation a guaranty of all or part of the Note.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #242424"><B>Hazardous
Substances. </B>The words </FONT><FONT STYLE="color: #3B3B3B">&quot;Hazardous </FONT><FONT STYLE="color: #242424">Substances&quot;
mean materials that</FONT><FONT STYLE="color: #545454">, </FONT><FONT STYLE="color: #242424">because of their quantity, concentration
or physical, chemical or infectious characteristics</FONT><FONT STYLE="color: #545454">, </FONT><FONT STYLE="color: #242424">may
cause or pose a present or potential hazard to human health or the environment when improperly used, treated, stored, disposed
of,</FONT> <FONT STYLE="color: #545454">generated, manufactured</FONT><FONT STYLE="color: #242424">, transported or otherwise handled</FONT><FONT STYLE="color: dimgray">.
</FONT><FONT STYLE="color: #242424">The words &ldquo;Hazardous Substances&quot; are used in their very broadest sense and include
without limitation any and all hazardous or toxic substances, materials or waste as defined by or listed under the Environmental
Laws. The term &quot;Hazardous Substances&quot; also includes, without limitation, petroleum and petroleum by-products or any fraction
thereof and asbestos.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #242424"><B>Indebtedness.
</B>The word </FONT><FONT STYLE="color: #3B3D3B">&quot;Indebtedness&quot; </FONT><FONT STYLE="color: #242424">means the indebtedness
evidenced by the Note, including all principal and interest together with all other indebtedness and costs and expenses for which
Borrower is responsible under this Agreement or under any of the Related Documents.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #242424"><B>Lender.
</B>The word &quot;Lender&quot; means Sandia Laboratory Federal Credit Union, its successors and assigns</FONT><FONT STYLE="color: #575757">.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><B>Loan.
</B>The word &quot;Loan&quot; means any and all loans and financial accommodations from Lender to Borrower whether now or hereafter
existing, and however evidenced, including without limitation those loans and financial accommodations described herein or described
on any exhibit or schedule attached to this Agreement from time to time.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #242424"><B>Note.
</B>The word &quot;Note&quot; means the Note dated February&nbsp;3, 2020 and executed by MOUNTAIN HAWK EAST DEVELOPMENT COMPANY
LLC </FONT><FONT STYLE="color: #3B3D3B">in </FONT><FONT STYLE="color: #242424">the principal amount of $3,000,000, together with
all renewals of, extensions of, modifications of, refinancing of, consolidations of, and substitutions for the note or credit agreement.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 34%"></TD>
    <TD STYLE="text-align: center; width: 32%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>BUSINESS LOAN AGREEMENT</B></FONT></TD>
    <TD STYLE="width: 34%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B></B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0.25in; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Loan No: 2401</B></FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>(Continued)</B></FONT></TD>
    <TD STYLE="padding-right: 0.25in; font-weight: bold; text-align: right"><B>Page&nbsp;8</B></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: center">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #242424"><B>Related
Documents. </B>The words &quot;Related Documents&quot; mean all promissory notes, credit agreements, loan agreements, environmental
agreements, guaranties, security agreements, mortgages, deeds of trust, security deeds, collateral mortgages, and all other instruments,
agreements and documents, whether now or hereafter existing, executed in connection with the Loan</FONT><FONT STYLE="color: #575757">.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #242424"><B>Security
Agreement. </B>The words &quot;Security Agreement&quot; mean and include without limitation any agreements, promises, covenants</FONT><FONT STYLE="color: #575757">,
</FONT><FONT STYLE="color: #242424">arrangements, understandings or other agreements, whether created by law, contract, or otherwise,
evidencing, governing, representing</FONT><FONT STYLE="color: #575757">, </FONT><FONT STYLE="color: #242424">or creating a Security
Interest.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify; color: #242424"><B>Security Interest.
</B>The words &quot;Security Interest&quot; mean, without limitation, any and all types of collateral security, present and future,
whether in the form of a lien, charge, encumbrance, mortgage, deed of trust, security deed, assignment, pledge, crop pledge, chattel
mortgage, collateral chattel mortgage, chattel trust, factor's lien, equipment trust, conditional sale, trust receipt, lien or
title retention contract, lease or consignment intended as a security device, or any other security or lien interest whatsoever
whether created by law, contract, or otherwise.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in; text-align: justify; color: #242424"><B>BORROWER
ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS BUSINESS LOAN AGREEMENT AND BORROWER AGREES TO ITS TERMS. THIS BUSINESS LOAN
AGREEMENT IS DATED FEBRUARY 3, 2020.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0.25in; color: #242424"><B>BORROWER:</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0.25in; color: #242424">MOUNTAIN HAWK EAST DEVELOPMENT COMPANY
LLC</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 50%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; color: #242424">By:</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; color: rgb(36,36,36)">/s/ Carey Plant</FONT></TD>
    </TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD>CAREY PLANT, Vice President of MOUNTAIN<BR> HAWK EAST DEVELOPMENT COMPANY LLC</TD>
    </TR>
</TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; color: #242424">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in; color: #242424"><B>LENDER:</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; color: #242424">SANDIA LABORATORY FEDERAL CREDIT
UNION</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 50%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #242424">By:</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: rgb(36,36,36)">/s/ Dan Cover</FONT></TD>
    </TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD>
        Dan Cover, Vice
President<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: #242424"></P></TD>
    </TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<TR STYLE="vertical-align: top">
    <TD STYLE="width: 34%"></TD>
    <TD STYLE="text-align: center; width: 32%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>BUSINESS LOAN AGREEMENT</B></FONT></TD>
    <TD STYLE="width: 34%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B></B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0.25in; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Loan No: 2401</B></FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>(Continued)</B></FONT></TD>
    <TD STYLE="padding-right: 0.25in; font-weight: bold; text-align: right"><B>Page&nbsp;9</B></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: center">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; color: #242424">Exhibit&nbsp;&ldquo;A&rdquo;
 &ndash; Borrowing Base Form</P>



<P STYLE="margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 95%; border-collapse: collapse; margin-left: 0.25in; margin-right: 0.25in">
<TR>
    <TD STYLE="white-space: nowrap; vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD COLSPAN="3" ROWSPAN="2" STYLE="border: Black 1pt solid; background-color: #FFE699; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Mountain Hawk East Development Company, LLC Borrowing Base Calculation</B></FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR>
    <TD STYLE="white-space: nowrap; vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Line</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR>
    <TD STYLE="white-space: nowrap; vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; width: 2%">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; border-left: Black 1pt solid; background-color: #FFE699; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-size: 10pt; width: 15%">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; background-color: #FFE699; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-size: 10pt; width: 65%"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>As of ____________________________________</B></FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; background-color: #FFE699; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-size: 10pt; width: 17%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD></TR>
<TR>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="border-right: black 1pt solid; border-left: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Based on the Phase 1, 2 and 3 bulk value contained in the appraisal dated&nbsp;&nbsp;_______________&nbsp;&nbsp;</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR>
    <TD COLSPAN="3" STYLE="border-top: Black 1pt solid; border-right: black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; background-color: #FFE699; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Phase 1</B></FONT></TD>
    <TD ROWSPAN="2" STYLE="white-space: nowrap; border-top: Black 1pt solid; border-right: Black 1pt solid; border-bottom: black 1pt solid; background-color: #FFF2CC; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR>
    <TD STYLE="white-space: nowrap; border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">1</FONT></TD>
    <TD COLSPAN="2" STYLE="border-right: black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">if no lots have been released from the Mortgage in such phase</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR>
    <TD COLSPAN="4" STYLE="white-space: nowrap; border-right: black 1pt solid; border-left: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 14pt"><B>OR</B></FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR>
    <TD ROWSPAN="3" STYLE="white-space: nowrap; border-right: Black 1pt solid; border-bottom: black 1pt solid; border-left: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">2</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">if lots have been released from the Mortgage in such phase, then the remaining value of such phase shall equal the sale price per lot provided in the applicable (if any) purchase agreement with a homebuilder multiplied by the number of unreleased lots in such phase</FONT></TD>
    <TD ROWSPAN="3" STYLE="white-space: nowrap; border-right: Black 1pt solid; border-bottom: black 1pt solid; border-left: Black 1pt solid; background-color: #FFF2CC; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR>
    <TD COLSPAN="2" ROWSPAN="2" STYLE="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Total lots owned by Borrower _________ multipled by lot purchase price__________ contained in the applicable (if any) purchase agreement with a homebuilder with respect to the lots in such phase (repeat calculation for any additional contracts)</B></FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR>
    <TD>&nbsp;</TD></TR>
<TR>
    <TD STYLE="white-space: nowrap; vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR>
    <TD COLSPAN="3" STYLE="border-top: Black 1pt solid; border-right: black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; background-color: #FFE699; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Phase 2</B></FONT></TD>
    <TD ROWSPAN="2" STYLE="white-space: nowrap; border-top: Black 1pt solid; border-right: Black 1pt solid; border-bottom: black 1pt solid; background-color: #FFF2CC; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR>
    <TD STYLE="white-space: nowrap; border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">3</FONT></TD>
    <TD COLSPAN="2" STYLE="border-right: black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">if no lots have been released from the Mortgage in such phase</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR>
    <TD COLSPAN="4" STYLE="white-space: nowrap; border-right: black 1pt solid; border-left: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 14pt"><B>OR</B></FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR>
    <TD ROWSPAN="3" STYLE="white-space: nowrap; border-right: Black 1pt solid; border-bottom: black 1pt solid; border-left: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">4</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">if lots have been released from the Mortgage in such phase, then the remaining value of such phase shall equal the sale price per lot provided in the applicable (if any) purchase agreement with a homebuilder multiplied by the number of unreleased lots in such phase</FONT></TD>
    <TD ROWSPAN="3" STYLE="white-space: nowrap; border-right: Black 1pt solid; border-bottom: black 1pt solid; border-left: Black 1pt solid; background-color: #FFF2CC; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR>
    <TD COLSPAN="2" ROWSPAN="2" STYLE="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Total lots owned by Borrower _________ multipled by lot purchase price__________ contained in the applicable (if any) purchase agreement with a homebuilder with respect to the lots in such phase (repeat calculation for any additional contracts)</B></FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR>
    <TD>&nbsp;</TD></TR>
<TR>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR>
    <TD COLSPAN="3" STYLE="border-top: Black 1pt solid; border-right: black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; background-color: #FFE699; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Phase 3</B></FONT></TD>
    <TD ROWSPAN="2" STYLE="white-space: nowrap; border-top: Black 1pt solid; border-right: Black 1pt solid; border-bottom: black 1pt solid; background-color: #FFF2CC; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR>
    <TD STYLE="white-space: nowrap; border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">5</FONT></TD>
    <TD COLSPAN="2" STYLE="border-right: black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">if no lots have been released from the Mortgage in such phase</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR>
    <TD COLSPAN="4" STYLE="white-space: nowrap; border-right: black 1pt solid; border-left: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 14pt"><B>OR</B></FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR>
    <TD ROWSPAN="3" STYLE="white-space: nowrap; border-right: Black 1pt solid; border-bottom: black 1pt solid; border-left: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">6</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">if lots have been released from the Mortgage in such phase, then the remaining value of such phase shall equal the sale price per lot provided in the applicable (if any) purchase agreement with a homebuilder multiplied by the number of unreleased lots in such phase</FONT></TD>
    <TD ROWSPAN="3" STYLE="white-space: nowrap; border-right: Black 1pt solid; border-bottom: black 1pt solid; border-left: Black 1pt solid; background-color: #FFF2CC; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR>
    <TD COLSPAN="2" ROWSPAN="2" STYLE="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Total lots owned by Borrower _________ multipled by lot purchase price__________ contained in the applicable (if any) purchase agreement with a homebuilder with respect to the lots in such phase (repeat calculation for any additional contracts)</B></FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR>
    <TD>&nbsp;</TD></TR>
<TR>
    <TD STYLE="white-space: nowrap; vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">7</FONT></TD>
    <TD COLSPAN="2" STYLE="border-top: Black 1pt solid; border-right: black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; background-color: #FFE699; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Eligible Collateral Value (Total the appropriate lines listed above)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B></FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; border-top: Black 1pt solid; border-right: Black 1pt solid; border-bottom: Black 1pt solid; background-color: #FFF2CC; padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR>
    <TD STYLE="white-space: nowrap; vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">8</FONT></TD>
    <TD COLSPAN="2" STYLE="white-space: nowrap; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Collateral Margin</B></FONT></TD>
    <TD STYLE="white-space: nowrap; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>75%</B></FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">9</FONT></TD>
    <TD COLSPAN="2" STYLE="border-top: Black 1pt solid; border-right: black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; background-color: #FFE699; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Total Margined Collateral Value must be greater than or equal to the balance on the revolving line of credit (Multiply line 7 by line 8)</B></FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; border-top: Black 1pt solid; border-right: Black 1pt solid; border-bottom: Black 1pt solid; background-color: #FFF2CC; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;&nbsp;</B></FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR>
    <TD STYLE="white-space: nowrap; vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR>
    <TD STYLE="white-space: nowrap; vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Total Potential Debt Exposure <FONT STYLE="font-size: 10pt">(existing $3.0MM RLOC)</FONT></FONT></TD>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,000,000 </FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR>
    <TD STYLE="white-space: nowrap; vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR>
    <TD STYLE="white-space: nowrap; vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR>
    <TD STYLE="white-space: nowrap; vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="white-space: nowrap; vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">_________________________________&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;________________________________</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR>
    <TD STYLE="white-space: nowrap; vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="white-space: nowrap; vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Signature:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Date:</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
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<TYPE>EX-10.2
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<FILENAME>tm206507d1_ex10-2.htm
<DESCRIPTION>EXHIBIT 10.2
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<P STYLE="text-align: right; margin: 0"><B>Exhibit 10.2</B></P>

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<P STYLE="margin: 0">&nbsp;&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.6pt; text-align: center; color: #282828">PROMISSORY NOTE</P>



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<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 16.3pt 0pt 42.2pt; text-align: justify; text-indent: 0.25pt; color: #242424"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
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    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 0; width: 50%; color: #282828; text-align: left; padding-left: 24.5pt">Loan No: 2401</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 0; width: 0%; color: #282828">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 0; padding-right: 15.9pt; text-align: right; width: 50%; color: #282828; padding-left: 5.4pt">Page&nbsp;1</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; padding-bottom: 0; color: #282828; text-align: left; padding-left: 24.5pt">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; padding-bottom: 0; color: #282828">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; padding-bottom: 0; padding-right: 15.9pt; text-align: right; color: #282828; padding-left: 5.4pt">&nbsp;</TD></TR>
</TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 16.3pt 0pt 42.2pt; text-align: justify; text-indent: 0.25pt; color: #242424"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 16.3pt 0pt 42.2pt; text-align: justify; text-indent: 0.25pt; color: #242424"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 16.3pt 0pt 42.2pt; text-align: justify; text-indent: 0.25pt; color: #242424"></P>

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<P STYLE="margin: 0">&nbsp;&nbsp;</P>

<P STYLE="margin: 0"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
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    <TD STYLE="width: 19%; border: black 1pt solid">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 2.9pt 0pt 0; text-align: center"><B>Principal</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 2.65pt 0pt 0; text-align: center"><B>$3,000,000.00</B></P></TD>
    <TD STYLE="width: 11%; border-top: black 1pt solid; border-right: black 1pt solid; border-bottom: black 1pt solid; padding-right: 6.05pt; padding-left: 3.35pt; font-size: 10pt; text-indent: 4.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Loan Date<BR>
 02-03-2020</B></FONT></TD>
    <TD STYLE="width: 11%; border-top: black 1pt solid; border-right: black 1pt solid; border-bottom: black 1pt solid; padding-right: 4.35pt; padding-left: 1.4pt; font-size: 10pt; text-align: center; text-indent: 8.85pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Maturity </B></FONT><B><BR>
<FONT STYLE="font-size: 10pt">08-01-2022</FONT></B></TD>
    <TD STYLE="width: 15%; border-top: black 1pt solid; border-right: black 1pt solid; border-bottom: black 1pt solid; padding-right: 22.85pt; padding-left: 19.9pt; font-size: 10pt; text-align: center; text-indent: 2.6pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Loan No<BR>
 2401</B></FONT></TD>
    <TD STYLE="width: 13%; border-top: black 1pt solid; border-right: black 1pt solid; border-bottom: black 1pt solid">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 17.5pt"><B>Call / Coll</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 17.5pt"><B>70 / 26</B></P></TD>
    <TD STYLE="width: 15%; border-top: black 1pt solid; border-right: black 1pt solid; border-bottom: black 1pt solid">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 21.1pt"><B>Account</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 21.1pt"><B>0010188747</B></P></TD>
    <TD STYLE="width: 7%; border-top: black 1pt solid; border-right: black 1pt solid; border-bottom: black 1pt solid; padding-right: 6.1pt; padding-left: 8.6pt; font-size: 10pt; text-indent: -5.3pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Officer </B></FONT><B><BR>
<FONT STYLE="font-size: 10pt">DC</FONT></B></TD>
    <TD STYLE="text-align: left; width: 9%; border-top: black 1pt solid; border-right: black 1pt solid; border-bottom: black 1pt solid; padding-left: 8.6pt; font-size: 10pt; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Initials</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="8" STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 3.2pt 0pt 0; text-align: center">References in the boxes above
        are for Lender's use only and do not limit the applicability of this document to any particular loan or item.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 3.45pt 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">Any
        item above containing</FONT> &quot;***&quot; has been omitted due to text length limitations.</P></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 43.55pt 0pt 31.65pt; text-align: center; color: Red"></P>

<P STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; color: Red">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 43.55pt 0pt 31.65pt; text-align: center; color: Red">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 43.55pt 0pt 31.65pt; text-align: center; color: Red"></P>

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<TR STYLE="vertical-align: top">
    <TD STYLE="white-space: nowrap; padding-left: 3pt; width: 10%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: #282828">Borrower:</FONT></TD>
    <TD STYLE="width: 47%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: #282828">MOUNTAIN HAWK EAST DEVELOPMENT
COMPANY LLC</FONT></TD>
    <TD STYLE="width: 9%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: #282828">Lender:</FONT></TD>
    <TD STYLE="width: 34%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: #282828">Sandia Laboratory Federal Credit Union</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; color: #282828">333 RIO RANCHO DR., SUITE 202 RIO</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; color: #282828">3707 Juan Tabo Blvd.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; color: #282828">RANCHO, NM 87124</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; color: #282828">Albuquerque, NM 87111</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 25pt; width: 33.3%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #282828">Principal Amount: $3,000,000.00</FONT></TD>
    <TD STYLE="width: 33.3%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #282828">Interest Rate: 4.500%</FONT></TD>
    <TD STYLE="width: 33.3%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #282828">Date of Note: February&nbsp;3, 2020</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 43.55pt 0pt 31.65pt; text-align: center; color: Red"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 25pt; text-align: justify; color: #282828"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 22.5pt 0pt 24.35pt; text-align: justify; text-indent: 0.1pt; color: #282828"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>PROMISE
T<FONT STYLE="font-family: Wingdings"></FONT>O PAY. MOUNTAIN HAWK EAST DEVELOPMENT COMPANY LLC (&quot;Borrower&quot;) promises to pay to Sandia Laboratory Federal Credit Union
(&quot;Lender&quot;), or order, </B></FONT>in <B>lawful money of the United States of America, the principal amount of Three Million
</B>&amp; <B>00/100 Dollars ($3,000,000.00) or so much as may be outstanding, together with interest on the unpaid outstanding
principal balance of each advance, calculated as described in the &quot;INTEREST CALCULATION METHOD&quot; paragraph using an interest
rate of 4.500% per annum. Interest shall be calculated from the date of each advance until repayment of each advance. The interest
rate may change under the terms and conditions of the &quot;INTEREST AFTER DEFAULT&quot; section.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 22.5pt 0pt 24.35pt; text-align: justify; text-indent: 0.1pt; color: #282828">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 22.5pt 0pt 24.35pt; text-align: justify; text-indent: 0.1pt; color: #282828"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>PAYMENT.
Borrower will pay this loan in one payment of all outstanding principal </B></FONT>plus <B>all accrued unpaid interest on August
1, 2022. In addition, Borrower will pay regular monthly payments of all accrued unpaid interest due as of each payment date, beginning
March 1, 2020, with all subsequent interest payments to be due on the same day of each month after that. Unless otherwise agreed
or required by applicable law, payments will be applied first to any accrued unpaid interest; then to principal; then to any late
charges; and then to any unpaid collection costs. Borrower will pay Lender at Lender's address shown above or at such other place
as Lender may designate in writing.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 22.35pt 0pt 24.25pt; text-align: justify; text-indent: 0.2pt; color: #282828"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 22.5pt 0pt 24.35pt; text-align: justify; text-indent: 0.1pt; color: #282828"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>INTEREST
CALCULATION METHOD. Interest on this Note is computed on a 365/365 basis; that is, by applying the ratio of the interest rate over
the number of days </B></FONT>in <B>a year (365 for all years, including leap years), multiplied by the outstanding principal balance,
multiplied by the actual number of days the principal balance is outstanding. All interest payable under this Note is computed
using this method.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 22.75pt 0pt 24.3pt; text-align: justify; text-indent: -0.05pt; color: #282828"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 22.5pt 0pt 24.35pt; text-align: justify; text-indent: 0.1pt; color: #282828"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: #282828"><B>PREPAYMENT.
</B></FONT><FONT STYLE="color: #282828">Borrower agrees that all loan fees and other prepaid finance charges are earned fully as
of the date of the loan and will not be subject to refund upon early payment (whether voluntary or as a result of default), except
as otherwise required by law</FONT><FONT STYLE="color: #4d4d4d">. </FONT><FONT STYLE="color: #282828">Except for the foregoing,
Borrower may pay without penalty all or a portion of the amount owed earlier than it is due</FONT><FONT STYLE="color: #4d4d4d">.
</FONT><FONT STYLE="color: #282828">Early payments will not, unless agreed to by Lender in writing, relieve Borrower of Borrower's
obligation to continue to make payments of accrued unpaid interest. Rather, early payments will reduce the principal balance due.
Borrower agrees not to send Lender payments marked &quot;paid in full&quot;, </FONT><FONT STYLE="color: #3b3b3b">&quot;without
</FONT><FONT STYLE="color: #282828">recourse&quot;, or similar language</FONT><FONT STYLE="color: #606060">. </FONT><FONT STYLE="color: #282828">If
Borrower sends such a payment, Lender may accept it without losing any of Lender's rights under </FONT><FONT STYLE="color: #3b3b3b">this
</FONT><FONT STYLE="color: #282828">Note, and Borrower will remain obligated to pay any further amount owed to Lender. <B>All written
communications concerning disputed amounts, including any check or other payment instrument that indicates that the payment constitutes
 &quot;payment in full&quot; of the amount owed or that is tendered with other conditions or limitations or as full satisfaction
of a disputed amount must be mailed or delivered to: Sandia Laboratory Federal Credit Union, Attn: Business Services, 3707 Juan
Tabo Blvd. Albuquerque, NM 87111.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 22.3pt 0pt 24.25pt; text-align: justify; text-indent: -0.05pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 22.5pt 0pt 24.35pt; text-align: justify; text-indent: 0.1pt; color: #282828"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>LATE
CHARGE. </B></FONT>If a payment is late 10 or more days, Borrower will be charged <B>5.000% of the unpaid portion of the regularly
scheduled payment or $10.00, whichever is greater.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 23.35pt 0pt 24.05pt; text-align: justify; text-indent: 0.15pt; color: #282828">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 22.5pt 0pt 24.35pt; text-align: justify; text-indent: 0.1pt; color: #282828"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #282828"><B>INTEREST
AFTER DEFAULT. </B></FONT><FONT STYLE="color: #282828">Upon the occurrence of an Event of Default, including failure to pay upon
final maturity, the </FONT><FONT STYLE="color: #3b3b3b">interest </FONT><FONT STYLE="color: #282828">rate on this Note shall be
increased by 5</FONT><FONT STYLE="color: #606060">.</FONT><FONT STYLE="color: #282828">000 percentage points. However</FONT><FONT STYLE="color: #4d4d4d">,
</FONT><FONT STYLE="color: #282828">in no event will the interest rate exceed the maximum </FONT><FONT STYLE="color: #3b3b3b">interest
</FONT><FONT STYLE="color: #282828">rate limitations under applicable law.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 23.35pt 0pt 24pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 22.5pt 0pt 24.35pt; text-align: justify; text-indent: 0.1pt; color: #282828"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #282828"><B>DEFAULT.
</B></FONT><FONT STYLE="color: #282828">Each of the following shall constitute an event of default (&quot;Event of Default&quot;)
under this Note</FONT><FONT STYLE="color: #606060">:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24.25pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 41.2pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: #282828"><B>Payment
Default. </B></FONT><FONT STYLE="color: #282828">Borrower fails to make any payment when due under this Note</FONT><FONT STYLE="color: #b5b5b5">.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 41.2pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 10.5pt 0pt 41.25pt; text-align: justify; text-indent: -0.05pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #282828"><B>Other
Defaults. </B></FONT><FONT STYLE="color: #282828">Borrower fails to comply with or to perform any other </FONT><FONT STYLE="color: #3b3b3b">term,
</FONT><FONT STYLE="color: #282828">obligation, covenant or condition contained in th</FONT><FONT STYLE="color: #4d4d4d">i</FONT><FONT STYLE="color: #282828">s
Note or in any of the </FONT><FONT STYLE="color: #3b3b3b">related </FONT><FONT STYLE="color: #282828">documents or to comply with
or to perform any term, obligation, </FONT><FONT STYLE="color: #3b3b3b">covenant </FONT><FONT STYLE="color: #282828">or condition
contained in </FONT><FONT STYLE="color: #3b3b3b">any </FONT><FONT STYLE="color: #282828">other agreement between Lender and Borrower</FONT><FONT STYLE="color: #4d4d4d">.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 10.5pt 0pt 41.25pt; text-align: justify; text-indent: -0.05pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 10.5pt 0pt 41.05pt; text-align: justify; text-indent: -0.05pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #282828"><B>False
Statements. </B></FONT><FONT STYLE="color: #282828">Any warranty, representation or statement made or furnished to Lender by Borrower
or on Borrower's behalf under this Note or the related documents is false or misleading in any material respect, either now or
</FONT><FONT STYLE="color: #3b3b3b">at </FONT><FONT STYLE="color: #282828">the time </FONT><FONT STYLE="color: #3b3b3b">made </FONT><FONT STYLE="color: #282828">or
furnished or becomes false or misleading at any time thereafter</FONT><FONT STYLE="color: #606060">.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 10.5pt 0pt 41.05pt; text-align: justify; text-indent: -0.05pt"><FONT STYLE="color: #606060">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 10.5pt 0pt 40.95pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #282828"><B>Death
or Insolvency. </B></FONT><FONT STYLE="color: #3b3b3b">The </FONT><FONT STYLE="color: #282828">dissolution </FONT><FONT STYLE="color: #3b3b3b">of
Borrower </FONT><FONT STYLE="color: #282828">(r</FONT><FONT STYLE="color: #4d4d4d">e</FONT><FONT STYLE="color: #282828">g</FONT><FONT STYLE="color: #4d4d4d">a</FONT><FONT STYLE="color: #282828">rdless
of wh</FONT><FONT STYLE="color: #606060">e</FONT><FONT STYLE="color: #282828">th</FONT><FONT STYLE="color: #4d4d4d">e</FONT><FONT STYLE="color: #282828">r
</FONT><FONT STYLE="color: #3b3b3b">election </FONT><FONT STYLE="color: #282828">to </FONT><FONT STYLE="color: #3b3b3b">continue
is </FONT><FONT STYLE="color: #282828">made), </FONT><FONT STYLE="color: #3b3b3b">any member </FONT><FONT STYLE="color: #282828">withdraws
from Borrower</FONT><FONT STYLE="color: #4d4d4d">, </FONT><FONT STYLE="color: #282828">or any other te</FONT><FONT STYLE="color: #1a4423">r</FONT><FONT STYLE="color: #282828">mination
of Borrower's existence as a going business or the death of any member, the insolvency of Borrower the appointment of a rece</FONT><FONT STYLE="color: #36523d">i</FONT><FONT STYLE="color: #282828">ver
for any part of Borrower's property</FONT><FONT STYLE="color: #606060">, </FONT><FONT STYLE="color: #282828">any assignment for
the benefit of creditors, any type of creditor workout, or the commencement of any proceeding under any bankruptcy or insolvency
laws by or against Borrower.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 10.5pt 0pt 40.95pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 10.5pt 0pt 40.95pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #282828"><B>Creditor
or Forfeiture Proceedings. </B></FONT><FONT STYLE="color: #282828">Commencement of foreclosure or forfeiture proceedings, whether
by judicial proceeding, self-help</FONT><FONT STYLE="color: #4d4d4d">, </FONT><FONT STYLE="color: #282828">repossession or any
other method</FONT><FONT STYLE="color: #4d4d4d">, </FONT><FONT STYLE="color: #282828">by any creditor of Borrower or by any governmental
agency against any collateral securing the loan</FONT><FONT STYLE="color: #858585">. </FONT><FONT STYLE="color: #282828">This includes
a garnishment of any of Borrower's </FONT><FONT STYLE="color: #3b3b3b">accounts, </FONT><FONT STYLE="color: #282828">including
deposit accounts, with Lender. However, this Event of Default shall </FONT><FONT STYLE="color: #262626">not apply if there is a
good faith dispute by Borrower as to </FONT><FONT STYLE="color: #3d3d3d">the </FONT><FONT STYLE="color: #262626">validity or reasonableness
of the claim which is the basis of the creditor or forfeiture proceeding and if Borrower gives Lender written notice of the creditor
or forfeiture proceeding and deposits with Lender monies or a surety bond for the cred</FONT><FONT STYLE="color: #2d543d">i</FONT><FONT STYLE="color: #262626">tor
or forfeiture proceeding, in an amount determined by Lender, in </FONT><FONT STYLE="color: #3d3d3d">its </FONT><FONT STYLE="color: #262626">sole
discretion, as being an adequate reserve or bond for the dispute.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 15.6pt 0pt 41.95pt; text-align: justify; text-indent: -0.15pt; color: #262626">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 15.6pt 0pt 41.95pt; text-align: justify; text-indent: -0.15pt; color: #262626"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Events
Affecting Guarantor. </B></FONT>Any of the preceding events occurs with respect to any Guarantor of any of the indebtedness or
any Guarantor dies or becomes incompetent, or revokes or disputes the validity of, or liability under, any guaranty of the indebtedness
evidenced by this Note.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 15.65pt 0pt 41.85pt; text-align: justify; text-indent: 0.25pt; color: #262626"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 15.65pt 0pt 41.85pt; text-align: justify; text-indent: 0.25pt; color: #262626"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Adverse
Change. </B></FONT>A material adverse change occurs in Borrower's financial condition.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 15.65pt 0pt 41.85pt; text-align: justify; text-indent: 0.25pt; color: #262626">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 16.3pt 0pt 42.2pt; text-align: justify; text-indent: 0.25pt; color: #242424"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Right
to Cure. </B></FONT>As a condition precedent to an Event of Default, Lender will provide Borrower written notice and thereafter
either: (a) fifteen (15) days to cure any monetary default; and (b) thirty (30) days to cure any non-monetary default or, if the
non-monetary default is of the nature that cannot reasonably be cured within thirty (30) days, then Grantor shall initiate steps
which Lender, in Lender&rsquo;s sole discretion, deems sufficient to cure the default and thereafter continues and completes all
reasonable and necessary steps sufficient to produce compliance as soon as reasonably practical.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 16.3pt 0pt 42.2pt; text-align: justify; text-indent: 0.25pt; color: #242424"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 16.3pt 0pt 42.2pt; text-align: justify; text-indent: 0.25pt; color: #242424">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center; color: #242424">PROMISSORY NOTE</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 16.3pt 0pt 42.2pt; text-align: justify; text-indent: 0.25pt; color: #242424"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 16.3pt 0pt 42.2pt; text-align: justify; text-indent: 0.25pt; color: #242424">&nbsp;</P>

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    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 0; width: 50%; color: #282828; text-align: left; padding-left: 24.5pt">Loan No: 2401</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 0; width: 0%; color: #282828">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 0; padding-right: 15.9pt; text-align: right; width: 50%; color: #282828; padding-left: 5.4pt">Page&nbsp;2</TD></TR>
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    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; padding-bottom: 0; padding-right: 15.9pt; text-align: right; color: #282828; padding-left: 5.4pt">&nbsp;</TD></TR>
</TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 16.3pt 0pt 42.2pt; text-align: justify; text-indent: 0.25pt; color: #242424"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 16.3pt 0pt 42.2pt; text-align: justify; text-indent: 0.25pt; color: #242424"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 16.3pt 0pt 42.2pt; text-align: justify; text-indent: 0.25pt; color: #242424"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 16.3pt 0pt 42.2pt; text-align: justify; text-indent: 0.25pt; color: #242424">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 15.9pt 0pt 24.55pt; text-align: justify; text-indent: 0.15pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #262626"><B>LENDER'S
RIGHTS. </B></FONT><FONT STYLE="color: #262626">Upon the occurrence of an Event of Default, Lender may declare the entire unpaid
principal balance under this Note and all accrued unpaid interest </FONT><FONT STYLE="color: #3d3d3d">immediately </FONT><FONT STYLE="color: #262626">due,
and then Borrower will pay that amount.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 15.9pt 0pt 24.55pt; text-align: justify; text-indent: 0.15pt"><FONT STYLE="color: #262626">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 15.9pt 0pt 24.55pt; text-align: justify; text-indent: 0.15pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #262626"><B>ATTORNEYS'
FEES; EXPENSES. </B></FONT><FONT STYLE="color: #262626">Lender may hire or pay someone else to help collect this Note if Borrower
does not pay</FONT><FONT STYLE="color: #5b5b5b">. </FONT><FONT STYLE="color: #262626">Borrower will pay Lender that amount. This
includes, subject to any limits under applicable law, Lender's reasonable attorneys' fees and Lender's reasonable legal expenses,
whether or not there is a lawsuit, including reasonable attorneys' fees, reasonable expenses for bankruptcy proceedings (including
efforts to modify or vacate any automatic stay or injunction), and appeals. If not prohibited by applicable law, Borrower also
will pay any court costs, in addition to all other sums provided by law.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 15.45pt 0pt 24.75pt; text-align: justify; text-indent: 0.3pt"><FONT STYLE="color: #262626">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 15.9pt 0pt 24.55pt; text-align: justify; text-indent: 0.15pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #262626"><B>GOVERNING
LAW</B></FONT><FONT STYLE="color: #262626">. This Note will be governed by federal law applicable to Lender and, to the extent
not preempted by federal law, the laws of the State of New Mexico without regard to its conflicts of law provisions. This Note
has been accepted by Lender in the State of New Mexico</FONT><FONT STYLE="color: #5b5b5b">.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 15pt 0pt 24.9pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 15.9pt 0pt 24.55pt; text-align: justify; text-indent: 0.15pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>CHOICE
OF VENUE. </B></FONT>If there is a lawsuit, Borrower agrees upon Lender's request to submit to the jurisdiction of the courts located
in Sandoval County, State of New Mexico.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 15.8pt 0pt 24.95pt; text-align: justify; color: #262626">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 15.9pt 0pt 24.55pt; text-align: justify; text-indent: 0.15pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #262626"><B>STATUTORY
LIEN. </B></FONT><FONT STYLE="color: #262626">Borrower agrees that all loan advances under this Note are secured by all shares
and deposits in all joint and individual accounts Borrower has with Lender now and in the future. Borrower authorizes Lender, to
the extent permitted by applicable law, to apply the balance in these accounts to pay any amounts due under this Note when Borrower
is in default under this Note. Shares and deposits in an Individual Retirement Account and any other account that would lose special
tax treatment under state or federal law if given as security are not subject to the security interest Borrower has given in Borrower's
shares and deposits</FONT><FONT STYLE="color: dimgray">.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 15.55pt 0pt 24.8pt; text-align: justify; text-indent: 0.25pt"><FONT STYLE="color: dimgray"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24.95pt; text-align: justify; color: #262626"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 15.9pt 0pt 24.55pt; text-align: justify; text-indent: 0.15pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>COLLATERAL.
</B></FONT>Borrower acknowledges this Note is secured by the following collateral described in the security instruments listed
herein:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24.95pt; text-align: justify; color: #262626">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 41.9pt; text-align: justify; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: #262626">(A)&nbsp;&nbsp;
</FONT><FONT STYLE="color: #262626">a Line of Credit Mortgage, dated February 3, 2020, to Lender on real property located in SANDOVAL
County, State of New Mexico</FONT><FONT STYLE="color: #5b5b5b">.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 41.9pt; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 15.35pt 0pt 41.9pt; text-align: justify; text-indent: 0in; color: #262626"><FONT STYLE="font-family: Times New Roman, Times, Serif">(B)&nbsp;&nbsp;
</FONT>a Collateral Assignment of Purchase Agreement dated February 3, 2020, by and from Borrower to and in favor of Lender which
assigns that certain Lot Purchase Agreement dated as of August 30, 2019.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 15.35pt 0pt 41.9pt; text-align: justify; text-indent: 0in; color: #262626">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 15.9pt 0pt 24.55pt; text-align: justify; text-indent: 0.15pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #262626"><B>LINE
OF CREDIT. </B></FONT><FONT STYLE="color: #262626">This Note evidences a revolving line of </FONT><FONT STYLE="color: #3d3d3d">credit.
The principal amount of this Note may be drawn, paid down, redrawn, and repaid in conformity with the Advances provision of this
Note. </FONT><FONT STYLE="color: #262626">Advances under this Note may be requested either orally or in writing by Borrower or
by an authorized person</FONT><FONT STYLE="color: dimgray">. </FONT><FONT STYLE="color: #262626">Lender may, but need not, require
that </FONT><FONT STYLE="color: #3d3d3d">all </FONT><FONT STYLE="color: #262626">oral requests be confirmed in writing. All communications,
instructions, or directions by telephone or otherwise to Lender are to be directed to Lender's office shown above. Borrower agrees
to be liable for all sums either: (A) advanced in accordance with the instructions of an authorized person or (B) credited to any
of Borrower's accounts with Lender. The unpaid principal balance owing on this Note at any time may be evidenced by endorsements
on this Note or by Lender&rsquo;s internal records, including daily computer printouts.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 15.45pt 0pt 24.8pt; text-align: justify; text-indent: -0.05pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 15.9pt 0pt 24.55pt; text-align: justify; text-indent: 0.15pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #262626"><B>SUCCESSOR
INTERESTS. </B></FONT><FONT STYLE="color: #262626">The terms of this Note shall be binding upon Borrower, and upon Borrower</FONT><FONT STYLE="color: #5b5b5b">'</FONT><FONT STYLE="color: #262626">s
heirs, personal representatives, successors and assigns, and shall inure to the benefit of Lender and </FONT><FONT STYLE="color: #3d3d3d">its
</FONT><FONT STYLE="color: #262626">successors and assigns.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 15.45pt 0pt 25.05pt; text-align: justify; text-indent: -0.05pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 15.9pt 0pt 24.55pt; text-align: justify; text-indent: 0.15pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #262626"><B>GENERAL
PROVISIONS. </B></FONT><FONT STYLE="color: #262626">If any part of this Note cannot be enforced, </FONT><FONT STYLE="color: #3d3d3d">this
</FONT><FONT STYLE="color: #262626">fact will not affect the rest of the Note</FONT><FONT STYLE="color: #5b5b5b">. </FONT><FONT STYLE="color: #262626">Lender
may delay or forgo enforcing any of its rights or remedies under this Note without losing them. Borrower, to the extent allowed
by law, waives presentment, demand for payment and notice of dishonor. Upon any change in the terms of this Note, and unless otherwise
</FONT><FONT STYLE="color: #3d3d3d">expressly </FONT><FONT STYLE="color: #262626">stated in writing, Borrower shall not be released
from liability. Borrower </FONT><FONT STYLE="color: #3d3d3d">agrees </FONT><FONT STYLE="color: #262626">that Lender may </FONT><FONT STYLE="color: #3d3d3d">renew
</FONT><FONT STYLE="color: #262626">or extend (repeatedly and for </FONT><FONT STYLE="color: #3d3d3d">any </FONT><FONT STYLE="color: #262626">length
of time) this loan or </FONT><FONT STYLE="color: #3d3d3d">release any </FONT><FONT STYLE="color: #262626">party or guarantor or
</FONT><FONT STYLE="color: #3d3d3d">collateral or </FONT><FONT STYLE="color: #262626">impair, fail to </FONT><FONT STYLE="color: #3d3d3d">realize
</FONT><FONT STYLE="color: #262626">upon or perfect </FONT><FONT STYLE="color: #3d3d3d">Lender's security </FONT><FONT STYLE="color: #262626">interest
in </FONT><FONT STYLE="color: #3d3d3d">the </FONT><FONT STYLE="color: #262626">collateral; </FONT><FONT STYLE="color: #3d3d3d">and
</FONT><FONT STYLE="color: #262626">tak</FONT><FONT STYLE="color: #5b5b5b">e </FONT><FONT STYLE="color: #262626">any other action
deemed necessary by Lender without the </FONT><FONT STYLE="color: #3d3d3d">consent </FONT><FONT STYLE="color: #262626">of or notice
to anyone. Borrower also </FONT><FONT STYLE="color: #3d3d3d">agrees </FONT><FONT STYLE="color: #262626">that Lender may modify
this loan without the consent of or notice to anyone other than Borrower.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 15.1pt 0pt 24.8pt; text-align: justify; text-indent: 0.15pt"><FONT STYLE="color: #262626">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 15.9pt 0pt 24.55pt; text-align: justify; text-indent: 0.15pt">PRIOR TO
SIGNING THIS NOTE, BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS NOTE. BORROWER AGREES TO THE TERMS OF THE NOTE.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 1.25pt 0pt 0.35in; text-indent: -0.2pt; color: #282828">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 15.9pt 0pt 24.55pt; text-align: justify; text-indent: 0.15pt">BORROWER ACKNOWLEDGES RECEIPT
OF A COMPLETED COPY OF THIS PROMISSORY NOTE.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 15.9pt 0pt 24.55pt; text-align: justify; text-indent: 0.15pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 15.9pt 0pt 24.55pt; text-align: justify; text-indent: 0.15pt"><B>BORROWER:</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 138.7pt 0pt 25.05pt; color: #282828">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 15.9pt 0pt 24.55pt; text-align: justify; text-indent: 0.15pt">MOUNTAIN HAWK EAST DEVELOPMENT COMPANY
LLC</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 25.25pt; color: #282828">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 24.55pt; width: 7%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: #242424">By:</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; width: 43%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: #242424">/s/ Carey Plant</FONT></TD>
    <TD STYLE="width: 50%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: #282828">CAREY PLANT, Vice President of MOUNTAIN</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: #282828">HAWK EAST DEVELOPMENT COMPANY LLC</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>



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<DOCUMENT>
<TYPE>EX-10.3
<SEQUENCE>4
<FILENAME>tm206507d1_ex10-3.htm
<DESCRIPTION>EXHIBIT 10.3
<TEXT>
<HTML>
<HEAD>
     <TITLE></TITLE>
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<BODY STYLE="font: 10pt Times New Roman, Times, Serif">

<P STYLE="text-align: right; margin: 0"><B>Exhibit 10.3</B></P>

<P STYLE="margin: 0"></P>

<P STYLE="margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="border-top: Black 1pt solid; border-left: Black 1pt solid; width: 19%"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Principal</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>$3,000,000.00</B></P>

</TD>
    <TD STYLE="border-top: Black 1pt solid; border-left: Black 1pt solid; width: 11%; padding-left: 3.35pt; font-size: 10pt; text-indent: 4.8pt"><B>Loan Date<BR>
 02-03-2020</B></TD>
    <TD STYLE="border-top: Black 1pt solid; border-left: Black 1pt solid; width: 11%; font-size: 10pt; text-align: center"><B>Maturity<BR>
 08-01-2022</B></TD>
    <TD STYLE="border-top: Black 1pt solid; border-left: Black 1pt solid; width: 15%; font-size: 10pt; text-align: center"><B>Loan No <BR>
2401</B></TD>
    <TD STYLE="border-top: Black 1pt solid; border-left: Black 1pt solid; width: 13%"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 17.5pt"><B>Call / Coll</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 17.5pt"><B>70 / 26</B></P>

</TD>
    <TD STYLE="border-top: Black 1pt solid; border-left: Black 1pt solid; width: 15%"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 21.1pt"><B>Account</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 11.3pt"><B>0010188747</B></P>

</TD>
    <TD STYLE="border-top: Black 1pt solid; border-left: Black 1pt solid; width: 7%; padding-left: 8.6pt; font-size: 10pt; text-indent: -5.3pt"><B>Officer<BR>
 DC</B></TD>
    <TD STYLE="text-align: left; border-top: Black 1pt solid; border-left: Black 1pt solid; width: 9%; padding-left: 8.6pt; font-size: 10pt; vertical-align: bottom"><B>Initials</B></TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="8" STYLE="border: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">References in the boxes above are for Lender's use only and do not limit the applicability of this document to any particular loan or item.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Any item above containing &quot;***&quot; has been omitted due to text length limitations.</P>

</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; color: #282828">RECORDATION REQUESTED BY:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in; color: #282828">Sandia Laboratory
Federal Credit Union</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in; color: #282828">3707 Juan Tabo Blvd.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; color: #282828">Albuquerque,
NM 87111</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; color: #282828">WHEN RECORDED <B>MAIL </B>TO:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in; color: #282828">Sandia Laboratory
Federal Credit Union</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in; color: #282828">3707 Juan Tabo Blvd.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; color: #282828">Albuquerque,
NM 87111</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; color: #282828">SEND TAX NOTICES TO:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in; color: #282828">Sandia Laboratory
Federal Credit Union</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in; color: #282828">3707 Juan Tabo Blvd.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; color: #282828">Albuquerque,
NM 87111</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; color: #282828; text-align: right">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; color: #282828; text-align: right">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; color: #282828; text-align: right">FOR RECORDER'S USE ONLY</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; color: #282828">LINE OF CREDIT MORTGAGE</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in; text-align: justify; color: #242424"><B>MAXIMUM LIEN</B>. The
lien of this Mortgage shall not exceed at any one time $6,000,000.00.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in; text-align: justify; color: #282828">THIS MORTGAGE dated Februaryuary
3, 2020, is made and executed between MOUNTAIN HAWK EAST DEVELOPMENT COMPANY LLC, A NEW MEXICO LIMITED LIABILITY COMPANY (referred
to below as &quot;Grantor&quot;) and Sandia Laboratory Federal Credit Union, whose address is 3707 Juan Tabo Blvd., Albuquerque,
NM 87111 (referred to below as &quot;Lender&quot;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in; text-align: justify; color: #282828"><B>GRANT OF MORTGAGE. Grantor,
for consideration paid, grants and conveys to Lender </B>all of Grantor's right, title, and interest in and to the following described
real property, together with all existing or subsequently erected or affixed buildings, improvements and fixtures; all easements,
rights of way, and appurtenances; all water, water rights, watercourses and ditch rights (including stock in utilities with ditch
or irrigation rights); and all other rights, royalties, and profits relating to the real property, including without limitation
all minerals, oil, gas, geothermal and similar matters, (the &quot;Real Property&quot;) located in SANDOVAL County, State of New
Mexico:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in; text-align: justify; color: #282828"><B>Tracts numbered Thirty-five
(35) and Thirty-seven (37) of RIO RANCHO HAWKSITE, as the same is shown and designated on the plat entitled &ldquo;PLAT OF RIO
RANCHO HAWKSITE, A SUBDIVISION OF A PORTION OF UNPLATTED PROPERTY WITHIN UNIT 25, RIO RANCHO ESTATES, BEING A PORTION OF SECTION&nbsp;8,
9 AND 17, TOWNSHIP 13 NORTH, RANGE 3 EAST, NEW MEXICO PRINCIPAL MERIDIAN, CITY OF RIO RANCHO, SANDOVAL COUNTY, NEW MEXICO&rdquo;,
filed in the office of the County Clerk of Sandoval County, New Mexico on February&nbsp;24, 2004, in Vol. 3, Folio 2392B (Rio Rancho
Estates Plat Book No.&nbsp;17, Page&nbsp;16).</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in; text-align: justify; color: #282828">The Real Property or its
address is commonly known as a portion of <B>TRACTS 35 and 37 OF HAWKSITE SUBDIVISION, RIO RANCHO, NM 87124</B>. If there is a
conflict between the legal description and the Real Property address, the legal description shall control<B>. Notwithstanding anything
herein to the contrary, Borrower intends to replat the Real Property and upon the recording of a replat of the Real Property creating
Tract 35-A consisting of approximately 17.6240 acres, more or less, and Tract 37-A consisting of 24.0510 acres, more or less (the
 &ldquo;Replat&rdquo;), with Tract 37-A continuing to secure the Loan subject to partial release provisions set forth in the Mortgage.
Tract 35-A shall be released from the operation of this Mortgage following the recording of the Replat within ten (10)&nbsp;business
days after a written request from Grantor to Lender.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in; text-align: justify; color: #282828"><B>This
Mortgage secures the Indebtedness including, without limitation, a revolving line of credit, which obligates Lender to make advances
to Grantor so long as Grantor complies with all the terms of the Note.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in; text-align: justify; color: #282828"><B>WITH MORTGAGE COVENANTS.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in; text-align: justify"><FONT STYLE="color: #282828">Grantor presently
assigns to Lender all of Grantor's right, title, and interest in and to all present and future leases of the Property and all Rents
from the Property. In addition, Grantor grants to Lender a Uniform Commercial Code security interest in the Personal Property and
Rents</FONT><FONT STYLE="color: #707070">.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in; text-align: justify; color: #282828"><B>THIS MORTGAGE,&nbsp;INCLUDING
THE ASSIGNMENT OF RENTS AND THE SECURITY INTEREST IN THE RENTS AND PERSONAL PROPERTY,&nbsp;IS GIVEN TO SECURE (A)&nbsp;PAYMENT
OF THE INDEBTEDNESS AND (B)&nbsp;PERFORMANCE OF ANY AND ALL OBLIGATIONS UNDER THE NOTE, THE RELATED DOCUMENTS, AND THIS MORTGAGE
AND IS UPON THE STATUTORY MORTGAGE CONDITION FOR THE BREACH OF WHICH IT IS SUBJECT TO FORECLOSURE AS PROVIDED BY LAW. THIS MORTGAGE
IS GIVEN AND ACCEPTED ON THE FOLLOWING TERMS:</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in; text-align: justify; color: #282828"><B>PAYMENT AND PERFORMANCE.
</B>Except as otherwise provided in this Mortgage, Grantor shall pay to Lender all amounts secured by this Mortgage as they become
due and shall strictly perform all of Grantor's obligations under this Mortgage.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in; text-align: justify; color: #282828">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in; text-align: justify; color: #282828"><B>POSSESSION
AND MAINTENANCE OF THE PROPERTY. </B>Grantor agrees that Grantor's possession and use of the Property shall be governed by the
following provisions:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #282828"><B>Possession
and Use. </B>Until the occurrence of an Event of Default, Grantor may (1)&nbsp;remain in possession and control of the Property;
(2)</FONT>&nbsp;<FONT STYLE="color: #282828">use, operate or manage the Property; and (3)&nbsp;collect the Rents from the Property.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in"><FONT STYLE="color: #282828"><B>Duty to Maintain.
</B>Grantor shall maintain the Property in tenantable condit</FONT><FONT STYLE="color: #6B3B42">i</FONT><FONT STYLE="color: #282828">on
and promptly perform all repairs, replacements, and maintenance necessary to preserve its value.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #282828"><B>Compliance
with Environmental Laws. </B>Grantor represents and warrants to Lender that: (1)&nbsp;During the period of Grantor's ownership
of the Property, there has been no use, generation, manufacture, storage, treatment, disposal, release or threatened release of
any Hazardous Substance by any person on, under, about or from the Property; (2)&nbsp;Grantor has no knowledge of, or reason to
believe that there has been, except as previously disclosed to and acknowledged by Lender in writing, (a)&nbsp;any breach or violation
of any Environmental Laws, (b)&nbsp;any use, generation, manufacture, storage, treatment, disposal, release or threatened release
of any </FONT><FONT STYLE="color: #242424">Hazardous Substance on, under, about or from the Property by any prior owners or occupants
of the Property, or (c)&nbsp;any actual or threatened litigation or claims of any kind by any person relating to such matters;
and (3)&nbsp;Except as previously disclosed to and acknowledged by Lender in writing, (a)&nbsp;neither Grantor nor any tenant,
contractor, agent or other authorized user of the Property shall use, generate, manufacture, store, treat, dispose of or release
any Hazardous Substance on, under. about or from the Property; and (b)&nbsp;any such activity shall be conducted in compliance
with all applicable federal, state, and local laws, regulations and ordinances, including without limitation all Environmental
Laws. Grantor authorizes Lender and its agents to enter upon the Property to make such inspections and tests, at Grantor's expense,
as Lender may deem appropriate to determine compliance of the Property with this section of the Mortgage. Any inspections or tests
made by Lender shall be for Lender's purposes only and shall not be construed to create any responsibility or liability on the
part of Lender to Grantor or to any other person. The representations and warranties contained herein are based on Grantor's due
diligence in </FONT><FONT STYLE="color: #3B3B3B">investigating </FONT><FONT STYLE="color: #242424">the Property for Hazardous
Substances</FONT><FONT STYLE="color: #504F50">. </FONT><FONT STYLE="color: #242424">Grantor hereby (1)&nbsp;releases and waives
any future claims against Lender for indemnity or contribution in the event Grantor becomes liable for cleanup or other costs
under any such laws; and (2)&nbsp;agrees to indemnify, defend, and hold harmless Lender against any and all claims, losses, liabilities,
damages, penalties, and expenses which Lender may directly or indirectly sustain or suffer resulting from a breach of this section
of the Mortgage or as a consequence of any use, generation, manufacture, storage, disposal, release or threatened release occurring
prior to Grantor's ownership or interest in the Property, whether or not the same was or should have been known to Grantor. The
provisions of this section of the Mortgage, including the obligation to indemnify and defend. shall survive the payment of the
Indebtedness and the satisfaction and reconveyance of the lien of this Mortgage and shall not be affected by Lender's acquisition
of any interest in the Property, whether by foreclosure or otherwise.</FONT></P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #242424"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><B>MORTGAGE</B><FONT></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; color: #242424"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: Red"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%; font-size: 10pt"><B>Loan No: 2401</B></TD>
    <TD STYLE="width: 1%; font-size: 10pt"><B>&nbsp;</B></TD>
    <TD STYLE="width: 49%; font-size: 10pt; text-align: right"><B>Page&nbsp;2</B></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><B>Nuisance,
Waste. </B>Grantor shall not cause, conduct or permit any nuisance nor commit, permit, or suffer any stripping of or waste on or
to the Property or any portion of the Property. Without limiting the generality of the foregoing, Grantor will not remove, or grant
to any other party the right to remove, any timber, minerals (including oil and gas), coal, clay, scoria, soil, gravel or rock
products without Lender's prior written consent. Nothing contained in this section, or on the Mortgage, generally, shall be interpreted
to prevent Grantor from, or otherwise require Lender&rsquo;s consent prior to, engaging in the routine business of developing the
raw land to sites ready for residential construction.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><B>Removal of
Improvements. </B>Grantor shall not demolish or remove any Improvements from the Real Property without Lender's prior written consent.
As a condition to the removal of any Improvements, Lender may require Grantor to make arrangements satisfactory to Lender to replace
such Improvements with Improvements of at least equal value.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><B>Lender's
Right to Enter. </B>Lender and Lender's agents and representatives may enter upon the Real Property at all reasonable times to
attend to Lender's interests and to inspect the Real Property for purposes of Grantor's compliance with the terms and conditions
of this Mortgage.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><B>Compliance
with Governmental Requirements. </B>Grantor shall promptly comply with all laws, ordinances, and regulations, now or hereafter
in effect, of all governmental authorities applicable to the use or occupancy of the Property, including without limitation, the
Americans With Disabilities Act. Grantor may contest in good faith any such law, ordinance, or regulation and withhold compliance
during any proceeding, including appropriate appeals, so long as Grantor has notified Lender in writing prior to doing so and so
long as, in Lender's sole opinion, Lender's interests in the Property are not jeopardized. Lender may require Grantor to post adequate
security or a surety bond, reasonably satisfactory to Lender, to protect Lender's interest.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #242424"><B>Duty
to Protect. </B>Grantor agrees neither to abandon or leave unattended the Property. Grantor shall do all other acts, in addition
to those acts set forth above in this section, which from the character and use of the Property are reasonably necessary to protect
and preserve the Property</FONT><FONT STYLE="color: #626262">.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; color: #242424"><B>TAXES AND LIENS. </B>The
following provisions relating to the taxes and liens on the Property are part of this Mortgage:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><B>Payment.
</B>Grantor shall pay when due (and in all events prior to delinquency) all taxes, payroll taxes, special taxes, assessments, water
charges and sewer service charges levied against or on account of the Property, and shall pay when due all claims for work done
on or for services rendered or material furnished to the Property. Grantor shall maintain the Property free of any liens having
priority over or equal to the interest of Lender under this Mortgage, except for those liens specifically agreed to in writing
by Lender, and except for the lien of taxes and assessments not due as further specified in the Right to Contest paragraph.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #242424"><B>Right
to Contest. </B>Grantor may withhold payment of any tax, assessment, or claim in connection with a good faith dispute over the
obligation to pay, so long as Lender's interest in the Property is not jeopardized. If a lien arises or is filed as a result of
nonpayment, Grantor shall within thirty (30) days after the lien arises or, if a lien is filed, within thirty (30) days after Grantor
has notice of the filing, secure the discharge of the lien, or if requested by Lender</FONT><FONT STYLE="color: #504F50">, </FONT><FONT STYLE="color: #242424">deposit
with Lender cash or a sufficient corporate surety bond or other security satisfactory to Lender in an amount sufficient to discharge
the lien plus any costs and attorneys' fees, or other charges that could accrue as a result of a foreclosure or sale under the
lien</FONT><FONT STYLE="color: #626262">. </FONT><FONT STYLE="color: #242424">In any contest, Grantor shall defend itself and Lender
and shall satisfy any adverse judgment before enforcement against the Property. Grantor shall name Lender as an additional obligee
under any surety bond furnished in the contest proceedings.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><B>Evidence
of Payment. </B>Grantor shall upon demand furnish to Lender satisfactory evidence of payment of the taxes or assessments and shall
authorize the appropriate governmental official to deliver to Lender at any time a written statement of the taxes and assessments
against the Property.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; color: #242424"><B>PROPERTY DAMAGE INSURANCE.
</B>The following provisions relating to insuring the Property are a part of this Mortgage:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #242424"><B>Maintenance
of Insurance. </B>The amount specified for insurance as provided in the <B>statutory mortgage condition </B>is the full insurable
value of the improvements on a replacement basis. Grantor shall procure and maintain policies of fire insurance with standard extended
coverage endorsements on a replacement basis for the full insurable value covering all improvements on the Real Property in an
amount sufficient to avoid application of any coinsurance clause, and with a standard mortgagee clause in favor of Lender. Policies
shall be written by such insurance companies and </FONT><FONT STYLE="color: #3B3B3B">in </FONT><FONT STYLE="color: #242424">such
form as may be reasonably acceptable to Lender. Grantor shall deliver to Lender certificates of coverage from each insurer containing
a stipulation that coverage will not be cancelled or diminished without a minimum of ten (10)&nbsp;days' prior written notice to
Lender. Should the Real Property at any time become located </FONT><FONT STYLE="color: #3B3B3B">in </FONT><FONT STYLE="color: #242424">an
area designated by the Administrator of the Federal Emergency Management Agency as a spec</FONT><FONT STYLE="color: #5B464D">i</FONT><FONT STYLE="color: #242424">al
flood hazard area, Grantor agrees to obtain and maintain flood insurance for the full unpaid principal balance of the loan and
any prior liens on the property securing </FONT><FONT STYLE="color: #3B3B3B">the </FONT><FONT STYLE="color: #242424">loan, up to
the maximum policy limits set under the National Flood Insurance Programs, or as otherwise required by Lender, and to maintain
such </FONT><FONT STYLE="color: #3B3B3B">insurance </FONT><FONT STYLE="color: #242424">for the term of the loan. Flood insurance
may be purchased under the National Flood Insurance Program, from private insurers providing &quot;private flood insurance&quot;
as defined by applicable federal flood insurance statutes and regulations, or from another flood insurance provider that is both
acceptable to Lender in its sole discretion and permitted by applicable federal flood insurance statutes and regulations.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #242424"><B>Grantor's
Report on Insurance. </B>Upon request of Lender, however not more than once a year, Grantor shall furnish to Lender a report on
each existing policy of insurance showing: (1)&nbsp;the name of the insurer; (2)&nbsp;the risks insured; (3)&nbsp;the amount of
the policy; (4)&nbsp;the property insured, the then current replacement value of such property, and the manner of determining
that value; and (5)&nbsp;the expiration date of the policy</FONT><FONT STYLE="color: #5B5B5B">. </FONT><FONT STYLE="color: #242424">Grantor
shall, upon request of Lender, have an independent appraiser satisfactory to Lender determine the cash value replacement cost
of the Property.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><B>MORTGAGE</B><FONT></FONT></P>

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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%; font-size: 10pt"><B>Loan No: 2401</B></TD>
    <TD STYLE="width: 1%; font-size: 10pt"><B>&nbsp;</B></TD>
    <TD STYLE="width: 49%; font-size: 10pt; text-align: right"><B>Page&nbsp;3</B></TD></TR>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in; text-align: justify"><FONT STYLE="color: #242424"><B>LENDER'S
EXPENDITURES. If </B>any action or proceeding is commenced that would materially affect Lender's interest in the Property or if
Grantor fails to comply with any provision of this Mortgage or any Related Documents, including but not limited to Grantor's failure
to discharge or pay when due any amounts Grantor is required to discharge or pay under this Mortgage or any Related Documents,
Lender on Grantor's behalf may (but shall not be obligated to) take any action that Lender deems appropriate, </FONT><FONT STYLE="color: #3B3B3B">including
</FONT><FONT STYLE="color: #242424">but not limited to discharging or paying all taxes</FONT><FONT STYLE="color: #5B5B5B">, </FONT><FONT STYLE="color: #242424">liens,
security interests, encumbrances and other claims, at any time levied or placed on the Property and paying all costs for insuring,
maintaining and preserving the Property. All such expenditures </FONT><FONT STYLE="color: #3B3B3B">incurred </FONT><FONT STYLE="color: #242424">or
paid by Lender for such purposes will then bear interest at the rate charged under the Note from the date incurred or paid by Lender
to the date of repayment by Grantor. All such expenses <B>will </B>become a part of the Indebtedness and, at Lender's option, <B>will</B>
(A)&nbsp;be payable on demand; (B)&nbsp;be added to the balance of the Note and be apportioned among and be payable with any installment
payments to become due during either (1)&nbsp;the term of any applicable insurance policy; or (2)&nbsp;the remaining term of the
Note; or (C)&nbsp;be treated as a balloon payment which will be due and payable at the Note's maturity. The Mortgage also will
secure payment of these amounts. Such right shall be in addition to all other rights and remedies to which Lender may be entitled
upon the occurrence of any Event of Default.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify"><FONT STYLE="color: #242424"><B>WARRANTY;
DEFENSE OF TITLE. </B>The following provisions </FONT><FONT STYLE="color: #3B3B3B">relating </FONT><FONT STYLE="color: #242424">to
ownership of the Property are </FONT><FONT STYLE="color: #3B3B3B">a </FONT><FONT STYLE="color: #242424">part of this Mortgage:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #242424"><B>Title.
</B>Grantor warrants that: (a)&nbsp;Grantor holds good and marketable title of record to the Property </FONT><FONT STYLE="color: #3B3B3B">in
</FONT><FONT STYLE="color: #242424">fee simple, </FONT><FONT STYLE="color: #3B3B3B">free </FONT><FONT STYLE="color: #242424">and
clear of all liens and encumbrances other than those set forth in the Real Property description or in any title insurance policy,
title report, or final title opinion issued in favor of</FONT><FONT STYLE="color: #6E6E6E">, </FONT><FONT STYLE="color: #242424">and
accepted by, Lender in connection with this Mortgage, and (b)&nbsp;Grantor has the full right, power, and authority to execute
and deliver this Mortgage to Lender.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #242424"><B>Defense
of Title. </B>Subject to the exception </FONT><FONT STYLE="color: #3B3B3B">in </FONT><FONT STYLE="color: #242424">the paragraph
above, Grantor warrants and will forever defend the title to the Property against the lawful claims of all persons. In the event
any action or proceeding is commenced that questions Grantor's title or the interest of Lender under this Mortgage</FONT><FONT STYLE="color: #6E6E6E">,
</FONT><FONT STYLE="color: #242424">Grantor shall defend the action at Grantor's expense. Grantor may be the nominal party in such
proceeding, but </FONT><FONT STYLE="color: #3B3B3B">Lender </FONT><FONT STYLE="color: #242424">shall be entitled to participate
in the proceeding and to be represented in the proceeding by counsel of Lender's own choice, and Grantor will deliver, or </FONT><FONT STYLE="color: #3B3B3B">cause
</FONT><FONT STYLE="color: #242424">to be delivered, to Lender such instruments as Lender may request from time to time to permit
such participation.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><B>Compliance
with Laws. </B>Grantor warrants that the Property and Grantor's use of the Property complies with all existing applicable laws,
ordinances, and regulations of governmental authorities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #242424"><B>Survival
of Representations and Warranties. </B>All representation</FONT><FONT STYLE="color: #5B5B5B">s, </FONT><FONT STYLE="color: #242424">warranties,
and agreements made by Grantor in this Mortgage shall </FONT><FONT STYLE="color: #3B3B3B">survive </FONT><FONT STYLE="color: #242424">the
execution and delivery of this Mortgage, shall be continuing in nature, and shall remain in full force and effect until such time
as Grantor's Indebtedness shall be paid in full.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in; text-align: justify; color: #282828"><FONT STYLE="color: #242424"><B>CONDEMNATION.
</B>The following provisions relating to </FONT><FONT STYLE="color: #3B3B3B">condemnation </FONT><FONT STYLE="color: #242424">proceedings
are a part of </FONT><FONT STYLE="color: #3B3B3B">this </FONT><FONT STYLE="color: #242424">Mortgage</FONT><FONT STYLE="color: #6E6E6E">:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #242424"><B>Proceedings.
</B>If </FONT><FONT STYLE="color: #3B3B3B">any </FONT><FONT STYLE="color: #242424">proceeding </FONT><FONT STYLE="color: #3B3B3B">in
</FONT><FONT STYLE="color: #242424">condemnation </FONT><FONT STYLE="color: #3B3B3B">is filed, </FONT><FONT STYLE="color: #242424">Grantor
</FONT><FONT STYLE="color: #3B3B3B">shall promptly </FONT><FONT STYLE="color: #242424">notify Lender in writing, </FONT><FONT STYLE="color: #3B3B3B">and
Grantor </FONT><FONT STYLE="color: #242424">shall promptly take such </FONT><FONT STYLE="color: #3B3B3B">steps as </FONT><FONT STYLE="color: #242424">may
be necessary to defend the action and obtain the award. Grantor may be the </FONT><FONT STYLE="color: #3B3B3B">nominal </FONT><FONT STYLE="color: #242424">party
in such proceeding, but Lender shall be entitled to participate in the proceeding and to be represented in the proceeding by counsel
of its own choice, and Grantor will deliver or cause to be delivered to Lender such </FONT><FONT STYLE="color: #3B3B3B">instruments
</FONT><FONT STYLE="color: #242424">and documentation as may be requested by </FONT><FONT STYLE="color: #262626">Lender from time
to time to permit such participation</FONT><FONT STYLE="color: #5B5B5B">.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #262626"><B>Application
of Net Proceeds. </B>If all or any part of the Property is condemned by eminent domain proceedings or by any proceeding or purchase
in lieu of condemnation, Lender may at its election require that all or any portion of the net proceeds of the award be applied
to the Indebtedness or the repair or restoration of the Property. The net proceeds of the award shall mean the award after payment
of all reasonable costs, expenses, and attorneys' fees incurred by Lender in connection with the condemnation</FONT><FONT STYLE="color: #5B5B5B">.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in; text-align: justify; color: #282828"><B>IMPOSITION OF TAXES,
FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES. </B>The following provisions relating to governmental taxes, fees and charges are
a part of this Mortgage:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #262626"><B>Current
Taxes, Fees and Charges. </B>Upon request by Lender, Grantor shall execute such documents in addition to this Mortgage and take
whatever other action is requested by Lender to perfect and continue Lender's lien on the Real Property. Grantor shall reimburse
Lender for all taxes, as described below, together with all expenses incurred in recording, perfecting or continuing this Mortgage,
</FONT><FONT STYLE="color: #3D3D3D">including </FONT><FONT STYLE="color: #262626">without limitation all taxes. fees, documentary
stamps, and other charges for recording or registering this Mortgage</FONT><FONT STYLE="color: #5B5B5B">.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #262626"><B>Taxes.
</B>The following shall constitute taxes to which this section applies</FONT><FONT STYLE="color: #5B5B5B">: </FONT><FONT STYLE="color: #262626">(1)&nbsp;a
specific tax upon this type of Mortgage or upon all or any part of the Indebtedness secured by this Mortgage; (2)&nbsp;a specific
tax on Grantor which Grantor is authorized or required to deduct from payments on the Indebtedness secured by this type of Mortgage;
(3)&nbsp;a tax on this type of Mortgage chargeable against the Lender or the holder of the Note; and (4)&nbsp;a specific tax on
all or any port</FONT><FONT STYLE="color: #6E3141">i</FONT><FONT STYLE="color: #262626">on of the Indebtedness or on payments of
principal and interest made by Grantor.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #262626"><B>Subsequent
Taxes. </B>If any tax to which this section applies is enacted subsequent to the date of this Mortgage, this event shall have the
same effect as an Event of Default, and Lender may exercise any or all of its available remedies for an Event of Default as provided
below unless Grantor either (1)&nbsp;pays the tax before it becomes delinquent, or (2)&nbsp;contests the tax as provided above
</FONT><FONT STYLE="color: #3D3D3D">in </FONT><FONT STYLE="color: #262626">the Taxes and Liens section and deposits with Lender
cash or a sufficient corporate surety bond or other security satisfactory to Lender.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in; text-align: justify; color: #282828"><FONT STYLE="color: #262626"><B>SECURITY
AGREEMENT; FINANCING STATEMENTS</B></FONT><B><FONT STYLE="color: #5B5B5B">. </FONT></B><FONT STYLE="color: #262626">The following
provisions relating to this Mortgage as a security agreement are a part of this Mortgage:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><B>Security
Agreement. </B>This instrument shall constitute a Security Agreement to the extent any of the Property constitutes fixtures, and
Lender shall have all of the rights of a secured party under the Uniform Commercial Code as amended from time to time.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #262626"><B>Security
Interest. </B>Upon request by Lender, Grantor shall take whatever action is requested by Lender to perfect and continue Lender's
security interest in the Rents and Personal Property. In addition to recording this Mortgage in the real property records, Lender
may, at any time and without further authorization from Grantor, file executed counterparts, copies or reproductions of this Mortgage
as a financing statement. Grantor shall reimburse Lender for all expenses incurred in perfecting or continuing this security interest.
Upon default, Grantor shall not remove, sever or detach the Personal Property from the Property</FONT><FONT STYLE="color: #5B5B5B">.
</FONT><FONT STYLE="color: #262626">Upon default, Grantor shall assemble any Personal Property not affixed to the Property in a
manner and at a place reasonably convenient to Grantor and Lender and make it available to Lender within three (3)&nbsp;days after
receipt of written demand from Lender to the extent permitted by applicable law.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><B>MORTGAGE</B><FONT></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; color: #242424"></P>

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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%; font-size: 10pt"><B>Loan No: 2401</B></TD>
    <TD STYLE="width: 1%; font-size: 10pt"><B>&nbsp;</B></TD>
    <TD STYLE="width: 49%; font-size: 10pt; text-align: right"><B>Page&nbsp;4</B></TD></TR>
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    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">&nbsp;</TD></TR>
</TABLE>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><B>Addresses.
</B>The mailing addresses of Grantor (debtor) and Lender (secured party) from which information concerning the security interest
granted by this Mortgage may be obtained (each as required by the Uniform Commercial Code) are as stated on the first page&nbsp;of
this Mortgage.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in; text-align: justify; color: #282828"><B>FURTHER ASSURANCES;
ATTORNEY-IN-FACT. </B>The following provisions relating to further assurances and attorney-in-fact are a part of this Mortgage:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #262626"><B>Further
Assurances. </B>At any time, and from time to time, upon request of Lender, Grantor will make, execute and deliver, or will cause
to be made, executed or delivered, to Lender or to Lender's designee, and when requested by Lender, cause to be filed, recorded,
refiled, or rerecorded, as the case may be, at such times and in such offices and places as Lender may deem appropriate, any and
all such mortgages, deeds of trust, security deeds, security agreements, financing statements, continuation statements, instruments
of further assurance, certificates, and other documents as may, in the sole opinion of Lender, be necessary or desirable </FONT><FONT STYLE="color: #3D3D3D">in
</FONT><FONT STYLE="color: #262626">order to effectuate, complete, perfect, continue, or preserve (1)&nbsp;Grantor's obligations
under the Note, this Mortgage, and the Related Documents, and (2)&nbsp;the liens and security interests created by this Mortgage
as first and prior liens on the Property, whether now owned or hereafter acquired by Grantor. Unless prohibited by law or Lender
agrees to the contrary in writing, Grantor shall reimburse Lender for all costs and expenses </FONT><FONT STYLE="color: #3D3D3D">incurred
</FONT><FONT STYLE="color: #262626">in connection with the matters referred to in this paragraph.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><B>Attorney-in-Fact.
</B>If Grantor fails to do any of the things referred to in the preceding paragraph, Lender may do so for and in the name of Grantor
and at Grantor's expense. For such purposes, Grantor hereby irrevocably appoints Lender as Grantor's attorney-in-fact for the purpose
of making, executing, delivering, filing, recording, and doing all other things as may be necessary or desirable, in Lender's sole
opinion, to accomplish the matters referred to in the preceding paragraph.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in; text-align: justify; color: #282828"><FONT STYLE="color: #262626"><B>PARTIAL
RELEASES. </B>Lender shall execute partial releases of the lien of this Mortgage upon the following conditions: Payment to Lender
in the amount of $52</FONT><FONT STYLE="color: #5B5B5B">,</FONT><FONT STYLE="color: #262626">000 PER LOT for each lot in which
a partial release is being requested.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in; text-align: justify; color: #282828"><FONT STYLE="color: #262626"><B>FULL PERFORMANCE.
</B>If Grantor pays all the Indebtedness when due, and otherwise performs all the obligations imposed upon Grantor under this Mortgage,
Lender shall execute and deliver to Grantor a suitable satisfaction of this Mortgage and suitable statements of termination of
any financing statement on file evidencing Lender's security interest in the Rents and the Personal Property</FONT><FONT STYLE="color: #5B5B5B">.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in; text-align: justify; color: #282828"><B>EVENTS OF DEFAULT. </B>Each
of the following, at Lender's option, shall constitute an Event of Default under this Mortgage:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><B>Payment Default.
</B>Grantor fails to make any payment when due under the Indebtedness.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><B>Default on
Other Payments. </B>Failure of Grantor within the time required by this Mortgage to make any payment for taxes or insurance, or
any other payment necessary to prevent filing of or to effect discharge of any lien.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #262626"><B>Other
Defaults. </B>Grantor fails to comply with or to perform any other te</FONT><FONT STYLE="color: #4B2D38">r</FONT><FONT STYLE="color: #262626">m,
obligation, covenant or condition contained in this Mortgage or in any of the Related Documents or to comply with or to perform
any term, obligation, covenant or condition contained in any other agreement between Lender and Grantor.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #262626"><B>False
Statements. </B>Any warranty, representation or statement made or furnished to Lender by Grantor or on Grantor's behalf under this
Mortgage or the Related Documents is false or misleading in any material respect, either now or at the time made or furnished or
becomes false or mislead</FONT><FONT STYLE="color: #505252">i</FONT><FONT STYLE="color: #262626">ng at any time thereafter</FONT><FONT STYLE="color: #505252">.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><B>Defective
Collateralization. </B>This Mortgage or any of the Related Documents ceases to be in full force and effect (including failure of
any collateral document to create a valid and perfected security interest or lien) at any time and for any reason.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><B>Death or
Insolvency. </B>The dissolution of Grantor's (regardless of whether election to continue is made), any member withdraws from the
limited liability company, or any other termination of Grantor's existence as a going business or the death of any member, the
insolvency of Grantor, the appointment of a receiver for any part of Grantor's property, any assignment for the benefit of creditors,
any type of creditor workout, or the commencement of any proceeding under any bankruptcy or insolvency laws by or against Grantor.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #262626"><B>Creditor
or Forfeiture Proceedings. </B>Commencement of foreclosure or forfeiture proceedings, whether by judicial proceeding, self-help,
repossession or any other method, by any creditor of Grantor or by any governmental agency against any property securing the Indebtedness</FONT><FONT STYLE="color: #505252">.
</FONT><FONT STYLE="color: #262626">This includes a garnishment of any of Grantor's accounts, including deposit accounts, with
Lender. However, this Event of Default shall not apply if there is a good faith dispute by Grantor as to the validity or reasonableness
of the claim which is the basis of the creditor or forfeiture proceeding and if Grantor gives Lender written notice of the creditor
or forfeiture proceeding and deposits with Lender monies or a surety bond for the creditor or forfeiture proceeding, in an amount
determined by Lender, in its sole discretion, as being an adequate reserve or bond for the dispute.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><B>Breach of
Other Agreement. </B>Any breach by Grantor under the terms of any other agreement between Grantor and Lender that is not remedied
within any grace period provided therein, including without limitation any agreement concerning any indebtedness or other obligation
of Grantor to Lender, whether existing now or later.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><B>Events Affecting
Guarantor. </B>Any of the preceding events occurs with respect to any Guarantor of any of the Indebtedness or any Guarantor dies
or becomes incompetent, or revokes or disputes the validity of, or liability under, any Guaranty of the Indebtedness.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><B>Adverse Change.
</B>A material adverse change occurs in Grantor's financial condition.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><B>Right to
Cure. </B>As a condition precedent to an Event of Default, Lender will provide Grantor written notice and thereafter either: (a)&nbsp;fifteen
(15) days to cure any monetary default; and (b)&nbsp;thirty (30) days to cure any non-monetary default or, if the non-monetary
default is of the nature that cannot reasonably be cured within thirty (30) days, then Grantor shall initiate steps which Lender,
in Lender&rsquo;s sole discretion, deems sufficient to cure the default and thereafter continues and completes all reasonable and
necessary steps sufficient to produce compliance as soon as reasonably practical.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in; text-align: justify; color: #282828"><B>RIGHTS AND REMEDIES
ON DEFAULT. </B>Upon the occurrence of an Event of Default and at any time thereafter, Lender, at Lender's option, may exercise
any one or more of the following rights and remedies. in addition to any other rights or remedies provided by law:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #262626"><B>Accelerate
Indebtedness. </B>Lender shall have the right at its option without notice to Grantor to declare the entire Indebtedness immediately
due and payable, including any prepayment penalty that Grantor would be required to pay</FONT><FONT STYLE="color: #505252">.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><B>MORTGAGE</B><FONT></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; color: #242424"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: Red"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%; font-size: 10pt"><B>Loan No: 2401</B></TD>
    <TD STYLE="width: 1%; font-size: 10pt"><B>&nbsp;</B></TD>
    <TD STYLE="width: 49%; font-size: 10pt; text-align: right"><B>Page&nbsp;5</B></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><B>UCC Remedies.
</B>With respect to all or any part of the Personal Property, Lender shall have all the rights and remedies of a secured party
under the Uniform Commercial Code.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #262626"><B>Collect
Rents. </B>Lender shall have the right, without notice to Grantor, to take possession of the Property and collect the Rents, including
amounts past due and unpaid, and apply the net proceeds, over and above Lender's costs, against the Indebtedness</FONT><FONT STYLE="color: #505252">.
</FONT><FONT STYLE="color: #262626">In furtherance of this right, Lender may require any tenant or other user of the Property to
make payments of rent or use fees directly to Lender</FONT><FONT STYLE="color: #505252">. </FONT><FONT STYLE="color: #262626">If
the Rents are collected by Lender, then Grantor irrevocably designates Lender as Grantor's attorney-in-fact to endorse instruments
received in payment thereof in the name of Grantor and to negotiate the same and collect the proceeds. Payments by tenants or other
users to Lender in response to Lender's demand shall satisfy the obligations for which the payments are made, whether or not any
proper grounds for the demand existed</FONT><FONT STYLE="color: #505252">. </FONT><FONT STYLE="color: #262626">Lender may exercise
its rights under this subparagraph either in person, by agent, or through a receiver </FONT><FONT STYLE="color: #505252">.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #262626"><B>Appoint
Receiver. </B>Lender shall have the right to have a receiver appointed to take possession of all or any part of the Property, with
the power to protect and preserve the Property, to operate the Property preceding foreclosure or sale, and to collect the Rents
from the Property and apply the proceeds, over and above the cost of the receivership, against the Indebtedness. The receiver may
serve without bond if permitted by law</FONT><FONT STYLE="color: #505252">. </FONT><FONT STYLE="color: #262626">Lender's right
to the appointment of a receiver shall exist whether or not the apparent value of the Property exceeds the Indebtedness by a substantial
amount. Employment by Lender shall not disqualify a person from serving as a receiver </FONT><FONT STYLE="color: #505252">.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #262626"><B>Judicial
Foreclosure. </B>Lender may obtain a judicial decree foreclosing Grantor's interest in all or any part of the Property</FONT><FONT STYLE="color: #505252">.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><B>Deficiency
Judgment. </B>If permitted by applicable law, Lender may obtain a judgment for any deficiency remaining in the Indebtedness due
to Lender after application of all amounts received from the exercise of the rights provided in this section.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><B>Tenancy at
Sufferance. </B>If Grantor remains in possession of the Property after the Property is sold as provided above or Lender otherwise
becomes entitled to possession of the Property upon default of Grantor, Grantor shall become a tenant at sufferance of Lender or
the purchaser of the Property and shall, at Lender's option, either (1)&nbsp;pay a reasonable rental for the use of the Property,
or (2)&nbsp;vacate the Property immediately upon the demand of Lender.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #262626"><B>Other
Remedies. </B>Lender shall have all other rights and remedies provided in this Mortgage or the Note or available at law or in equity</FONT><FONT STYLE="color: #727474">.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><B>Sale of the
Property. </B>To the extent permitted by applicable law, Grantor hereby waives any and all right to have the Property marshalled.
In exercising its rights and remedies, Lender shall be free to sell all or any part of the Property together or separately, in
one sale or by separate sales. Lender shall be entitled to bid at any public sale on all or any portion of the Property.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #262626"><B>Notice
of Sale. </B>Lender shall give Grantor reasonable notice of the time and place of any public sale of the Personal Property or of
the time after which any private sale or other intended disposition of the Personal Property is to be made. Reasonable notice shall
mean notice given at least ten (10)&nbsp;days before the time of the sale or disposition</FONT><FONT STYLE="color: #4F4F4F">. </FONT><FONT STYLE="color: #262626">Any
sale of the Personal Property may be made in conjunction with any sale of the Real Property.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #262626"><B>Election
of Remedies. </B>Election by Lender to pursue any remedy shall not exclude pursuit of any other remedy, and an election to make
expenditures or to take action to perform an obligation of Grantor under this Mortgage, after Grantor's failure to perform, shall
not affect Lender's right to declare a default and exercise its remedies. Nothing under this Mortgage or otherwise shall be construed
so as to limit or restrict the rights and remedies available to Lender following an Event of Default, or in any way to limit or
restrict the rights and ability of Lender to proceed directly against Grantor and/or against any other co-maker, guarantor, surety
or endorser and/or to proceed against any other collateral directly or indirectly securing the Indebtedness</FONT><FONT STYLE="color: #626262">.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #262626"><B>Attorneys'
Fees; Expenses. </B>If Lender institutes any suit or action to enforce any of the terms of this Mortgage, Lender shall be entitled
to recover such sum as the court may adjudge reasonable as attorneys' fees at trial and upon any appeal. Whether or not any court
action is involved, and to the extent not prohibited by law, all reasonable expenses Lender incurs that are reasonably necessary
at any time for the protection of its interest or the enforcement of its rights shall become a part of the Indebtedness payable
on demand and shall bear interest at the Note rate from the date of the expenditure until repaid</FONT><FONT STYLE="color: #4F4F4F">.
</FONT><FONT STYLE="color: #262626">Expenses covered by this paragraph </FONT><FONT STYLE="color: #4F4F4F">i</FONT><FONT STYLE="color: #262626">nclude,
without limitation, however subject to any limits under applicable law, Lender's reasonable attorneys' fees and Lender's reasonable
legal expenses, whether or not there is a lawsuit, including reasonable attorneys' fees and reasonable expenses for bankruptcy
proceedings (including efforts to modify or vacate any automatic stay or injunction), appeals, and any anticipated post-judgment
collection services, the cost of searching records, obtaining title reports (including foreclosure reports), surveyors' reports,
and appraisal fees and title insurance, to the extent permitted by applicable law. Grantor also will pay any court costs, in addition
to all other sums provided by law</FONT><FONT STYLE="color: #4F4F4F">.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><B>Right of
Redemption. IF THIS MORTGAGE IS FORECLOSED, THE REDEMPTION PERIOD AFTER JUDICIAL SALE SHALL BE ONE (1)&nbsp;MONTH IN LIEU OF NINE
(9)&nbsp;MONTHS.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in; text-align: justify; color: #282828"><FONT STYLE="color: #262626"><B>NOTICES.
</B>Any notice required to be given under this Mortgage, </FONT><FONT STYLE="color: #3D3D3D">including </FONT><FONT STYLE="color: #262626">without
limitation any notice of default and any notice of sale shall be given in writing, and shall be effective when actually delivered
(unless otherwise required by law), when deposited with a nationally recognized overnight courier, or, if mailed, when deposited
in the United States mail, as first class, certified or registered mail postage prepaid, directed to the addresses shown near the
beginning of this Mortgage. All copies of notices of foreclosure from the holder of any lien which has priority over this Mortgage
shall be sent to Lender's address, as shown near the beginning of this Mortgage. Any party may change </FONT><FONT STYLE="color: #3D3D3D">its
</FONT><FONT STYLE="color: #262626">address for notices under this Mortgage by giving formal written notice to the other parties,
specifying that the purpose of the notice is to change the party's address. For notice purposes, Grantor agrees to keep Lender
informed at all times of Grantor's current address. Unless otherwise provided or required by law, if there is more than one Grantor,
any notice given by Lender to any Grantor is deemed to be notice given to all Grantors. Notice by facsimile is expressly prohibited.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><B>MORTGAGE</B><FONT></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; color: #242424"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: Red"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%; font-size: 10pt"><B>Loan No: 2401</B></TD>
    <TD STYLE="width: 1%; font-size: 10pt"><B>&nbsp;</B></TD>
    <TD STYLE="width: 49%; font-size: 10pt; text-align: right"><B>Page&nbsp;6</B></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in; text-align: justify; color: #282828"><FONT STYLE="color: #262626"><B>MISCELLANEOUS
PROVISIONS. </B>The following miscellaneous provisions are a part of this Mortgage</FONT><FONT STYLE="color: #4F4F4F">:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><B>Amendments.
</B>This Mortgage, together with any Related Documents, constitutes the entire understanding and agreement of the parties as to
the matters set forth in this Mortgage. No alteration of or amendment to this Mortgage shall be effective unless given in writing
and signed by the party or parties sought to be charged or bound by the alteration or amendment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #262626"><B>Caption
Headings</B></FONT><B><FONT STYLE="color: #4F4F4F">. </FONT></B><FONT STYLE="color: #262626">Caption headings in this Mortgage
are for convenience purposes only and are not to be used to interpret or define the provisions of this Mortgage.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><B>Governing
Law. This Mortgage will be governed by federal law applicable to Lender and, to the extent not preempted by federal law, </B>the
laws of the State of New Mexico without regard to its conflicts of law provisions. This Mortgage has been accepted by Lender in
<B>the State of New Mexico.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #262626"><B>Choice
of Venue. If </B>there is a lawsuit, Grantor agrees upon Lender's request to submit to the jurisdiction of the courts of Sandoval
County, State of New Mexico</FONT><FONT STYLE="color: #4F4F4F">.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #262626"><B>No
Waiver by Lender. </B>Lender shall not be deemed to have waived any rights under this Mortgage unless such waiver is given in writing
and signed by Lender. No delay or omission on the part of Lender in exercising any right shall operate as a waiver of such right
or any other right. A waiver by Lender of a provision of this Mortgage shall not prejudice or constitute a waiver of Lender's right
otherwise to demand str</FONT><FONT STYLE="color: #34603F">ict</FONT> <FONT STYLE="color: #262626">compliance with that provision
or any other provision of this Mortgage. No prior waiver by Lender, nor any course of dealing between Lender and Grantor, shall
constitute a waiver of any of Lender's rights or of any of Grantor's obligations as to any future transactions</FONT><FONT STYLE="color: #5B5B5B">.
</FONT><FONT STYLE="color: #262626">Whenever the consent of Lender is required under this Mortgage, the granting of such consent
by Lender in any instance shall not constitute continuing consent to subsequent instances where such consent is required and in
all cases such consent may be granted or withheld in the sole discretion of Lender.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><B>Severability.
</B>If a court of competent jurisdiction finds any provision of this Mortgage to be illegal, invalid, or unenforceable as to any
circumstance, that finding shall not make the offending provision illegal, invalid, or unenforceable as to any other circumstance.
If feasible, the offending provision shall be considered modified so that it becomes legal, valid and enforceable. If the offending
provision cannot be so modified, it shall be considered deleted from this Mortgage. Unless otherwise required by law, the illegality,
invalidity, or unenforceability of any provision of this Mortgage shall not affect the legality, validity or enforceability of
any other provision of this Mortgage.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><B>Merger. </B>There
shall be no merger of the interest or estate created by this Mortgage with any other interest or estate in the Property at any
time held by or for the benefit of Lender in any capacity, without the written consent of Lender.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><B>Successors
and Assigns. </B>Subject to any limitations stated in this Mortgage on transfer of Grantor's interest, this Mortgage shall be binding
upon and inure to the benefit of the parties, their successors and assigns. If ownership of the Property becomes vested in a person
other than Grantor, Lender, without notice to Grantor, may deal with Grantor's successors with reference to this Mortgage and the
Indebtedness by way of forbearance or extension without releasing Grantor from the obligations of this Mortgage or liability under
the Indebtedness.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><B>Time is of
the Essence. </B>Time is of the essence in the performance of this Mortgage.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><B>Waiver of
Homestead Exemption. </B>Grantor hereby releases and waives all rights and benefits of the homestead exemption laws of the State
of New Mexico as to all Indebtedness secured by this Mortgage.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in; text-align: justify; color: #282828"><B>DEFINITIONS. </B>The
following capitalized words and terms shall have the following meanings when used in this Mortgage. Unless specifically stated
to the contrary, all references to dollar amounts shall mean amounts in lawful money of the United States of America. Words and
terms used in the singular shall include the plural, and the plural shall include the singular, as the context may require. Words
and terms not otherwise defined in this Mortgage shall have the meanings attributed to such terms in the Uniform Commercial Code:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><B>Borrower.
</B>The word &quot;Borrower&quot; means MOUNTAIN HAWK EAST DEVELOPMENT COMPANY LLC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #262626"><B>Environmental
Laws. </B>The words &quot;Environmental Laws&quot; mean any and all state, federal and local statutes, regulations and ordinances
relating to the protection of human health or the environment, including without limitation the Comprehensive Environmental Response,
Compensation, and Liability Act of 1980, as amended, 42 U.S.C. Section&nbsp;9601, et seq. {&quot;CERCLA&quot;), the Superfund Amendments
and Reauthorization Act of 1986, Pub</FONT><FONT STYLE="color: #5B5B5B">. </FONT><FONT STYLE="color: #262626">L. No.&nbsp;99-499
(&quot;SARA&quot;), the Hazardous Materials Transportation Act, 49 U</FONT><FONT STYLE="color: #5B5B5B">.</FONT><FONT STYLE="color: #262626">S.C.
Section&nbsp;1801, et seq., the Resource Conservation and Recovery Act, 42 U.S.C. Section&nbsp;6901, et seq., or other applicable
state or federal laws, rules, or regulations adopted pursuant thereto</FONT><FONT STYLE="color: #5B5B5B">.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #262626"><B>Event
of Default. </B>The words &quot;Event of Default&quot; mean any of the events of default set forth in this Mortgage in the events
of default section of this Mortgage</FONT><FONT STYLE="color: #5B5B5B">.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #262626"><B>Grantor.
</B>The word &quot;Grantor&quot; means MOUNTAIN HAWK EAST DEVELOPMENT COMPANY LLC</FONT><FONT STYLE="color: #5B5B5B">.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><B>Guarantor.
</B>The word &quot;Guarantor&quot; means AMREP SOUTHWEST,&nbsp;INC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><B>Guaranty.
</B>The word &quot;Guaranty&quot; means the guaranty from Guarantor to Lender, including without limitation a guaranty of all or
part of the Note.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #262626"><B>Hazardous
Substances. </B>The words &quot;Hazardous Substances&quot; mean materials that, because of their quantity, concentration or physical,
chemical or infectious characteristics, may cause or pose a present or potential hazard to human health or the environment when
improperly used, treated, stored, disposed of, generated, manufactured, transported or otherwise handled. The words </FONT><FONT STYLE="color: #3D3D3D">&quot;Hazardous
</FONT><FONT STYLE="color: #262626">Substances&quot; are used in their very broadest sense and include without limitation any and
all hazardous or toxic substances, materials or waste as defined by or listed under the Environmental Laws. The term &quot;Hazardous
Substances&quot; also includes, without limitation, petroleum and petroleum by-products or any fraction thereof and asbestos.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #262626"><B>Improvements.
</B>The word </FONT><FONT STYLE="color: #3D3D3D">&quot;Improvements&quot; </FONT><FONT STYLE="color: #262626">means all existing
and future improvements, buildings, structures, mobile homes affixed on the Real Property, facilit</FONT><FONT STYLE="color: #2F4F3B">i</FONT><FONT STYLE="color: #262626">es,
additions, replacements and other construction on the Real Property.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #262626"><B>Indebtedness.
</B>The word &quot;Indebtedness&quot; means all principal, interest, and other amounts, costs and expenses payable under the Note
or Related Documents, together with all renewals of, extensions of, modifications of, consolidations of and substitutions for the
Note or Related Documents and any amounts expended or advanced by Lender to discharge Grantor's obligations or expenses incurred
by Lender to enforce Grantor's obligations under this Mortgage, together with interest on such amounts as provided in this Mortgage</FONT><FONT STYLE="color: #5B5B5B">.
</FONT><FONT STYLE="color: #262626">Specifically, without limitation,&nbsp;Indebtedness includes all amounts that may be indirectly
secured by the Cross-Collateralization provision of this Mortgage.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><B>MORTGAGE</B><FONT></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; color: #242424"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: Red"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%; font-size: 10pt"><B>Loan No: 2401</B></TD>
    <TD STYLE="width: 1%; font-size: 10pt"><B>&nbsp;</B></TD>
    <TD STYLE="width: 49%; font-size: 10pt; text-align: right"><B>Page&nbsp;7</B></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #262626"><B>Lender.
</B>The word &quot;Lender&quot; means Sandia Laboratory Federal Credit Union, its successors and assigns</FONT><FONT STYLE="color: #5B5B5B">.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><B>Mortgage.
</B>The word &quot;Mortgage&quot; means this Mortgage between Grantor and Lender.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><B>Note. </B>The
word &quot;Note&quot; means the promissory note dated February&nbsp;3, 2020, <B>in the original principal amount of</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><B>$3,000,000.00
</B>from Grantor to Lender, together with all renewals of, extensions of, modifications of, refinancings of, consolidations of,
and substitutions for the promissory note or agreement. The interest rate on the Note is 4.500% per annum.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #262626"><B>Personal
Property. </B>The words &quot;Personal Property&quot; mean all equipment, fixtures, and other articles of personal property now
or hereafter owned by Grantor, and now or hereafter attached or affixed to the Real Property; together with all accessions, parts,
and additions to, all replacements of, and all substitut</FONT><FONT STYLE="color: #2F4F3B">i</FONT><FONT STYLE="color: #262626">ons
for, any of such property; and together with all proceeds {including without limitation all insurance proceeds and refunds of premiums)
from any sale or other disposition of the Property.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #262626"><B>Property.
</B>The word &quot;Property&quot; means collectively the Real Property and the Personal Property</FONT><FONT STYLE="color: #5B5B5B">.
</FONT><FONT STYLE="color: #262626">The word &quot;Property&quot; also includes all existing or subsequently erected or affixed
buildings</FONT><FONT STYLE="color: #424142">, </FONT><FONT STYLE="color: #262626">improvements and fixtures, all appurtenances,
all rights relating to the Real Property (including minerals</FONT><FONT STYLE="color: #424142">, </FONT><FONT STYLE="color: #262626">oil,
gas, water</FONT><FONT STYLE="color: #424142">, </FONT><FONT STYLE="color: #262626">and the like), and all ditch rights (including
stock in utilit</FONT><FONT STYLE="color: #424142">i</FONT><FONT STYLE="color: #262626">es with ditch or irrigat</FONT><FONT STYLE="color: #424142">i</FONT><FONT STYLE="color: #262626">on
rights)</FONT><FONT STYLE="color: #424142">.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #262626"><B>Real
Property. </B>The words &quot;Real Property&quot; mean the real property</FONT><FONT STYLE="color: #424142">, </FONT><FONT STYLE="color: #262626">interests
and rights, as further described in this Mortgage</FONT><FONT STYLE="color: #424142">.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #262626"><B>Related
Documents. </B>The words &quot;Related Documents&quot; mean all promissory notes</FONT><FONT STYLE="color: #424142">, </FONT><FONT STYLE="color: #262626">credit
agreements. loan agreements, environmental agreements, guaranties, security agreements, mortgages, deeds of trust</FONT><FONT STYLE="color: #424142">,
</FONT><FONT STYLE="color: #262626">security deeds, collateral mortgages, and all other instruments</FONT><FONT STYLE="color: #424142">,
</FONT><FONT STYLE="color: #262626">agreements and documents</FONT><FONT STYLE="color: #424142">, </FONT><FONT STYLE="color: #262626">whether
now or hereafter existing, executed in connection with the Indebtedness</FONT><FONT STYLE="color: #424142">.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #262626"><B>Rents.
</B>The word &quot;Rents&quot; means all present and future rents, revenues</FONT><FONT STYLE="color: #424142">, </FONT><FONT STYLE="color: #262626">income,
issues, royalties, profits, and other benefits derived from the Property</FONT><FONT STYLE="color: #424142">.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; color: #262626">GRANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS
OF THIS MORTGAGE, AND GRANTOR AGREES TO ITS TERMS.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: #262626">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; color: #262626"><B>GRANTOR:</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; color: #262626">MOUNTAIN HAWK EAST DEVELOPMENT COMPANY LLC</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0.25in; width: 3%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: #262626">By:</FONT>&nbsp;&nbsp;&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; width: 47%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: #262626">/s/ Carey Plant</FONT></TD>
    <TD STYLE="width: 50%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: #262626">CAREY PLANT, Vice President of MOUNTAIN HAWK</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: #262626">EAST DEVELOPMENT COMPANY LLC</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; color: #262626"><B>LENDER:</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; color: #242424">SANDIA LABORATORY FEDERAL CREDIT UNION</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0.25in; width: 3%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #262626">By:</FONT>&nbsp;&nbsp;&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; width: 47%">/s/ Dan Cover</TD>
    <TD STYLE="width: 50%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #242424">Dan Cover, Vice President</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; color: #262626">LIMITED LIABILITY COMPANY
ACKNOWLEDGMENT</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0.25in; width: 50%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: #262626">STATE OF NEW MEXICO</FONT></TD>
    <TD STYLE="width: 50%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: #262626">) ss</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: #262626">COUNTY OF SANDOVAL</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; color: #262626">)</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0.25in"><FONT STYLE="color: #262626">This instrument was acknowledged
before me on February&nbsp;3, 2020, by <B>CAREY PLANT, Vice President of MOUNTAIN HAWK EAST DEVELOPMENT COMPANY LLC</B>, on behalf
of <B>MOUNTAIN HAWK EAST DEVELOPMENT COMPANY LLC</B></FONT><FONT STYLE="color: #424142">, </FONT><FONT STYLE="color: #262626">a
limited liability company.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; width: 50%">/s/ Debra J. Torrez</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; color: #262626">Notary Public</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; width: 18%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: #262626">Commission expiration:</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; width: 32%">3/28/2022</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><B>MORTGAGE</B><FONT></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%; font-size: 10pt"><B>Loan No: 2401</B></TD>
    <TD STYLE="width: 1%; font-size: 10pt"><B>&nbsp;</B></TD>
    <TD STYLE="width: 49%; font-size: 10pt; text-align: right"><B>Page&nbsp;8</B></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">LENDER ACKNOWLEDGMENT</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0.125in; width: 50%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #262626">STATE OF NEW MEXICO</FONT></TD>
    <TD STYLE="width: 50%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: #262626">) ss</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0.125in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #262626">COUNTY OF BERNALILLO</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; color: #262626">)</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0.25in; color: #262626">This instrument was acknowledged
before me on February&nbsp;3, 2020, by <B>DAN COVER, </B>Vice President of SANDIA LABOROATORY FEDERAL CREDIT UNION, a Federal
credit union.</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; width: 50%">/s/ Karla J. Walker</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; color: #262626">Notary Public</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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    <TD STYLE="width: 50%">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; width: 18%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: #262626">Commission expiration:</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; width: 32%">7/9/2021</TD></TR>
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<DOCUMENT>
<TYPE>EX-10.4
<SEQUENCE>5
<FILENAME>tm206507d1_ex10-4.htm
<DESCRIPTION>EXHIBIT 10.4
<TEXT>
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<P STYLE="margin: 0; text-align: right"><B>Exhibit 10.4</B></P>

<P STYLE="margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center; border: black 1pt solid; width: 19%; vertical-align: bottom"><B>Principal<BR> $3,000,000.00</B></TD>
    <TD STYLE="text-align: center; border-top: black 1pt solid; border-right: black 1pt solid; border-bottom: black 1pt solid; width: 11%; font-size: 10pt; vertical-align: bottom"><B>Loan Date<BR> 02-03-2020</B></TD>
    <TD STYLE="vertical-align: bottom; border-top: black 1pt solid; border-right: black 1pt solid; border-bottom: black 1pt solid; width: 11%; font-size: 10pt; text-align: center"><B>Maturity<BR> 08-01-2022</B></TD>
    <TD STYLE="vertical-align: bottom; border-top: black 1pt solid; border-right: black 1pt solid; border-bottom: black 1pt solid; width: 15%; font-size: 10pt; text-align: center"><B>Loan No<BR> 2401</B></TD>
    <TD STYLE="text-align: center; border-top: black 1pt solid; border-right: black 1pt solid; border-bottom: black 1pt solid; width: 13%; vertical-align: bottom"><B>Call / Coll<BR> 70 / 26</B></TD>
    <TD STYLE="text-align: center; border-top: black 1pt solid; border-right: black 1pt solid; border-bottom: black 1pt solid; width: 15%; vertical-align: bottom"><B>Account<BR> 0010188747</B></TD>
    <TD STYLE="text-align: center; border-top: black 1pt solid; border-right: black 1pt solid; border-bottom: black 1pt solid; width: 7%; font-size: 10pt; vertical-align: bottom"><B>Officer<BR> DC</B></TD>
    <TD STYLE="text-align: center; border-top: black 1pt solid; border-right: black 1pt solid; border-bottom: black 1pt solid; width: 9%; font-size: 10pt; vertical-align: bottom"><B>Initials</B></TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="8" STYLE="text-align: center; border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid; vertical-align: bottom">References in the boxes above are for Lender's use only and do not limit the applicability of this document to any particular loan or item.<BR>
Any item above containing &quot;***&quot; has been omitted due to text length limitations.</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><B>COMMERCIAL GUARANTY</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 10pt; border-top: Black 1pt solid; text-align: left; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="border-top: Black 1pt solid; text-align: left; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="border-top: Black 1pt solid; text-align: left; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="border-top: Black 1pt solid; text-align: left; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="padding-right: 10pt; border-top: Black 1pt solid; text-align: left; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 10pt; text-align: left; width: 10%; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #232323">Borrower:</FONT></TD>
    <TD STYLE="text-align: left; width: 35%; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #232323">MOUNTAIN HAWK EAST DEVELOPMENT</FONT></TD>
    <TD STYLE="text-align: left; width: 10%; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="text-align: left; width: 10%; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #232323">Lender:</FONT></TD>
    <TD STYLE="padding-right: 10pt; text-align: left; width: 35%; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #232323">Sandia
Laboratory Federal Credit Union </FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 10pt; text-align: left; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #232323">COMPANY LLC</FONT></TD>
    <TD STYLE="text-align: left; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="padding-right: 10pt; text-align: left; vertical-align: bottom">3707 Juan Tabo Blvd.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 10pt; text-align: left; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: bottom">333 RIO RANCHO DR., SUITE 202</TD>
    <TD STYLE="text-align: left; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="padding-right: 10pt; text-align: left; vertical-align: bottom">Albuquerque, NM 87111</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 10pt; vertical-align: bottom; text-align: left">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #232323">RIO RANCHO, NM 87124</FONT></TD>
    <TD STYLE="text-align: left; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-right: 10pt; vertical-align: bottom; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; color: #232323"></FONT>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 10pt; text-align: left; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="padding-right: 10pt; text-align: left; vertical-align: bottom"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; color: #232323">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 10pt; text-align: left; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #232323">Guarantor:</FONT></TD>
    <TD STYLE="text-align: left; vertical-align: bottom">AMREP SOUTHWEST,INC.</TD>
    <TD STYLE="text-align: left; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="padding-right: 10pt; text-align: left; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 10pt; text-align: left; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #232323">333 RIO RANCHO DR., SUITE 202</FONT></TD>
    <TD STYLE="text-align: left; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="padding-right: 10pt; text-align: left; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 10pt; text-align: left; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: bottom">RIO RANCHO, NM 87124</TD>
    <TD STYLE="text-align: left; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="padding-right: 10pt; text-align: left; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 10pt; border-bottom: Black 1pt solid; text-align: left; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="padding-right: 10pt; border-bottom: Black 1pt solid; text-align: left; vertical-align: bottom">&nbsp;</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in; text-align: justify"><FONT STYLE="color: #232323"><B>CONTINUING
GUARANTEE OF PAYMENT AND PERFORMANCE. </B>For good and valuable consideration, Guarantor absolutely and unconditionally guarantees
full and punctual payment and satisfaction of the Indebtedness of Borrower to Lender, and the performance and discharge of all
Borrower's obligations under the Note and the Related Documents</FONT><FONT STYLE="color: #505050">. </FONT><FONT STYLE="color: #232323">This
is a guaranty of payment and performance and not of collection, so Lender can enforce this Guaranty against Guarantor even when
lender has not exhausted lender's remedies against anyone else obligated to pay the Indebtedness or against any collateral securing
the Indebtedness, this Guaranty or any other guaranty of the Indebtedness. Guarantor will make any payments to Lender or its order,
on demand, in legal tender of the United States of America, in same-day funds, without set-off or deduction or counterclaim, and
will otherwise perform Borrower's obligations under the Note and Related Documents. Under this Guaranty, Guarantor's liability
is unlimited, and Guarantor's obligations are continuing.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in; text-align: justify"><FONT STYLE="color: #232323"><B>INDEBTEDNESS.
</B>The word </FONT><FONT STYLE="color: #3B3B3B">&quot;Indebtedness&quot; </FONT><FONT STYLE="color: #232323">as used in this Guaranty
means all of the principal amount outstanding from time to time and at any one or more times, accrued unpaid interest thereon and
all collection costs and legal expenses related thereto permitted by law, attorneys' fees, arising from any and all debts, liabilities
and obligations of every nature or form, now existing or hereafter arising or acquired, that Borrower individually or collectively
or interchangeably with others, owes or will owe lender. &quot;Indebtedness&quot; includes, without limitation, loans, advances,
debts, overdraft indebtedness, credit card indebtedness, lease obligations, liabilities and obligations under any </FONT><FONT STYLE="color: #3B3B3B">interest
</FONT><FONT STYLE="color: #232323">rate protection agreements or foreign currency exchange agreements or commodity price protection
agreements, other obligations, and liabilities of Borrower, and any present or future judgments against Borrower, future advances,
loans or transactions that renew, extend, modify, refinance, consolidate or substitute these debts, liabilities and obligations
whether</FONT><FONT STYLE="color: #505050">: </FONT><FONT STYLE="color: #232323">voluntarily or involuntarily incurred; due or
to become due by their terms or acceleration; absolute or contingent; liquidated or unliquidated; determined or undetermined</FONT><FONT STYLE="color: #505050">;
</FONT><FONT STYLE="color: #232323">direct or indirect; primary or secondary in nature or arising from a guaranty or surety; secured
or unsecured; joint or several or joint and several; evidenced by a negotiable or non-negotiable instrument or writing; originated
by lender or another or others; barred or unenforceable against Borrower for any reason whatsoever; for any transactions that may
be voidable for any reason (such as infancy, insanity</FONT><FONT STYLE="color: #505050">, </FONT><FONT STYLE="color: #232323">ultra
vires or otherwise); and originated then reduced or extinguished and then afterwards increased or reinstated. However, &quot;Indebtedness&quot;
shall not include any liabilities and obligations under any agreement regulated as a </FONT><FONT STYLE="color: #3B3B3B">&quot;swap&quot;
</FONT><FONT STYLE="color: #232323">by the Commodity Exchange Act, as amended, unless otherwise agreed in writing</FONT><FONT STYLE="color: #505050">.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in; text-align: justify"><FONT STYLE="color: #232323">If
Lender presently holds one or more guaranties, or hereafter receives additional guaranties from Guarantor, lender's rights under
all guaranties shall be cumulative</FONT><FONT STYLE="color: #505050">. </FONT><FONT STYLE="color: #232323">This Guaranty shall
not (unless specifically provided below to the contrary) affect or invalidate any such other guaranties. Guarantor's liability
will be Guarantor's aggregate liability under the terms of this Guaranty and any such other unterminated guaranties</FONT><FONT STYLE="color: #505050">.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in; text-align: justify"><FONT STYLE="color: #232323"><B>CONTINUING
GUARANTY. </B>THIS IS A &quot;CONTINUING GUARANTY&quot; UNDER WHICH GUARANTOR AGREES TO GUARANTEE THE FULL AND PUNCTUAL PAYMENT,
PERFORMANCE AND SATISFACTION OF THE INDEBTEDNESS OF BORROWER TO LENDER, NOW EXISTING OR HEREAFTER ARISING OR ACQUIRED, ON AN OPEN
AND CONTINUING BASIS</FONT><FONT STYLE="color: #6B6B6B">. </FONT><FONT STYLE="color: #232323">ACCORDINGLY, ANY PAYMENTS MADE ON
THE INDEBTEDNESS WILL NOT DISCHARGE OR DIMINISH GUARANTOR'S OBLIGATIONS AND LIABILITY UNDER THIS GUARANTY FOR ANY REMAINING AND
SUCCEEDING INDEBTEDNESS EVEN WHEN All OR PART&nbsp;OF THE OUTSTANDING INDEBTEDNESS MAY&nbsp;BE A ZERO BALANCE FROM TIME TO TIME.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in; text-align: justify"><FONT STYLE="color: #232323"><B>DURATION
OF GUARANTY. </B>This Guaranty will take effect when received by Lender without the necessity of any acceptance by Lender, or any
notice to Guarantor or to Borrower, and will continue in full force until all the Indebtedness incurred or contracted before receipt
by Lender of any notice of revocation shall have been fully and finally paid and satisfied and all of Guarantor's other obligations
under this Guaranty shall have been performed in full. If Guarantor elects to revoke this Guaranty, Guarantor may only do so in
writing. Guarantor&rsquo;s written notice of revocation must be mailed to Lender, by certified mail, at lender's address listed
above or such other place as lender may designate in writing. Written revocation of this Guaranty will apply only to new Indebtedness
created after actual receipt by Lender of Guarantor's written revocation. For this purpose and without limitation, the term &quot;new
Indebtedness&quot; does not include the Indebtedness which at the time of notice of revocation is contingent, unliquidated, undetermined
or not due and which later becomes absolute, liquidated, determined or due. For this purpose and without limitation, &quot;new
Indebtedness&quot; does not include all or part of the Indebtedness that is: incurred by Borrower prior to revocation; incurred
under a commitment that became binding before revocation; any renewals, extensions, substitutions, and modifications of the Indebtedness.
This Guaranty shall bind Guarantor's estate as to the Indebtedness created both before and after Guarantor's death or incapacity,
regardless of lender's actual notice of Guarantor's death. Subject to the foregoing, Guarantor's executor or administrator or other
legal representative may terminate this Guaranty in the same manner in which Guarantor might have terminated it and with the same
effect. Release of any other guarantor or termination of any other guaranty of the Indebtedness shall not affect the liability
of Guarantor under this Guaranty</FONT><FONT STYLE="color: #505050">. </FONT><FONT STYLE="color: #232323"><B>A </B>revocation Lender
receives from any one or more Guarantors shall not affect the liability of any remaining Guarantors under this Guaranty</FONT><FONT STYLE="color: #505050">.
</FONT><FONT STYLE="color: #232323">It <B>is anticipated that fluctuations may occur </B>in <B>the aggregate amount of the Indebtedness
covered by this Guaranty, and Guarantor specifically acknowledges and agrees that reductions in the amount of the Indebtedness,
even to zero dollars ($0.00), shall not constitute a termination of this Guaranty. This Guaranty is binding upon Guarantor and
Guarantor's heirs, successors and assigns so long as any of the Indebtedness remains unpaid and even though the Indebtedness may
from time to time be zero dollars ($0.00).</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in; text-align: justify"><FONT STYLE="color: #232323">GUARANTOR'S
AUTHORIZATION TO LENDER. Guarantor authorizes Lender, either before or after any revocation hereof, without notice or demand and
without lessening Guarantor's liability under this Guaranty, from time to time: (A)&nbsp;prior to revocation as set forth above,
to make one or more additional secured or unsecured loans to Borrower, to lease equipment or other goods to Borrower, or otherwise
to extend additional credit to Borrower; (B)&nbsp;to alter, compromise, renew, extend, accelerate, or otherwise change one or more
times the time for payment or other terms of the Indebtedness or any part of the Indebtedness, including increases and decreases
of the rate of interest on the Indebtedness; extensions may be repeated and may be for longer than the original loan term; (C)&nbsp;to
take and hold security for the payment of this Guaranty or the Indebtedness, and exchange, enforce, waive, subordinate, fail or
decide not to perfect, and release any such security</FONT><FONT STYLE="color: #505050">, </FONT><FONT STYLE="color: #232323">with
or without the substitution of new collateral; (D)&nbsp;to release, substitute, agree not to sue, or deal with any one or more
of Borrower's sureties, endorsers, or other guarantors on any terms or in any manner Lender may choose; (E)&nbsp;to determine how,
when and what application of payments and credits shall be made on the Indebtedness; (F)&nbsp;to apply such security and direct
the order or manner of sale thereof, including without limitation, any nonjudicial sale permitted by the terms of the controlling
security agreement or deed of trust, as lender </FONT><FONT STYLE="color: #3B3B3B">in </FONT><FONT STYLE="color: #232323">its discretion
may determine; (G)&nbsp;to sell, transfer, assign or grant participations in all or any part of the Indebtedness</FONT><FONT STYLE="color: #505050">;
</FONT><FONT STYLE="color: #232323">and (H)&nbsp;to assign or transfer this Guaranty </FONT><FONT STYLE="color: #3B3B3B">in </FONT><FONT STYLE="color: #232323">whole
or in part.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in; text-align: justify; color: #242424"><B>Guarantor&rsquo;s
Net Worth. </B>Guarantor shall maintain a minimum net worth equal to or greater than $29,000,000 measured annually as of April&nbsp;30<SUP>th</SUP>
of each year and determined by review of financial statements required to be provided to Lender. Guarantor will provide to Lender
(a)&nbsp;Guarantor&rsquo;s annual financial statements (balance sheet and income statement) within 120 days of its Fiscal Year
end (FYE is April&nbsp;30). All financial information provided to Lender will be in form and content acceptable to Lender in its
reasonable discretion.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in; text-align: justify"><FONT STYLE="color: #232323"><B>GUARANTOR'S
REPRESENTATIONS AND WARRANTIES. </B>Guarantor represents and warrants to Lender that (A)&nbsp;no representations or agreements
of any kind have been made to Guarantor which would limit or qualify in any way the terms of this Guaranty</FONT><FONT STYLE="color: #505050">;
</FONT><FONT STYLE="color: #232323">(B)&nbsp;this Guaranty is executed at Borrower's request and not at the request of Lender;
(C)&nbsp;Guarantor has full power, right and authority to enter into this Guaranty;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; color: #232323"><B><I>[THE REMAINDER OF
THIS PAGE IS INTENTIONALLY BLANK]</I></B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0.25in; width: 50%; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; color: #262626">Loan No: 2401</FONT></TD>
    <TD STYLE="padding-right: 0.25in; text-align: right; width: 50%; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; color: #262626">Page&nbsp;3</FONT></TD></TR>
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</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in; text-align: justify; color: #242424">(D)&nbsp;the
provisions of this Guaranty do not conflict with or result in a default under any agreement or other instrument binding upon Guarantor
and do not result in a violation of any law, regulation, court decree or order applicable to Guarantor; (E)&nbsp;Guarantor has
not and will not, without the prior written consent of Lender, sell, lease, assign, encumber, hypothecate, transfer, or otherwise
dispose of all or substantially all of Guarantor's assets, or any interest therein; (F)&nbsp;upon Lender's request, Guarantor will
provide to Lender financial and credit information in form acceptable to Lender, and all such financial information which currently
has been, and all future financial information which will be provided to Lender is and will be true and correct in all material
respects and fairly present Guarantor's financial condition as of the dates the financial information is provided; (G)&nbsp;no
material adverse change has occurred in Guarantor's financial condition since the date of the most recent financial statements
provided to Lender and no event has occurred which may materially adversely affect Guarantor's financial condition; (H)&nbsp;no
litigation, claim, investigation, administrative proceeding or similar action (including those for unpaid taxes) is pending or
threatened against Guarantor in which the amount at issue is in excess of Two Hundred Fifty Thousand Dollars ($250,000.00); (1)&nbsp;Lender
has made no representation to Guarantor as to the creditworthiness of Borrower; and (J)&nbsp;Guarantor has established adequate
means of obtaining from Borrower on a continuing basis information regarding Borrower's financial condition. Guarantor agrees to
keep adequately informed from such means of any facts, events, or circumstances which might in any way affect Guarantor's risks
under this Guaranty, and Guarantor further agrees that, absent a request for information, Lender shall have no obligation to disclose
to Guarantor any information or documents acquired by Lender in the course of its relationship with Borrower.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in; text-align: justify; color: #242424"><B>FINANCIAL
STATEMENTS AND TAX RETURNS. </B>Not later than thirty (30) days after AMREP Corporation has filed it tax return for the tax reporting
period ended, Guarantor shall cause to be delivered to Lender the state and federal tax returns for Guarantor. Guarantor&rsquo;s
annual internally prepared balance sheets and income statements shall be delivered to Lender within one hundred twenty (120) days
after the end of the fiscal year.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in; text-align: justify; color: #242424">All
financial reports required to be provided under this Agreement shall be prepared in accordance with GAAP, applied on a consistent
basis as Lender may reasonably request, and certified by Borrower as being true and correct</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in; text-align: justify"><FONT STYLE="color: #242424"><B>GUARANTOR'S
WAIVERS. </B>Except as prohibited by applicable law, Guarantor waives any right to require Lender (A)&nbsp;to continue lending
money or to extend other credit to Borrower; (B)&nbsp;to make any presentment, protest, demand, or notice of any kind, including
notice of any nonpayment of the Indebtedness or of any nonpayment related to any collateral, or notice of any action or nonaction
on the part of Borrower, Lender, any surety, endorser, or other guarantor in connection with the Indebtedness or in connection
with the creation of new or additional loans or obligations</FONT><FONT STYLE="color: #505050">; </FONT><FONT STYLE="color: #242424">(C)&nbsp;to
resort for payment or to proceed directly or at once against any person, including Borrower or any other guarantor</FONT><FONT STYLE="color: #505050">;</FONT>
<FONT STYLE="color: #242424">(D)&nbsp;to proceed directly against or exhaust any collateral held by Lender from Borrower, any other
guarantor, or any other person; (E)&nbsp;to give notice of the terms, time, and place of any public or private sale of personal
property security held by Lender from Borrower or to comply with any other applicable provisions of the Uniform Commercial Code;
(F)&nbsp;to pursue any other remedy within Lender's power; or (G)&nbsp;to commit any act or omission of any kind, or at any time,
with respect to any matter whatsoever.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in; text-align: justify"><FONT STYLE="color: #242424">Guarantor
also waives any and all rights or defenses based on suretyship or impairment of collateral including, but not limited to, any rights
or defenses arising by reason of (A)&nbsp;any &quot;one action&quot; or </FONT><FONT STYLE="color: #3B3B3B">&quot;anti-deficiency&quot;
</FONT><FONT STYLE="color: #242424">law or any other law which may prevent Lender from bringing any action, including a claim for
deficiency, against Guarantor, before or after Lender's commencement or completion of any foreclosure action, either judicially
or by exercise of a power of sale; (B)&nbsp;any election of remedies by Lender which destroys or otherwise adversely affects Guarantor's
subrogation rights or Guarantor's rights to proceed against Borrower for reimbursement, including without limitation, any loss
of rights Guarantor may suffer by </FONT><FONT STYLE="color: #2D4D34">r</FONT><FONT STYLE="color: #242424">eason of any law limiting,
qualifying, or discharging the Indebtedness; (C)&nbsp;any disability or other defense of Borrower, of any other guaranto</FONT><FONT STYLE="color: #2D4D34">r,
</FONT><FONT STYLE="color: #242424">or of any other person, or by reason of the cessation of Borrower's liability from any cause
whatsoever, other than payment in full in legal tender, of the Indebtedness; (D)&nbsp;any right to claim discharge of the Indebtedness
on the basis of unjustified impairment of any collateral for the Indebtedness; or (E)&nbsp;any defenses given to guarantors at
law or in equity other than actual payment and performance of the Indebtedness. If payment is made by Borrower, whether voluntarily
or otherwise, or by any third party, on the Indebtedness and thereafter Lender is forced to remit the amount of that payment to
Borrower's trustee in bankruptcy or to any similar person under any federal or state bankruptcy law or </FONT><FONT STYLE="color: #3B3B3B">law
</FONT><FONT STYLE="color: #242424">for the relief of debtors, the Indebtedness shall be considered unpaid for the purpose of the
enforcement of this Guaranty</FONT><FONT STYLE="color: #505050">.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in; text-align: justify; color: #242424">Guarantor further
waives and agrees not to assert or claim at any time any deductions to the amount guaranteed under this Guaranty for any counterclaim,
counter demand, recoupment or similar right, whether such claim, demand or right may be asserted by the Borrower, the Guarantor,
or both.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in; text-align: justify"><FONT STYLE="color: #242424"><B>GUARANTOR'S
UNDERSTANDING WITH RESPECT TO WAIVERS</B></FONT><B><FONT STYLE="color: #505050">. </FONT></B><FONT STYLE="color: #242424">Guarantor
warrants and agrees that each of the waivers set forth above is made with Guarantor's full knowledge of its significance and consequences
and that, under the circumstances, the waivers are reasonable and not contrary to public policy or law. If any such waiver is determined
to be contrary to any applicable law or public policy, such waiver shall be effective only to the extent permitted by law or public
policy.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in; text-align: justify"><FONT STYLE="color: #242424"><B>STATUTORY
LIEN. </B>Guarantor agrees that all Guarantor's obligations under </FONT><FONT STYLE="color: #3B3B3B">this </FONT><FONT STYLE="color: #242424">Guaranty
are secured by all shares and deposits in all joint and individual accounts Guarantor has with Lender now and </FONT><FONT STYLE="color: #3B3B3B">in
</FONT><FONT STYLE="color: #242424">the future. Guarantor authorizes Lender</FONT><FONT STYLE="color: #505050">, </FONT><FONT STYLE="color: #242424">to
the extent permitted by applicable law, to hold these </FONT><FONT STYLE="color: #3B3B3B">funds </FONT><FONT STYLE="color: #242424">if
there is a default and Lender may apply the funds in these accounts to pay what Guarantor owes under the terms of this Guaranty</FONT><FONT STYLE="color: #505050">.
</FONT><FONT STYLE="color: #242424">Shares and deposits in an Individual Retirement Account and any other account that would lose
special tax treatment under state or federal law if given as security are not subject to the security interest Guarantor has given
in Guarantor's shares and deposits.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in; text-align: justify"><FONT STYLE="color: #242424"><B>SUBORDINATION
OF BORROWER'S DEBTS TO GUARANTOR</B></FONT><B><FONT STYLE="color: #9A9A9A">. </FONT></B><FONT STYLE="color: #242424">Guarantor
agrees that the Indebtedness, whether now existing or hereafter created, shall be superior to any claim that Guarantor may now
have or hereafter acquire against Borrower, whether or not Borrower becomes </FONT><FONT STYLE="color: #3B3B3B">insolvent. </FONT><FONT STYLE="color: #242424">Guarantor
hereby expressly subordinates any claim Guarantor may have against Borrower, upon any account whatsoever, to any claim that Lender
may now or hereafter have against Borrower. In the event of insolvency and consequent liquidation of the assets of Borrower, through
bankruptcy, by an assignment for the benefit of creditors, by voluntary liquidation, or otherwise, the assets of Borrower applicable
to the payment of the claims of both Lender and Guarantor shall be paid to Lender and shall be first applied by Lender to the Indebtedness</FONT><FONT STYLE="color: #505050">.
</FONT><FONT STYLE="color: #242424">Guarantor does hereby assign to Lender all claims which it may have or acquire against Borrower
or </FONT><FONT STYLE="color: #3B3B3B">against </FONT><FONT STYLE="color: #242424">any </FONT><FONT STYLE="color: #3B3B3B">assignee
</FONT><FONT STYLE="color: #242424">or trustee in bankruptcy of Borrower; provided however, that such assignment shall be effective
only for the purpose of assuring to Lender </FONT><FONT STYLE="color: #3B3B3B">full </FONT><FONT STYLE="color: #242424">payment
in legal tender of the Indebtedness</FONT><FONT STYLE="color: #505050">. </FONT><FONT STYLE="color: #242424">If Lender so requests,
any notes or credit agreements now or hereafter evidencing any debts or obligations of Borrower to Guarantor shall be marked with
a legend that the same are subject to this Guaranty and shall be delivered to Lender. Guarantor agrees, and Lender is hereby authorized,
in the name of Guarantor, from time to time to file financing statements and continuation statements and to execute documents and
to take such other actions as Lender deems necessary or appropriate to perfect, preserve and enforce its rights under this Guaranty</FONT><FONT STYLE="color: #505050">.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0.25in; width: 50%; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; color: #262626">Loan No: 2401</FONT></TD>
    <TD STYLE="padding-right: 0.25in; text-align: right; width: 50%; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; color: #262626">Page&nbsp;4</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid; padding-left: 0.25in; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 0.25in; text-align: right; font-size: 10pt">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in; text-align: justify; color: #242424"><B>Right to
Cure. </B>As a condition precedent to either (a)&nbsp;any default under this Guaranty; (b)&nbsp;Event of Default as defined by
the Related Documents; or (c)&nbsp;the calling due of the Guarantor&rsquo;s obligations of this Guaranty, Lender will provide Guarantor
written notice and thereafter either: (a)&nbsp;fifteen (15) days to cure any monetary default; and (b)&nbsp;thirty (30) days to
cure any non-monetary default or, if the non-monetary default is of the nature that cannot reasonably be cured within thirty (30)
days, then Borrower or Guarantor shall initiate steps which Lender, in Lender&rsquo;s sole discretion, deems sufficient to cure
the default and thereafter continues and completes all reasonable and necessary steps sufficient to produce compliance as soon
as reasonably practical.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in; text-align: justify; color: #242424"><B>MISCELLANEOUS
PROVISIONS. </B>The following miscellaneous provisions are a part of this Guaranty:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #242424"><B>Amendments.
</B>This Guar</FONT><FONT STYLE="color: #505050">a</FONT><FONT STYLE="color: #242424">nty, together with </FONT><FONT STYLE="color: #3B3B3B">any
</FONT><FONT STYLE="color: #242424">Related </FONT><FONT STYLE="color: #3B3B3B">Documents, constitutes </FONT><FONT STYLE="color: #242424">the
</FONT><FONT STYLE="color: #3B3B3B">entire </FONT><FONT STYLE="color: #242424">under</FONT><FONT STYLE="color: #505050">s</FONT><FONT STYLE="color: #242424">tanding
</FONT><FONT STYLE="color: #3B3B3B">and agreement </FONT><FONT STYLE="color: #242424">of the p</FONT><FONT STYLE="color: #505050">a</FONT><FONT STYLE="color: #242424">rties
</FONT><FONT STYLE="color: #505050">as </FONT><FONT STYLE="color: #242424">to the matters set forth in this </FONT><FONT STYLE="color: #3B3B3B">Guaranty</FONT><FONT STYLE="color: gray">.
</FONT><FONT STYLE="color: #242424">No alteration of or </FONT><FONT STYLE="color: #3B3B3B">amendment </FONT><FONT STYLE="color: #242424">to
this Guaranty shall be effective unless given </FONT><FONT STYLE="color: #3B3B3B">in </FONT><FONT STYLE="color: #242424">writing
</FONT><FONT STYLE="color: #3B3B3B">and </FONT><FONT STYLE="color: #242424">signed by the party or parties sought to be charged
or bound by the alteration or amendment.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #262626"><B>Attorneys'
Fees; Expenses</B></FONT><B><FONT STYLE="color: #494949">. </FONT></B><FONT STYLE="color: #262626">Guarantor agrees to pay upon
demand all of Lender's reasonable costs and reasonable expenses, including Lender's reasonable attorneys' fees and Lender's reasonable
legal expenses. incurred in connection with the enforcement of this Guaranty</FONT><FONT STYLE="color: #626464">. </FONT><FONT STYLE="color: #262626">Lender
may hire or pay someone else to help enforce this Guaranty</FONT><FONT STYLE="color: #494949">, </FONT><FONT STYLE="color: #262626">and
Guarantor shall pay the reasonable costs and reasonable expenses of such enforcement. Costs and expenses include Lender&rsquo;s
reasonable attorneys' fees and reasonable legal expenses whether or not there is a lawsuit, including reasonable attorneys' fees
and reasonable legal expenses for bankruptcy proceedings (including efforts to modify or vacate any automatic stay or injunction),
appeals, and any anticipated post-judgment collection services. Guarantor also shall pay all court costs and such additional reasonable
fees as may be directed by the court</FONT><FONT STYLE="color: #626464">.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #262626"><B>Caption
Headings. </B>Caption headings in this Guaranty are for convenience purposes only and are not to be used to interpret or define
the provisions of this Guaranty</FONT><FONT STYLE="color: #494949">.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify; color: #262626"><B>Governing
Law. This Guaranty will be governed by federal law applicable to Lender and, to the extent not preempted by federal law, the laws
of the State of New Mexico without regard to its conflicts of law provisions.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify; color: #262626"><B>Choice
of Venue. </B>If there is a lawsuit, Guarantor agrees upon Lender's request to submit to the jurisdiction of the courts of Sandoval
County, State of New Mexico.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #262626"><B>Integration.
</B>Guarantor further agrees that Guarantor has read and fully understands the terms of this Guaranty; Guarantor has had the opportunity
to be advised by Guarantor's attorney with respect to this Guaranty; the Guaranty fully reflects Guarantor's intentions and parol
evidence is not required to interpret the terms of this Guaranty. Guarantor hereby indemnifies and holds Lender harmless from all
losses, claims, damages, and costs (</FONT><FONT STYLE="color: #494949">i</FONT><FONT STYLE="color: #262626">ncluding Lender's
attorneys' fees) suffered or incurred by Lender as a result of any breach by Guarantor of the warranties, representations and agreements
of this paragraph</FONT><FONT STYLE="color: #494949">.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #262626"><B>Interpretation.
</B>In all cases where there is more than one Borrower or Guarantor, then all words used in this Guaranty in the singular shall
be deemed to have been used in the plural where the context and construction so require; and where there is more than one Borrower
named in this Guaranty or when this Guaranty is executed by more than one Guarantor, the words &quot;Borrower&quot; and &quot;Guarantor&quot;
respectively shall mean all and any one or more of them</FONT><FONT STYLE="color: #626464">. </FONT><FONT STYLE="color: #262626">The
words &quot;Guarantor,&quot; &quot;Borrower,&quot; and &quot;Lender&quot; include the heirs, successors, assigns, and transferees
of each of them. If a court finds that any provision of this Guaranty is not valid or should not be enforced, that fact by itself
will not mean that the rest of this Guaranty will not be valid or enforced. Therefore, a court will enforce the rest of the provisions
of this Guaranty even if a provision of this Guaranty may be found to be invalid or unenforceable</FONT><FONT STYLE="color: #494949">.
</FONT><FONT STYLE="color: #262626">If any one or more of Borrower or Guarantor are corporations, partnerships, limited liability
companies, or similar entities, </FONT><FONT STYLE="color: #383A3A">it </FONT><FONT STYLE="color: #262626">is not necessary for
Lender to inquire into the powers of Borrower or Guarantor or of the officers, directors, partners, managers</FONT><FONT STYLE="color: #494949">,
</FONT><FONT STYLE="color: #262626">or other agents acting or purporting to act on their behalf, and any </FONT><FONT STYLE="color: #383A3A">indebtedness
</FONT><FONT STYLE="color: #262626">made or created in reliance upon the professed exercise of such powers shall be guaranteed
under this Guaranty.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #262626"><B>Notices.
</B>Any notice required to be given under this Guaranty shall be given in writing</FONT><FONT STYLE="color: #494949">, </FONT><FONT STYLE="color: #262626">and,
except for revocation notices by Guarantor</FONT><FONT STYLE="color: #494949">, </FONT><FONT STYLE="color: #262626">shall be effective
when actually delivered (unless otherwise required by law), when deposited with a nationally recognized overnight courier</FONT><FONT STYLE="color: #494949">,
</FONT><FONT STYLE="color: #262626">or, if mailed, when deposited in the United States mail, as first class</FONT><FONT STYLE="color: #494949">,
</FONT><FONT STYLE="color: #262626">certified or registered mail postage prepaid, directed to the addresses shown near the beginning
of this Guaranty</FONT><FONT STYLE="color: #494949">. </FONT><FONT STYLE="color: #262626">All revocation notices by Guarantor shall
be in writing and shall be effective upon delivery to Lender as provided in the section of this Guaranty entitled &quot;DURATION
OF GUARANTY</FONT><FONT STYLE="color: #494949">.</FONT><FONT STYLE="color: #262626">&quot; Any party may change its address for
notices under this Guaranty by giving formal written notice to the other parties, specifying that the purpose of the notice is
to change the party</FONT><FONT STYLE="color: #494949">'</FONT><FONT STYLE="color: #262626">s address. For notice purposes</FONT><FONT STYLE="color: #835967">,
</FONT><FONT STYLE="color: #262626">Guarantor agrees to keep Lender informed at all times of Guarantor's current address. Unless
otherwise provided or required by law, if there is more than one Guarantor, any notice given by Lender to any Guarantor is deemed
to be notice given to all Guarantors.</FONT> <FONT STYLE="color: #242424">Notice by facsimile is expressly prohibited.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #262626"><B>No
Waiver by Lender. </B>Lender shall not be deemed to have waived any rights under this Guaranty unless such waiver is given in writing
and signed by Lender. No delay or omission on the part of Lender in exercising any right shall operate as a waiver of such right
or any other right. A waiver by Lender of a provision of this Guaranty shall not prejudice or constitute a waiver of Lender&rsquo;s
right otherwise to demand strict compliance with that provision or any other provision of this Guaranty. No prior waiver by Lender,
nor any course of dealing between Lender and Guarantor, shall constitute a waiver of any of Lender</FONT><FONT STYLE="color: #494949">'</FONT><FONT STYLE="color: #262626">s
rights or of any of Guarantor's obligations as to any future transactions</FONT><FONT STYLE="color: #494949">. </FONT><FONT STYLE="color: #262626">Whenever
the consent of Lender is required under this Guaranty, the granting of such consent by Lender in any instance shall not constitute
continuing consent to subsequent instances where such consent is required and in all cases such consent may be granted or withheld
in the sole discretion of Lender.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify"><FONT STYLE="color: #262626"><B>Successors
and Assigns. </B>Subject to any limitations stated in this Guaranty on transfer of Guarantor's interest, this Guaranty shall be
binding upon and inure to the benefit of the parties</FONT><FONT STYLE="color: #494949">, </FONT><FONT STYLE="color: #262626">their
successors and assigns</FONT><FONT STYLE="color: #626464">.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0.25in; width: 50%; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; color: #262626">Loan No: 2401</FONT></TD>
    <TD STYLE="padding-right: 0.25in; text-align: right; width: 50%; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; color: #262626">Page&nbsp;5</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid; padding-left: 0.25in; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 0.25in; text-align: right; font-size: 10pt">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in; text-align: justify"><FONT STYLE="color: #262626"><B>DEFINITIONS.
</B>The following capitalized words and terms shall have the following meanings when used in this Guaranty: Unless specifically
stated to the contrary</FONT><FONT STYLE="color: #494949">, </FONT><FONT STYLE="color: #262626">all references to dollar amounts
shall mean amounts in lawful money of the United States of America</FONT><FONT STYLE="color: #494949">. </FONT><FONT STYLE="color: #262626">Words
and terms used in the singular shall include the plural, and the plural shall include the singular, as the context may require</FONT><FONT STYLE="color: #494949">.
</FONT><FONT STYLE="color: #262626">Words and terms not otherwise defined in this Guaranty shall have the meanings attributed
to such terms in the Uniform Commercial Code:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-left: 0.5in; margin-right: 0.25in; margin-bottom: 0pt; text-align: justify"><FONT STYLE="color: #262626"><B>Borrower.
</B>The word &quot;Borrower&quot; means MOUNTAIN HAWK EAST DEVELOPMENT COMPANY LLC, and includes all co-signers and co-makers
signing the Note and all their successors and assigns</FONT><FONT STYLE="color: #626464">.</FONT>&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-left: 0.5in; margin-right: 0.25in; margin-bottom: 0pt; text-align: justify"><FONT STYLE="color: #262626"><B>Guarantor.
</B>The word </FONT><FONT STYLE="color: #383A3A">&quot;Guarantor&quot; </FONT><FONT STYLE="color: #262626">means AMREP SOUTHWEST,&nbsp;INC</FONT><FONT STYLE="color: #494949">.</FONT><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify; color: #262626">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0.5in; text-align: justify; color: #262626"><B>Guaranty.
</B>The word &quot;Guaranty&quot; means this guaranty from Guarantor to Lender.<FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-left: 0.5in; margin-right: 0.25in; margin-bottom: 0pt; text-align: justify"><FONT STYLE="color: #262626"><B>Indebtedness.
</B></FONT><FONT STYLE="color: #242424">The word </FONT><FONT STYLE="color: #3B3D3B">&quot;Indebtedness&quot; </FONT><FONT STYLE="color: #242424">means
the indebtedness evidenced by the Note, including all principal and interest together with all other indebtedness and costs and
expenses for which Borrower is responsible under this Agreement or under any of the Related Documents</FONT><FONT STYLE="color: #262626">.</FONT><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-left: 0.5in; margin-right: 0.25in; margin-bottom: 0pt; text-align: justify"><B>Lender.
</B>The word &quot;Lender&quot; means Sandia Laboratory Federal Credit Union, its successors and assigns.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-left: 0.5in; margin-right: 0.25in; margin-bottom: 0pt; text-align: justify"><FONT STYLE="color: #262626"><B>Note.
</B></FONT><FONT STYLE="color: #242424">The word &quot;Note&quot; means the Note dated February&nbsp;3, 2020 and executed by MOUNTAIN
HAWK EAST DEVELOPMENT COMPANY LLC </FONT><FONT STYLE="color: #3B3D3B">in </FONT><FONT STYLE="color: #242424">the principal amount
of $3,000,000.00, together with all renewals of, extensions of, modifications of, refinancing of, consolidations of, and substitutions
for the note or credit agreement.</FONT>&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-left: 0.5in; margin-right: 0.25in; margin-bottom: 0pt; text-align: justify"><FONT STYLE="color: #262626"><B>Related
Documents. </B>The words &quot;Related Documents&rdquo; mean all promissory notes</FONT><FONT STYLE="color: #444444">, credit
agreements</FONT><FONT STYLE="color: #262626">, loan agreements</FONT><FONT STYLE="color: #444444">, environmental </FONT><FONT STYLE="color: #262626">agreements,
guaranties</FONT><FONT STYLE="color: #444444">, </FONT><FONT STYLE="color: #262626">security agreements, mortgages, deeds of trust,
security deeds, collateral mortgages, and all other instruments, agreements and documents</FONT><FONT STYLE="color: #444444">,
</FONT><FONT STYLE="color: #262626">whether now or hereafter existing, executed in connection with the Note.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; color: #262626"><B>EACH UNDERSIGNED
GUARANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS GUARANTY AND AGREES TO ITS TERMS. IN ADDITION, EACH GUARANTOR UNDERSTANDS
THAT THIS GUARANTY IS EFFECTIVE UPON GUARANTOR'S EXECUTION AND DELIVERY OF THIS GUARANTY TO LENDER AND THAT THE GUARANTY WILL
CONTINUE UNTIL TERMINATED IN THE MANNER SET FORTH IN THE SECTION&nbsp;TITLED &quot;DURATION OF GUARANTY&quot;. NO FORMAL ACCEPTANCE
BY LENDER IS NECESSARY TO MAKE THIS GUARANTY EFFECTIVE. THIS GUARANTY IS DATED FEBRUARY 3, 2020.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; color: #262626"><B>GUARANTOR:</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; color: #262626">AMREP SOUTHWEST,&nbsp;INC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 50%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #262626">By:</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #262626">/s/
    Carey Plant</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Carey Plant, Vice President of</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif; color: #262626">AMREP SOUTHWEST,&nbsp;INC.</FONT></TD></TR>
</TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; color: #262626">&nbsp;</P>

<P STYLE="border-top: Black 1pt solid; text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; color: #262626">CORPORATE ACKNOWLEDGMENT</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-left: 0.25in; font: 10pt Times New Roman, Times, Serif; color: #262626; width: 50%">STATE OF NEW MEXICO</TD>
    <TD STYLE="width: 50%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">)</TD>
    <TD>&nbsp;ss</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right; padding-left: 0.25in; color: #262626">)</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-left: 0.25in; text-align: justify">COUNTY OF SANDOVAL</TD>
    <TD>&nbsp;</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; color: #262626">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in"><FONT STYLE="color: #262626">This instrument was
acknowledged before me on February&nbsp;3, 2020, by <B>Carey Plant</B></FONT><B><FONT STYLE="color: #444444">, Vice </FONT><FONT STYLE="color: #262626">President
of AMREP SOUTHWEST,&nbsp;INC., </FONT></B><FONT STYLE="color: #262626">a New Mexico corporation, on behalf of the corporation</FONT><FONT STYLE="color: #444444">.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="3">/s/ Debra J. Torrez</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%">&nbsp;</TD>
    <TD STYLE="border-top: Black 1pt solid; width: 18%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Notary Public</FONT></TD>
    <TD STYLE="border-top: Black 1pt solid; width: 12%">&nbsp;</TD>
    <TD STYLE="border-top: Black 1pt solid; width: 20%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Commission expiration:</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid">3/28/2022</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4in">&nbsp;</P>

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