<SEC-DOCUMENT>0001104659-20-075272.txt : 20200619
<SEC-HEADER>0001104659-20-075272.hdr.sgml : 20200619
<ACCEPTANCE-DATETIME>20200619163304
ACCESSION NUMBER:		0001104659-20-075272
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		7
CONFORMED PERIOD OF REPORT:	20200615
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:		20200619
DATE AS OF CHANGE:		20200619

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:		20976046

	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>tm2022915-1_8k.htm
<DESCRIPTION>FORM 8-K
<TEXT>
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<P STYLE="margin: 0pt"></P>

<!-- Field: Rule-Page --><DIV STYLE="margin-top: 12pt; margin-bottom: 3pt; width: 100%"><DIV STYLE="font-size: 1pt; border-top: Black 2pt solid; border-bottom: Black 1pt solid">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

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

<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>&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;June 15, 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>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <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>
</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 STYLE="vertical-align: top">
    <TD STYLE="width: 33%; 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: 34%; 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: 33%; 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>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <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="text-align: justify; 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>
</TABLE>
<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">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>

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<TR STYLE="vertical-align: top">
    <TD STYLE="border-top: Black 1pt solid; width: 40%; text-align: center; border-left: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">Title
    of each class</FONT></TD>
    <TD STYLE="border-top: Black 1pt solid; width: 20%; text-align: center; border-left: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">Trading
    Symbol(s)</FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; border-top: Black 1pt solid; border-left: Black 1pt solid; width: 40%; 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-bottom: Black 1pt solid; border-top: Black 1pt solid; border-left: Black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">Common
    Stock $.10 par value</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; border-top: Black 1pt solid; border-left: Black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">AXR</FONT></TD>
    <TD STYLE="border: Black 1pt solid; 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="text-align: justify; 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">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right; text-indent: 0.5in">Emerging growth company
 &#9;<FONT STYLE="font-family: Wingdings">&#168;</FONT></P>

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

<P STYLE="text-align: justify; 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. &#9;<FONT STYLE="font-family: Wingdings">&#168;</FONT></P>

<P STYLE="text-align: justify; 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>&nbsp;</B></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"><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="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On June 15, 2020,
Lavender Fields, LLC (&ldquo;LF&rdquo;), a subsidiary of AMREP Corporation, acquired approximately 28 acres in Bernalillo County,
New Mexico comprising the Meso AM subdivision, which is planned for 82 residential lots.</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">A.</TD><TD STYLE="text-align: justify"><U>Acquisition Financing</U>. The
                                         acquisition included $1,838,333 of deferred purchase price, of which $919,167 is payable
                                         on or before June 15, 2021 and $919,166 is payable on or before June 15, 2022. The deferred
                                         purchase price is evidenced by a non-interest bearing Promissory Note, dated June 15,
                                         2020, and is secured by a Mortgage, Security Agreement and Fixture Filing with respect
                                         to the acquired property. The lien of the mortgage on any portion of the property will
                                         be released as to such property upon payment of that percentage of the then unpaid principal
                                         balance of the Promissory Note equal to the number of acres of land within the property
                                         being released divided by the number of acres of land within the property then remaining
                                         encumbered by the mortgage. Any prepayment shall be credited toward the next payment
                                         due under the Promissory Note.</TD></TR></TABLE>

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

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in">LF 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: LF&rsquo;s failure to make principal or other payments when due; the failure of LF to observe or perform their covenants
under the loan documentation; and the representations and warranties of LF being false. Upon the occurrence and during the continuance
of an event of default, the outstanding principal amount and all other obligations under the loan may be declared immediately
due and payable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in">&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">B.</TD><TD STYLE="text-align: justify"><U>Development Financing</U>. On
                                         June 19, 2020, LF entered into a Development Loan Agreement with BOKF. The Development
                                         Loan Agreement is evidenced by a Non-Revolving Line of Credit Promissory Note, dated
                                         June 19, 2020, and is secured by a Mortgage, Security Agreement and Financing Statement,
                                         between LF and BOKF with respect to the acquired property. Pursuant to a Guaranty Agreement,
                                         dated June 19, 2020, entered into by AMREP Southwest Inc. (&ldquo;ASW&rdquo;), a subsidiary
                                         of AMREP Corporation, in favor of BOKF, ASW has guaranteed LF&rsquo;s obligations under
                                         each of the above agreements.</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: 1in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><U>Initial
                                         Available Principal</U>: BOKF agrees to lend up to $3,750,000 to LF on a non-revolving
                                         line of credit basis to partially fund the development of the acquired property.</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: 1in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><U>Repayments</U>:
                                         LF is required to make periodic principal repayments of borrowed funds not previously
                                         repaid as follows: $657,500 on or before March 19, 2022; $394,500 on or before June 19,
                                         2022; $394,500 on or before September 19, 2022; $394,500 on or before December 19, 2022;
                                         $394,500 on or before March 19, 2023; $394,500 on or before June 19, 2023; $394,500 on
                                         or before September 19, 2023; $394,500 on or before December 19, 2023; and $331,000 on
                                         or before March 19, 2024. The outstanding principal amount of the loan may be prepaid
                                         at any time without penalty. On the maturity date, LF will be required to make a final
                                         payment of all outstanding principal and accrued and unpaid interest.</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: 1in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><U>Maturity
                                         Date</U>: The loan is scheduled to mature in June 2024. </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-top: 0pt; margin-bottom: 0pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&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: 1in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><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 annual rate equal to the London Interbank Offered Rate for a thirty-day interest
                                         period plus a spread of 3.0%, adjusted monthly, subject to a minimum interest rate of
                                         3.75%. </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: 1in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><U>Lot
                                         Release Price</U>: BOKF is required to release the lien of its mortgage on any lot upon
                                         LF making a principal payment of $65,750. </FONT></TD></TR></TABLE>

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

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in">LF 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: LF&rsquo;s failure to make principal, interest or other payments when due; the failure of LF or ASW to
observe or perform their respective covenants under the loan documentation; the representations and warranties of LF or ASW being
false;&nbsp;the insolvency or bankruptcy of LF or ASW; and&nbsp;the failure of ASW to maintain a tangible net worth of at least
$32 million. Upon the occurrence and during the continuance of an event of default, BOKF may declare the outstanding principal
amount and all other obligations under the loan immediately due and payable. LF incurred certain customary costs and expenses
and paid certain fees to BOKF in connection with the loan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in">&nbsp;</P>

<P STYLE="text-align: justify; 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 Promissory Note and Mortgage, Security Agreement and Fixture Filing from the Seller Financing and the Development Loan
Agreement, Non-Revolving Line of Credit Promissory Note, Mortgage, Security Agreement and Financing Statement and Guaranty Agreement
from the Development Financing are attached hereto as Exhibits 10.1 through 10.6 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="text-align: justify; 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="text-align: justify; 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="text-align: justify; 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; border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center">Exhibit
    Number</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Description</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; width: 12%; text-align: center"><A HREF="tm2022915d1_ex10-1.htm" STYLE="-sec-extract: exhibit">10.1</A></TD><TD STYLE="width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 86%; font-size: 10pt; text-align: left"><A HREF="tm2022915d1_ex10-1.htm" STYLE="-sec-extract: exhibit">Promissory Note, dated as of June 15, 2020, between MesoAM LLC and
    Lavender Fields, LLC.</A></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&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="tm2022915d1_ex10-2.htm" STYLE="-sec-extract: exhibit">10.2</A></TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left"><A HREF="tm2022915d1_ex10-2.htm" STYLE="-sec-extract: exhibit">Mortgage, Security Agreement and Fixture Filing, dated as of June 15, 2020,
    by Lavender Fields, LLC.</A></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&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="tm2022915d1_ex10-3.htm" STYLE="-sec-extract: exhibit">10.3</A></TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: justify"><A HREF="tm2022915d1_ex10-3.htm" STYLE="-sec-extract: exhibit">Development Loan Agreement, dated as of June 19, 2020, between BOKF, NA dba
    Bank of Albuquerque and Lavender Fields, LLC.</A></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&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="tm2022915d1_ex10-4.htm" STYLE="-sec-extract: exhibit">10.4</A></TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: justify"><A HREF="tm2022915d1_ex10-4.htm" STYLE="-sec-extract: exhibit">Non-Revolving Line of Credit Promissory Note, dated June 19, 2020, by Lavender
    Fields, LLC in favor of BOKF, NA dba Bank of Albuquerque.</A></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&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="tm2022915d1_ex10-5.htm" STYLE="-sec-extract: exhibit">10.5</A></TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: justify"><A HREF="tm2022915d1_ex10-5.htm" STYLE="-sec-extract: exhibit">Mortgage, Security Agreement and Financing Statement, dated as of June 19, 2020,
    between BOKF, NA dba Bank of Albuquerque and Lavender Fields, LLC.</A></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&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="tm2022915d1_ex10-6.htm" STYLE="-sec-extract: exhibit">10.6</A></TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: justify"><A HREF="tm2022915d1_ex10-6.htm" STYLE="-sec-extract: exhibit">Guaranty Agreement, dated as of June 19, 2020, made by AMREP Southwest Inc.
    for the benefit of BOKF, NA dba Bank of Albuquerque.</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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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></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">SIGNATURES</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; 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 CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt">AMREP Corporation</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font: 10pt Times New Roman, Times, Serif"></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 50%"><FONT STYLE="font-size: 10pt">Date: June 19, 2020 </FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 3%">By:</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; width: 47%">/s/ Christopher V. Vitale</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt">Name: Christopher V. Vitale</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt">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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<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"><B><U>EXHIBIT INDEX&nbsp;</U></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"></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; border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center">Exhibit
    Number</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Description</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; width: 12%; text-align: center"><A HREF="tm2022915d1_ex10-1.htm" STYLE="-sec-extract: exhibit">10.1</A></TD><TD STYLE="width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 86%; font-size: 10pt; text-align: left"><A HREF="tm2022915d1_ex10-1.htm" STYLE="-sec-extract: exhibit">Promissory Note, dated as of June 15, 2020, between MesoAM LLC and
    Lavender Fields, LLC.</A></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&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="tm2022915d1_ex10-2.htm" STYLE="-sec-extract: exhibit">10.2</A></TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left"><A HREF="tm2022915d1_ex10-2.htm" STYLE="-sec-extract: exhibit">Mortgage, Security Agreement and Fixture Filing, dated as of June 15, 2020,
    by Lavender Fields, LLC.</A></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&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="tm2022915d1_ex10-3.htm" STYLE="-sec-extract: exhibit">10.3</A></TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: justify"><A HREF="tm2022915d1_ex10-3.htm" STYLE="-sec-extract: exhibit">Development Loan Agreement, dated as of June 19, 2020, between BOKF, NA dba
    Bank of Albuquerque and Lavender Fields, LLC.</A></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&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="tm2022915d1_ex10-4.htm" STYLE="-sec-extract: exhibit">10.4</A></TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: justify"><A HREF="tm2022915d1_ex10-4.htm" STYLE="-sec-extract: exhibit">Non-Revolving Line of Credit Promissory Note, dated June 19, 2020, by Lavender
    Fields, LLC in favor of BOKF, NA dba Bank of Albuquerque.</A></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&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="tm2022915d1_ex10-5.htm" STYLE="-sec-extract: exhibit">10.5</A></TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: justify"><A HREF="tm2022915d1_ex10-5.htm" STYLE="-sec-extract: exhibit">Mortgage, Security Agreement and Financing Statement, dated as of June 19, 2020,
    between BOKF, NA dba Bank of Albuquerque and Lavender Fields, LLC.</A></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&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="tm2022915d1_ex10-6.htm" STYLE="-sec-extract: exhibit">10.6</A></TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: justify"><A HREF="tm2022915d1_ex10-6.htm" STYLE="-sec-extract: exhibit">Guaranty Agreement, dated as of June 19, 2020, made by AMREP Southwest Inc.
    for the benefit of BOKF, NA dba Bank of Albuquerque.</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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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>tm2022915d1_ex10-1.htm
<DESCRIPTION>EXHIBIT 10.1
<TEXT>
<HTML>
<HEAD>
     <TITLE></TITLE>
</HEAD>
<BODY STYLE="font: 10pt Times New Roman, Times, Serif">

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right; margin: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Exhibit
10.1</B></FONT></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>$1,838,333.00</B></FONT></TD><TD STYLE="width: 0.25in; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>June
                                         15, 2020</B></FONT></TD>
</TR>     <TR STYLE="vertical-align: top; text-align: justify">
<TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Albuquerque,
                                         New Mexico</B></FONT></TD></TR>
</TABLE>

<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-indent: 4in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-weight: normal"><U>PROMISSORY
NOTE</U></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">For value received,
LAVENDER FIELDS, LLC, a New Mexico limited liability company, whose address is 333 Rio Rancho Drive, Suite 202, Rio Rancho, New
Mexico 87124 (hereinafter &ldquo;Maker&rdquo;), promises to pay to the order of MESOAM LLC, a New Mexico limited liability company,
whose address is P. O. Box 91808, Albuquerque, New Mexico 87199-1808 (together with its successors and assigns, hereinafter &ldquo;Payee&rdquo;),
the sum of One Million Eight Hundred Thirty-eight Thousand Three Hundred Thirty Three and No/100ths Dollars ($1,838,333.00) in
the following manner:</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.5in; text-align: justify; text-indent: 0in">One (1) payment in
the amount of Nine Hundred Nineteen Thousand One Hundred Sixty-seven and No/100 Dollars ($919,167.00) on or before June 15, 2021,
and one (1) payment in the amount of Nine Hundred Nineteen Thousand One Hundred Sixty-six and No/100 Dollars ($919,166.00) on or
before June 15, 2022, which payments shall not include any interest.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Except in the event
that the Default Rate (as defined below) is triggered, this Note shall not bear any interest whatsoever. When timely or early installments
are paid, they shall be applied wholly to the unpaid principal amount. This Note may be prepaid in full or in part at any time
without penalty.</P>

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

<P STYLE="font: 10pt Courier; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-style: normal; font-weight: normal">Payment
of this Note is secured by a Mortgage of even date given by Maker, as mortgagor, to Payee, as mortgagee, encumbering certain real
and personal property located in the County of Bernalillo, State of New Mexico (the &ldquo;Mortgage&rdquo;). Upon the occurrence
of any of the following events, Payee may, at its sole option, declare the entire unpaid principal balance of this Note and all
unpaid, accrued interest thereof, immediately due and payable:</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Failure
of Maker to make any monthly installment payment provided for in this Note when due and payable and such failure continues for
fifteen (15) days after written notice thereof to Maker; or</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;An
occurrence of any other &ldquo;Event of Default&rdquo; as defined in the Mortgage.</P>

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

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

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

<P STYLE="text-indent: 0.5in; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The failure of Payee to exercise the
foregoing option or any other right or remedy available hereunder or under the Mortgage, at law or in equity, shall not
constitute a waiver of, or impair, the right to exercise said option or any other right or remedy in the event of any
continuing or subsequent such default. Upon the occurrence of any event enumerated under paragraphs (a) or (b), above,
interest on the then outstanding principal balance of this Note will accrue thereafter at the &ldquo;Default Rate&rdquo; of
twelve percent (12%) per annum. Maker hereby waives presentment, protest, demand, notice of nonpayment, notice of dishonor,
notice of protest, and all other demands and notices with respect to this Note, and hereby agrees that no extension of time
for payment of this Note, either principal or interest, and no waiver of any existing default and no indulgence of any sort
shall operate to release, discharge, modify, change or affect the original liability of Maker under this Note. In the event
either party hereto or any subsequent party entitled to enforce its rights under this Note takes legal action to enforce this
Note, the prevailing party in such legal action will be entitled to recover its reasonable attorneys&rsquo; fees and other
costs of enforcement.</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt">Lavender Fields, LLC,</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt">a New Mexico limited liability
    company</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 50%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 2%"><FONT STYLE="font-size: 10pt">By:</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; width: 48%">&nbsp;&nbsp;<FONT STYLE="font-size: 10pt">/s/ Carey A. Plant</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-left: 0.25in"><FONT STYLE="font-size: 10pt">Name: Carey A. Plant</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-left: 0.25in"><FONT STYLE="font-size: 10pt">Its: Vice President</FONT></TD></TR>
</TABLE>

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

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<FONT STYLE="font-size: 10pt">of 2</FONT></P>

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<DOCUMENT>
<TYPE>EX-10.2
<SEQUENCE>3
<FILENAME>tm2022915d1_ex10-2.htm
<DESCRIPTION>EXHIBIT 10.2
<TEXT>

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<P STYLE="margin: 0pt"></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: right"><B>Exhibit 10.2</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>MORTGAGE, SECURITY AGREEMENT AND FIXTURE
FILING</B></P>

<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: justify">STATE OF NEW MEXICO</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">THIS SECURITY INSTRUMENT COVERS GOODS WHICH
ARE OR ARE TO BECOME FIXTURES, IS EFFECTIVE AS A FINANCING STATEMENT FILED AS A FIXTURE FILING AND IS TO BE FILED IN THE REAL ESTATE
RECORDS.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">THIS MORTGAGE, SECURITY
AGREEMENT AND FIXTURE FILING (this &#8220;<U>Security Instrument</U>&#8221;) is made and entered into as of June 15, 2020 (the
 &#8220;<U>Effective Date</U>&#8221;), by and between LAVENDER FIELDS<FONT STYLE="font-variant: small-caps">, LLC</FONT>, a New
Mexico limited liability company with an address of 333 Rio Rancho Drive, Suite 202, Rio Rancho, New Mexico 87124 (&#8220;<U>Grantor</U>&#8221;),
and MESOAM LLC, a New Mexico limited liability company, whose address is P. O. Box 91808, Albuquerque, New Mexico 87199-1808 (together
with its successors and assigns, &#8220;<U>Grantee</U>&#8221;).</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">WHEREAS, Grantor is
indebted to Grantee and as evidence thereof has made, executed, and delivered to Grantee that certain Promissory Note of even date
herewith, executed by Grantor in favor of Grantee in the principal amount of $1,838,333.00 (the &#8220;<U>Note</U>&#8221;) (Grantor&#8217;s
obligations under the Note are referred to herein as the &#8220;<U>Secured Obligations</U>&#8221;); and</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">WHEREAS, Grantor desires
to secure the timely payment and fulfillment of all terms of the Secured Obligations by executing this Security Instrument.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">W I T N E S S E T H:</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">NOW, THEREFORE, in
consideration of the foregoing recitals and for other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, Grantor irrevocably grants, mortgages, warrants, bargains, sells, pledges, remises, aliens, assigns, conveys,
transfers and sets over to Grantee, WITH MORTGAGE COVENANTS and upon the statutory mortgage condition, and with all other statutory
rights and covenants and subject to the further terms of this Security Instrument, all of Grantor&#8217; right, title and interest
in and to the following:</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
that tract or parcel of land and other real property interests in Bernalillo County, New Mexico more particularly described
in <FONT STYLE="text-transform: uppercase"><B><U>Exhibit A</U></B></FONT> attached hereto and made a part hereof, together
with all of Grantor&#8217; right, title and interest in, to and under all rights of way, easements, privileges and
appurtenances relating or appertaining to such real estate and all water and water rights, sewer and sewer rights, ditches
and ditch rights, minerals, oil and gas rights, royalties, lease or leasehold interests owned by Grantor, now or hereafter
used in connection with or appurtenant to or related to such real estate, and all interests of Grantor now owned or hereafter
acquired in and to streets, roads, alleys and public places, now or hereafter used in connection with such real estate, and
all existing or future licenses, contracts, permits and agreements required or used in connection with the ownership,
operation or maintenance of such real estate, and any and all insurance proceeds, and any and all awards, including interest,
previously or hereafter made to Grantor for taking by eminent domain or in lieu thereof (collectively, the
 &#8220;<U>Land</U>&#8221;); and</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
improvements of every kind and description now or hereafter erected or placed on the Land (the &#8220;<U>Improvements</U>&#8221;)
and all materials intended for construction, reconstruction, alteration and repair of such Improvements now or hereafter erected
thereon, all of which materials shall be deemed to be included within the Premises (as hereinafter defined) immediately upon the
delivery thereof to the Land, and all &#8220;equipment&#8221;, &#8220;goods&#8221; and &#8220;fixtures&#8221; as such terms are
defined in the Uniform Commercial Code as adopted and in effect in the state in which the Premises is located, as amended from
time to time (the &#8220;<U>Uniform Commercial Code</U>&#8221;); and</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
of Grantor&#8217;s right, title and interest in, to and under all other collateral identified on <B><U>EXHIBIT B</U></B> attached
hereto and made a part hereof (the &#8220;Other Collateral&#8221;) (hereinafter, the Land, Improvements and Other Collateral together
with all proceeds thereof, being collectively referred to as the &#8220;<U>Premises</U>&#8221;).</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">TO HAVE AND HOLD the
same, together with all privileges, hereditaments, easements and appurtenances thereunto belonging, to Grantee as security for
the Secured Obligations.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As additional security
for the Secured Obligations, Grantor hereby transfers and assigns to Grantee and grants to Grantee, subject to any rights and interest
assigned to a prior lien holder, a security interest under the Uniform Commercial Code (as defined herein) in all right, title
and interest of Grantor in and to all of the following:</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Any and all construction
contracts, architects&#8217; contracts, technical services agreements, and other contracts, licenses and permits now or hereafter
affecting the Premises, and all plans, specifications, designs, drawings, permits, licenses (including, without limitation, permits,
licenses and rights obtained from any governmental, quasi-governmental or private person or entity whatsoever concerning ownership,
operation, use or occupancy of the Premises), contract rights (including, without limitation, any contract with any architect or
engineer or with any other provider of goods or services for or in connection with any construction, repair or other work upon
the Premises, and any contract for management or any other provision of service in connection with the Premises), approvals, actions,
refunds of real estate taxes and assessments and any other governmental impositions related to the Premises, approvals, actions
and causes of action that now or hereafter relate to, are derived from or are used in connection with the Premises, or the use,
operation, maintenance, occupancy or enjoyment thereof or the conduct of any business or activities thereon (all of the foregoing
being the &#8220;<U>Intangible Personalty</U>&#8221;) or any part thereof, and Grantor agrees to execute and deliver to Grantee
such additional instruments, in form and substance reasonably satisfactory to Grantee, as may hereafter be reasonably requested
by Grantee to evidence and confirm said assignment; provided, however, that acceptance of any such assignment shall not be construed
as a consent by Grantee to any lease, rental agreement, management contract, franchise agreement, construction contract, technical
services agreement or other contract, license or permit, or to impose upon Grantee any obligation with respect thereto.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">All the Improvements
which comprises a part of the Premises shall, as far as permitted by law, be deemed to be &#8220;fixtures&#8221; affixed to the
aforesaid Land and conveyed therewith. As to the Intangible Personalty and the Other Collateral, this Security Instrument shall
be considered to be a security agreement which creates a security interest in such items for the benefit of Grantee. In that regard,
Grantor grants to Grantee all of the rights and remedies of a secured party under the Uniform Commercial Code and grants to Grantee
a security interest in all of the Tangible Personalty, the Intangible Personalty and the Other Collateral.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">Grantor and Grantee covenant,
represent and agree as follows:</P>

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

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

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

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

<P STYLE="text-indent: 0.5in; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">1.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Secured Obligations</U>.
This Security Instrument, with a final maturity date of June 15, 2022 (the &#8220;<U>Maturity Date</U>&#8221;), secures the prompt
payment, performance and observance of all Secured Obligations, whether now existing or hereafter arising or incurred, due or to
become due, direct or indirect, absolute or contingent, and howsoever evidenced, held or acquired.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><U>1.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Future
Advances</U>. Grantee may advance or loan additional sums (herein &#8220;Future Advances&#8221;) to the Borrower. This Security
Instrument shall secure not only existing indebtedness, but also such Future Advances, up to a maximum amount of $3,000,000.00,
with interest thereon as provided in the Note, whether such advances are obligatory or to be made at the option of Grantee or otherwise,
to the same extent as if such Future Advances were made on the date of execution of this Security Instrument.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><U>ARTICLE II</U><BR>
Grantor&#8217; Covenants, Representations and Agreements</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; text-align: justify">2.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Title to Premises</U>. To
the best of Grantor&#8217;s knowledge, (i) Grantor is the fee simple owner of the Land and has the right to convey the same, (ii)
that as of the date hereof title to the Land is free and clear of all liens, encumbrances and other matters except for: (i) any
mortgage or lien allowed pursuant to Article VI hereinbelow; and (ii) the matters shown on the title insurance policy accepted
by Grantee in connection with this Security Instrument and such other matters as are expressly permitted by Grantee (the &#8220;<U>Permitted
Encumbrances</U>&#8221;).</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">2.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Taxes and Other
Charges</U>. Grantor will pay prior to delinquency all taxes, general and special assessments and any other charges which by nonpayment
become a lien or encumbrance on the Land (and Grantor, upon request by Grantee, will submit to Grantee receipts evidencing said
payments).</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">2.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Reimbursement</U>.
Grantor agrees that if it shall fail to pay on or before the date that the same become delinquent any tax, assessment or
charge levied or assessed against the Premises or any utility charge, whether public or private, or any insurance premium or
if it shall fail to procure the insurance coverage required hereunder, or if it shall fail to pay any other charge or fee
described herein, then Grantee, at its option, may pay or procure the same and will give Grantor prompt notice of any such
expenditures. Grantor will reimburse Grantee upon demand for any sums of money paid by Grantee pursuant to this Section,
together with interest on each such payment at the applicable default rate of interest set forth in the Note (interest shall
only be due if payment is not made to Grantee within fifteen (15) days after notice of payment from Grantee to Grantor), and
all such sums and interest thereon shall be secured hereby.</P>

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

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

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

<P STYLE="text-indent: 0.5in; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">2.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Additional Documents;
Further Assurances; After-Acquired Property</U>. At any time, and from time to time, upon request by Grantee, Grantor will make,
execute and deliver or cause to be made, executed and delivered, to Grantee and, where appropriate, to cause to be recorded and/or
filed and from time to time thereafter to be rerecorded and/or refiled at such time and in such offices and places as shall reasonably
be deemed desirable by Grantee any and all such other and further trust deeds, mortgages, instruments of further assurance, certificates
and other documents as may, in the reasonable opinion of Grantee, be necessary or desirable in order to effectuate, complete,
maintain, enlarge, or perfect, or to continue and preserve the obligations of Grantor under the Note and this Security Instrument,
and the liens and security interests of this Security Instrument upon all of the Premises, whether now owned or hereafter acquired
by Grantor. The lien hereof will automatically attach, without further act, to all after acquired property attached to and/or
used in the operation of the Premises or any part thereof. Grantor hereby authorizes Grantee to prepare and file such financing
statements, fixture filings, renewals or continuations thereof, amendments and supplements thereto and other instruments as Grantee
may from time to time deem necessary or appropriate in order to perfect and maintain the security interests granted in this Security
Instrument and the documents executed in connection therewith in accordance with the Uniform Commercial Code. Grantor hereby irrevocably
makes, constitutes and appoints Grantee as the true and lawful attorney of Grantor to take any or all of the foregoing actions
in the name of Grantor.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">2.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Sale, Transfer
or Encumbrance</U>. Except as expressly allowed in this Security Instrument, Grantor will not sell, transfer, convey, mortgage,
encumber or otherwise dispose of the Premises or the Intangible Personalty or any part thereof or any interest therein or engage
in subordinate financing with respect thereto during the term of this Security Instrument without the prior express written consent
of Grantee. Except as expressly allowed in this Security Instrument, Grantor will not sell, transfer, convey, mortgage, encumber
or otherwise dispose of any of the Improvements.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">2.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Fees and Expenses</U>. In
any action to enforce this Security Instrument, the losing party will promptly pay to the prevailing party upon demand any and
all reasonable costs and expenses of the prevailing party, including but not limited to attorney fees and court costs, (a) as required
herein and under the Note and (b) as necessary to protect the Premises or the Intangible Personalty or to exercise any rights or
remedies under this Security Instrument or with respect to the Premises or the Intangible Personalty. If Grantee is the prevailing
party in any such legal action, all of the foregoing costs and expenses shall be Secured Obligations.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">2.7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Intentionally Omitted.]</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">2.8&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Maintenance
of Premises</U>. Grantor will abstain from and will not permit the commission of waste in or about the Premises and will
maintain, or cause to be maintained (subject to reconstruction periods after the occurrence of an act of God), the Premises
in good condition and repair, reasonable wear and tear excepted.</P>

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

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">2.9&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Insurance;
Casualty</U>. Grantor shall maintain insurance coverage and policies for the Premises in the amounts of $2,000,000 of general liability
coverage which shall name Grantee as an additional insured. Grantor assigns to Grantee all proceeds to which Grantor may be entitled
under such insurance policies and such proceeds shall be applied to the Secured Obligations or disbursed in accordance with the
terms of this Security Instrument.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">2.10&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Eminent Domain</U>. Subject
to the rights of any prior lien holder and any subordination that may be agreed to by Grantee, Grantor assigns to Grantee any proceeds
or awards which may become due by reason of any condemnation or other taking for public use of the whole or any part of the Premises
or any rights appurtenant thereto to which Grantor is entitled and such proceeds or awards shall be applied to the Secured Obligations
or disbursed in accordance with the terms of this Security Instrument. Grantor agrees to execute such further assignments and agreements
as may be reasonably required by Grantee to assure the effectiveness of this Section. In the event any Governmental Authority shall
commence any proceedings to condemn or otherwise take pursuant to the power of eminent domain a material portion of the Premises,
Grantor shall promptly notify Grantee of such commencement of proceedings (for demolition, condemnation or other taking).</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">2.11&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Releases and Waivers</U>.
Grantor agrees that no release by Grantee of any portion of the Premises or the Intangible Personalty, no subordination of any
lien, no forbearance on the part of Grantee to collect on the Secured Obligations, or any part thereof, no waiver of any right
granted or remedy available to Grantee and no action taken or not taken by Grantee shall in any way have the effect of releasing
Grantor from full responsibility to Grantee for the complete discharge of each and every of Grantor&#8217; obligations hereunder.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">2.12&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Authorizations;
Restrictions</U>. Grantor will use commercially reasonable efforts to keep in full force and effect the existing zoning permits
and approvals allowing the Property to be used as a single-family subdivision development together with any further zoning or
platting approvals that the Grantor may obtain during its development of the Property (the &#8220;<U>Authorizations</U>&#8221;).</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">2.13&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Intentionally Omitted.]</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">2.14&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Compliance
with Law</U>. Except to the extent of any condition which existed prior to the date of this Security Instrument, Grantor will
comply with all applicable statutes, regulations and orders of, and all applicable restrictions imposed by, all governmental authorities
in respect of the ownership of all or any portion of the Premises (including applicable statutes, regulations, orders and restrictions
relating to environmental standards and controls).</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">2.14.1&nbsp;&nbsp;&nbsp;&nbsp;<U>Environmental
Compliance</U>.</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; text-indent: 1in">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Representations.
The following representations are made to Grantee:</P>

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




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Use
of Premises. Current or future operations on or about the Premises may include the lawfully authorized and undertaken generation,
emission, discharge, manufacture, use, handling or offsite transportation of Hazardous Substances (herein defined), pollutants,
wastewater, contaminants, air emissions, toxic air pollutants, hazardous air pollutants, or toxic substances (collectively &#8220;<U>Environmental
Materials</U>&#8221;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Hazardous
Substances. The words &#8220;<U>Hazardous Substances</U>&#8221; mean any and all hazardous or toxic substances, materials or waste
as defined by or listed under the Environmental Laws. The term &#8220;Hazardous Substances&#8221; also includes, without limitation,
petroleum and petroleum by-products or any fraction thereof and asbestos.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(3)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Permits,
Authorizations and Approvals. Grantor shall immediately notify Grantee of any notice or allegation of noncompliance or violation
with any Environmental Law. The words &#8220;<U>Environmental Laws</U>&#8221; mean the Comprehensive Environmental Response, Compensation,
and Liability Act of 1980, as amended, 42 U.S.C. Section 9601, et seq. (&#8220;CERCLA&#8221;), the Superfund Amendments and Reauthorization
Act of 1986, Pub. L. No. 99-499 (&#8220;SARA&#8221;), the Hazardous Materials Transportation Act, 49 U.S.C, Section 1801, et seq.,
the Resource Conservation and Recovery Act. 42 U.S.C. Section 6901, et seq., the Federal Insecticide, Fungicide and Rodenticide
Act, the New Mexico Ground Water Protection Act, the New Mexico Solid Waste Act, the New Mexico Hazardous Waste Act, and the New
Mexico Quality Control Act, and any rules or regulations adopted pursuant thereto.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Affirmative
Covenants. Grantor covenants with Grantee as follows:</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Use
of Premises. Except as allowed by the applicable permits, authorizations and approvals and Section 2.14.1(a) above, Grantor will
not use and does not intend to use the Premises to generate, manufacture, refine. transport, treat, store, handle or dispose of
any Environmental Materials, PCBs, lead paint or asbestos.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Compliance
with Environmental Laws. Except to the extent of any condition which existed prior to the date of this Security Instrument, Grantor
shall cause the Premises and the operations conducted on it to comply with any and all Environmental Laws and orders of any governmental
authorities having jurisdiction under any Environmental Laws and shall obtain, keep in effect and comply with all governmental
permits and authorizations required by Environmental Laws with respect to such operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notices.
Grantor shall immediately notify Grantee upon becoming aware of any of the following:</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(1) Any spill, release
or disposal of a Hazardous Substance on any of the Premises, or in connection with any of its operations if such spill, release
or disposal must be reported to any governmental authority under applicable Environmental Laws.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(2) Any contamination,
or imminent threat of contamination, of the Premises by Hazardous Substances, or any violation of Environmental Laws in connection
with the Premises or the operations conducted on the Premises.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(3) Any order, notice
of violation, fine or penalty or other similar action by any governmental authority relating to Hazardous Substances or Environmental
Laws and the Premises or the operations conducted on the Premises.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(4) Any judicial or
administrative investigation or proceeding relating to Hazardous Substances or Environmental Laws and to the Premises or the operations
conducted on the Premises.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(5) Any matters relating
to Hazardous Substances or Environmental Laws that would give a reasonably prudent Grantee cause to be concerned that the value
of Grantee&#8217;s security interest in the Premises may be reduced or threatened or that may impair, or threaten to impair, Grantor&#8217;
ability to perform any of its obligations under this Security Instrument when such performance is due.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;GRANTOR&#8217;
WAIVER AND INDEMNIFICATION. Notwithstanding anything to the contrary contained in this Security Instrument, including but not
limited to this Section 2.14.1: (i) Grantor does not indemnify or agree to defend Grantee for any environmental condition
which existed prior to the date of recording of this document regardless of when such condition is discovered or required to
be remediated; and (ii) Grantor shall not be liable for any damages, remediation or claims resulting from any environmental
condition which existed prior to the date of recording of this document regardless of when such condition was discovered or
required to be remediated. Subject to the preceding sentence, Grantor hereby agrees to and shall indemnify, defend, and hold
harmless Grantee and Grantee&#8217;s officers, directors, employees and agents, and Grantee&#8217;s successors and assigns
and their officers, directors, employees and agents from and against any and all claims, demands, losses, liabilities, costs,
fines, penalties and expenses (including without limitation attorneys&#8217; fees at trial and on any appeal or petition for
review, consultants&#8217; fees, remedial action costs, natural resource damages and diminution in value) arising on or after
the Effective Date: (a) out of or relating to any investigatory or remedial action involving the Premises, the operations
conducted on the Premises, or any other operations of Grantor or any occupant and required by Environmental Laws or by orders
of any governmental authority having jurisdiction under any Environmental Laws, including without limitation any natural
resource damages, or (b) out of or related to any noncompliance with or violation of Environmental Laws or any applicable
permits or approvals, or (c) on account of injury to Grantee or any person whatsoever or damage to any property arising out
of, in connection with, or in any way relating to (i) the breach of any covenant, representation or warranty contained in
Section 2.14.1 of this Security Instrument, (ii) the violation of any Environmental Laws, permits, authorizations or
approvals, (iii) the use, treatment, storage, generation, manufacture, transport, release, spill, disposal or other handling
of Environmental Materials on the Premises, or (iv) the contamination of any of the Premises by, or the presence, release or
threatened release of, Environmental Materials by any means whatsoever (explicitly including without limitation any presently
existing contamination of the Premises, whether or not previously disclosed to Grantee), or (d) out of or relating to the
removal or remediation of Environmental Materials or equipment or improvements containing or formerly containing
Environmental Materials, including without limitation the reasonable costs of building or premises repair, or temporal or
spatial interruption or discontinuation of use or occupancy of the Premises. Grantor&#8217; obligations under this section
shall survive the termination of this Security Instrument and as set forth below in the Survival section.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payment:
Full Recourse to Grantor. Grantee shall give Grantor timely written notice of any indemnity obligation claim arising under Section
2.14.1. So long as Grantor is providing a defense and indemnity to Grantee, Grantee shall not incur any further charges with regard
to such claim. During any period in which Grantor is failing to fulfill its obligations under Section 2.14.1(d) of this Security
Instrument, Grantee shall have full recourse to Grantor for Grantee&#8217;s obligations under Section 2.14.1(d) of this Security
Instrument as they become due to Grantee. Such liabilities, losses, claims, damages and expenses shall be reimbursable to Grantee
as Grantee&#8217;s obligations to make payments with respect thereto are incurred, without any requirement of waiting for the ultimate
outcome of any litigation, claim or other proceeding, and Grantor shall pay such liability, losses, claims, damages and expenses
to Grantee as so incurred within thirty (30) days after written notice from Grantee. Grantee&#8217;s notice shall contain a brief
itemization of the amounts incurred to the date of such notice. In addition to any remedy available for failure to pay periodically
such amounts, such amounts shall thereafter bear interest at the Note default rate.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Survival.
The covenants contained in this Section 2.14.1 shall survive for a period of five (5) years after the earliest to occur of the
following events: (A) the repayment of the Secured Obligations, (B) any foreclosure of the Premises, and (C) any delivery of a
deed in lieu of foreclosure to Grantee or any successor of Grantee. The covenants contained in this Section 2.14.1 shall be for
the benefit of Grantee and any successor to Grantee, as holder of any security interest in the Premises or the Secured Obligations
secured thereby, or as owner of the Premises following foreclosure or the delivery of a deed in lieu of foreclosure.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0.5in; margin: 0pt 0; text-align: justify">2.15&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Inspection</U>. Grantor
will permit Grantee, or its authorized agents, at all reasonable times and with reasonable prior notice to enter and pass through
or over the Premises for the purpose of inspecting same.</P>

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

<P STYLE="text-indent: 0.5in; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">2.16&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Security Agreement</U>.
This Security Instrument shall be construed as a security agreement under the Uniform Commercial Code with respect to the security
interests granted herein. Grantor warrants that the name and address of the &#8220;Debtor&#8221; (which is Grantor), are as set
forth in the introductory paragraph of this Security Instrument; and a statement indicating the types, or describing the items,
of collateral is set forth hereinabove. Grantor warrants that Grantor&#8217; exact legal names are correctly set forth in the preamble
of this Security Instrument. Grantor will not, without providing thirty (30) days prior written notice to Grantee and without filing
such amendments to any previously filed financing statements as Grantee may require, change its registered legal name, be party
to a merger, consolidation or other change in structure or use any trade name other than the trade names set forth for Grantor
in the Security Agreement, or take any other action which would cause any financing statement to become misleading or lose its
perfected status or which would necessitate the amendment, correction or re-filing of any financing statement.</P>

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

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

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




<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"><U>ARTICLE III<BR>
</U>Event of Default</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">3.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;An
event of default (&#8220;<U>Event of Default</U>&#8221;) shall exist under the terms of this Security Instrument upon the occurrence
of an Event of Default under the terms of the Note, or the failure of Grantor to perform any covenant, agreement or obligation
under this Security Instrument which has not been cured within fifteen (15) days after written notice of default to Grantor with
right to cure.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><U>ARTICLE IV</U><BR>
Acceleration; Foreclosure</P>

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

<P STYLE="text-indent: 0.5in; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">4.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Acceleration of Secured Obligations</U>.
Upon the occurrence of an Event of Default, the entire balance of all or any portion of the Secured Obligations, including all
accrued interest, shall, at the option of Grantee, become immediately due and payable.</P>

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

<P STYLE="text-indent: 0.5in; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">4.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Foreclosure</U>.
Upon the occurrence of an Event of Default, Grantee may foreclose the lien of this Security Instrument by judicial or nonjudicial
proceeding in a manner permitted by applicable law. <FONT STYLE="text-transform: uppercase"><B><U>If the Collateral or any part
thereof is sold at a foreclosure sale following a court-ordered judicial foreclosure, the redemption period shall be one month
instead of nine months</U></B></FONT>, as provided in NMSA 1978, &sect; 39-5-19 NMSA. .</P>

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

<P STYLE="text-indent: 0.5in; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">4.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Proceeds of
Sale</U>. Following a foreclosure sale, the proceeds of such sale shall, subject to applicable law, be applied in accordance with
the Note and this Security Instrument.</P>

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

<P STYLE="text-indent: 0.5in; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">4.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Delivery of
Possession After Foreclosure</U>. In the event there is a foreclosure sale hereunder and at the time of such sale, Grantor or
Grantor&#8217; heirs, devisees, representatives, successors or assigns are occupying or using the Premises, or any part thereof,
each and all immediately shall become the tenant of the purchaser at such sale, which tenancy shall be a tenancy from day to day,
terminable at the will of either landlord or tenant, at a reasonable rental per day based upon the value of the property occupied,
such rental to be due daily to the purchaser; and to the extent permitted by applicable law, the purchaser at such sale, notwithstanding
any language herein apparently to the contrary, shall have the sole option to demand possession immediately following the sale
or to permit the occupants to remain as tenants at will. In the event the tenant fails to surrender possession of said property
upon demand, the purchaser shall be entitled to institute and maintain a summary action for possession of the property (such as
an action for forcible detainer) in any court having jurisdiction.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><U>ARTICLE V<BR>
</U>Additional Rights and Remedies of Grantee</P>

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

<P STYLE="text-indent: 0.5in; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">5.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Rights
Upon an Event of Default</U>. Upon the occurrence of an Event of Default, Grantee, immediately and without additional notice
and without liability therefor to Grantor and to the extent permitted by law, except for its own gross negligence or willful
misconduct, may do or cause to be done any or all of the following: (a) take physical possession of the Premises; (b) enter
into contracts for the completion, repair and maintenance of the Improvements thereon; (c) expend loan funds and any income
derived from the Premises for payment of any taxes, insurance premiums, assessments and charges for completion, repair and
maintenance of the Improvements, preservation of the lien of this Security Instrument and satisfaction and fulfillment of any
liabilities or obligations of Grantor arising out of or in any way connected with the construction of Improvements on the
Premises whether or not such liabilities and obligations in any way affect, or may affect, the lien of this Security
Instrument; (d) enter into leases demising the Premises or any part thereof; (e) take such steps to protect and enforce the
specific performance of any covenant, condition or agreement in the Note or this Security Instrument, or to aid the execution
of any power herein granted; (f) generally, supervise, manage, and contract with reference to the Premises as if Grantee were
equitable owner of the Premises; (g) seek the appointment of a receiver as provided in Section 5.2 below; (h) exercise any or
all of the remedies available to a secured party under the Uniform Commercial Code, including, but not limited to, selling,
leasing or otherwise disposing of any fixtures and personal property which is encumbered hereby at public sale, with or
without having such fixtures or personal property at the place of sale, and upon such terms and in such manner as Grantee may
determine; (i) exercise any or all of the remedies of a secured party under the Uniform Commercial Code with respect to the
Intangible Personalty; and (j) enforce any or all of the assignments or collateral assignments made in this Security
Instrument as additional security for the Secured Obligations. Grantor also agrees that any of the foregoing rights and
remedies of Grantee may be exercised at any time upon the occurrence of an Event of Default independently of the exercise of
any other such rights and remedies, and Grantee may continue to exercise any or all such rights and remedies until the
Event(s) of Default are cured or waived or until foreclosure and the conveyance of the Premises or until the Secured
Obligations are satisfied or paid in full and all of Grantor&#8217; commitments are terminated.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">5.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Appointment of Receiver</U>.
Upon the occurrence and continuance of an Event of Default, Grantee as a matter of right shall be entitled to the appointment of
a receiver or receivers for all or any part of the Premises, to take possession of and to operate the Premises, and to collect
the rents, issues, profits, and income thereof, all expenses of which shall become Secured Obligations, whether such receivership
be incident to a proposed sale (or sales) of such property or otherwise, and without regard to the value of the Premises or the
solvency of any Person or Persons liable for the payment of any Secured Obligations. Nothing herein is to be construed to deprive
Grantee of any other right, remedy or privilege it may have under the law to have a receiver appointed. Any money advanced by Grantee
in connection with any such receivership shall be a demand obligation (which obligation Grantor hereby promises to pay) owing by
Grantor to Grantee pursuant to this Security Instrument.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">5.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Waivers</U>. No waiver of
any Event of Default shall at any time thereafter be held to be a waiver of any rights of Grantee stated anywhere in the Note or
this Security Instrument, nor shall any waiver of a prior Event of Default operate to waive any subsequent Event(s) of Default.
All remedies provided in Note and this Security Instrument are cumulative and may, at the election of Grantee, be exercised alternatively,
successively, or in any manner and are in addition to any other rights provided by law.</P>

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

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

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




<P STYLE="text-indent: 0.5in; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-weight: normal">5.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Protection
of Premises</U>. If Grantor fails to perform the covenants and agreements contained in this Security Instrument, and such failure
continues beyond any applicable grace, notice and cure periods, except in the case of an emergency in which event Grantee may act
immediately, then Grantee may take such actions, including, but not limited to, disbursements of such sums, as Grantee in its sole
reasonable discretion deems necessary to protect Grantee&#8217;s interest in the Premises.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><U>ARTICLE VI</U><BR>
Additional Rights of Grantor</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">6.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Despite
anything in this Security Instrument or the Note to the contrary:</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; text-indent: 1in">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Grantor
shall have the right to obtain from Grantee partial releases of this Security Instrument with regard to any portion of the Premises
upon payment to Grantee of that percentage of the then unpaid principal balance of the Note equal to the number of acres of land
within the Land being released divided by the number of acres of land within the Land then remaining encumbered by this Security
Instrument. Any prepayment made hereunder shall be credited toward the next payment due under the Note and shall reduce such payment.
In addition, if the Grantor is required to dedicate or grant any portion of the Premises to any public entity during the development
process, Grantee, upon written request by Grantor, shall release from this Security Instrument any such portion of the Premises
dedicated or granted to the public entity without any payment on 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; text-align: justify; text-indent: 1in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon
written request by Grantor, Grantee agrees to subordinate the lien of this Security Instrument to the lien or liens of a loan or
loans, provided that the proceeds of such loan or loans are used solely to construct (including without limitation design, approval,
financing and other &#8220;soft&#8221; costs associated therewith), within or serving the Land, subdivision infrastructure or subdivision
improvements that are required by a governmental authority with proper jurisdiction as a condition of platting or development approval
or that are necessary or desirable to Grantor to fully develop a single family residential development on the Land. Grantee agrees
to use the subordination form requested by the lender of such loan, unless such form is commercially unreasonable.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><U>ARTICLE VII</U><BR>
General Conditions</P>

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

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">7.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Terms</U>. The singular used
herein shall be deemed to include the plural; the masculine deemed to include the feminine and neuter; and the named parties deemed
to include their heirs, successors and assigns. Capitalized terms used herein and not otherwise defined shall have the respective
meanings ascribed to such terms in the Note.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">7.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Notices</U>. All notices
and other communications required or permitted to be given hereunder shall have been duly given.</P>

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

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">7.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Severability</U>.
If any provision of this Security Instrument is determined to be illegal, invalid or unenforceable, such provision shall be
fully severable and the remaining provisions shall remain in full force and effect and shall be construed without giving
effect to the illegal, invalid or unenforceable provisions.</P>

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

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

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

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">7.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Headings</U>. The captions
and headings herein are inserted only as a matter of convenience and for reference and in no way define, limit, or describe the
scope of this Security Instrument nor the intent of any provision hereof.</P>

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

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">7.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Conflicting Terms</U>. In the event
the terms and conditions of this Security Instrument conflict with the terms and conditions of the Note, the terms and conditions
of this Security Instrument shall control and supersede the provisions of the Note with respect to such conflicts.</P>

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

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">7.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Governing Law</U>. This Security
Instrument shall be governed by and construed in accordance with the law of the state of New Mexico.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">7.7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Intentionally Omitted.]</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">7.8&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>WRITTEN AGREEMENT</U>.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THE
RIGHTS AND OBLIGATIONS OF GRANTOR AND GRANTEE SHALL BE DETERMINED SOLELY FROM THIS WRITTEN SECURITY INSTRUMENT AND THE NOTE, AND
ANY PRIOR ORAL OR WRITTEN AGREEMENTS BETWEEN GRANTEE AND GRANTOR CONCERNING THE SUBJECT MATTER HEREOF AND OF THE NOTE ARE SUPERSEDED
BY AND MERGED INTO THIS SECURITY INSTRUMENT AND THE NOTE.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIS
SECURITY INSTRUMENT AND THE NOTE MAY NOT BE VARIED BY ANY ORAL AGREEMENTS OR DISCUSSIONS THAT OCCUR BEFORE, CONTEMPORANEOUSLY WITH,
OR SUBSEQUENT TO THE EXECUTION OF THIS SECURITY INSTRUMENT OR THE NOTE.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIS
SECURITY INSTRUMENT AND THE NOTE REPRESENT THE FINAL AGREEMENTS BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF
PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.</P>

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

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">7.9&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>WAIVER
OF JURY TRIAL</U>. GRANTEE AND GRANTOR HEREBY WAIVE, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE RIGHT TO A TRIAL
BY JURY IN ANY ACTION OR PROCEEDING BASED UPON, OR RELATED TO, THE SUBJECT MATTER OF THIS SECURITY INSTRUMENT. THIS WAIVER IS
KNOWINGLY, INTENTIONALLY, AND VOLUNTARILY MADE BY GRANTEE AND GRANTOR, AND GRANTEE AND GRANTOR ACKNOWLEDGE THAT NO PERSON
ACTING ON BEHALF OF ANOTHER PARTY TO THIS AGREEMENT HAS MADE ANY REPRESENTATIONS OF FACT TO INDUCE THIS WAIVER OF TRIAL BY
JURY OR IN ANY WAY TO MODIFY OR NULLIFY ITS EFFECT. GRANTEE AND GRANTOR FURTHER ACKNOWLEDGE THAT THEY HAVE BEEN REPRESENTED
(OR HAVE HAD THE OPPORTUNITY TO BE REPRESENTED) IN THE SIGNING OF THIS SECURITY INSTRUMENT AND IN THE MAKING OF THIS WAIVER
BY INDEPENDENT LEGAL COUNSEL, SELECTED OF THEIR OWN FREE WILL, AND THAT THEY HAVE HAD THE OPPORTUNITY TO DISCUSS THIS WAIVER
WITH COUNSEL.</P>

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

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

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

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">7.10&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Saving Clause</U>. In the
event of any inconsistencies between this Section and any of the other terms and provisions of this Security Instrument, the terms
and provisions of this Section shall control and be binding. Grantor is aware of the provisions of Section 58-6-5, New Mexico Statutes
Annotated, which, to the extent, if any, they apply to this transaction, provide that &#8220;A contract, promise or commitment
to loan money or to grant, extend or renew credit or any modification thereof, in any amount greater than twenty-five thousand
dollars ($25,000), not primarily for personal, family or household purpose, made by a financial institution shall not be enforceable
unless in writing and signed by the party to be charged or that party&#8217;s authorized representative. . . .&#8221; To the extent,
if at all, a court of competent jurisdiction determines that NMSA 1978 &sect; 56-7-1 applies to any indemnification provisions
in this Security Instrument, including certain types of insurance coverage as set forth in NMSA 1978 &sect; 56-7-1, such provisions
shall not apply to or extend to liability, claims, damages, losses or expenses, including attorneys&#8217; fees, arising out of
bodily injury to persons or damage to property caused by or resulting from, in whole or in part, the negligence, act or omission
of the indemnitee or additional insured, as the case may be, its officers, employees or agents and shall further be limited, if
required, by the provisions of NMSA 1978 &sect; 56-7-1B.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">PROVIDED ALWAYS, and
it is the intent and meaning of Grantor and Grantee, that if the Secured Obligations shall be fully and finally paid and discharged,
this Security Instrument and all other commitments are terminated, then this Security Instrument shall cease and be void, otherwise
it shall remain in full force and virtue.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">[<I>signature and acknowledgement follow
this page</I>]</P>

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

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




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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">IN
WITNESS WHEREOF, Grantor has executed and delivered this Security Instrument as of the Effective Date:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&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: justify">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">GRANTOR:</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; width: 50%">&nbsp;</TD>
    <TD STYLE="text-align: justify; width: 5%">&nbsp;</TD>
    <TD STYLE="text-align: justify; width: 45%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: justify"><FONT STYLE="font: small-caps 10pt Times New Roman, Times, Serif">lavender Fields, LLC</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">a New Mexico Limited Liability Company</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-bottom: 1pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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">/s/ Carey A. Plant</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Name:</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Carey A. Plant</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Its:</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Vice President</FONT></TD></TR>
</TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ACKNOWLEDGEMENT</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></B></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: 20%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">STATE OF NEW MEXICO</FONT></TD>
    <TD STYLE="width: 80%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)ss</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">COUNTY OF SANDOVAL</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</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: justify">This instrument was acknowledged before
me on June 15, 2020, by Carey A. Plant as Vice President of LAVENDER FIELDS, LLC, a New Mexico Limited Liability Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&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-bottom: 1pt; width: 50%">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; width: 50%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/ Debra J. Torrez </FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Notary Public</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">My Commission Expires:</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">[SEAL]</FONT></TD>
    <TD>&nbsp;</TD></TR>
</TABLE>

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

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

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




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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">TO MORTGAGE, SECURITY AGREEMENT AND FIXTURE
FILING</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Legal Description of the Land</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: justify">Tracts &quot;A&quot;, &#8220;B&#8221;,
 &quot;C&quot; and &quot;D&quot; of Meso Am, Bernalillo County, New Mexico, as the same are shown and designated on the Plat thereof,
filed in the office of the County Clerk of Bernalillo County, New Mexico on October 22, 2013, in Plat Book 2013C, Page 119 as Document
No. 2013116380, re-recorded November 4, 2013, in Plat Book 2013C, Page 123 as Document No. 2013120726.</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"></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; text-align: center"><B>&nbsp;</B></P>




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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">TO MORTGAGE, SECURITY AGREEMENT AND FIXTURE
FILING</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><U>DESCRIPTION
OF PERSONAL PROPERTY FOR FIXTURE FILING</U></FONT></P>

<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: justify; text-indent: 0.5in">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Real
Property Rights, Appurtenances and Improvements</U>. All present and future structures, buildings, improvements and fixtures of
any kind on the real property described in the attached <U>Exhibit A</U> (the &#8220;<U>Real Property</U>&#8221;), which is incorporated
herein by this reference, as well as: (a) all appurtenances of the Real Property and all rights in and to any streets, roads or
public places, all strips and gores of land lying between the Real Property and any other open or proposed streets, roads, highways
or alleys, and all easements, rights of way and other hereditaments appurtenant to or relating to the Real Property, and all minerals,
oil, gas and other hydrocarbon substances on or under the surface of the Real Property, as well as all development rights, permits,
licenses, air rights, water, water rights, and water stock relating to the Real Property and all ditches and ditch rights related
or appurtenant to the Real Property and all water and sewer taps belonging to or in any way related to or appurtenant to the Real
Property; and (b) all trees and plants located on the Real Property, and all renewals or replacements of any of the foregoing or
articles in substitution thereof; it being intended and agreed that all such items will be conclusively considered to be part of
the Real Property, whether or not attached or affixed to the Real Property (the &#8220;<U>Improvements</U>&#8221;).</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Collateral</U>.
All right, title and interest in and to the following described property and any and all products and proceeds thereof, now owned
or hereafter acquired (collectively, the &#8220;<U>Collateral</U>&#8221;):</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>General
Intangibles</U>. All general intangibles relating to design, development, operation, management and use of the Real Property and
construction of the Improvements, including, but not limited to: (i) all names under which or by which the Real Property or the
Improvements may at any time be operated or known, all rights to carry on business under any such names or any variants thereof,
and all goodwill in any way relating to the Real Property; (ii) all permits, licenses, authorizations, variances, land use entitlements,
approvals and consents issued or obtained in connection with the construction, maintenance or operation of the Improvements; (iii)
all permits, licenses, approvals, consents, authorizations, franchises and agreements issued or obtained in connection with the
use, occupancy or operation of the Real Property; (iv) all rights as a declarant (or its equivalent) under any covenants, conditions
and restrictions or other matters of record affecting the Real Property; (v) all materials prepared for filing or filed with any
governmental agency; and (vi) all rights under any contract in connection with the development, design, use, operation, management
and construction of the Real Property and/or the Improvements;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Contracts</U>.
All construction, service, management, engineering, consulting, leasing, architectural, design, landscape and other similar contracts
of any nature, as such may be modified, amended or supplemented from time to time, concerning the design, construction, management,
operation, occupancy, use, and/or disposition of any portion of or all of the Real Property;</P>

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

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

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>




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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Plans
and Reports</U>. All architectural, design and engineering drawings, plans, specifications, working drawings, shop drawings, general
conditions, addenda, soil tests and reports, feasibility studies, appraisals, engineering reports, environmental reports and similar
materials relating to any portion of or all of the Real Property and/or the Improvements and all modifications, supplements and
amendments thereto;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>CC&amp;R&#8217;s</U>.
All documents, instruments and agreements relating to, or in any way connected with, the operation, control or development of the
Real Property and/or the Improvements, including, without limitation, any declaration of covenants, conditions and restrictions
and any articles of incorporation, bylaws and other membership documents of any property owners association or similar group (collectively,
 &#8220;<U>CC&amp;R&#8217;s</U>&#8221;);</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Declarant&#8217;s
Rights</U>. All of Grantor&#8217;s rights of every kind under or pursuant to any CC&amp;R&#8217;s now in effect or hereafter filed
affecting the Real Property and/or the Improvements, and any modifications thereof or supplements thereto, and all of Grantor&#8217;s
rights under or pursuant to any and all other documents which may hereafter be executed or otherwise made effective with respect
to the creation of an association to govern or administer such community, including, without limitation, all development rights,
special declarant rights, rights with respect to any design or architectural review committees, and other rights of Grantor as
declarant under any CC&amp;R&#8217;s;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">THIS FINANCING STATEMENT IS TO BE RECORDED
IN THE REAL ESTATE RECORDS OF THE COUNTY IN WHICH THE REAL PROPERTY IS LOCATED.</P>

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

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

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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.3
<SEQUENCE>4
<FILENAME>tm2022915d1_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: center; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

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

<P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

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

<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: justify; text-indent: 0.5in">This DEVELOPMENT LOAN
AGREEMENT (&#8220;Agreement&#8221;) is made and entered into effective as of June 19, 2020 (the &#8220;Effective Date&#8221;),
among BOKF, NA dba Bank of Albuquerque (the &#8220;Lender&#8221;); and Lavender Fields, LLC, a New Mexico limited liability company
(the &#8220;Borrower&#8221;), with reference to the following:</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrower
has requested that Lender lend to Borrower up to Three Million Seven Hundred Fifty Thousand and No/100 Dollars ($3,750,000.00),
to finance Borrower&#8217;s development of 82 residential Lots (defined below) within the Lavender Fields subdivision and the costs
to extend a road and of other offsite infrastructure to the Lots in Bernalillo County, New Mexico, as more particularly described
on <U>Exhibit &#8220;A&#8221;</U> attached hereto and made a part hereof (the &#8220;Mortgaged Property&#8221;).</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject
to the terms, provisions, covenants and agreements hereinafter set forth, Lender has agreed to make the requested extension of
credit.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">NOW, THEREFORE, in
consideration of the mutual covenants contained herein and the loan to be made hereunder, and for other good and valuable consideration,
the receipt and adequacy of which are hereby acknowledged, Lender and Borrower hereby covenant and agree as follows:</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">1.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>LENDING AGREEMENT</U>: Subject to the terms, provisions, covenants and agreements set forth in this Agreement, Lender
agrees to lend to Borrower, and the Borrower agrees to borrow from Lender, up to the principal sum of Three Million Seven Hundred
Fifty Thousand and No/100 Dollars ($3,750,000.00), to be used by Borrower for the purposes of: (a) paying contractors, mechanics,
materialmen, and suppliers pursuant to the terms of contracts for services in fact performed and materials purchased for and either
incorporated into the development of the Mortgaged Property or suitably stored on the Mortgaged Property for later incorporation
(such development work and the Mortgaged Property are hereinafter collectively referred to as the &#8220;Development&#8221;); (b)
reimbursing Lender for reasonable expenses incurred by Lender pursuant to this Agreement; and (c) paying other reasonable costs
that are incidental or related to the cost of completing or financing the Development to the extent included in the Development
Budget (defined below).</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">2.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>BORROWER&#8217;S NOTE</U>: The loan shall be evidenced by a Non-Revolving Line of Credit Promissory Note (the &#8220;Note&#8221;)
in the principal amount of Three Million Seven Hundred Fifty Thousand and No/100 Dollars ($3,750,000.00), which Note shall bear
interest at the rate specified in the Note.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">3.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>COLLATERAL SECURITY</U>: The performance of all covenants and agreements contained in this Agreement and in the other
documents executed or delivered as a part of this transaction and the payment of the Note shall be secured as follows:</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">3.1.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><U>Security
Documents Covering Mortgaged Property</U>: Borrower shall grant to Lender a first-lien mortgage covering all of the Mortgaged
Property and a security interest in all personal property relating to such Mortgaged Property and owned by Borrower, which
mortgage lien and security interest shall be evidenced by a Mortgage, Security Agreement and Financing Statement (the
 &#8220;Mortgage&#8221;).</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">3.2.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Hazardous Substances Indemnification Agreement</U>: Borrower and Guarantor shall sign and deliver to Lender a Hazardous
Substances Indemnification Agreement in the form required by Lender (the &#8220;HSIA&#8221;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">3.3.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Guaranty</U>: AMREP Southwest, Inc. (the &#8220;Guarantor&#8221;) shall sign and deliver to Lender a Guaranty Agreement
in the form required by Lender (the &#8220;Guaranty&#8221;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">3.4.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Collateral Assignment of Contracts</U>: Borrower shall assign to Lender and grant a security interest to Lender in all
contracts with contractors, architects and engineers (the &#8220;Assignment&#8221;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">3.5.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Subordination Agreement</U>: Mesoam LLC, a New Mexico limited liability company, and Borrower shall sign and deliver
to Lender a Subordination Agreement in the form required by Lender (the &#8220;Subordination Agreement&#8221;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">3.6.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Additional Documents</U>: Borrower shall also sign and deliver such Closing Certificates, Lien Affidavits, Closing Statements
and other documents that Lender may reasonably request (collectively, the &#8220;Additional Documents&#8221;). Further, any and
all collateral documents executed by Borrower in favor of Lender as security for any indebtedness of Borrower to Lender shall also
expressly secure Borrower&#8217;s obligations hereunder and under the Note and all documents that secure payment of the Note.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">4.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>CONDITIONS OF LENDING</U>: The obligation of Lender to perform this Agreement and to make an initial or any future advance
or extension of credit hereunder is subject to the performance and existence of the following conditions precedent:</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">4.1.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>No Events of Default</U>: There shall not have occurred and be continuing any Event of Default, and the representations
and warranties set forth in the Loan Documents shall be true and accurate in all material respects.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">4.2.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Loan Documents</U>: This Agreement, the Note, the Mortgage, the Assignment, the Guaranty, the HSIA, the Subordination
Agreement and the Additional Documents (collectively, the &#8220;Loan Documents&#8221;) shall be duly authorized, executed and
delivered to Lender.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">4.3.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Recording of Security Documents</U>: The Mortgage, the Subordination Agreement and a Uniform Commercial Code Financing
Statement naming Borrower as debtor and Lender as secured party shall be recorded in the appropriate county or state offices.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">4.4.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><U>Title
Evidence</U>: Borrower shall provide to Lender a loan policy of title insurance with pending disbursements clause, issued by
a title insurance company acceptable to Lender (the &#8220;Title Company&#8221;), evidencing that Borrower has good and
indefeasible fee simple title to the Mortgaged Property and that the Mortgage constitutes a valid first mortgage lien on the
Mortgaged Property, subject only to those matters waived by Lender. The title policy shall not include an exception based
upon mechanics&#8217; and materialmen&#8217;s liens. The premiums for the title policy shall be paid by Borrower.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">4.5.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Appraisal</U>: Borrower shall pay for an independent appraisal evaluation of the Mortgaged Property by an appraiser selected
and approved by Lender, which appraisal must comply with the standards set forth by the Comptroller of the Currency of National
Banks.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">4.6.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Survey</U>: Borrower shall deliver to Lender and the Title Company a survey of the Mortgaged Property in a form which
is acceptable to Lender and the Title Company and will enable the issuer of the required loan policy of title insurance to delete
all survey exceptions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">4.7.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Insurance</U>: Borrower shall obtain and maintain the insurance required to be maintained by the Mortgage.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">4.8.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Zoning and Use</U>: If requested by Lender, Borrower shall furnish Lender satisfactory evidence that the Mortgaged Property
is presently zoned for its intended use and that the Mortgaged Property is in full compliance with all municipal ordinances, codes,
rules or regulations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">4.9.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Permits</U>: Borrower shall obtain and deliver to Lender copies of all permits required to commence, and thereafter to
continue, work on the Development or any part thereof, including, without limitation, permits issued by Bernalillo County, New
Mexico.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">4.10.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Cost Breakdown and Budget</U>: The Borrower shall submit, for approval by Lender, complete plans for the Development
and a detailed cost breakdown and budget of the work entailed in the Development showing the total costs involved (both direct
and indirect) (collectively, the &#8220;Development Budget&#8221;), which approval shall not be unreasonably withheld or delayed.
Following approval by Lender, the Development Budget shall not be changed in any material respect without the prior written consent
of Lender.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">4.11.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Existence and Authority</U>: If requested by Lender, Borrower shall provide to Lender true and correct copies of the
documents that created and evidence Borrower and all amendments thereto including: (i) filed Articles of Organization and Certificate
of Organization from the New Mexico Secretary of State (&#8220;NMSOS&#8221;); (ii) a Certificate of Good Standing issued by the
NMSOS; (iii) authorization from Borrower to enter into this agreement, and any other Loan Documents required by Lender in connection
with this Agreement; and (iii) the operating agreement of Borrower and all amendments thereto.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">4.12.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><U>Cash
Equity</U>. In addition to any other equity or loan to value requirements Borrower shall have provided evidence reasonably
satisfactory to Lender that Borrower has invested cash equity in the Development, as determined by Lender, of not less than
fifteen percent (15%) of the &#8220;as completed&#8221; appraised value of the Development as of the date of the initial
advance under the Note. Borrower&#8217;s equity in the Mortgaged Property, shall be included in any calculation of the cash
equity required by this Section 4.12.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">4.13.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Loan Origination Fee</U>: At closing, Borrower shall remit to Lender a fully earned, non-refundable loan origination
fee in the amount of one-half of one percent (1/2%) of the face amount of the Note.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">4.14.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Lot Purchase Agreement</U>: Borrower shall deliver to Lender a signed Lot Purchase Agreement in form and content acceptable
to Lender between Borrower and homebuilder(s) for the purchase of 82 Lots comprising the Mortgaged Property.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">4.15.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Borrower&#8217;s Equity</U>: Borrower shall have provided evidence reasonably acceptable to Lender that Borrower has
invested (or will have invested by the date of the final advance under the Note) cash equity in the Development of not less than
$2,900,000.00. Borrower&#8217;s equity in the Mortgaged Property shall be included in any calculation of cash equity required by
this Section 4.15.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">4.16.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Preliminary and Final Plat</U>: Prior to the initial advance of credit hereunder, Borrower shall have obtained approval
by Bernalillo County, New Mexico of the Lender Approved Preliminary Plat (as defined below). Prior to the final advance of credit
hereunder, but no later than the Completion Date (defined below) the Final Plat (as defined below) shall have been recorded in
the real property records of Bernalillo County, New Mexico.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">5.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>REPRESENTATIONS AND WARRANTIES</U>: In addition to all other representations and warranties of Borrower to Lender, Borrower
represents and warrants that:</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">5.1.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Existence; Compliance with Law</U>: Borrower (i) is duly organized or formed, as applicable, validly existing and (if
relevant) in good standing under the laws of the jurisdiction of its organization or formation, as the case may be, (ii) has the
limited liability company power and authority and the legal right, to own and operate its property and assets, to lease the property
and assets it leases and causes to be operated as lessee, and to conduct the business in which it is currently engaged under the
governmental requirements of each jurisdiction in which it owns, leases and/or operates its property or assets, (iii) is duly qualified
as a foreign limited liability company, and (if relevant) in good standing under the laws of each jurisdiction where its ownership,
lease or operation of property or assets or the conduct of its business requires such qualification, (iv) is in material compliance
with its applicable organizational documents, and (v) is in compliance with all governmental requirements, except to the extent
that the failure to comply therewith could not, individually or in the aggregate, reasonably be expected to have a material adverse
effect on Borrower.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">5.2.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><U>Entity
Power; Authorization; Enforceable Obligations</U>: Borrower has the power and authority, and the legal right, to make,
deliver and perform the Loan Documents and to borrow hereunder, and has taken all necessary limited liability company or
other action to authorize the execution, delivery and performance of the Loan Documents and to authorize the borrowings on
the terms and conditions of this Agreement and the other Loan Documents. No consent or authorization of, filing with, notice
to or other act by or in respect of, any governmental authority or any other person is required in connection with the
borrowings hereunder or the execution, delivery, performance, validity or enforceability of this Agreement or any of the
other Loan Documents, except consents, authorizations, filings and notices which have been obtained or made and are in full
force and effect. Each Loan Document has been duly executed and delivered on behalf of Borrower. This Agreement constitutes,
and each other Loan Document upon execution shall constitute, a legal, valid and binding obligation of Borrower, enforceable
against Borrower in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting the enforcement of creditors&#8217; rights generally and by general
equitable principles (whether enforcement is sought by proceedings in equity or at law).</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">5.3.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>No Legal Bar</U>: The execution, delivery and performance of this Agreement, the other Loan Documents, the borrowings
hereunder and the use of the proceeds thereof shall not violate any governmental requirement or any contractual or other obligation
of Borrower and shall not result in, or require, the creation or imposition of any lien on any of Borrower&#8217;s assets, properties
or revenues pursuant to any governmental requirement or any such contractual or other obligation (other than the liens created
by the Loan Documents). No governmental requirement or contractual or other obligation applicable to Borrower or Borrower&#8217;s
properties or assets could reasonably be expected to have a material adverse effect on Borrower. No performance of a contractual
or other obligation by Borrower, either unconditionally or upon the happening of an event, would result in the creation of a lien
(other than a permitted lien) on the property, assets or revenues of Borrower.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">5.4.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>No Conflicting Agreements</U>: There is no provision of any existing agreement, mortgage, indenture, instrument, document
or contract binding on Borrower or affecting any property or asset of Borrower, which would conflict with or in any way prevent
the execution, delivery or carrying out of the terms of this Agreement and the other Loan Documents.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">5.5.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Ownership of Properties; Liens</U>: Borrower has good and indefeasible title to the Mortgaged Property, and the Mortgaged
Property is not subject to any deed of trust, mortgage, pledge, security interest, encumbrance, lien or charge of any kind, excluding
only: (a) deposits to secure payment of worker&#8217;s compensation (if any), unemployment insurance and other similar benefits;
(b) liens for property taxes not yet due; (c) statutory liens, against which there are established reserves in accordance with
generally accepted accounting principles, and which arise in the ordinary course of business and secure obligations of Borrower
which are not yet due and not in default; (d) encumbrances in favor of Lender; and (e) matters reflected in the loan policy of
title insurance.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">5.6.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT> <U>Financial Condition</U>: The financial statements, information and materials of Borrower heretofore delivered to Lender
fairly and accurately present in all material respects Borrower&#8217;s consolidated financial condition (including its assets
and liabilities) as of the date or dates thereof (subject, in the case of the interim financial statements, to normal year-end
adjustments and the absence of notes), and there have been no material adverse changes in Borrower's financial condition or operations
since the date or dates thereof. Borrower does not currently have material guarantee obligations, contingent liabilities and liabilities
for taxes, or any long-term leases or unusual forward or long-term commitments, which are not reflected in the most recent financial
statements, information and materials referred to in this section.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">5.7.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Licenses, Permits, Etc.</U>: Borrower possesses or will possess prior to the commencement of construction and construction
of each subsequent phase of the Development, all licenses, permits, consents, approvals, franchises and intellectual property (or
otherwise possesses the right to use such intellectual property without violation of the rights of any other person) which are
necessary for the completion of the Development, except for those licenses, permits, consents, approvals, franchises and intellectual
property the failure of which to possess could not reasonably be expected to have a material adverse effect on Borrower. Borrower
is not in violation in any material respect of the terms under which it possesses any such licenses, permits, consents, approvals,
franchises and intellectual property or the right to use such licenses, permits, consents, approvals, franchises and intellectual
property.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">5.8.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Contractual Default</U>: Borrower is not in default under or with respect to any of their respective contractual obligations
in any respect that could reasonably be expected to have a material adverse effect on Borrower.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">5.9.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>No Change</U>: Since January 1, 2019, there has been no development or event that has had or could reasonably be expected
to have a material adverse effect on the Mortgaged Property or Borrower.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">5.10.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Litigation</U>: There is no litigation, investigation or proceeding of or before any arbitrator, mediator or any governmental
authority or, to Borrower&#8217;s knowledge, threatened by or against Borrower or against any of any Borrower&#8217;s assets, properties
or revenues: (a) with respect to any of the Loan Documents or any of the transactions contemplated hereby, or (b) that could reasonably
be expected to have a material adverse effect on the Mortgaged Property or Borrower.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">5.11.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><U>Employee
Retirement Income Security Act of 1994 (ERISA)</U>: Borrower has not incurred any &#8220;accumulated funding
deficiency&#8221; within the meaning of Section 302(a)(2) of ERISA as amended from time to time with respect to any employee
pension or other benefit plan or trust maintained by or related to Borrower, and Borrower has not incurred any material
liability to the Pension Benefit Guaranty Corporation (PBGC) as established pursuant to Section 4002 of ERISA in connection
with any such plan. No reportable event described in Sections 4042(a) or 4043(b) of ERISA with respect to any such plan has
occurred. The representations contained in this paragraph 5.11 are subject to the statements and disclosures contained in
Note 7 of the AMREP Corporation SEC Form 10-Q dated July 31, 2017, and all subsequent updates to said Note 7.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">5.12.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Insurance</U>: All policies of insurance of any kind or nature of any Borrower, including policies of fire, theft, product
liability, public liability, property damage, other casualty, employee fidelity, workers&#8217; compensation and employee health
and welfare insurance, if and as applicable, are in full force and effect as of the date of this Agreement and are of a nature
and provide such coverage as is customarily carried by businesses of the size and character of Borrower. Borrower has not been
refused insurance for any material coverage for which it has applied or has had any policy of insurance terminated (other than
at Borrower&#8217;s request).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">5.13.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Taxes</U>: Borrower has timely filed or requested appropriate extensions (or caused to be timely filed or extended) all
federal, state and other tax returns, reports and statements (collectively, &#8220;Tax Returns&#8221;) that are required to be
filed by Borrower with the appropriate governmental authorities in all jurisdictions in which such Tax Returns are required to
be filed; all such Tax Returns are true and correct in all material respects; Borrower has timely paid, prior to the date on which
any fine, penalty, interest, late charge or loss may be added thereto for non-payment thereof, all taxes shown to be due and payable
on said Tax Returns or on any assessments made against Borrower or any of Borrower&#8217;s properties or assets, and all other
taxes, fees or other charges imposed on Borrower or any of Borrower&#8217;s properties or assets by or otherwise due and payable
to any governmental authority (other than any for which the amount or validity of which are currently being contested in good faith
by appropriate proceedings); and no tax lien has been filed against the property or assets of Borrower and, to Borrower&#8217;s
knowledge, no claim is being asserted, with respect to any such tax, fee or other charge. No Tax Return is under audit or examination
by any governmental authority and no notice of such an audit or examination or any assertion of any claim for taxes has been given
or made by any governmental authority. Proper and accurate amounts have been withheld by Borrower (if and to the extent any such
withholdings are so required) for all periods in full and complete compliance with the tax, social security, health care and unemployment
withholding provisions of applicable governmental requirements, and such withholdings (if any) have been timely paid to the respective
governmental authorities. Borrower (i) does not intend to treat the Loan or any other transaction contemplated hereby as being
a &#8220;reportable transaction&#8221; (within the meaning of Treasury Regulation 1.6011-4), and (ii) is not aware of any facts
or events that would result in such treatment. Due to Borrower&#8217;s date of organization, Borrower has not yet filed any Tax
Returns.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">5.14.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Margin Regulations</U>: No part of the proceeds of the Loan shall be used for buying or &#8220;carrying&#8221; any &#8220;margin
stock&#8221; within the respective meanings of each of the quoted terms under Regulation U (as defined within the applicable governmental
requirements promulgated by the applicable governmental authorities from time to time) as now and from time to time hereafter in
effect or for any purpose that violates the provisions of any governmental authority. If requested by Lender, Borrower shall furnish
to Lender a statement to the foregoing effect in conformity with the requirements of FR Form G-3 or FR Form U-1, as applicable,
referred to in Regulation U.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">5.15.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT> <U>Investment Company Act:</U> Borrower is not an &#8220;investment company&#8221;, or a company &#8220;controlled&#8221;
by an &#8220;investment company&#8221;, within the meaning of the Investment Company Act of 1940, as amended. Borrower is not subject
to regulation under any governmental requirement which limits its ability to incur Indebtedness, other than Regulation X (as defined
within the applicable governmental requirements promulgated by the applicable governmental authorities from time to time).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">5.16.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Patriot Act</U>: Borrower and its affiliates are in compliance, in all material respects, with the Patriot Act. No part
of the proceeds of the Loan shall be used, directly or indirectly, for any payments to any (i) governmental authority&#8217;s officials
or employees, (ii) political party, (ii) official of any political party, (iv) candidate for political office, or (v) anyone other
person acting in an official capacity, in order to obtain, retain or direct business or obtain any improper advantage, in violation
of the United States Foreign Corrupt Practices Act of 1977, as amended.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">5.17.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>OFAC</U>: None of Borrower or any affiliate of any Borrower: (a)&nbsp;is a sanctioned person; (b)&nbsp;owns assets in
sanctioned entities; or (c)&nbsp;derives any of its operating income from investments in, or transactions with sanctioned persons
or sanctioned entities. None of the proceeds of any Loan shall be used or have been used to fund any operations in, finance any
investments or activities in, or make any payments to, a sanctioned person or a sanctioned entity.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">5.18.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>No Default</U>: No Event of Default has occurred and is continuing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">5.19.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Adverse Circumstances</U>: To Borrower&#8217;s knowledge, neither the business nor any property or asset of any Borrower
is presently affected by any fire, explosion, accident, strike, lockout, or other dispute, embargo, act of God, act of public enemy
or terrorism, or similar event or circumstance, nor has any other event or circumstance relating to any Borrower's business, affairs,
properties or assets occurred, any of which could have a material adverse effect on Borrower.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">5.20.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Accuracy of Information</U>: To Borrower's knowledge, all factual information is and shall be true, accurate and complete
in all material respects on the date as of which such information was delivered to Lender and was not and shall not be incomplete
by the omission of any material fact necessary to make such information not misleading, provided that, with respect to projected
financial information, prospect information, geological and geophysical data and engineering projections, Borrower only represents
that such information was prepared in good faith based upon assumptions believed to be reasonable at the time.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">5.21.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><U>Environmental</U>:
To Borrower&#8217;s knowledge, the conduct of Borrower's business operations and the condition of Borrower's properties or
assets owned, operated or managed by Borrower does not violate any Environmental Law (as defined in the HSIA between Borrower
and Lender of even date herewith). Borrower has not received notice of, nor, to Borrower&#8217;s knowledge are there
presently existing, any judicial, administrative, arbitral or other proceeding (including any notice of violation or alleged
violation) under or relating to any Environmental Law or any environmental permit to which any Borrower is, or to
Borrower&#8217;s knowledge, shall be, named as a party that is pending or, to any Borrower&#8217;s knowledge, threatened.
Borrower has not received any written request for information, or been notified that any Borrower is a potentially
responsible party under or relating to any Environmental Law. Borrower has not entered into or agreed to any consent decree,
order, or settlement or other agreement or undertaking, and Borrower is not subject to any judgment, decree, or order or
other agreement, in any judicial, administrative, arbitral or other forum for dispute resolution, relating to compliance with
or liability under any Environmental Law. Borrower has not assumed or retained, by contract, operation of law or otherwise,
any liabilities of any kind, fixed or contingent, known or unknown, under any Environmental Law. Borrower has made available
to Lender copies of all significant reports, correspondence and other documents, if any, in its possession, custody or
control regarding compliance by Borrower with, or potential liability of Borrower under, Environmental Laws or environmental
permits.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">5.22.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Compliance with Laws</U>: To Borrower&#8217;s knowledge, Borrower is presently in compliance in all material respects
with all applicable governmental requirements to which Borrower, or any of Borrower's assets or properties, is subject, except
where the failure to so comply could not reasonably be expected to have a material adverse effect on Borrower.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">5.23.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Solvency; Compliance with Financial Covenants</U>: Borrower is, and after giving effect to the incurrence of all Indebtedness
and obligations being incurred in connection herewith shall be and shall continue to be, solvent.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">5.24.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Availability of Utility Service</U>: All utility services necessary for the maintenance and use of the Mortgaged Property
are or will be available to the Mortgaged Property, including water supply, storm and sanitary sewer facilities, electric and gas
utilities and cable television lines.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">5.25.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>No Commencement of Work</U>: Prior to recordation of the Mortgage, no work of any kind incident to the Development (other
than design and engineering work) shall have commenced, no equipment or material shall have been delivered to or stored upon the
Mortgaged Property for any purpose whatsoever, and no contracts (or memorandum or affidavit thereof) for the supplying of labor
or materials for the Development nor affidavit of commencement of construction shall have been recorded in the real property records
of the county in which the Mortgaged Property is located.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">5.26.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Continuation of Representations and Warranties; Borrower&#8217;s Knowledge</U>: All representations and warranties made
under this Agreement shall be deemed to be made at and as of the closing date and each funding date. Whenever used in this Agreement,
the phrase &#8220;to Borrower&#8217;s knowledge&#8221; means to the actual knowledge of Borrower&#8217;s President as of the Effective
Date, without independent inquiry and without review of any files.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">6.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><U>BORROWER&#8217;S
AFFIRMATIVE COVENANTS</U>: Until payment in full of the Note and performance of all obligations owing to Lender under this
Agreement and the instruments executed pursuant hereto, unless the Lender shall otherwise consent in writing, Borrower agrees
to perform or cause to be performed the following:</P>

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

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">6.1.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Performance of Obligations</U>: Borrower will promptly and punctually perform all of the obligations hereunder, and under
all other instruments executed or delivered pursuant thereto and under the terms of any other contract or agreement entered into
by the Borrower in connection with the Development.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">6.2.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Financial Information</U>: Borrower will maintain adequate and accurate books and records of account. Lender shall have
the right to examine and copy such books and records, including all books and records relating to the Development, to discuss the
affairs, finances and accounts of Borrower and to be informed as to the same from time to time as Lender might reasonably request.
Borrower will provide Lender with quarterly unaudited and without footnotes financial statements within sixty (60) days of each
quarter end. All financial information provided to Lender will be in form and content acceptable to Lender in its sole discretion.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">6.3.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Notification of Liens</U>: Other than items identified in the title policy required hereunder, Borrower will notify Lender
of the existence or asserted existence of any mortgages, pledge, lien, charge or encumbrance on the Mortgaged Property, personal
or real, tangible or intangible, forthwith upon Borrower&#8217;s obtaining knowledge thereof, excluding only: (a) encumbrances
in favor of Lender; (b) deposits to secure payment of worker&#8217;s compensation, unemployment insurance and similar benefits;
(c) statutory liens arising in the ordinary course of Borrower&#8217;s business which secure current obligations of Borrower which
are not in default.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">6.4.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Payment of Taxes</U>: All taxes, assessments and governmental charges or levies imposed on the Borrower or on Borrower&#8217;s
assets, income or profits, will be paid prior to delinquency. Notwithstanding the foregoing, the Borrower shall not be required
to pay any tax, assessment, charge or levy which is being contested in good faith by proper proceedings; provided, however, at
any time after a tax lien, of any type, is filed or notice thereof is received, upon request of Lender, Borrower shall deposit
with Lender the amount so contested and unpaid together with all interest that may or might be assessed or be a charge on the Mortgaged
Property or any part thereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">6.5.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Lender&#8217;s Access</U>: Upon one (1) business day&#8217;s written notice, Borrower will, during normal business hours
and as often as Lender may reasonably request but not exceeding once per month during the term of this Agreement so long as Borrower
is not in default hereunder, permit any of Lender&#8217;s officers or any authorized representatives of Lender to visit and inspect
the Development, to enter upon the Mortgaged Property, to inspect the Development progress thereof and all materials to be used
in the Development, and to examine the current plans and specifications.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">6.6.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><U>Compliance
with Laws</U>: Borrower will comply with all statutes, laws, rules and regulations in all material respects to which the
Borrower is subject or by which its properties are bound or affected, including, without limitation, (a) ERISA; (b) those
pertaining or relating to environmental standards and controls; (c) those pertaining to occupational health and safety
standards (d) those pertaining to equal employment and credit practices and civil rights, and (e) those pertaining to the
ownership, operation and use of the Development.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">6.7.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Maintenance</U>: Borrower will maintain its existence, remain in good standing in each jurisdiction in which it is required
to be qualified or licensed, maintain all franchises, permits, intellectual properties and licenses necessary or useful in the
operation of its business heretofore operated and as to be operated as contemplated hereby, and Borrower will maintain or cause
to be maintained its properties in good and workable condition, repair, and appearance, and protect the same from deterioration,
other than normal wear and tear, at all times.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">6.8.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Further Assurances</U>: Borrower will, from time to time, promptly cure any defects or omissions in the execution and
delivery of, or the compliance with the Loan Documents, or the conditions described herein, including the execution and delivery
of additional documents reasonably requested by Lender.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">6.9.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Events with Respect to ERISA</U>: As soon as possible and in any event within thirty (30) days after Borrower knows or
has reason to know that any reportable event described in Sections 4042(a) or 4043(b) of ERISA with respect to any employee pension
or other benefit plan or trust maintained by or related to Borrower has occurred, or that PBGC has instituted or will institute
proceedings under ERISA to terminate any such plan, Borrower will deliver to Lender (a) a certificate of an officer of Borrower
setting forth details as to such event and the action which Borrower proposes to take with respect thereto, and (b) a copy of any
notice delivered by PBGC evidencing its intent to institute such proceedings. For all purposes of this covenant, Borrower shall
be deemed to have all knowledge or knowledge of all facts attributable to the plan administrator of such plan under ERISA. Borrower
will furnish to Lender (or cause such plan administrator to furnish to Lender) the annual report for each plan covered by ERISA
maintained by or related to Borrower as filed with the Secretary of Labor not later than ten (10) days after the receipt of a request
from Lender in writing for such report.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">6.10.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Other Notifications</U>: Borrower will notify Lender as soon as practicable, but in any event within five (5) business
days after Borrower knows or has reason to know that any of the following has occurred: (a) an Event of Default; (b) any material
adverse change in the nature of or property comprising the Mortgaged Property; and (c) any change in the accounting practices and
procedures of Borrower, including a change in the financial conditions, business or operations of Borrower.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">6.11.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Compliance with Organizational Documents</U>: Borrower shall timely perform all of its responsibilities and obligations
under the Borrower&#8217;s Articles of Organization, Operating Agreement and any other documents now or hereafter evidencing Borrower.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">6.12.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Completion of Development</U>: Borrower shall complete the work of the Development on or before July 30, 2021 (the &#8220;Completion
Date&#8221;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: 0in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">6.13.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT> <U>Regulatory Compliance</U>: Borrower shall at all times cause the Development to remain in full compliance with all required
equity thresholds and capital retention obligations set forth in Part 217 of Chapter II of title 12 of the Code of Federal Regulations
(HVCRE regulations) such that the Development would not, in the determination of Lender need to be classified as High Volatility
Commercial Real Estate.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">6.14.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Continuity of Construction</U>: Borrower shall prosecute with diligence and continuity the construction of the work and
improvements and will not suspend or cease construction for a period longer than thirty (30) days. Borrower&#8217;s obligation
under this provision shall be subject to exception due to events of Force Majeure Delay. &quot;Force Majeure Delay&quot; shall
mean a delay in progress of construction due to weather, act of God, unavailability or shortage of labor or materials, national
emergency, fire or other casualty, natural disaster, war, delays or actions of governmental authorities or utilities, riots, acts
of violence, labor strike, injunctions in connection with litigation, or other cause which is not within the reasonable control
of Borrower. Force Majeure Delay does not include the failure to order and obtain materials in a timely fashion for the continuous
development of the Development and does not include financial difficulties of the Borrower.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">7.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>BORROWER&#8217;S NEGATIVE COVENANTS</U>: Until payment in full of the Loan and unless Lender shall otherwise consent
in writing, Borrower will not perform or permit to be performed any of the following acts:</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">7.1.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Creation or Existence of Liens</U>: Borrower shall not create, assume or suffer to exist any mortgage, pledge, lien,
charge or encumbrance on the Mortgaged Property without the prior approval of Lender, excluding only: (a) encumbrances in favor
of the Lender; (b) deposits to secure payment of workmen&#8217;s compensation, unemployment insurance and similar benefits; (c)
statutory liens, against which there are established reserves in accordance with generally accepted accounting principles, and
which arise in the ordinary course of Borrower&#8217;s business and secure current obligations of Borrower which are not in default;
(d) liens for property taxes not yet due; and (e) such matters reflected in the mortgagee policy of title insurance and in the
Mortgage. Lender understands and approves Borrower recording on the Mortgaged Property: (i) one Final Plat (as defined below) of
the Mortgaged Property which may contain grants of easements, dedications of right-of-way and other encumbrances necessary to create
the subdivided Lots; (ii) a declaration of covenants, conditions and restrictions applicable to the Mortgaged Property which includes
the creation of a homeowner&#8217;s association and architectural review provisions; and (iii) private improvement covenants creating
monthly levies on the Lots for the reimbursement of certain infrastructure costs and expenses.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">7.2.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Transfer of Mortgaged Property</U>: Borrower shall not sell, transfer or convey all or any portion of the Mortgaged
Property except as permitted by this Agreement; and the Borrower shall not transfer, whether voluntarily or involuntarily, sell
or assign more than 50% of the ownership interest of Borrower without the prior consent of Lender. If Borrower transfers, whether
voluntarily or involuntarily, sells or assigns any of the ownership interest of Borrower, Borrower will give written notice to
Lender of the percentage of ownership interest transferred, sold or assigned and the parties to whom the ownership interest was
transferred, sold or assigned within ten (10) days of the effective date of the transfer, sale or assignment.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">7.3.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Use of Loan Proceeds</U>: Borrower shall not use or permit any related person, association or entity to use any funds
advanced to Borrower under this Agreement to (a) defray living expenses, (b) anticipate profit, or (c) defray any other items not
directly connected with the costs of the Development and payable to unrelated third parties.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">7.4.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Modification of Organizational Documents</U>: Borrower shall not participate in, suffer or permit the material amendment,
modification, restatement, cancellation or termination of any document now or hereafter evidencing Borrower, including, without
limitation, the Borrower&#8217;s Articles of Organization or Operating Agreement, without the prior consent of Lender, which consent
will not be unreasonably withheld.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">7.5.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Limitation on Distributions</U>: Except as otherwise provided herein, and if no Default or Event of Default has occurred
and is continuing, Borrower may make distributions of cash or property to its partners or otherwise make distributions on the account
of equity interests in the Borrower, provided, however, that no such distribution would (a) cause Borrower to be in default of
any covenant contained herein or in the Loan Documents, or (b) cause Borrower&#8217;s net equity investment in the Development,
as determined by Lender, to be less than fifteen percent (15%).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">8.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>ADMINISTRATION OF LOAN</U>: NOTWITHSTANDING ANY LANGUAGE IN THIS AGREEMENT SEEMINGLY TO THE CONTRARY, BORROWER SHALL
NOT BE ENTITLED TO ANY DISBURSEMENT OF LOAN PROCEEDS HEREUNDER UNLESS AND UNTIL BORROWER HAS SATISFIED ALL OF THE CONDITIONS OF
LENDING SET FORTH THIS AGREEMENT. LENDER SHALL MAKE DISBURSEMENTS UNDER THE LOAN IN THE FOLLOWING MANNER:</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">8.1.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Purpose</U>: The principal sum to be disbursed under the Note shall be used only to pay development costs as shown in
the Development Budget (the &#8220;Development Costs&#8221;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">8.2.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Compliance with Development Budget</U>: Notwithstanding any language in this Agreement seemingly to the contrary, all
disbursements under this Agreement and the Note shall be made in accordance with the Development Budget. Deviations from the Development
Budget must be approved in advance in writing by Lender, which approval shall not be unreasonably withheld. The Development Budget
will be monitored monthly on a category-by-category basis. If Development Costs in an individual category exceed the amount budgeted
therefore (plus ten percent (10%) thereof as contained in the contingency line item) in the Development Budget, then Borrower shall
pay from sources other than the Loan the entire excess, unless a budgetary savings in the same or greater amount is realized in
a different category as reasonably determined by Lender.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: 0in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">8.3.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT> <U>Request for Funds</U>: Borrower shall deliver to Lender a request for funds (a &#8220;Request for Funds&#8221;) stating
the amount of disbursement requested under the Note. The Request for Funds shall be made on the AIA form G702 Application and Certificate
for Payment, and as applicable, an AIA form G703 Continuation Sheet and shall be delivered to Lender at least five (5) business
days before the requested date of disbursement, properly completed and signed by Borrower&#8217;s contractor and reviewed by Tierra
West, LLC (the &#8220;Engineer/Inspector&#8221;). At the option of Lender, all Requests for Funds shall be supported by copies
of bills or statements for all expenses for which a disbursement is requested. Borrower agrees that Lender may disburse automatically
from the Loan an amount sufficient to pay each payment of interest required by the Note, on its due date or any date thereafter
as Lender may choose, provided that such payment of interest has not been theretofore paid by Borrower.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">8.4.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Information</U>: The Request for Funds shall be accompanied by:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">8.4.1.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>a Development Budget spreadsheet detailing the requested disbursement and remaining balance to fund;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">8.4.2.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>if Lender requires, a list of Hard Costs, broken down by subcontractor, to be paid from the requested disbursement and copies
of all invoices for each Hard Cost item in excess of Five Thousand and No/100 Dollars ($5,000.00). &#8220;Hard Costs&#8221; are
all of the costs for the visible improvements, including without limitation grading, excavation, concrete, sidewalks, roads, utilities,
and landscaping;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">8.4.3.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>a list of Soft Costs to be paid from the requested disbursement and copies of the invoices for each Soft Cost item in excess
of Five Thousand and No/100 Dollars ($5,000.00). &#8220;Soft Costs&#8221; are all costs that are not Hard Costs;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">8.4.4.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>copies of all current and pending change orders (AIA Form G701 or equivalent);</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">8.4.5.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>copies of executed conditional lien waivers from the general contractor for the current disbursement. In cases where the
general contractor is owned/controlled by the Borrower, conditional lien waivers for the current disbursement are required for
each major subcontractor;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">8.4.6.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>copies of executed unconditional lien waivers from the general contractor for previous disbursements. In cases where the
general contractor is owned/controlled by the Borrower, unconditional lien waivers for previous disbursements are required for
each major subcontractor;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">8.4.7.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>if requested by Lender, a report by the Engineer/Inspector which shall specify the estimated percentage of completion of
the Development, together with detailed comments on the specific work performed since the date of the last report rendered to Lender;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">8.4.8.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT>an
endorsement to the title insurance policy, extending the effective date of the policy to the date of the endorsement, showing
no liens of record or additional encumbrances not acceptable to the Lender, and increasing the effective amount of the
coverage to the total amount outstanding under the Note;</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">8.4.9.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>unless provided with a previous Request for Funds, a copy of the permit applicable to the work covered by the Request for
Funds issued by Bernalillo County, New Mexico or other governmental authority; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">8.4.10.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>Such other information as Lender may reasonably request.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">8.5.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Lender&#8217;s Inspection</U>: Lender shall engage the Engineer/Inspector, at Borrower&#8217;s sole cost and expense,
to review each Request for Funds and make an examination of the Development for the benefit of Lender prior to Lender making any
advance. Regardless of inspections by the Engineer/Inspector or Lender&#8217;s representatives, Lender shall have no responsibility,
obligation or liability to Borrower or any other individual or entity based on, arising from or relating to any such inspections,
and Borrower shall at all times have exclusive control over work on the Development and sole responsibility for compliance with
all governmental, quasi-governmental and private laws, ordinances, rules, regulations, codes, covenants, restrictions, easements
and other matters which control, burden, apply to or otherwise affect the Mortgaged Property and/or the Development.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">8.6.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Disbursements</U>: The Lender shall, on the date the requested advance is to be made or as soon thereafter as all conditions
precedent to such advance have been satisfactorily met in all material respects, deposit into an account at Lender designated by
Borrower such advance. Advances under the Note may, at the option of the Lender, be recorded on the Note and/or by deposits to
the foregoing account, and such records shall be conclusive evidence of all advances made under the Note. Notwithstanding the foregoing
disbursement procedure, upon the occurrence of an Event of Default (defined below), the Lender may, at its discretion, until such
Event of Default is cured or for so long as required by the title company issuing the loan title insurance required hereunder,
make disbursements to itself for all sums payable by Borrower to Lender, make disbursements to the appropriate taxing authority
to pay all unpaid taxes, make payments directly to insurers for all premiums due on insurance policies required hereunder, and
make all other disbursements to a title company escrow account, and such title company will draw checks on such account for payment
of the items approved by Lender. Any expense incurred because of the disbursement through a controlled title company escrow account
shall be paid by Borrower.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">8.7.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><U>Development
Budget Overrun</U>: In the event the Lender determines, at any time, that the total cost of completing the Development free
of liens and encumbrances, other than those in favor of the Lender contemplated hereby will, in the reasonable judgment of
the Lender, exceed the available and undisbursed balance of the loan described herein, the Lender may cease making advances
and/or require further security for the payment of the indebtedness evidenced by the Note by requiring the Borrower to post
additional collateral satisfactory to Lender, and/or by requiring Borrower to make cash deposits with Lender to be held in an
account with Lender sufficient in amount to cover such estimated excess cost of completing the Development. For the purpose
of this paragraph, the cost of completion shall be deemed to include, without limitation the following: costs of labor and
materials, site and off-site improvements, amounts paid to contractors, landscaping, professional fees, taxes on the
Mortgaged Property, premiums for bonds, if any, survey costs, appraisal fees, recording costs, interest on the Note, all
amounts reimbursable to the Lender for reasonable expenses incurred hereunder, and the costs of all items necessary to the
proper completion of the Development.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">8.8.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Termination of Advances</U>: At the option of the Lender, monthly advances shall not be made unless: (a) the Loan Documents
are in full force and effect; and (b) an Event of Default does not exist and would not exist but for the giving of notice or the
passage of time under the terms of the Loan Documents.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">9.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>[RESERVED]</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">10.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>DEFAULT</U>: The Events of Default listed in the Mortgage are incorporated in this Agreement by reference and made a
part of this Agreement and shall constitute &#8220;Events of Default&#8221; hereunder and under each of the other Loan Documents
executed pursuant to this Agreement. In addition, the failure by Guarantor to provide the financial statements required by the
Guaranty within thirty (30) days from the date of written notice from Lender or the failure by Guarantor to maintain the net worth
required by the Guaranty shall each be an &#8220;Event of Default&#8221; under this Agreement and under each of the other Loan
Documents.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">11.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>REMEDIES</U>: Upon the occurrence of an Event of Default and continuation thereof and the failure by Borrower to cure
such Event of Default after such notice of the Event of Default and such opportunity to cure the Event of Default as may be required
by the Mortgage, Lender may, at its option:</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">11.1.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Acceleration of the Note</U>: Declare the Note to be immediately due and payable whereupon the Note shall become forthwith
due and payable without presentment, demand, protest or further notice of any kind, and the Lender shall be entitled to proceed
simultaneously or selectively and successively to enforce its rights under the Note, this Agreement and any of the Loan Documents
executed pursuant to the terms hereof, or any note or all of them. Nothing contained herein shall limit Lender&#8217;s rights and
remedies available under applicable laws.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">11.2.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Selective Enforcement</U>: In the event the Lender shall elect to selectively and successively enforce its rights under
any of the Loan Documents, such action shall not be deemed a waiver or discharge of any other lien, encumbrance or security instrument
securing payment of the Note until such time as the Lender shall have been paid in full all sums advanced under the Note. The foreclosure
of any lien provided pursuant to this Agreement without the simultaneous foreclosure of all such liens shall not merge the liens
granted which are not foreclosed with any interest which the Lender might obtain as a result of such elective and successive foreclosure.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: 0in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">12.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT> <U>GENERAL PROVISIONS</U>: Lender and Borrower further agree as follows:</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">12.1.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Expenses</U>: Borrower agrees to pay all reasonable fees, expenses and charges in respect to the Loan contemplated by
this Agreement, including, without limiting the generality thereof, the following: reasonable fees and expenses of counsel employed
by Lender in connection with drafting and negotiating documents and closing of the Loan up to $4,000.00, plus New Mexico Gross
Receipts Tax, and all reasonable fees and expenses of counsel employed by Lender in regard to any litigation arising out of or
relating to this transaction in which Lender is the prevailing party; title insurance premiums and all expenses incidental to title
insurance and title evidence; recording and filing fees; reasonable fees and expenses of any appraiser who appraises the Mortgaged
Property for Lender limited, in the absence of an Event of Default, to not more than twice during the term of the Loan; reasonable
fees and expenses of the environmental engineering firm which provides the required environmental assessment report to Lender at
the closing of the Loan up to a maximum of two thousand dollars ($2,000.00) and any environmental assessment report required by
federal law; reasonable fees and expenses of the Engineer/Inspector in connection with the construction phase of the Development;
and other reasonable fees and expenses involved in the closing of this loan and the reasonable fees and expenses payable by Lender
which are incidental to the enforcement or defense of this Agreement or any of the other Loan Documents.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">12.2.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Notices</U>: Any notices or other communications required or permitted hereunder shall be sufficiently given if delivered
personally via a national overnight delivery service or sent by registered or certified mail, postage prepaid, return receipt requested
and addressed as listed below or to such other address as the party concerned may substitute by written notice to the other. All
notices shall be deemed received: (i) on the date of delivery if personally delivered; (ii) on the day following timely deposit
with an overnight delivery service; or (iii) within three (3) days (excluding Saturdays, Sundays and holidays recognized by national
banking associations) after being mailed:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 2in; text-align: left">To Borrower:</TD><TD STYLE="text-align: justify">Lavender Fields, LLC</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 2.5in">333 Rio Rancho Drive,
Suite 202</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 2.5in">Rio Rancho, New Mexico
87124</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 2.5in">Attention: Vice President</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 2in; text-align: left">To Lender:</TD><TD STYLE="text-align: justify">BOKF, NA dba Bank of Albuquerque</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 2.5in">100 Sun Avenue NE,
Suite 500</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 2.5in">Albuquerque, New Mexico
87109</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 2.5in">Attention: Jordan Herrington,
Vice President</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">12.3.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><U>Amendment
and Waiver</U>: This Agreement may not be amended or modified in any way, except by an instrument in writing executed by both
parties hereto; provided, however, Lender may, in writing: (a) extend the time for performance of any of the obligations of
Borrower; (b) waive any Event of Default by Borrower; and (c) waive the satisfaction of any condition that is precedent to
the performance of Lender&#8217;s obligations under this Agreement. In the event of Lender&#8217;s waiver of an Event of
Default, such specific Event of Default shall be deemed to have been cured and not continuing, but no such waiver shall
extend to any subsequent or other Event of Default or impair any consequence of such subsequent or other Event of
Default.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">12.4.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Non-Waiver; Cumulative Remedies</U>: No failure on the part of Lender to exercise and no delay in exercising any right
hereunder shall operate as a waiver thereof, nor shall any single or partial exercise by Lender of any right hereunder preclude
any other or further right of exercise thereof. The remedies herein provided are cumulative and not alternative.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">12.5.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Assignment</U>: Neither this Agreement, nor the loan proceeds hereunder, shall be assignable by Borrower without the
prior written consent of Lender.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><B>12.6.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT></B><U>Applicable Law</U>: <B>THIS AGREEMENT AND EACH OTHER LOAN DOCUMENT, AND ALL MATTERS RELATING HERETO OR THERETO OR
ARISING THEREFROM (WHETHER SOUNDING IN CONTRACT LAW, TORT LAW OR OTHERWISE), SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED
IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW MEXICO, WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES. BORROWER AND LENDER HEREBY
CONSENT TO THE JURISDICTION OF ANY STATE OR FEDERAL COURT LOCATED WITHIN THE COUNTY OF BERNALILLO, STATE OF NEW MEXICO, AND IRREVOCABLY
AGREE THAT ALL ACTIONS OR PROCEEDINGS ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE OTHER LOAN DOCUMENTS SHALL BE LITIGATED
IN SUCH COURTS. BORROWER AND LENDER EXPRESSLY SUBMIT AND CONSENT TO THE JURISDICTION OF THE AFORESAID COURTS AND WAIVE ANY DEFENSE
OF FORUM NON CONVENIENS. </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">12.7.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Descriptive Headings</U>: The descriptive headings of the paragraphs of this Agreement are for convenience only and shall
not be used in the construction of the terms hereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">12.8.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Terms</U>: As used in this Agreement the singular shall be deemed to include the plural and the plural shall be deemed
to include the singular.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">12.9.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Integrated Agreement</U>: THIS AGREEMENT AND OTHER LOAN DOCUMENTS EMBODY THE FINAL, ENTIRE AGREEMENT AMONG THE PARTIES
HERETO AND SUPERSEDE ANY AND ALL PRIOR COMMITMENTS, AGREEMENTS, REPRESENTATIONS AND UNDERSTANDINGS, WHETHER WRITTEN OR ORAL, RELATING
TO THE SUBJECT MATTER HEREOF AND THEREOF AND MAY NOT BE CONTRADICTED OR VARIED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT
ORAL AGREEMENTS OR DISCUSSIONS OF THE PARTIES HERETO. THERE ARE NO ORAL AGREEMENTS AMONG THE PARTIES HERETO.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">12.10.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Time of Essence</U>: Time is of the essence of this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">12.11.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Binding Effect</U>: This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective
successors, legal representatives and assigns. The obligations of Borrower under this Agreement are joint and several.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">12.12.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT> <U>Third Party Beneficiary</U>: Nothing in this Agreement, express or implied, is intended to confer upon any person other
than the parties hereto and their respective successors and assigns, any rights or remedies under or by reason of this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">12.13.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Right to Defend</U>: Lender shall have the right, but not the obligation, at Borrower&#8217;s expense, to commence, to
appear in or to defend any action or proceeding (initiated by a third party against Borrower) purporting to affect the rights or
duties of the parties hereunder and in connection therewith pay out of the funds of the Loan all necessary expenses, including
reasonable fees of counsel, if Borrower fails to so commence, appear in or defend any such action or proceeding with counsel satisfactory
to Lender.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">12.14.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Indemnification</U>: Borrower agrees to indemnify, defend and hold Lender harmless from and against any loss, cost or
expense (including interest, penalties, reasonable attorneys&#8217; fees and amounts paid in settlement) caused by Borrower&#8217;s
negligence, breach or wrongful actions arising out of or based upon the Loan Documents or the Loan, except and to the extent caused
by Lender&#8217;s negligence, breach, wrongful actions, gross negligence or willful misconduct.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">12.15.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Waiver of Jury Trial</U>. <B>EACH OF BORROWER AND LENDER HEREBY IRREVOCABLY WAIVE ANY AND ALL RIGHT TO TRIAL BY JURY
IN ANY LEGAL ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THE LOAN DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED THEREBY AND
AGREE THAT ANY SUCH ACTION OR PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY. EACH OF BORROWER AND LENDER ACKNOWLEDGE
THAT THIS WAIVER IS A MATERIAL INDUCEMENT TO ENTER INTO A BUSINESS RELATIONSHIP THAT EACH HAS RELIED ON THE WAIVER IN ENTERING
INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS, AND THAT EACH SHALL CONTINUE TO RELY ON THIS WAIVER IN THEIR RELATED FUTURE DEALINGS.
EACH OF BORROWER AND LENDER WARRANT AND REPRESENT THAT EACH HAS HAD THE OPPORTUNITY OF REVIEWING THIS JURY WAIVER WITH LEGAL COUNSEL,
AND THAT EACH KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">12.16.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Joint and Several Obligations</U>. If Borrower consists of more than one party, all representations, warranties, covenants,
agreements and undertakings of such parties under this Agreement shall be deemed joint and several. Whenever the context requires,
the representations, warranties, liabilities, covenants, agreements and undertakings contained in this Agreement shall be deemed
to have been individually given by each of the parties constituting Borrower.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">13.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><U>PARTIAL
RELEASES</U>. From time to time, after the recording of the Final Plat (defined below) in the real property records of
Bernalillo County, New Mexico until the Maturity Date (defined in the Note), Lender shall release one or more Lots (defined
below) from the lien of the Mortgage and from the UCC Financing Statement as provided in this Agreement. A request for
release (a &#8220;Request&#8221;) must identify the Lot or Lots to be released and be made to Lender not less than five (5)
Business Days prior to the requested release date. A &#8220;Business Day&#8221; is any day in which the Lender is open for
business. The release price (the &#8220;Release Price&#8221;) for each Lot shall be Sixty-Five Thousand Seven Hundred Fifty
and No/100 Dollars ($65,750.00). The Release Price must be delivered to the Lender in immediately available funds no later
than 1:00 p.m. New Mexico time on the requested release date. In addition, Borrower has received approval for a preliminary
plat for the Mortgaged Property from Bernalillo County, New Mexico, which plat the Lender has previously reviewed and
approved (the &#8220;Lender Approved Preliminary Plat&#8221;) and which will become final plat (the &#8220;Final
Plat&#8221;). Borrower will not materially change the Lender Approved Preliminary Plat without the prior written approval of
Lender. Upon substantial completion of the Lots, Borrower shall record one or more Final Plats for the Mortgaged Property.
Each Final Plat may contain land dedicated to Bernalillo County, New Mexico or other governmental entity. To the extent any
Final Plat contains land dedicated, granted or conveyed to a governmental entity, the Lender shall execute a partial release
with regard to such land without charge. Lender further agrees to execute a partial release without charge with regard to
Tract B-1, as such is shown and described on the Lender Approved Preliminary Plat. As used in this Agreement, the term
 &#8220;Lot&#8221; means a lot shown on the Lender Approved Preliminary Plat. Notwithstanding anything to the contrary
contained in this Agreement or in any of the Loan Documents, Lender shall not be required or obligated to release any Lot if
an Event of Default Exists or would exist but for the giving of notice or the lapse of time. Unless an Event of Default
exists or would exist but for the giving of notice of the passage of time, the Release Price shall be applied to the
outstanding principal balance of the Note.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">14.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>REAPPRAISAL</U>. If, as determined in Lender&#8217;s reasonable discretion, there has been a material deterioration in
the value of the Mortgaged Property, Lender shall be entitled, at the expense of Borrower, not more frequently than once every
twelve (12) months, to obtain a re-appraisal of the Mortgaged Property. If such re-appraisal confirms a material deterioration
in the value of the Mortgaged Property compared with the value shown in the previous appraisal on file with Lender, which deterioration
causes Borrower to be in violation of any covenants contained in the Loan Documents, Lender may, at Lender&#8217;s option, require
Borrower to make an additional payment of principal sufficient to bring Borrower into compliance with such covenants.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">15.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>WAIVER OF SET-OFF</U>. Lender hereby waives all rights of set-off Lender has under New Mexico law or the Loan Documents
against any and all deposits held by Lender in the name of Borrower. Lender does not waive any other rights or remedies of Lender
under New Mexico law or the Loan Documents.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in">[SIGNATURES ON NEXT PAGE]</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">IN WITNESS WHEREOF,
the parties have caused this instrument to be duly executed effective as of (but not necessarily on) the day and year first above
written.</P>

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<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif">&#8220;BORROWER&#8221;:</TD>
    <TD COLSPAN="2" STYLE="font: 10pt Times New Roman, Times, Serif">LAVENDER FIELDS, LLC,</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: 10pt Times New Roman, Times, Serif">a New Mexico limited liability company</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 50%">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%">By</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-indent: 0.25in; font: 10pt Times New Roman, Times, Serif; width: 49%">/s/ Carey A. Plant</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0.25in">Carey Plant, Vice President</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif">&#8220;LENDER&#8221;:</TD>
    <TD COLSPAN="2" STYLE="font: 10pt Times New Roman, Times, Serif">BOKF, NA dba BANK OF ALBUQUERQUE</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif">By:</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-indent: 0.25in; font: 10pt Times New Roman, Times, Serif">/s/ Jordan Herrington</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0.25in">Jordan Herrington, Vice President</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; text-align: center"><B><U>EXHIBIT &#8220;A&#8221;<BR>
</U>Legal Description</B></P>

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

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Tracts &quot;A&quot;, &quot;B&quot;, &quot;C&quot; and &quot;D&quot;
of Meso Am, Bernalillo County, New Mexico, as the same are shown and designated on the Plat thereof, filed in the office of the
County Clerk of Bernalillo County, New Mexico on October 22, 2013 in Plat Book 2013C, Page 119 as Document No. 2013116380, re-recorded
November 4, 2013 in Plat Book 2013C, Page 123 as Document No. 2013120726.</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"></P>

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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.4
<SEQUENCE>5
<FILENAME>tm2022915d1_ex10-4.htm
<DESCRIPTION>EXHIBIT 10.4
<TEXT>
<HTML>
<HEAD>
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<BODY STYLE="font: 10pt Times New Roman, Times, Serif">



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

<P STYLE="margin: 0pt; text-align: right"><B>Exhibit 10.4</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><U>NON-REVOLVING LINE OF CREDIT<BR>
PROMISSORY NOTE</U></B></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 50%">$3,750,000.00</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right; width: 50%">June 19, 2020</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif">Note #__________</TD>
    <TD STYLE="text-align: right; font: 10pt Times New Roman, Times, Serif">Albuquerque, New Mexico</TD></TR>
</TABLE>


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">FOR VALUE RECEIVED,
the undersigned Lavender Fields, LLC, a New Mexico limited liability company (&#8220;Maker&#8221;), hereby promises to pay to the
order of BOKF, NA dba Bank of Albuquerque (&#8220;Lender&#8221;), at its office located at 100 Sun Avenue NE, Suite 500, Albuquerque,
New Mexico 87109, or at such other place as may be designated in writing by the holder of this Non-Revolving Line of Credit Promissory
Note (&#8220;Note&#8221;), the principal sum of Three Million Seven Hundred Fifty Thousand and No/100 Dollars ($3,750,000.00),
or so much thereof as shall be disbursed hereunder, together with interest thereon at the rates specified in this Note, payable
as set forth herein.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">1.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Definitions</U>. As used in this Note, the following terms shall have the meanings indicated for each:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">A.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>&#8220;Event of Default&#8221;</U> shall have the meaning ascribed to such term in the Mortgage, including without limitation
a default in payment or performance under this Note.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">B.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>&#8220;Interest Rate&#8221;</U> shall mean from and following the closing date, the loan and the other obligations shall
bear interest at LIBOR (defined below) plus three hundred (300) basis points, as calculated in accordance with paragraph 5 below;
<U>provided, however, in no event will the Interest Rate be lower than three and three quarters of one percent (3.75%)</U>. The
Interest Rate is not necessarily the lowest rate charged by Lender on its loans. If the Interest Rate becomes unavailable during
the term of the Loan, Lender may designate a comparable substitute index after notifying Maker. Notwithstanding any language herein
seemingly to the contrary: (a) Maker shall not be obligated to pay in excess of the maximum interest rate permitted by law for
any interest payment period; and (b) upon the occurrence of an Event of Default, at the option of the holder of this Note, interest
will accrue at the Default Rate of interest hereafter specified.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">C.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT>&#8220;<U>LIBOR</U>&#8221;
shall mean a rate (expressed to the fifth decimal place) equal to (i) the rate of interest which is identified and normally
published by ICE Benchmark Administration (or any other Person that takes over the administration of such rate for United
States dollars) for loans in United States dollars for thirty (30) day periods as of 11:00 a.m. (London time), on the first
of each month (or if such day is not a Business Day, the immediately preceding Business Day) plus (ii) the maximum reserve
requirement, if any, then imposed under Regulation D of the Board of Governors of the Federal Reserve System (or any
successor thereto) for &#8220;Eurocurrency Liabilities&#8221; (as defined therein); provided, however, that if LIBOR
determined as provided above shall be less than zero, LIBOR shall be deemed to be zero for the purposes of this Agreement.
Notwithstanding the foregoing, if at any time Lender determines (which determination shall be conclusive absent manifest
error) that (a) ICE Benchmark Administration no longer reports LIBOR, (b) LIBOR is no longer a widely recognized benchmark
rate for newly originated loans in the U.S. commercial or syndicated loan market, (c) the applicable supervisor or
administrator (if any) of any applicable interest rate specified herein or any governmental authority having or purporting to
have jurisdiction over Lender has made a public statement identifying a specific date after which LIBOR shall no longer be
used for determining interest rates for loans in the U.S. commercial or syndicated loan market, or (d) Lender determines in
good faith that the rate so reported no longer accurately reflects the rate available to Lender in the London Interbank
Market; or (e) if such index no longer exists (or accurately reflects the rate available to Lender in the London Interbank
Market), then Lender may establish a replacement interest rate, including any necessary adjustments to any applicable margin
(the &#8220;Replacement Rate&#8221;), in which case, the Replacement Rate shall replace LIBOR and such applicable interest
rate for all purposes under this Note and the other Loan Documents unless and until (A) an event described in clauses (i)
through (iv) occurs with respect to the Replacement Rate or (B) the Lender notifies the Maker that the Replacement Rate does
not adequately and fairly reflect the cost to the Lender of funding loans bearing interest at the Replacement Rate. In
connection with the establishment and application of the Replacement Rate, and notwithstanding anything to the contrary as
may be set forth in Section 12.3 of the Loan Agreement, this Note and the other Loan Documents shall be amended as may be
necessary or appropriate, in consultation with Maker (but in the sole opinion of the Lender), to effect the above provisions
and the implementation of the Replacement Rate and, without limitation of Maker&#8217;s covenant under Section 6.8 of the
Loan Agreement. Maker consents to any such necessary or appropriate amendments.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: 0in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">D.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>&#8220;Loan&#8221;</U> shall mean the loan evidenced by this Note.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">E.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>&#8220;Loan Agreement&#8221;</U> shall mean the certain Development Loan Agreement dated the same date as this Note,
between Lender and Maker and pursuant to which this Note is executed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">F.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>&#8220;Maturity Date&#8221;</U> shall mean June 19, 2024, or such earlier date on which the entire unpaid principal balance
of this Note shall be paid or required to be paid in full, whether by prepayment, acceleration or otherwise.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">G.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>&#8220;Mortgage&#8221;</U> shall mean the certain Mortgage, Security Agreement and Financing Statement, dated the same
date as this Note, executed by Maker for the benefit of Lender, and securing, among other things, payment of this Note, as supplemented,
modified and amended.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">2.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Draw Note</U>. This Note evidences a loan that may be advanced in more than one advance during the term of this Note.
This Note does not evidence a revolving line of credit. Maker acknowledges and agrees that it does not have the right under this
Note to borrow, pay and re-borrow the loan proceeds. The loan evidenced by this Note shall be disbursed in accordance with the
provisions of the Loan Agreement.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">3.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><U>Payments</U>.
Maker shall make monthly payments of interest only on the Nineteenth (19<SUP>th</SUP>) day of each month beginning on July
19, 2020, and continuing on the Nineteenth (19<SUP>th</SUP>) day of each month thereafter through and including May 19, 2024.
On the Maturity Date, Maker shall make one final payment of all accrued and unpaid principal and interest and any other
unpaid sums. Upon the occurrence of an Event of Default, at the option of the holder of this Note, interest shall accrue at
the Default Rate. IN NO EVENT SHALL THE SUM TOTAL OF ALL ADVANCES ON THE NOTE EXCEED THE FACE AMOUNT OF THE NOTE.</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition, Maker
shall make the following required principal payments (the &#8220;Curtailment Payments&#8221;) to Lender: (i) Six Hundred Fifty-Seven
Thousand Five Hundred and No/100 Dollars ($657,500.00), on or before March 19, 2022; (ii) Three Hundred Ninety-Four Thousand Five
Hundred and No/100 Dollars ($394,500.00) on or before June 19, 2022; (iii) Three Hundred Ninety-Four Thousand Five Hundred and
No/100 Dollars ($394,500.00) on or before September 19, 2022; (iv) Three Hundred Ninety-Four Thousand Five Hundred and No/100 Dollars
($394,500.00) on or before December 19, 2022; (v) Three Hundred Ninety-Four Thousand Five Hundred and No/100 Dollars ($394,500.00)
on or before March 19, 2023; (vi) Three Hundred Ninety-Four Thousand Five Hundred and No/100 Dollars ($394,500.00) on or before
June 19, 2023; (vii) Three Hundred Ninety-Four Thousand Five Hundred and No/100 Dollars ($394,500.00) on or before September 19,
2023; (viii) Three Hundred Ninety-Four Thousand Five Hundred and No/100 Dollars ($394,500.00) on or before December 19, 2023; and
(ix) Three Hundred Thirty-One Thousand and No/100 Dollars ($331,000.00) on or before March 19, 2024. Payments of the Release Price
(defined in the Loan Agreement) to Lender shall be credited towards the Curtailment Payments.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">4.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Loan Origination Fee</U>. On the date this Note is signed, Maker will pay to Lender a loan origination fee of one-half
of one percent (1/2%) of the face amount of this Note.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">5.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Computation of Interest and Related Fees</U>. Interest due under this Note shall be calculated on the unpaid principal
to the date of each installment paid, and each payment of principal and/or interest made hereunder shall be credited first to the
discharge of interest, and the balance shall be credited to the unpaid principal sum. All payments of interest shall be computed
on the per annum basis of a year consisting of three hundred sixty (360) days and for the actual number of days elapsed (including
the first day, but excluding the last if payment is received by the holder of this Note by 1:00 p.m. New Mexico time). In addition
to any other means of payment, Maker shall have the right to make payments by wire transfer or ACH directly to Lender. Within ten
(10) days after written request by Maker, Lender shall provide wiring and ACH instructions to Maker for all payments due pursuant
to the Loan.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">6.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><U>Default
Interest</U>. Subject to the notice and cure provisions contained in the Mortgage, while any Event of Default exists in the
making of any of the payments herein provided to be made, or in the performance or observance of any of the terms, covenants
or conditions of the Loan Agreement, this Note, the Mortgage or of any instrument now or hereafter securing payment of the
indebtedness evidenced by this Note, at the option of the holder of this Note, in its sole discretion, the entire unpaid
principal balance hereof shall bear interest at the rate per annum equal to the applicable interest rate, adjusted as of the
date of any change therein, plus five percent (5%) per annum (the &#8220;Default Rate&#8221;). Notwithstanding the foregoing,
if Lender determines pursuant to paragraph 15.6 of the Mortgage, that the Loan evidenced by this Note is required to be
classified as high volatility commercial real estate, then the Interest Rate will be increased as provided in paragraph 15.6
of the Mortgage. During the existence of any such Event of Default, the holder of this Note may apply payments received on
any amounts due hereunder, or under the terms of any instrument now or hereafter evidencing or amounts due hereunder, or
under the terms of any instrument now or hereafter evidencing or securing such indebtedness, as the holder may determine, and
if the holder of this Note so elects, notice of election being expressly waived, the principal hereof remaining unpaid,
together with accrued interest, shall at once become due and payable. Any and all additional interest that has accrued at the
rate provided in this paragraph shall be due and payable at the time of, and as a condition precedent to, the curing of any
Event of Default.</P>

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">7.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Late Fees</U>. Subject to the notice and cure provisions contained in the Mortgage, to the extent any principal and interest
due under this Note is not paid within fifteen (15) calendar days of the due date therefore, and, to the extent that the following
described fee is deemed to constitute interest, subject to paragraph 9 of this Note, in addition to any interest or other fees
and charges due hereunder or under this Note, Maker shall pay a late fee equal to the lesser of: (a) five percent (5%) of the amount
of the payment that was to have been made; or (ii) $400.00. Maker agrees that the charges set forth herein are reasonable compensation
to Lender for the acceptance and handling of such late payments.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">8.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Currency</U>. All sums called for, payable, or to be paid hereunder shall be paid in lawful money of the United States
of America, which, at the time of payment, is legal tender for the payment of public and private debts therein.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">9.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Pre-Payment</U>. This Note may be prepaid in whole or in part without penalty upon not less than two (2) business days&#8217;
advance written notice to the holder of this Note.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">10.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><U>Interest
Savings Clause</U>. All agreements between Maker and the holder of this Note are expressly limited so that in no event
whatsoever, whether by reason of disbursement of the proceeds hereof or otherwise, shall the amount of interest or loan
finance charge contracted for, charged or received by the holder of this Note exceed the highest lawful contractual rate of
interest or the maximum finance charge permissible under applicable federal or state law which a court of competent
jurisdiction, by final non-appealable order, determines to be applicable hereto. It is the intention of Maker and the holder
of this Note to conform strictly to applicable usury laws from time to time in force, and all agreements between Maker and
the holder of this Note, whether now existing or hereafter arising and whether oral or written, are hereby expressly limited
so that in no contingency or event whatsoever, whether by acceleration of the maturity hereof or otherwise, shall the amount
paid or agreed to be paid to the holder of this Note, or collected by the holder of this Note, for the use, forbearance or
detention of the money to be loaned hereunder or otherwise, or for the payment or performance of any covenant or obligation
contained herein or in the Mortgage or in any other document evidencing, securing or pertaining to the indebtedness evidenced
hereby, exceed the maximum amount permissible under applicable usury laws. If under any circumstances whatsoever fulfillment
of any provisions hereof or of the Mortgage or any other document evidencing, securing or pertaining to the indebtedness
evidenced hereby, at the time performance of such provision shall be due, shall involve transcending the limit of validity
prescribed or permitted by law, including judicial determination, then <U>ipso facto</U>, the obligation to be fulfilled
shall be reduced to the limit of such validity; and if under any circumstances the holder of this Note hereby shall ever
receive an amount deemed interest by applicable law which would exceed the highest lawful rate, such amount that would be
excessive interest under applicable usury laws shall be applied to the reduction of the principal amount owing hereunder or
to other indebtedness secured by the Mortgage and not to the payment of interest, or if such excessive interest exceeds the
unpaid balance of principal and other indebtedness, the excess shall be deemed to have been a payment made by mistake and
shall be refunded to Maker or to any other person entitled thereto. All sums contracted for, charged or received by the
holder of this Note for the use, forbearance or detention of the indebtedness of Maker evidenced hereby, outstanding from
time to time shall, to the extent permitted by applicable law, be amortized, pro-rated, allocated and spread from the date of
disbursement of the proceeds of this Note until payment in full of such indebtedness so that the actual rate of interest on
account of such indebtedness is uniform through the term hereof. The terms and provisions of this paragraph shall control and
supersede every other provision of all agreements between the holder of this Note and Maker and any endorser or guarantor of
this Note.</P>

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

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">11.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Governing Law</U>. Payment of this Note is secured, without limitation, by the Mortgage, which covers real and personal
property located in Bernalillo County, New Mexico. <B>THIS NOTE AND EACH OTHER LOAN DOCUMENT (AS DEFINED IN THE LOAN AGREEMENT),
AND ALL MATTERS RELATING HERETO OR THERETO OR ARISING THEREFROM (WHETHER SOUNDING IN CONTRACT LAW, TORT LAW OR OTHERWISE), SHALL
BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW MEXICO, WITHOUT REGARD TO
CONFLICTS OF LAWS PRINCIPLES. MAKER HEREBY CONSENTS TO THE JURISDICTION OF ANY STATE OR FEDERAL COURT LOCATED WITHIN THE COUNTY
OF BERNALILLO, STATE OF NEW MEXICO, AND IRREVOCABLY AGREES THAT, SUBJECT TO LENDER&#8217;S ELECTION, ALL ACTIONS OR PROCEEDINGS
ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE OTHER RELATED DOCUMENTS SHALL BE LITIGATED IN SUCH COURTS. MAKER EXPRESSLY
SUBMITS AND CONSENTS TO THE JURISDICTION OF THE AFORESAID COURTS AND WAIVES ANY DEFENSE OF FORUM NON CONVENIENS. </B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">12.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><U>Remedies</U>.
Subject to the notice and cure provisions contained in the Mortgage, upon the occurrence or existence of any Event of
Default, the holder hereof may, without further notice, declare the entire unpaid principal balance of this Note and all
unpaid, accrued interest on this Note and all other obligations of the Maker to the holder of this Note, whether direct or
indirect, absolute or contingent, now existing or hereafter arising, immediately due and payable, without further notice or
demand, and the Maker shall pay all such sums and other obligations. Further, upon the occurrence or existence of any such
Event of Default, the holder of this Note shall be entitled to exercise any or all remedies provided or referenced in this
Note, the Loan Agreement, the Mortgage or any other instrument or agreement evidencing, securing or relating to the
indebtedness evidenced by this Note and any other rights and remedies under state or federal law. Failure to exercise any
such rights and remedies upon any Event of Default shall not constitute a waiver of any rights in the event of any subsequent
Event of Default. If this Note is placed in the hands of an attorney for collection or if collected through the probate
court, bankruptcy court, or by any other legal or judicial proceedings, the Maker agrees and is obligated to pay, in addition
to the sums referred to above, the reasonable attorneys' fees of the holder of this Note, together with all court costs and
other reasonable expenses paid by such holder.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">13.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Waiver</U>. The Maker, endorsers, sureties, guarantors and all other parties who may become liable for all or any part
of this Note severally waive demand, presentment, notice of dishonor, protest, notice of protest, notice of nonpayment, notice
of intent to accelerate, notice of acceleration of the maturity of this Note and consent to: (a) any and all extensions of time
for any term or terms regarding any payment due under this Note, including partial payments or renewals before or after maturity;
(b) changes in interest rates as provided in this Note; (c) any substitutions or release of collateral; and (d) the addition, substitution
or release of any party liable for payment of this Note.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">14.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Miscellaneous</U>. All notices provided for herein shall be given in accordance with the provisions of the Loan Agreement.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">A.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>[Intentionally Omitted].</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">B.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>This Note is given to evidence an obligation incurred for business purposes and not for personal, single family residential
or agricultural purposes.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">C.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>This Note may not be terminated orally, but only by a discharge in writing and signed by the party who is the owner and
holder of this Note at the time enforcement of any discharge is sought.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><B>D.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>MAKER HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING ARISING OUT OF OR RELATING
TO THE RELATED DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED THEREBY AND AGREES THAT ANY SUCH ACTION OR PROCEEDING SHALL BE TRIED
BEFORE A COURT AND NOT BEFORE A JURY. MAKER ACKNOWLEDGES THAT THIS WAIVER IS A MATERIAL INDUCEMENT TO ENTER INTO A BUSINESS RELATIONSHIP,
THAT LENDER HAS RELIED ON THE WAIVER IN ENTERING INTO THIS AGREEMENT AND THE OTHER RELATED DOCUMENTS, AND THAT LENDER WILL CONTINUE
TO RELY ON THIS WAIVER IN THEIR RELATED FUTURE DEALINGS. MAKER WARRANTS AND REPRESENTS THAT MAKER HAS HAD THE OPPORTUNITY OF REVIEWING
THIS JURY WAIVER WITH LEGAL COUNSEL, AND THAT MAKER KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS.</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">[SIGNATURE ON NEXT PAGE]</P>




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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Signed and delivered
effective as of (but not necessarily on) the date set forth above.</P>

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<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 50%">&#8220;MAKER&#8221;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 50%">LAVENDER FIELDS, LLC,</TD></TR>
</TABLE>


<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: 10pt Times New Roman, Times, Serif">a New Mexico limited liability company</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 50%">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 3%">By</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; width: 47%">/s/ Carey Plant</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif">Carey Plant, Vice President</TD></TR>
</TABLE>


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<FILENAME>tm2022915d1_ex10-5.htm
<DESCRIPTION>EXHIBIT 10.5
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<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: right; margin: 0pt"><B>Exhibit 10.5</B></P>

<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"><B><U>MORTGAGE, SECURITY AGREEMENT<BR>
AND FINANCING STATEMENT</U></B></P>

<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: justify; text-indent: 0.5in">THIS MORTGAGE, SECURITY
AGREEMENT AND FINANCING STATEMENT (&#8220;Mortgage&#8221;) is made effective as of the 19<SUP>th</SUP> day of June, 2020, by and
between Lavender Fields, LLC, a New Mexico limited liability company (&#8220;Mortgagor&#8221;), having its mailing address at 333
Rio Rancho Drive, Suite 202, Rio Rancho, New Mexico 87124, for the benefit of BOKF, NA dba Bank of Albuquerque (&#8220;Mortgagee&#8221;),
having an office and mailing address at 100 Sun Avenue NE, Suite 500, Albuquerque, New Mexico 87109, with reference to the following:</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mortgagor
is the owner of the fee simple interest in the certain real estate (the &#8220;Land&#8221;) situated in Bernalillo County, New
Mexico, which is described on <U>Exhibit &#8220;A&#8221;</U> attached to this Mortgage and incorporated herein by reference as
if fully set forth herein.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mortgagor,
as Borrower, is indebted to Mortgagee, as Lender, as evidenced by a Non-Revolving Line of Credit Promissory Note in the principal
sum of $3,750,000.00 (the &#8220;Note&#8221;). In connection with the loan evidenced by the Note (the &#8220;Loan&#8221;), Mortgagor
and Mortgagee intend to enter into a Loan Agreement (the &#8220;Loan Agreement&#8221;).</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Note provides that, during an Event of Default thereunder or after the maturity thereof, the entire unpaid principal balance shall
bear interest at the rate per annum equal to the lower of the highest rate permitted by applicable law or five percent (5%) per
annum in excess of the interest rate otherwise applicable to the unpaid principal balance of the Note (herein the &#8220;Default
Interest Rate&#8221;).</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;By
means of this Mortgage, Mortgagor will secure to Mortgagee the payment of the Note, the payment of all other monies secured by
this Mortgage or advanced under this Mortgage, and the performance of Mortgagor&#8217;s obligations under the Loan Agreement and
this Mortgage, or future advances now or hereafter made by Mortgagee under the Loan Documents.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">NOW, THEREFORE, to
secure to the Mortgagee the payment of the Secured Indebtedness, as defined herein, <B>UP TO A MAXIMUM AMOUNT AT ANY GIVEN TIME
OF ONE HUNDRED FIFTY PERCENT (150%) OF THE FACE AMOUNT OF THE NOTE</B>, and the performance of the covenants, agreements and promises
contained in the Loan Documents (defined in the Loan Agreement), and for other good and valuable consideration, the receipt and
legal sufficiency of which are hereby acknowledged, Mortgagor does hereby give, transfer, grant, bargain and mortgage, pledge,
set over, hypothecate and assign to Mortgagee, with mortgage covenants and upon the statutory mortgage condition for breach of
which this Mortgage may be foreclosed as provided by law, and grant a security interest unto the Mortgagee, in and to all of the
following whether now or hereafter acquired by Mortgagor:</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Land, together with all and singular the easements, rights-of-way, tenements, hereditaments and appurtenances now or
hereafter belonging, relating or appertaining thereto, and all the estate, right title and interest of Mortgagor in and to
the roads, streets, ways and alleys public and/or private adjoining or adjacent to the same and any land laying in the bed of
any street, road, avenue, lane or right-of-way in front of, adjoining or adjacent to the same, including ingress and egress
easements, but specifically excluding any and all water, mineral rights, water rights and mineral rights (collectively the
 &#8220;Real Property&#8221;);</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
improvements, and appurtenances now and hereafter located, constructed, erected, installed, affixed, placed and/or maintained in
or upon the Real Property or any part thereof, together with all accessions, additions, replacements and substitutions or alterations
therefor;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To
the extent owned by Mortgagor, all fixtures, goods, and goods to become fixtures, now or hereafter attached to or installed on
the Real Property, or the improvements now or hereafter constructed thereon, or which are deemed to be fixtures to the Real Property,
or the improvements now or hereafter constructed thereon, under the laws of the State of New Mexico, all chattels and tangible
personal property which are attached to, installed, placed or used on, or which arise out of the development, improvement, operation
or use of the Real Property, the improvements, the fixtures or other items located on the Real Property, together with all additions,
accessions and accessories thereto and proceeds thereof, and substitutions, renewals and replacements therefor, and all other chattels
and tangible personal property and all renewals or replacements of or substitutions for any of the foregoing, and all proceeds
of all of the foregoing described collateral;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To
the extent owned by Mortgagor, all general intangibles used in connection with or relating to the improvements located on the Real
Property, all accounts, contract rights, documents of title, and chattel paper, relating thereto and all permits, approvals, licenses,
franchises, certificates and similar documents relating to the Real Property and/or the use and/or development thereof, all contracts,
leasing and/or renting labor, goods, equipment and/or services, service and/or maintenance agreements, management contracts, marketing
contracts, architects&#8217; contracts engineers&#8217; contracts, other professional contracts, brokers&#8217; contracts, construction
contracts and other contracts and agreements relating to the Real Property and/or development thereof, all mortgage and/or financing
commitments relating to the Real Property, or any part thereof, all warranties, guaranties and bonds, all surveys, soil and substrata
studies, other studies of every type, architectural renderings, site plans, engineering plans and studies, floor plans, landscape
plans and other plans, drawings, blueprints, plans, specifications, data, reports, tests, studies, appraisals and like documents
relating to all or any part of the Real Property and/or the development thereof, and other rights and privileges obtained in connection
with the Real Property and the improvements thereon;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
purchase contracts relating to the Real Property, or any part thereof, and all rents, issues and profits which may hereafter become
due under or by virtue of any lease or rental contract, written or verbal, or any letting of, or any agreement for the use of the
improvements located on the Real Property.</P>

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




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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To
the extent owned by Mortgagor, all judgments and awards (and all proceeds thereof and other rights with respect thereto) made or
to be made with respect to any of the Real Property and improvements thereon, under or in connection with any power of eminent
domain;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To
the extent owned by Mortgagor, all rights to collect and receive any insurance proceeds or other sums payable as or for damages
to any of the improvements and tangible personal property located on the Real Property, for any reason or by virtue of any occurrence;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
betterments, accessions, additions, appurtenances, substitutions and revisions relating to any of the foregoing;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mortgagor&#8217;s
rights in existing and future agreements between the Mortgagor and any third party that relate to any of the foregoing;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(j)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
rights and entitlements to develop the Real Property granted by any governmental or quasi-governmental authority; and</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(k)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mortgagor&#8217;s
rights in all other things and additional rights of any nature, of value or convenience in the enjoyment, development, operation
or production, in any wise, of any property or interest included in any of the foregoing clauses, all prepaid accounts and utility
deposits, and all revenues, income, rents, issues, profits and other benefits arising therefrom or from any contract now in existence
or hereafter entered into pertaining thereto, and all rights, title and interest appurtenant thereto.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">All of the tangible and intangible personal
property described in this Mortgage is hereinafter sometimes collectively referred to as the &#8220;Collateral.&#8221; All of the
above-described Real Property, improvements, fixtures, Collateral and other property are hereinafter collectively referred to as
the &#8220;Mortgaged Property,&#8221; and are hereby declared to be subject to the liens of this Mortgage notwithstanding the executing
and/or filing of any financing statements covering or describing any part or portion thereof.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">TO HAVE AND TO HOLD
the Mortgaged Property, with all appurtenances thereunto belonging, to the Mortgagee, its successors and assigns forever.</P>

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

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">This Mortgage is
executed, acknowledged and delivered to secure payment and performance of the following described indebtedness and
obligations of Mortgagor in such order of priority as Mortgagee may determine: (i) all principal, interest, after-default
interest, charges and fees due under the Note, the original of which is maintained at the office of the Mortgagee, and the
terms and provisions of which are incorporated herein by reference as if fully set forth herein, together with any and all
extensions, renewals, modifications, rearrangements, consolidations, substitutions and changes in form thereof; and (ii) any
and all future advances which may be made to Mortgagor by Mortgagee under the Note; and (iii) any and all sums which
Mortgagee may expend in accordance with this Mortgage or become obligated to expend, at Mortgagee&#8217;s option, to cure any
Event of Default of Mortgagor under this Mortgage, together with interest on all sums from the respective dates which
Mortgagee may expend or become obligated to expend at the Default Rate (defined in the Note); and (iv) any and all amounts
which Mortgagee may reasonably expend in accordance with this Mortgage or become obligated to expend in collecting the
indebtedness secured hereby or the rents assigned to Mortgagee, in foreclosing the lien of this Mortgage, in exercising any
remedy provided herein, in preserving or protecting any of the Mortgaged Property, or in pursuing or exercising any right or
remedy hereunder or with respect hereto consequent upon any default of the Mortgagor hereunder, including, but not limited to
reasonable attorneys&#8217; fees, court costs, abstracting expenses, receivers&#8217; fees, appraisers&#8217; fees,
watchmen&#8217;s fees, storage fees and other expenses reasonably incurred to protect and preserve the Mortgaged Property or
in maintaining the priority of this Mortgage or in retaking, holding, preparing for sale or selling the Collateral, together
with interest on all such sums from the respective date which the Mortgagee may expend at the Default Rate or the highest
rate permitted by law, whichever is less, and (v) all representations, warranties, covenants and agreements of Mortgagor
contained in the Loan Agreement, the Note, this Mortgage, and/or any other documents evidencing, securing or relating to the
Secured Indebtedness, together with any and all supplements, renewals, modifications and amendments thereof (collectively,
the &#8220;Loan Documents&#8221;) (all of the above-described indebtedness and obligations are hereinafter collectively
referred to as the &#8220;Secured Indebtedness&#8221;).</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">This Mortgage is made
subject to the following covenants, conditions and agreements:</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">1.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>WARRANTY OF TITLE</U>. Mortgagor represents, covenants and warrants that Mortgagor owns fee simple title to the Mortgaged
Property, that Mortgagor has good right to sell, convey and mortgage the same, that the Mortgaged Property is free, clear and discharged
of all general and special taxes, liens, charges and encumbrances of every kind and character except for: (i) deposits to secure
payment of worker&#8217;s compensation, unemployment insurance and other similar benefits; (ii) liens for property taxes not yet
due; (iii) statutory liens, against which there are established reserves in accordance with generally accepted accounting principles,
and which arise in the ordinary course of business and secure obligations of Mortgagor which are not yet due and not in default;
(iv) encumbrances in favor of Mortgagee; (v) easements to utility providers and municipalities typically granted in connection
with developments similar to the Project; (vi) matters reflected in the policy of title insurance; (vii) the Subordinated Mortgage
(as defined in the Subordination Agreement of even date herewith between Mortgagor, Mortgagee and MESOAM, LLC); and (viii) other
matters approved by Mortgagee, including without limitation those matters approved by Mortgagee in Section 7.1 of the Loan Agreement
(collectively, &#8220;Permitted Liens&#8221;), and that Mortgagor hereby warrants and will forever defend the title to the Mortgaged
Property, other than the Permitted Liens, against the claims of all persons whomsoever.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">2.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><U>PAYMENT
OF SECURED INDEBTEDNESS</U>.&#9;Mortgagor covenants and agrees to pay all of the Secured Indebtedness and each separate item
or installment thereof as and when the same shall become due and payable, whether by extension, acceleration or otherwise. If
the Mortgagor pays and discharges all amounts of outstanding principal and accrued interest due and payable under the Secured
Indebtedness then in that event only, this Mortgage shall be and become null and void and discharged of record.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">3.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>PRESERVATION AND MAINTENANCE OF MORTGAGED PROPERTY</U>. With respect to the Mortgaged Property, Mortgagor covenants and
agrees to keep, or cause to be kept, the same in good condition and repair, ordinary wear and tear excepted; subject to the provisions
of the Loan Agreement, to pay, or cause to be paid, all taxes and assessments and other charges that may be levied or assessed
upon the Mortgaged Property when they become due and payable; to pay, or cause to be paid, all debts for repair or improvements,
now existing or hereafter arising, that may become liens upon or charges against the same; subject to the provisions of the Loan
Agreement, to comply with or cause to be complied with all requirements of any governmental authority relating to the Mortgaged
Property; and, subject to paragraph 4 of this Mortgage, to repair, restore, replace or rebuild promptly any part of the Mortgaged
Property which may be damaged by any casualty whatsoever or which may be affected by any condemnation proceeding or the exercise
of eminent domain. Mortgagor further covenants and agrees that the Mortgagor will not do or permit to be done anything which will
impair or weaken the security of this Mortgage; nor initiate, join in, or consent to any change in any private restrictive covenant,
zoning ordinance, or other public or private restrictions limiting or defining the uses which may be made of the Mortgaged Property
or any part thereof except as allowed under Sections 7.1 and 13 of the Loan Agreement and as may be necessary to obtain the Final
Plat (defined in the Loan Agreement) in each case other than the Permitted Liens. Except for a second lien for the benefit of an
entity affiliated with Mortgagor, Mortgagor further covenants and agrees not to create, permit or suffer to exist any mortgage,
security interest, lien or encumbrances of any kind or character to accrue or remain on the Mortgaged Property or any part thereof,
without the prior written consent of Mortgagee, in each case other than Permitted Liens or as permitted pursuant to the Loan Agreement.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">4.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><U>INSURANCE</U>.
Mortgagor will keep all property useful and necessary in its business in good working order and condition, ordinary wear and
tear excepted. Mortgagor covenants and agrees to deposit with Mortgagee and to maintain throughout the term of the Note,
original policies of insurance, issued by insurance companies reasonably satisfactory to Mortgagee, for the following: (1)
commencing with the commencement of construction of the improvements, builder's risk insurance (in an amount equal to the
full replacement cost) on the improvements being constructed on the Real Property until Substantial Completion (as defined in
the contract for construction) of such improvements; and (2) public liability and property damage insurance covering the
Mortgaged Property in an amount approved from time to time by Mortgagee, which on the date hereof is combined single limits
coverage of not less than $2,000,000.00. All deductibles, coinsurance provisions, exceptions to coverage and policy forms
must be acceptable to Mortgagee in its reasonable discretion. The Mortgagor further covenants and agrees that, regardless of
the types or amounts of insurance required and approved by the Mortgagee, Mortgagor will cause the Mortgagee to be named as
an additional insured in all policies of liability insurance, and the Mortgagor will assign and deliver to the Mortgagee all
policies of insurance which insure against any loss or damage to the Mortgaged Property, as collateral and further security
for the Secured Indebtedness, which policies shall contain a mortgage clause in favor of Mortgagee and in form, scope and
substance acceptable to Mortgagee. Mortgagor further covenants and agrees that not less than thirty (30) days prior to the
expiration dates of each policy required pursuant to this paragraph, Mortgagor will deliver to the Mortgagee a renewal policy
or policies marked &#8220;premium paid&#8221; or accompanied by other evidence of payment satisfactory to the Mortgagee.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">5.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>TAXES</U>. Mortgagor hereby agrees to pay and discharge, or cause the payment of, all general and special taxes, assessments,
impositions and charges of every nature whatsoever that may be imposed, levied, or assessed upon or against the Mortgaged Property
as they become due and payable and to furnish to Mortgagee receipts showing payment of any such taxes and assessments if and as
often as demanded by Mortgagee, provided however, Mortgagor will not be required to pay and discharge any such tax, assessment,
imposition or charge so long as: (a) the legality of the same shall be contested in good faith by appropriate proceedings; and
(b) Mortgagor shall have established on Mortgagor's books adequate reserves with respect to such tax, assessment, imposition or
charge contested in accordance with income tax based accounting standards. Mortgagor hereby further agrees to pay any and all taxes
which may be levied or assessed directly or indirectly upon the Secured Indebtedness and this Mortgage, to the extent allowed by
applicable law. The additional amounts which may become due and payable hereunder shall be part of the Secured Indebtedness.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">6.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>CONDEMNATION</U>. The Mortgagor covenants and agrees that if at any time all or any portion of the Mortgaged Property
shall be taken or damaged under the power of eminent domain, the award received by condemnation proceedings for any property so
taken or any payment received in lieu of such condemnation proceedings, including, but not limited to, any awards for any change
of grade of streets affecting or abutting the Mortgaged Property shall be paid directly to the Mortgagee and applied to the principal
balance of the Loan; provided that, all of such award or payment, provided no Event of Default is in existence, shall be paid over,
wholly or in part, to the Mortgagor for the purpose of altering, restoring or rebuilding any part of the Mortgaged Property which
may have been altered, damaged or destroyed as a result of any such taking or damage, or for any other purpose or object satisfactory
to Mortgagee; <I>provided, however, </I>that the Mortgagee shall not be obligated to see to the application of any amount paid
over to the Mortgagor.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">7.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>CONTRACTS, FRANCHISES AND LICENSES</U>. The Mortgagor shall comply in all material respects with and observe all of Mortgagor&#8217;s
obligations under all material contracts, franchises and licenses necessary or desirable for the continuation of the business conducted
with respect to the Mortgaged Property.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">8.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><U>INSPECTIONS</U>.
The Mortgagee and its agents and representatives shall have the right from time to time to make or cause to be made
reasonable entries upon and inspections of the Mortgaged Property, without cost to the Mortgagee, upon at least three
business days prior written notice delivered from Mortgagee to Mortgagor; provided that, Mortgagee shall be liable to
Mortgagor for any and all claims, damages, and losses, including without limitation court costs and reasonable
attorney&#8217;s fees (collectively &#8220;Losses&#8221;) caused by or resulting from, either directly or indirectly,
Mortgagee&#8217;s entry upon or inspection of the Mortgaged Property.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">9.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>USE AND CONDITION OF MORTGAGED PROPERTY</U>. The Mortgagor covenants and agrees to neither permit nor suffer the Mortgaged
Property to be used for any purpose prohibited by any present and future laws, ordinances, rules and regulations of all applicable
governmental authorities. The Mortgagor further covenants and agrees that it shall at all times keep, or cause to be kept, the
Mortgaged Property and all buildings, fixtures and other improvements thereon in compliance in all material respects with all present
and future applicable laws, ordinances, rules and regulations of all applicable governmental authorities.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">10.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>SECURITY AGREEMENT AND FINANCING STATEMENT</U>. This Mortgage shall also constitute, and shall be construed as, a security
agreement and as a financing statement with respect to the Collateral, notwithstanding the execution and filing of additional financing
statements covering the same Collateral.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">10.1.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;
</FONT>The Mortgagor shall from time to time, within fifteen (15) days after request by Mortgagee, execute, acknowledge and deliver
any Financing Statement, Renewal Affidavit, Certificate, Continuation Statement, Inventory or other similar documents as the Mortgagee
may reasonably request in order to protect, preserve, continue, extend or maintain the security interest granted in this Mortgage
and shall, upon demand, pay any and all reasonable expenses incurred by the Mortgagee in the preparation, execution and filing
of any such documents.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">10.2.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;
</FONT>A carbon, photographic, photocopy or other reproduction of this Mortgage will constitute a financing statement and Mortgagor
consents to the filing thereof as a financing Statement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">11.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>INTENTIONALLY DELETED</U>.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">12.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><U>SALE,
TRANSFER; FORM OF BUSINESS ASSOCIATION</U>. Except as may be expressly permitted under the Loan Agreement, Mortgagor
covenants and agrees not to sell, transfer, convey, alienate, assign or voluntarily or involuntarily permit or suffer the
Mortgaged Property, or any part thereof, to be sold, transferred, assigned, alienated, or conveyed without the prior written
consent of Mortgagee, which consent may be given or withheld by the Mortgagee in its sole and absolute subjective discretion,
and further the Mortgagor covenants and agrees, except as expressly permitted in the Loan Agreement, not to change or alter
the composition, form of business association or ownership of the Mortgagor without in each instance obtaining prior written
consent of the Mortgagee, which consent may be given or withheld by the Mortgagee in its sole and absolute subjective
discretion; <I>provided, however</I>, that such written consent by Mortgagee to one sale or transfer of the Mortgaged
Property or to one change in the composition, form of business association or ownership of the Mortgagor shall not imply
consent by Mortgagee to any other or subsequent sale, transfer, conveyance, alienation, or assignment of the Mortgaged
Property or to any other or subsequent change in the composition, form of business association or ownership of the Mortgagor,
and the provisions hereof shall apply to each and every sale, transfer, conveyance, alienation or assignment or change in the
composition, form of business association or ownership of the Mortgagor thereof regardless of whether or not the Mortgagee
has consented to or waived its rights hereunder whether by action or nonaction in connection with any previous sale,
transfer, conveyance, alienation or assignment or change in the composition, form of business association or ownership of the
Mortgagor, whether one or more.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">13.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>ENCUMBRANCES</U>. Except for a second lien for the benefit of an entity affiliated with Mortgagor, the Mortgagor covenants
and agrees that it shall not mortgage, pledge, grant a security interest in or otherwise encumber the Mortgaged Property or any
part thereof, or voluntarily or involuntarily permit or suffer the Mortgaged Property, or any part thereof, to be mortgaged, pledged
or encumbered, without the prior written consent of Mortgagee, which consent may be given or withheld by the Mortgagee in its sole
discretion, except for Permitted Liens.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">14.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>EVENTS OF DEFAULT</U>. The Mortgagor shall be in default under this Mortgage during the occurrence of any of the following
events or conditions (collectively, &#8220;Events of Default&#8221; and individually, &#8220;Event of Default&#8221;):</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">14.1.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;
</FONT>Default in payment when due of any interest on or principal of the Note that continues for ten (10) days after the date
of written notice from Mortgagee requiring payment; or</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">14.2.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;
</FONT>Default in payment when due of the Secured Indebtedness (other than payment when due of any interest on or principal of
the Note) or any part or installment thereof as and when the same becomes due and payable, whether by acceleration, extension or
otherwise, that continues for thirty (30) days after the date of written notice from Mortgagee requiring payment; or</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">14.3.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;
</FONT>Default by Mortgagor in the performance or observance of any covenant contained in this Mortgage or any other Loan Document,
including without limitation, any representation, warranty, statement, certificate, schedule or report made or furnished to Mortgagee
by Mortgagor which proves to be false or erroneous in any material respect at the time of making hereof, that continues for thirty
(30) days after the date of notice from Mortgagee requiring payment; provided that, if such default requires longer than thirty
(30) days to cure and the Mortgagor commences such cure within thirty (30) days and is diligently pursuing said cure, Mortgagor
shall have a period not to exceed one hundred twenty (120) days to complete said cure; or</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">14.4.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;
</FONT>Upon the institution of any foreclosure proceeding by the holder of any mortgage or lien upon all or substantially all of
the Mortgaged Property (<I>provided, however</I>, this event of default shall not constitute or be construed as Mortgagee&#8217;s
consent to or approval of the existence or imposition of any mortgage or lien upon the Mortgaged Property); or</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">14.5.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp; </FONT>Mortgagor
or any Guarantor (as defined in the Guaranty Agreement of even date herewith between Mortgagor and AMREP Southwest, Inc.) is
adjudicated insolvent or makes an assignment for the benefit of creditors, provided, however, as to any Guarantor, only until
the Guaranty terminates pursuant to its terms; or</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: 0in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">14.6.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;
</FONT>Mortgagor or any Guarantor files any voluntary petition in bankruptcy or is adjudged bankrupt or insolvent, or an order
for relief is entered as to Mortgagor or Guarantor in any bankruptcy or reorganization proceeding or Mortgagor or any Guarantor
voluntarily petitions or applies to any court or tribunal for any receiver, trustee, conservator or liquidator for its property
or affairs, or Mortgagor or any Guarantor indicates by any act its consent to, approval of or acquiescence in any such bankruptcy,
insolvency or reorganization proceeding, application or petition, provided, however, as to any Guarantor, only until the Guaranty
terminates pursuant to its terms; or</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">14.7.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;
</FONT>A receiver, trustee, conservator or liquidator is appointed for Mortgagor or any Guarantor or for any part of the property
or affairs of Mortgagor or any Guarantor or any proceeding is commenced relating to Mortgagor or any Guarantor under by bankruptcy,
insolvency, reorganization, arrangement, readjustment of debt, dissolution or liquidation law or statute of any jurisdiction, whether
now or hereafter in effect, or a third person commences any such proceeding, files a petition or makes such application, provided,
however, as to any Guarantor, only until the Guaranty terminates pursuant to its terms; or</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">14.8.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;
</FONT>Any levy, seizure, execution, replevin or attachment is issued or commenced against all or substantially all of the Mortgaged
Property; or</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">14.9.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;
</FONT>Any sale, transfer, conveyance, alienation or assignment occurs in violation of this Mortgage, and continues for thirty
(30) days after the date of written notice from Mortgagee; or</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">14.10. Any mortgage,
pledge, security interest or other encumbrance occurs in violation of this Mortgage, and continues for thirty (30) days after the
date of written notice from Mortgagee; or</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">14.11. The dissolution
of any Guarantor of the Note.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">15.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>REMEDIES</U>. During the occurrence of any of the Events of Default listed in paragraph 14 of this Mortgage and the failure
by Mortgagor to cure such Event of Default after such notice and opportunity to cure the Event of Default as may be required under
the terms of this Mortgage or the Note, this Mortgage or any of the other Loan Documents, the Mortgagee shall have the following
remedies in addition to all other remedies provided in this Mortgage or otherwise provided by law:</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">15.1.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp; </FONT><U>Foreclosure
and Redemption Period</U>. Mortgagee shall be entitled to declare the whole amount of the Secured Indebtedness immediately
due and payable without notice, and Mortgagee may then proceed by suit or suits in equity or at law to foreclosure this
Mortgage pursuant to the laws of the State of New Mexico. <B>If this Mortgage is foreclosed, the redemption period after
judicial sale shall be one (1) month in lieu of nine (9) months</B>. In the event of a judicial sale hereunder, Mortgagee may
become the purchaser of the Mortgaged Property, or any part thereof. In the event of foreclosure, Mortgagee shall be entitled
to the appointment of a receiver without regard to the solvency of Mortgagor or the value of the Mortgaged Property.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: 0in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">15.2.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;
</FONT><U>Foreclosure of Security Interest</U>. In addition to all other remedies described or referenced in this Mortgage, the
Mortgagee, at its sole subjective discretion, may have all or any part of the Collateral combined with the Real Property covered
hereby and sold together with such Real Property as an entirety at any foreclosure sale, or the Mortgagee, at its option, may proceed
solely or separately against the Collateral or any part thereof and have the same sold separately as provided by the Uniform Commercial
Code of the State of New Mexico, either in one parcel or in such parcels, manner or order as the Mortgagee, in its sole subjective
discretion, may elect; the Mortgagee shall have the right to take immediate and exclusive possession of the Collateral or any part
thereof and for that purpose may, with or without judicial process, enter upon any premises on which the Collateral or any part
thereof may be situated and remove the same therefrom; the Mortgagee shall be entitled to hold, maintain, preserve and prepare
the Collateral for sale until disposed of, or may propose to retain the Collateral subject to Mortgagor&#8217;s right of redemption
in partial or total satisfaction of the Mortgagor&#8217;s obligations as provided in the Uniform Commercial Code of the State of
New Mexico; Mortgagee without removal may render the Collateral unusable and dispose of the Collateral on the Mortgagor&#8217;s
premises; Mortgagee may require the Mortgagor to assemble the Collateral and make it available to Mortgagee for its possession
at a place to be designated by Mortgagee which is reasonably convenient to both parties; unless the Collateral is perishable or
threatens to decline speedily in value or is of a type customarily sold on a recognized market, the Mortgagee shall give the Mortgagor
at least ten (10) days&#8217; notice of the time and place of any public sale of any Collateral or of the time after which any
private sale or other intended disposition thereof is to be made, by United States registered or certified mail, postage prepaid,
addressed to the Mortgagor at the address provided in this Mortgage, which provisions for notice the Mortgagor and Mortgagee agree
are reasonable; Mortgagee may buy all or part of the Collateral at any public sale, and if the Collateral is of a type which is
subject to widely distributed standard price quotations, Mortgagee may buy at private sale; and further, the Mortgagee shall have
all of the rights and remedies of a Secured Party under the Uniform Commercial Code of the State of New Mexico. The Mortgagee shall
be entitled to exercise any and all other rights and remedies available by applicable laws and judicial decisions.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">15.3.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;
</FONT><U>Attorneys&#8217; Fees and Costs</U>. The losing party agrees to pay and reimburse the prevailing party for all reasonable
attorneys&#8217; fees, costs and expenses paid or incurred by the prevailing party in any legal action, proceeding or other dispute
of any kind in which Mortgagee is made a party or appears as a party plaintiff or defendant, involving the Loan Agreement, the
Note, this Mortgage, the Assignment or the Mortgaged Property, including, but not limited to, the foreclosure or other enforcement
of the Note or this Mortgage, any condemnation action, any action to protect Mortgagee&#8217;s security or liens and/or any action
in bankruptcy or probate.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">15.4.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;
</FONT> <U>Remedies Cumulative, Concurrent and Nonexclusive</U>. The Mortgagee shall have all rights, remedies and recourses granted
in the Loan Documents and available at law or equity (including specifically those granted by the Uniform Commercial Code in effect
and applicable to the Mortgaged Property or any portion thereof), and same (a) shall be cumulative and concurrent, (b) may be pursued
separately, successively or concurrently against the Mortgagor or others obligated under the Note, or against the Mortgaged Property,
or against any one or more of them, at the sole discretion of the Mortgagee, (c) may be exercised as often as occasion therefor
shall arise, it being agreed by the Mortgagor that the exercise or failure to exercise any of same shall in no event be construed
as a waiver or release thereof or of any other right, remedy or recourse, and (d) are intended to be, and shall be, nonexclusive.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">15.5.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;
</FONT><U>No Waiver</U>. In the event the Mortgagee shall elect to selectively and successfully enforce its rights under this Mortgage
or any other documents or instruments securing payment of the Secured Indebtedness, such action shall not be deemed a waiver or
discharge of any other lien, encumbrance or security interest securing payment of the Note until such time as the Mortgagee shall
have been paid in full all sums advanced under the Note. The foreclosure of any lien provided pursuant to this Mortgage without
the simultaneous foreclosure of all such liens shall not merge the liens granted which are not foreclosed with any interest which
the Mortgagee might obtain as a result of such selective and successive foreclosure.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">15.6.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;
</FONT><U>High Volatility Commercial Real Estate</U>. If at any time, in the determination of the Mortgagee, the net equity or
capital retention of the Mortgagor would require Mortgagee to classify the Mortgaged Property as High Volatility Commercial Real
Estate as set forth in Part 217 of Chapter II of title 12 of the Code of Federal Regulations, then within ten (10) days after written
demand being issued by the Mortgagee, Mortgagor shall take such actions as may be necessary, including obtaining adequate equity
infusion, such that the Mortgaged Property need not be classified as High Volatility Commercial Real Estate. If the Mortgagor fails
to take such action, it shall not be an Event of Default, and Mortgagee, as Mortgagee&#8217;s sole right and remedy, may increase
the interest rate on the Loan by 0.85 percent as of the eleventh (11<SUP>th</SUP>) day after such notice and demand is issued.
 &nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">16.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>SALE OF PARCELS</U>. In case of any sale under this Mortgage, by virtue of judicial proceedings or otherwise, the Mortgaged
Property may be sold in one parcel and as an entirety or in such parcels, manner or order as the Mortgagee in its sole discretion
may elect.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">17.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>SUBROGATION</U>. If the money loaned or advanced by Mortgagee and secured hereby shall be used to pay off or discharge
any mortgage, lien or encumbrance upon or against the Mortgaged Property, the Mortgagee, at its option, will be subrogated to all
such mortgages, liens or encumbrances so discharged, satisfied or paid, even though the same may be released of record, and to
all the rights of the person or persons to whom such payments have been made, and may immediately enforce the same against the
Mortgagor and the Mortgaged Property.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">18.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT> <U>INDULGENCES, EXTENSIONS AND RELEASES</U>. It is understood and agreed that at any time and from time to time, either
with or without any consideration, and without notice to any person and without the consent or approval of any person or persons,
and without in any manner affecting the liability of the Mortgagor or any guarantors, sureties, endorsers, or any other persons
liable for the payment of the Secured Indebtedness together with interest and any other sums which may be due and payable to Mortgagee,
and without in any manner affecting, disturbing or impairing in any manner whatsoever the validity and priority of the lien of
this Mortgage upon that portion of the Mortgaged Property which is unreleased, and also without in any manner affecting or impairing
to any extent whatsoever any and all other collateral security which may be held by Mortgagee, the Mortgagee may at its sole subjective
discretion:</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">18.1.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;
</FONT>Grant to the Mortgagor any indulgence, forbearance or any extension of time for the payment of any of the Secured Indebtedness,
and may agree to a modification in the terms of the Note and this Mortgage; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">18.2.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;
</FONT>Allow any change, addition or substitution of or for any of the property described in this Mortgage or other collateral
which may be held by Mortgagee; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">18.3.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;
</FONT>Release or otherwise deal with all or any portion of the Mortgaged Property or any other real or personal property or portion
thereof which may be held by Mortgagee as security for the payment of the Secured Indebtedness; and/or</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">18.4.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;
</FONT>Release the Mortgagor or any guarantors, sureties, endorsers or any other persons now or hereafter liable for the payment
of all or any part of the Secured Indebtedness or liable for the performance of any obligations;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">None of the foregoing will impair or affect
the lien of this Mortgage or the priority of such lien over any subordinate lien covering the Mortgaged Property. Further, any
agreement or stipulation between any subsequent owner or owners of the Mortgaged Property and the Mortgagee which extends the time
of payment or which modifies the terms of the Note or this Mortgage, without Mortgagee first having obtained the consent of the
Mortgagor, shall not constitute a release of Mortgagor or any guarantors, sureties, endorsers or any other persons liable for payment
of the Secured Indebtedness, and the Mortgagor and all such other persons shall continue liable to make such payments according
to the terms of any such agreement or extension or modification unless expressly released and discharged in writing by the Mortgagee.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">19.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>NO WAIVERS</U>. Any failure by the Mortgagee to insist upon the strict performance by the Mortgagor of any of the terms
and provisions of this Mortgage shall not be deemed to be a waiver of any of the terms and provisions of this Mortgage, and the
Mortgagee, notwithstanding any such failure, shall have the right thereafter to insist upon the strict performance by the Mortgagor
of any and all of the terms and provisions of this Mortgage to be performed by the Mortgagor. Further, no delay by Mortgagee in
exercising any of its rights or remedies hereunder, or otherwise afforded by law, shall operate as a waiver thereof or preclude
the exercise thereof during the continuance of any default hereunder.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">20.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT> <U>DEMANDS FOR FORECLOSURE</U>. Neither the Mortgagor nor any other person now or hereafter obligated for the payment of
the whole or any part of the Secured Indebtedness secured by this Mortgage shall be relieved of such obligation by reason of the
failure of the Mortgagee to comply with any request of the Mortgagor or of any other person so obligated to take action to foreclose
this Mortgage or otherwise enforce any of the provisions of this Mortgage or of any obligations secured by this Mortgage.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">21.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>OTHER SECURITY</U>. If the payment of the Secured Indebtedness is now or hereafter further secured by assignments of
leases, or rentals, security agreements, financing statements, mortgages, collateral assignments, pledges, contracts of guaranty,
or other additional security documents, any default under the provisions of any such further security documents shall constitute
and be a default under this Mortgage, and the Mortgagee may, at its option, exhaust its remedies under any one or more of the said
security documents and the security thereunder, as well as the Mortgaged Property, either concurrently or independently and in
such order and manner as the Mortgagee may elect, and Mortgagee may apply the proceeds received therefrom upon the Secured Indebtedness
without waiving or affecting Mortgagee&#8217;s rights and remedies under this Mortgage or exercised hereunder or whether contained
or exercised under any other such security documents.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">22.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>CHANGE OF OWNERSHIP</U>. If ownership of the Mortgaged Property or any portion thereof becomes vested in a person or
persons other than the Mortgagor, the Mortgagee may deal with such successor or successors in interest with reference to this Mortgage
and the Secured Indebtedness in the same manner as with the Mortgagor, <I>provided, however,</I> except as provided in the Loan
Agreement, nothing contained in this paragraph shall constitute or be construed as Mortgagee&#8217;s consent to or approval of
any change in ownership of the Mortgaged Property or any part thereof</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">23.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>PAYMENT BY OTHERS</U>. Any payment made by any person at any time liable for the payment of the whole or any part of
the Secured Indebtedness or by any person whose interest in the Mortgaged Property might be prejudiced in the event of a failure
to make such payment, or by any stockholder, officer or director of a corporation or any partner of a partnership or trustee or
beneficial owner of a trust which at any time might be liable for such payment or might own an interest in the Mortgaged Property,
will be deemed, as between the Mortgagee and all persons who at any time might be liable as aforesaid or might own an interest
in the Mortgaged Property, to have been made on behalf of the Mortgagor.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">24.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>NOTICES</U>. Every provision for notice pursuant to this Mortgage shall be given in accordance with the notice provisions
of the Loan Agreement.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">25.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><U>RELATIONSHIP
OF THE PARTIES</U>. This Mortgage is given as an incident to a lending transaction between Mortgagee and Mortgagor, and in no
event shall the Mortgagee be construed or held to be a partner, joint venturer or associate of the Mortgagor in the conduct
of the business of Mortgagor on or about the Mortgaged Property or otherwise, nor shall Mortgagee be liable for any debts or
obligations incurred by Mortgagor in the conduct of such business, it being understood and agreed that the relationship of
the parties is and at all times shall remain that of Mortgagee and Mortgagor.</P>

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

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">26.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>GOVERNING LAW</U>. <B>THIS MORTGAGE AND THE LOAN DOCUMENTS, AND ALL MATTERS RELATING HERETO OR THERETO OR ARISING THEREFROM
(WHETHER SOUNDING IN CONTRACT LAW, TORT LAW OR OTHERWISE), SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE
WITH, THE LAWS OF THE STATE OF NEW MEXICO, WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES. MORTGAGOR HEREBY CONSENTS TO THE JURISDICTION
OF ANY STATE OR FEDERAL COURT LOCATED WITHIN THE COUNTY OF BERNALILLO, STATE OF NEW MEXICO AND IRREVOCABLY AGREES THAT ALL ACTIONS
OR PROCEEDINGS ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE OTHER LOAN DOCUMENTS SHALL BE LITIGATED IN SUCH COURTS. MORTGAGOR
EXPRESSLY SUBMITS AND CONSENTS TO THE JURISDICTION OF THE AFORESAID COURTS AND WAIVES ANY DEFENSE OF FORUM NON CONVENIENS. </B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">27.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>CUMULATIVE REMEDIES</U>. The rights of the Mortgagee arising under the representations, warranties, covenants and agreements
contained in this Mortgage shall be separate, distinct and cumulative and none of them shall be in exclusion of the others; and
no act of the Mortgagee shall be construed as an election to proceed under any one provision herein to the exclusion of any other
provisions, anything herein or otherwise to the contrary notwithstanding.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">28.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>CONSTRUCTION</U>. The paragraph headings and captions contained in this Mortgage are included for convenience only and
shall not be construed or considered a part of this Mortgage or affect in any manner the construction or interpretation of this
Mortgage. Whenever used in this Mortgage, the singular will include the plural, the plural the singular, and the use of any gender
will be applicable to all genders.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">29.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>SEVERABILITY</U>. If any covenant or agreement in this Mortgage is invalid or void for any reason, such invalid or void
covenant or agreement shall not affect the whole of this Mortgage, and the balance of the covenants and agreements of this Assignment
shall remain in full force and effect.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">30.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>AMENDMENT</U>. This Mortgage cannot be changed, modified or amended except by an agreement in writing, signed by the
party against whom enforcement of the change is sought and in recordable form.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">31.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>BINDING EFFECT</U>. All of the covenants, conditions and agreements contained in this Mortgage shall run with the land
and shall bind the Mortgagor, and the respective successors and assigns of the Mortgagor, and shall inure to the benefit of the
Mortgagee and its successors and assigns.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">32.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><U>CONSTRUCTION
MORTGAGE</U>. This Mortgage secures indebtedness incurred by Mortgagor in connection with the construction of improvements on
the Mortgaged Property. Accordingly, this Mortgage constitutes a &#8220;construction mortgage&#8221; under applicable
provisions of the Uniform Commercial Code.</P>

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

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">33.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>LIMITATION OF INDEMNITY</U>. To the extent, if at all, 56-7-1 NMSA 1978, as amended, is applicable, any agreement to
indemnify, hold harmless, insure or defend another party contained herein or in any related documents will not extend to liability,
claims, damages, losses or expenses, including attorneys&#8217; fees, arising out of bodily injury to persons or damage to property
caused by or resulting from, in whole or in part, the negligent act or omission of any indemnitee, its officers, employees or agents.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">IN WITNESS WHEREOF,
the Mortgagor has caused this Mortgage to be executed and delivered on the day and year first above written.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">[SIGNATURE ON NEXT PAGE]</P>




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<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif">&#8220;MORTGAGOR&#8221;</TD>
    <TD COLSPAN="2" STYLE="font: 10pt Times New Roman, Times, Serif">LAVENDER FIELDS, LLC,</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: 10pt Times New Roman, Times, Serif">a New Mexico limited liability company</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="3" STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 50%">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 4%">By</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; width: 46%">/s/ Carey Plant</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif">Carey Plant, Vice President</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3in; text-indent: -3in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="text-transform: uppercase">state</FONT>
OF NEW MEXICO</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">This instrument was
acknowledged before me on June 18, 2020, by Carey Plant, Vice President of Lavender Fields, LLC, a New Mexico limited liability
company.</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 50%">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; width: 4%">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; width: 46%">/s/ Karen Ward</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif">Notary Public</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="3" STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="3" STYLE="font: 10pt Times New Roman, Times, Serif">My Commission Expires:</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
</TABLE>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>EXHIBIT &quot;A&quot;<BR>
Legal Description</B></P>

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

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Tracts &quot;A&quot;, &quot;B&quot;, &quot;C&quot; and &quot;D&quot;
of Meso Am, Bernalillo County, New Mexico, as the same are shown and designated on the Plat thereof, filed in the office of the
County Clerk of Bernalillo County, New Mexico on October 22, 2013 in Plat Book 2013C, Page 119 as Document No. 2013116380, re-recorded
November 4, 2013 in Plat Book 2013C, Page 123 as Document No. 2013120726.</P>

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<TYPE>EX-10.6
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<FILENAME>tm2022915d1_ex10-6.htm
<DESCRIPTION>EXHIBIT 10.6
<TEXT>
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<P STYLE="margin: 0pt">&nbsp;</P>

<P STYLE="text-align: right; margin: 0pt"><B>Exhibit 10.6</B></P>

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

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

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

<P STYLE="font: bold 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: justify; text-indent: 0.5in">THIS GUARANTY AGREEMENT
(the &#8220;Guaranty&#8221;) is made by AMREP Southwest, Inc., a New Mexico corporation (the &#8220;Guarantor&#8221;), to and for
the benefit of BOKF, NA dba Bank of Albuquerque (the &#8220;Lender&#8221;), with reference to the following:</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">1.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Recitals</U>. The following Recitals apply to this Guaranty.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">A.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>Lender and Lavender Fields, LLC, a New Mexico limited liability company, are parties to a Loan Agreement dated the same
day as this Guaranty (the &#8220;Loan Agreement&#8221;), under the terms of which Lender agreed to lend to Borrower, and Borrower
agreed to borrow from Lender, up to the principal amount of $3,750,000.00 for the purposes set forth in the Loan Agreement (the
 &#8220;Loan&#8221;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">B.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>Pursuant to the Loan Agreement, Borrower has signed and delivered to Lender a Non-Revolving Line of Credit Promissory Note
dated the same day as this Guaranty in the original principal amount of $3,750,000.00 (the &#8220;Note&#8221;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">C.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>The Note is secured by, among other things, a Mortgage, Security Agreement and Financing Statement dated the same day as
this Agreement (the &#8220;Mortgage&#8221;), given by Borrower to Lender.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">D.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>Guarantor&#8217;s execution of this Guaranty is one of the conditions precedent to Lender&#8217;s obligations under the
Loan Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">2.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Guaranty</U>. Guarantor hereby absolutely, irrevocably and unconditionally guarantees to Lender the performance and payment
when due (whether at a stated maturity or earlier by reason of acceleration or otherwise or at any other time required by any of
the Loan Documents) of all liabilities and obligations now or hereafter owing by Borrower to Lender under the Note and the other
Loan Documents (defined in the Loan Agreement), including, without limitation, principal, interest, late charges, after-default
interest, reasonable attorneys&#8217; fees and collection costs, and all other liabilities and obligations of Borrower to Lender
under the Note and the other Loan Documents (all of the foregoing being hereinafter referred to as the &#8220;Guaranteed Obligations&#8221;).
Notwithstanding anything else contained in this Guaranty, the &#8220;Guaranteed Obligations&#8221; do not include the HSIA (as
defined in the Loan Agreement) or any liabilities or obligations thereunder. Guarantor agrees that Guarantor&#8217;s liability
under this Guaranty will be primary and direct, and that Lender will not be required to pursue any right or remedy it may have
against Borrower under the Note or otherwise (and will not be required to first commence any action or obtain any judgment against
Borrower or against property of Borrower in which Lender holds a security interest) before enforcing this Guaranty against Guarantor.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">3.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><U>Continuing
Guaranty</U>. This Guaranty is an absolute, unconditional and continuing guaranty of performance and payment of the
Guaranteed Obligations. No notice of the Guaranteed Obligations to which this Guaranty may apply, or of any renewal,
modification, consolidation, replacement, extension or amendment thereof, need be given to Guarantor and none of the
foregoing acts will release Guarantor from liability hereunder. Guarantor hereby expressly waives: (a) demand for payment or
performance, presentment, protest, notice of dishonor, nonpayment or nonperformance on any and all forms of the Guaranteed
Obligations; (b) notice of acceptance of this Guaranty and notice of any liability to which it may apply; (c) all other
notices and demands of any kind and description relating to the Guaranteed Obligations now or hereafter provided for by any
statute, law, rule or regulation; (d) any and all rights or defenses arising by reason of election of remedies by Lender that
destroys or otherwise adversely affects Guarantor&#8217;s subrogation rights or Guarantor&#8217;s rights to proceed against
Borrower for reimbursement, including, without limitation, loss of rights Guarantor may suffer by reason of any law limiting,
qualifying or discharging the Guaranteed Obligations; (e) any disability or other defense of Borrower of any other guarantor,
or of any other person, or by reason of the cessation of Borrower&#8217;s liability from any cause whatsoever, other than
payment in full in legal tender of the Guaranteed Obligations; (f) any right to claim discharge of the Guaranteed Obligations
on the basis of impairment of any collateral for the Guaranteed Obligations; (g) any defenses given to Guarantor by any
failure, neglect or omission by Lender to perfect in any manner the collection of the Guaranteed Obligations or the security
given therefor, including the failure or omission to seek a deficiency judgment against Borrower; and (h) any and all other
defenses of Borrower pertaining to the Guaranteed Obligations, including any Borrower counterclaim or claim of recoupment or
setoff except the defense of discharge by payment. Guarantor will not be exonerated with respect to Guarantor&#8217;s
liability under this Guaranty by any act or thing except payment or performance of the Guaranteed Obligations. Guarantor
warrants and agrees that each of the waivers set forth above is made with Guarantor&#8217;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 such waiver is determined to be contrary to any applicable law or public policy, such waiver will be effective
only to the extent permitted by law or public policy. Without limiting the generality of the foregoing, Guarantor waives any
setoff or offset rights that Guarantor might otherwise have under applicable law, as amended from time to time (or under any
corresponding present or future rule of law in any jurisdiction) by reason of any release of fewer than all persons who have
guaranteed performance of the Guaranteed Obligations.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">4.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><U>Other
Transactions</U>. Lender is expressly authorized: (a) to exchange, surrender or release with or without consideration any or
all collateral and security that may at any time be placed with it by Borrower or by any other person, or to forward or
deliver any or all such collateral and security directly to Borrower for collection and remittance or for credit, or to
collect the same in any other manner without notice to Guarantor; (b) to amend, modify, extend or supplement the Note, or
other agreement with respect to the Guaranteed Obligations, to waive compliance by Borrower with the respective terms thereof
and to settle or compromise any of the Guaranteed Obligations without notice to Guarantor and without in any manner affecting
the absolute liability of Guarantor hereunder; and (c) to assign from time to time all or any part of Lender&#8217;s interest
in the Note, this Guaranty and all other Loan Documents. The liability of Guarantor hereunder will not be affected or
impaired by any failure, neglect or omission on the part of Lender to realize upon any of the Guaranteed Obligations of
Borrower to Lender, or upon any collateral or security for any or all of the Guaranteed Obligations, nor by the taking by
Lender of (or the failure to take) any other guaranty or guaranties to secure the Guaranteed Obligations, nor by the taking
by Lender of (or the failure to take or the failure to perfect its security in) collateral or security of any kind. Guarantor
acknowledges that this Guaranty is in effect and binding as to the Guarantor without reference to whether this Guaranty is
signed by any other person or persons, and agrees that as to Guarantor, this Guaranty will continue in full force and effect,
both as to the Guaranteed Obligations then existing and/or thereafter created, notwithstanding the release of or extension of
time to any other guarantor of the Guaranteed Obligations or any part thereof.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">5.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Release and Waiver of Rights Against the Borrower</U>. UNTIL THE GUARANTEED OBLIGATIONS ARE PAID IN FULL, GUARANTOR HEREBY
WAIVES AND RELINQUISHES ANY RIGHT OF REIMBURSEMENT, SUBROGATION, INDEMNIFICATION OR OTHER RECOURSE OR CLAIM, WHETHER CONTINGENT
OR MATURED, WHICH GUARANTOR MAY HAVE AGAINST BORROWER. IT IS THE EXPRESS INTENT OF GUARANTOR AND LENDER TO ELIMINATE ANY DEBTOR/CREDITOR
RELATIONSHIP BETWEEN BORROWER AND GUARANTOR. GUARANTOR HEREBY EXPRESSLY RELEASES AND WAIVES ANY AND ALL PRESENT AND FUTURE RIGHTS
AS CREDITOR OF BORROWER IN ALL RESPECTS, BUT NOT ANY RIGHTS GUARANTOR HAS AS A MEMBER OR MANAGER OF BORROWER.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">6.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Application of Payments</U>. Any and all payments upon the Guaranteed Obligations made by Guarantor or by any other person,
and/or the proceeds of any or all collateral or security for any of the Guaranteed Obligations may be applied by Lender on such
items of the Guaranteed Obligations as Lender may elect.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">7.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Guarantor&#8217;s Warranties</U>. Guarantor warrants and represents to Lender that this Guaranty has been duly executed
and delivered by Guarantor and constitutes a legal, valid and binding obligation of Guarantor, enforceable in accordance with its
terms, except as enforcement may be limited by applicable bankruptcy, insolvency, moratorium and other laws affecting creditors&#8217;
rights generally. Guarantor warrants to the Lender that Guarantor has a direct and substantial economic interest in the Borrower,
and that Guarantor expects to derive benefits from transactions resulting in the creation of the Guaranteed Obligations. Lender
may rely conclusively on a continuing warranty hereby made, that Guarantor continues to be benefited by Lender&#8217;s extension
of credit to Borrower and Lender will have no duty to inquire into or confirm the receipt of any such benefits, and this Guaranty
will be effective and enforceable by Lender without regard to the receipt, nature or value of any such benefits.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">8.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Termination of Guaranty</U>. Subject to paragraph 11 of this Guaranty, this Guaranty will terminate on the date on which
all of the Guaranteed Obligations have been performed in full, all in accordance with the provisions of the Note and any other
documents evidencing or securing payment of the Loan.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">9.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><U>Recovery
of Payment</U>. If any payment received by Lender from Borrower or any other obligor and applied to the Guaranteed
Obligations is subsequently set aside, recovered, rescinded or required to be returned for any reason (including, without
limitation, the bankruptcy, insolvency or reorganization of Borrower or any other obligor), the Guaranteed Obligations to
which such payment was applied will for the purposes of this Guaranty be deemed to have continued in existence,
notwithstanding such application, and this Guaranty will be enforceable against Guarantor as to such Guaranteed Obligations
as fully as if such application had never been made.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">10.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>New Promise</U>. Any acknowledgement or new promise, whether supported by payment of principal or interest or otherwise
and whether made by Borrower or others (including Guarantor) with respect to any of the Guaranteed Obligations will, if the statute
of limitations in favor of Guarantor against Lender will have commenced to run, toll the running of such statute of limitations
and, if the period of such statute of limitations will have expired, prevent the operation of such statute of limitations with
respect to such promise.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">11.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Discharge</U>. Until termination of this Guaranty as provided in paragraph 8 of this Guaranty, the obligations of Guarantor
under this Guaranty will not be released, in whole or in part, by reason of any waiver, extension, modification, forbearance or
delay or other act or omission of Lender or its failure to proceed promptly or otherwise, or by reason of any action taken or omitted
by Lender whether or not such action or failure to act varies or increases the risk of, or affects the rights or remedies of Guarantor,
nor will any modification of any of the obligations of Borrower or the release of any security therefor by operation of law or
by the action of any third party affect in any way the obligations of Guarantor under this Guaranty, and Guarantor hereby expressly
waives and surrenders any defense to Guarantor&#8217;s liability hereunder based upon any of the foregoing acts, omissions, things,
agreements or waivers or any of them, it being the purpose and intent of the parties hereto that the Guaranteed Obligations of
Borrower constitute the direct and primary obligations of Guarantor and that the covenants, agreements and all obligations of Guarantor
hereunder be absolute, unconditional and irrevocable.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">12.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Remedies</U>. All remedies afforded to Lender by reason of this Guaranty are separate and cumulative remedies and it
is agreed that no one of such remedies, whether or not exercised by Lender, will be deemed to be in exclusion of any of the other
remedies available to Lender and will in no way limit or prejudice any other legal or equitable remedy that Lender may have hereunder
and with respect to the Guaranteed Obligations. Guarantor agrees that, included within the equitable remedies available to Lender
hereunder is the right of Lender to elect to have any and all of the obligations and agreements of Guarantor hereunder specifically
performed.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">13.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><U>Judicial
Actions</U>. Guarantor hereby waives any and all right to cause a marshaling of the assets of Borrower or any other action by
any court or other governmental body with respect thereto, or to cause Lender to proceed against any security for the
Guaranteed Obligations or any other recourse that Lender may have with respect thereto or to set off the value of any such
security, and further waive any and all requirements that Lender institute any action or proceeding at law or in equity
against Borrower or anyone else, or with respect to the Note, or any collateral security therefor, as a condition precedent
to making demand on or bringing an action or obtaining and/or enforcing a judgment against, Guarantor upon this Guaranty.
Guarantor further waives any requirement that Lender seek performance by Borrower or any other person, of any obligation
under the Note, or any collateral security therefor as a condition precedent to making a demand on, or bringing any action or
obtaining and/or enforcing a judgment against, Guarantor upon this Guaranty, it being agreed that upon the occurrence of an
event of default and acceleration of the Guaranteed Obligations, the obligations of Guarantor under this Guaranty will
without further act mature immediately and automatically, without further notice or demand or any other action by Lender.
Guarantor further acknowledges that time is of the essence with respect to Guarantor&#8217;s obligations under this Guaranty.
Any remedy or right hereby granted that will be found to be unenforceable as to any person or under any circumstance, for any
reason, will in no way limit or prevent the enforcement of such remedy or right as to any other person or circumstances, nor
will such unenforceability limit or prevent enforcement of any other remedy or right hereby granted.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">14.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Bankruptcy of Borrower</U>. Guarantor expressly agrees that Guarantor&#8217;s liability and obligations under this Guaranty
will not in any way be affected by the institution by or against Borrower or any other person or entity of any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceedings, or any other similar proceedings for relief under any bankruptcy law or similar
law for the relief of debtors and that any discharge of any of the Guaranteed Obligations pursuant to any such bankruptcy or similar
law or other law will not discharge or otherwise affect in any way the liabilities and obligations of Guarantor under this Guaranty,
and that upon the institution of any of the above actions, at the sole discretion of Lender, such liabilities and obligations will
be enforceable against Guarantor.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">15.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Waiver of Set Off</U>. Lender hereby waives all rights of set-off Lender has under New Mexico law or the Loan Documents
against any and all deposits held by Lender in the name of Guarantor. Lender does not waive any other rights or remedies of Lender
under New Mexico law or the Loan Documents.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">16.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Miscellaneous</U>.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">A.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>Guarantor agrees to reimburse Lender upon demand for all reasonable out-of-pocket expenses (including reasonable attorneys&#8217;
fees and legal expenses) incurred by Lender arising out of or in connection with any failure of Guarantor to fully and timely perform
Guarantor&#8217;s liabilities and obligations hereunder. In the event of litigation with respect to this Guaranty, the prevailing
party will be entitled to recover its reasonable attorneys&#8217; fees and costs.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">B.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>No delay on the part of Lender in the exercise of any power or right will operate as a waiver thereof, nor will any single
or partial exercise of any power or right preclude other or further exercise thereof or the exercise of any other power or right.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">C.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT>No
invalidity, irregularity or unenforceability of all or any part of the Guaranteed Obligations or of any security therefor or
other recourse with respect thereto will affect, impair or be a defense to this Guaranty, and this Guaranty is a primary
obligation of Guarantor.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">D.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>All notices, demands and requests or other communication to be sent by one party to the other hereunder or required by law
will be in writing and will be deemed to have been validly made, given, served and received if given or served by delivery of same
in person to the addressee or by depositing same with Federal Express or other nationally recognized overnight courier service
for next business day delivery or by depositing same in the United States mail, postage prepaid, registered or certified mail,
return receipt requested, addressed as follows:</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="2" STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; width: 30%">Guarantor:</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif">AMREP Southwest, Inc.</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif">333 Rio Rancho Drive, Suite 202</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif">Rio Rancho, New Mexico 87124</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif">Attn: President</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="2" STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif">Lender:</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif">BOKF, NA dba Bank of Albuquerque</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif">100 Sun Avenue NE, Suite 500</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif">Albuquerque, New Mexico 87109</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Attn: Jordan Herrington, Vice President</TD></TR>
</TABLE>


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">All notices, demands
and requests will be effective upon such personal delivery or upon being deposited with Federal Express or other nationally recognized
overnight air courier or in the United States mail as required above. However, with respect to notices, demands or requests so
deposited with an overnight air courier service or in the United States mail, the time period in which a response to any such notice,
demand or request must be given will commence to run from the next business day following any such deposit with an overnight air
courier service or, in the case of a deposit in the United States mail as provided above, the date on the return receipt of the
notice, demand or request reflecting the date of delivery or rejection of the same by the addressee thereof. Rejection or other
refusal to accept or the inability to deliver because of changed address of which no notice was given will be deemed to be receipt
of the notice, demand or request sent. By giving to the other party hereto at least five (5) days&#8217; written notice thereof
in accordance with the provisions hereof, the parties hereto will have the right from time to time to change their respective addresses
and each will have the right to specify as its address any other address within the United States of America.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">E.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><B>THIS
GUARANTY AND ALL MATTERS RELATING HERETO OR THERETO OR ARISING THEREFROM (WHETHER SOUNDING IN CONTRACT LAW, TORT LAW OR
OTHERWISE), SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
MEXICO, WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES. GUARANTOR HEREBY CONSENTS TO THE JURISDICTION OF ANY STATE OR FEDERAL
COURT LOCATED WITHIN THE COUNTY OF BERNALILLO, STATE OF NEW MEXICO, AND IRREVOCABLY AGREES THAT ALL ACTIONS OR PROCEEDINGS
ARISING OUT OF OR RELATING TO THIS GUARANTY OR THE OTHER LOAN DOCUMENTS SHALL BE LITIGATED IN SUCH COURTS. GUARANTOR
EXPRESSLY SUBMITS AND CONSENTS TO THE JURISDICTION OF THE AFORESAID COURTS AND WAIVES ANY DEFENSE OF FORUM NON
CONVENIENS.</B></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">F.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>Guarantor shall maintain a minimum net worth equal to or greater than $32,000,000.00 measured annually and determined by
review of the financial information required to be provided to Lender by the terms of this Guaranty. Guarantor will provide to
Lender: (a) Guarantor&#8217;s annual unaudited and without footnotes financial statement within one hundred twenty (120) days of
fiscal year end; and (b) Guarantor&#8217;s quarterly unaudited and without footnotes financial statements within sixty (60) days
of each quarter end. All financial information provided to Lender will be in form and content acceptable to Lender in its discretion.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">G.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>The financial statements, information and materials of Guarantor heretofore delivered to Lender fairly and accurately present
in all material respects Guarantor&#8217;s consolidated financial condition (including its assets and liabilities) as of the date
or dates thereof (subject, in the case of the interim financial statements, to normal year-end adjustments and the absence of notes),
and there have been no material adverse changes in Guarantor's financial condition or operations since the date or dates thereof.
Guarantor does not currently have material guarantee obligations, contingent liabilities and liabilities for taxes, or any long-term
leases or unusual forward or long-term commitments, which are not reflected in the most recent financial statements, information
and materials referred to in this section.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">H.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>Paragraph headings herein are for convenience only and will not be deemed part of this Guaranty.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">I.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>The provisions and covenants of this Guaranty shall be binding upon Guarantor, and shall inure to the benefit of Lender,
subsequent holders of this Guaranty, and their respective successors and assigns. For the purpose of this Guaranty, the term &#8220;Guarantor&#8221;
shall mean all persons named as Guarantor and their successors and assigns. All representations, warranties, covenants, agreements
and undertakings of Guarantor hereunder shall be deemed joint and several.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">J.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>For the purposes of this Guaranty, all defined terms contained in this Guaranty shall be construed, whenever the context
of this Guaranty so requires, so that the singular shall be construed as the plural and so that the masculine, feminine and neuter
shall be construed as the plural and so that the masculine, feminine and neuter shall be construed interchangeably as circumstances
require.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in">[SIGNATURE ON NEXT PAGE]</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Dated Effective: June 19, 2020.</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="3" STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: 10pt Times New Roman, Times, Serif">AMREP SOUTHWEST, INC.,</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: 10pt Times New Roman, Times, Serif">a New Mexico corporation</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="3" STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 50%">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 2%">By</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; width: 48%"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/ Carey Plant</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif">&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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Carey Plant, Vice President</TD></TR>
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