<SEC-DOCUMENT>0001104659-20-107847.txt : 20200923
<SEC-HEADER>0001104659-20-107847.hdr.sgml : 20200923
<ACCEPTANCE-DATETIME>20200923164229
ACCESSION NUMBER:		0001104659-20-107847
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		5
CONFORMED PERIOD OF REPORT:	20200922
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:		20200923
DATE AS OF CHANGE:		20200923

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:		201192417

	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>tm2031618d1_8k.htm
<DESCRIPTION>FORM 8-K
<TEXT>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></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="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"><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;September
22, 2020&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></P>

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

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<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: 50%; 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: 50%; 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="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>

<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: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Wingdings">&#168;</FONT></TD><TD STYLE="text-align: left"><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: left">&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="text-align: left; width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Wingdings">&#168;</FONT></TD><TD STYLE="text-align: left"><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: left">&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="text-align: left; width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Wingdings">&#168;</FONT></TD><TD STYLE="text-align: left"><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: left">&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="text-align: left; width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Wingdings">&#168;</FONT></TD><TD STYLE="text-align: left"><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">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Securities registered pursuant to Section 12(b) of the Act:</P>

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

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

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

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

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On September 22, 2020, Lomas Encantadas
Development Company LLC (&ldquo;LEDC&rdquo;), a subsidiary of the Company, entered into a Development Loan Agreement with BOKF,
NA dba Bank of Albuquerque (&ldquo;BOKF&rdquo;). The Development Loan Agreement is evidenced by a Non-Revolving Line of Credit
Promissory Note and is secured by a Mortgage, Security Agreement and Financing Statement, between LEDC and BOKF with respect to
certain planned residential lots within the Lomas Encantadas subdivision located in Rio Rancho, New Mexico. Pursuant to a Guaranty
Agreement entered into by AMREP Southwest Inc. (&ldquo;ASW&rdquo;), a subsidiary of the Company, in favor of BOKF, ASW guaranteed
LEDC&rsquo;s obligations under each of the above agreements.</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">o</TD><TD STYLE="text-align: justify"><U>Initial Available Principal</U>: Pursuant to the loan documentation, BOKF agrees to lend up
to $2,400,000 to LEDC on a non-revolving line of credit basis to partially fund the development of certain planned residential
lots within the Lomas Encantadas subdivision.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">o</TD><TD STYLE="text-align: justify"><U>Repayments</U>: LEDC is required to make periodic principal repayments of borrowed funds not
previously repaid as follows: $1,144,000 on or before December 22, 2022, $572,000 on or before March 22, 2023, $572,000 on or before
June 22, 2023 and $112,000 on or before September 22, 2023. The outstanding principal amount of the loan may be prepaid at any
time without penalty.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">o</TD><TD STYLE="text-align: justify"><U>Maturity Date</U>: The loan is scheduled to mature in September 2023.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">o</TD><TD STYLE="text-align: justify"><U>Interest Rate</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%.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">o</TD><TD STYLE="text-align: justify"><U>Lot Release Price</U>: BOKF is required to release the lien of its mortgage on any lot upon
LEDC making a principal payment of $44,000.</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">LEDC and ASW 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 LEDC&rsquo;s failure to make principal, interest or other payments when due; the failure of LEDC or ASW to observe or
perform their respective covenants under the loan documentation; the representations and warranties of LEDC or ASW being false;&nbsp;the
insolvency or bankruptcy of LEDC or ASW; and&nbsp;the failure of ASW to maintain a 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. LEDC incurred 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; text-indent: 0.5in">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 122.1pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 122.1pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 122.1pt">&nbsp;</P>

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><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 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: 18%; padding-right: 5.4pt; padding-bottom: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><U>Exhibit Number</U></FONT></TD>
    <TD STYLE="width: 82%; padding-right: 5.4pt; padding-bottom: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><U>Description</U></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 6pt; text-align: center"><A HREF="tm2031618d1_ex10-1.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-family: Times New Roman, Times, Serif">10.1</FONT></A></TD>
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 6pt"><A HREF="tm2031618d1_ex10-1.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 10pt">Development Loan Agreement, dated as of September 22, 2020, between BOKF, NA dba Bank of Albuquerque and Lomas Encantadas Development Company, LLC.</FONT></A></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 6pt; text-align: center"><A HREF="tm2031618d1_ex10-2.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-family: Times New Roman, Times, Serif">10.2</FONT></A></TD>
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 6pt"><A HREF="tm2031618d1_ex10-2.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 10pt">Non-Revolving Line of Credit Promissory Note, dated September 22, 2020, by Lomas Encantadas Development Company, LLC in favor of BOKF, NA dba Bank of Albuquerque.</FONT></A></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 6pt; text-align: center"><A HREF="tm2031618d1_ex10-3.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-family: Times New Roman, Times, Serif">10.3</FONT></A></TD>
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 6pt"><A HREF="tm2031618d1_ex10-3.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 10pt">Mortgage, Security Agreement and Financing Statement, dated as of September 22, 2020, between BOKF, NA dba Bank of Albuquerque and Lomas Encantadas Development Company, LLC.</FONT></A></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 6pt; text-align: center"><A HREF="tm2031618d1_ex10-4.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-family: Times New Roman, Times, Serif">10.4</FONT></A></TD>
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 6pt"><A HREF="tm2031618d1_ex10-4.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 10pt">Guaranty Agreement, dated as of September 22, 2020, made by AMREP Southwest Inc. for the benefit of BOKF, NA dba Bank of Albuquerque.</FONT></A></TD></TR>
</TABLE>
<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">&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="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>

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<TR>
    <TD STYLE="width: 50%">&nbsp;</TD>
    <TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 47%">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>AMREP Corporation</B></FONT></TD></TR>
<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Date: September 23, 2020</FONT></TD>
    <TD STYLE="vertical-align: bottom; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">By:</FONT></TD>
    <TD STYLE="vertical-align: bottom">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; border-bottom: black 0.75pt solid">/s/ Christopher
V. Vitale</P></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Name: Christopher V. Vitale</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Title: President and Chief Executive Officer</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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


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

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

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    <TD STYLE="width: 18%; padding-right: 5.4pt; padding-bottom: 6pt; font-size: 10pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><U>Exhibit Number</U></FONT></TD>
    <TD STYLE="width: 82%; padding-right: 5.4pt; padding-bottom: 6pt; font-size: 10pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><U>Description</U></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 6pt; text-align: center; font-size: 10pt"><A HREF="tm2031618d1_ex10-1.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-family: Times New Roman, Times, Serif">10.1</FONT></A></TD>
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 6pt; font-size: 10pt"><A HREF="tm2031618d1_ex10-1.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 10pt">Development Loan Agreement, dated as of September 22, 2020, between BOKF, NA dba Bank of Albuquerque and Lomas Encantadas Development Company, LLC.</FONT></A></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 6pt; text-align: center; font-size: 10pt"><A HREF="tm2031618d1_ex10-2.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-family: Times New Roman, Times, Serif">10.2</FONT></A></TD>
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 6pt; font-size: 10pt"><A HREF="tm2031618d1_ex10-2.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 10pt">Non-Revolving Line of Credit Promissory Note, dated September 22, 2020, by Lomas Encantadas Development Company, LLC in favor of BOKF, NA dba Bank of Albuquerque.</FONT></A></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 6pt; text-align: center; font-size: 10pt"><A HREF="tm2031618d1_ex10-3.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-family: Times New Roman, Times, Serif">10.3</FONT></A></TD>
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 6pt; font-size: 10pt"><A HREF="tm2031618d1_ex10-3.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 10pt">Mortgage, Security Agreement and Financing Statement, dated as of September 22, 2020, between BOKF, NA dba Bank of Albuquerque and Lomas Encantadas Development Company, LLC.</FONT></A></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 6pt; text-align: center; font-size: 10pt"><A HREF="tm2031618d1_ex10-4.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-family: Times New Roman, Times, Serif">10.4</FONT></A></TD>
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 6pt; font-size: 10pt"><A HREF="tm2031618d1_ex10-4.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 10pt">Guaranty Agreement, dated as of September 22, 2020, made by AMREP Southwest Inc. for the benefit of BOKF, NA dba Bank of Albuquerque.</FONT></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">&nbsp;</P>

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<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>tm2031618d1_ex10-1.htm
<DESCRIPTION>EXHIBIT 10.1
<TEXT>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><B>Exhibit 10.1</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>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 (&ldquo;Agreement&rdquo;) is made and entered into effective as of September 22, 2020 (the &ldquo;Effective Date&rdquo;),
among BOKF, NA dba Bank of Albuquerque (the &ldquo;Lender&rdquo;); and Lomas Encantadas Development Company, LLC, a New Mexico
limited liability company (the &ldquo;Borrower&rdquo;), 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 Two Million Four Hundred Thousand and No/100 Dollars ($2,400,000.00), to partially
finance Borrower&rsquo;s development of at least 75 residential Lots (defined below) within Lomas Encantadas Unit 2B (Phase 3)
on the real property more particularly described on <U>Exhibit &ldquo;A&rdquo;</U> attached hereto and made a part hereof (the
 &ldquo;Mortgaged Property&rdquo;).</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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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 Two Million Four Hundred Thousand and No/100
Dollars ($2,400,000.00), 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 &ldquo;Development&rdquo;); (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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>BORROWER&rsquo;S
NOTE</U>: The loan shall be evidenced by a Non-Revolving Line of Credit Promissory Note (the &ldquo;Note&rdquo;) in the principal
amount of Two Million Four Hundred Thousand and No/100 Dollars ($2,400,000.00), 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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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 are evidenced by a Mortgage, Security Agreement and Financing Statement dated the same day as this Agreement
made by Borrower in favor of Lender (the &ldquo;Mortgage&rdquo;).</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">3.2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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 &ldquo;HSIA&rdquo;).</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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Guaranty</U>:
AMREP Southwest Inc. (the &ldquo;Guarantor&rdquo;) shall sign and deliver to Lender a Guaranty Agreement in the form required by
Lender (the &ldquo;Guaranty&rdquo;).</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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Collateral
Assignment of Contracts</U>: The Borrower shall assign to Lender and grant a security interest to Lender in all contracts with
contractors, architects and engineers (the &ldquo;Assignment&rdquo;).</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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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 &ldquo;Additional Documents&rdquo;). 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&rsquo;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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Loan
Documents</U>: This Agreement, the Note, the Mortgage, the Assignment, the Guaranty, the HSIA, and the Additional Documents (collectively,
the &ldquo;Loan Documents&rdquo;) 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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Recording
of Security Documents</U>: The Mortgage 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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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 &ldquo;Title Company&rdquo;), 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&rsquo; and
materialmen&rsquo;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; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">4.5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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"></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">4.6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Survey
or Plat</U>: Borrower shall deliver to Lender and the Title Company a plat 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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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 the City of Rio Rancho, 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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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 &ldquo;Development Budget&rdquo;), 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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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 (&ldquo;NMSOS&rdquo;); (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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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 &ldquo;as completed&rdquo; appraised value of the Development as of the date of the initial advance under the Note.
Borrower&rsquo;s equity in the Mortgaged Property, including without limitation its investment in the offsite infrastructure supporting
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; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">4.13.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Loan
Origination Fee</U>: At the time the Note is signed, Borrower shall remit to Lender a fully earned, non-refundable loan origination
fee of Twelve Thousand and No/100s Dollars ($12,000.00).</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; 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: 0.5in">5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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">5.2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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&rsquo;
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; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">5.3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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&rsquo;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&rsquo;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"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">5.4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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&rsquo;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: 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">5.6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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&rsquo;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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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 0pt 1in; text-align: justify; text-indent: 0in">&nbsp;</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">5.9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>No
Change</U>: Since January 1, 2020, 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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Litigation</U>:
There is no litigation, investigation or proceeding of or before any arbitrator, mediator or any governmental authority or, to
Borrower&rsquo;s knowledge, threatened by or against Borrower or against any of any Borrower&rsquo;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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Employee
Retirement Income Security Act of 1994 (ERISA)</U>: Other than as disclosed in the filings of AMREP Corporation made to the Securities
and Exchange Commission, (a) Borrower has not incurred any &ldquo;accumulated funding deficiency&rdquo; 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, and (b) no reportable event described in Sections
4042(a) or 4043(b) of ERISA with respect to any such plan has occurred.</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">5.12.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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&rsquo; 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&rsquo;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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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, &ldquo;Tax Returns&rdquo;) 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&rsquo;s properties or assets, and all other taxes, fees or other
charges imposed on Borrower or any of Borrower&rsquo;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&rsquo;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 &ldquo;reportable
transaction&rdquo; (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&rsquo;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"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">5.14.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Margin
Regulations</U>: No part of the proceeds of the Loan shall be used for buying or &ldquo;carrying&rdquo; any &ldquo;margin stock&rdquo;
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">5.15.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Investment
Company Act:</U> Borrower is not an &ldquo;investment company&rdquo;, or a company &ldquo;controlled&rdquo; by an &ldquo;investment
company&rdquo;, 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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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&rsquo;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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Adverse
Circumstances</U>: To Borrower&rsquo;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"></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">5.20.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Accuracy
of Information</U>: To Borrower's knowledge, all factual information provided to Lender in connection with the Loan evidenced by
the Note 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">5.21.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Environmental</U>:
To Borrower&rsquo;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&rsquo;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&rsquo;s knowledge, shall be, named
as a party that is pending or, to any Borrower&rsquo;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; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">5.22.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Compliance
with Laws</U>: To Borrower&rsquo;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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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"></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">5.26.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Continuation
of Representations and Warranties; Borrower&rsquo;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 &ldquo;to
Borrower&rsquo;s knowledge&rdquo; means to the actual knowledge of Borrower&rsquo;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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>BORROWER&rsquo;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; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">6.1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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: (a) quarterly unaudited and without footnotes financial statements within sixty (60) days of each quarter
end, beginning with the quarter ending October 31, 2020; and (b) annual unaudited and without footnotes financial statements within
one hundred twenty (120) days of fiscal year 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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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&rsquo;s obtaining knowledge thereof, excluding only: (a) encumbrances in favor of Lender;
(b) deposits to secure payment of worker&rsquo;s compensation, unemployment insurance and similar benefits; (c) statutory liens
arising in the ordinary course of Borrower&rsquo;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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Payment
of Taxes</U>: All taxes, assessments and governmental charges or levies imposed on the Borrower or on Borrower&rsquo;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"></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">6.5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Lender&rsquo;s
Access</U>: Upon one (1) business day&rsquo;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&rsquo;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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">6.7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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"></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">6.10.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Compliance
with Organizational Documents</U>: Borrower shall timely perform all of its responsibilities and obligations under the Borrower&rsquo;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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Completion
of Development</U>: Borrower shall complete the work of the Development on or before May 17, 2022.</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">6.13.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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&rsquo;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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>BORROWER&rsquo;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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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&rsquo;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&rsquo;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 or more Final Plats (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
(as defined below); (ii) one or more Supplemental Declarations of Covenants, Conditions and Restrictions bringing the Mortgaged
Property into the Lomas Encantadas Master Homeowners Association, Inc. and Subsidiary Declarations associated therewith; and (iii)
one or more Notices of Levy in connection with the Lomas Encantadas Public Improvement District.</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">7.2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">7.3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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&rsquo;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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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&rsquo;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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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 &ldquo;Development Costs&rdquo;).</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">8.2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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; text-align: justify; text-indent: 1in">8.3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Request
for Funds</U>: Borrower shall deliver to Lender a request for funds (a &ldquo;Request for Funds&rdquo;) 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&rsquo;s contractor and reviewed by Huitt-Zollars, Inc.
(the &ldquo;Engineer/Inspector&rdquo;). 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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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). &ldquo;Hard Costs&rdquo; 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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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). &ldquo;Soft Costs&rdquo; 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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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"></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">8.4.6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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; 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">8.4.9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 the City of Rio Rancho, 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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Lender&rsquo;s
Inspection</U>: Lender shall engage the Engineer/Inspector, at Borrower&rsquo;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&rsquo;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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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"></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">8.7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">8.8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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 &ldquo;Events of Default&rdquo; 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 &ldquo;Event of Default&rdquo; 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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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&rsquo;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"></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">11.2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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; text-align: justify; text-indent: 0.5in">12.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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, 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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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 CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in; width: 46%">To Borrower:</TD>
    <TD STYLE="width: 54%; text-align: justify">Lomas Encantadas Development Company, LLC</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">333 Rio Rancho Drive, Suite 202</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">Rio Rancho, New Mexico 87124</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">Attention: Vice President</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">To Lender:</TD>
    <TD STYLE="text-align: justify">BOKF, NA dba Bank of Albuquerque</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">100 Sun Avenue NE, Suite 500</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">Albuquerque, New Mexico 87109</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">Attention: Jordan Herrington, Sr. Vice President</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"></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">12.3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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&rsquo;s obligations under this Agreement. In the event of Lender&rsquo;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; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">12.4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</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 SANDOVAL, 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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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"></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">12.10.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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">12.12.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Right
to Defend</U>: Lender shall have the right, but not the obligation, at Borrower&rsquo;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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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&rsquo; fees and amounts paid in settlement) caused by Borrower&rsquo;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&rsquo;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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>PARTIAL
RELEASES</U>. From time to time, after the recording of the Final Plats (defined below) in the real property records of Sandoval
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 &ldquo;Request&rdquo;)
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 &ldquo;Business Day&rdquo; is any day in which the Lender is open for business. The release price (the &ldquo;Release
Price&rdquo;) for each Lot shall be Forty-Four Thousand and No/100 Dollars ($44,000.00). 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 one or more preliminary plats for the Mortgaged Property from the City of Rio Rancho (the &ldquo;City&rdquo;),
which plats the Lender has previously reviewed and approved (the &ldquo;Lender Approved Preliminary Plats&rdquo;) and which will
become final plats (the &ldquo;Final Plats&rdquo;). Borrower will not materially change the Lender Approved Preliminary Plats 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 the City 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. As used in this Agreement, the term &ldquo;Lot&rdquo; means a lot shown on the Lender Approved
Preliminary Plats. 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; 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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>REAPPRAISAL</U>.
If, as determined in Lender&rsquo;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&rsquo;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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&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>&nbsp;&ldquo;BORROWER&rdquo;:</TD>
    <TD COLSPAN="2">LOMAS ENCANTADAS DEVELOPMENT COMPANY, LLC,</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">a New Mexico limited liability company</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%">&nbsp;</TD>
    <TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 47%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>By</TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-left: 0.125in">/s/ Carey A. Plant</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>Carey A. Plant, Vice President</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&ldquo;LENDER&rdquo;:</TD>
    <TD COLSPAN="2">BOKF, NA dba BANK OF ALBUQUERQUE</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>By</TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-left: 0.125in">/s/ Jordan Herrington</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>Jordan Herrington, Senior 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">&nbsp;</P>

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2.5in; 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: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><U>EXHIBIT &ldquo;A&rdquo;<BR>
</U>Legal Description</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">Tract numbered Nine-A (9-A) of LOMAS ENCANTADAS
UNIT 2-B PHASES I &amp; II, as the same is shown and designated on the Plat entitled, &quot;LOMAS ENCANTADAS UNIT 2-B PHASES I
 &amp; II, A SUBDIVISION OF TRACT 9, UNIT TWENTY, WITHIN SECTION 26, T. 13 N., R. 3 E., N.M.P.M., CITY OF RIO RANCHO, SANDOVAL COUNTY,
NEW MEXICO, AUGUST 2018&quot;, filed in the office of the County Clerk of Sandoval County, New Mexico on October 17, 2018 in Vol.
3, folio 4303 (Rio Rancho Estates Plat Book No. 28, Pages 30-33).</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">LESS AND EXCEPTING:</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">A certain Parcel of land located within
Section 26, Township 13 North, Range 3 East, N.M.P.M., within a portion of Tract 9A as shown on the Subdivision Plat of Lomas Encantadas
Unit 2B Phase I &amp; II in Unit Twenty Rio Rancho Estates recorded in the Office of the County Clerk of Sandoval County on November
11, 2005 in Volume 3, Folio 4339 (R.R.E. Book 28, Pages 30 - 33), Rio Rancho, Sandoval County, New Mexico, said Parcel being more
particularly described 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">Commencing at the Brass Cap NM44-R1B, from
whence the Brass Cap NM44-R1A bears S.52&deg;35&rsquo;50&rdquo;E. 7580.63 feet; thence, S.05&deg;26&rsquo;59&rdquo;W. 9686.35 feet
to the Southwest corner of the Plat of Lomas Encantadas Unit 2B Phase I &amp; II as recorded in the Office of the County Clerk
of Sandoval County on January 17, 2019 in Volume 3, Folio 4339 (R.R.E. Book 28, Pages 30 &ndash; 33) being the Point of Beginning
of the Parcel herein described; thence, N.46&deg;43&rsquo;44&rdquo;E. along the west line of said Lomas Encantadas Unit 2B Phase
I &amp; II, 1834.18; S. 43&deg;16&rsquo;15&rdquo;E. 135.01 feet thence, S. 46&deg;43&rsquo;45&rdquo;W. 20.00 feet; thence, S. 43&deg;16&rsquo;15&rdquo;E.
210.30 feet to a point of curvature; thence, Southeasterly 76.96 feet along a curve to the right (said curve having a radius of
175.00 feet, a delta angle of 25&deg;11&rsquo;53&rdquo; and a chord which bears S.30&deg;40&rsquo;19&rdquo;E., 76.34 feet) to a
point of tangency; thence, S. 18&deg;04&rsquo;22&rdquo;E. 21.11 feet to a point of curvature; thence, Southeasterly 98.95 feet
along a curve to the left (said curve having a radius of 225.00 feet, a delta angle of 25&deg;11&rsquo;53&rdquo; and a chord which
bears S.30&deg;40&rsquo;19&rdquo;E., 98.16 feet) to a point of tangency; thence, S. 43&deg;16&rsquo;15&rdquo;E. 26.92 feet to a
point of curvature; thence, Southeasterly 13.56 feet along a curve to the right (said curve having a radius of 25.00 feet, a delta
angle of 31&deg;05&rsquo;06&rdquo; and a chord which bears S.27&deg;43&rsquo;43&rdquo;E., 13.40 feet) to a point of tangency; thence,
S.12&deg;11&rsquo;10&rdquo;E. 389.83 feet; thence, S.09&deg;56&rsquo;25&rdquo;W. 83.91 feet; thence, S. 23&deg;18&rsquo;20&rdquo;E.
139.99 feet to a point on the east line of said Lomas Encantadas Unit 2B Phase I &amp; II; thence, S.66&deg;41&rsquo;39&rdquo;W.
along the east line of said Lomas Encantadas Unit 2B Phase I &amp; II, 124.60 feet; thence, S. 73&deg;14&rsquo;31&rdquo;W. continuing
along the east line of said Lomas Encantadas Unit 2B Phase I &amp; II, 1151.51 feet to a point of curvature; thence, Northwesterly
continuing along the east line of said Lomas Encantadas Unit 2B Phase I &amp; II, 456.82 feet along a curve to the right (said
curve having a radius of 400.00 feet, a delta angle of 65&deg;26&rsquo;03&rdquo; and a chord which bears N.74&deg;02&rsquo;28&rdquo;W.,
432.39 feet) to a point of tangency; thence, N.41&deg;19&rsquo;26&rdquo;W. continuing along the east line of said Lomas Encantadas
Unit 2B Phase I &amp; II, 83.93 feet; thence, N.89&deg;23&rsquo;58&rdquo;W. continuing along the east line of said Lomas Encantadas
Unit 2B Phase I &amp; II, 112.89 feet to the Point of Beginning of the Parcel of land herein described.</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">&nbsp;</P>

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<DOCUMENT>
<TYPE>EX-10.2
<SEQUENCE>3
<FILENAME>tm2031618d1_ex10-2.htm
<DESCRIPTION>EXHIBIT 10.2
<TEXT>
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<HEAD>
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<BODY STYLE="font: 10pt Times New Roman, Times, Serif">

<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">&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>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 50%; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">$2,400,000.00</TD>
    <TD STYLE="text-align: right">September 22, 2020</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">Note #__________</TD>
    <TD STYLE="text-align: right">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 Lomas Encantadas Development Company, LLC, a New Mexico limited liability company (&ldquo;Maker&rdquo;), hereby
promises to pay to the order of BOKF, NA dba Bank of Albuquerque (&ldquo;Lender&rdquo;), 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 (&ldquo;Note&rdquo;), the principal sum of Two Million Four Hundred Thousand and No/100s Dollars
($2,400,000.00), 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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;<U>Business
Day</U>&rdquo; shall have the meaning ascribed to such term in 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: 1in">B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>&ldquo;Event
of Default&rdquo;</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">C.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>&ldquo;Interest
Rate&rdquo;</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 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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;<U>LIBOR</U>&rdquo;
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 &ldquo;Eurocurrency
Liabilities&rdquo; (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
 &ldquo;Replacement Rate&rdquo;), 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&rsquo;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; text-align: justify; text-indent: 1in">E.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>&ldquo;Loan&rdquo;</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">F.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>&ldquo;Loan
Agreement&rdquo;</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">G.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>&ldquo;Maturity
Date&rdquo;</U> shall mean September 22, 2023, 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">H.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>&ldquo;Mortgage&rdquo;</U>
shall mean the Mortgage, Security Agreement and Financing Statement dated the same day as this Note made by Maker in favor of Lender
securing, among other things, the indebtedness evidenced by this Note.</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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Payments</U>.
Maker shall make monthly payments of interest only on the twenty-second (22<SUP>nd</SUP>) day of each month beginning on October
22, 2020, and continuing on the twenty-second (22<SUP>nd</SUP>) day of each month thereafter through and including August 22, 2023.
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; 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 addition, Maker
shall make the following required principal payments (the &ldquo;Curtailment Payments&rdquo;) to Lender: (i) One Million One Hundred
Forty-Four Thousand and No/100s Dollars ($1,144,000.00), on or before December 22, 2022; (ii) Five Hundred Seventy-Two Thousand
and No/100s Dollars ($572,000.00) on or before March 22, 2023; (iii) Five Hundred Seventy-Two Thousand and No/100s Dollars ($572,000.00)
on or before June 22, 2023; and (iv) One Hundred Twelve Thousand and No/100s Dollars ($112,000.00) on or before September 22, 2023.
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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Loan
Origination Fee</U>. On the date this Note is signed, Maker will pay to Lender a loan origination fee of Twelve Thousand and No/100s
Dollars ($12,000.00).</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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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 &ldquo;Default Rate&rdquo;). 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; 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">7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Pre-Payment</U>.
This Note may be prepaid in whole or in part without penalty upon not less than two (2) business days&rsquo; 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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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; 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">11.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Governing
Law</U>. Payment of this Note is secured, without limitation, by the Mortgage, which covers real and personal property located
in Rio Rancho, 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 SANDOVAL, STATE OF NEW MEXICO,
AND IRREVOCABLY AGREES THAT, SUBJECT TO LENDER&rsquo;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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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>

<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">13.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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>

<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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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.&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; text-indent: 1in">&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
Note is given to evidence an obligation incurred for business purposes and not for personal, single family residential or agricultural
purposes.</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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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>

<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>D.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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>

<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">[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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<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&ldquo;MAKER&rdquo;</TD>
    <TD COLSPAN="2" STYLE="text-align: justify">LOMAS ENCANTADAS DEVELOPMENT COMPANY, LLC, </TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: justify">a New Mexico limited liability company</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 3%; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 47%; text-align: justify">&nbsp;</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="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">By</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: justify">/s/ Carey A. Plant</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">Carey A. Plant, Vice President</TD></TR>
</TABLE>
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<DOCUMENT>
<TYPE>EX-10.3
<SEQUENCE>4
<FILENAME>tm2031618d1_ex10-3.htm
<DESCRIPTION>EXHIBIT 10.3
<TEXT>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><B>Exhibit 10.3</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: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">THIS MORTGAGE, SECURITY AGREEMENT AND FINANCING
STATEMENT IS A LINE OF CREDIT MORTGAGE AS PROVIDED IN NMSA 1978 &sect;48-7-4.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 (&ldquo;Mortgage&rdquo;) is made effective as of the 22<SUP>nd</SUP> day of September, 2020,
by and between Lomas Encantadas Development Company, LLC, a New Mexico limited liability company (&ldquo;Mortgagor&rdquo;), 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
(&ldquo;Mortgagee&rdquo;), 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 &ldquo;Land&rdquo;) situated in Sandoval County, New Mexico,
which is described on <U>Exhibit &ldquo;A&rdquo;</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 $2,400,000.00 (the &ldquo;Note&rdquo;). In connection with the loan evidenced by the Note (the &ldquo;Loan&rdquo;), Mortgagor
and Mortgagee intend to enter into a Loan Agreement (the &ldquo;Loan Agreement&rdquo;).</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 (the &ldquo;Default Rate&rdquo;).</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&rsquo;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"></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">(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 &ldquo;Real Property&rdquo;);</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;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&rsquo; contracts engineers&rsquo; contracts, other professional contracts, brokers&rsquo; 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>

<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">(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&rsquo;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&rsquo;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 &ldquo;Collateral.&rdquo; All of the
above-described Real Property, improvements, fixtures, Collateral and other property are hereinafter collectively referred to as
the &ldquo;Mortgaged Property,&rdquo; 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">&nbsp;</P>

<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&rsquo;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; 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&rsquo; fees, court costs, abstracting expenses, receivers&rsquo; fees, appraisers&rsquo; fees, watchmen&rsquo;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 &ldquo;Loan Documents&rdquo;) (all of the above-described
indebtedness and obligations are hereinafter collectively referred to as the &ldquo;Secured Indebtedness&rdquo;).</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">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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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&rsquo;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; (v) matters reflected in the policy of title insurance; and (vi) other matters approved by
Mortgagee, including without limitation those matters approved by Mortgagee in Section 7.1 of the Loan Agreement (collectively,
 &ldquo;Permitted Liens&rdquo;), 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.&#9;<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; 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">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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 &ldquo;premium paid&rdquo; 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; 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">5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>CONTRACTS,
FRANCHISES AND LICENSES</U>. The Mortgagor shall comply in all material respects with and observe all of Mortgagor&rsquo;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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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&rsquo;s fees (collectively &ldquo;Losses&rdquo;)
caused by or resulting from, either directly or indirectly, Mortgagee&rsquo;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; 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">9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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; 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">13.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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, &ldquo;Events of Default&rdquo; and individually, &ldquo;Event of Default&rdquo;):</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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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&rsquo;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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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; text-align: justify; text-indent: 1in">14.6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 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">14.7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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&rsquo;s right of redemption in partial
or total satisfaction of the Mortgagor&rsquo;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&rsquo;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&rsquo;
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>

<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">15.3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Attorneys&rsquo;
Fees and Costs</U>. The losing party agrees to pay and reimburse the prevailing party for all reasonable attorneys&rsquo; 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&rsquo;s security or liens and/or any action in bankruptcy or
probate.</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 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">15.4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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&rsquo;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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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>

<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">18.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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>

<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">20.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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&rsquo;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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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&rsquo;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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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; 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">26.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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 SANDOVAL, 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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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 &ldquo;construction mortgage&rdquo; under applicable provisions of
the Uniform Commercial Code.</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">33.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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&rsquo; 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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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3in; text-indent: -3in">&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>&ldquo;MORTGAGOR&rdquo;</TD>
    <TD COLSPAN="2">LOMAS ENCANTADAS DEVELOPMENT COMPANY, LLC,</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">a New Mexico limited liability company</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%">&nbsp;</TD>
    <TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 47%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>By</TD>
    <TD STYLE="border-bottom: Black 1pt solid">/s/ Carey A. Plant</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>Carey A. Plant, Vice President</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</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">&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 September 21, 2020, by Carey A. Plant, Vice President of Lomas Encantadas Development Company, 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 CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 53%; text-align: justify">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-left: 0.25in; width: 47%; text-align: justify">/s/ Karen Lee Ward</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">Notary Public</TD></TR>
</TABLE>
<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: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">My Commission Expires: November 18, 2021</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">&nbsp;</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: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><U>EXHIBIT A</U><BR>
Legal Description</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">Tract numbered Nine-A (9-A) of LOMAS ENCANTADAS
UNIT 2-B PHASES I &amp; II, as the same is shown and designated on the Plat entitled, &quot;LOMAS ENCANTADAS UNIT 2-B PHASES I
 &amp; II, A SUBDIVISION OF TRACT 9, UNIT TWENTY, WITHIN SECTION 26, T. 13 N., R. 3 E., N.M.P.M., CITY OF RIO RANCHO, SANDOVAL COUNTY,
NEW MEXICO, AUGUST 2018&quot;, filed in the office of the County Clerk of Sandoval County, New Mexico on October 17, 2018 in Vol.
3, folio 4303 (Rio Rancho Estates Plat Book No. 28, Pages 30-33).</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">LESS AND EXCEPTING:</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">A certain Parcel of land located within
Section 26, Township 13 North, Range 3 East, N.M.P.M., within a portion of Tract 9A as shown on the Subdivision Plat of Lomas Encantadas
Unit 2B Phase I &amp; II in Unit Twenty Rio Rancho Estates recorded in the Office of the County Clerk of Sandoval County on November
11, 2005 in Volume 3, Folio 4339 (R.R.E. Book 28, Pages 30 - 33), Rio Rancho, Sandoval County, New Mexico, said Parcel being more
particularly described 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">Commencing at the Brass Cap NM44-R1B, from
whence the Brass Cap NM44-R1A bears S.52&deg;35&rsquo;50&rdquo;E. 7580.63 feet; thence, S.05&deg;26&rsquo;59&rdquo;W. 9686.35 feet
to the Southwest corner of the Plat of Lomas Encantadas Unit 2B Phase I &amp; II as recorded in the Office of the County Clerk
of Sandoval County on January 17, 2019 in Volume 3, Folio 4339 (R.R.E. Book 28, Pages 30 &ndash; 33) being the Point of Beginning
of the Parcel herein described; thence, N.46&deg;43&rsquo;44&rdquo;E. along the west line of said Lomas Encantadas Unit 2B Phase
I &amp; II, 1834.18; S. 43&deg;16&rsquo;15&rdquo;E. 135.01 feet thence, S. 46&deg;43&rsquo;45&rdquo;W. 20.00 feet; thence, S. 43&deg;16&rsquo;15&rdquo;E.
210.30 feet to a point of curvature; thence, Southeasterly 76.96 feet along a curve to the right (said curve having a radius of
175.00 feet, a delta angle of 25&deg;11&rsquo;53&rdquo; and a chord which bears S.30&deg;40&rsquo;19&rdquo;E., 76.34 feet) to a
point of tangency; thence, S. 18&deg;04&rsquo;22&rdquo;E. 21.11 feet to a point of curvature; thence, Southeasterly 98.95 feet
along a curve to the left (said curve having a radius of 225.00 feet, a delta angle of 25&deg;11&rsquo;53&rdquo; and a chord which
bears S.30&deg;40&rsquo;19&rdquo;E., 98.16 feet) to a point of tangency; thence, S. 43&deg;16&rsquo;15&rdquo;E. 26.92 feet to a
point of curvature; thence, Southeasterly 13.56 feet along a curve to the right (said curve having a radius of 25.00 feet, a delta
angle of 31&deg;05&rsquo;06&rdquo; and a chord which bears S.27&deg;43&rsquo;43&rdquo;E., 13.40 feet) to a point of tangency; thence,
S.12&deg;11&rsquo;10&rdquo;E. 389.83 feet; thence, S.09&deg;56&rsquo;25&rdquo;W. 83.91 feet; thence, S. 23&deg;18&rsquo;20&rdquo;E.
139.99 feet to a point on the east line of said Lomas Encantadas Unit 2B Phase I &amp; II; thence, S.66&deg;41&rsquo;39&rdquo;W.
along the east line of said Lomas Encantadas Unit 2B Phase I &amp; II, 124.60 feet; thence, S. 73&deg;14&rsquo;31&rdquo;W. continuing
along the east line of said Lomas Encantadas Unit 2B Phase I &amp; II, 1151.51 feet to a point of curvature; thence, Northwesterly
continuing along the east line of said Lomas Encantadas Unit 2B Phase I &amp; II, 456.82 feet along a curve to the right (said
curve having a radius of 400.00 feet, a delta angle of 65&deg;26&rsquo;03&rdquo; and a chord which bears N.74&deg;02&rsquo;28&rdquo;W.,
432.39 feet) to a point of tangency; thence, N.41&deg;19&rsquo;26&rdquo;W. continuing along the east line of said Lomas Encantadas
Unit 2B Phase I &amp; II, 83.93 feet; thence, N.89&deg;23&rsquo;58&rdquo;W. continuing along the east line of said Lomas Encantadas
Unit 2B Phase I &amp; II, 112.89 feet to the Point of Beginning of the Parcel of land herein described.</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">&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>tm2031618d1_ex10-4.htm
<DESCRIPTION>EXHIBIT 10.4
<TEXT>
<HTML>
<HEAD>
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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">Exhibit 10.4</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</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 &ldquo;Guaranty&rdquo;) is made by AMREP Southwest Inc., a New Mexico corporation (the &ldquo;Guarantor&rdquo;), to and for
the benefit of BOKF, NA dba Bank of Albuquerque (the &ldquo;Lender&rdquo;), 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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lender
and Lomas Encantadas Development Company, LLC, a New Mexico limited liability company, are parties to a Development Loan Agreement
dated the same day as this Guaranty (the &ldquo;Loan Agreement&rdquo;), under the terms of which Lender agreed to lend to Borrower,
and Borrower agreed to borrow from Lender, up to the principal amount of $2,400,000.00 for the purposes set forth in the Loan Agreement
(the &ldquo;Loan&rdquo;).</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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 $2,400,000.00 (the &ldquo;Note&rdquo;).</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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Note is secured by, among other things, a Mortgage, Security Agreement and Financing Statement (the &ldquo;Mortgage&rdquo;), dated
the same day as this Guaranty made by Borrower in favor 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">D.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Guarantor&rsquo;s
execution of this Guaranty is one of the conditions precedent to Lender&rsquo;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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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&rsquo;
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 &ldquo;Guaranteed Obligations&rdquo;). Notwithstanding anything else
contained in this Guaranty, the &ldquo;Guaranteed Obligations&rdquo; do not include the HSIA (as defined in the Loan Agreement)
or any liabilities or obligations thereunder. Guarantor agrees that Guarantor&rsquo;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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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&rsquo;s subrogation
rights or Guarantor&rsquo;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&rsquo;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&rsquo;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&rsquo;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; 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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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&rsquo;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; 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">5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Guarantor&rsquo;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&rsquo; 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&rsquo;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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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"></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">9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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; 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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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&rsquo;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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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&rsquo;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; 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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Bankruptcy
of Borrower</U>. Guarantor expressly agrees that Guarantor&rsquo;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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Guarantor
agrees to reimburse Lender upon demand for all reasonable out-of-pocket expenses (including reasonable attorneys&rsquo; fees and
legal expenses) incurred by Lender arising out of or in connection with any failure of Guarantor to fully and timely perform Guarantor&rsquo;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&rsquo; 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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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; text-indent: 1in">&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;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>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&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="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; width: 39%">Guarantor:</TD>
    <TD STYLE="width: 61%; text-align: justify; text-indent: 0in">AMREP Southwest Inc.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: justify; text-indent: 0in">333 Rio Rancho Drive, Suite 202</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: justify; text-indent: 0in">Rio Rancho, New Mexico 87124</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: justify; text-indent: 0in">Attn: President</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: justify; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Lender:</TD>
    <TD STYLE="text-align: justify; text-indent: 0in">BOKF, NA dba Bank of Albuquerque</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: justify; text-indent: 0in">100 Sun Avenue NE, Suite 500</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: justify; text-indent: 0in">Albuquerque, New Mexico 87109</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: justify; text-indent: 0in">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 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&rsquo; 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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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 SANDOVAL, 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; 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">F.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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&rsquo;s
annual unaudited and without footnotes financial statement within one hundred twenty (120) days of fiscal year end; and (b) Guarantor&rsquo;s
quarterly unaudited and without footnotes financial statements within sixty (60) days of each quarter end, beginning with the quarter
ending October 31, 2020. 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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Financial
Condition</U>: The financial statements, information and materials of Guarantor heretofore delivered to Lender fairly and accurately
present in all material respects Guarantor&rsquo;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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 &ldquo;Guarantor&rdquo;
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.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Dated Effective: September 22, 2020.</P>

<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%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">AMREP SOUTHWEST INC.,</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">a New Mexico corporation</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%">&nbsp;</TD>
    <TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 47%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>By</TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-left: 0.25in">/s/ Carey A. Plant</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-left: 0.25in">Carey A. Plant, Vice President</TD></TR>
</TABLE>
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