Document:

Exhibit 10.3

 

MORTGAGE, SECURITY AGREEMENT

AND FINANCING STATEMENT

 

THIS MORTGAGE, SECURITY AGREEMENT
AND FINANCING STATEMENT (“Mortgage”) is made effective as of the 24th day of June, 2021, is made by Wymont LLC,
a New Mexico limited liability company (“Mortgagor”), 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 (“Mortgagee”), having an office and mailing address
at 100 Sun Avenue NE, Suite 500, Albuquerque, New Mexico 87109, with reference to the following:

 

(a)       Mortgagor
is the owner of the fee simple interest in the certain real estate (the “Land”) situated in Bernalillo County, New Mexico,
which is described on Exhibit “A” attached to this Mortgage and incorporated herein by reference as if fully set forth
herein.

 

(b)       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 $7,375,000.00, made by Mortgagor in favor of Mortgagee (the “Note”). In connection with the loan evidenced by the Note
(the “Loan”), Mortgagor and Mortgagee intend to enter into a Loan Agreement governing the Loan (the “Loan Agreement”).

 

(c)       The
Note provides that, during an Event of Default thereunder or after the maturity thereof, the entire unpaid principal balance shall bear
interest at the rate per annum equal to the lower of the highest rate permitted by applicable law or five percent (5%) per annum in excess
of the interest rate otherwise applicable to the unpaid principal balance of the Note (herein the “Default Rate”).

 

(d)       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’s obligations under the Loan Agreement and this Mortgage, or future
advances now or hereafter made by Mortgagee under the Loan Documents (defined in the Loan Agreement).

 

NOW, THEREFORE, to secure
to the Mortgagee the payment of the Secured Indebtedness, as defined herein, UP TO A MAXIMUM AMOUNT AT ANY GIVEN TIME OF ONE HUNDRED
FIFTY PERCENT (150%) OF THE FACE AMOUNT OF THE NOTE, and the performance of the covenants, agreements and promises contained in the
Loan Documents, 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:

 

(a)       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 “Real Property”);

 

     

     

    

 

(b)       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;

 

(c)       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;

 

(d)       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’
contracts engineers’ contracts, other professional contracts, brokers’ 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;

 

(e)       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.

 

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(f)       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;

 

(g)       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;

 

(h)       All
betterments, accessions, additions, appurtenances, substitutions and revisions relating to any of the foregoing;

 

(i)       Mortgagor’s
rights in existing and future agreements between the Mortgagor and any third party that relate to any of the foregoing;

 

(j)       All
rights and entitlements to develop the Real Property granted by any governmental or quasi-governmental authority; and

 

(k)       Mortgagor’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.

 

All of the tangible and intangible personal property
described in this Mortgage is hereinafter sometimes collectively referred to as the “Collateral.” All of the above-described
Real Property, improvements, fixtures, Collateral and other property are hereinafter collectively referred to as the “Mortgaged
Property,” 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.

 

TO HAVE AND TO HOLD the Mortgaged
Property, with all appurtenances thereunto belonging, to the Mortgagee, its successors and assigns forever.

 

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’s option,
to cure any Event of Default of Mortgagor under this Mortgage, together with interest on all sums from the respective dates which Mortgagee
may expend or become obligated to expend at the Default Rate (defined in the Note); and (iv) any and all amounts which Mortgagee may reasonably
expend in accordance with this Mortgage or become obligated to expend in collecting the indebtedness secured hereby or the rents assigned
to Mortgagee, in foreclosing the lien of this Mortgage, in exercising any remedy provided herein, in preserving or protecting any of the
Mortgaged Property, or in pursuing or exercising any right or remedy hereunder or with respect hereto consequent upon any default of the
Mortgagor hereunder, including, but not limited to reasonable attorneys’ fees, court costs, abstracting expenses, receivers’
fees, appraisers’ fees, watchmen’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 “Loan Documents”) (all of the above-described
indebtedness and obligations are hereinafter collectively referred to as the “Secured Indebtedness”).

 

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This Mortgage is made subject
to the following covenants, conditions and agreements:

 

1.           
WARRANTY OF TITLE. 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’s
compensation, unemployment insurance and other similar benefits; (ii) liens for property taxes not yet due; (iii) statutory liens, against
which there are established reserves in accordance with generally accepted accounting principles, and which arise in the ordinary course
of business and secure obligations of Mortgagor which are not yet due and not in default; (iv) encumbrances in favor of Mortgagee; (v)
easements to utility providers and municipalities typically granted in connection with developments similar to the Project; (vi) matters
reflected in the policy of title insurance; and (vii) other matters approved by Mortgagee, including without limitation those matters
approved by Mortgagee in Section 7.1 of the Loan Agreement (collectively, “Permitted Liens”), 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.

 

2.           
PAYMENT OF SECURED INDEBTEDNESS.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.

 

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3.           
PRESERVATION AND MAINTENANCE OF MORTGAGED PROPERTY. 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.

 

4.   
INSURANCE. 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 maintain the insurance required by this paragraph, issued by insurance companies
reasonably satisfactory to Mortgagee. No later than the date this Mortgage is recorded in the real property records, public liability
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 “premium paid” or accompanied by other evidence of payment satisfactory
to the Mortgagee.

 

5.           
TAXES. 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.

 

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6.           
CONDEMNATION. 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; provided, however,
that the Mortgagee shall not be obligated to see to the application of any amount paid over to the Mortgagor.

 

7.           
CONTRACTS, FRANCHISES AND LICENSES. The Mortgagor shall comply in all material respects with and observe all of Mortgagor’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.

 

8.           
INSPECTIONS. 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 during business hours, without cost to the Mortgagee, upon at
least three business days prior written notice delivered from Mortgagee to Mortgagor; provided that, Mortgagee shall: (a) not interfere
with business being conducted at the Mortgaged Property; and (b) be liable to Mortgagor for any and all claims, damages, and losses, including
without limitation court costs and reasonable attorney’s fees (collectively “Losses”) caused by or resulting from, either
directly or indirectly, Mortgagee’s entry upon or inspection of the Mortgaged Property.

 

9.           
USE AND CONDITION OF MORTGAGED PROPERTY. 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.

 

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10.        
SECURITY AGREEMENT AND FINANCING STATEMENT. 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.

 

10.1.   
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.

 

10.2.   
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.

 

11.        
INTENTIONALLY DELETED.

 

12.        
SALE, TRANSFER; FORM OF BUSINESS ASSOCIATION. 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; provided, however, 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.

 

13.        
ENCUMBRANCES. 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.

 

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14.        
EVENTS OF DEFAULT. The Mortgagor shall be in default under this Mortgage during the occurrence of any of the following events
or conditions (collectively, “Events of Default” and individually, “Event of Default”):

 

14.1.   
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

 

14.2.   
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

 

14.3.   
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

 

14.4.   
Upon the institution of any foreclosure proceeding by the holder of any mortgage or lien upon all or substantially all of the Mortgaged
Property (provided, however, this event of default shall not constitute or be construed as Mortgagee’s consent to or approval
of the existence or imposition of any mortgage or lien upon the Mortgaged Property); or

 

14.5.   
Mortgagor or any Guarantor (defined in the Guaranty 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

 

14.6.   
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

 

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14.7.   
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

 

14.8.   
Any levy, seizure, execution, replevin or attachment is issued or commenced against all or substantially all of the Mortgaged Property;
or

 

14.9.   
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

 

14.10. Any mortgage, pledge,
security interest or other encumbrance occurs in violation of this Mortgage, and continues for thirty (30) days after the date of written
notice from Mortgagee; or

 

14.11. The dissolution of any
Guarantor of the Note.

 

15.        
REMEDIES. 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:

 

15.1.   
Foreclosure and Redemption Period. 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. If this Mortgage is foreclosed, the redemption period after judicial sale shall be one (1)
month in lieu of nine (9) months. 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.

 

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15.2.   
Foreclosure of Security Interest. 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’s right of redemption in partial or total satisfaction of the Mortgagor’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’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’ 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.

 

15.3.   
Attorneys’ Fees and Costs. The losing party agrees to pay and reimburse the prevailing party for all reasonable attorneys’
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’s security or liens and/or any action in bankruptcy or probate.

 

15.4.   
Remedies Cumulative, Concurrent and Nonexclusive. 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.

 

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15.5.   
No Waiver. 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.

 

15.6.   
High Volatility Commercial Real Estate. 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’s sole right and remedy, may increase the interest rate on the Loan by 0.85 percent
as of the eleventh (11th) day after such notice and demand is issued.  

 

16.        
SALE OF PARCELS. 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.

 

17.        
SUBROGATION. 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.

 

18.        
INDULGENCES, EXTENSIONS AND RELEASES. 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:

 

    	 	11	 

     

    

 

18.1.   
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

 

18.2.   
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

 

18.3.   
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

 

18.4.   
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;

 

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.

 

19.        
NO WAIVERS. 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.

 

20.        
DEMANDS FOR FORECLOSURE. 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.

 

21.        
OTHER SECURITY. 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’s
rights and remedies under this Mortgage or exercised hereunder or whether contained or exercised under any other such security documents.

 

    	 	12	 

     

    

 

22.        
CHANGE OF OWNERSHIP. 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, provided, however, except as provided in the Loan Agreement, nothing
contained in this paragraph shall constitute or be construed as Mortgagee’s consent to or approval of any change in ownership of
the Mortgaged Property or any part thereof

 

23.        
PAYMENT BY OTHERS. 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.

 

24.        
NOTICES. Every provision for notice pursuant to this Mortgage shall be given in accordance with the notice provisions of
the Loan Agreement.

 

25.        
RELATIONSHIP OF THE PARTIES. 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.

 

26.        
GOVERNING LAW. THIS MORTGAGE AND THE LOAN DOCUMENTS, AND ALL MATTERS RELATING HERETO OR THERETO OR ARISING THEREFROM
(WHETHER SOUNDING IN CONTRACT LAW, TORT LAW OR OTHERWISE), SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH,
THE LAWS OF THE STATE OF NEW MEXICO, WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES. MORTGAGOR HEREBY CONSENTS TO THE JURISDICTION OF
ANY STATE OR FEDERAL COURT LOCATED WITHIN THE COUNTY OF BERNALILLO, STATE OF NEW MEXICO AND IRREVOCABLY AGREES THAT ALL ACTIONS OR PROCEEDINGS
ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE OTHER LOAN DOCUMENTS SHALL BE LITIGATED IN SUCH COURTS. MORTGAGOR EXPRESSLY SUBMITS
AND CONSENTS TO THE JURISDICTION OF THE AFORESAID COURTS AND WAIVES ANY DEFENSE OF FORUM NON CONVENIENS. 

 

    	 	13	 

     

    

 

27.        
CUMULATIVE REMEDIES. 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.

 

28.        
CONSTRUCTION. 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.

 

29.        
SEVERABILITY. 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.

 

30.        
AMENDMENT. 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.

 

31.        
BINDING EFFECT. 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.

 

32.        
CONSTRUCTION MORTGAGE. This Mortgage secures indebtedness incurred by Mortgagor in connection with the construction of improvements
on the Mortgaged Property. Accordingly, this Mortgage constitutes a “construction mortgage” under applicable provisions of
the Uniform Commercial Code.

 

33.        
LIMITATION OF INDEMNITY. 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’ 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.

 

    	 	14	 

     

    

 

IN WITNESS WHEREOF, the Mortgagor
has caused this Mortgage to be executed and delivered on the day and year first above written.

 

 

	“MORTGAGOR”	Wymont LLC,
	 	a New Mexico limited liability company
	 	 	 
	 	 	 
	 	By	/s/ Carey A. Plant
	 	 	Carey A. Plant, Vice President

 

 

state
OF NEW MEXICO

 

COUNTY OF BERNALILLO

 

This instrument was acknowledged
before me on June 24, 2021, by Carey A. Plant, Vice President of Wymont LLC, a New Mexico limited liability company.

 

 

	 	/s/ Karen Lee Ward
	 	Notary Public

 

My Commission Expires: November 18, 2021

 

    	 	15	 

     

    

 

EXHIBIT "A"

Property Description

 

Lot numbered One-A-One (1-A-1) of La Mirada Subdivision,
as the same is shown and designated on the plat entitled “Plat for Lots 1-A-1 and 5-A-1. La Mirada Subdivision, Being Comprised
of Lots 1-A and 5-A, La Mirada Subdivision, City of Albuquerque, Bernalillo County, New Mexico,” filed in the office of the County
Clerk of Bernalillo County, New Mexico, on December 23, 2019, in Plat Book 2019C, Page 137.Exhibit 10.4

 

GUARANTY AGREEMENT

 

THIS GUARANTY AGREEMENT (the
 “Guaranty”) is made by AMREP Southwest Inc., a New Mexico corporation (the “Guarantor”), to and for the benefit
of BOKF, NA dba Bank of Albuquerque (the “Lender”), with reference to the following:

 

1.           
Recitals. The following Recitals apply to this Guaranty.

 

A.          
Lender and Wymont LLC, a New Mexico limited liability company (“Borrower”), are parties to a Development Loan Agreement
dated the same day as this Guaranty (the “Loan Agreement”), under the terms of which Lender agreed to lend to Borrower, and
Borrower agreed to borrow from Lender, up to the principal amount of $7,375,000.00 for the purposes set forth in the Loan Agreement (the
 “Loan”).

 

B.          
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 $7,375,000.00 (the “Note”).

 

C.          
The Note is secured by, among other things, a Mortgage, Security Agreement and Financing Statement dated the same day as this Guaranty
(the “Mortgage”), given by Borrower for the benefit of Lender.

 

D.          
Guarantor’s execution of this Guaranty is one of the conditions precedent to Lender’s obligations under the Loan Agreement.

 

2.           
Guaranty. 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’ 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 “Guaranteed Obligations”). Notwithstanding anything
else contained in this Guaranty, the “Guaranteed Obligations” do not include the HSIA (as defined in the Loan Agreement) or
any liabilities or obligations thereunder. Guarantor agrees that Guarantor’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.

 

     

     

    

 

3.           
Continuing Guaranty. 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’s subrogation rights or Guarantor’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’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’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’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.

 

4.           
Other Transactions. 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’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.

 

    	 	2	 

     

    

 

5.           
Release and Waiver of Rights Against the Borrower. 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.

 

6.           
Application of Payments. 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.

 

7.           
Guarantor’s Warranties. 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’ 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’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.

 

8.           
Termination of Guaranty. 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.

 

9.           
Recovery of Payment. 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.

 

    	 	3	 

     

    

 

10.        
New Promise. 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.

 

11.        
Discharge. 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’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.

 

12.        
Remedies. 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.

 

13.        
Judicial Actions. 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’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.

 

    	 	4	 

     

    

 

14.        
Bankruptcy of Borrower. Guarantor expressly agrees that Guarantor’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.

 

15.        
Waiver of Set-Off. 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.

 

16.        
Miscellaneous.

 

A.          
Guarantor agrees to reimburse Lender upon demand for all reasonable out-of-pocket expenses (including reasonable attorneys’
fees and legal expenses) incurred by Lender arising out of or in connection with any failure of Guarantor to fully and timely perform
Guarantor’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’ fees and costs.

 

B.          
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.

 

C.          
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.

 

    	 	5	 

     

    

 

D.          
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:

 

	Guarantor:	AMREP Southwest Inc.
	 	333 Rio Rancho Drive, Suite 202
	 	Rio Rancho, New Mexico 87124
	 	Attn: President
	 	 
	Lender:	BOKF, NA dba Bank of Albuquerque
	 	100 Sun Avenue NE, Suite 500
	 	Albuquerque, New Mexico 87109
	 	Attn: Jordan Herrington, Senior Vice President

  

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’ 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.

 

E.          
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. 

 

    	 	6	 

     

    

F.           
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’s
annual unaudited and without footnotes financial statement within one hundred twenty (120) days of fiscal year end; and (b) Guarantor’s
quarterly unaudited and without footnotes financial statements within sixty (60) days of each quarter end, beginning with the quarter
ending June 30, 2021. All financial information provided to Lender will be in form and content acceptable to Lender in its discretion.

 

G.          
The financial statements, information and materials of Guarantor heretofore delivered to Lender fairly and accurately present in
all material respects Guarantor’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.

 

H.          
Paragraph headings herein are for convenience only and will not be deemed part of this Guaranty.

 

I.            
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 “Guarantor”
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.

 

J.           
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.

 

[SIGNATURE ON NEXT PAGE]

 

    	 	7	 

     

    

 

Dated Effective: June 24, 2021.

 

	 	AMREP SOUTHWEST INC.,
	 	a New Mexico corporation
	 	 	 
	 	 	 
	 	By	/s/ Carey A. Plant
	 	 	Carey A. Plant, Vice President

 

 

 

    	 	8

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