Document:

EXHIBIT 10.1 

 

LOAN AGREEMENT

 

This Loan Agreement
(“Agreement”) is made and entered into effective as of January 10, 2020 (the “Effective Date”), among BOKF,
NA dba Bank of Albuquerque (the “Lender”); and Las Fuentes Village II, LLC, a New Mexico limited liability company
(the “Borrower”), with reference to the following:

 

(a)       Borrower
has requested that Lender lend to Borrower up to Two Million Seven Hundred Fifty Thousand and No/100 Dollars ($2,750,000.00), to
finance construction of an approximately 13,847-square foot single-tenant retail building (the “Project”), on the real
property more particularly described on Exhibit “A” attached hereto and made a part hereof (the “Mortgaged
Property”).

 

(b)       Subject
to the terms, provisions, covenants and agreements hereinafter set forth, Lender has agreed to make the requested extension of
credit.

 

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:

 

1.               
LENDING AGREEMENT: Subject to the terms, provisions, covenants and agreements set forth in this Agreement, Lender
agrees to lend to Borrower, and Borrower agrees to borrow from Lender, up to the principal sum of $2,750,000.00, to be used by
Borrower for the purposes of (i) paying Project Costs (defined below); (ii) reimbursing Lender for reasonable expenses incurred
by Lender pursuant to this Agreement; and (iii) paying other reasonable costs which are incidental or related to the cost of completing
or financing the Project to the extent approved in the Project Budget (defined below).

 

2.               
BORROWER’S NOTE: The loan shall be evidenced by a Non-Revolving Line of Credit Promissory Note (the “Note”)
in the principal amount of Two Million Seven Hundred Fifty Thousand and No/100 Dollars ($2,750,000.00), which Note shall bear interest
at the rate specified in the Note.

 

3.              
COLLATERAL SECURITY: 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:

 

3.1.               
Security Documents Covering Mortgaged Property: Borrower has granted 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, which mortgage
lien and security interest are evidenced by a Mortgage, Security Agreement and Financing Statement dated October 11, 2019, and
filed in the official records of Sandoval County, New Mexico on October 11, 2019 as Document No. 2019023774, made by Borrower in
favor of Lender (the “Mortgage”).

 

    

     

    

 

3.2.               
Hazardous Substances Indemnification Agreement: Borrower and Guarantor shall sign and deliver to Lender a Hazardous
Substances Indemnification Agreement in the form required by Lender (the “HSIA”).

 

3.3.               
Guaranty: AMREP Southwest Inc. (the “Guarantor”) shall sign and deliver to Lender a Limited Guaranty
Agreement in the form required by Lender (the “Guaranty”).

 

3.4.               
Assignment of Leases and Rents: Borrower shall sign and deliver to Lender an Assignment of Leases and Rents in the
form required by Lender assigning all income from the Mortgaged Property to Lender (the “Assignment”).

 

3.5.               
Collateral Assignment of Plans and Specifications. Borrower and the architect named therein, shall sign and deliver
to Lender a Collateral Assignment of Plans and Specifications in the form required by Lender and the consent of architect attached
thereto (“Collateral Assignment of Plans”).

 

3.6.               
Collateral Assignment of Construction Contract. Borrower and Borrower’s general contractor shall sign and deliver
to Lender a Collateral Assignment of Construction Contract in the form required by Lender (“Collateral Assignment of Contract”).

 

3.7.               
Subordination, Non-Disturbance and Attornment Agreement. Borrower shall provide to Lender a fully signed and notarized
Subordination, Non-Disturbance and Attornment Agreement (the “SNDA”) among Lender, Borrower and Vitamin Cottage Natural
Food Markets, Inc., a Colorado corporation (the “Tenant”), which SNDA must be in form and content acceptable to Lender.

 

3.8.               
Additional Documents: Borrower shall also sign and deliver such Closing Certificates, Lien Affidavits, Closing Statements
and other documents that Lender may reasonably request (collectively, the “Additional Documents”). 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’s obligations hereunder and under the Note and all documents that secure payment of the Note.

 

4.               
CONDITIONS OF LENDING: 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:

 

4.1.               
No Events of Default: 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.

 

4.2.               
Loan Documents: This Agreement, the Note, the Mortgage, the Assignment, the Guaranty, the HSIA, the Collateral Assignment
of Plans, the Collateral Assignment of Contracts, the SNDA, and the Additional Documents (collectively, the “Loan Documents”)
shall be duly authorized, executed and delivered to Lender.

 

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4.3.               
Recording of Security Documents: 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.

 

4.4.               
Title Evidence: 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 “Title Company”), 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’
and materialmen’s liens. The premiums for the title policy shall be paid by Borrower.

 

4.5.               
Appraisal: 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.

 

4.6.               
Survey: Borrower shall deliver to Lender and the Title Company a survey of the Mortgaged Property in a form which
is acceptable to Lender and the Title Company and will enable the issuer of the required loan policy of title insurance to delete
all survey exceptions.

 

4.7.               
Insurance: Borrower shall obtain and maintain the insurance required to be maintained by the Mortgage.

 

4.8.               
Zoning and Use: 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.

 

4.9.               
Permits: Borrower shall obtain and deliver to Lender copies of all permits required to commence, and thereafter to
continue, work on the Project or any part thereof, including, without limitation, permits issued by the City of Rio Rancho, New
Mexico.

 

4.10.               
Plans and Specifications: Borrower has submitted and Lender has approved copies of the final plans and specifications
for the Project that have been approved by Borrower, Borrower’s contractor, Tenant and all applicable governmental authorities.
Except as provided in paragraph 8.9 of this Agreement, following approval by the Lender, such plans and specifications shall not
be changed in any material respect without the prior written consent of the Lender, which consent will not be unreasonably withheld.
Regardless of Lender’s review and approval of the plans and specifications, 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 review or approval,
and Borrower shall at all times have exclusive control over its work on the Project and sole responsibility for compliance with
all governmental, quasi-governmental and private laws, rules, regulations, ordinances, codes, covenants, restrictions, easements
and other matters which control, burden or apply to or otherwise affect the Mortgaged Property and/or the Project.

 

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4.11.               
Construction Contracts: If requested by Lender, Borrower shall (i) deliver to Lender copies of the executed construction
contract for the general contractor and, (ii) provide Lender with a listing of each subcontract in excess of $10,000.00 relating
to the Project. At Lender’s request, Borrower shall provide an assignment to the Lender of any such contracts or payment
or performance bonds covering the same.

 

4.12.               
Project Cost Breakdown and Budget: Borrower has submitted and Lender has approved a detailed cost breakdown and budget
of the work entailed in the Project (collectively, the “Project Budget”), showing the total costs involved (both direct
and indirect) (the “Project Costs”). Except as provided in paragraph 8.9 of this Agreement, following approval by Lender,
the Project Budget shall not be changed in any material respect without the prior written consent of Lender, which consent shall
not be unreasonably withheld.

 

4.13.               
Existence and Authority: 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 (“NMSOS”); (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.

 

4.14.               
Cash Equity. In addition to any other equity or loan to value requirements, as a condition to the initial advance
of Loan proceeds, Borrower will have provided evidence reasonably satisfactory to Lender that Borrower has invested cash equity
in the Project, as determined by Lender, of not less than fifteen percent (15%) of the “as completed” appraised value
of the Project prior to the date of this Agreement (the “Cash Equity”). This requirement has been satisfied.

 

4.15.               
Loan Origination Fee: At the time the Note is signed, Borrower shall remit to Lender a fully earned, non-refundable
loan origination fee of one-half of one percent (0.50%) of the face amount of the Note.

 

5.              
REPRESENTATIONS AND WARRANTIES: In addition to all other representations and warranties of Borrower to Lender, Borrower
represents and warrants that:

 

5.1.                Existence;
Compliance with Law: 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.

 

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5.2.               
Entity Power; Authorization; Enforceable Obligations: 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’ rights generally and by general equitable principles (whether enforcement is sought by proceedings
in equity or at law).

 

5.3.               
No Legal Bar: 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’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’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.

 

5.4.               
No Conflicting Agreements: 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.

 

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5.5.                
Ownership of Properties; Liens: 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’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.

 

5.6.                
Financial Condition: The financial statements, information and materials of Borrower heretofore delivered to Lender
fairly and accurately present in all material respects Borrower’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.

 

5.7.                
Licenses, Permits, Etc.: Borrower possesses or will possess prior to the commencement of construction and construction
of each subsequent phase of the Project, 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 Project, 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.

 

5.8.                
Contractual Default: 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.

 

5.9.                 
No Change: Since May 1, 2019, there has been no development or event that has had or could reasonably be expected
to have a material adverse effect on the Mortgaged Property or Borrower.

 

5.10.               
Litigation: There is no litigation, investigation or proceeding of or before any arbitrator, mediator or any governmental
authority or, to Borrower’s knowledge, threatened by or against Borrower or against any of any Borrower’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.

 

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5.11.               
Employee Retirement Income Security Act of 1994 (ERISA): Borrower has not incurred any “accumulated funding
deficiency” within the meaning of Section 302(a)(2) of ERISA as amended from time to time with respect to any employee pension
or other benefit plan or trust maintained by or related to Borrower, and Borrower has not incurred any material liability to the
Pension Benefit Guaranty Corporation (PBGC) as established pursuant to Section 4002 of ERISA in connection with any such plan.
No reportable event described in Sections 4042(a) or 4043(b) of ERISA with respect to any such plan has occurred. The representations
contained in this paragraph 5.11 are subject to the statements and disclosures contained in Note 11 of the AMREP Corporation SEC
Form 10-K dated April 30, 2018 and in the AMREP Corporation SEC Form 8-K dated April 26, 2019.

 

5.12.               
Insurance: 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’ 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’s request).

 

5.13.                Taxes:
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, “Tax Returns”) 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’s properties or
assets, and all other taxes, fees or other charges imposed on Borrower or any of Borrower’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’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 “reportable
transaction” (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’s date of organization, Borrower has not yet filed any Tax Returns.

 

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5.14.               
Margin Regulations: No part of the proceeds of the Loan shall be used for buying or “carrying” any “margin
stock” 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.

 

5.15.               
Investment Company Act: Borrower is not an “investment company”, or a company “controlled”
by an “investment company”, 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).

 

5.16.               
Patriot Act: 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’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.

 

5.17.               
OFAC: None of Borrower or any affiliate of any Borrower: (a) is a sanctioned person; (b) owns assets in
sanctioned entities; or (c) 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.

 

5.18.               
No Default: No Event of Default has occurred and is continuing.

 

5.19.               
Adverse Circumstances: To Borrower’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.

 

5.20.                Accuracy
of Information: 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.

 

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5.21.               
Environmental: To Borrower’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’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’s
knowledge, shall be, named as a party that is pending or, to any Borrower’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.

 

5.22.               
Compliance with Laws: To Borrower’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.

 

5.23.               
Solvency; Compliance with Financial Covenants: 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.

 

5.24.               
Availability of Utility Service: 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.

 

5.25.                No
Commencement of Work: Prior to recordation of the Mortgage, no work of any kind incident to the Project 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 Project 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.

 

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5.26.               
Continuation of Representations and Warranties; Borrower’s Knowledge: 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 “to Borrower’s knowledge” means to the actual knowledge of Borrower’s President as of the Effective
Date, without independent inquiry and without review of any files.

 

6.              
BORROWER’S AFFIRMATIVE COVENANTS: 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:

 

6.1.               
Performance of Obligations: 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 Borrower in connection with the Project.

 

6.2.               
Financial Information: 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 Project, 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) annual federal income tax returns, including all schedules and attachments, for the immediately previous
year within fifteen (15) days of filing; 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.

 

6.3.               
Notification of Liens: 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’s obtaining knowledge thereof, excluding only: (a) encumbrances
in favor of Lender; (b) deposits to secure payment of worker’s compensation, unemployment insurance and similar benefits;
(c) statutory liens arising in the ordinary course of Borrower’s business which secure current obligations of Borrower which
are not in default.

 

6.4.                Payment
of Taxes: All taxes, assessments and governmental charges or levies imposed on Borrower or on Borrower’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.

 

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6.5.               
Lender’s Access: Provided that it does not cause unreasonable interference with Tenant’s use or possession
of the Project and upon not less than two (2) business day’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’s officers or any authorized representatives of Lender to visit and inspect
the Project, to enter upon the Mortgaged Property, to inspect the Project progress thereof and all materials to be used in the
Project, and to examine the current plans and specifications.

 

6.6.               
Compliance with Laws: 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 Project.

 

6.7.               
Maintenance: 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.

 

6.8.               
Further Assurances: 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.

 

6.9.                Events
with Respect to ERISA: 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.

 

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6.10.               
Other Notifications: 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.

 

6.11.               
Compliance with Organizational Documents: Borrower shall timely perform all of its responsibilities and obligations
under Borrower’s Articles of Organization, Operating Agreement and any other documents now or hereafter evidencing Borrower.

 

6.12.               
Completion of Project: Borrower shall complete the work of the Project on or before January 10, 2021.

 

6.13.               
Regulatory Compliance: Borrower shall at all times cause the Project 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 Project would not, in the determination of Lender need to be classified as High Volatility Commercial
Real Estate.

 

6.14.               
Continuity of Construction: 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’s obligation
under this provision shall be subject to exception due to events of Force Majeure Delay. "Force Majeure Delay" 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 Project and does not include financial difficulties of Borrower.

 

7.               
BORROWER’S NEGATIVE COVENANTS: 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:

 

7.1.                Creation
or Existence of Liens: 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’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’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.

 

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7.2.               
Transfer of Mortgaged Property: Borrower shall not sell, transfer or convey all or any portion of the Mortgaged Property
except as permitted by this Agreement; and 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.

 

7.3.               
Use of Loan Proceeds: 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 Project and payable to unrelated third parties.

 

7.4.               
Modification of Organizational Documents: 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, Borrower’s Articles of Organization or Operating Agreement, without the prior consent of Lender, which consent
will not be unreasonably withheld.

 

7.5.               
Limitation on Distributions: 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 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’s net equity investment in the Project, as determined
by Lender, to be less than fifteen percent (15%).

 

8.               
ADMINISTRATION OF LOAN: 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:

 

8.1.               
Purpose: The principal sum to be disbursed under the Note shall be used only to pay Project Costs.

 

8.2.                Compliance
with Project Budget: 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 Project Budget. Deviations from the Project Budget must be
approved in advance in writing by Lender, which approval shall not be unreasonably withheld. The Project Budget will be
monitored monthly on a category-by-category basis. If Project Costs in an individual category exceed the amount budgeted
therefore (plus ten percent (10%) thereof as contained in the contingency line item) in the Project 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.

 

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8.3.               
Request for Funds: Borrower shall deliver to Lender a request for funds (a “Request for Funds”) 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’s contractor and reviewed by Huitt-Zollars,
Inc. (the “Engineer/Inspector”). 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.

 

8.4.               
Information: The Request for Funds shall be accompanied by:

 

8.4.1.               
a Project Budget spreadsheet detailing the requested disbursement and remaining balance to fund;

 

8.4.2.               
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). “Hard Costs” are all
of the costs for the visible improvements, including without limitation grading, excavation, concrete, sidewalks, roads, utilities,
and landscaping;

 

8.4.3.               
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). “Soft Costs” are all costs that are not Hard Costs;

 

8.4.4.               
copies of all current and pending change orders (AIA Form G701 or equivalent);

 

8.4.5.               
copies of executed conditional lien waivers from the general contractor for the current disbursement. In cases where the
general contractor is owned/controlled by Borrower, conditional lien waivers for the current disbursement are required for each
major subcontractor;

 

8.4.6.                copies
of executed unconditional lien waivers from the general contractor for previous disbursements. In cases where the general
contractor is owned/controlled by Borrower, unconditional lien waivers for previous disbursements are required for each major
subcontractor;

 

    14

     

    

 

8.4.7.               
if requested by Lender, a report by the Engineer/Inspector which shall specify the estimated percentage of completion of
the Project, together with detailed comments on the specific work performed since the date of the last report rendered to Lender;

 

8.4.8.               
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;

 

8.4.9.               
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

 

8.4.10.               
Such other information as Lender may reasonably request.

 

8.5.               
Lender’s Inspection: Lender shall engage the Engineer/Inspector, at Borrower’s sole cost and expense,
to review each Request for Funds and make an examination of the Project for the benefit of Lender prior to Lender making any advance.
Regardless of inspections by the Engineer/Inspector or Lender’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 Project 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 Project.

 

8.6.                Disbursements:
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.

 

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8.7.               
Project Budget Overrun: In the event the Lender determines, at any time, that the total cost of completing the Project
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 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 Project. 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 Project.

 

8.8.               
Termination of Advances: 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.

 

8.9.               
Tenant Requested Change Orders. So long as a tenant requested change order is provided for in the Lease (defined
in the SNDA) and Borrower provides evidence reasonably acceptable to Lender that the party responsible for paying the cost of the
change order has paid or is financially able to pay the cost of the change order, Lender’s consent to a tenant requested
change order will not be withheld. Lender will respond to a request for consent to a change order within three (3) business days
of receipt of the written request for consent.

 

9.                
[RESERVED]

 

10.               
DEFAULT: 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 “Events of Default” 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 shall be an “Event of Default” under this
Agreement and under each of the other Loan Documents.

 

11.               
REMEDIES: 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:

 

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11.1.               
Acceleration of the Note: 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’s rights and
remedies available under applicable laws.

 

11.2.               
Selective Enforcement: 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.

 

12.               
GENERAL PROVISIONS: Lender and Borrower further agree as follows:

 

12.1.               
Expenses: 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 Project; 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.

 

12.2.               
Notices: 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:

 

    17

     

    

 

		To Borrower:	Las Fuentes Village II, LLC
			333 Rio Rancho Drive, Suite 202
			Rio Rancho, New Mexico 87124
			Attention: Vice President

 

		To Lender:	BOKF, NA dba Bank of Albuquerque
			100 Sun Avenue NE, Suite 500
			Albuquerque, New Mexico 87109
			Attention: Jordan Herrington, Vice President

 

12.3.               
Amendment and Waiver: 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’s obligations under this Agreement. In the event of Lender’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.

 

12.4.               
Non-Waiver; Cumulative Remedies: 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.

 

12.5.               
Assignment: Neither this Agreement, nor the loan proceeds hereunder, shall be assignable by Borrower without the
prior written consent of Lender.

 

12.6.               
Applicable Law: 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. 

 

12.7.                Descriptive
Headings: 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.

 

    18

     

    

 

12.8.               
Terms: As used in this Agreement the singular shall be deemed to include the plural and the plural shall be deemed
to include the singular.

 

12.9.               
Integrated Agreement: 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.

 

12.10.               
Time of Essence: Time is of the essence of this Agreement.

 

12.11.               
Binding Effect: 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.

 

12.12.               
Third Party Beneficiary: 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.

 

12.13.               
Right to Defend: Lender shall have the right, but not the obligation, at Borrower’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.

 

12.14.               
Indemnification: Borrower agrees to indemnify, defend and hold Lender harmless from and against any loss, cost or
expense (including interest, penalties, reasonable attorneys’ fees and amounts paid in settlement) caused by Borrower’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’s negligence, breach, wrongful actions, gross negligence or willful misconduct.

 

    19

     

    

 

12.15.                Waiver
of Jury Trial. 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.

 

12.16.               
Joint and Several Obligations. 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.

 

13.       
REAPPRAISAL. If, as determined in Lender’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’s option, require
Borrower to make an additional payment of principal sufficient to bring Borrower into compliance with such covenants.

 

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.

 

[SIGNATURES ON NEXT PAGE]

 

    20

     

    

 

	“BORROWER”:	LAS FUENTES VILLAGE II, LLC,
		a New Mexico limited liability company
	 	 

 

	 	By	/s/
    Carey Plant
	 	 	Carey Plant, Vice President

 

	“LENDER”:	BOKF, NA dba BANK OF ALBUQUERQUE

 

	 	By:	/s/ Jordan Herrington
	 	 	Jordan Herrington, Vice President

 

    21

     

    

 

EXHIBIT “A”

Legal Description

 

Tract lettered D-2-A-1, Plat of LAS
FUENTES AT PANORAMA VILLAGE, as the same is shown and designated on the plat entitled, "SUMMARY PLAT OF TRACTS D-2-A-1
 & D-2-B-1, LAS FUENTES AT PANORAMA VILLAGE, BEING A REPLAT OF TRACT D-2-A, & D-2-B, BLOCK 6-A, LAS FUENTES AT PANORAMA
VILLAGE, SITUATE WITHIN THE TOWN OF ALAMEDA GRANT, CITY OF RIO RANCHO, SANDOVAL COUNTY, NEW MEXICO", filed in the office of
the County Clerk of Sandoval County, New Mexico on December 28, 2016, in Vol. 3, folio 4043 (Rio Rancho Estates Plat Book No. 27,
Page 17).EXHIBIT 10.2

 

NON-REVOLVING LINE OF CREDIT

PROMISSORY NOTE

 

	$2,750,000.00	January 10, 2020
	Note #                     	Albuquerque, New Mexico

 

FOR VALUE RECEIVED,
the undersigned Las Fuentes Village II, LLC, a New Mexico limited liability company (“Maker”), hereby promises to pay
to the order of BOKF, NA dba Bank of Albuquerque (“Lender”), 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 (“Note”), the principal sum of Two Million Seven Hundred Fifty Thousand and No/100 Dollars
($2,750,000.00), or so much thereof as shall be disbursed hereunder, together with interest thereon at the rates specified in this
Note, payable as set forth herein.

 

1.            
Definitions. As used in this Note, the following terms shall have the meanings indicated for each:

 

A.          
“Business Day” shall mean any day that is not a Saturday, Sunday, or federal holiday.

 

B.          
“Construction Interest Rate” shall mean from and following the date of this Note, the Loan and the other
obligations shall bear interest at LIBOR (defined below) plus two hundred ninety (290) basis points, adjusted on the date of any
change in LIBOR, as calculated in accordance with paragraph 5 below.

 

C.          
“Construction Loan Term” shall mean the period commencing on the date of this Note and ending on January
10, 2021.

 

D.          
“Event of Default” shall have the meaning ascribed to such term in the Mortgage, including without limitation
a default in payment or performance under this Note.

 

E.          
“First Alternate Interest Rate” shall mean a six (6)-year fixed rate of interest equal to the Seven-Year
Treasury Constant Maturity plus two hundred twenty-nine (229) basis points, as calculated as provided in paragraph 5 below.

 

F.           
“Fourth Alternate Interest Rate” shall mean a three (3)-year fixed rate of interest equal to the Three-Year
Treasury Constant Maturity plus two hundred thirty-three (233) basis points, as calculated as provided in paragraph 5 below.

 

G.           “Interest
Rate” shall mean the Construction Interest Rate, the First Alternate Interest Rate, the Second Alternate Interest
Rate, the Third Alternate Interest Rate, or the Fourth Alternate Interest Rate, as applicable. The Interest Rate is not
necessarily the lowest rate charged by Lender on its loans. 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. Whenever increases occur in the Interest Rate, Lender, at its option, may do one or more of the
following: (c) increase Maker’s payments of principal or interest or both, or (d) continue Maker’s payments at
the same amount and increase the final payment.

 

     

     

    

 

M.         
“LIBOR” 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 “Eurocurrency Liabilities” (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 “Replacement Rate”), 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’s covenant under Section 6.8 of the Loan Agreement (Maker consents
to any such necessary or appropriate amendments).

 

H.          
“Loan” shall mean the loan evidenced by this Note.

 

    2

     

    

 

I.            
“Loan Agreement” shall mean the certain Loan Agreement dated the same date as this Note, between Lender
and Maker and pursuant to which this Note is executed, as modified, supplemented and amended.

 

J.           
“Maturity Date” shall mean January 10, 2027, 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.

 

K.          
“Mini-Perm Term” if applicable, shall mean the period commencing on the day following the last day of
the Construction Loan Term and ending on the Maturity Date.

 

L.           
“Mortgage” shall mean the Mortgage, Security Agreement and Financing Statement dated October 11, 2019,
and recorded in the real property records of Sandoval County, New Mexico on October 11, 2019, as Document Number 2019023774, made
by Maker, as mortgagor, in favor of Lender, as mortgagee, securing, among other things, payment of this Note, as modified, supplemented
and amended.

 

M.         
“Mortgaged Property” has the meaning given to the term in the Mortgage.

 

N.          
“Second Alternate Interest Rate” shall mean a six (6)-year fixed rate of interest equal to the Seven-Year
Treasury Constant Maturity plus three hundred twenty-one (321) basis points, as calculated as provided in paragraph 5 below.

 

O.          
“Seven-Year Treasury Constant Maturity” means the weekly average yield on
United States Treasury securities, adjusted to a constant maturity of seven (7) years. If the Seven-Year Treasury Constant
Maturity becomes unavailable during the term of this Loan, Lender may designate a substitute index after notifying Maker.

 

P.          
“Third Alternate Interest Rate” shall mean a three (3)-year fixed rate of interest equal to the Three-Year
Treasury Constant Maturity plus three hundred (300) basis points, as calculated as provided in paragraph 5 below.

 

Q.          
“Three-Year Treasury Constant Maturity” means the weekly average yield on
United States Treasury securities, adjusted to a constant maturity of three (3) years. If the Three-Year Treasury Constant
Maturity becomes unavailable during the term of this Loan, Lender may designate a substitute index after notifying Maker.

 

2.            
Line of Credit. During the Construction Loan Term this Note may be advanced in more than one advance. 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.

 

    3

     

    

  

3.           
Payments. During the Construction Loan Term, Maker shall make payments of interest only at the Construction Interest
Rate due under this Note on a monthly basis, beginning on February 10, 2020, and continuing on the same day of each month thereafter
through and including the last month of the Construction Loan Term. Unless the Loan is converted from the Construction Loan Term
to the Mini-Perm Term, Maker shall make one final payment of all principal and accrued and unpaid interest and any other amounts
due under this Note on the last day of the Construction Loan Term.

 

So long as no Event
of Default exists or would exist but for the giving of notice or the passage of time, the Loan shall automatically convert to the
Mini-Perm Term upon the expiration of the Construction Loan Term. During the Mini-Perm Term, if applicable, Maker shall make payments
of principal and interest at the applicable Interest Rate due under this Note on a monthly basis calculated based on a twenty-five
(25) year amortization, beginning the tenth (10th) day of the month immediately following the last day of the Construction
Loan Term and continuing on the same day of each month thereafter through and including the month prior to the last month of the
Mini-Perm Term. Maker shall make one final payment of all outstanding principal and accrued and unpaid interest and any other unpaid
sums on the Maturity Date. 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.

 

During the Mini-Perm
Term, so long as no Event of Default exists or would exist but for the giving of notice or the passage of time, Maker may convert
the Loan from the Construction Interest Rate to either the First Alternate Interest Rate, the Second Alternate Interest Rate or
the Third Alternate Interest Rate. If Maker wants to convert the Loan from the Construction Interest Rate to either the First Alternate
Interest Rate, the Second Alternate Interest Rate or the Third Alternate Interest Rate, Maker will so notify Lender with ten (10)
days written notice (the “Conversion Notice”). The Conversion Notice will specify Maker’s selection of the applicable
Interest Rate. Lender shall recalculate the principal and interest payment due under this Note based on the remaining term of the
Loan and remaining amortization period, and Maker shall make payments of principal and interest on a monthly basis, beginning on
the tenth (10th) day of the immediately following the date Maker selects the applicable Interest Rate and continuing
on the same day of each month thereafter through and including the month prior to the Maturity Date.

 

In the event
Maker selects the Third Alternate Interest Rate, then at the end of the three-year fixed period, which is January 10, 2024,
the Interest Rate will convert to the Construction Interest Rate for the remaining term of the Note, or Maker may select
either the Third Alternate Interest Rate or the Fourth Alternate Interest Rate. Maker will so notify Lender with a Conversion
Notice. The Conversion Notice will specify Maker’s selection of the applicable Interest Rate. Lender shall recalculate
the principal and interest payment due under this Note based on the remaining term of the Loan and remaining amortization
period, and Maker shall make payments of principal and interest on a monthly basis, beginning on the tenth (10th)
day of the immediately following the date Maker selects the applicable Interest Rate and continuing on the same day of each
month thereafter through and including the month prior to the Maturity Date.

 

    4

     

    

 

4.           
Loan Origination Fee. At the time the Note is signed, Maker shall remit to Lender a fully earned, non-refundable
loan origination fee in the amount of one-half of one percent (.5%) of the face amount of the Note.

 

5.           
Computation of Interest and Related Fees. 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. mountain daylight time or
mountain standard time, whichever is applicable).

 

6.           
Default Interest. 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 “Default Rate”). 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.

 

7.           
Late Fees. 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 five percent (5%) of the amount of the payment
that was to have been made. Maker agrees that the charges set forth herein are reasonable compensation to Lender for the acceptance
and handling of such late payments.

 

8.            Currency.
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. Additionally, Maker shall have
the right to make payments by wire transfer of ACH directly to Lender. Within ten (10) days after written request by Maker,
Lender shall provide wiring and ACH instructions to Maker for all payment due pursuant to the Loan.

 

    5

     

    

 

9.           
Pre-Payment. So long as the Construction Interest Rate, or the Second Alternate Interest Rate or the Third Alternate
Interest Rate are applicable, this Note may be prepaid in whole or in part without penalty. If Maker selects either the First Alternate
Interest Rate or the Fourth Alternate Interest Rate, then in the event of prepayment Maker shall be obligated to pay to Lender,
in addition to the remaining balance of the Note plus accrued and unpaid interest and all other costs and fees to which the Lender
is otherwise entitled, a prepayment penalty equal to the yield maintenance fee. The yield maintenance fee is:

 

the greater of: (i) one percent (1%)
of the Unscheduled Principal Reduction; OR (ii) the sum of the present value (discounted at Remaining Term Swap Rate) of:

 

a) the remaining scheduled interest payments
to be paid on the Unscheduled Principal Reduction through the end of the Current Fixed Period, less

 

b) the interest payments which would
be collected on a new loan of the same amount as the Unscheduled Principal Reduction through the end of the Current Fixed Period
at the New Fixed Rate.

 

“Current Fixed Period” means,
as of the date of any Unscheduled Principal Reduction, the then current period during which Maker and Lender have agreed to calculate
the interest due on the Loan at a fixed rate.

 

“Current Fixed Rate” means
the fixed rate of interest upon which the Loan’s interest payments are calculated as of the Business Day immediately preceding
any Unscheduled Principal Reduction.

 

“Fixing Date” means the later
of the origination date of the Loan or the date upon which the Current Fixed Rate for the Current Fixed Period was established.

 

“New Fixed Rate” means the
rate equal to the sum of (i) the Remaining Term Swap Rate, plus (ii) the Original Spread.

 

“Original Spread” means the
resulting difference when (a) the Original Term Swap Rate is subtracted from (b) the Current Fixed Rate.

 

    6

     

    

 

“Original Term Swap Rate”
means the International Swaps and Derivatives Association (“ISDA”) mid-market par swap rate (or interpolated rate)
as of the Fixing Date with a term matching the original term of the Current Fixed Period.

 

“Remaining Term Swap Rate”
means ISDA mid-market par swap rate (or interpolated rate) for the term matching the time remaining to the end of the Current Fixed
Period of the Loan on the Business Day immediately preceding the Unscheduled Principal Reduction.

 

“Scheduled Principal Balance”
means, for any period, the outstanding principal balance anticipated to be due to Lender from any date of determination until the
Maturity Date, that may be determined using the description of the funding and payment obligations of the Maker contained herein.

 

“Unscheduled Principal Reduction”
means any reduction shall occur, for any reason at any time, in the Scheduled Principal Balance of the Loan, whether voluntary
or involuntary, whether effected by a prepayment or a credit bid or foreclosure, or whether by reason of acceleration upon an Event
of Default or any transfer or conveyance of any right, title or interest in the Property giving Lender the right to accelerate
the maturity of the Note, or otherwise.

 

10.           Interest
Savings Clause. 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 ipso facto, 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.

 

    7

     

    

 

11.          
Governing Law. Payment of this Note is secured, without limitation, by the Mortgage, which covers real and personal
property located in Rio Rancho, New Mexico. 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’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. 

 

12.           Remedies.
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.

 

    8

     

    

 

13.          
Waiver. 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.

 

14.          
Miscellaneous. All notices provided for herein shall be given in accordance with the provisions of the Loan Agreement.

 

A.          
[Intentionally Omitted].

 

B.          
This Note is given to evidence an obligation incurred for business purposes and not for personal, single family residential
or agricultural purposes.

 

C.          
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.

 

D.          
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.

 

[SIGNATURE ON NEXT PAGE]

 

    9

     

    

 

Signed and delivered
effective as of (but not necessarily on) the date set forth above.

 

	“MAKER”	LAS FUENTES VILLAGE II, LLC,
	 	a New Mexico limited liability company
	 	 
	 	By  	/s/ Carey Plant  
	 	 	Carey Plant, Vice President

 

    10

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