Document:

Exhibit 10.2

 

NON-REVOLVING LINE OF CREDIT

PROMISSORY NOTE

 

	$2,475,000.00	June 17, 2019
	Note #__________	Albuquerque, New Mexico

 

FOR VALUE RECEIVED,
the undersigned Lomas Encantadas Development Company, 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 Four Hundred Seventy-Five Thousand and No/100
Dollars ($2,475,000.00), 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.          “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.

 

B.           “Interest
Rate” shall mean from and following the closing date, the loan and the other obligations shall bear interest at LIBOR
(defined below) plus three hundred (300) basis points, as calculated in accordance with paragraph 5 below. The Interest Rate is
not necessarily the lowest rate charged by Lender on its loans. If the Interest Rate becomes unavailable during the term of the
Loan, Lender may designate a comparable substitute index after notifying Maker. Notwithstanding any language herein seemingly to
the contrary: (a) Maker shall not be obligated to pay in excess of the maximum interest rate permitted by law for any interest
payment period; and (b) upon the occurrence of an Event of Default, at the option of the holder of this Note, interest will accrue
at the Default Rate of interest hereafter specified.

 

C.           “LIBOR”
means a floating rate (expressed to the fifth decimal place) equal to (i) the rate of interest which is identified and normally
published by ICE Benchmark Administration 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 next succeeding 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. Any change in LIBOR is effective
on the first day of each month. If ICE Benchmark Administration no longer reports the LIBOR or 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 if such
index no longer exists or accurately reflects the rate available to Lender in the London Interbank Market, Lender may select a
comparable replacement index. Lender will notify Maker in writing, within 10 days of the selection of a comparable replacement
index, such notification will include, the effective date of the replacement index, the new interest rate, and the new monthly
payment.

 

     

     

    

 

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

 

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

 

F.           “Maturity
Date” shall mean June 17, 2022, 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.

 

G.           “Mortgage”
shall mean the Mortgage, Security Agreement and Financing Statement dated the same day as this Note made by Maker in favor of Lender
securing, among other things, the indebtedness evidenced by this Note.

 

2.          Draw
Note. This Note evidences a loan that may be advanced in more than one advance during the term of this Note. This Note does
not evidence a revolving line of credit. Maker acknowledges and agrees that it does not have the right under this Note to borrow,
pay and re-borrow the loan proceeds. The loan evidenced by this Note shall be disbursed in accordance with the provisions of the
Loan Agreement.

 

3.          Payments.
Maker shall make monthly payments of interest only on the seventeenth (17th) day of each month beginning on July 17,
2019, and continuing on the seventeenth (17th) day of each month thereafter through and including May 17, 2022. On the
Maturity Date, Maker shall make one final payment of all accrued and unpaid principal and interest and any other unpaid sums. Upon
the occurrence of an Event of Default, at the option of the holder of this Note, interest shall accrue at the Default Rate. IN
NO EVENT SHALL THE SUM TOTAL OF ALL ADVANCES ON THE NOTE EXCEED THE FACE AMOUNT OF THE NOTE.

 

In addition, Maker
shall make the following required principal payments (the “Curtailment Payments”) to Lender: (i) Nine Hundred Thousand
and No/100 Dollars ($900,000.00), on or before March 17, 2021; (ii) Three Hundred Thousand and No/100 Dollars ($300,00.00) on or
before June 17, 2021; (iii) Three Hundred Thousand and No/100 Dollars ($300,000.00) on or before September 17, 2021; (iv) Two Hundred
Sixty Two Thousand Five Hundred and No/100 Dollars ($262,500.00) on or before December 17, 2021; (v) Five Hundred Twenty-Five Thousand
and No/100 Dollars ($525,000.00) on or before March 17, 2022; and (vi) One Hundred Eighty Seven Thousand Five Hundred and No/100
Dollars ($187,500.00) on or before the Maturity Date. Payments of the Release Price (defined in the Loan Agreement) to Lender shall
be credited towards the Curtailment Payments.

 

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4.          Loan
Origination Fee. On the date this Note is signed, Maker will pay to Lender a loan origination fee of Twelve Thousand Three
Hundred Seventy Five and No/100s Dollars ($12,375.00).

 

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. New Mexico time). In addition to any other means
of payment, Maker shall have the right to make payments by wire transfer or ACH directly to Lender. Within ten (10) days after
written request by Maker, Lender shall provide wiring and ACH instructions to Maker for all payments due pursuant to the Loan.

 

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”). Notwithstanding the foregoing, if Lender determines pursuant to paragraph
15.6 of the Mortgage, that the Loan evidenced by this Note is required to be classified as high volatility commercial real estate,
then the Interest Rate will be increased as provided in paragraph 15.6 of the Mortgage. During the existence of any such Event
of Default, the holder of this Note may apply payments received on any amounts due hereunder, or under the terms of any instrument
now or hereafter evidencing or amounts due hereunder, or under the terms of any instrument now or hereafter evidencing or securing
such indebtedness, as the holder may determine, and if the holder of this Note so elects, notice of election being expressly waived,
the principal hereof remaining unpaid, together with accrued interest, shall at once become due and payable. Any and all additional
interest that has accrued at the rate provided in this paragraph shall be due and payable at the time of, and as a condition precedent
to, the curing of any Event of Default.

 

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 the lesser of: (a) five percent (5%) of the amount of the
payment that was to have been made; or (ii) $400.00. Maker agrees that the charges set forth herein are reasonable compensation
to Lender for the acceptance and handling of such late payments.

 

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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.

 

9.          Pre-Payment.
This Note may be prepaid in whole or in part without penalty upon not less than two (2) business days’ advance written notice
to the holder of this Note.

 

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.

 

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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.

 

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.

 

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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]

 

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

 

	“MAKER”	LOMAS ENCANTADAS DEVELOPMENT COMPANY, LLC,
	 	a New Mexico limited liability company
	 	 	 
	 	By:	/s/ Carey A. Plant
	 	 	Carey A. Plant, Vice President

 

    	 	7Exhibit 10.3

 

MORTGAGE, SECURITY AGREEMENT

AND FINANCING STATEMENT

 

THIS MORTGAGE, SECURITY AGREEMENT AND FINANCING
STATEMENT IS A 

LINE OF CREDIT MORTGAGE AS PROVIDED IN NMSA 1978 §48-7-4.B.

 

THIS MORTGAGE, SECURITY
AGREEMENT AND FINANCING STATEMENT (“Mortgage”) is made effective as of the 17th day of June, 2019, by and between Lomas
Encantadas Development Company, LLC, a New Mexico limited liability company (“Mortgagor”), having its mailing address
at 333 Rio Rancho Drive, Suite 401, Rio Rancho, New Mexico 87124, for the benefit of BOKF, NA dba Bank of Albuquerque (“Mortgagee”),
having an office and mailing address at 100 Sun Avenue NE, Suite 500, Albuquerque, New Mexico 87109, with reference to the following:

 

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

 

(b)          Mortgagor,
as Borrower, is indebted to Mortgagee, as Lender, as evidenced by a promissory note in the principal sum of $2,475,000.00 (the
“Note”). In connection with the loan evidenced by the Note (the “Loan”), Mortgagor and Mortgagee intend
to enter into a Loan Agreement (the “Loan Agreement”).

 

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

 

(d)          By
means of this Mortgage, Mortgagor will secure to Mortgagee the payment of the Note, the payment of all other monies secured by
this Mortgage or advanced under this Mortgage, and the performance of Mortgagor’s obligations under the Loan Agreement and
this Mortgage, or future advances now or hereafter made by Mortgagee under the Loan Documents.

 

NOW, THEREFORE, to
secure to the Mortgagee the payment of the Secured Indebtedness, as defined herein, UP TO A MAXIMUM AMOUNT AT ANY GIVEN TIME
OF ONE HUNDRED FIFTY PERCENT (150%) OF THE FACE AMOUNT OF THE NOTE, and the performance of the covenants, agreements and promises
contained in the Loan Documents (defined in the Loan Agreement), and for other good and valuable consideration, the receipt and
legal sufficiency of which are hereby acknowledged, Mortgagor does hereby give, transfer, grant, bargain and mortgage, pledge,
set over, hypothecate and assign to Mortgagee, with mortgage covenants and upon the statutory mortgage condition for breach of
which this Mortgage may be foreclosed as provided by law, and grant a security interest unto the Mortgagee, in and to all of the
following whether now or hereafter acquired by Mortgagor:

 

    	 		 

     

    

 

(a)          The
Land, together with all and singular the easements, rights-of-way, tenements, hereditaments and appurtenances now or hereafter
belonging, relating or appertaining thereto, and all the estate, right title and interest of Mortgagor in and to the roads, streets,
ways and alleys public and/or private adjoining or adjacent to the same and any land laying in the bed of any street, road, avenue,
lane or right-of-way in front of, adjoining or adjacent to the same, including ingress and egress easements, but specifically excluding
any and all water, mineral rights, water rights and mineral rights (collectively the “Real Property”);

 

(b)          All
improvements, and appurtenances now and hereafter located, constructed, erected, installed, affixed, placed and/or maintained in
or upon the Real Property or any part thereof, together with all accessions, additions, replacements and substitutions or alterations
therefor;

 

(c)          To
the extent owned by Mortgagor, all fixtures, goods, and goods to become fixtures, now or hereafter attached to or installed on
the Real Property, or the improvements now or hereafter constructed thereon, or which are deemed to be fixtures to the Real Property,
or the improvements now or hereafter constructed thereon, under the laws of the State of New Mexico, all chattels and tangible
personal property which are attached to, installed, placed or used on, or which arise out of the development, improvement, operation
or use of the Real Property, the improvements, the fixtures or other items located on the Real Property, together with all additions,
accessions and accessories thereto and proceeds thereof, and substitutions, renewals and replacements therefor, and all other chattels
and tangible personal property and all renewals or replacements of or substitutions for any of the foregoing, and all proceeds
of all of the foregoing described collateral;

 

(d)          To
the extent owned by Mortgagor, all general intangibles used in connection with or relating to the improvements located on the Real
Property, all accounts, contract rights, documents of title, and chattel paper, relating thereto and all permits, approvals, licenses,
franchises, certificates and similar documents relating to the Real Property and/or the use and/or development thereof, all contracts,
leasing and/or renting labor, goods, equipment and/or services, service and/or maintenance agreements, management contracts, marketing
contracts, architects’ contracts engineers’ contracts, other professional contracts, brokers’ contracts, construction
contracts and other contracts and agreements relating to the Real Property and/or development thereof, all mortgage and/or financing
commitments relating to the Real Property, or any part thereof, all warranties, guaranties and bonds, all surveys, soil and substrata
studies, other studies of every type, architectural renderings, site plans, engineering plans and studies, floor plans, landscape
plans and other plans, drawings, blueprints, plans, specifications, data, reports, tests, studies, appraisals and like documents
relating to all or any part of the Real Property and/or the development thereof, and other rights and privileges obtained in connection
with the Real Property and the improvements thereon;

 

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(e)           All
purchase contracts relating to the Real Property, or any part thereof, and all rents, issues and profits which may hereafter become
due under or by virtue of any lease or rental contract, written or verbal, or any letting of, or any agreement for the use of the
improvements located on the Real Property.

 

(f)           To
the extent owned by Mortgagor, all judgments and awards (and all proceeds thereof and other rights with respect thereto) made or
to be made with respect to any of the Real Property and improvements thereon, under or in connection with any power of eminent
domain;

 

(g)          To
the extent owned by Mortgagor, all rights to collect and receive any insurance proceeds or other sums payable as or for damages
to any of the improvements and tangible personal property located on the Real Property, for any reason or by virtue of any occurrence;

 

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

 

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

 

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

 

(k)          Mortgagor’s
rights in all other things and additional rights of any nature, of value or convenience in the enjoyment, development, operation
or production, in any wise, of any property or interest included in any of the foregoing clauses, all prepaid accounts and utility
deposits, and all revenues, income, rents, issues, profits and other benefits arising therefrom or from any contract now in existence
or hereafter entered into pertaining thereto, and all rights, title and interest appurtenant thereto.

 

All of the tangible and intangible personal
property described in this Mortgage is hereinafter sometimes collectively referred to as the “Collateral.” All of the
above-described Real Property, improvements, fixtures, Collateral and other property are hereinafter collectively referred to as
the “Mortgaged Property,” and are hereby declared to be subject to the liens of this Mortgage notwithstanding the executing
and/or filing of any financing statements covering or describing any part or portion thereof.

 

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

 

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

 

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

 

1.            WARRANTY
OF TITLE. Mortgagor represents, covenants and warrants that Mortgagor owns fee simple title to the Mortgaged Property, that
Mortgagor has good right to sell, convey and mortgage the same, that the Mortgaged Property is free, clear and discharged of all
general and special taxes, liens, charges and encumbrances of every kind and character except for: (i) deposits to secure payment
of worker’s compensation, unemployment insurance and other similar benefits; (ii) liens for property taxes not yet due; (iii)
statutory liens, against which there are established reserves in accordance with generally accepted accounting principles, and
which arise in the ordinary course of business and secure obligations of Mortgagor which are not yet due and not in default; (iv)
encumbrances in favor of Mortgagee; (v) easements to utility providers and municipalities typically granted in connection with
developments similar to the Project; (v) matters reflected in the policy of title insurance; and (vi) other matters approved by
Mortgagee, including without limitation those matters approved by Mortgagee in Section 7.1 of the Loan Agreement (collectively,
“Permitted Liens”), and that Mortgagor hereby warrants and will forever defend the title to the Mortgaged Property,
other than the Permitted Liens, against the claims of all persons whomsoever.

 

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2.             PAYMENT OF
SECURED INDEBTEDNESS.Mortgagor covenants and agrees to pay all of the Secured Indebtedness and each separate item or installment
thereof as and when the same shall become due and payable, whether by extension, acceleration or otherwise. If the Mortgagor pays
and discharges all amounts of outstanding principal and accrued interest due and payable under the Secured Indebtedness then in
that event only, this Mortgage shall be and become null and void and discharged of record.

 

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

 

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

 

    	 	5	 

     

    

 

5.            TAXES.
Mortgagor hereby agrees to pay and discharge, or cause the payment of, all general and special taxes, assessments, impositions
and charges of every nature whatsoever that may be imposed, levied, or assessed upon or against the Mortgaged Property as they
become due and payable and to furnish to Mortgagee receipts showing payment of any such taxes and assessments if and as often as
demanded by Mortgagee, provided however, Mortgagor will not be required to pay and discharge any such tax, assessment, imposition
or charge so long as: (a) the legality of the same shall be contested in good faith by appropriate proceedings; and (b) Mortgagor
shall have established on Mortgagor's books adequate reserves with respect to such tax, assessment, imposition or charge contested
in accordance with income tax based accounting standards. Mortgagor hereby further agrees to pay any and all taxes which may be
levied or assessed directly or indirectly upon the Secured Indebtedness and this Mortgage, to the extent allowed by applicable
law. The additional amounts which may become due and payable hereunder shall be part of the Secured Indebtedness.

 

6.            CONDEMNATION.
The Mortgagor covenants and agrees that if at any time all or any portion of the Mortgaged Property shall be taken or damaged under
the power of eminent domain, the award received by condemnation proceedings for any property so taken or any payment received in
lieu of such condemnation proceedings, including, but not limited to, any awards for any change of grade of streets affecting or
abutting the Mortgaged Property shall be paid directly to the Mortgagee and applied to the principal balance of the Loan; provided
that, all of such award or payment, provided no Event of Default is in existence, shall be paid over, wholly or in part, to the
Mortgagor for the purpose of altering, restoring or rebuilding any part of the Mortgaged Property which may have been altered,
damaged or destroyed as a result of any such taking or damage, or for any other purpose or object satisfactory to Mortgagee; provided,
however, that the Mortgagee shall not be obligated to see to the application of any amount paid over to the Mortgagor.

 

7.            CONTRACTS,
FRANCHISES AND LICENSES. The Mortgagor shall comply in all material respects with and observe all of Mortgagor’s obligations
under all material contracts, franchises and licenses necessary or desirable for the continuation of the business conducted with
respect to the Mortgaged Property.

 

    	 	6	 

     

    

 

8.            INSPECTIONS.
The Mortgagee and its agents and representatives shall have the right from time to time to make or cause to be made reasonable
entries upon and inspections of the Mortgaged Property, without cost to the Mortgagee, upon at least three business days prior
written notice delivered from Mortgagee to Mortgagor; provided that, Mortgagee shall be liable to Mortgagor for any and all claims,
damages, and losses, including without limitation court costs and reasonable attorney’s fees (collectively “Losses”)
caused by or resulting from, either directly or indirectly, Mortgagee’s entry upon or inspection of the Mortgaged Property.

 

9.            USE
AND CONDITION OF MORTGAGED PROPERTY. The Mortgagor covenants and agrees to neither permit nor suffer the Mortgaged Property
to be used for any purpose prohibited by any present and future laws, ordinances, rules and regulations of all applicable governmental
authorities. The Mortgagor further covenants and agrees that it shall at all times keep, or cause to be kept, the Mortgaged Property
and all buildings, fixtures and other improvements thereon in compliance in all material respects with all present and future applicable
laws, ordinances, rules and regulations of all applicable governmental authorities.

 

10.          SECURITY
AGREEMENT AND FINANCING STATEMENT. This Mortgage shall also constitute, and shall be construed as, a security agreement and
as a financing statement with respect to the Collateral, notwithstanding the execution and filing of additional financing statements
covering the same Collateral.

 

10.1.         The
Mortgagor shall from time to time, within fifteen (15) days after request by Mortgagee, execute, acknowledge and deliver any Financing
Statement, Renewal Affidavit, Certificate, Continuation Statement, Inventory or other similar documents as the Mortgagee may reasonably
request in order to protect, preserve, continue, extend or maintain the security interest granted in this Mortgage and shall, upon
demand, pay any and all reasonable expenses incurred by the Mortgagee in the preparation, execution and filing of any such documents.

 

10.2.         A
carbon, photographic, photocopy or other reproduction of this Mortgage will constitute a financing statement and Mortgagor consents
to the filing thereof as a financing Statement.

 

11.          INTENTIONALLY
DELETED.

 

12.          SALE,
TRANSFER; FORM OF BUSINESS ASSOCIATION. Except as may be expressly permitted under the Loan Agreement, Mortgagor covenants
and agrees not to sell, transfer, convey, alienate, assign or voluntarily or involuntarily permit or suffer the Mortgaged Property,
or any part thereof, to be sold, transferred, assigned, alienated, or conveyed without the prior written consent of Mortgagee,
which consent may be given or withheld by the Mortgagee in its sole and absolute subjective discretion, and further the Mortgagor
covenants and agrees, except as expressly permitted in the Loan Agreement, not to change or alter the composition, form of business
association or ownership of the Mortgagor without in each instance obtaining prior written consent of the Mortgagee, which consent
may be given or withheld by the Mortgagee in its sole and absolute subjective discretion; provided, however, that such written
consent by Mortgagee to one sale or transfer of the Mortgaged Property or to one change in the composition, form of business association
or ownership of the Mortgagor shall not imply consent by Mortgagee to any other or subsequent sale, transfer, conveyance, alienation,
or assignment of the Mortgaged Property or to any other or subsequent change in the composition, form of business association or
ownership of the Mortgagor, and the provisions hereof shall apply to each and every sale, transfer, conveyance, alienation or assignment
or change in the composition, form of business association or ownership of the Mortgagor thereof regardless of whether or not the
Mortgagee has consented to or waived its rights hereunder whether by action or nonaction in connection with any previous sale,
transfer, conveyance, alienation or assignment or change in the composition, form of business association or ownership of the Mortgagor,
whether one or more.

 

    	 	7	 

     

    

 

13.          ENCUMBRANCES.
Except for a second lien for the benefit of an entity affiliated with Mortgagor, the Mortgagor covenants and agrees that it shall
not mortgage, pledge, grant a security interest in or otherwise encumber the Mortgaged Property or any part thereof, or voluntarily
or involuntarily permit or suffer the Mortgaged Property, or any part thereof, to be mortgaged, pledged or encumbered, without
the prior written consent of Mortgagee, which consent may be given or withheld by the Mortgagee in its sole discretion, except
for Permitted Liens.

 

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

 

14.1.         Default
in payment when due of any interest on or principal of the Note that continues for ten (10) days after the date of written notice
from Mortgagee requiring payment; or

 

14.2.         Default
in payment when due of the Secured Indebtedness (other than payment when due of any interest on or principal of the Note) or any
part or installment thereof as and when the same becomes due and payable, whether by acceleration, extension or otherwise, that
continues for thirty (30) days after the date of written notice from Mortgagee requiring payment; or

 

14.3.         Default
by Mortgagor in the performance or observance of any covenant contained in this Mortgage or any other Loan Document, including
without limitation, any representation, warranty, statement, certificate, schedule or report made or furnished to Mortgagee by
Mortgagor which proves to be false or erroneous in any material respect at the time of making hereof, that continues for thirty
(30) days after the date of notice from Mortgagee requiring payment; provided that, if such default requires longer than thirty
(30) days to cure and the Mortgagor commences such cure within thirty (30) days and is diligently pursuing said cure, Mortgagor
shall have a period not to exceed one hundred twenty (120) days to complete said cure; or

 

    	 	8	 

     

    

 

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

 

14.5.         Mortgagor
or any Guarantor (as defined in the Guaranty Agreement of even date herewith between Mortgagor and AMREP Southwest, Inc.) is adjudicated
insolvent or makes an assignment for the benefit of creditors, provided, however, as to any Guarantor, only until the Guaranty
terminates pursuant to its terms; or

 

14.6.         Mortgagor
or any Guarantor files any voluntary petition in bankruptcy or is adjudged bankrupt or insolvent, or an order for relief is entered
as to Mortgagor or Guarantor in any bankruptcy or reorganization proceeding or Mortgagor or any Guarantor voluntarily petitions
or applies to any court or tribunal for any receiver, trustee, conservator or liquidator for its property or affairs, or Mortgagor
or any Guarantor indicates by any act its consent to, approval of or acquiescence in any such bankruptcy, insolvency or reorganization
proceeding, application or petition, provided, however, as to any Guarantor, only until the Guaranty terminates pursuant to its
terms; or

 

14.7.         A
receiver, trustee, conservator or liquidator is appointed for Mortgagor or any Guarantor or for any part of the property or affairs
of Mortgagor or any Guarantor or any proceeding is commenced relating to Mortgagor or any Guarantor under by bankruptcy, insolvency,
reorganization, arrangement, readjustment of debt, dissolution or liquidation law or statute of any jurisdiction, whether now or
hereafter in effect, or a third person commences any such proceeding, files a petition or makes such application, provided, however,
as to any Guarantor, only until the Guaranty terminates pursuant to its terms; or

 

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

 

14.9.         Any
sale, transfer, conveyance, alienation or assignment occurs in violation of this Mortgage, and continues for thirty (30) days after
the date of written notice from Mortgagee; or

 

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

 

14.11.       The
dissolution of any Guarantor of the Note.

 

15.          REMEDIES.
During the occurrence of any of the Events of Default listed in paragraph 14 of this Mortgage and the failure by Mortgagor to cure
such Event of Default after such notice and opportunity to cure the Event of Default as may be required under the terms of this
Mortgage or the Note, this Mortgage or any of the other Loan Documents, the Mortgagee shall have the following remedies in addition
to all other remedies provided in this Mortgage or otherwise provided by law:

 

    	 	9	 

     

    

 

15.1.         Foreclosure
and Redemption Period. Mortgagee shall be entitled to declare the whole amount of the Secured Indebtedness immediately due
and payable without notice, and Mortgagee may then proceed by suit or suits in equity or at law to foreclosure this Mortgage pursuant
to the laws of the State of New Mexico. If this Mortgage is foreclosed, the redemption period after judicial sale shall be one
(1) month in lieu of nine (9) months. In the event of a judicial sale hereunder, Mortgagee may become the purchaser of the
Mortgaged Property, or any part thereof. In the event of foreclosure, Mortgagee shall be entitled to the appointment of a receiver
without regard to the solvency of Mortgagor or the value of the Mortgaged Property.

 

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

 

    	 	10	 

     

    

 

15.3.         Attorneys’
Fees and Costs. The losing party agrees to pay and reimburse the prevailing party for all reasonable attorneys’ fees,
costs and expenses paid or incurred by the prevailing party in any legal action, proceeding or other dispute of any kind in which
Mortgagee is made a party or appears as a party plaintiff or defendant, involving the Loan Agreement, the Note, this Mortgage,
the Assignment or the Mortgaged Property, including, but not limited to, the foreclosure or other enforcement of the Note or this
Mortgage, any condemnation action, any action to protect Mortgagee’s security or liens and/or any action in bankruptcy or
probate.

 

15.4.         Remedies
Cumulative, Concurrent and Nonexclusive. The Mortgagee shall have all rights, remedies and recourses granted in the Loan Documents
and available at law or equity (including specifically those granted by the Uniform Commercial Code in effect and applicable to
the Mortgaged Property or any portion thereof), and same (a) shall be cumulative and concurrent, (b) may be pursued separately,
successively or concurrently against the Mortgagor or others obligated under the Note, or against the Mortgaged Property, or against
any one or more of them, at the sole discretion of the Mortgagee, (c) may be exercised as often as occasion therefor shall arise,
it being agreed by the Mortgagor that the exercise or failure to exercise any of same shall in no event be construed as a waiver
or release thereof or of any other right, remedy or recourse, and (d) are intended to be, and shall be, nonexclusive.

 

15.5.         No
Waiver. In the event the Mortgagee shall elect to selectively and successfully enforce its rights under this Mortgage or any
other documents or instruments securing payment of the Secured Indebtedness, such action shall not be deemed a waiver or discharge
of any other lien, encumbrance or security interest securing payment of the Note until such time as the Mortgagee shall have been
paid in full all sums advanced under the Note. The foreclosure of any lien provided pursuant to this Mortgage without the simultaneous
foreclosure of all such liens shall not merge the liens granted which are not foreclosed with any interest which the Mortgagee
might obtain as a result of such selective and successive foreclosure.

 

15.6.         High
Volatility Commercial Real Estate. If at any time, in the determination of the Mortgagee, the net equity or capital retention
of the Mortgagor would require Mortgagee to classify the Mortgaged Property as High Volatility Commercial Real Estate as set forth
in Part 217 of Chapter II of title 12 of the Code of Federal Regulations, then within ten (10) days after written demand being
issued by the Mortgagee, Mortgagor shall take such actions as may be necessary, including obtaining adequate equity infusion, such
that the Mortgaged Property need not be classified as High Volatility Commercial Real Estate. If the Mortgagor fails to take such
action, it shall not be an Event of Default, and Mortgagee, as Mortgagee’s sole right and remedy, may increase the interest
rate on the Loan by 0.85 percent as of the eleventh (11th) day after such notice and demand is issued.  

 

16.          SALE
OF PARCELS. In case of any sale under this Mortgage, by virtue of judicial proceedings or otherwise, the Mortgaged Property
may be sold in one parcel and as an entirety or in such parcels, manner or order as the Mortgagee in its sole discretion may elect.

 

    	 	11	 

     

    

 

17.          SUBROGATION.
If the money loaned or advanced by Mortgagee and secured hereby shall be used to pay off or discharge any mortgage, lien or encumbrance
upon or against the Mortgaged Property, the Mortgagee, at its option, will be subrogated to all such mortgages, liens or encumbrances
so discharged, satisfied or paid, even though the same may be released of record, and to all the rights of the person or persons
to whom such payments have been made, and may immediately enforce the same against the Mortgagor and the Mortgaged Property.

 

18.          INDULGENCES,
EXTENSIONS AND RELEASES. It is understood and agreed that at any time and from time to time, either with or without any consideration,
and without notice to any person and without the consent or approval of any person or persons, and without in any manner affecting
the liability of the Mortgagor or any guarantors, sureties, endorsers, or any other persons liable for the payment of the Secured
Indebtedness together with interest and any other sums which may be due and payable to Mortgagee, and without in any manner affecting,
disturbing or impairing in any manner whatsoever the validity and priority of the lien of this Mortgage upon that portion of the
Mortgaged Property which is unreleased, and also without in any manner affecting or impairing to any extent whatsoever any and
all other collateral security which may be held by Mortgagee, the Mortgagee may at its sole subjective discretion:

 

18.1.         Grant
to the Mortgagor any indulgence, forbearance or any extension of time for the payment of any of the Secured Indebtedness, and may
agree to a modification in the terms of the Note and this Mortgage; and

 

18.2.         Allow
any change, addition or substitution of or for any of the property described in this Mortgage or other collateral which may be
held by Mortgagee; and

 

18.3.         Release
or otherwise deal with all or any portion of the Mortgaged Property or any other real or personal property or portion thereof which
may be held by Mortgagee as security for the payment of the Secured Indebtedness; and/or

 

18.4.         Release
the Mortgagor or any guarantors, sureties, endorsers or any other persons now or hereafter liable for the payment of all or any
part of the Secured Indebtedness or liable for the performance of any obligations;

 

None of the foregoing will impair or affect
the lien of this Mortgage or the priority of such lien over any subordinate lien covering the Mortgaged Property. Further, any
agreement or stipulation between any subsequent owner or owners of the Mortgaged Property and the Mortgagee which extends the time
of payment or which modifies the terms of the Note or this Mortgage, without Mortgagee first having obtained the consent of the
Mortgagor, shall not constitute a release of Mortgagor or any guarantors, sureties, endorsers or any other persons liable for payment
of the Secured Indebtedness, and the Mortgagor and all such other persons shall continue liable to make such payments according
to the terms of any such agreement or extension or modification unless expressly released and discharged in writing by the Mortgagee.

 

    	 	12	 

     

    

 

19.          NO
WAIVERS. Any failure by the Mortgagee to insist upon the strict performance by the Mortgagor of any of the terms and provisions
of this Mortgage shall not be deemed to be a waiver of any of the terms and provisions of this Mortgage, and the Mortgagee, notwithstanding
any such failure, shall have the right thereafter to insist upon the strict performance by the Mortgagor of any and all of the
terms and provisions of this Mortgage to be performed by the Mortgagor. Further, no delay by Mortgagee in exercising any of its
rights or remedies hereunder, or otherwise afforded by law, shall operate as a waiver thereof or preclude the exercise thereof
during the continuance of any default hereunder.

 

20.          DEMANDS
FOR FORECLOSURE. Neither the Mortgagor nor any other person now or hereafter obligated for the payment of the whole or any
part of the Secured Indebtedness secured by this Mortgage shall be relieved of such obligation by reason of the failure of the
Mortgagee to comply with any request of the Mortgagor or of any other person so obligated to take action to foreclose this Mortgage
or otherwise enforce any of the provisions of this Mortgage or of any obligations secured by this Mortgage.

 

21.          OTHER
SECURITY. If the payment of the Secured Indebtedness is now or hereafter further secured by assignments of leases, or rentals,
security agreements, financing statements, mortgages, collateral assignments, pledges, contracts of guaranty, or other additional
security documents, any default under the provisions of any such further security documents shall constitute and be a default under
this Mortgage, and the Mortgagee may, at its option, exhaust its remedies under any one or more of the said security documents
and the security thereunder, as well as the Mortgaged Property, either concurrently or independently and in such order and manner
as the Mortgagee may elect, and Mortgagee may apply the proceeds received therefrom upon the Secured Indebtedness without waiving
or affecting Mortgagee’s rights and remedies under this Mortgage or exercised hereunder or whether contained or exercised
under any other such security documents.

 

22.          CHANGE
OF OWNERSHIP. If ownership of the Mortgaged Property or any portion thereof becomes vested in a person or persons other than
the Mortgagor, the Mortgagee may deal with such successor or successors in interest with reference to this Mortgage and the Secured
Indebtedness in the same manner as with the Mortgagor, provided, however, except as provided in the Loan Agreement, nothing
contained in this paragraph shall constitute or be construed as Mortgagee’s consent to or approval of any change in ownership
of the Mortgaged Property or any part thereof

 

23.          PAYMENT
BY OTHERS. Any payment made by any person at any time liable for the payment of the whole or any part of the Secured Indebtedness
or by any person whose interest in the Mortgaged Property might be prejudiced in the event of a failure to make such payment, or
by any stockholder, officer or director of a corporation or any partner of a partnership or trustee or beneficial owner of a trust
which at any time might be liable for such payment or might own an interest in the Mortgaged Property, will be deemed, as between
the Mortgagee and all persons who at any time might be liable as aforesaid or might own an interest in the Mortgaged Property,
to have been made on behalf of the Mortgagor.

 

    	 	13	 

     

    

 

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

 

25.          RELATIONSHIP
OF THE PARTIES. This Mortgage is given as an incident to a lending transaction between Mortgagee and Mortgagor, and in no event
shall the Mortgagee be construed or held to be a partner, joint venturer or associate of the Mortgagor in the conduct of the business
of Mortgagor on or about the Mortgaged Property or otherwise, nor shall Mortgagee be liable for any debts or obligations incurred
by Mortgagor in the conduct of such business, it being understood and agreed that the relationship of the parties is and at all
times shall remain that of Mortgagee and Mortgagor.

 

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

 

27.          CUMULATIVE
REMEDIES. The rights of the Mortgagee arising under the representations, warranties, covenants and agreements contained in
this Mortgage shall be separate, distinct and cumulative and none of them shall be in exclusion of the others; and no act of the
Mortgagee shall be construed as an election to proceed under any one provision herein to the exclusion of any other provisions,
anything herein or otherwise to the contrary notwithstanding.

 

28.          CONSTRUCTION.
The paragraph headings and captions contained in this Mortgage are included for convenience only and shall not be construed or
considered a part of this Mortgage or affect in any manner the construction or interpretation of this Mortgage. Whenever used in
this Mortgage, the singular will include the plural, the plural the singular, and the use of any gender will be applicable to all
genders.

 

29.          SEVERABILITY.
If any covenant or agreement in this Mortgage is invalid or void for any reason, such invalid or void covenant or agreement shall
not affect the whole of this Mortgage, and the balance of the covenants and agreements of this Assignment shall remain in full
force and effect.

 

    	 	14	 

     

    

 

30.          AMENDMENT.
This Mortgage cannot be changed, modified or amended except by an agreement in writing, signed by the party against whom enforcement
of the change is sought and in recordable form.

 

31.          BINDING
EFFECT. All of the covenants, conditions and agreements contained in this Mortgage shall run with the land and shall bind the
Mortgagor, and the respective successors and assigns of the Mortgagor, and shall inure to the benefit of the Mortgagee and its
successors and assigns.

 

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

 

33.          LIMITATION
OF INDEMNITY. To the extent, if at all, 56-7-1 NMSA 1978, as amended, is applicable, any agreement to indemnify, hold harmless,
insure or defend another party contained herein or in any related documents will not extend to liability, claims, damages, losses
or expenses, including attorneys’ fees, arising out of bodily injury to persons or damage to property caused by or resulting
from, in whole or in part, the negligent act or omission of any indemnitee, its officers, employees or agents.

 

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

 

[SIGNATURE ON NEXT PAGE]

 

    	 	15	 

     

    

 

	“MORTGAGOR”	LOMAS ENCANTADAS DEVELOPMENT COMPANY, LLC,
	 	a New Mexico limited liability company

 

	 	By:	/s/ Carey A. Plant
	 	 	Carey A. Plant, Vice President

 

state
OF NEW MEXICO

 

COUNTY OF SANDOVAL

 

This instrument was
acknowledged before me on June 17, 2019, by Carey A. Plant, Vice President of Lomas Encantadas Development Company, a New Mexico
limited liability company.

 

	 	/s/ Debra J. Torrez
	 	Notary Public

 

	My Commission Expires:	 
	 	 
	March 28, 2022	 

 

    	 	16	 

     

    

 

EXHIBIT A

Legal Description

 

Tract "A-1-A" of the Final Plat
of LOMAS ENCANTADAS UNIT 2-C, PHASE 2, A Subdivision of a Portion of Tract A-1 in Lomas Encantadas Unit 2-D, Unit Twenty within
Section 26, T. 13 N., R. 3 E., N.M.P.M., City of Rio Rancho, Sandoval County, New Mexico, as the same is shown and designated on
the Plat thereof, filed in the office of the County Clerk of Sandoval County, New Mexico on December 6, 2018 in Vol. 3, folio 4325
(Rio Rancho Estates Plat Book No. 28, pages 42-44).

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