Document:

Exhibit 10.3

 

MORTGAGE, SECURITY AGREEMENT

AND FINANCING STATEMENT

 

THIS MORTGAGE, SECURITY
AGREEMENT AND FINANCING STATEMENT (“Mortgage”) is made effective as of the 21st day of January, 2021, by
and between Mountain Hawk West Development Company LLC, a New Mexico limited liability company (“Mortgagor”), having
its mailing address at 333 Rio Rancho Drive, Suite 202, Rio Rancho, New Mexico 87124, for the benefit of BOKF, NA dba Bank of Albuquerque
(“Mortgagee”), having an office and mailing address at 100 Sun Avenue NE, Suite 500, Albuquerque, New Mexico 87109,
with reference to the following:

 

(a)       Mortgagor
is the owner of the fee simple interest in the certain real estate (the “Land”) situated in 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 $2,700,000.00, made
by Mortgagor in favor of Mortgagee (the “Note”). In connection with the loan evidenced by the Note (the “Loan”),
Mortgagor and Mortgagee intend to enter into a Loan Agreement governing the Loan (the “Loan Agreement”).

 

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

 

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

 

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

 

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

 

    

     

    

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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3.         PRESERVATION AND MAINTENANCE OF MORTGAGED PROPERTY. With respect to the Mortgaged Property, Mortgagor covenants and
agrees to keep, or cause to be kept, the same in good condition and repair, ordinary wear and tear excepted; subject to the provisions
of the Loan Agreement, to pay, or cause to be paid, all taxes and assessments and other charges that may be levied or assessed
upon the Mortgaged Property when they become due and payable; to pay, or cause to be paid, all debts for repair or improvements,
now existing or hereafter arising, that may become liens upon or charges against the same; subject to the provisions of the Loan
Agreement, to comply with or cause to be complied with all requirements of any governmental authority relating to the Mortgaged
Property; and, subject to paragraph 4 of this Mortgage, to repair, restore, replace or rebuild promptly any part of the Mortgaged
Property which may be damaged by any casualty whatsoever or which may be affected by any condemnation proceeding or the exercise
of eminent domain. Mortgagor further covenants and agrees that the Mortgagor will not do or permit to be done anything which will
impair or weaken the security of this Mortgage; nor initiate, join in, or consent to any change in any private restrictive covenant,
zoning ordinance, or other public or private restrictions limiting or defining the uses which may be made of the Mortgaged Property
or any part thereof except as allowed under Sections 7.1 and 13 of the Loan Agreement and as may be necessary to obtain the Final
Plat (defined in the Loan Agreement) in each case other than the Permitted Liens. 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 maintain the insurance required by this paragraph, issued by
insurance companies reasonably satisfactory to Mortgagee. No later than the date this Mortgage is recorded in the real property
records, public liability insurance covering the Mortgaged Property in an amount approved from time to time by Mortgagee, which
on the date hereof is combined single limits coverage of not less than $2,000,000.00. All deductibles, coinsurance provisions,
exceptions to coverage and policy forms must be acceptable to Mortgagee in its reasonable discretion. The Mortgagor further covenants
and agrees that, regardless of the types or amounts of insurance required and approved by the Mortgagee, Mortgagor will cause the
Mortgagee to be named as an additional insured in all policies of liability insurance, and the Mortgagor will assign and deliver
to the Mortgagee all policies of insurance which insure against any loss or damage to the Mortgaged Property, as collateral and
further security for the Secured Indebtedness, which policies shall contain a mortgage clause in favor of Mortgagee and in form,
scope and substance acceptable to Mortgagee. Mortgagor further covenants and agrees that not less than thirty (30) days prior to
the expiration dates of each policy required pursuant to this paragraph, Mortgagor will deliver to the Mortgagee a renewal policy
or policies marked “premium paid” or accompanied by other evidence of payment satisfactory to the Mortgagee.

 

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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.

 

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

 

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

 

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

 

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

 

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

 

11.       INTENTIONALLY DELETED.

 

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

 

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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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

14.11.     The
dissolution of any Guarantor of the Note.

 

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

 

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

 

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.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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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.

 

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.

 

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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.

 

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.

 

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

 

	“MORTGAGOR”	MOUNTAIN HAWK WEST 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 January 21, 2021, by Carey A. Plant, Vice President of Mountain Hawk West Development Company LLC, a
New Mexico limited liability company.

 

	 	/s/ Karen Lee Ward
	 	Notary Public

 

My Commission Expires: November 18, 2021

 

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EXHIBIT "A"

Legal Description

 

Tracts numbered Twenty-three (23) and Forty
(40) of RIO RANCHO HAWKSITE, as the same are shown and designated on the Plat entitled, "PLAT OF RIO RANCHO HAWKSITE, A SUBDIVISION
OF A PORTION OF UNPLATTED PROPERTY WITHIN UNIT 25, RIO RANCHO ESTATES, BEING A PORTION OF SECTION 8, 9 AND 17, TOWNSHIP 13 NORTH,
RANGE 3 EAST, NEW MEXICO PRINCIPAL MERIDIAN, CITY OF RIO RANCHO, SANDOVAL COUNTY, NEW MEXICO”, filed in the office of the
County Clerk of Sandoval County, New Mexico on February 24, 2004 in Vol. 3, Folio 2392-B (Rio Rancho Estates Plat Book No. 17,
Page 16),

 

AND

 

That certain parcel of land, situated within
Section 9, Township 13 North, Range 3 East, New Mexico Principal Meridian, Sandoval County, New Mexico, being a portion of Tract
38, and a portion of Talisman Road NE right-of-way, as shown on Plat of Rio Rancho Hawksite, filed for record on February 24, 2004,
in Volume 3, Folio 2392B (Book 407, Page 5069, RRE Plat Book 17, Pages 16 through 19), Plat Records of Sandoval County, New Mexico,
said parcel being more particularly described by Metes and Bounds as follows:

 

Commencing at a rebar with brass cap stamped
 “CSC PS12651” found for the northeast corner of Tract 38, being also the west line of Old NM State Road 44 (200 foot
right-of-way); Thence S 12°17’09” E, with the west line of said Old NM State Road 44, a distance of 57.77 feet
to a rebar with brass cap stamped “CSC PS12651” found at the beginning of a tangent curve to the left; Thence along
said curve to the left, having an arc length of 743.70 feet, a radius of 2053.00 feet, a delta angle of 20°45’20”,
with a chord bearing of S 22°39’49” E, for a chord distance of 739.64 feet to the Point of Beginning, and being
the northeast corner of the herein described parcel;

 

Thence S 33°51’08” E, continuing
with said west line, a distance of 58.11 feet to the southeast corner of the herein described parcel;

 

Thence S 55°57’33” W, leaving
said west line, with the south line of the herein described parcel, a distance of 13.25 feet to the beginning of a tangent curve
to the right;

 

Thence along said curve to the right, having
an arc length of 209.97 feet, a radius of 343.00 feet, a delta angle of 35°04’28”, with a chord bearing of S 73°29’47”
W, for a chord distance of 206.71 feet to the end of said curve;

 

Thence N 88°57’59” W, a
distance of 1068.28 feet to the southwest corner of the herein described parcel;

 

Thence N 00°59’35” E, leaving
said south line, with the west line of the herein described parcel, a distance of 68.00 feet to the beginning of a non-tangent
curve to the left;

 

Thence along said curve to the left, having
an arc length of 39.27 feet, a radius of 25.00 feet, a delta angle of 89°59’47”, with a chord bearing of N 46°02’08”
E, for a chord distance of 35.35 feet to the end of said curve;

 

Thence N 01°02’14” E, a
distance of 47.25 feet to the beginning of a tangent curve to the right;

 

    

     

    

 

Thence along said curve to the right, leaving
said west line, said curve having an arc length of 132.50 feet, a radius of 75.00 feet, a delta angle of 101°13’13”,
with a chord bearing of N 51°38’51” E, for a chord distance of 115.93 feet to the end of said curve; Thence S 77°44’33”
E, with the north line of the herein described parcel, a distance of 201.96 feet to the beginning of a tangent curve to the left;

 

Thence along said curve to the left, having
an arc length of 53.87 feet, a radius of 275.00 feet, a delta angle of 11°13’26”, with a chord bearing of S 83°21’16”
E, for a chord distance of 53.78 feet to the end of said curve;

 

Thence S 88°57’59” E, a
distance of 558.39 feet to the beginning of a tangent curve to the left;

 

Thence along said curve to the left, having
an arc length of 25.27 feet, a radius of 75.00 feet, a delta angle of 19°18’11”, with a chord bearing of N 81°22’55”
E, for a chord distance of 25.15 feet to the end of said curve;

 

Thence N 71°43’50” E, a
distance of 20.61 feet to the beginning of a tangent curve to the right;

 

Thence along said curve to the right, having
an arc length of 102.88 feet, a radius of 75.00 feet, a delta angle of 78°35’27”, for a chord bearing of S 68°58’27”
E, for a chord distance of 95.00 feet to the end of said curve;

 

Thence S 31°21’36” E, a
distance of 128.69 feet to an angle point in the north line of the herein described parcel;

 

Thence N 56°57’31” E, a
distance of 140.00 feet to the Point of Beginning of the Parcel herein described.Exhibit 10.4

 

GUARANTY AGREEMENT

 

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

 

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

 

A.         Lender and Mountain Hawk West Development Company LLC, a New Mexico limited liability company, are parties to a Development
Loan Agreement dated the same day as this Guaranty (the “Loan Agreement”), under the terms of which Lender agreed to
lend to Borrower, and Borrower agreed to borrow from Lender, up to the principal amount of $2,700,000.00 for the purposes set forth
in the Loan Agreement (the “Loan”).

 

B.         Pursuant to the Loan Agreement, Borrower has signed and delivered to Lender a Non-Revolving Line of Credit Promissory Note
dated the same day as this Guaranty in the original principal amount of $2,700,000.00 (the “Note”).

 

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

 

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

 

2.          Guaranty. Guarantor hereby absolutely, irrevocably and unconditionally guarantees to Lender the performance and payment
when due (whether at a stated maturity or earlier by reason of acceleration or otherwise or at any other time required by any of
the Loan Documents) of all liabilities and obligations now or hereafter owing by Borrower to Lender under the Note and the other
Loan Documents (defined in the Loan Agreement), including, without limitation, principal, interest, late charges, after-default
interest, reasonable attorneys’ fees and collection costs, and all other liabilities and obligations of Borrower to Lender
under the Note and the other Loan Documents (all of the foregoing being hereinafter referred to as the “Guaranteed Obligations”).
Notwithstanding anything else contained in this Guaranty, the “Guaranteed Obligations” do not include the HSIA (as
defined in the Loan Agreement) or any liabilities or obligations thereunder. Guarantor agrees that Guarantor’s liability
under this Guaranty will be primary and direct, and that Lender will not be required to pursue any right or remedy it may have
against Borrower under the Note or otherwise (and will not be required to first commence any action or obtain any judgment against
Borrower or against property of Borrower in which Lender holds a security interest) before enforcing this Guaranty against Guarantor.

 

    

     

    

 

3.          Continuing Guaranty. This Guaranty is an absolute, unconditional and continuing guaranty of performance and payment
of the Guaranteed Obligations. No notice of the Guaranteed Obligations to which this Guaranty may apply, or of any renewal, modification,
consolidation, replacement, extension or amendment thereof, need be given to Guarantor and none of the foregoing acts will release
Guarantor from liability hereunder. Guarantor hereby expressly waives: (a) demand for payment or performance, presentment, protest,
notice of dishonor, nonpayment or nonperformance on any and all forms of the Guaranteed Obligations; (b) notice of acceptance of
this Guaranty and notice of any liability to which it may apply; (c) all other notices and demands of any kind and description
relating to the Guaranteed Obligations now or hereafter provided for by any statute, law, rule or regulation; (d) any and all rights
or defenses arising by reason of election of remedies by Lender that destroys or otherwise adversely affects Guarantor’s
subrogation rights or Guarantor’s rights to proceed against Borrower for reimbursement, including, without limitation, loss
of rights Guarantor may suffer by reason of any law limiting, qualifying or discharging the Guaranteed Obligations; (e) any disability
or other defense of Borrower of any other guarantor, or of any other person, or by reason of the cessation of Borrower’s
liability from any cause whatsoever, other than payment in full in legal tender of the Guaranteed Obligations; (f) any right to
claim discharge of the Guaranteed Obligations on the basis of impairment of any collateral for the Guaranteed Obligations; (g)
any defenses given to Guarantor by any failure, neglect or omission by Lender to perfect in any manner the collection of the Guaranteed
Obligations or the security given therefor, including the failure or omission to seek a deficiency judgment against Borrower; and
(h) any and all other defenses of Borrower pertaining to the Guaranteed Obligations, including any Borrower counterclaim or claim
of recoupment or setoff except the defense of discharge by payment. Guarantor will not be exonerated with respect to Guarantor’s
liability under this Guaranty by any act or thing except payment or performance of the Guaranteed Obligations. Guarantor warrants
and agrees that each of the waivers set forth above is made with Guarantor’s full knowledge of its significance and consequences
and that, under the circumstances, the waivers are reasonable and not contrary to public policy or law. If such waiver is determined
to be contrary to any applicable law or public policy, such waiver will be effective only to the extent permitted by law or public
policy. Without limiting the generality of the foregoing, Guarantor waives any setoff or offset rights that Guarantor might otherwise
have under applicable law, as amended from time to time (or under any corresponding present or future rule of law in any jurisdiction)
by reason of any release of fewer than all persons who have guaranteed performance of the Guaranteed Obligations.

 

4.          Other Transactions. Lender is expressly authorized: (a) to exchange, surrender or release with or without consideration
any or all collateral and security that may at any time be placed with it by Borrower or by any other person, or to forward or
deliver any or all such collateral and security directly to Borrower for collection and remittance or for credit, or to collect
the same in any other manner without notice to Guarantor; (b) to amend, modify, extend or supplement the Note, or other agreement
with respect to the Guaranteed Obligations, to waive compliance by Borrower with the respective terms thereof and to settle or
compromise any of the Guaranteed Obligations without notice to Guarantor and without in any manner affecting the absolute liability
of Guarantor hereunder; and (c) to assign from time to time all or any part of Lender’s interest in the Note, this Guaranty
and all other Loan Documents. The liability of Guarantor hereunder will not be affected or impaired by any failure, neglect or
omission on the part of Lender to realize upon any of the Guaranteed Obligations of Borrower to Lender, or upon any collateral
or security for any or all of the Guaranteed Obligations, nor by the taking by Lender of (or the failure to take) any other guaranty
or guaranties to secure the Guaranteed Obligations, nor by the taking by Lender of (or the failure to take or the failure to perfect
its security in) collateral or security of any kind. Guarantor acknowledges that this Guaranty is in effect and binding as to the
Guarantor without reference to whether this Guaranty is signed by any other person or persons, and agrees that as to Guarantor,
this Guaranty will continue in full force and effect, both as to the Guaranteed Obligations then existing and/or thereafter created,
notwithstanding the release of or extension of time to any other guarantor of the Guaranteed Obligations or any part thereof.

 

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5.          Release and Waiver of Rights Against the Borrower. UNTIL THE GUARANTEED OBLIGATIONS ARE PAID IN FULL, GUARANTOR HEREBY
WAIVES AND RELINQUISHES ANY RIGHT OF REIMBURSEMENT, SUBROGATION, INDEMNIFICATION OR OTHER RECOURSE OR CLAIM, WHETHER CONTINGENT
OR MATURED, WHICH GUARANTOR MAY HAVE AGAINST BORROWER. IT IS THE EXPRESS INTENT OF GUARANTOR AND LENDER TO ELIMINATE ANY DEBTOR/CREDITOR
RELATIONSHIP BETWEEN BORROWER AND GUARANTOR. GUARANTOR HEREBY EXPRESSLY RELEASES AND WAIVES ANY AND ALL PRESENT AND FUTURE RIGHTS
AS CREDITOR OF BORROWER IN ALL RESPECTS, BUT NOT ANY RIGHTS GUARANTOR HAS AS A MEMBER OR MANAGER OF BORROWER.

 

6.          Application of Payments. Any and all payments upon the Guaranteed Obligations made by Guarantor or by any other person,
and/or the proceeds of any or all collateral or security for any of the Guaranteed Obligations may be applied by Lender on such
items of the Guaranteed Obligations as Lender may elect.

 

7.          Guarantor’s Warranties. Guarantor warrants and represents to Lender that this Guaranty has been duly executed
and delivered by Guarantor and constitutes a legal, valid and binding obligation of Guarantor, enforceable in accordance with its
terms, except as enforcement may be limited by applicable bankruptcy, insolvency, moratorium and other laws affecting creditors’
rights generally. Guarantor warrants to the Lender that Guarantor has a direct and substantial economic interest in the Borrower,
and that Guarantor expects to derive benefits from transactions resulting in the creation of the Guaranteed Obligations. Lender
may rely conclusively on a continuing warranty hereby made, that Guarantor continues to be benefited by Lender’s extension
of credit to Borrower and Lender will have no duty to inquire into or confirm the receipt of any such benefits, and this Guaranty
will be effective and enforceable by Lender without regard to the receipt, nature or value of any such benefits.

 

8.          Termination of Guaranty. Subject to paragraph 11 of this Guaranty, this Guaranty will terminate on the date on which
all of the Guaranteed Obligations have been performed in full, all in accordance with the provisions of the Note and any other
documents evidencing or securing payment of the Loan.

 

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9.          Recovery of Payment. If any payment received by Lender from Borrower or any other obligor and applied to the Guaranteed
Obligations is subsequently set aside, recovered, rescinded or required to be returned for any reason (including, without limitation,
the bankruptcy, insolvency or reorganization of Borrower or any other obligor), the Guaranteed Obligations to which such payment
was applied will for the purposes of this Guaranty be deemed to have continued in existence, notwithstanding such application,
and this Guaranty will be enforceable against Guarantor as to such Guaranteed Obligations as fully as if such application had never
been made.

 

10.        New Promise. Any acknowledgement or new promise, whether supported by payment of principal or interest or otherwise
and whether made by Borrower or others (including Guarantor) with respect to any of the Guaranteed Obligations will, if the statute
of limitations in favor of Guarantor against Lender will have commenced to run, toll the running of such statute of limitations
and, if the period of such statute of limitations will have expired, prevent the operation of such statute of limitations with
respect to such promise.

 

11.        Discharge. Until termination of this Guaranty as provided in paragraph 8 of this Guaranty, the obligations of Guarantor
under this Guaranty will not be released, in whole or in part, by reason of any waiver, extension, modification, forbearance or
delay or other act or omission of Lender or its failure to proceed promptly or otherwise, or by reason of any action taken or omitted
by Lender whether or not such action or failure to act varies or increases the risk of, or affects the rights or remedies of Guarantor,
nor will any modification of any of the obligations of Borrower or the release of any security therefor by operation of law or
by the action of any third party affect in any way the obligations of Guarantor under this Guaranty, and Guarantor hereby expressly
waives and surrenders any defense to Guarantor’s liability hereunder based upon any of the foregoing acts, omissions, things,
agreements or waivers or any of them, it being the purpose and intent of the parties hereto that the Guaranteed Obligations of
Borrower constitute the direct and primary obligations of Guarantor and that the covenants, agreements and all obligations of Guarantor
hereunder be absolute, unconditional and irrevocable.

 

12.        Remedies. All remedies afforded to Lender by reason of this Guaranty are separate and cumulative remedies and it
is agreed that no one of such remedies, whether or not exercised by Lender, will be deemed to be in exclusion of any of the other
remedies available to Lender and will in no way limit or prejudice any other legal or equitable remedy that Lender may have hereunder
and with respect to the Guaranteed Obligations. Guarantor agrees that, included within the equitable remedies available to Lender
hereunder is the right of Lender to elect to have any and all of the obligations and agreements of Guarantor hereunder specifically
performed.

 

13.        Judicial Actions. Guarantor hereby waives any and all right to cause a marshaling of the assets of Borrower or any
other action by any court or other governmental body with respect thereto, or to cause Lender to proceed against any security for
the Guaranteed Obligations or any other recourse that Lender may have with respect thereto or to set off the value of any such
security, and further waive any and all requirements that Lender institute any action or proceeding at law or in equity against
Borrower or anyone else, or with respect to the Note, or any collateral security therefor, as a condition precedent to making demand
on or bringing an action or obtaining and/or enforcing a judgment against, Guarantor upon this Guaranty. Guarantor further waives
any requirement that Lender seek performance by Borrower or any other person, of any obligation under the Note, or any collateral
security therefor as a condition precedent to making a demand on, or bringing any action or obtaining and/or enforcing a judgment
against, Guarantor upon this Guaranty, it being agreed that upon the occurrence of an event of default and acceleration of the
Guaranteed Obligations, the obligations of Guarantor under this Guaranty will without further act mature immediately and automatically,
without further notice or demand or any other action by Lender. Guarantor further acknowledges that time is of the essence with
respect to Guarantor’s obligations under this Guaranty. Any remedy or right hereby granted that will be found to be unenforceable
as to any person or under any circumstance, for any reason, will in no way limit or prevent the enforcement of such remedy or right
as to any other person or circumstances, nor will such unenforceability limit or prevent enforcement of any other remedy or right
hereby granted.

 

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14.        Bankruptcy of Borrower. Guarantor expressly agrees that Guarantor’s liability and obligations under this Guaranty
will not in any way be affected by the institution by or against Borrower or any other person or entity of any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceedings, or any other similar proceedings for relief under any bankruptcy law or similar
law for the relief of debtors and that any discharge of any of the Guaranteed Obligations pursuant to any such bankruptcy or similar
law or other law will not discharge or otherwise affect in any way the liabilities and obligations of Guarantor under this Guaranty,
and that upon the institution of any of the above actions, at the sole discretion of Lender, such liabilities and obligations will
be enforceable against Guarantor.

 

15.        Waiver of Set-Off. Lender hereby waives all rights of set-off Lender has under New Mexico law or the Loan Documents
against any and all deposits held by Lender in the name of Guarantor. Lender does not waive any other rights or remedies of Lender
under New Mexico law or the Loan Documents.

 

16.        Miscellaneous.

 

A.        Guarantor agrees to reimburse Lender upon demand for all reasonable out-of-pocket expenses (including reasonable attorneys’
fees and legal expenses) incurred by Lender arising out of or in connection with any failure of Guarantor to fully and timely perform
Guarantor’s liabilities and obligations hereunder. In the event of litigation with respect to this Guaranty, the prevailing
party will be entitled to recover its reasonable attorneys’ fees and costs.

 

B.         No delay on the part of Lender in the exercise of any power or right will operate as a waiver thereof, nor will any single
or partial exercise of any power or right preclude other or further exercise thereof or the exercise of any other power or right.

 

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C.         No invalidity, irregularity or unenforceability of all or any part of the Guaranteed Obligations or of any security therefor
or other recourse with respect thereto will affect, impair or be a defense to this Guaranty, and this Guaranty is a primary obligation
of Guarantor.

 

D.         All notices, demands and requests or other communication to be sent by one party to the other hereunder or required by law
will be in writing and will be deemed to have been validly made, given, served and received if given or served by delivery of same
in person to the addressee or by depositing same with Federal Express or other nationally recognized overnight courier service
for next business day delivery or by depositing same in the United States mail, postage prepaid, registered or certified mail,
return receipt requested, addressed as follows:

 

	 	Guarantor:	AMREP Southwest Inc.
	 	 	333 Rio Rancho Drive, Suite 202
	 	 	Rio Rancho, New Mexico 87124
	 	 	Attn: President

 

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

 

All notices, demands
and requests will be effective upon such personal delivery or upon being deposited with Federal Express or other nationally recognized
overnight air courier or in the United States mail as required above. However, with respect to notices, demands or requests so
deposited with an overnight air courier service or in the United States mail, the time period in which a response to any such notice,
demand or request must be given will commence to run from the next business day following any such deposit with an overnight air
courier service or, in the case of a deposit in the United States mail as provided above, the date on the return receipt of the
notice, demand or request reflecting the date of delivery or rejection of the same by the addressee thereof. Rejection or other
refusal to accept or the inability to deliver because of changed address of which no notice was given will be deemed to be receipt
of the notice, demand or request sent. By giving to the other party hereto at least five (5) days’ written notice thereof
in accordance with the provisions hereof, the parties hereto will have the right from time to time to change their respective addresses
and each will have the right to specify as its address any other address within the United States of America.

 

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

 

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F.         Guarantor shall maintain a minimum net worth equal to or greater than $32,000,000.00 measured annually and determined by
review of the financial information required to be provided to Lender by the terms of this Guaranty. Guarantor will provide to
Lender: (a) Guarantor’s annual unaudited and without footnotes financial statement within one hundred twenty (120) days of
fiscal year end; and (b) Guarantor’s quarterly unaudited and without footnotes financial statements within sixty (60) days
of each quarter end, beginning with the quarter ending January 31, 2021. All financial information provided to Lender will be in
form and content acceptable to Lender in its discretion.

 

G.         Financial Condition: The financial statements, information and materials of Guarantor heretofore delivered to Lender
fairly and accurately present in all material respects Guarantor’s consolidated financial condition (including its assets
and liabilities) as of the date or dates thereof (subject, in the case of the interim financial statements, to normal year-end
adjustments and the absence of notes), and there have been no material adverse changes in Guarantor's financial condition or operations
since the date or dates thereof. Guarantor does not currently have material guarantee obligations, contingent liabilities and liabilities
for taxes, or any long-term leases or unusual forward or long-term commitments, which are not reflected in the most recent financial
statements, information and materials referred to in this section.

 

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

 

I.          The provisions and covenants of this Guaranty shall be binding upon Guarantor, and shall inure to the benefit of Lender,
subsequent holders of this Guaranty, and their respective successors and assigns. For the purpose of this Guaranty, the term “Guarantor”
shall mean all persons named as Guarantor and their successors and assigns. All representations, warranties, covenants, agreements
and undertakings of Guarantor hereunder shall be deemed joint and several.

 

J.          For the purposes of this Guaranty, all defined terms contained in this Guaranty shall be construed, whenever the context
of this Guaranty so requires, so that the singular shall be construed as the plural and so that the masculine, feminine and neuter
shall be construed as the plural and so that the masculine, feminine and neuter shall be construed interchangeably as circumstances
require.

 

[SIGNATURE ON NEXT PAGE]

 

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Dated Effective: January 21, 2021.

 

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

 

    8

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