Document:

Exhibit 10.2

 

REVOLVING LINE OF CREDIT PROMISSORY
NOTE

 

 

	$4,000,000.00	February 3, 2021
	Note #_________	Albuquerque, New Mexico

 

FOR VALUE RECEIVED,
the undersigned AMREP Southwest Inc., a New Mexico corporation (“Maker”), hereby promises to pay to the order of BOKF,
NA dba Bank of Albuquerque (“Lender”), at its office located at 100 Sun Avenue, Suite 500, Albuquerque, New Mexico
87109, or at such other place as may be designated in writing by the holder of this Revolving Line of Credit Promissory Note (“Note”),
the principal sum of Four Million and No/100 Dollars ($4,000,000.00), or so much thereof as shall be disbursed hereunder, together
with interest thereon at the rates specified in this Note, payable as set forth herein.

 

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

 

A.          
“Business Day” shall mean any day excluding Saturday, Sunday and any other day on which banking institutions
in Albuquerque, New Mexico are authorized by law or other governmental actions to close, and, if such day relates to: (i) any interest
rate settings as to a LIBOR loan; (ii) any fundings, disbursements, settlements and payments in respect of any such LIBOR loan;
or (iii) any other dealings pursuant to this Note in respect of any such LIBOR loan, such day shall be a day on which dealings
in deposits in Dollars are conducted by and between banks in the London interbank eurodollar market.

 

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

 

C.          
“Interest Rate” shall mean the floating rate of interest equal to the one (1)-month LIBOR Rate (defined
below) plus three hundred (300) basis points per annum; provided, however, in no event will the Interest Rate be lower than
three and three-quarters of one percent (3.75%) per annum. 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
(defined below). Whenever increases occur in the Interest Rate, Lender, at its option, may do one or more of the following: (y)
increase Maker’s payments of principal or interest or both, or (z) continue Maker’s payments at the same amount and
increase the final payment. 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 Revolving Loan, Lender may designate a comparable substitute index after notifying
Maker.

 

     

     

    

 

D.          
“LIBOR” shall mean a rate (expressed to the fifth decimal place) equal to (i) the rate
of interest which is identified and normally published by ICE Benchmark Administration (or any other Person that takes over the
administration of such rate for United States dollars) for loans in United States dollars for thirty (30) day periods as of 11:00
a.m. (London time), on the first of each month (or if such day is not a Business Day, the immediately preceding Business Day) plus
(ii) the maximum reserve requirement, if any, then imposed under Regulation D of the Board of Governors of the Federal Reserve
System (or any successor thereto) for “Eurocurrency Liabilities” (as defined therein); provided, however, that if LIBOR
determined as provided above shall be less than zero, LIBOR shall be deemed to be zero for the purposes of this Agreement. Notwithstanding
the foregoing, if at any time Lender determines (which determination shall be conclusive absent manifest error) that (a) ICE Benchmark
Administration no longer reports LIBOR, (b) LIBOR is no longer a widely recognized benchmark rate for newly originated loans in
the U.S. commercial or syndicated loan market, (c) the applicable supervisor or administrator (if any) of any applicable interest
rate specified herein or any governmental authority having or purporting to have jurisdiction over Lender has made a public statement
identifying a specific date after which LIBOR shall no longer be used for determining interest rates for loans in the U.S. commercial
or syndicated loan market, or (d) Lender determines in good faith that the rate so reported no longer accurately reflects the rate
available to Lender in the London Interbank Market or if such index no longer exists or accurately reflects the rate available
to Lender in the London Interbank Market, then Lender may establish a replacement interest rate, including any necessary adjustments
to any applicable margin (the “Replacement Rate”), in which case, the Replacement Rate shall replace LIBOR and such
applicable interest rate for all purposes under this Note and the other Loan Documents unless and until (A) an event described
in clauses (i) through (iv) occurs with respect to the Replacement Rate or (B) Lender notifies Maker that the Replacement Rate
does not adequately and fairly reflect the cost to Lender of funding loans bearing interest at the Replacement Rate. In connection
with the establishment and application of the Replacement Rate, and notwithstanding anything to the contrary as may be set forth
in Section 12.3 of the Loan Agreement, this Note and the other Loan Documents shall be amended as may be necessary or appropriate,
in consultation with Maker but in the sole opinion of Lender, to effect the above provisions and the implementation of the Replacement
Rate and, without limitation of Maker’s covenant under Section 6.8 of the Loan Agreement. Maker consents to any such necessary
or appropriate amendments.

 

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

 

F.           
“Maturity Date” shall mean February 3, 2024, 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 certain Line of Credit Mortgage, Security Agreement and Fixture Filing, dated
the same date as this Note, executed by Maker for the benefit of Lender, and securing, among other things, payment of this Note,
as supplemented, modified and amended.

 

    	 	2	 

     

    

 

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

 

2.           
Note. This Note shall evidence a revolving line of credit, which can be advanced, repaid and re-advanced from time
to time; provided, however, that Maker shall not be entitled to advances under the Revolving Loan if Maker’s total
Liquidity is less than Three Million and No/100s Dollars ($3,000,000). As used in this Note "Liquidity" means the sum
of: (a) Borrower’s and Borrower’s subsidiaries’ unencumbered cash, cash equivalents, and marketable securities;
and (b) Borrower's and Borrower’s subsidiaries’ unrestricted cash, cash equivalents, and marketable securities, all
as determined on a current value basis. Each request for an advance of the Revolving Loan shall be accompanied by evidence acceptable
to Lender that Maker’s total Liquidity exceeds Three Million and No/100s Dollars ($3,000,000). The total of all the advances
of principal made during the term of this Note may exceed $4,000,000.00; provided, however, the outstanding principal balance of
this Note shall not exceed $4,000,000.00 at any time. Further, there will be times when no amounts are outstanding under this Note,
but this shall not impair or in any way affect either the validity or enforceability of this Note.

 

3.           
Resting Period. For two (2) periods of fifteen (15) consecutive days during each calendar year (each, a “Resting
Period”), the Revolving Loan shall be reduced, paid to, or otherwise carry a zero (0) balance. Each Resting Period may occur
in immediate succession to a prior Resting Period. Nothing contained herein shall be interpreted to require Maker to draw on this
Note, if this Note otherwise carries a zero (0) balance, in order to comply with the Resting Period requirements contained in this
Section 3.

 

4.           
Payments. Maker shall make payments of interest only at the Interest Rate due under this Note on a monthly basis,
beginning on March 3, 2021, and continuing on the same day of each month thereafter, through and including the Maturity Date. If
not sooner paid, the unpaid principal balance of this Note and all unpaid, accrued interest thereon shall be due and payable on
the Maturity Date.

 

5.           
Loan Commitment Fee. On the date this Note is signed, Maker will pay to Lender a loan commitment fee in the amount
of Ten Thousand and No/100 Dollars ($10,000.00).

 

6.           
Computation of Interest and Related Fees. Interest due under this Note shall be calculated on the unpaid principal
to the date of each installment paid, and each payment of principal and/or interest made hereunder shall be credited first to the
discharge of interest, and the balance shall be credited to the unpaid principal sum. All payments of interest shall be computed
on the per annum basis of a year consisting of three hundred sixty (360) days and for the actual number of days elapsed (including
the first day, but excluding the last if payment is received by the holder of this Note by 1:00 p.m. mountain daylight time or
mountain standard time, whichever is applicable). 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 Revolving Loan.

 

    	 	3	 

     

    

 

7.           
Default Interest. Subject to the notice and cure provisions contained in the Mortgage, while any Event of Default
exists in the making of any of the payments herein provided to be made, or in the performance or observance of any of the terms,
covenants or conditions of the Loan Agreement, this Note, the Mortgage or of any instrument now or hereafter securing payment of
the indebtedness evidenced by this Note, at the option of the holder of this Note, in its sole discretion, the entire unpaid principal
balance hereof shall bear interest at the rate per annum equal to the applicable Interest Rate, adjusted as of the date of any
change therein, plus five percent (5%) per annum (the “Default Rate”). During the existence of any such Event of Default,
the holder of this Note may apply payments received on any amounts due hereunder, or under the terms of any instrument now or hereafter
evidencing or amounts due hereunder, or under the terms of any instrument now or hereafter evidencing or securing such indebtedness,
as the holder may determine, and if the holder of this Note so elects, notice of election being expressly waived, the principal
hereof remaining unpaid, together with accrued interest, shall at once become due and payable. Any and all additional interest
that has accrued at the rate provided in this paragraph shall be due and payable at the time of, and as a condition precedent to,
the curing of any Event of Default.

 

8.           
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 10 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 (b) $700.00. Maker agrees that the charges set forth herein are reasonable compensation
to Lender for the acceptance and handling of such late payments.

 

9.           
Currency. All sums called for, payable, or to be paid hereunder shall be paid in lawful money of the United States
of America, which, at the time of payment, is legal tender for the payment of public and private debts therein. Additionally, Maker
shall have the right to make payments by wire transfer of ACH directly to Lender. Within ten (10) days after written request by
Maker, Lender shall provide wiring and ACH instructions to Maker for all payment due pursuant to the Revolving Loan.

 

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.

 

    	 	4	 

     

    

 

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.

 

 

    	 	5	 

     

    

 

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 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 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,
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. Maker, endorsers, sureties, guarantors and all other parties who may become liable for all or any part of
this Note severally waive demand, presentment, notice of dishonor, protest, notice of protest, notice of nonpayment, notice of
intent to accelerate, notice of acceleration of the maturity of this Note and consent to: (a) any and all extensions of time for
any term or terms regarding any payment due under this Note, including partial payments or renewals before or after maturity; (b)
changes in interest rates as provided in this Note; (c) any substitutions or release of collateral; and (d) the addition, substitution
or release of any party liable for payment of this Note.

 

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

 

A.          
[Intentionally Omitted].

 

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

 

C.          
This Note may not be terminated orally, but only by a discharge in writing and signed by the party who is the owner and
holder of this Note at the time enforcement of any discharge is sought.

 

D.          
MAKER HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING ARISING OUT OF OR RELATING
TO THE RELATED DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED THEREBY AND AGREES THAT ANY SUCH ACTION OR PROCEEDING SHALL BE TRIED
BEFORE A COURT AND NOT BEFORE A JURY. MAKER ACKNOWLEDGES THAT THIS WAIVER IS A MATERIAL INDUCEMENT TO ENTER INTO A BUSINESS RELATIONSHIP,
THAT LENDER HAS RELIED ON THE WAIVER IN ENTERING INTO THIS AGREEMENT AND THE OTHER RELATED DOCUMENTS, AND THAT LENDER WILL CONTINUE
TO RELY ON THIS WAIVER IN THEIR RELATED FUTURE DEALINGS. MAKER WARRANTS AND REPRESENTS THAT MAKER HAS HAD THE OPPORTUNITY OF REVIEWING
THIS JURY WAIVER WITH LEGAL COUNSEL, AND THAT MAKER KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS.

 

[SIGNATURE ON NEXT PAGE]

 

    	 	6	 

     

    

 

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

 

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

 

 

 

    	 	7Exhibit 10.3

 

LINE OF CREDIT MORTGAGE, SECURITY
AGREEMENT

AND FIXTURE FILING

 

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

 

THIS LINE OF CREDIT
MORTGAGE, SECURITY AGREEMENT AND FIXTURE FILING (“Mortgage”) is made effective as of the 3rd day of February,
2021, by and between AMREP Southwest Inc., a New Mexico corporation (“Mortgagor”), for the benefit of BOKF, NA dba
Bank of Albuquerque (“Mortgagee”) 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 Revolving Line of Credit Promissory Note in the principal sum
of $4,000,000.00, 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 Default Rate (defined in the Note).

 

(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 TWICE 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.

 

(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;

 

    	 	2	 

     

    

 

(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 Loan Documents; and (iii) any and all sums which Mortgagee may expend 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 in accordance with this Mortgage or become obligated to expend at the Default Rate;
and (iv) any and all amounts which Mortgagee may reasonably expend in accordance with the Loan Documents, 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
Documents (all of the above-described indebtedness and obligations are hereinafter collectively referred to as the “Secured
Indebtedness”).

 

    	 	3	 

     

    

 

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: (a) deposits to secure
payment of worker’s compensation, unemployment insurance and other similar benefits; (b) liens for property taxes not yet
due; (c) statutory liens, against which there are established reserves in accordance with generally accepted accounting principles,
and which arise in the ordinary course of business and secure obligations of Mortgagor which are not yet due and not in default;
(d) encumbrances in favor of Mortgagee; (e) matters reflected in the policy of title insurance; and (f) 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.

 

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 Section 7.1 of the Loan Agreement, in each case other than the Permitted Liens. Except
for the Mortgage made by Mortgagor in favor of American Republic Investment Co., a Delaware corporation, recorded on April 29,
2011, in the real property records of Sandoval County, New Mexico in Book 414, Page 10645, as Document Number 2011010645 (as modified
and amended, the “ARI Mortgage”), which Mortgage shall be subordinated to the lien of this Mortgage, 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	 

     

    

 

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 such insurance shall be provided by insurers
having an A.M. Best policyholders rating reasonably acceptable to Mortgagee. Mortgagor will not bring or keep any article on the
Land, or cause or allow any condition to exist, if the presence of such article or the occurrence of such condition could reasonably
cause the invalidation of any insurance required by this Section 4, or would otherwise be prohibited by the terms thereof. Mortgagor
will cause Mortgagee to be named as an additional insured, assignee and loss payee (which shall include, as applicable, identification
as mortgagee), as applicable, on each insurance policy required to be maintained pursuant to this Section 4 pursuant to endorsements
in form and content acceptable to Mortgagee. Mortgagor will deliver to Mortgagee: (a) prior to the date this Mortgage is recorded
in the real property records of Sandoval County, New Mexico, a certificate from Mortgagor’s insurance broker dated such date
showing the amount of coverage as of such date, and that such policies will include effective waivers (whether under the terms
of any such policy or otherwise) by the insurer of all claims for insurance premiums against all loss payees and additional insureds
and all rights of subrogation against all loss payees and additional insureds, and that if all or any part of such policy is canceled,
terminated or expires, the insurer will forthwith give notice thereof to each additional insured, assignee and loss payee and that
no cancellation, reduction in amount or material change in coverage thereof shall be effective until at least thirty (30) days
after receipt by each additional insured, assignee and loss payee of written notice thereof; (b) on an annual basis, and upon
the request of Mortgagee from time to time full information as to the insurance carried by Mortgagor; (c) within five (5)
days of receipt of notice from any insurer, a copy of any notice of cancellation, nonrenewal or material change in coverage from
that existing on the date of this Mortgage; and (d) forthwith, notice of any cancellation or nonrenewal of coverage by Mortgagor.
In the event Mortgagor fails to provide Mortgagee with evidence of the insurance coverage required by this Mortgage, Mortgagee
may purchase insurance at Mortgagor’s expense to protect Mortgagee’s interests in the Mortgaged Property. This insurance
may, but need not, protect Mortgagor’s interests. The coverage purchased by Mortgagee may not pay any claim made by Mortgagor
or any claim that is made against Mortgagor in connection with the Mortgaged Property. Mortgagor may later cancel any insurance
purchased by Mortgagee, but only after providing Mortgagee with evidence that Mortgagor has obtained insurance as required by this
Mortgage. If Mortgagee purchases insurance for the Mortgaged Property, to the fullest extent provided by law Mortgagor will be
responsible for the costs of that insurance, including interest and other charges imposed by Mortgagee in connection with the placement
of the insurance, until the effective date of the cancellation or expiration of the insurance. The costs of the insurance may be
added to the Secured Indebtedness. The costs of the insurance may be more than the cost of insurance Mortgagor is able to obtain
on its own. In the event of any damage to or destruction of the Mortgaged Property or any part thereof, Mortgagor shall promptly
notify Mortgagee and take such action necessary to preserve the undamaged portion of the Mortgaged Property. If at the time of
such damage and destruction: (i) no Event of Default is in existence and no event shall have occurred as of such date that, with
the passage of time, the giving of notice or both, would constitute an Event of Default; (ii) the damage is such that it can be
reasonably repaired so as to preclude a material reduction in the rental income from the Mortgaged Property (after application
of any rental insurance proceeds); (iii) the casualty insurer has not denied liability for payment of proceeds as a result of any
act, neglect, use or occupancy of the Mortgaged Property by Mortgagor; (iv) the Real Property and/or Mortgaged Property can be
restored to the condition at least equal to the condition in which they existed at the closing of the Loan; and (v) if required
by Mortgagee, a satisfactory report addressed to Mortgagee from an environmental engineer or other qualified professional satisfactory
to Mortgagee certifies that no adverse environmental impact to the Mortgaged Property has resulted from the casualty; then, any
proceeds paid to Mortgagee in connection with such damage or destruction, after deducting therefrom any expenses, including without
limitation reasonable attorneys’ fees, incurred by Mortgagee in protecting the undamaged portion of the Improvements and
in the collection of the proceeds (the "Collection Expenses"), shall be applied by Mortgagee to the cost of restoring,
repairing, replacing or rebuilding (herein generally called "Restoration") the Land and/or Mortgaged Property or any
part thereof. Otherwise, in Mortgagee’s sole discretion, all proceeds, less Collection Expenses, shall be applied: (A) to
the installments of the Secured Indebtedness without payment of a prepayment penalty; or (B) to the cost of Restoration.

 

    	 	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.

 

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 any 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.

 

    	 	6	 

     

    

 

10.        
FIXTURE FILING. Mortgagor desires and intends that this Mortgage also constitute a Fixture Filing between Mortgagor
as debtor and Mortgagee as secured party, as defined in the Uniform Commercial Code, for any fixtures or personal property that
may be located in the Land in the future. To this end, Mortgagor acknowledges that: (a) this Mortgage covers goods which may become
fixtures on the Land; (b) this financing statement is to be recorded; (c) Mortgagor is the record owner of such property; and (d)
products of collateral are also covered. Except as otherwise provided in the Loan Documents, no financing statement in favor of
any secured party other than Mortgagee covering the personal property described herein or any portion thereof is on file in any
public office. Mortgagor will not remove or permit the removal of the collateral or any part thereof without the prior written
permission of Mortgagee, provided that obsolete and worn-out articles may be removed concurrently with the replacement or renewal
thereof with property of at least equal value or usefulness in the operation of the Mortgaged Property. Mortgagor represents, as
of the date hereof, that the following information set forth below in clauses (1), (4) and (5), is true and correct:

 

(1)         
The exact Legal Name and address of Mortgagor is: AMREP Southwest Inc., 333 Rio Rancho Drive, Suite 202, Rio Rancho, New
Mexico 87124.

 

(2)         
Name and address of Mortgagee: BOKF, NA dba Bank of Albuquerque, 100 Sun Avenue NE, Suite 500, Albuquerque, New Mexico 87109,
Attention: Jordan Herrington.

 

(3)         
Description of real estate to which collateral may become attached: Described in Exhibit A.

 

(4)         
Mortgagor's principal office is located in the State of New Mexico, and Mortgagor's state of organization is the State of
New Mexico.

 

(5)         
Mortgagee may file this Mortgage, or a reproduction of this Mortgage, in the real estate records or other appropriate index,
as a financing statement for any of the items specified above as part of the Mortgaged Property. Any reproduction of this Mortgage,
or of any other security agreement or financing statement is sufficient 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 the ARI Mortgage, 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 is adjudicated insolvent or makes an assignment for the benefit of creditors; or

 

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

 

14.7.   
A receiver, trustee, conservator or liquidator is appointed for Mortgagor or for any part of the property or affairs of
Mortgagor or any proceeding is commenced relating to Mortgagor 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; 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

 

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.

 

    	 	9	 

     

    

 

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

 

15.3.   
Attorneys’ Fees and Costs. The losing party agrees to pay and reimburse the prevailing party for all reasonable
attorneys’ fees, costs and expenses paid or incurred by the prevailing party in any legal action, proceeding or other dispute
of any kind in which Mortgagee is made a party or appears as a party plaintiff or defendant, involving the Loan Agreement, the
Note, this Mortgage 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.

 

    	 	10	 

     

    

 

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

 

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

 

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

 

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

 

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

 

    	 	11	 

     

    

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    	 	12	 

     

    

 

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.

 

    	 	13	 

     

    

 

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 Mortgage
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.        
LIMITATION OF INDEMNITY. To the extent, if at all, NMSA 1978, §56-7-1, 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.

 

33.        
RELEASE. If Mortgagor pays Mortgagee all of the Secured Indebtedness in full, then upon receipt by Mortgagee of such
payment and upon at least fifteen (15) days prior written notice from Mortgagor, Mortgagee shall release this Mortgage of record.

 

[SIGNATURE ON NEXT PAGE]

 

    	 	14	 

     

    

 

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

 

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

 

 

STATE OF NEW MEXICO

 

COUNTY OF SANDOVAL

 

This instrument was
acknowledged before me on February 2, 2021, by Cary A. Plant, Vice President of AMREP Southwest Inc., a New Mexico corporation.

 

	 	/s/ Karen Lee Ward
	 	Notary Public

 

My Commission Expires: November 18, 2021

 

 

    	 	15	 

     

    

 

EXHIBIT A

Legal Description

 

Tracts numbered Nineteen (19), Twenty (20),
Twenty-one (21), Twenty-two (22), Twenty-three (23), Twenty-five (25), Twenty-six (26), Twenty-seven (27) and Twenty-eight (28)
of PASEO GATEWAY, as the same are shown and designated on the Plat entitled, "PASEO GATEWAY, TRACTS 19 THRU 28 AND
PARCEL B, A REPLAT AND VACATION OF PORTIONS OF UNIT TWENTY, WITHIN SECTION 33, 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 December 3, 2008 in Vol. 3, folio 2982-A (Rio Rancho Estates Plat Book No. 21, Page 125).

 

AND

 

Tract numbered 24A of PASEO GATEWAY,
as the same is shown and designated on the Summary Plat entitled, "Summary Plat, Tract 24A and Tract 24B, a Replat of
Tract 24, PASEO GATEWAY, within Section 33, 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 July 3, 2014 in Vol.
3, folio 3728 (Rio Rancho Estates Plat Book No. 25, Page 54).

 

 

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