AXR AMREP Corp

Item 1.01 Entry into a Material Definitive Agreement.

Reference is made to the Annual Report on Form 10-K of AMREP Corporation (the “Company”) for the year ended April 30, 2017, which was filed with the Securities and Exchange Commission on July 18, 2017, regarding the Settlement Agreement and Mutual General Release (the “Settlement Agreement”) between the Florida Department of Economic Opportunity (the “State of Florida”) and Palm Coast Data LLC (“PCD”), a subsidiary of the Company entered into in May 2017 and the related Guaranty Agreement between the Company and the State of Florida entered into in May 2017. As part of the Settlement Agreement, PCD agreed to pay the State of Florida 40 quarterly payments of $40,000 each, without interest, on the first business day of each calendar quarter starting on October 1, 2017 and ending on July 1, 2027. PCD has timely paid two such quarterly payments. Pursuant to the Guaranty Agreement, the Company guaranteed the payment by PCD of amounts due to the State of Florida under the Settlement Agreement.

On February 27, 2018, PCD and the Company entered into a Release Agreement (the “Release Agreement”), dated February 22, 2018, with the State of Florida. Pursuant to the Release Agreement, (1) PCD paid the State of Florida $956,192.31, (2) each of the parties released all claims relating to the Guaranty Agreement and the payment obligations under the Settlement Agreement that the releasing party may have against each of the other parties and (3) each of the Guaranty Agreement and the payment obligations under the Settlement Agreement shall be deemed terminated and none of the parties shall have any further liabilities or obligations with respect thereto.

The foregoing description of the Release Agreement is a summary only and is qualified in all respects by the provisions of such document, a copy of which is attached hereto as Exhibit 10.1 and is incorporated herein by reference.