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**CANYON-JOHNSON      URBAN FUND II,      L.P**.

**Via      Facsimile and**

**Overnight      Courier**

|   | **Re:** | **Block                21 – Austin, Texas – Agreement to Form                Company** |
|--------|---------|----------------------------------------------------------------------------------------------------|

**Term**
** **
**Sheet**
**Urban**

**Agreement**
**Stratus Member**
**Stratus**
**Operating Agreement**
**Company**
**Developer**
**SPI**
**Development      Agreement**

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**Closing      Date**
**Closing Conditions**
**Stratus Parties**
**Stratus Party**
**Outside      Date**

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**Stratus Change in      Control**
**Key Person Event**

**Walk Reimbursement**

**Urban Purchase Event**
**Urban Purchase Event      Closing**

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**Stratus Change of Control**

**Transaction Information**

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|   | By: | Canyon-Johnson                Realty Advisors II, LLC, |
|--------|-----|--------------------------------------------------------|

|   | a                Delaware limited liability company, |
|--------|------------------------------------------------------|

|   | General                Partner |
|--------|--------------------------------|

|   | By:                /s/ K. Robert Turner |
|--------|-----------------------------------------|

|   | K.                Robert Turner |
|--------|---------------------------------|

|   | Authorized                Signatory |
|--------|-------------------------------------|

|   | By:                /s/ Neville Rhone |
|--------|--------------------------------------|

|   | Neville                Rhone |
|--------|------------------------------|

|   | Director |
|--------|----------|

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**EXHIBIT      A**

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**EXHIBIT      B**

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**EXHIBIT      C**

**Exhibit      C-1**

**Exhibit C-2**

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**EXHIBIT      C-1 TO ADDITIONAL CONDITIONS**

**Site      Development Permit**

|   | 1. | An                Unconsolidated Site Development Permit issued by the City of Austin                for                the garage and foundation excavation component of the Project based                on the                unconsolidated site plan application prepared and sealed by Bury                +                Partners, Engineers, dated April 17, 2007, and submitted to and approved                by the City of Austin pursuant to its Land Development Code;                and |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | A                Consolidated Site Development Permit issued by the City of Austin                for the                Project based on the consolidated site plan application prepared                and                sealed by Bury + Partners, Engineers, and submitted to and approved                by the                City of Austin pursuant to its Land Development                Code. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Initial      Phase Building Permit**

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|   | **EXHIBIT                C-2 TO ADDITIONAL                CONDITIONS** |
|--------|------------------------------------------------------------------------|

|   | LTV:  A                minimum loan-to-value of seventy percent                (70%). |
|--------|-------------------------------------------------------------------------------------------------|

|   | Interest                Rate:  A maximum annual interest rate of seven and one-half                percent (7.5%). |
|--------|------------------------------------------------------------------------------------------------------------------------------|

|   | Loan                Term:  A minimum loan term of thirty-six (36)                months. |
|--------|----------------------------------------------------------------------------------------------------|

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