Document:

Exhibit 10.12

     

     AGREEMENT
      OF SALE AND PURCHASE

     

    THE
      STATE
      OF
      TEXAS           §

                                                         
      §

    COUNTY
      OF
      TRAVIS  §

    

    THIS
      AGREEMENT OF SALE AND PURCHASE (“Agreement”) is made by and between STRATUS
      PROPERTIES OPERATING CO., L.P., a Delaware limited liability partnership
      (“Seller”) and ADVANCED MICRO DEVICES, INC., a Delaware corporation
      (“Purchaser”) and is as follows:

     

    II.

     

    Sale
      and Purchase

     

      1.01 
      The Property. Seller hereby agrees to sell and convey unto Purchaser, and
      Purchaser hereby agrees to purchase from Seller, for the price and subject
      to
      the terms, covenants, conditions and provisions herein set forth: (i) all of
      the
      real property described on Exhibit “A” attached hereto and incorporated
      herein by reference (the “Land”); (ii) all of Seller’s right, title, and
      interest in and to all appurtenances to the extent, and only to the extent,
      benefiting or pertaining to the Land, including, without limitation, all of
      Seller’s right, title, and interest in and to all streets, alleys,
      rights-of-way, or easements benefiting the Land (all of the foregoing being
      referred to herein collectively as the “Appurtenances”); and (iii) all of
      Seller’s right, title, and interest in and to all of the items described and
      defined on Exhibit “B” attached hereto and incorporated herein by
      reference, being the Plans and Reports, Governmental Approvals and Permits,
      Utility Service Permits, Utility Service Rights, and Street and Drainage Rights
      described and defined therein (all of the foregoing being referred to herein
      individually by the names set out above, and collectively as the “Personal
      Property”). The Land and Appurtenances are collectively referred to herein as
      the “Real Property.” The Real Property and the Personal Property are herein
      collectively referred to as the “Property.”

     

    1.02  The
      Options. If and only if Purchaser closes the purchase of the Property under
      the terms of this Agreement, then Purchaser will have options (the “Options”) to
      purchase those certain option tracts described on Exhibit “C” attached
      hereto and incorporated herein (collectively referred to as the “Option Tracts”
and individually as an “Option Tract”). Accordingly, at the Closing of the
      purchase of the Property hereunder by Purchaser, Seller and Purchaser shall
      enter into: (i) the option agreements in the forms of Exhibits “D-1,” “D-2”
and “D-3” attached hereto and incorporated herein by reference
      (collectively, the “Option Agreements”) pursuant to which Purchaser shall have
      the option to purchase each of the Option Tracts (it being contemplated that
      Seller and Purchaser will enter into an Option Agreement to purchase each Option
      Tract); and (ii) a memorandum of options in the form of Exhibit “E”
      attached hereto and incorporated herein by reference to be recorded in the
      Official Public Records of Travis County, Texas, evidencing Purchaser’s option
      to purchase each of the Option Tracts (the “Memorandum of
      Options”).

     

      II.

     

    Consideration

     

     2.01  
      Purchase Price. The purchase price to be paid by Purchaser to Seller for
      the sale and conveyance of the Property shall be NINETEEN MILLION AND NO/100
      DOLLARS ($19,000,000.00) (the “Purchase Price”). 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

      2.02 
      Payment of the Purchase Price. The Purchase Price shall be payable in
      full in readily available funds at the Closing.

     

      2.03 
      Earnest Money. In order to secure Purchaser’s performance of this
      Agreement, Purchaser shall, within two (2) business days after the Effective
      Date of this Agreement, deposit FOUR MILLION AND NO/100 DOLLARS ($4,000,000.00)
      in cash or other readily available funds with Heritage Title Insurance Company
      of Austin, Inc., (the “Title Company”) at its offices at 401 Congress Avenue,
      Suite 1500, Austin, Texas 78701, Attn: Amy Fisher. All cash deposited with
      the
      Title Company pursuant to the terms hereof is referred to herein collectively
      as
      the “Earnest Money.” The Earnest Money will be placed in an interest bearing
      account at one or more state or federally chartered banks while under the
      control of the Title Company, and all interest earned thereon will become part
      of the Earnest Money hereunder. Purchaser will promptly execute and deliver
      to
      the Title Company all documents and certificates as are required by Title
      Company to invest the Earnest Money in an interest bearing account. If the
      transaction contemplated hereby is consummated in accordance with the terms
      and
      provisions hereof, the Earnest Money shall be applied against the Purchase
      Price
      at Closing. If the transaction is not so consummated, the Earnest Money shall
      be
      held and delivered by the Title Company as hereinafter provided. Upon the
      expiration of the “SDP Contingency Period” (defined in Section 4.03.A), the
      Earnest Money will only be refundable to Purchaser upon a Seller Default or
      upon
      any specific termination right of Purchaser that expressly provides for the
      refund of the Earnest Money to Purchaser and, otherwise, will be delivered
      to
      Seller as and when provided under the provisions of this Agreement.

     

    III

     

    Title
      and Survey

     

      3.01
      Title Commitment. Within fifteen (15) days after the Effective Date,
      Seller shall cause the Title Company to deliver to Purchaser a title commitment
      (“Commitment”) issued by the Title Company showing Seller as the record fee
      title owner of the Property by the terms of which the Title Company agrees
      to
      issue to Purchaser an owner’s policy of title insurance (“Title Policy”) in the
      amount of the Purchase Price on the standard form promulgated by the State
      Board
      of Insurance of Texas insuring Purchaser’s fee simple title to the Property to
      be good and indefeasible, subject to the terms of such policy and the exceptions
      set forth therein together with copies of all documents which will be shown
      as
      Schedule B Exceptions on the Title Policy upon issuance (the “Title Review
      Documents”). The Commitment shall provide that the standard printed exceptions
      set forth in the Title Policy shall be modified as follows: (i) the exception
      relating to restrictive covenants shall be deleted except for restrictions
      which
      may be Permitted Exceptions; (ii) the exception as to boundaries, etc. shall
      be
      modified to except only as to “shortages in area”; and (iii) there shall be no
      exception for “rights of parties in possession.”

     

      3.02 
      Survey. Seller at its sole cost and expense shall, within twenty (20)
      days after the Effective Date of this Agreement, cause to be furnished to
      Purchaser: six (6) copies of an on-the-ground, survey with attached field notes
      (“Survey”) of the Real Property, prepared and certified as to all matters shown
      thereon by a registered surveyor (“Surveyor”). The Survey shall be dated
      subsequent to the Effective Date of this Agreement; shall comply with the Texas
      Society of Professional Surveyors Standards and Specifications for a Category
      1-A, Condition II Survey; and shall contain a certificate addressed to Purchaser
      and the Title Company in the form set forth on Exhibit “F” (“Survey
      Certificate”), attached hereto and incorporated herein by reference. In
      addition, the Survey shall be in a form acceptable to the Title Company to
      modify the survey exception in the Title Policy to read “shortages in
      area.”

     

     

    
      
        
        

      

      
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      3.03 
      Permitted Exceptions. On or before ten (10) business days after all of
      the Commitment, the Title Review Documents, and the Survey have been delivered,
      Purchaser shall provide Seller with written notice of any objections which
      Purchaser has to exceptions shown on the Commitment or any condition of the
      Property as revealed by the Survey. All objections raised by Purchaser in the
      manner herein provided are hereafter called “Objections.” Seller shall have no
      obligation to cure or remove any Objections, but, Seller shall notify Purchaser
      in writing within ten (10) business days after receipt of the Objections as
      to
      which Objections Seller will cure. Purchaser may, on or before five (5) business
      days after Seller’s delivery to Purchaser of such notice, terminate this
      Agreement in its entirety by giving Seller written notice of termination.
      Thereafter, the Earnest Money shall be returned to Purchaser except for the
      sum
      of $100 which will be delivered to Seller as independent consideration
      hereunder, and Seller and Purchaser shall be released and relieved of further
      obligations, liabilities and claims hereunder except for the Post Termination
      Obligations (defined below) which will survive such termination. If Purchaser
      fails to give written notice of termination within such five (5) business day
      period, all Objections that Seller refuses to cure shall be deemed waived.
      Seller shall cure all Objections Seller represents it will cure and in no event
      shall such Objections remain uncured five days prior to Closing. If Seller
      fails
      to cure such Objections within said five (5) day period, Closing shall be
      extended for thirty (30) days, and if such Objections remain uncured after
      such
      extension, Purchaser’s sole and exclusive remedy shall be either: 

     

     A.  
      to terminate this Agreement; have the Earnest Money returned to it, less the
      independent consideration; and Seller shall be obligated to pay Purchaser within
      thirty (30) days after such election is made by Purchaser the out of pocket
      costs and expenses incurred by Purchaser after the Effective Date for third
      party contractors, consultants and attorneys regarding the Property provided
      that Purchaser provides Seller reasonable documentation of such costs that
      are
      incurred after the Effective Date; or 

     

      B.  
      to enforce specific performance of Seller’s agreement to cure such Objections;
      or

     

     
      C.   to proceed to Closing, in which event such Objections shall be
      deemed waived.

     

    The
      term
“Permitted Exceptions” as used herein shall include: (i) all exceptions which
      are set forth on the Commitment and all conditions of the Property which are
      revealed by the Survey which are not timely objected to by Purchaser during
      the
      objection period herein provided; and (ii) any exceptions or conditions made
      the
      subject of Objections which are waived by Purchaser or are deemed waived by
      Purchaser.

     

    3.04. Section
      10(a) Restriction. 

     

    A.  The
      Property is covered by a United States Fish & Wildlife Service Section 10(a)
      Permit (the “Section 10(a) Permit”), which was issued effective February 10,
      1995. Seller has provided Purchaser a complete copy of the Section 10(a) Permit.
      As provided in Section 4.07, below, at Closing, Purchaser agrees to pay Seller
      the Lantana Community Contribution, a portion of which represents full and
      final
      payment of costs and expenditures allocated to the Property by Seller for
      maintenance and related obligations required under the Section 10(a) Permit.”

     

    B.  Seller
      agrees that prior to Closing, Seller shall obtain, at Seller’s sole cost and
      expense, and deliver to Purchaser a letter or other document from the US
      Department of Fish and Wildlife, stating that the Section 10(a) Permit is in
      good standing and
      covers the Property.
      Failure
      of Seller to obtain said letter prior to Closing shall entitle Purchaser to
      the
      remedy stated in Section 7.01.B(i) as if Seller breached one of Seller’s
      Representations and Warranties.

     

    
      
        
        

      

      
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    C.  Purchaser
      covenants (which covenant shall survive Closing) and agrees that, while
      Purchaser is the owner of the Property, it shall not take, and shall use
      commercially reasonable efforts to prevent, any use or development of the
      Property by Purchaser, or Purchaser’s officers, employees and contractors, which
      would jeopardize the continued efficacy of the Section 10(a) Permit. The
      provisions of this Section 3.04 shall be included in the deed executed by Seller
      to Purchaser at Closing and shall be a “Permitted Exception”
hereunder.

     

    D. Seller
      covenants (which covenant shall survive Closing) and agrees that, while Seller
      is the owner of any property covered by the Section 10(a) Permit, that Seller
      shall use commercially reasonable efforts to keep the Section 10(a) Permit
      in
      good standing.

     

      

    IV.

     

    Review
      Period and Development Permit Contingency

     

      4.01 
      Review Materials. To the extent Seller has not delivered the following to
      Purchaser prior to the Effective Date, Seller shall, within five (5) business
      days after the Effective Date of this Agreement, deliver to Purchaser copies
      of
      all reports, plans, specifications, plats, surveys, documents, instruments
      or
      other items of any kind or nature which relate to the Property and are in
      Seller’s possession, including but not limited to copies of all Plans and
      Reports. Notwithstanding the foregoing, prior earnest money contracts,
      appraisals, trust agreements and related instruments, and privileged
      communications under the attorney/client privilege are excluded from Seller’s
      disclosure requirement hereunder. All materials and information required to
      be
      submitted by Seller to Purchaser hereunder are referred to herein as the “Review
      Materials.” All Review Materials are delivered by Seller and accepted by
      Purchaser “AS IS” and without any representation or warranty with respect to
      their content by Seller; provided, however, Seller agrees to advise Purchaser
      when the Review Materials are delivered of any material defects or materials
      errors in the Review Materials known to Seller to the extent affecting the
      use
      or development of the Property.

     

      4.02 
      Review Period. During the period of time following the Effective Date of
      this Agreement until the date which is the later to occur of (i) thirty
      (30) days after the Effective Date or (ii) the date by which all of the
      Commitment, the Title Review Documents, and the Survey have been delivered
      to
      Purchaser (the later being herein called the “Termination Date”), Purchaser
      shall have the right to review the Review Materials; to inspect the Property;
      and to otherwise conduct a feasibility review and analysis with respect to
      the
      Property. Purchaser agrees that it will provide Seller with copies of all
      reports it obtains and studies that relate to the condition or potential
      development by Purchaser of the Property promptly upon receipt of such reports
      and studies by Purchaser. Notwithstanding any provision hereof to the contrary,
      should Purchaser determine, in Purchaser’s sole and absolute discretion, that
      the Property is not satisfactory to Purchaser for any reason, Purchaser may
      terminate this Agreement by delivering written notice of such termination to
      Seller on or before the Termination Date. If Purchaser fails to deliver written
      notice of termination on or before the Termination Date, Purchaser’s right of
      termination under this Section 4.02 will be deemed waived. If Purchaser timely
      terminates this Agreement pursuant to the terms of this Section 4.02, then
      the
      Earnest Money shall be returned to Purchaser except for the sum of $100 which
      will be delivered to Seller as independent consideration, and thereafter neither
      party shall have any further rights, remedies, or obligations hereunder except
      for the Post Termination Obligations which will survive termination. Prior
      to
      the Effective Date, Seller and Purchaser entered into that certain Site Access
      Agreement (the “Site Access Agreement”) dated July 28, 2005 (the “Site
      Access Date”) providing Purchaser’s early access to the Property pending the
      negotiation and execution of this Agreement. This Agreement supercedes the
      terms
      and provisions of the Site Access Agreement.

     

     

    
      
        
        

      

      
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    Without
      limiting the foregoing provisions of this Section, throughout the term of this
      Agreement, Purchaser shall have the right to (i) enter into and upon the
      Property, inspect the Property and conduct tests of the Property and other
      related due diligence activities (“Due Diligence Activities”), and
      (ii) enter into and upon the Property to engage in certain pre-closing site
      work subject to and more particularly described in Section 4.05 below. Prior
      to
      conducting any Due Diligence Activities on the Property as permitted by this
      Agreement, Purchaser will (i) provide Seller an insurance certificate in
      the form attached to the Site Access Agreement as Exhibit
      “B”
      thereto
      reflecting Seller as an additional insured under the insurance policy described
      in such certificate, and (ii) provide Seller reasonable advance written
      notice of such activity, including a description of the activity and a time
      schedule for such activity. Seller reserves the right to be present for the
      purpose of observing any such Due Diligence Activities which may be conducted
      by
      or on behalf of Purchaser. In fulfilling its obligations under subpart (ii)
      of
      the prior sentence, Seller will not be required to incur or pay any third party
      costs or expenses related to preparing or processing the SDP Application.
      Purchaser, at its sole expense, will pay all third-party costs associated with
      preparing and processing the SDP Application including, without limitation,
      engaging any legal counsel, engineer, land planner, lobbyist or other consultant
      that Purchaser determines is necessary or advisable to prepare and process
      the
      SDP Application. Purchaser agrees to provide Seller copies of all third party
      studies, reports, surveys, tests and other materials generated in connection
      with Purchaser’s Due Diligence Activities (excluding attorney work product and
      attorney-client privileged information and communications) within a reasonable
      time after such materials are available to Purchaser. Notwithstanding anything
      in this Agreement or elsewhere to the contrary, all Due Diligence Activities
      shall be conducted in compliance with all applicable governmental requirements,
      rules and regulations.

     

    Purchaser
      agrees to indemnify Seller and its principals, partners and affiliates against
      and hold Seller and its principals, partners and affiliates harmless from,
      any
      claim for bodily injury or death or for damage to tangible personal property
      or
      for physical damage to the Property in any case sustained by Seller or its
      principals, partners and affiliates, and for the costs, expenses (including
      reasonable attorneys’ fees), actually incurred by Seller or its principals,
      partners and affiliates to the extent such claim, damage, loss or expense arises
      out of or results from the Due Diligence Activities conducted by or for
      Purchaser on the Property. Notwithstanding anything to the contrary in this
      Agreement, said obligation to indemnify and hold harmless Seller and its
      principals, partners and affiliates shall not exceed ONE MILLION AND NO/100
      DOLLARS ($1,000,000.00) in the aggregate; provided, however, in the event this
      Agreement terminates and under the other provisions of this Agreement the
      Earnest Money is paid to Seller, then all obligation of indemnity and hold
      harmless provided in this paragraph shall be included in and covered by the
      delivery of the Earnest Money to Seller and shall not be in addition to the
      Earnest Money. The obligations of indemnity and hold harmless set forth in
      this
      paragraph shall survive any termination of this Agreement except a termination
      of this Agreement in which the Earnest Money is paid to the Seller. In no event
      shall the indemnification and hold harmless contained in this Agreement extend
      to or cover any claim or cause of action brought against Seller (whether
      singularly or together with others) relating to or based upon an Entitlements
      Challenge or existing environmental conditions or characteristics on or of
      the
      Property, loss
      of
      profits or perceived loss of profits; reduction in value, perceived loss of
      value, or stigma of the Property; or inability to sell, lease or finance the
      Property.
      The
      indemnification obligations set forth in, and as limited by the provisions
      of,
      this paragraph are referred to as the “Due Diligence Activities
      Indemnification.”

     

      4.03 
      Development Permit Contingency.

     

      A.    
      Plat and Site Development Permit. Seller (i) has, at Seller’s sole
      cost and expense, filed a complete subdivision plat application (the “Plat
      Application”) that has been approved by Purchaser with the City of Austin and
      any other governmental authority with jurisdiction over subdivision of the
      Property pursuant to and in accordance with that certain approved Preliminary
      Plan approved by the City of Austin on August 28, 1988 under Case Number
      C8-84-102(88) (the “Preliminary Plan”), and (ii) agrees, at 

     

     

    
      
        
        

      

      
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    Purchaser’s
      sole cost and expense, to file a complete site development permit application
      that has been supplied by Purchaser and approved by Seller, which approval
      will
      not be unreasonably withheld, (the “SDP Application”) with the City of Austin
      for a site development permit for the development of the Property as “Phase I”
(herein so called) of Purchaser’s “Project” (herein so called) as shown and
      generally described on Purchaser’s conceptual plan attached hereto as Exhibit
“H” (the “Conceptual Plan”). Seller agrees to make said filing as provided
      in the subsequent portions of this paragraph, but in any event, on or before
      December 30, 2005 (December 30, 2005, being herein called the “SDP Application
      Deadline”). The Plat Application and the SDP Application must each be in
      compliance with all applicable laws, ordinances, regulations, codes, and
      restrictive covenants when submitted to the City of Austin and may not, without
      Seller’s and Purchaser’s prior written approval, request a variance from any of
      the foregoing. Purchaser will submit the SDP Application to the Seller for
      Seller’s review on or before November 25, 2005. Seller will either submit
      to Purchaser any written comments it has to the SDP Application or notify
      Purchaser in writing that Seller has approved the SDP Application within five
      (5) business days after receipt of the SDP Application. Upon the approval or
      deemed approval of the SDP Application, Seller agrees to forthwith file said
      application with the City of Austin. Seller may not make any comment to the
      SDP
      Application that is inconsistent with the Preliminary Plan or the Conceptual
      Plan. In the event that Seller fails to submit written comments or notify
      Purchaser in writing that it has approved the SDP Application within such five
      (5) business day period, then Seller will be deemed to have approved the SDP
      Application. In the event either Seller or Purchaser submits any comments to
      one
      another on the Plat Application or the SDP Application then both will work
      diligently and in good faith with one another to resolve any such comments
      so
      that the Plat Application and the SDP Application can be submitted to the City
      of Austin on or before their respective deadlines set forth above. 

     

    After
      the
      Plat Application and/or the SDP Application, as applicable, has/have been
      finalized and filed, Seller and Purchaser will diligently and in good faith
      process the Plat Application and the SDP Application simultaneously with the
      applicable governmental authorities in order to obtain a final subdivision
      plat
      of the Property (the “Plat”) that is in compliance with the Preliminary Plan and
      to obtain a site development permit for the Property (the “Site Development
      Permit”) based on the SDP Application. The period beginning on the Effective
      Date and ending on the first to occur of (i) the date of issuance of the
      Site Development Permit by the City of Austin or (ii) March 15, 2006 is
      referred to herein as the “SDP Contingency Period”; provided, however, the SDP
      Contingency Period may be extended as provided in Section 4.03.C. 

     

      B.   
      Processing Plat and SDP Applications. Purchaser and Seller each covenant
      and agree with the other that: (i) Except for the Plat Application, the SDP
      Application, the application for a Building Permit and responses to City staff
      comments in respect to them, no other applications or materials in connection
      with the Property will be submitted to the City of Austin or other governmental
      authority with jurisdiction until the same have been submitted in their entirety
      to Seller and Purchaser as the case may be and approved in writing by them
      (such
      approval not to be unreasonably withheld or delayed); (ii) Purchaser and
      Seller will use commercially reasonable efforts to obtain approval from the
      City
      of Austin of the SDP Application and the Plat Application on a timely basis
      and
      will promptly, at the expense of them, respectively, respond to any comments
      received from the City of Austin or other governmental authority with
      jurisdiction; (iii) Purchaser and Seller will deliver to the other written
      notice of the filing of any applications for governmental approvals of any
      kind
      with the City of Austin within three (3) business days after the date of any
      such filing, and Purchaser and Seller will keep the other fully informed on
      a
      timely basis of all matters which come to Purchaser’s and Seller’s attention
      with respect to the Plat Application and/or the SDP Application, or any other
      applications for governmental approvals, including, without limitation, all
      comments or responses received by them from the City of Austin or any third
      parties; and (iv) Seller will pay all expenses of any kind or nature in
      connection with the application for and/or the issuance of the Plat including,
      without limitation, all fiscal deposits that are required by applicable
      governmental authorities and all other fees or expenses incurred to process
      the
      Plat 

     

    
      
        
        

      

      
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    Application,
      and Purchaser will pay all expenses of any kind or nature in connection with
      the
      application for and/or the issuance of the Site Development Permit and/or any
      other requested governmental approvals, including, without limitation, all
      fiscal deposits that are required by applicable governmental authorities and
      all
      other fees or expenses incurred in connection with the preparation of the site
      plan and other application materials prepared in connection with the SDP
      Application, and all application fees and other fees or expenses incurred to
      process the SDP Application and/or any other requested governmental approvals.
      Seller and Purchaser will reasonably cooperate with the other in connection
      with
      the pursuit of the Plat and the Site Development Permit approval, including
      execution of the Plat Application and the final approved Plat and the SDP
      Application, provided, however, that Seller will not be required to incur any
      costs or expenses in that regard except as specifically contemplated herein
      for
      the Plat Application and will not be required to approve a Plat Application
      or a
      SDP Application that has, or could have, a material adverse effect on the
      entitlements or development rights related to the remaining property owned
      by
      Seller that is covered or included in or by the Preliminary Plan; provided,
      however that in no event shall a material adverse effect on said entitlements
      or
      development rights be deemed or construed to occur by virtue of Purchaser filing
      or prosecuting a SDP Application that would permit development of the Property
      at less than the maximum intensity of development and/or in compliance with
      water quality standards that are more stringent than as permitted or allowable
      under the Entitlements. Neither Seller nor Purchaser will unreasonably withhold
      its approval of a proposed Plat Application or SDP Application submitted for
      approval by them. If Seller or Purchaser fails to respond within five (5)
      business days after receipt of a written request for approval of either a Plat
      Application or a SDP Application, the party failing to respond will be deemed
      to
      have approved such request. Purchaser and Seller will not amend or modify the
      Plat Application or the SDP Application or any other requested governmental
      approvals in any way without prior written consent by the other of them, and
      Purchaser will not agree to any access restrictions, water detention or
      filtration improvement construction obligations, or any other agreements of
      any
      kind or nature which would be binding upon Seller or the Property, unless
      contemplated by the SDP Application approved by Seller.

     

      C.    
      Failure to Secure Plat or SDP. If either the Plat or the Site Development
      Permit have not been recorded or issued, respectively, during the SDP
      Contingency Period, then Purchaser shall have the right to terminate this
      Agreement by giving written notice of such termination to Seller on or before
      the last day of the SDP Contingency Period. If Purchaser fails to give said
      written notice of termination to Seller on or before said date, Purchaser’s
      right of termination under this paragraph C will be deemed waived. If Purchaser
      does timely terminate this Agreement pursuant to this paragraph C, and has
      complied with all of Purchaser’s obligations under this Section 4.03, then the
      Earnest Money shall be returned to Purchaser, except for $100 of independent
      consideration which will be delivered to Seller, and thereafter neither party
      shall have any further rights, remedies or obligations hereunder, except for
      the
      Post Termination Obligations which will survive such termination. In the event
      that an “Entitlements Challenge” (as defined in Section 8.02) occurs on or
      before the expiration of the SDP Contingency Period, the SDP Contingency Period
      shall be extended for the same period of time as said Entitlement Challenge
      shall prevent or delay recordation of the Plat or issuance of the Site
      Development Permit.

     

      4.04 
      Purchaser’s Post Termination Obligations. All costs and expenses related
      to Purchaser’s inspection of the Property and the preparation and processing of
      the Site Development Permit shall be paid for by Purchaser, and Purchaser agrees
      to indemnify and hold Seller harmless from and against all such costs and
      expenses. All costs and expenses related to Seller’s preparation and processing
      of the Plat shall be paid by Seller, and Seller agrees to indemnity and hold
      Purchaser harmless from and against all said costs and expenses. Purchaser
      shall
      not permit any liens, encumbrances, obligations or conditions of any kind or
      nature to attach to the Property by reason of the exercise of Purchaser’s rights
      hereunder. Purchaser agrees that if Seller or Purchaser terminates this
      Agreement under any right granted hereunder, Purchaser will: (i) restore
      the Property to substantially the same condition which existed prior to any
      inspections, tests or other activities of Purchaser thereon; (ii) indemnify
      and hold Seller harmless from

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    and
      against any and all liens by contractors, subcontractors, materialmen or
      laborers performing work or tests for Purchaser and from and against any and
      all
      claims for damages by third parties arising out of the conduct of such work
      and
      tests and/or any other activities of Purchaser or Purchaser’s employees or
      agents; (iii) pay and/or reimburse Seller for the payment of any expenses
      (including attorney fees and court costs) incurred in connection with any of
      the
      foregoing; (iv) except to the extent not already delivered to Seller
      pursuant to Section 4.03A above, deliver to Seller copies of all studies,
      reports, surveys, tests and other materials of any kind or nature obtained
      by
      Purchaser in connection with Purchaser’s feasibility study of the Property
      excepting communications under the attorney/client privilege; (v) return
      all of the Review Materials to Seller with Purchaser having the right to retain
      a copy set of the materials for its records; (vi) deliver to Seller copies
      of all documents, plans, applications and reports prepared in connection with
      the SDP Application and will assign to Seller all of Purchaser’s right, title
      and interest therein; and (vii) will pay any amounts then owing on or under
      the Due Diligence Activities Indemnification. The foregoing obligations of
      Purchaser are referred to herein collectively as the “Post Termination
      Obligations.” Notwithstanding any provision herein to the contrary, it is agreed
      and understood that a termination of this Agreement under any right granted
      hereunder shall terminate all obligations of Seller to sell the Property and
      all
      obligations of Purchaser to purchase the Property, but such termination shall
      not terminate the provisions in this Agreement relating to the Post Termination
      Obligations and the disposition of the Earnest Money. The Post Termination
      Obligations shall survive any termination of this Agreement and shall be fully
      binding upon Purchaser and enforceable by Seller until and unless Seller gives
      to Purchaser a written release which specifically references the Post
      Termination Obligations and which expressly waives or releases all claims in
      connection therewith.

     

      4.05 
      Pre-Closing Site Work. After Purchaser has secured the final approval of
      the Site Development Permit from the City of Austin and prior to Closing,
      Purchaser may, at Purchaser’s sole cost and expense, perform the preliminary
      site work identified on Exhibit “I” attached hereto (the “Preliminary
      Site Work”). Prior to the commencement of the construction of the Preliminary
      Site Work, and in any event, within ten (10) days after Purchaser provides
      Seller with a copy of the Site Development Permit issued by the City of Austin,
      Seller and Purchaser will enter into that certain preliminary site work license
      agreement in the form attached hereto and incorporated herein as Exhibit
“J” (the “Preliminary Site Work License Agreement”). The Preliminary Site
      Work must be performed in accordance with the Preliminary Site Work License
      Agreement and the Site Development Permit.

     

      4.06 
      Building Permit. Purchaser will, at Purchaser’s sole cost and expense,
      file a complete application for a building permit with the City of Austin (the
      “Building Permit Application”) for the construction of “Phase I” of Purchaser’s
“Project” as shown and generally described on the Conceptual Plan on or before
      six (6) months after the Effective Date and will, contemporaneously with the
      submittal of the Building Permit Application to the City of Austin, deliver
      a
      copy of the Building Permit Application to Seller. Purchaser agrees to use
      commercially reasonable efforts in processing said Building Permit Application
      with the City of Austin (such building permit as issued by the City of Austin
      is
      referred to as the “Building Permit”).

     

      4.07 
      Deed Restrictions, Exclusion from Commercial Owner’s Association and
      Assessments. Seller and Purchaser agree that the Property will not be made
      subject to that certain Master Declaration of Covenants, Conditions and
      Restrictions for Lantana [Commercial/Multi-Family] recorded under Document
      No.
      2000205500 of the Real Property Records of Travis County, Texas (as amended
      from
      time to time, the “Declaration”) and Seller agrees that it will not file a
      Notice of Applicability against the Property or otherwise encumber the Property
      with the Declaration. The Declaration shall not be a Permitted Exception
      hereunder. At Closing, Purchaser shall pay to Seller the sum of FIVE HUNDRED
      THOUSAND AND NO/100 DOLLARS ($500,000.00) (the “Lantana Community Contribution”)
      in cash as a lump sum, one time payment to be used by Seller, or the property
      owners association to be created pursuant to the Declaration, for maintenance,
      repair and replacement of common areas or features of the 

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    Lantana
      community and for maintenance and related obligations under the Section 10(a)
      Permit as described in Section 3.04A, above.

     

      V.

     

    Closing

     

      5.01 
      Closing Date. This transaction shall close at the Title Company’s offices
      or other location acceptable to the parties on or before the earlier to occur
      of: (i) the date which is five (5) days after the issuance of the Building
      Permit by the City of Austin; or (ii) April 14, 2006. The closing of this
      transaction is herein called “Closing,” and the date for Closing is herein
      called the “Closing Date.” The Closing Date is, however, subject to extension
      pursuant to Section 8.02 below. Seller and Purchaser acknowledge and agree
      that
      Armbrust & Brown, L.L.P. will act as the closing agent at the Closing
      pursuant to a P-22 agreement with the Title Company. 

     

      5.02 
      Seller’s Closing Obligations. At the Closing, Seller shall, at Seller’s
      sole cost and expense:

     

    
      	(i) 	
              execute
                and deliver to Purchaser a special warranty deed in the form of
                Exhibit
                “L”
                attached hereto and incorporated herein by reference with a description
                of
                the Property attached thereto as Exhibit
                “A”
                and a list of the Permitted Exceptions attached thereto as Exhibit
                “B”
                (the “Deed”);

            

    

     

    
      	(ii) 	
              execute
                and deliver to Purchaser a bill of sale and assignment in the form
                of
                Exhibit
                “M”
                attached hereto and incorporated herein by reference (the “Bill of Sale
                and Assignment”);

            

    

     

    
      	(iii) 	
              execute
                and deliver to Purchaser two (2) counterpart originals of each of
                the
                three (3) Option Agreements;

            

    

     

    
      	(iv) 	
              execute
                and deliver to Purchaser two (2) counterpart originals of the Memorandum
                of Options;

            

    

     

    
      	(v) 	
              execute
                and deliver to Purchaser two (2) counterpart originals of the Memorandum
                of Rialto Blvd. Cost Reimbursement
                Agreement;

            

    

     

    
      	(vi) 	
              cause
                Stratus Properties Inc. to execute and deliver to Purchaser an original
                counterpart of the AMD/Stratus Community Trust Agreement, as provided
                by
                Section 8.03;

            

    

     

    
      	(vii) 	
              deliver
                to Purchaser physical possession of the
                Property;

            

    

     

    
      	(viii) 	
              deliver
                evidence of Seller’s authority to act hereunder in form reasonably
                satisfactory to Purchaser and the Title Company;
                and

            

    

     

    
      	(ix) 	
              execute
                and deliver to Purchaser a “non-foreign” certificate sufficient to
                establish that withholding of tax is not required in connection with
                this
                transaction.

            

    

     

      5.03 
      Purchaser’s Closing Obligations. At the Closing, Purchaser shall, at
      Purchaser’s sole cost and expense:

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

       

    

    
      	(i) 	
              deliver
                the Purchase Price and the Lantana Community Contribution to the
                Title
                Company for disbursement in accordance with the terms and provisions
                of
                this Agreement; 

            

    

     

    
      	(ii) 	
              execute
                and deliver the Deed;

            

    

     

    
      	(iii) 	
              execute
                and deliver to Seller two (2) counterpart originals of the
                Assignment;

            

    

     

    
      	(iv) 	
              execute
                and deliver to Seller two (2) counterpart originals of each of the
                three
                (3) Option Agreements;

            

    

     

    
      	(v) 	
              execute
                and deliver to Seller two (2) counterpart originals of the Memorandum
                of
                Options;

            

    

     

    
      	(vi) 	
              execute
                and deliver to Seller two (2) counterpart originals of the Memorandum
                of
                Rialto Blvd. Cost Reimbursement Agreement;

            

    

     

    
      	(vii) 	
              cause
                Advanced Micro Devices, Inc. to execute and deliver to Seller an
                original
                of the AMD/Stratus Community Trust Agreement, as provided by
                Section 8.03; and

            

    

     

    
      	(viii) 	
              deliver
                such evidence of Purchaser’s authority to act hereunder as Seller and the
                Title Company may reasonably require for
                Closing.

            

    

     

      5.04 
      Closing Costs. Seller shall pay: (i) the fee for the recording of
      the Deed, the Memorandum of Options and the Memorandum of Rialto Blvd. Cost
      Reimbursement Agreement; (ii) one-half (1/2) of any escrow fee charged by
      the Title Company; and (iii) the basic premium for the Title Policy and any
      additional premiums charged by the Title Company to delete the exception for
      the
      rights of parties in possession. Purchaser shall pay one-half (1/2) of any
      escrow fee charged by the Title Company. If Purchaser desires to obtain any
      other special endorsements to the Title Policy, such as deletion of the survey
      exception, additional premiums therefor and related fees and other expenses
      thereto shall be paid in full by Purchaser. Each party shall be responsible
      for
      the payment of its own attorney’s fees, copying expenses, and other costs
      incurred in connection with this transaction.

     

      5.05 
      Prorations. All normally and customarily proratable items, including,
      without limitation, real estate taxes, and utility expenses shall be prorated
      as
      of the Closing Date, Seller being charged and credited for all of the same
      up to
      such date and Purchaser being charged and credited for all of the same on and
      after such date. If the actual amounts to be prorated are not known as of the
      Closing Date, the proration shall be made on the basis of the best information
      then available, and thereafter, when actual figures are received, a cash
      settlement will be made between Seller and Purchaser. Any additional ad valorem
      taxes relating to the year of Closing and/or prior years arising out of a change
      in usage or ownership of the Property (including without limitation any
“rollback” or other additional taxes payable under the terms of Section 23.46 or
      Section 23.55 of the Texas Tax Code, as amended, or any similar laws) shall
      be
      borne and paid in full by the Seller. The provisions of this Section 5.05 shall
      survive the Closing.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

      VI.

     

    Warranties;
      Condemnation; Covenants; Notices

     

      6.01 
      Warranties. Purchaser acknowledges that Purchaser has already inspected
      the Property and/or will hereafter independently cause the Property to be
      inspected on its behalf and that Purchaser has not entered into this Agreement
      based upon any representation, warranty, agreement, statement or expression
      of
      opinion by Seller or by any person or entity acting or allegedly acting for
      or
      on behalf of Seller as to the Property or the condition of the Property except
      for the Representations and Warranties (defined below), the Covenants (defined
      below) and the Entitlements Defense (defined below). Purchaser agrees that
      the
      Property is to be sold to and accepted by Purchaser at Closing, AS IS, WHERE
      IS,
      WITH ALL FAULTS, IF ANY, AND WITHOUT ANY REPRESENTATIONS OR WARRANTIES
      WHATSOEVER, EXPRESS OR IMPLIED, except for the warranty of title set out in
      the
      Deed, the Representations and Warranties, the Covenants and the Entitlements
      Defense. Seller hereby represents and warrants to Purchaser as follows, which
      representations and warranties shall be deemed made by Seller to Purchaser
      also
      as of the Closing Date (the “Representations and Warranties”) and all of which
      shall survive Closing as fully and for all purposes as if a separate written
      document were executed by Seller at Closing making the Representations and
      Warranties to Purchaser therein:

     

    
      	(i) 	
              There
                are no outstanding leases, options to purchase, rights of first refusal,
                letters of intent or rental agreements with respect to any of the
                Property.

            

    

     

    
      	(ii) 	
              The
                person or persons executing this Agreement on behalf of Seller have
                full
                power and authority to execute this Agreement, and to bind Seller
                to the
                terms hereof.

            

    

     

    
      	(iii) 	
              Seller,
                to its knowledge, has complied with all applicable laws, ordinances,
                regulations, statutes, rules and restrictions relating to the Property,
                or
                any part thereof in all material respects and Seller has received
                no
                written notice of any violation of any applicable zoning regulation,
                ordinance, or any other law, covenant, condition, or restriction
                relating
                to the Property from any governmental agency having jurisdiction
                over the
                Property, nor does Seller have any knowledge of any such material
                violation.

            

    

     

    
      	(iv) 	
              There
                are no parties other than Seller who own or hold title to any portion
                of
                the Property in undivided interests or otherwise, and no person or
                entity
                other than Purchaser has any right to acquire any interest in any
                portion
                of the Property.

            

    

     

    
      	(v) 	
              Seller
                has no knowledge of any special assessments of a governmental authority
                which have been levied against the Property, and no written notice
                of any
                special assessments of a governmental authority has been received
                by
                Seller.

            

    

     

    
      	(vi) 	
              No
                portion of the Property has been designated or assessed for “agricultural
                use” or as “qualified open space land” within the meaning of Article VIII,
                Section 1-D or Section 1-D-1 of the Texas Constitution, or the statutes
                relating thereto which are codified under the Texas Tax Code, as
                amended.

            

    

     

    
      	(vii) 	
              To
                Seller’s knowledge, no portion of the Property is currently in violation
                of or subject to any existing, pending, or threatened investigation
                or
                inquiry by any governmental authority or to any remedial obligations
                under
                any applicable laws pertaining to health or the environment, including,
                without limitation: (a) the 

            

    

     

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

      Comprehensive
        Environmental Response, Compensation, and Liability Act of
        1980, as amended by the Superfund Amendments and Reauthorization Act of 1986;
        (b) the Resource Conservation and Recovery Act of 1976, as amended; and
        (c) the Texas Water Code and the Texas Solid Waste Disposal
        Act.

       

    

    
      	(viii) 	
              To
                Seller’s knowledge, there is no asbestos located upon or within any
                portion of the Property, no portion of the Property has been used
                as a
                garbage or refuse dump site, a landfill, a waste disposal facility,
                a
                transfer station, or any other type of facility for storage, processing,
                treatment, or temporary or permanent disposal of waste materials,
                including, without limitation, solid, industrial, toxic, hazardous,
                radioactive, nuclear or putrescible waste or sewage, and there are
                no
                underground storage tanks of any kind or nature located within the
                Property.

            

    

     

    
      	(ix) 	
              To
                Seller’s knowledge, giving effect to the Section 10(a) Permit, development
                of the Property is not impacted by any habitat or potential habitat
                of any
                species of flora or fauna which is protected under any applicable
                laws
                pertaining to the protection of flora or fauna (including, without
                limitation, federal Endangered Species Act) and the anticipated use
                of the
                Property does not violate any regulations concerning endangered or
                threatened species of flora or
                fauna.

            

    

     

    
      	(x) 	
              The
                “Entitlements” (as defined in Section 8.02) are in full force and effect
                without modification and to Seller’s knowledge, the Real Property may be
                developed to the extent provided thereby.

            

    

     

    
      	 	
              (xi)
                 

            	
              No
                written notice has been received by Seller from any governmental
                agency
                asserting the invalidity of the Entitlements or its intention to
                take
                actions or to initiate proceedings for the termination or modification
                thereof.

            

    

     

    The
      obligation of Purchaser to close this transaction is contingent upon the
      continued truth and accuracy of Seller’s Representations and Warranties
      hereunder as of the Closing Date. If at the Closing any of the Representations
      or Warranties set forth herein are untrue or incorrect in any material respect,
      Purchaser shall be entitled to the remedy set forth in Section 7.01 B(i) as
      Purchaser’s sole and exclusive remedy.

     

    The
      characterization of any statement or representation in this Agreement as being
      to the knowledge of Seller or actual knowledge of Seller (or any similar words
      or phrases to that effect) means the actual knowledge of William H. Armstrong,
      III and in the event William H. Armstrong, III is no longer the Chief Executive
      Officer of Seller, his successor, and Kenneth N. Jones, Esq., General Counsel
      of
      Seller and if Kenneth N. Jones is no longer the General Counsel of Seller,
      his
      successor only, and does not mean any constructive knowledge applied to such
      individuals or to Seller as an entity.

     

      6.02 
      Condemnation. If prior to Closing, any governmental or other entity
      having condemnation authority shall institute an eminent domain proceeding
      with
      regard to the Property or any part thereof and the same is not dismissed on
      or
      before ten (10) days prior to Closing, then (i) if the proposed
      condemnation involves so much of the Property that it prevents Purchaser from
      developing the Project on the Property as generally contemplated on the
      Conceptual Plan in a commercially reasonable manner, then Purchaser shall be
      entitled either to terminate this Agreement upon written notice to Seller or
      to
      waive such right of termination and receive all condemnation proceeds, or
      (ii) if the proposed condemnation does not prevent Purchaser from
      developing the Project on the Property as described in item (i) above, then
      Purchaser will not be entitled to terminate this Agreement due to such
      condemnation but will entitled to receive all condemnation proceeds on or after
      Closing. In the event of termination of 

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    this
      Agreement pursuant to the terms hereof, the Earnest Money shall be returned
      to
      Purchaser and thereafter neither Purchaser nor Seller shall have any further
      rights or obligations hereunder except for the Post Termination Obligations
      which will expressly survive any termination of this Agreement.

     

      6.03 
      Covenants of Seller. Seller agrees that between the Effective Date of
      this Agreement and the Closing Date (collectively, the “Covenants”):
      (i) Seller will not enter into or grant any liens, easements, restrictive
      covenants or other agreements of any kind which would survive the Closing and
      which would affect title to or use or possession of the Property, without the
      prior written approval of Purchaser; (ii) Seller will not enter into any
      leases, contracts or agreements of any kind or nature relating to the Property
      which would survive the Closing, without the prior written approval of
      Purchaser; (iii) Seller will not knowingly use, occupy or knowingly allow
      the use or occupancy of the Property in any manner which violates any applicable
      laws, ordinances, rules, regulations or restrictive covenants; (iv) Seller
      will not allow or permit the introduction, spillage, release, discharge, use,
      storage or disposal of any hazardous material, hazardous waste or pollutant
      of
      any kind or nature into, onto or from the Property by Seller or any of Seller’s
      agents, contractors or representatives; and (v) Seller will immediately
      upon obtaining notice of same, notify Purchaser of any legal, political,
      governmental, or administrative proceeding or moratorium instituted or proposed
      which specifically effects the Property.

     

      VII.

     

    Remedies

     

      7.01 
      Purchaser’s Remedies. Notwithstanding any provision of this Agreement to
      the contrary other than Section 7.03 and, if applicable,
      Section 3.03:

     

      A.    
      if Seller fails or refuses to timely comply with Seller’s obligations hereunder
      and such failure continues for a period of ten (10) days after delivery of
      written notice from Purchaser to Seller specifying such failure (provided,
      however, that if such failure requires more than ten (10) days to cure, then
      such ten (10) day period will extend to thirty (30) days provided that Seller
      commences to cure such failure within such initial 10 day period and diligently
      prosecutes such cure thereafter), Purchaser may, as Purchaser’s sole and
      exclusive remedy, either: (i) terminate this Agreement by giving Seller
      timely written notice of such election prior to or at Closing, and thereupon
      this Agreement shall terminate, and Purchaser shall be entitled to an immediate
      return of the Earnest Money and Seller and Purchaser shall be relieved and
      released of all further obligations, claims and liabilities hereunder; or
      (ii) enforce specific performance of Seller’s obligations hereunder;
      or

     

      B.    
      if any of Seller’s Representations and Warranties other than
      Section 6.01(x) is untrue or is breached in any material respect and is not
      cured by Seller within ten (10) days after delivery of written notice specifying
      such breach from Purchaser to Seller (provided, however, that if such breach
      requires more than ten (10) days to cure, then such ten (10) day period will
      extend to thirty (30) days provided that Seller commences to cure such breach
      within such initial ten (10) day period and diligently prosecutes such cure
      thereafter), Purchaser may elect, as Purchaser’s sole and exclusive remedy, by
      giving Seller timely written notice of said election prior to Closing,
      either:

     

    
      	(i) 	
              to
                terminate this Agreement, whereupon within thirty (30) days after
                said
                election is made by Purchaser, Seller shall refund and pay to Purchaser
                both the Earnest Money, less the Independent Consideration, and the
                out of
                pocket costs and expenses incurred by Purchaser after the Effective
                Date
                for third party contractors, consultants and attorneys regarding
                the
                Property as evidenced by commercially reasonable supporting documentation
                provided by Purchaser; and 

            

    

     

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    upon
      making said payments to Purchaser, Seller and
      Purchaser shall be relieved and released of all further obligations, claims
      and
      liabilities hereunder, or 

     

    
      	(ii) 	
              to
                waive the Seller’s failure to cure and proceed to close this transaction
                in accordance with the other provisions of this
                Agreement.

            

    

     

      C.   
      if the Representations and Warranties set forth in Section 6.01(x) is untrue
      or
      is breached in any material respect, Purchaser may elect, as Purchaser’s sole
      and exclusive remedy, by giving Seller timely written notice of said election
      prior to Closing, either:

     

    
      	(i) 	
              to
                terminate this Agreement, whereupon within thirty (30) days after
                said
                election is made by Purchaser, Seller shall refund and pay to Purchaser
                the Earnest Money, less the Independent Consideration, and upon making
                said payment to Purchaser, Seller and Purchaser shall be relieved
                and
                released of all further obligations, claims and liabilities hereunder;
                or

            

    

     

    
      	(ii) 	
              to
                require Seller and Purchaser to follow the procedure set out in
                Section 8.02

            

    

     

      D.    
      Notwithstanding the foregoing, Purchaser may pursue all legal rights available
      at law or in equity in connection with (i) any breach of any of Seller’s
      Representations or Warranties, other than Section 6.01(x), discovered after
      Closing, and/or (ii) any of Seller’s specific indemnification obligations
      hereunder; provided, that in no event may Purchaser recover any indirect or
      consequential damages arising out of any such breach by Seller all of which
      are
      hereby waived by Purchaser. With regard to any breach of Section 6.01(x)
      discovered after Closing, Purchaser’s sole and exclusive remedy is set forth in
      Section 8.02 below. The provisions of this paragraph shall survive Closing
      and
      the delivery of the Deed fully and for all purposes as if contained in a
      separate written document signed by Seller and Purchaser at
      Closing.

     

      7.02 
      Seller’s Remedies. Notwithstanding any provision of this Agreement to the
      contrary other than Section 7.03, if Purchaser fails or refuses to timely comply
      with Purchaser’s obligations hereunder or is unable to do so as the result of
      Purchaser’s act or failure to act and any such failure (other than a failure to
      fund the Purchase Price at Closing Date) continues for a period of ten (10)
      days
      after delivery of written notice specifying such failure from Seller to
      Purchaser (provided, however, that if such failure requires more than ten (10)
      days to cure, then such ten (10) day period will extend to thirty (30) days
      provided that Purchaser commences to cure such failure within such initial
      ten
      (10) day period and diligently prosecutes such cure thereafter), Seller may
      terminate this Agreement and, as Seller’s sole and exclusive remedies: recover
      or retain the Earnest Money. It is agreed and understood that the Earnest Money
      will be delivered to Seller as liquidated damages, and not a penalty, in full
      satisfaction of all of Seller’s claims against Purchaser hereunder or pursuant
      hereto or in connection herewith. Seller and Purchaser agree that it is
      difficult to determine the actual amount of Seller’s damages arising out of
      Purchaser’s breach but said amount is a fair estimate of those damages which has
      been agreed to by the parties in a good faith effort to make the damages
      certain. If a party exercises a right of termination pursuant to the terms
      and
      provisions of this Agreement that provides for the return of the Earnest Money
      to Purchaser, then, notwithstanding the foregoing, Seller may (i) recover
      damages with respect to any failure by Purchaser to comply with Purchaser’s Post
      Termination Obligations or any other indemnification obligations of Purchaser
      hereunder, and (ii) enforce specific performance of Purchaser’s Post Termination
      Obligations. The foregoing notwithstanding, a failure by Purchaser to timely
      fund the Purchase Price on the Closing Date will be a default by Purchaser
      hereunder without a notice and cure opportunity.

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

      7.03 
      Attorney’s Fees. Notwithstanding the foregoing, in the event of any
      default by either Seller or Purchaser, the prevailing party in any dispute
      shall
      be entitled to recover from the non-prevailing party reasonable attorney’s fees,
      expenses and costs of court.

     

      VIII.

     

    Special
      Provisions

     

      8.01
      Rialto Blvd. Cost Reimbursement Agreement. Seller and Purchaser
      acknowledge and agree that Seller is constructing that certain segment of Rialto
      Blvd. pursuant to and as described in that certain site development permit
      issued by the City of Austin under Site Development Permit No. C8-84-102.8B
      (the
“Rialto Boulevard Segment”) in anticipation of the development and construction
      of Purchaser’s Project on the Property generally in accordance with the
      Conceptual Plan. Seller agrees, at Seller’s sole cost and expense, but subject
      to reimbursement as provided below, to complete construction of the Rialto
      Boulevard Segment in a good and workmanlike manner and to secure City of Austin
      approval of the construction of Rialto Boulevard (“Final Completion”) on or
      before 120 days after the Closing Date (as it may be extended hereunder).
 After Final Completion of the Rialto Boulevard Segment,
      Purchaser agrees to reimburse Seller the design, permitting and construction
      costs incurred by Seller for the Rialto Boulevard Segment attributable to the
      Property and to any Option Tracts purchased by Purchaser in accordance with
      the
      Option Agreements in the amounts, subject to the limitations and according
      to
      the terms set forth and contained in the Rialto Blvd. Cost Reimbursement
      Agreement set forth on Exhibit “N” attached hereto and incorporated
      herein for all purposes (the “Rialto Blvd. Cost Reimbursement Agreement”). As
      stated in the Rialto Blvd. Cost Reimbursement Agreement and without intention
      to
      modify the same, reimbursement amounts will be paid by Purchaser attributable
      to
      the Property and each Option Tract upon the later to occur, if ever, of (i)
      Final Completion of the Rialto Boulevard Segment, or (ii) the Closing of the
      Property and each Option Tract, as applicable. Purchaser acknowledges and agrees
      that the Rialto Blvd. Cost Reimbursement Agreement runs with the Property and
      the Option Tracts until the reimbursement is paid for a particular property.
      Accordingly, at Closing, Seller and Purchaser will execute and record a
      Memorandum of Rialto Blvd. Cost Reimbursement Agreement in the form attached
      hereto as Exhibit “O” (the “Memorandum of Rialto Blvd. Cost Reimbursement
      Agreement”) in the Official Public Records of Travis County, Texas. Seller will
      execute and record a partial release of Memorandum of Rialto Blvd. Cost
      Reimbursement Agreement for the Property or any Option Tract contemporaneously
      with the receipt of the reimbursement amount attributable to the Property or
      such Option Tract, as applicable. In the event Purchaser does not timely
      exercise the option to acquire an Option Tract, Seller shall execute and record
      a partial release of Memorandum of Rialto Blvd. Cost Reimbursement Agreement
      for
      such Option Tract. Purchaser’s and Seller’s obligations under this Section 8.01
      will survive Closing and the delivery of the Deed and will survive each closing
      under an Option Agreement.

     

      8.02
      Entitlements Defense. 

     

      A.   
      The Property is subject to those certain agreements executed by the City of
      Austin and attached hereto as Exhibit “P” establishing that the Property
      is entitled to be developed pursuant to the ordinances referenced therein (the
      “Entitlements”). Purchaser is acquiring the Property both with the understanding
      that the Property can be developed in accordance with the Entitlements and
      in
      reliance upon Seller’s representation set forth in Section 6.1(x) above. In the
      event, that a governmental authority or other third party or entity files a
      lawsuit, whether local, state or federal, challenging the applicability and/or
      enforceability of the Entitlements to the development of the Property and either
      that legally prevents or delays the issuance of the Plat, the Site Development
      Permit or the Building Permit, or that legally prevents the development of
      Phase
      I of the Project in accordance with the Plat, Site Development Permit and the
      Building Permit (an “Entitlements Challenge”) prior to the issuance of a
      certificate of 

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    occupancy
      by the City of Austin for the first building completed on the Property, then
      Seller agrees, at Seller’s sole cost and expense, to vigorously defend the
      Purchaser and the Seller against the Entitlements Challenge with reputable
      legal
      counsel chosen by Seller and reasonably acceptable to Purchaser (“Defense
      Obligations”); provided, however, that Seller will not be required to incur
      out-of-pocket costs and expenses after the Closing Date in connection with
      Defense Obligations in an amount that exceeds the sum of $500,000.00. Once
      Seller has incurred out-of-pocket Defense Obligations costs and expenses in
      the
      amount of $500,000.00 or more after the Closing Date, then Seller will no longer
      be obligated to pursue such Defense Obligations. In such an event, and provided
      that Seller determines that it is no longer going to pursue such Defense
      Obligations, then Seller will notify Purchaser of such determination in writing
      at least thirty (30) days prior to the date that Seller intends to withdraw
      from
      the Defense Obligations in order to allow Purchaser, at Purchaser’s option and
      expense, to pursue the defense of such Entitlements Challenge. Purchaser agrees
      that John J. (Mike) McKetta, III currently with the law firm of Graves,
      Dougherty, Hearon & Moody, L.L.P., along with Bruce Scrafford of Armbrust
& Brown, L.L.P., is counsel acceptable to Purchaser that may be used by
      Seller in fulfilling its defense obligations hereunder. Purchaser may, at
      Purchaser’s sole cost and expense, participate in Seller’s defense of any
      Entitlements Challenge and, at all times, Seller and Purchaser agree to
      cooperate with one another and keep each other informed as to their respective
      efforts to defend any Entitlements Challenge. In connection with the defense
      of
      any Entitlements Challenge, (i) Seller will not take a position that compromises
      the Entitlements attributable to the Property or any Option Tract that is then
      subject to an Option Agreement without the prior written consent of Purchaser,
      and (ii) Purchaser will not take a position that compromises the Entitlements
      attributable to any other property owned by Seller and covered by the
      Preliminary Plan, including, but not limited to Option Tracts that have not
      been
      acquired by Purchaser, without the prior written consent of Seller; provided,
      that Purchaser may agree to permit development of the Property at less than
      the
      maximum intensity of development and/or in compliance with water quality
      standards that are more stringent than as permitted or allowable under the
      Entitlements without violating this Section 8.02. Seller and Purchaser each
      agree to promptly notify the other in writing when it has been notified of
      a
      filed Entitlements Challenge to the Property. For purposes of determining
      whether an Entitlements Challenge has been filed before or after Closing, the
      date of the filing of the earlier to be filed of a petition setting forth the
      Entitlements Challenge and specifically referencing the Property or an
      application or administrative case asserting the Entitlements Challenge will
      be
      the date of the Entitlements Challenge.

     

      B.  
      In the event that an Entitlements Challenge is filed prior to the Closing Date
      and either the Entitlements are not upheld by the applicable court in their
      entirety prior to the Closing Date or the Entitlements Challenge is not
      otherwise resolved in a manner that upholds the Entitlements in their entirety
      prior to the Closing Date, then:

     

    
      	(i) 	
              the
                Closing Date will be automatically extended for a period of twenty-five
                (25) days and, on or before ten (10) days prior to the Closing Date
                (as so
                extended), Purchaser must elect by written notice to Seller to either
                (a)
                close the purchase of the Property pursuant to the terms of this
                Agreement
                on or before the Closing Date (as so extended), (b) terminate this
                Agreement, or (c) extend the Closing Date for a period of an additional
                three hundred sixty-five (365) days during which time Seller will
                continue
                to pursue resolution to the Entitlements Challenge. If Purchaser
                fails to
                make the election pursuant to the immediately preceding sentence,
                the
                Purchaser will be deemed to have elected to extend the Closing Date
                for a
                period of an additional three hundred sixty-five (365) days. If Purchaser
                timely elects to terminate this Agreement pursuant to the terms hereof
                then the Earnest Money shall be returned to Purchaser, except for
                $100 of
                independent consideration which will be delivered to Seller, and
                thereafter neither party shall have any further rights, remedies
                or
                obligations hereunder, 

            

    

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    except
      for the Post Termination Obligations which
      will survive such termination; and

     

    
      	(ii) 	
              if
                the Closing Date was extended for the period of three hundred sixty-five
                (365) days pursuant to subparagraph A above, then (i) in the event
                that
                the Entitlements are either upheld by the applicable court in their
                entirety prior to the Closing Date or the Entitlements Challenge
                is
                otherwise resolved in a manner that upholds the Entitlements in their
                entirety prior to the Closing Date, then Purchaser will close the
                purchase
                of the Property on the Closing Date; or (ii) in the event that the
                Entitlements are either not upheld by the applicable court in their
                entirety prior to the Closing Date or the Entitlements Challenge
                is not
                otherwise resolved in a manner that upholds the Entitlements in their
                entirety prior to the Closing Date, then the Closing Date will again
                be
                automatically extended for a period of twenty-five (25) days and,
                on or
                before ten (10) days prior to the Closing Date (as so extended),
                Purchaser
                must elect by written notice to Seller to either (a) close the
                purchase of the Property with the Purchase Price reduced to the “Reduced
                Purchase Price” (defined below) and the Lantana Community Contribution
                reduced to the “Reduced Lantana Community Contribution” (defined below)
                and otherwise pursuant to the terms of this Agreement on or before
                the
                Closing Date (as so extended), or (b) elect to terminate this Agreement.
                As used herein, the term “Reduced Purchase Price” shall mean FIFTEEN
                MILLION TWO HUNDRED THOUSAND AND NO/100 DOLLARS ($15,200,000.00).
                As used
                herein, the term “Reduced Lantana Community Contribution” shall mean FOUR
                HUNDRED THOUSAND AND NO/100 DOLLARS ($400,000.00). If Purchaser fails
                to
                deliver written notice of termination to Seller on or before Closing
                Date
                as so extended, Purchaser will be deemed to have elected to close
                the
                purchase of the Property on the Closing Date according to this Agreement
                by paying the Reduced Purchase Price and Reduced Lantana Community
                Contribution. If Purchaser timely elects to terminate this Agreement
                pursuant to the terms hereof then the Earnest Money shall be returned
                to
                Purchaser, except for $100 of independent consideration which will
                be
                delivered to Seller, and thereafter neither party shall have any
                further
                rights, remedies or obligations hereunder, except for the Post Termination
                Obligations which will survive such termination.
                

            

    

     

      C.  
      In the event that an Entitlements Challenge is filed following the Closing
      Date
      and either the Entitlements are not upheld by the applicable court in their
      entirety or the Entitlements Challenge is not otherwise resolved in a manner
      that upholds the Entitlements in their entirety, then on or before ninety (90)
      days following the final determination of said Entitlements Challenge, Seller
      shall pay and reimburse Purchaser FOUR MILLION TWO HUNDRED THOUSAND AND NO/100
      DOLLARS ($4,200,000.00) in cash, which amount equals the total by which the
      Purchase Price exceeds the Reduced Purchase Price, and the Lantana Community
      Contribution exceeds the Reduced Lantana Community Contribution.

     

      D.  
      In the event an Entitlement Challenge is filed prior to the Closing Date and
      at
      Closing, Purchaser pays the Reduced Purchase Price and the Reduced Lantana
      Community Contribution, as provided in B.(ii) B., above, and the Entitlements
      are subsequently upheld by the applicable court in their entirety or the
      Entitlement Challenge is otherwise resolved in a manner that upholds the
      Entitlements in their entirety, then within ninety (90) days following the
      final
      determination of said Entitlement Challenge, Purchaser shall pay Seller FOUR
      MILLION TWO HUNDRED THOUSAND AND NO/100 DOLLARS ($4,200,000.00) in cash, which
      amount equals the total amount by which the (i) Purchase 

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    Price
      exceeds the Reduced Purchase Price and (ii) the Lantana Community
      Contribution exceeds the Reduced Lantana Community Contribution.

     

      E.    
      The terms and provisions of this Section 8.02 will survive Closing and the
      delivery of the Deed 

     

      8.03 
      Community and Open Space Program. At Closing, Seller and Purchaser agree
      to execute the AMD/Stratus Community Trust Agreement in the form attached hereto
      as Exhibit L and made a part hereof.

     

      IX.

    Miscellaneous
      Provisions

     

      9.01 
      Entire Agreement. This Agreement contains the entire agreement of the
      parties hereto. There are no other agreements, oral or written, between the
      parties regarding the Property and this Agreement can be amended only by written
      agreement signed by the parties hereto, and by reference made a part
      hereof.

     

      9.02 
      Binding Effect. This Agreement, and the terms, covenants, and conditions
      herein contained, shall be covenants running with the land and shall inure
      to
      the benefit of and be binding upon the heirs, personal representatives,
      successors, and assigns of each of the parties hereto.

     

      9.03 
      Effective Date. The “Effective Date” of this Agreement and other similar
      references herein are deemed to refer to the date on which this Agreement has
      been fully executed, initialed, if applicable, and dated by both Seller and
      Purchaser.

     

      9.04 
      Notice. Any notice, communication, request, reply or advice (severally
      and collectively referred to as “Notice”) in this Agreement provided or
      permitted to be given, made or accepted by either party to the other must be
      in
      writing. Notice may, unless otherwise provided herein, be given or served:
      (i)
      by depositing the same in the United States Mail, certified, with return receipt
      requested, addressed to the party to be notified and with all charges prepaid;
      or (ii) by depositing the same with Federal Express or another service
      guaranteeing “next day delivery,” addressed to the party to be notified and with
      all charges prepaid; or (iii) by delivering the same to such party, or an agent
      of such party by telecopy or by hand delivery. Notice deposited in the United
      States mail in the manner hereinabove described shall be deemed given the day
      it
      is deposited with the U.S. Postal Service. Notice given in any other manner
      shall be deemed given only if and when received by the party to be notified.
      For
      the purposes of notice, the addresses of the parties shall, until changed as
      provided below, be as follows:

     

    
      
        	
                PURCHASER: 

              	
                With
                  Copy To:

              
	
                Advance
                  Micro Devices, Inc

              	
                Fulbright
                  & Jaworski, L.L.P.

              
	
                Attn:
                  Shaun Moore

              	
                Attn:
                  Robert G. Converse

              
	
                5204
                  East Ben White Blvd.

              	
                One
                  American Center

              
	
                M/S
                  562

              	
                600
                  Congress Avenue, Suite 2400

              
	
                Austin,
                  Texas 78741

              	
                Austin,
                  Texas 78701

              
	
                Telephone:
                  (512) 602-6533

              	
                Telephone:
                  (512) 474 5201

              
	
                Fax
                  No.: (512) 602-4999

              	
                Fax
                  No.: (512) 536 4598

              

      

       

      
        
          
          

        

        
          18

          
            

          

        

        
          
          

        

      

      
 

      
        	
                SELLER:

              	
                With
                  Copy To:

              
	
                Stratus
                  Properties Inc.

              	
                Armbrust
                  & Brown, L.L.P.

              
	
                Attn:
                  William H. Armstrong, III

              	
                Attn:
                  Kenneth N. Jones

              
	
                98
                  San Jacinto Blvd., Suite 220

              	
                100
                  Congress Ave., Suite 1300

              
	
                Austin,
                  Texas 78701

              	
                Austin,
                  Texas 78701

              
	
                Telephone:
                  (512) 478-5788

              	
                Telephone:
                  (512) 435-2312

              
	
                Fax
                  No.: (512) 478-6340

              	
                Fax
                  No.: (512) 435-2360

              

      

       

    

    The
      parties hereto shall have the right from time to time to change their respective
      addresses, and each shall have the right to specify as its address any other
      address within the United States of America by giving at least five (5) days
      written notice to the other party. If any date or any period provided in this
      Agreement ends on a Saturday, Sunday or legal holiday, the applicable period
      shall be extended to the first business day following such Saturday, Sunday
      or
      legal holiday.

    

      9.05 
      Real Estate Commissions. If and when the Closing occurs and Seller has
      received all funds required to be delivered to Seller under the terms hereof,
      Seller shall pay a commission at the Closing for services rendered in connection
      with this transaction in the total amount of three percent (3%) of the Purchase
      Price to Staubach Company Central Texas, L.L.C. and CB Richard Ellis to the
      extent provided for, and in accordance with, a separate agreement between
      Staubach Company Central Texas, L.L.C. and CB Richard Ellis addressing how
      such
      commission will be split between such entities, an original of which agreement
      must be provided to Seller. Purchaser understands and hereby acknowledges that
      the foregoing named broker or brokers have no authority to bind Seller to any
      warranties or representations regarding the Property, and further acknowledges
      that Purchaser has not relied upon any warranties or representations of the
      foregoing named broker or brokers in Purchaser’s decision to purchase the
      Property. Seller and Purchaser each represent and warrant to the other that
      other than as stated above, no real estate brokerage commission is payable
      to
      any person or entity in connection with this transaction, and each agrees to
      and
      does hereby indemnify and hold the other harmless against the payment of any
      commission to any person or entity claiming by, through or under Seller or
      Purchaser, as applicable. Purchaser acknowledges that Purchaser has been advised
      by the above-stated broker, to have an abstract of title on the Property
      examined by an attorney or else to acquire an owner’s policy of title insurance
      on the Property.

     

      9.06 
      Time. Time is of the essence in all things pertaining to the performance
      of this Agreement.

     

      9.07 
      Assignment. Purchaser shall have the right to transfer and assign all or
      any portion of its rights and options under this Agreement to any affiliate
      of
      Purchaser or to any other assignee or its affiliate in connection with a
      financial arrangement between said assignee or affiliate and Purchaser to enable
      the Project to be constructed, occupied and used by Purchaser. This Agreement
      may not otherwise be assigned by the Purchaser without the consent of
      Seller.

     

      9.08 
      Severability. If any provision of this Agreement is illegal, invalid, or
      unenforceable under present or future laws, then, and in that event, it is
      the
      intention of the parties hereto that the remainder of this Agreement shall
      not
      be affected thereby, and it is also the intention of the parties to this
      Agreement that in lieu of each provision of this Agreement that is illegal,
      invalid, or unenforceable, there be added as a part of this Agreement a
      provision as similar in terms to such illegal, invalid, or unenforceable
      provision as may be possible, and be legal, valid, and enforceable.

     

      9.09 
      Waiver. Any failure by a party hereto to insist, or any election by a
      party hereto not to insist, upon strict performance by the other party of any
      of
      the terms, provisions, or conditions of this 

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

    Agreement
      shall not be deemed to be a waiver thereof or of any other term, provision,
      or
      condition hereof, and such party shall have the right at any time or times
      thereafter to insist upon strict performance of any and all of the terms,
      provisions, and conditions hereof.

     

      9.10 
      Applicable Law and Venue. The construction and validity of this Agreement
      shall be governed by the laws of the State of Texas. Venue shall be in a court
      of appropriate jurisdiction in Travis County, Texas.

     

      9.10 
      Paragraph Headings. The paragraph headings contained in this Agreement
      are for convenience only and shall in no way enlarge or limit the scope or
      meaning of the various and several paragraphs hereof.

     

      9.11 
      Grammatical Construction . Wherever appropriate, the masculine gender may
      include the feminine or neuter, and the singular may include the plural, and
      vice versa.

     

      9.13 
      Waiver of Deceptive Trade Practices Act. TO THE MAXIMUM EXTENT NOT
      PROHIBITED BY LAW, PURCHASER HEREBY WAIVES ALL OF THE PROVISIONS OF THE TEXAS
      DECEPTIVE TRADE PRACTICES-CONSUMER PROTECTION ACT (THE TEXAS BUSINESS AND
      COMMERCE CODE; SECTION 17.41, ET SEQ.), SAVE AND
      EXCEPT THE PROVISIONS OF SECTION 17.555 OF THE TEXAS BUSINESS AND COMMERCE
      CODE. PURCHASER WARRANTS AND REPRESENTS TO SELLER THAT (A) PURCHASER IS NOT
      IN A
      SIGNIFICANTLY DISPARATE BARGAINING POSITION AS TO ANY PROVISION OF THIS
      AGREEMENT OR AS TO ANY MANNER CONTAINED HEREIN, (B) PURCHASER IS A SOPHISTICATED
      ENTITY AND (C) PURCHASER IS REPRESENTED BY LEGAL COUNSEL OF PURCHASER’S OWN
      CHOOSING IN SEEKING, ACQUIRING, AND PURCHASING THE PROPERTY AND IN NEGOTIATING
      THE TERMS OF THIS AGREEMENT. FURTHER, THE CONSIDERATION FOR THE PURCHASE OF
      THE
      PROPERTY IS IN EXCESS OF FIVE HUNDRED THOUSAND AND NO/100 DOLLARS ($500,000.00).
      THIS WAIVER IS MADE KNOWINGLY.

     

      9.14 
      No Recordation. Seller and Purchaser hereby acknowledge that neither this
      Agreement nor any memorandum, affidavit or other instrument evidencing this
      Agreement or relating hereto (other than the closing documents contemplated
      hereunder) shall ever be recorded in the Official Public Records of Travis
      County, Texas, or in any other public records. Should either party ever record
      or attempt to record any such instrument, then, notwithstanding any provision
      herein to the contrary, such recordation or attempted recordation shall
      constitute a default hereunder by said party.

     

      9.15 
      Confidentiality. Seller and Purchaser acknowledge that they have signed a
      Nondisclosure Agreement dated effective June 1, 2004, and that until Closing,
      said Nondisclosure Agreement shall remain applicable to this Agreement,
mutatis mutandis.

     

      9.16 
      Counterpart Execution. This Agreement may be executed in any number of
      counterparts with the same effect as if all parties hereto had signed the same
      document, and all counterparts will constitute one and the same
      agreement.

     

    
      
         

        
        

      

      
        20

        
          

        

      

      
        
        

      

    

    EXECUTED
      by the undersigned on the dates set forth hereinbelow.

     

    

     

    
      	
              SELLER:

            	
              STRATUS
                PROPERTIES OPERATING CO., L.P.,

              a
                Delaware limited liability partnership

               

              By: STRS
                L.L.C., a Delaware limited liability

              company,
                General Partner

               

              By: STRATUS
                PROPERTIES INC., a

              Delaware
                corporation, Sole Member

               

            
	 	
              By:__________________________      

              Printed
                Name:__________________     

              Title:_________________________      

              Date:_________________________      

            
	 	 
	 	 
	
              PURCHASER:

            	
              ADVANCED
                MICRO DEVICES, INC.

              a
                Delaware corporation

               

            
	 	
              By:________________________        

              Printed
                Name:________________       

              Title:_______________________        

              Date:_______________________        

            
	 	 

    

    

     

    Exhibits:

    

    “A” - Land

    “B” - Property
      Description and Definitions

    “C” - Option
      Tracts

    “D” - Option
      Agreements (“D-1,” “D-2” and “D-3”)

    “E” - Memorandum
      of Options

    “F” - Survey
      Certificate

    “G” - Section
      10(a) Restriction

    “H” - Conceptual
      Plan

    “I” - Preliminary
      Site Work

    “J” - Preliminary
      Site Work License Agreement

    “K” - Covenants

    “L” - Special
      Warranty Deed

    “M” - Bill
      of
      Sale and Assignment

    “N” - Rialto
      Blvd. Cost Reimbursement Agreement

    “O” - Memorandum
      of Rialto Blvd. Cost Reimbursement Agreement

    “P” - Entitlements

    
      
         

        
        

      

      
        21

        
          

        

      

      
        
        

      

    

     

    TITLE
      COMPANY RECEIPT

     

    Heritage
      Title Insurance Company of Austin, Inc. acknowledges receipt of this Agreement,
      executed and, if needed, initialed, by both Seller and Purchaser this _____
      day
      of _________________, 2005.

     

    HERITAGE
      TITLE INSURANCE COMPANY OF AUSTIN, INC.

    

    By:____________________________

    Printed
      Name:____________________

    Title___________________________

    

    

     

    
      
        
           

        

        
        

      

      
        22

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      “A”

     

     

    LAND

     

    

     

    

     

    
      
        
           

        

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      “B”

     

     

    PROPERTY
      DESCRIPTIONS AND DEFINITIONS

     

    1. “Plans
      and Reports”
shall
      mean and refer to all of Seller’s right, title and interest in and to all
      construction plans and specifications, engineering reports, environmental
      reports, technical reports, drawings, surveys, utility studies, and/or any
      other
      reports or data covering or relating the Real Property which are in the
      possession of Seller to the extent, and only to the extent, they relate to
      the
      Real Property.

     

    2. “Governmental
      Approvals and Permits”
shall
      mean and refer to all of Seller’s right, title and interest in and to all
      approvals, permits, licenses, and/or applications of any kind or nature which
      have been issued by or which are on file with any governmental agencies,
      departments or authorities to the extent, and only to the extent, they relate
      to
      the Real Property.

     

    3. “Utility
      Service Permits”
shall
      mean and refer to all of Seller’s right, title and interest in and to all water,
      wastewater, electric, gas, cable television, telephone, and other utility
      service rights, permits, and/or applications to the extent, and only to the
      extent, they relate to and benefit the Real Property.

     

    4. “Utility
      Service Rights”
shall
      mean and refer to all of Seller’s right, title and interest in and to all
      off-site waterlines, wastewater lines, and all other lines, facilities or
      improvements of any kind or nature to the extent, and only to the extent, they
      provide water, wastewater, electric, natural gas, cable television, telephone
      and other services to the Real Property.

     

    5. “Street
      and Drainage Rights”
shall
      mean and refer to all of Seller’s right, title and interest in and to all
      off-site street and drainage improvements of any kind or nature to the extent
      and only to the extent they provide roadway access or drainage service to the
      Real Property.

     

     

    
      
        
           

        

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      “C”

     

     

    OPTION
      TRACTS

     

    

     

    

     

    

     

    
      
        
           

        

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      “D-1”
      “D-2” and “D-3”

     

     

    OPTION
      AGREEMENTS

     

    

     

    
      
        
           

        

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      “E”

     

     

    MEMORANDUM
      OF OPTIONS

     

    

    

      
        
          
             

          

          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

     

    EXHIBIT
      “F”

     

     

    SURVEY
      CERTIFICATE

    
 

     

    
      
        
           

        

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      “G”

     

     

    SECTION
      10(a) RESTRICTION

    
 

     

    
      
        
           

        

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      “H”

     

     

    CONCEPTUAL
      PLAN

     

    
      
        
           

        

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      “I”

     

     

    PRELIMINARY
      SITE WORK

     

    
      
         

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      “J”

     

     

    PRELIMINARY
      SITE WORK LICENSE AGREEMENT

     

    
      
         

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      “K”

     

     

    COVENANTS

     

    

     

    
      
        
           

        

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      “l”

     

     

    SPECIAL
      WARRANTY DEED

     

    THE
      STATE
      OF TEXAS §

    §      KNOW
      ALL
      MEN BY THESE PRESENTS: THAT

    COUNTY
      OF
      TRAVIS  §

    

    _______________________________,
      a __________________ (“Grantor”), for and in consideration of the sum of TEN AND
      NO/100 DOLLARS ($10.00) and other good and valuable consideration to Grantor
      in
      hand paid by _____________________________, a ___________________________
      (“Grantee”), whose mailing address is ____________
      _________________________________________________________________ the receipt
      and sufficiency of which consideration is hereby acknowledged and confessed,
      has
      GRANTED, SOLD AND CONVEYED, and by these presents does GRANT, SELL AND CONVEY,
      unto Grantee, subject to all of the reservations, exceptions and other matters
      set forth or referred to herein, the following described real property, together
      with all improvements thereon and appurtenances related thereto, if any (the
      “Property”), to-wit:

     

    That
      certain real property in _______ County, Texas, which is described on
Exhibit
      “A”
      attached
      hereto and incorporated herein by reference.

     

    TO
      HAVE AND TO HOLD
      the
      Property, together with all and singular the rights and appurtenances thereto
      in
      anywise belonging unto Grantee, and Grantee’s successors or assigns, forever;
      and, subject to all of the matters set forth or referred to herein, Grantor
      does
      hereby bind itself and its successors to WARRANT AND FOREVER DEFEND all and
      singular the Property unto Grantee, Grantee’s successors and assigns, against
      every person whomsoever lawfully claiming or to claim the same, or any part
      thereof, by, through, or under Grantor, but not otherwise; provided, however
      that this conveyance is made by Grantor and accepted by Grantee subject to:
      (a)
      all of the title exceptions revealed in or by the recorded documents and other
      matters listed on Exhibit
      “B”
      attached
      hereto and incorporated herein by reference; (b) all regulations, restrictions,
      laws, statutes, ordinances, obligations or other matters which affect the
      Property and which are imposed by or exist by reason of any regulatory,
      governmental, or quasi-governmental districts, entities, agencies, authorities
      or other bodies of any kind or nature (“Governmental Authorities”); and (c) all
      standby fees, taxes and assessments by any taxing authority for the current
      and
      all subsequent years, and all liens securing the payment of any of the
      foregoing. Ad valorem taxes with respect to the Property for the current year
      have been prorated as of the date hereof. By acceptance of this deed, Grantee
      assumes and agrees to pay and indemnifies and agrees to hold Grantor harmless
      from and against all ad valorem taxes relating to the Property, for the current
      and all subsequent years.

     

    EXECUTED
      AND DELIVERED the ______ day of _____________, 2005.

     

    _____________________________________,
      a

    _________________________

    

    By:________________________

    Printed
      Name:________________

    Title:_______________________

    

    
      
         

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    RECEIVED,
      ACCEPTED AND AGREED

    TO
      BY
      GRANTEE:

    

    _____________________________  

    a
      ___________________________  

    

    By:__________________________  

    Printed
      Name:________________  

    Title:_______________________  

    

    

    

    THE
      STATE
      OF _________  §

                 
      §

    COUNTY
      OF
      ____________ §

    

    This
      instrument was acknowledged before me this ______ day of ____________, 2005,
      by
      _______________________________, __________________ of _________________
      _____________________________, a _________________________, on behalf of said
      ________________________.

     

    (SEAL)

     

     

    ______________________________________

    Notary
      Public Signature

     

    THE
      STATE
      OF _________ §

                                                                    §
      

    COUNTY
      OF
      ____________           §

    

    This
      instrument was acknowledged before me this ______ day of ____________, 2005,
      by
      _______________________________, __________________ of _________________
      _____________________________, a _________________________, on behalf of said
      ________________________.

     

    (SEAL)

     

     

    Notary
      Public Signature

     

    

     

    
      
        
           

        

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      “M”

     

     

    BILL
      OF SALE AND ASSIGNMENT

     

     

    

     

    
      
        
           

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
          

        

      

    

     

    EXHIBIT
      “N”

     

     

    RIALTO
      BLVD. COST REIMBURSEMENT AGREEMENT

     

     

    

     

    
      
        
           

        

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      “O”

     

     

    MEMORANDUM
      OF RIALTO BLVD. COST REIMBURSEMENT AGREEMENT

     

     

    

     

    
      
        
           

        

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      “P”

     

     

    ENTITLEMENTSExhibit 10.13

     

    FIRST
      AMENDMENT TO

    AGREEMENT
      OF SALE AND PURCHASE

     

    THE
      STATE
      OF TEXAS    §

    §

    COUNTY
      OF
      TRAVIS        §

     

    This
      First Amendment to Agreement of Sale and Purchase (“First Amendment”) is made by
      and between STRATUS
      PROPERTIES OPERATING CO., L.P.,
      a
      Delaware limited partnership (“Seller”), and ADVANCED
      MICRO DEVICES, INC.,
      a
      Delaware corporation (“Purchaser”), and is as follows:

     

    R
      E C I T A L S:

     

    A.  Seller
      and Purchaser entered into that one certain Agreement
      of Sale and Purchase
      dated
      effective November 23, 2005 (the “Original Agreement”), covering certain
      property in Travis County, Texas, more fully described therein.

     

    B.  Seller
      and Purchaser desire to amend the Original Agreement as set forth
      below.

     

    C.  The
      Original Agreement, as amended by this First Amendment, is referred to as the
      “Agreement.”

     

    NOW,
      THEREFORE, for good and valuable consideration, the receipt and sufficiency
      of
      which is acknowledged, Seller and Purchaser agree as follows:

     

    1.  Closing
      Date.
      Notwithstanding anything in Section 5.01 or elsewhere to the contrary, this
      transaction shall close on April 26, 2006; provided, however, that if an
      Entitlement Challenge is filed prior to April 26, 2006, the Closing Date may
      be
      extended as provided in Section 8.02.B.

     

    2.  Detention
      Pond Maintenance Indemnity.
      That
      certain Declaration
      of Easements and Restrictive Covenants Regarding the Maintenance of Detention
      Pond Facilities - The Lantana Regional Detention Pond (Williamson Creek
      Watershed),
      dated
      June 14, 2000, recorded under Document No. 2000109088 of the Official Public
      Records of Travis County, Texas (“Detention Pond Maintenance Covenant”)
      encumbers the Property. Pursuant to the Detention Pond Maintenance Covenant,
      Purchaser, as the owner of the Property, may be liable to the City for certain
      maintenance charges related to Detention Facilities, as defined and set forth
      in
      the Detention Pond Maintenance Covenant. Prior to Closing, Seller will execute
      an indemnity pursuant to which Seller will indemnify Purchaser for any
      maintenance costs charged by and owing to the City of Austin by Purchaser
      pursuant the Detention Pond Maintenance Covenant until the later to occur of
      (i) the date Seller no longer owns any property in Lantana, or
      (ii) the date which is five (5) years after Closing. In addition, at
      Closing, Seller will provide Purchaser the same indemnity issued by the Lantana
      Commercial Community, Inc. which will remain in effect in
      perpetuity.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    3.  No
      Joint Community and Open Space Program.
      Section
      8.03 and Exhibit
      “L”
      in the
      Agreement are deleted in their entirety. Stratus will publicly acknowledge
      that,
      following the recent litigation with the S.O.S. Alliance, it elected not to
      contribute $2,000,000 to the AMD/Stratus open space program and shall not object
      to Purchaser announcing publicly Seller’s election to withdraw such
      contribution.

     

    4.  Option
      Tracts - Negotiated Development Agreement.
      From
      the date of this First Amendment and continuing through November 1, 2006,
      Purchaser may pursue a negotiated development agreement (“AMD Development
      Agreement”) with the City of Austin concerning the three Option Tracts and a
      fourth tract described on Exhibit
      “A”,
      attached to this Amendment (“Tract LO4”). The three Option Tracts and Tract LO4,
      are collectively referred to as the “Four Option Tracts.” Seller consents to
      Purchaser’s attempt to negotiate an AMD Development Agreement with the City of
      Austin provided any agreement must be approved by Seller prior to execution
      by
      AMD, which approval will not be unreasonably withheld or delayed provided
      (i) the proposed agreement does not encumber or adversely impact any of
      Seller’s property other than the Four Option Tracts, (ii) does not impose
      on Seller any expense or liability, and (iii) Purchaser is unconditionally
      committed to close the purchase of the Four Option Tracts for an aggregate
      purchase price of FIFTEEN MILLION ONE HUNDRED TWENTY-FIVE THOUSAND AND NO/100
      DOLLARS ($15,125,000.00), which amount will be in addition to (a) the
      Lantana Community Contribution for each of the three Option Tracts as set forth
      in the three Option Agreements, and (b) the amounts due under Rialto
      Boulevard Cost Reimbursement Agreement for the Three Option Agreements. There
      will be no Lantana Community Contribution, Rialto Boulevard cost reimbursement,
      or similar charge for Tract LO4. Seller and Purchaser agree to work diligently
      and in good faith to document their agreement concerning the sale of the Four
      Option Tracts, including, without limitation, the mechanism for establishing
      Purchaser’s unconditional commitment to close in the event an AMD Development
      Agreement is approved by Stratus, AMD and the City. Stratus and AMD will
      complete the documentation required by this Paragraph 4 prior to Purchaser
      submitting a proposed AMD Development Agreement to Seller for Seller’s
      approval.

     

    5.  Effect
      of Amendment.
      Except
      as specifically amended by the provisions hereof, the terms and provisions
      stated in the Original Contract shall continue to govern the rights and
      obligations of the parties thereunder, and all provisions and covenants of
      the
      Original Contract, as amended hereby, shall remain in full force and effect.
      The
      terms of and provisions of the Original Contract, as amended by this First
      Amendment, are hereby ratified and confirmed, and this First Amendment and
      the
      Original Contract shall be construed as one instrument. In that regard, this
      First Amendment and the Original Contract, including all exhibits to such
      documents, constitute the entire agreement between the parties relative to
      the
      subject matter hereof and supersede all prior and contemporaneous agreements
      and
      understandings of the parties in connection therewith. In the event of any
      inconsistency, the terms and provisions of this First Amendment shall control
      over and modify the terms and provisions of the Original Contract.

     

    6.  Counterpart
      Execution.
      This
      agreement may be executed in any number of counterparts, including execution
      by
      facsimile, with the same effect as if all parties hereto had signed the same
      document, and all counterparts, either original and/or facsimile, will
      constitute one and the same agreement.

     

    
      
         

        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    EXECUTED
      to be effective the _____ day of April, 2006.

     

    SELLER:    STRATUS
      PROPERTIES OPERATING CO., L.P.,

    a
      Delaware limited liability partnership

     

    

     

    By: STRS
      L.L.C., a Delaware limited liability

     

    company,
      General Partner

     

    

     

    By: STRATUS
      PROPERTIES INC., a

     

    Delaware
      corporation, Sole Member

    
 

     

    By:________________________       

    Printed
      Name: ________________     

    Title:_______________________      

     

    Date:__________     

     

    

    

    

    PURCHASER:   ADVANCED
      MICRO DEVICES, INC.,

    a
      Delaware corporation

     

    By:________________________        

    Printed
      Name:________________    

    Title:_______________________        

     

     

    Date:___________________    

     

    

    

    Exhibit
      “A”

    to
      First Amendment:
       Description
      of Tract LO(4)

    
      
         

        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    TITLE
      COMPANY RECEIPT

     

    Heritage
      Title Insurance Company of Austin, Inc. acknowledges receipt of this Agreement,
      executed and, if needed, initialed, by both Seller and Purchaser this _____
      day
      of _________________, 2006.

     

    HERITAGE
      TITLE INSURANCE COMPANY OF AUSTIN, INC.

     

    

     

    By:_______________________________        

    Printed
      Name:_______________________       

    Title:______________________________        

     

    

    
      
        
        

      

      
        4

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