**FIRST      SUPPLEMENT TO INDENTURE**

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|   | SILVERLEAF                FINANCE III, LLC                                                                                                                                                                               |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                     |
|   |                                                                                                                                                                                                                     |
|   | By:                /S/ HARRY J. WHITE,                JR.                                                                                     |
|   | Title:                Chief Financial Officer                                                                                                                                                                            |
|   |                                                                                                                                                                                                                     |
|   |                                                                                                                                                                                                                     |
|   |                                                                                                                                                                                                                     |
|   | SILVERLEAF                RESORTS, INC., as Servicer                                                                                                                                                                     |
|   |                                                                                                                                                                                                                     |
|   |                                                                                                                                                                                                                     |
|   | By:                /S/ HARRY J. WHITE,                JR.                                                                                          |
|   | Title:                Chief Financial Officer                                                                                                                                                                            |
|   |                                                                                                                                                                                                                     |
|   |                                                                                                                                                                                                                     |
|   |                                                                                                                                                                                                                     |
|   | WELLS                FARGO BANK, NATIONAL ASSOCIATION, in its capacity as Indenture Trustee,                Backup Servicer, Paying Agent, Custodian and Account                Intermediary                             |
|   |                                                                                                                                                                                                                     |
|   |                                                                                                                                                                                                                     |
|   | By:                /S/ SUE                DIGNAN                             |
|   | Title:                Assistant Vice President                                                                                                                                                                           |