Document:

ex10_1.htm

    
      

    

    Exhibit
10.1

     

    
      Execution
Copy

    

     

    LOAN
AGREEMENT

    

    THIS LOAN AGREEMENT (this “Agreement”), dated as
of August 13, 2008, is made by and among OccuLogix, Inc. (the
“Lender”), a Delaware
corporation with its principal office located at 2600 Skymark Avenue, Building
9, Suite 201, Mississauga, Ontario, L4W 5B2, Canada, and OcuSense, Inc. (the
“Borrower”), a Delaware
corporation with its principal office located at 12707 High Bluff Drive, Suite
200, San Diego, CA  92130, United States of America.

     

    BACKGROUND

     

    A.          
 Pursuant to that certain Agreement and Plan of Merger and Reorganization,
dated as of April 22, 2008, by and among the Lender, OcuSense Acquireco, Inc.
and the Borrower, as amended by that certain Amending Agreement, dated as of
July 28, 2008, by and among the Lender, OcuSense Acquireco, Inc. and the
Borrower (as so amended, the “Merger Agreement”), the
Lender proposes to acquire the minority ownership interest in the Borrower that
the Lender does not already own.

     

    B.       
    Until the completion of the merger and the other
transactions contemplated by the Merger Agreement, it is in the best interests
of both the Lender and the Borrower for the Lender to advance a loan to the
Borrower for its general corporate purposes.

     

    C.         
  The Lender has agreed to provide such a loan to the Borrower on the
terms and conditions set forth herein.

     

    NOW,
THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement
and for other good and valuable consideration, the receipt and adequacy of which
are hereby acknowledged, the Lender and the Borrower hereby agree as
follows:

     

    ARTICLE
I

    LOAN

     

    1.1           Loan.  The
Lender hereby agrees that, concurrently with the execution and delivery of this
Agreement, and subject to the satisfaction or waiver of the closing conditions
set forth in Article V, the Lender shall advance to the Borrower a U.S. dollar
loan in the aggregate principal amount of $2,000,000 (the “Loan”).

     

    1.2           Maturity
Date.  The maturity date of the Loan (the “Maturity Date”) shall be the
270th day
following the date hereof.

     

    1.3           Interest.  From
the date hereof until repaid in full, interest shall accrue on the unpaid
principal amount outstanding hereunder on a quarterly basis, without allowance
or deduction, at a rate of 12% per annum, and shall be payable on the earliest
to occur of (i) the Maturity Date and (ii) an Event of Default (defined
below).

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    1.4           Repayment.  In
the absence of any Event of Default (defined below), on the Maturity Date, the
Borrower shall pay the Lender, in cash, the aggregate principal amount of the
Loan plus
accrued and unpaid interest thereon, calculated in accordance with Section
1.3.

     

    1.5           Use of
Proceeds.  The Borrower shall not use any proceeds of the Loan,
other than for working capital purposes, capital expenditures and other general
corporate purposes that are not otherwise prohibited or restricted by the Merger
Agreement.

     

    ARTICLE
II

    REPRESENTATIONS
AND WARRANTIES

     

    2.1           Representations and
Warranties of the Borrower.  The Borrower hereby represents and
warrants to the Lender as follows:

     

    (a)           Organization and
Qualification.  The Borrower is a corporation duly organized,
validly existing and in good standing under the laws of the State of Delaware
and has the requisite legal authority to own and use its properties and assets
and to carry on its business as currently conducted.  The Borrower is
not in violation of any of the provisions of its certificate of incorporation,
bylaws or other organizational or charter documents.  The Borrower is
duly qualified to do business and is in good standing as a foreign corporation
or other entity in each jurisdiction in which the nature of the business
conducted or property owned by the Borrower makes such qualification necessary,
except where the failure to be so qualified or in good standing, as the case may
be, would not, individually or in the aggregate, have, or reasonably be expected
to result in, a Material Adverse Effect (defined below).  In this
Agreement, “Material Adverse
Effect” means (i) a material adverse effect on the results of operations,
assets, business or financial condition of the Borrower or (ii) material and
adverse impairment of the Borrower’s ability to perform its obligations under
this Agreement, provided that the
following alone shall not be deemed, in and of itself, to constitute a Material
Adverse Effect:  changes in general economic conditions or changes
affecting the industry in which the Borrower operates generally (as opposed to
Borrower-specific changes) so long as such changes do not have a
disproportionate effect on the Borrower.

     

    (b)           Authorization;
Enforcement.  The Borrower has the requisite corporate
authority to enter into this Agreement and to carry out its obligations
hereunder.  The execution and delivery of this Agreement have been
duly authorized by all necessary corporate action on the part of the
Borrower.  This Agreement has been duly executed and delivered by the
Borrower and constitutes a legal, valid and binding obligation of the Borrower
enforceable against the Borrower in accordance with its terms, except as may be
limited by (i) applicable bankruptcy, insolvency, reorganization or other laws
of general application relating to or affecting the enforcement of creditors’
rights generally and (ii) the effect of rules of law governing the availability
of specific performance and other equitable remedies.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    (c)           No
Conflicts.  The execution and delivery by the Borrower of this
Agreement, and the performance by the Borrower of its obligations hereunder, do
not and will not (i) conflict with or violate any provision of the Borrower’s
certificate of incorporation, bylaws or other organizational or charter
documents, (ii) conflict with, or constitute a default under (or an event that,
with notice or lapse of time or both, would become a default under), or give to
others any rights of termination, amendment, acceleration or cancellation under
(with or without notice, lapse of time or both), any agreement, credit facility,
debt or other instrument evidencing a debt of the Borrower or other
understanding to which the Borrower is a party, or by which any of its
properties or assets is bound, except to the extent that such conflict or
default or termination, amendment, acceleration or cancellation right would not
reasonably be expected to have a Material Adverse Effect, or (iii) result in a
violation of any law, rule, regulation, order, judgment, injunction, decree or
other restriction of any court or governmental authority to which the Borrower
is subject, or by which any of its properties or assets is bound, except to the
extent that such violation would not reasonably be expected to have a Material
Adverse Effect.

     

    (d)           Litigation.  There
is no action, suit, claim or proceeding or, to the knowledge of the Borrower,
inquiry or investigation, before or by any court, public board, government
agency, self-regulatory organization or body pending or, to the knowledge of the
Borrower, threatened against or affecting the Borrower that would be reasonably
expected, individually or in the aggregate, to have a Material Adverse
Effect.

     

    ARTICLE
III

    NEGATIVE
PLEDGE

     

    3.1           Liens.  So
long as there shall be any indebtedness, obligations or liabilities, present or
future, absolute or contingent, matured or not, at any time owing by the
Borrower to the Lender, or remaining unpaid to the Lender, under or in
connection with this Agreement (“Outstanding Obligations”),
the Borrower will not, without the prior written consent of the Lender, create,
incur, assume or suffer to exist, or permit to be created, incurred, assumed or
suffered to exist, any Lien (defined below) upon any of its properties, assets
or revenues, whether now owned or hereafter acquired, including any of its
intellectual property or proprietary rights of any description, whether existing
on the date hereof or afterward conceived or developed.  In addition
and without limiting the generality of the foregoing, so long as there shall
exist any Outstanding Obligations, the Borrower will not, without the prior
written consent of the Lender, sign or file, or permit to be filed, under the
Uniform Commercial Code or any equivalent statute in any jurisdiction, any
financing statement that names the Borrower as debtor.  In this
Agreement, “Lien” means
any mortgage, lien, pledge, charge, hypothecation, security interest or
encumbrance of any kind, whether or not filed, recorded or otherwise perfected
under applicable law and includes any conditional sale or other title retention
agreement, any lease in the nature thereof and any option or other agreement to
sell or give a security interest, provided that, in no
event, shall an operating lease be deemed to constitute a Lien.

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    ARTICLE
IV

    COVENANTS

     

    4.1           Covenants of the
Borrower.  The Borrower hereby agrees:

     

    (a)           to
pay, whenever due, all principal, interest and other amounts outstanding under
this Agreement;

     

    (b)           to
comply with all of its obligations under this Agreement and the Merger
Agreement;

     

    (c)           to
notify the Lender promptly of (i) any breach by the Borrower of its
representations and warranties or covenants herein or in the Merger Agreement
and (ii) any Event of Default (defined below);

     

    (d)           not
to sell, lease, license or otherwise dispose of any of its properties or assets
(whether tangible or intangible), without the prior written consent of the
Lender; and

     

    (e)           to
do, or cause to be done, all things necessary or desirable to maintain the
Borrower’s existence and good standing under the laws of the State of Delaware
and the Borrower’s legal authority to own and use its properties and assets and
to carry on its business as currently conducted.

     

    ARTICLE
V

    CONDITIONS

     

    5.1           Closing Conditions in Favor of the
Lender.  The obligation of the Lender to advance the Loan to
the Borrower pursuant to Section 1.1 is subject to the satisfaction, or the
waiver by the Lender, on or prior to such advance (the “Closing”), of each of the
following conditions:

     

    (a)           Representations and
Warranties.  The representations and warranties of the Borrower
contained herein shall be true and correct as of the Closing; and

     

    (b)           Performance.  The
Borrower shall have performed, satisfied and complied with all covenants,
agreements and conditions required by this Agreement or the Merger Agreement to
be performed, satisfied or complied with by it.

     

    ARTICLE
VI

    EVENTS OF
DEFAULT

     

    6.1           Events of
Default.  The occurrence of any of the following events shall
constitute an “Event of
Default”:

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    (a)           Failure to
Pay.  The Borrower defaults in the payment, when due and
payable, of the aggregate principal amount of the Loan plus accrued and
unpaid interest thereon, calculated in accordance with Section 1.3, and such
default continues for five days or longer;

     

    (b)           Breach of Representation and
Warranty or Covenant.  Without duplication of Section 6.1(a),
the Borrower breaches, in a material respect, any representation and warranty or
covenant contained herein or in the Merger Agreement and fails to remedy such
material breach, to the satisfaction of the Lender, on or prior to the seventh
day following the earlier to occur of (i) the date on which the Lender notifies
the Borrower, in writing, of such material breach and (ii) the date on which the
Borrower becomes aware of such material breach; or

     

    (c)           Bankruptcy.  The
Borrower (i) commences a voluntary case or proceeding, (ii) consents to the
entry of an order for relief against it in an involuntary case or proceeding,
(iii) consents to the appointment of a trustee, receiver, receiver and manager,
liquidator, administrator or other similar official of it or for all or
substantially all of its properties and assets, (iv) makes a general assignment
for the benefit of its creditors, (v) consents to the filing of a petition in
bankruptcy against it or (vi) takes any comparable action, under Title 11 of the
United States Code, as such law may be supplemented or amended from time to
time, together with all rules, regulations and instruments made thereunder, or
any other similar U.S. federal or state law or foreign law (including Canadian
law) relating to bankruptcy, insolvency, winding up, administration,
receivership or other similar matters.

     

    Upon an
Event of Default, the Lender may declare the aggregate principal amount of the
Loan plus
accrued and unpaid interest thereon, calculated in accordance with Section 1.3,
to be due and payable immediately.  Without derogating from the
generality of Section 6.1(b), the Lender and the Borrower hereby acknowledge and
agree that a breach by the Borrower of any of the provisions of Section 3.1 or
Section 4.1(d) shall constitute a material breach for purposes of Section 6.1(b)
and, therefore, an Event of Default. 

     

    ARTICLE
VII

    GENERAL

     

    7.1           Amendments;
Waivers.  No provision of this Agreement may be amended or
waived except in a written instrument signed by the parties
hereto.  No waiver of any default with respect to any provision,
condition or requirement of this Agreement shall be deemed to be a continuing
waiver in the future or a waiver of any subsequent default or a waiver of any
other provision, condition or requirement hereof, nor shall any delay or
omission of any party hereto to exercise any right hereunder in any manner
impair the exercise of any such right.

     

    7.2           Notices.  Any
and all notices or other communications or deliveries required or permitted to
be provided hereunder shall be in writing and shall be deemed given and
effective on the earliest of (a) the date of transmission, if such notice
or communication is delivered via facsimile or e-mail at the facsimile number or
e-mail address referred to in this Section 7.2 prior to 6:30 p.m. (Eastern time)
on a day that is not a Saturday, a Sunday or a statutory holiday on which banks
in New York City are not open for business (a “Business Day”), (b) the
next Business Day after the date of transmission, if such notice or
communication is delivered via facsimile or e-mail at the facsimile number or
e-mail address referred to in this Section 7.2 on a day that is not a Business
Day or later than 6:30 p.m. (Eastern time) on any Business Day, (c) the
Business Day following the date of deposit with a nationally recognized
overnight courier service or (d) upon actual receipt by the party to whom
such notice is required to be given.  The addresses, facsimile numbers
and e-mail addresses for such notices and communications are those set forth on
the signature pages hereof, or such other address, facsimile number or e-mail
address as may be designated in writing hereafter, in the same manner, by the
relevant party hereto.

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    7.3           Survival.  All
representations and warranties and covenants herein shall survive the execution
and delivery of this Agreement and the advance of the Loan.

     

    7.4           Headings.  The
headings herein are for convenience only, do not constitute a part of this
Agreement and shall not be deemed to limit or affect any of the provisions
hereof.

     

    7.5           Meaning of “Including”.  The
word “including”,
whenever used in this Agreement, shall be deemed to be followed by the phrase
“without
limitation”.

     

    7.6           Entire
Agreement.  This Agreement contains the entire understanding of
the parties hereto with respect to the subject matter hereof and supersedes all
prior agreements and understandings, oral or written, with respect to such
matters, which the parties hereto acknowledge have been merged into such
agreements and exhibits.  At and after the Closing, and without
further consideration, the parties hereto will make, do and execute and deliver,
or cause to be made, done and executed and delivered, such further acts, deeds,
assurances, documents and things as may be reasonably requested by any of the
other parties hereto in order to give practical effect to the intention of the
parties hereunder.

     

    7.7           Successors and
Assigns.  This Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and permitted
assigns.  The Borrower may not assign this Agreement or any rights or
obligations hereunder without the prior written consent of the
Lender.  

     

    7.8           No Third Party
Beneficiaries.  This Agreement is intended for the benefit of
the parties hereto and their respective successors and permitted assigns and is
not for the benefit of, nor may any provision hereof be enforced by, any other
person or entity.

     

    7.9           Governing Law;
Venue.  This Agreement shall be governed by and construed in
accordance with the laws of the State of Delaware, regardless of the laws that
might otherwise govern under applicable principles of conflicts of laws
thereof.  Each of the parties hereto irrevocably consents to the
exclusive jurisdiction and venue of any court within the State of Delaware, in
connection with any matter based upon or arising out of this Agreement or the
matters contemplated herein, agrees that process may be served upon such party
in any manner authorized by the laws of the State of Delaware for such person
and waives and covenants not to assert or plead any objection which it might
otherwise have to such jurisdiction, venue and such process.

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    7.10           Waiver of Jury
Trial.  Each of the parties hereto hereby irrevocably waives
all right to trial by jury and any action, proceeding or counterclaim (whether
based on contract, tort or otherwise) arising out of, or relating to, this
Agreement or the actions of any party hereto in the negotiation, administration,
performance or enforcement hereof. 

     

    7.11           Execution.  This
Agreement may be executed by the parties hereto on separate counterparts
(including by facsimile or e-mail transmission), all of which when taken
together shall be considered one and the same agreement.  In the event
that any signature is delivered by facsimile transmission or e-mail attachment,
such signature shall create a valid and binding obligation of the party
executing (or on whose behalf such signature is executed) with the same force
and effect as if such facsimile or e-mail-attached signature page were an
original thereof.

     

    7.12           Severability.  If
any provision of this Agreement is held to be invalid or unenforceable in any
respect, the validity and enforceability of the remaining terms and provisions
of this Agreement shall not in any way be affected or impaired thereby and the
parties hereto will attempt to agree upon a valid and enforceable provision that
is a reasonable substitute therefor, and upon so agreeing, shall incorporate
such substitute provision in this Agreement.

     

    [SIGNATURE
PAGE TO FOLLOW]

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    IN WITNESS WHEREOF, the
parties hereto have caused this Agreement to be duly executed by their
respective authorized signatories as of the date first indicated
above.

     

     

    
      	 
      	
              OCCULOGIX,
      INC.

            
	 
      	 
      
	 
      	 
      
	 
      	
              By:

            	
              /s/ William G.
      Dumencu

            
	 
      	 
      	
              Name:
      William G. Dumencu

            
	 
      	 
      	
              Title:  
      Chief Financial Officer and Treasurer

            
	 
      	 
      	 
      
	 
      	
              Address for
      Notices:

            
	 
      	
              2600
      Skymark Avenue

            
	 
      	
              Building
      9, Suite 201

            
	 
      	
              Mississauga,
      Ontario

            
	 
      	
              L4W
      5B2

            
	 
      	 
      
	 
      	
              Fax
      No.:  905-602-7623

            
	 
      	
              Telephone
      No.:  905-602-0887

            
	 
      	
              E-mail:  bill.dumencu@occulogix.com

            
	 
      	 
      
	 
      	
              Attention:  William
      G. Dumencu

            
	 
      	 
      
	 
      	 
      
	 
      	
              OCUSENSE,
      INC.

            
	 
      	 
      
	 
      	 
      
	 
      	
              By:

            	
              /s/ Eric Donsky

            
	 
      	 
      	
              Name:  Eric
      Donsky

            
	 
      	 
      	
              Title:    CEO

            
	 
      	 
      
	 
      	
              Address for
      Notices:

            
	 
      	
              12707
      High Bluff Drive, Suite 200

            
	 
      	
              San
      Diego, CA  92130

            
	 
      	 
      
	 
      	
              Fax
      No.:  858-794-1493

            
	 
      	
              Telephone
      No.:  858-794-1422

            
	 
      	
              E-mail:  edonsky@tearlab.com

            
	 
      	 
      
	 
      	
              Attention:  Eric
      Donsky

            

    

    

    
8ex10_1.htm

    
      

    

    Exhibit
10.1

     

     

     

     

     

    
      
        

      

    

    
      
 

     

    INCENTIVE
STOCK OPTION AGREEMENT

    

    BETWEEN

    

    SILVERLEAF
RESORTS, INC.

    

    AND

     

    ___________________________

     

     

    
      

    

    
    

    
      

    

    
    

     

    
 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    TABLE OF
CONTENTS

    

    
      	 
      	 
      	 	 
      	
              Page

            
	 
      	 
      	 	 
      	 
      
	
              RECITALS

            	
              1

            
	
              AGREEMENT

            	
              1

            
	
              ARTICLE
      I.

            	
              1

            
	
              GRANT
      OF OPTION

            	
              1

            
	
               
      

            	
              Section
      1.1.

            	 	
              Grant
      of Option

            	
              1

            
	 
      	
              Section
      1.2.

            	 	
              Fair
      Market Value

            	
              1

            
	 
      	
              Section
      1.3.

            	 	
              Purchase
      Price

            	
              2

            
	 
      	
              Section
      1.4.

            	 	
              Time
      for Exercise

            	
              2

            
	 
      	
              Section
      1.5.

            	 	
              Partial
      Exercise

            	
              2

            
	 
      	
              Section
      1.6.

            	 	
              Fractional
      Shares

            	
              2

            
	 
      	
              Section
      1.7.

            	 	
              Method
      of Exercise

            	
              2

            
	 
      	
              Section
      1.8.

            	 	
              Termination
      of Option

            	
              3

            
	 
      	
              Section
      1.9.

            	 	
              Payment
      upon Change of Control

            	
              3

            
	
              ARTICLE
      II

            	
              4

            
	
              RESTRICTIONS
      AND LIMITATIONS

            	
              4

            
	 
      	
              Section
      2.1.

            	 	
              Limitations

            	
              4

            
	 
      	
              Section
      2.2.

            	 	
              Limitation
      on Payments

            	
              4

            
	 
      	
              Section
      2.3.

            	 	
              Effect
      on Other Agreements

            	
              4

            
	 
      	
              Section
      2.4.

            	 	
              Shares
      as Investment

            	
              4

            
	 
      	
              Section
      2.5.

            	 	
              Reclassification,
      Consolidation, or Merger

            	
              4

            
	 
      	
              Section
      2.6.

            	 	
              Limitations
      Upon Transfer of Option

            	
              4

            
	 
      	
              Section
      2.7.

            	 	
              Limitations
      Upon Transfer of Shares

            	
              5

            
	 
      	
              Section
      2.8.

            	 	
              Rights
      as Shareholder

            	
              5

            
	
              ARTICLE
      III

            	
              5

            
	
              ADMINISTRATIVE
      PROVISIONS

            	
              5

            
	 
      	
              Section
      3.1.

            	 	
              Notices

            	
              5

            
	 
      	
              Section
      3.2.

            	 	
              Binding
      Effect

            	
              5

            
	 
      	
              Section
      3.3.

            	 	
              Incentive
      Options

            	
              6

            
	 
      	
              Section
      3.4.

            	 	
              Incorporation
      of the 2008 Plan

            	
              6

            
	 
      	
              Section
      3.5.

            	 	
              Effective
      Date of Option Agreement

            	
              6

            

    

    
      
         

      

      
        i

        
          

        

      

      
         

      

    

     

    INCENTIVE
STOCK OPTION AGREEMENT

    BETWEEN

    SILVERLEAF
RESORTS, INC.

    AND

    ____________________________________

    

    

    This Incentive Stock Option Agreement
(the “Option Agreement”) is made between SILVERLEAF RESORTS, INC., a Texas
Corporation (the “Company”), and  _____________________ (“Employee”),
effective as of the date specified below.

    

    RECITALS:

    

    A.           The
Company has employed Employee and considers it desirable and in its best
interests that Employee be given an inducement to acquire a proprietary interest
in the Company and an added incentive to advance the interests of the Company in
the form of options to purchase common shares of the Company;

    

    B.           The
stock options granted hereunder are granted pursuant to the terms of the 2008
Stock Option Plan for Silverleaf Resorts, Inc., which was adopted by the
Company’s shareholders effective as of July 29, 2008 (the “2008 Plan”) and are
intended to be Incentive Options as defined in the 2008 Plan and Section 422 of
the Internal Revenue Code of 1986, as amended (the “Code”); and

    

    C.           The
stock options granted hereunder may not be exercised and the stock options will
terminate unless the 2008 Plan has been approved by the shareholders within
twelve (12) months of the date the 2008 Plan was adopted by the
Company.

    

    AGREEMENT:

    

    NOW, THEREFORE, in consideration of the
promises and the mutual agreements hereinafter contained, and for other good and
valuable consideration, the Parties agree as follows:

     

    ARTICLE
I.

    GRANT OF
OPTION

    

    Section
1.1.      Grant of
Option.  The Company
hereby grants to Employee the right and option to purchase from it, on the terms
and conditions following, all or any part of an aggregate of  One Hundred
Seventy-five Thousand (175,000) shares of the authorized $0.01 par value common
shares of the Company.

    

    Section
1.2.      Fair
Market Value.  The fair market
value of the Company's $0.01 par value common shares on the date of this Option
Agreement is ONE AND 895/1,000 DOLLARS ($1.895) per share, as determined by the
Compensation Committee of the Company's Board of Directors (the “Committee”)
pursuant to Section 7.3 of the 2008 Plan.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Section
1.3.      Purchase
Price.  The purchase
price for each share purchasable hereunder shall be ONE AND 895/1,000 DOLLARS
($1.895).

    

    Section
1.4.      Time for
Exercise.   Employee
may elect to exercise the options at the times and for the number of shares
indicated as follows:

    

    
      	
               
      

            	
              (a)

            	
              On
      or after August 14, 2009, to and including August 13, 2010, 35,000
      shares;

            

    

    

    
      	
               
      

            	
              (b)

            	
              On
      or after August 14, 2010, to and including August 13, 2011, an additional
      35,000 shares;

            

    

    

    
      	
               
      

            	
              (c)

            	
              On
      or after August 14, 2011, to and including August 13, 2012, an additional
      35,000 shares;

            

    

    

    
      	
               
      

            	
              (d)

            	
              On
      or after August 14, 2012, to and including August 13, 2013, an additional
      35,000 shares; and

            

    

    

    
      	
               
      

            	
              (e)

            	
              On
      or after August 14, 2013, but before August 14, 2018 (the “Option
      Termination Date”), an additional 35,000
shares.

            

    

    

    However, if Employee does not purchase
the full number of shares to which Employee is entitled in any period above,
Employee is permitted to purchase those remaining shares in a later period
through and including the Option Termination Date, in addition to those shares
which Employee may otherwise be entitled to purchase.

    

    Section
1.5.      Partial
Exercise.  No partial
exercise of an option may be for less than 100 full shares.

    

    Section
1.6.      Fractional
Shares.  In no event shall
the Company be required to transfer fractional shares to the
Employee.

    

    Section
1.7.      Method of
Exercise.  The option shall
be exercised by Employee as to all or part of the shares covered by the option
by giving written notice of such exercise to the Company, specifying the number
of shares to be purchased and specifying a business day not more than fifteen
(15) days from the date such notice is given, for the payment of the purchase
price against delivery of the shares being purchased.  Such notice
shall set forth a statement, if required by Section 8.8 of the 2008 Plan and
Section 2.3 of this Option Agreement, that the shares are being acquired for
investment.

    

    Subject to any applicable laws or
regulations and to the terms of Sections 8.8, 12.5, and 13.1 of the 2008 Plan,
the Company shall cause certificates for the Shares so purchased to be delivered
to Employee at the principal business office of the Company, against payment of
the full purchase price, on the date specified in the notice of exercise, such
payment to be made in cash or by certified check or by transfer and delivery of
shares of common stock of the Company as provided in Section 7.4 of the
2008 Plan.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    Section
1.8.      Termination
of Option.  The option and
all rights granted by this Option Agreement, to the extent those rights have not
been exercised, will terminate and become null and void on the sooner
of:

    

    
      	
               
      

            	
              (a)

            	
              Such
      date as is ten (10) years from the date of this Option
      Agreement;

            

    

    

    
      	
               
      

            	
              (b)

            	
              The
      Option Termination Date as defined in Section 1.4
  hereof;

            

    

    

    
      	
               
      

            	
              (c)

            	
              The
      date which is three months after the date Employee ceases to be in the
      continuous employ of the Company, if such cessation is by disability,
      retirement, or dismissal other than for cause, as defined in Section 9.4
      of the 2008 Plan, provided that in the event of Employee's cessation of
      employment under such terms, Employee may exercise such option only to the
      extent that Employee was entitled to exercise it on the date of Employee's
      cessation of employment;

            

    

    

    
      	
               
      

            	
              (d)

            	
              The
      date Employee ceases to be in the continuous employ of the Company if such
      cessation is by voluntary termination or dismissal for cause as defined in
      Sections 9.3 and 9.4 of the 2008
Plan;

            

    

    

    
      	
               
      

            	
              (e)

            	
              The
      date which is one year following the death of Employee, if Employee dies
      while employed by the Company or within the three-month period following
      the termination of such employment if such termination was by disability,
      retirement, or dismissal other than for cause.  In the event of
      Employee's death under such terms, the person or persons to whom
      Employee's rights under the option shall pass, whether by will or by the
      applicable laws of descent and distribution, may exercise such option
      pursuant to Section 8.7 of the 2008 Plan only to the extent that Employee
      was entitled to exercise it on the date of Employee's death;
      or

            

    

    

    
      	
               
      

            	
              (f)

            	
              Subject
      to payment being made by the Company under Section 1.9, the date of a
      change of control of the Company.  A “change in control” of the
      Company shall have the same meaning that such phrase has under Section
      10.2 of the 2008 Plan.

            

    

    

    For
purposes of the foregoing provisions, serving as an Employee of a subsidiary
corporation or parent corporation of the Company, as defined in the 2008 Plan,
shall be deemed to be serving as an Employee of the Company.

    

    Section
1.9.      Payment
upon Change of Control.  Provided that the
grant of this option has been approved in the manner set forth in Section 2.7
hereof, upon a change of control of the Company, the Committee, in its
discretion, may determine that each option outstanding and granted hereunder
shall terminate within a specified number of days after notice to the holder,
and such holder shall receive, with respect to each share subject to such
option, an amount of cash equal to the excess of the fair market value of such
share immediately prior to the occurrence of the change of control over the
exercise price per share of this option.  All of the provisions of
this Section shall be subject to the provisions of Section 8.10 and Article XI
of the 2008 Plan.

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    ARTICLE
II

    RESTRICTIONS AND
LIMITATIONS

    

    Section
2.1.      Limitations.  In accordance
with the terms of Section 422 of the Code, the option granted under this Option
Agreement is limited so that the aggregate fair market value of the stock which
Employee may purchase hereunder for the first time in any calendar year does not
exceed $100,000.

    

    Section
2.2.      Limitation
on Payments .  If it is
determined, in the manner provided under Article XI of the 2008 Plan, that
Article XI of the 2008 Plan applies to a payment or payments made under this
Option Agreement, then such payment or payments to the Employee shall be reduced
as provided in Article XI of the 2008 Plan.  This reduction of
payments under Article XI of the 2008 Plan is designed to result in the maximum
after tax amount for the Employee by taking into account the effect that section
4999 of the Code could have on the payment or payments.

    

    Section
2.3.      Effect on
Other Agreements.  Nothing herein
contained shall be deemed to modify the terms of any other agreement between the
Company and Employee.

    

    Section
2.4.      Shares as
Investment.  By accepting this
option and if required by the 2008 Plan, Employee acknowledges for Employee,
Employee's heirs, and legatees that any and all shares purchased under this
Option Agreement shall be acquired for investment and not for or with a view
towards distribution, and upon the transfer of any or all of the shares subject
to the option granted hereunder, Employee, or Employee's heirs or legatees
receiving such shares, shall deliver to the Company a representation in writing
that such shares are being acquired in good faith for investment and not for or
with a view towards distribution.

    

    Section
2.5.      Reclassification,
Consolidation, or Merger.  Adjustments to
the number of shares subject to this option and the option price for them shall
be proportionately adjusted, pursuant to Section 10.1 of the 2008
Plan.

    

    Section
2.6.      Limitations
Upon Transfer of Option.  During the lifetime of Employee, the
option and all rights granted in this Option Agreement shall be exercisable only
by the Employee, and except as Section 1.8(f) of this Option Agreement otherwise
provides, the option and all rights granted under this Option Agreement shall
not be transferred, assigned, pledged, or hypothecated in any way (whether by
operation of law or otherwise), and shall not be subject to execution,
attachment, or similar process. Upon any attempt to transfer, assign, pledge,
hypothecate, or otherwise dispose of such option or of such rights contrary to
the provisions in this Option Agreement, or upon the levy or any attachment or
similar process upon such option or such rights, such option and such rights
shall immediately become null and void.

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    Section
2.7.      Limitations
Upon Transfer of Shares.  No shares
acquired by Optionee pursuant to this Option Agreement shall be sold or disposed
of within six (6) months following the date of acquisition of such shares,
unless either the grant of this Incentive Option is approved by the Board of
Directors, or a committee of the Board of Directors that is composed solely of
two or more non-employee directors as defined in Rule 16b-3 of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”), or the grant of this
Incentive Option is approved or ratified, in compliance with Section 14 of the
Exchange Act, by either:  the affirmative votes of the holders of a
majority of the securities of the Company present, or represented, and entitled
to vote at a meeting duly held in accordance with the applicable laws of the
state or other jurisdiction in which the Company is incorporated, or the written
consent of the holders of a majority of the securities of the Company entitled
to vote, provided that such ratification occurs no later than the date of the
next annual meeting of the shareholders.  Any attempted sale, disposal
or transfer of such shares in violation of the foregoing restrictions on
transfer shall be without effect.  All shares transferred to Optionee
pursuant to the exercise of the option granted hereby shall be clearly marked
with the foregoing restrictions on transfer to the extent
applicable.

    

    Section
2.8.      Rights as
Shareholder.  Neither Employee
nor Employee's executor, administrator, heirs, or legatees, shall be or have any
rights or privileges of a shareholder of the Company in respect of the shares
transferable upon exercise of the option granted under this Option Agreement,
unless and until certificates representing such shares shall have been endorsed,
transferred, and delivered and the Employee, or the Employee's executor,
administrator, heirs or legatees, as the case may be, has caused his name to be
entered as the shareholder of record on the books of the Company.

    

    

    ARTICLE
III

    ADMINISTRATIVE
PROVISIONS

    

    Section
3.1.      Notices.  Any notice to be
given under the terms of this Option Agreement shall be addressed to the Parties
as follows:

    

    If to the
Company:

     

    Silverleaf
Resorts, Inc.

    
      Attn:  Robert
E. Mead, Chief Executive Officer

    

    
      1221
River Bend Drive, Suite 120

    

    
      Dallas,
Texas 75247

    

    

    If to
Employee:

     

    _______________________________

    _______________________________

    _______________________________

    

    Any Party may change its address by
giving notice in writing, stating its new address, to the other Party as
provided in the foregoing manner.  Any notice shall be deemed duly
given when enclosed in a properly sealed envelope or wrapper addressed as herein
required, certified and deposited (postage and certification fee prepaid) in a
post office or branch post office regularly maintained by the United States
Government.

    

    Section
3.2.      Binding
Effect.  This Option
Agreement shall be binding upon the heirs, executors, administrators, and
successors of the parties hereto.

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    Section
3.3.      Incentive
Options.  The options
granted hereunder are intended to be Incentive Options as defined in the 2008
Plan and Section 422 of the Code, but the Company makes no warranty as to the
qualification of any option as an Incentive Option.

    

    Section
3.4.      Incorporation
of the 2008 Plan.  The terms,
conditions and limitations contained in the 2008 Plan are incorporated herein by
reference and such provisions shall control to the extent they are not
specifically contrary to a provision of this Option Agreement.

    

    Section
3.5.      Effective
Date of Option Agreement.  This Option
Agreement is effective as of the 14th day of August, 2008.

    

    

    
      	
              DATES
      OF EXECUTION:

            	 
      	
              SILVERLEAF
      RESORTS, INC.,

            
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	______________,
      ____	 
      	
              By:  
      

            	 
      
	 
      	 
      	 
      	
              Authorized
      Officer

            
	 
      	 
      	 
      	 
      
	______________,
      ____	 
      	 
      	 
      
	 
      	 
      	
              Employee

            

    

    
    

     

    
6

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