Document:

exv10w1

 

Ex 10.1

CONTRACT OF SALE

     This Agreement is entered into by and between SILVERLEAF RESORTS, INC., a Texas
corporation (“Seller”), and CRYSTAL RIDGE, L.L.P., a New Jersey limited liability partnership
(“Purchaser”).

W I T N E S S E TH :

     FOR AND IN CONSIDERATION of the promises, undertakings, and mutual covenants of the parties
herein set forth, Seller hereby agrees to sell and Purchaser hereby agrees to purchase and pay for
all that certain property hereinafter described in accordance with the following terms and
conditions:

ARTICLE I

PROPERTY

     The conveyance by Seller to Purchaser shall include the following described tracts or parcels
of land, together with all and singular the rights and appurtenances pertaining to such land
including any right, title and interest of Seller in and to adjacent strips or gores, streets,
alleys, or rights-of-way and all rights of ingress and egress thereto:

     All those certain tracts of land located in the Townships of Butler, Dennison and Foster,
Luzerne County, Pennsylvania, commonly known as Beech Mountain Lakes, Unit II, and being more fully
described by metes and bounds in Exhibit “A” attached hereto and make a part hereof for all
purposes.

Hereafter the aforesaid real property is referred to as the “Land.”

     The conveyance by Seller to Purchaser shall also include all buildings, fixtures and other
improvements on the Land (the “Improvements”). The conveyance by Seller to Purchaser shall also
include all declarant’s rights and use rights (including any rights of Seller to use the lake
adjoining the Subject Property) under any operating agreement or reciprocal easement agreements or
other similar agreements affecting and/or benefiting the Land.

     Hereinafter all property being conveyed to Purchaser by Seller pursuant to this Contract
including the Land and the Improvements are sometimes referred to collectively as the “Subject
Property.”

CONTRACT OF SALE — Page 1

 

 

ARTICLE II

PURCHASE PRICE

     The purchase price to be paid by Purchaser to Seller for the Subject Property shall be the sum
of Seven Million Two Hundred Fifty Thousand and No/100 Dollars ($7,250,000.00). The purchase price
shall be payable all in cash at the closing.

ARTICLE III

EARNEST MONEY

     Within two (2) business days after final execution of this Contract by all parties hereto,
Purchaser shall deliver Purchaser’s check in the amount of One Hundred Thousand and No/100 Dollars
($100,000.00) to Davis R. Chant Realtors, 106 E. Harford Street, Milford, Pennsylvania 18337 (the
“Escrow Agent”). The Escrow Agent shall immediately cash the earnest money check and deposit the
proceeds thereof in an interest bearing account, the earnings from which shall accrue to the
benefit of Purchaser (hereinafter the proceeds of the earnest money check shall be referred to as
the “Earnest Money”). Notwithstanding anything to the contrary contained herein, in the event the
Earnest Money check is not deposited by Purchaser with the Escrow Agent within two (2) business
days from the date of execution of this Contract, then, at Seller’s option, this Contract shall
automatically terminate and be rendered null and void, without notice to Purchaser, upon the
expiration of such time, and the parties shall have no further obligations or liabilities one unto
the other.

     In the event that this Contract is closed, then all Earnest Money shall be applied in partial
satisfaction of the purchase price. In the event that this Contract is not closed, then the
Earnest Money shall be disbursed in the manner provided for elsewhere herein. Notwithstanding the
foregoing or anything to the contrary contained elsewhere in this Contract, it is understood and
agreed that One Hundred and no/100 Dollars ($100.00) of the Earnest Money shall in all events be
delivered to Seller as valuable consideration for the inspection period described in Article VI
hereinbelow and the execution of this Contract by the Seller.

ARTICLE IV

PRE-CLOSING OBLIGATIONS OF SELLER AND PURCHASER

     Within twenty (20) days from the date of execution of this Contract, Seller shall furnish to
Purchaser, the following information (collectively, the “Due Diligence Items”):

     a. The most recent surveys of the Subject Property in possession of Seller; Purchaser
shall be entitled to have these surveys updated and recertified as of a

CONTRACT OF SALE — Page 2

 

 

date subsequent to the date of execution of this Contract and, if Purchaser does so, shall
provide copies thereof to Seller; unless otherwise agreed by Seller and Purchaser, the metes
and bounds description contained in the surveys, as updated, shall be the legal description
employed in the documents of conveyance of the Subject Property;

     b. A current commitment (the “Title Commitment”) for the issuance of an owner’s policy
of title insurance to the Purchaser from Fidelity National Title Insurance Company (the
“Title Company”), together with good and legible copies of all documents constituting
exceptions to Seller’s title as reflected in the Title Commitment; and

     c. All information of any kind whatsoever in the possession of Seller concerning
possible development of the Subject Property including any engineering studies, soil tests,
environmental reports, and any information concerning the availability of utilities.

     EXCEPT FOR THE REPRESENTATIONS OF SELLER SET FORTH IN ARTICLE VII, SELLER MAKES NO
REPRESENTATION OR WARRANTY AS TO THE TRUTH, ACCURACY OR COMPLETENESS OF ANY MATERIALS, DATA OR
INFORMATION DELIVERED BY SELLER TO PURCHASER IN CONNECTION WITH THE TRANSACTION CONTEMPLATED
HEREBY. EXCEPT FOR THE REPRESENTATIONS OF SELLER SET FORTH IN ARTICLE VII, PURCHASER ACKNOWLEDGES
AND AGREES THAT ALL MATERIALS, DATA AND INFORMATION DELIVERED BY SELLER TO PURCHASER IN CONNECTION
WITH THE TRANSACTION CONTEMPLATED HEREBY ARE PROVIDED TO PURCHASER AS A CONVENIENCE ONLY AND THAT
ANY RELIANCE ON OR USE OF SUCH MATERIALS, DATA OR INFORMATION BY PURCHASER SHALL BE AT THE SOLE
RISK OF PURCHASER.

     In the event that Purchaser exercises any right Purchaser has hereunder to terminate this
Contract, Purchaser will promptly return all materials and information that have been previously
supplied to Purchaser by Seller pursuant to this Article IV. Notwithstanding anything to the
contrary contained herein, Seller and Purchaser hereby agree that, in the event of a termination of
this Contract by Purchaser, the Escrow Agent shall not return the earnest money to Purchaser until
Purchaser has complied with the foregoing requirement.

ARTICLE V

TITLE INSPECTION PERIOD

     Purchaser shall have a period of time commencing on the date of execution of this Contract and
expiring sixty (60) days thereafter within which to review and approve the status of Seller’s title
to the Subject Property (the “Title Review Period”). If the information to be provided to or
obtained by Purchaser pursuant to the provisions of Article IV hereinabove reflects or discloses
any defect, exception or other matter affecting the Subject Property (“Title Defects”) that is
unacceptable to Purchaser, then prior to the expiration of the Title Review Period, Purchaser shall
provide Seller with written notice of Purchaser’s objections. Seller may, at its sole option,
elect to cure or remove the objections raised by Purchaser; provided, however, that Seller shall
have no obligation to do so. Should Seller elect to attempt to cure or remove the objections,
Seller shall have ten (10) days from the date of Purchaser’s written notice of objections (the
“Cure Period”) in which to accomplish the cure. In the event Seller either elects not to cure or
remove the objections or is unable to accomplish the cure prior to the expiration of the Cure
Period, then Seller shall so notify Purchaser in writing specifying which objections

CONTRACT OF SALE — Page 3

 

 

Seller does not intend to cure, and then Purchaser shall be entitled, as Purchaser’s sole and
exclusive remedies, either to terminate this Agreement by providing written notice of termination
to Seller within ten (10) days from the date on which Purchaser receives Seller’s no-cure notice or
waive the objections and close this transaction as otherwise contemplated herein. If Purchaser
shall fail to notify Seller in writing of any objections to the state of Seller’s title to the
Subject Property as shown by the Survey and Title Commitment, then Purchaser shall be deemed to
have no objections to the state of Seller’s title to the Subject Property as shown by the Survey
and Title Commitment, and any exceptions to Seller’s title which have not been objected to by
Purchaser and which are shown on the Survey or described in the Title Commitment shall be
considered to be “Permitted Exceptions.” It is further understood and agreed that any Title
Defects which have been objected to by Purchaser and which are subsequently waived by Purchaser
shall be Permitted Exceptions.

ARTICLE VI

INSPECTION PERIOD

     Purchaser, at Purchaser’s sole expense, shall have the right to conduct a feasibility,
environmental, engineering and physical study of the Subject Property for a period of time
commencing on the date of execution of this Contract and expiring ninety (90) days thereafter (the
“Inspection Period”). Purchaser and Purchaser’s duly authorized agents or representatives shall be
permitted to enter upon the Subject Property at all reasonable times during the Inspection Period
in order to conduct engineering studies, soil tests and any other inspections and/or tests that
Purchaser may deem necessary or advisable. Purchaser further agrees to indemnify and hold Seller
harmless from any claims or damages, including reasonable attorneys’ fees, resulting from
Purchaser’s inspection of the Subject Property. In the event that the review and/or inspection
conducted by this paragraph shows any fact, matter or condition to exist with respect to the
Subject Property that is unacceptable to Purchaser, in Purchaser’s sole discretion, or in the event
that Purchaser is unable to arrange satisfactory financing for Purchaser’s acquisition of the
Subject Property, or if for any reason Purchaser determines that purchase of the Subject Property
is not feasible, then Purchaser shall be entitled, as Purchaser’s sole remedy, to cancel this
Contract by providing written notice of cancellation to Seller prior to the expiration of the
Inspection Period. If Purchaser shall provide written notice of cancellation prior to the
expiration of the Inspection Period, then this Contract shall be cancelled, all Earnest Money (less
$100.00) shall be immediately returned to Purchaser by the Escrow Agent, and thereafter neither
Seller nor Purchaser shall have any continuing obligations one unto the other. Purchaser agrees
that, having had the opportunity to inspect the Subject Property for defects and having had the
right to terminate this Contract in the event any defects are found, Purchaser will accept at
closing the Subject Property in an “as is, where is” condition, and Seller shall not be required to
give any representations or warranties at closing with respect to the condition of the Subject
Property.

CONTRACT OF SALE — Page 4

 

 

ARTICLE VII

REPRESENTATIONS, WARRANTIES, AND COVENANTS OF SELLER

     Seller represents and warrants to Purchaser that at closing Seller will have good and
marketable fee simple title to the Subject Property free and clear of all liens, encumbrances,
covenants, restrictions, rights-of-way, easements, and any other matters affecting title to the
Subject Property except for the Permitted Exceptions, and at closing, Seller will be in a position
to convey the Subject Property to Purchaser free and clear of all liens, encumbrances, covenants,
restrictions, rights-of-way, easements and other such matters affecting title except for the
Permitted Exceptions.

     Seller further covenants and agrees with Purchaser that, from the date hereof until the
closing, neither Seller nor its subsidiaries shall sell, assign, or convey any right, title, or
interest whatsoever in or to the Subject Property, or create or permit to exist any lien, security
interest, easement, encumbrance, charge, or condition affecting the Subject Property (other than
the Permitted Exceptions) without promptly discharging the same prior to closing.

     Seller hereby further represents and warrants to Purchaser, to the best of Seller’s knowledge,
as follows:

     a. There are no actions, suits, or proceedings pending or, to the best of Seller’s
knowledge, threatened against Seller or otherwise affecting any portion of the Subject
Property, at law or in equity, or before or by any federal, state, municipal, or other
governmental court, department, commission, board, bureau, agency, or instrumentality,
domestic or foreign;

     b. The execution by Seller of this Contract and the consummation by Seller of the sale
contemplated hereby have been duly authorized, and do not, and, at the closing date, will
not, result in a breach of any of the terms or provisions of, or constitute a default under
any indenture, agreement, instrument, or obligation to which Seller is a party or by which
the Subject Property or any portion thereof is bound, and do not, and at the closing date
will not, constitute a violation of any regulation affecting the Subject Property; and

     c. Seller has not received any notice of any violation of any ordinance, regulation,
law, or statute of any governmental agency pertaining to the Subject Property or any portion
thereof.

All of the foregoing representations and warranties of Seller are made by Seller both as of the
date hereof and as of the date of the closing hereunder. Notwithstanding the foregoing or anything
to the contrary contained herein, it is understood and agreed that the representations and
warranties set forth hereinabove shall survive the closing of this Contract only for a period of
six (6) months following the closing date, but not thereafter, and Seller shall have no liability
of any kind whatsoever for any breach thereof except to the extent a claim is asserted against
Seller within such six (6) month period.

CONTRACT OF SALE — Page 5

 

 

ARTICLE VIII

CLOSING

     The closing hereunder shall take place at the offices of the Title Company. The closing shall
occur on or before fifteen (15) days after the expiration of the Inspection Period. Purchaser
shall notify Seller at least five (5) days in advance of the exact time and date of closing.

ARTICLE IX

SELLER’S OBLIGATIONS AT CLOSING

     At the closing, Seller shall do the following:

     a. Deliver to Purchaser a deed covering the Subject
Property, duly signed and acknowledged by Seller,
which deed shall be in form reasonably acceptable
to Purchaser for recording and shall convey to
Purchaser good and marketable title to the Subject
Property, free and clear of all liens,
rights-of-way, easements, and other matters
affecting title to the Subject Property, except
for the Permitted Exceptions.

     b. If and to the extent necessary, deliver an assignment in a form reasonably
acceptable to Purchaser, duly executed and acknowledged by Seller, conveying and/or
assigning to Purchaser any declarant’s rights pertaining to the Subject Property;

     c. Deliver or cause to be delivered to Purchaser an ALTA owner’s form of title
insurance policy (the “Title Policy”) insuring Purchaser in the amount of the purchase price
that Purchaser has acquired good and marketable title to the Subject Property, subject only
to the Permitted Exceptions. Purchaser shall be entitled to request the Title Company to
provide, at Purchaser’s sole cost and expense, such endorsements (or amendments) to the
Title Policy as Purchaser may reasonably require so long as such endorsements or amendments
impose no additional liability on Seller or delay the closing. Purchaser acknowledges and
agrees that the Title Policy may be actually delivered within a reasonable time following
the closing so long as Purchaser has received at closing a current binding title commitment
obligating the Title Company to deliver the Title Policy. Purchaser shall pay the premium
for a standard owner’s form of title insurance policy in the amount of the purchase price;
the cost of any title endorsements required by Purchaser, and the cost of reinsurance
reasonably required by Purchaser, shall also be paid by Purchaser.

     d. Deliver a non-withholding statement that will satisfy the requirements of Section
1445 of the Internal Revenue Code so that Purchaser is not required to withhold any portion
of the purchase price for payment to the Internal Revenue Service.

     e. Provide such evidence or other documents that may be reasonably required by the
Title Company evidencing the status and capacity of Seller and the authority of the person
or persons who are executing the various documents on behalf of Seller in connection with
the sale of the Subject Property.

CONTRACT OF SALE — Page 6

 

 

ARTICLE X

PURCHASER’S OBLIGATIONS AT CLOSING

     At the closing, Purchaser shall deliver to Seller the purchase price in cash.

ARTICLE XI

COSTS AND ADJUSTMENTS

     At closing, the following items shall be adjusted or prorated between Seller and Purchaser:

     a. Any real estate transfer taxes or sales taxes payable in connection with the sale of
the Subject Property shall be divided equally between Seller and Purchaser.

     b. Ad valorem taxes for the Subject Property for the current calendar year shall be
prorated as of the date of closing, and Seller shall pay to Purchaser in cash at closing
Seller’s pro rata portion of such taxes. Seller’s pro rata portion of such taxes shall be
based upon taxes actually assessed for the current calendar year or, if for any reason such
taxes for the Subject Property have not been actually assessed, such proration shall be
based upon the amount of such taxes for the immediately preceding calendar year, and
adjusted by cash settlement when exact amounts are available. However, anything herein to
the contrary notwithstanding, any tax abatement or refund for a period of time prior to
closing shall belong to Seller.

     c. All other closing costs, including but not limited to, recording and escrow fees
shall be divided equally between Seller and Purchaser; provided, however, that Seller and
Purchaser shall each be responsible for the fees and expenses of their respective attorneys.

     Seller agrees to indemnify and hold Purchaser harmless of and from any and all liabilities,
claims, demands, suits, and judgments, of any kind or nature (except those items which under the
terms of this Contract specifically become the obligation of Purchaser), brought by third parties
and based on events occurring on or before the date of closing and which are in any way related to
the ownership, maintenance, or operation of the Subject Property, and all expenses related thereto,
including, but not limited to, court costs and attorneys’ fees.

     Purchaser agrees to indemnify and hold Seller harmless of and from any and all liabilities,
claims, demand, suits, and judgments, of any kind or nature, brought by third parties and based on
events occurring subsequent to the date of closing and which are in any way related to the
ownership, maintenance or operation of the Subject Property, and all expenses related thereto,
including, but not limited to, court costs and attorneys’ fees.

     Notwithstanding anything to the contrary contained herein, the indemnities set forth in this
Article XI shall survive the closing hereunder.

CONTRACT OF SALE — Page 7

 

 

ARTICLE XII

ENTRY ON PROPERTY

     Purchaser, Purchaser’s agents, employees, servants, or nominees, are hereby granted the right
to enter upon the Subject Property at any time prior to closing for the purpose of inspecting the
Subject Property and conducting such engineering and mechanical tests as Purchaser may deem
necessary or advisable, any such inspections and tests to be made at Purchaser’s sole expense.
Purchaser agrees to indemnify and hold Seller harmless from and against any and all losses,
damages, costs, or expenses incurred by Seller as a result of any inspections or tests made by
Purchaser.

ARTICLE XIII

POSSESSION OF PROPERTY

     Possession of the Property free and clear of all uses and encroachments, except the Permitted
Exceptions, shall be delivered to Purchaser at closing.

ARTICLE XIV

NOTICES

     All notices, demands, or other communications of any type given by the Seller to the
Purchaser, or by the Purchaser to the Seller, whether required by this Contract or in any way
related to the transaction contracted for herein, shall be void and of no effect unless given in
accordance with the provisions of this paragraph. All notices shall be in writing and delivered to
the person to whom the notice is directed, either in person, by facsimile transmission, or by
United States Mail, as a registered or certified item, return receipt requested. Notices delivered
by mail shall be deemed given when deposited in a post office or other depository under the care or
custody of the United States Postal Service, enclosed in a wrapper with proper postage affixed,
addressed as follows:

	 	 	 
	SELLER:

	 	Silverleaf Resorts, Inc.
	 

	 	1221 Riverbend Drive
	 

	 	Suite 120
	 

	 	Dallas, Texas 75247
	 

	 	Attn: Robert E. Mead
	 

	 	Telephone No.: (214) 631-1166
	 

	 	Facsimile No.: (214) 905-0514

CONTRACT OF SALE — Page 8

 

 

	 	 	 
	With Required Copy to:

	 	Meadows, Owens, Collier, Reed, Cousins & Blau, L.L.P.
	 

	 	3700 NationsBank Plaza
	 

	 	901 Main Street
	 

	 	Dallas, Texas 75202

Attn: George R. Bedell, Esq.
	 

	 	Telephone No.: (214) 749-2448
	 

	 	Facsimile No.: (214) 747-3732
	 
	 	 
	PURCHASER:

	 	Crystal Ridge L.L.P.
	 

	 	1247 Sussex Turnpike
	 

	 	Randolph, NJ 07869
	 

	 	Attn: Philip Rizzo

ARTICLE XV

REMEDIES

     In the event all conditions of this Contract are satisfied and in the event all covenants and
agreements to be performed prior to closing are fully performed, and in the event that performance
of this Contract is tendered by the Purchaser and the sale is not consummated through a default on
the part of Seller on the closing date, then Purchaser shall have the option (i) to terminate this
Contract by providing written notice thereof to Seller, in which event the Earnest Money (less
$100.00) shall be returned immediately to Purchaser and the parties hereto shall have no further
liabilities or obligations one unto the other; (ii) to waive any defect or requirement and close
this Contract; or (iii) to sue Seller for specific performance. In no event shall Purchaser have
the right to sue Seller for damages, bring any action against the Subject Property, or file a
notice of lis pendens regarding any claim of Purchaser other than a claim for specific performance.

     In the event that Purchaser fails to timely comply with all conditions, covenants, and
obligations Purchaser has hereunder, such failure shall be an event of default, and Seller’s sole
remedy shall be to receive and retain the Earnest Money. The Earnest Money is agreed upon by and
between the Seller and Purchaser as liquidated damages due to the difficulty and inconvenience of
ascertaining and measuring actual damages, and the uncertainty thereof, and no other damages,
rights, or remedies shall in any case be collectible, enforceable, or available to the Seller other
than in this paragraph defined, and Seller shall accept the Earnest Money as Seller’s total damages
and relief.

ARTICLE XVI

ASSIGNMENT

     Purchaser shall have the right to nominate who shall take title and who shall succeed to
Purchaser’s duties and obligations hereunder, or assign this Contract to any person, firm,
corporation, or other entity which Purchaser may, at Purchaser’s sole option, choose, and from and

CONTRACT OF SALE — Page 9

 

 

after such nomination or assignment, wherever in this Contract reference is made to Purchaser such
reference shall mean the nominee or assignee who shall succeed to all the rights of Purchaser
hereunder. Any such assignment shall not be effective until Seller has received written notice
thereof; further, such assignment shall not relieve Purchaser of any of its obligations or
liabilities hereunder.

ARTICLE XVII

INTERPRETATION AND APPLICABLE LAW

     This Agreement shall be construed and interpreted in accordance with the laws of the State of
Pennsylvania; provided, however, that any action against the Purchaser pursuant to this Agreement
shall be in the courts of the State of New Jersey. Where required for proper interpretation, words
in the singular shall include the plural; the masculine gender shall include the neuter and the
feminine, and vice versa. The terms “successors and assigns” shall include the heirs,
administrators, executors, successors, and assigns, as applicable, of any party hereto.

ARTICLE XVIII

AMENDMENT

     This Contract may not be modified or amended, except by an agreement in writing signed by the
Seller and the Purchaser. The parties may waive any of the conditions contained herein or any of
the obligations of the other party hereunder, but any such waiver shall be effective only if in
writing and signed by the party waiving such conditions and obligations.

ARTICLE XIX

AUTHORITY

     Each person executing this Contract warrants and represents that he is fully authorized to do
so.

ARTICLE XX

ATTORNEYS’ FEES

     In the event it becomes necessary for either party to file a suit to enforce this Contract or
any provisions contained herein, the prevailing party shall be entitled to recover, in addition to
all other remedies or damages, reasonable attorneys’ fees and costs of court incurred in such suit.

CONTRACT OF SALE — Page 10

 

 

ARTICLE XXI

DESCRIPTIVE HEADINGS

     The descriptive headings of the several paragraphs contained in this Contract are inserted for
convenience only and shall not control or affect the meaning or construction of any of the
provisions hereof.

ARTICLE XXII

ENTIRE AGREEMENT

     This Contract (and the items to be furnished in accordance herewith) constitutes the entire
agreement between the parties pertaining to the subject matter hereof and supersedes all prior and
contemporaneous agreements and understandings of the parties in connection therewith. No
representation, warranty, covenant, agreement, or condition not expressed in this Contract shall be
binding upon the parties hereto or shall affect or be effective to interpret, change, or restrict
the provisions of this Contract.

ARTICLE XXIII

MULTIPLE ORIGINALS ONLY

     Numerous copies of this Contract may be executed by the parties hereto. Each such executed
copy shall have the full force and effect of an original executed instrument.

ARTICLE XXIV

ACCEPTANCE

     Purchaser shall have until 5:00 o’clock p.m., June 10, 2005, to execute and return a fully
executed original of this Contract to Seller, otherwise this Contract shall become null and void.
Time is of the essence of this Contract. The date of execution of this Contract by Seller shall be
the date of execution of this Contract. If the final date of any period falls upon a Saturday,
Sunday, or legal holiday under the laws of the State of Pennsylvania, then in such event the
expiration date of such period shall be extended to the next day which is not a Saturday, Sunday,
or legal holiday under the laws of the Pennsylvania.

ARTICLE XXV

REAL ESTATE COMMISSION

     In the event that this Contract closes, but not otherwise, Seller agrees to pay at closing a
real estate commission to Davis R. Chant Realtors (“Broker”), the amount of such commission being
set forth in a separate agreement between Seller and Broker. Seller represents and warrants to
Purchaser that Seller has not contacted or entered into any agreement with any other real estate

CONTRACT OF SALE — Page 11

 

 

broker, agent, finder, or any other party in connection with this transaction, and that Seller has
not taken any action which would result in any other real estate broker’s, finder’s, or other fees
or commissions being due and payable to any other party with respect to the transaction
contemplated hereby. Purchaser hereby represents and warrants to Seller that Purchaser has not
contracted or entered into any agreement with any other real estate broker, agent, finder, or any
other party in connection with this transaction, and that Purchaser has not taken any action which
would result in any other real estate broker’s, finder’s, or other fees or commissions being due or
payable to any other party with respect to the transaction contemplated hereby. Each party hereby
indemnifies and agrees to hold the other party harmless from any loss, liability, damage, cost, or
expense (including reasonable attorneys’ fees) resulting to the other party by reason of a breach
of the representation and warranty made by such party herein. Notwithstanding anything to the
contrary contained herein, the indemnities set forth in this Article XXV shall survive the closing.

     EXECUTED on this the 8th day of June, 2005.

	 	 	 	 	 
	 	 	SELLER:
	 
	 	 	 	 
	 	 	SILVERLEAF RESORTS, INC.,

	 	 	a Texas corporation
	 
	 	 	 	 
	 

	 	By:
	 	/S/ HARRY J. WHITE, JR.
	 

	 	 	 	 
	 

	 	Name:
	 	Harry J. White, Jr.
	 

	 	 	 	 
	 

	 	Its:
	 	CFO
	 

	 	 	 	 

     EXECUTED on this the 8th day of June, 2005.

	 	 	 	 	 
	 	 	PURCHASER:
	 
	 	 	 	 
	 	 	CRYSTAL RIDGE, L.L.P.,
	 	 	a New Jersey limited liability partnership
	 
	 	 	 	 
	 

	 	By:
	 	/S/ PHILIP RIZZO
	 

	 	 	 	 
	 

	 	Name:
	 	Philip Rizzo
	 

	 	 	 	 
	 

	 	Its:
	 	Partner
	 

	 	 	 	 

 

 

RECEIPT OF EARNEST MONEY AND ONE (1) EXECUTED COUNTERPART OF THIS CONTRACT IS HEREBY ACKNOWLEDGED:

ESCROW AGENT:

DAVIS R. CHANT REALTORS

	 	 	 	 	 
	By:

	 	/S/ DAVIS R. CHANT
	 	 
	 

	 	 	 	 
	Name:

	 	Davis R. Chant	 	 
	 

	 	 	 	 
	Its:

	 	Agent	 	 
	 

	 	 	 	 

Exhibits attached to agreement, but not filed herewith:

Exhibit A: Legal Description of Propertyexv10w2

 

Ex. 10.2

FIRST AMENDMENT TO CONTRACT OF SALE

     THIS FIRST AMENDMENT TO CONTRACT OF SALE (“Amendment”) is made and entered into as of
August ___, 2005, by and between SILVERLEAF RESORTS, INC., a Texas corporation (“Seller”),
and CRYSTAL PENN RIDGE, L.L.P., a New Jersey limited liability partnership (“Purchaser”).

W I T N E S S E T H

     WHEREAS, on June 8, 2005, Seller and Purchaser entered into that certain Contract of Sale (the
“Contract”) pursuant to which Seller agreed to sell and Purchaser agreed to purchase
certain tracts of land owned by Seller and located in the Townships of Butler, Denison and Foster
in Luzerne County, Pennsylvania and commonly known as Beech Mountain Lakes, Unit II (the
“Subject Property”); and

     WHEREAS, Seller and Purchaser desire to modify the terms and conditions of the Contract in
certain respects;

     NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, and
other good and valuable consideration, the receipt, accuracy and sufficiency of which is hereby
acknowledged, Seller and Purchaser hereby agree as follows:

     1. Notwithstanding anything to the contrary contained in Article II of the Contract, Seller and
Purchaser hereby agree that the purchase price to be paid by Purchaser to Seller for the Subject
Property shall be reduced by $315,000 and accordingly shall be the sum of Six Million Nine Hundred
Thirty Five Thousand and no/100 Dollars ($6,935,000.00). The purchase price shall be paid all in
cash at the closing.

     Except as specifically set forth above, all terms and conditions of the Contract shall remain
in full force and effect. All capitalized terms not otherwise defined herein shall have the
meaning given to such terms in the Contract.

     IN WITNESS WHEREOF, the undersigned have executed this Amendment under seal, as of the date
and year first above written.

	 	 	 	 	 	 	 
	 	 	SELLER:
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	SILVERLEAF RESORTS, INC., a Texas corporation  
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/S/ HARRY J. WHITE, JR.	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Harry J. White, Jr.	 	 
	 

	 	 	 	 	 	 
	 

	 	Its:
	 	      CFO	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	PURCHASER:
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	CRYSTAL PENN RIDGE, L.L.P., a New Jersey limited liability

partnership
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/S/ PHILIP RIZZO	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Philip Rizzo	 	 
	 

	 	 	 	 	 	 
	 

	 	Its:
	 	Partner	 	 
	 

	 	 	 	 	 	 

1

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