Document:

<PAGE>

                                                                    Exhibit 10.7
                              [Textron Letterhead]

November 17, 2003

Silverleaf Resorts, Inc.
1221 River Bend Drive, Suite 105
Dallas, Texas  75221
Attention:  Robert E. Mead, Chief Executive Officer

Re:      $10,000,000 credit facility [Inventory Loan] (the "Loan") provided to
         Silverleaf Resorts, Inc. ("Borrower") pursuant to that certain Loan and
         Security Agreement dated as of December 16, 1999, by and among
         Silverleaf Resorts, Inc. and Textron Financial Corporation ("TFC"), a
         Delaware Corporation, as Lender, as amended by that certain First
         Amendment to Loan and Security Agreement dated as of April 17, 2001 by
         and among Textron Financial Corporation and Silverleaf Resorts, Inc.,
         by that certain Second Amendment to Loan and Security Agreement dated
         as of April 30, 2002 by and among Textron Financial Corporation and
         Silverleaf Resorts, Inc., and by those certain letter agreements dated
         March 27, 2003 and September 25, 2003 by and among Textron Financial
         Corporation and Silverleaf Resorts, Inc., as the same may hereafter be
         amended from time to time (the "Loan Agreement")

Gentlemen:

Reference is hereby made to the Loan. All capitalized terms used herein and not
otherwise defined shall have the meaning ascribed to such terms in the Loan
Agreement.

Borrower has advised TFC of the occurrence of certain events that may constitute
a Default or an Event of Default under the Loan Agreement. These Events of
Default arise from: (i) a $28,711,000 increase in Borrower's allowance for
uncollectible notes reflected in Borrower's 10-Q for the period ended March 31,
2003, which caused Borrower to violate the Interest Coverage and Profitable
Operations covenants set forth in Sections 7.1(bb)(iv) and (v) of the Loan
Agreement; and (ii) the retirement of certain subordinated debt pursuant to that
certain Note Purchase and Release Agreement with eight entities and individuals
affiliated with Harry S. Patten and James E. Lambert, which was entered into
without first obtaining the written consent of Lender and the other senior
lenders in violation of Section 7.2(f) of the Loan Agreement.

Subject to the terms of this letter agreement, TFC hereby waives any Default or
Event of Default under the Loan Documents that may have occurred or may occur
hereafter as a result of the condition described in item (i) above and/or that
may have occurred as a result of the condition described in item (ii) above on
or before the date hereof (each such waived Default and/or Event of Default a
"Waived Default" and, collectively, the "Waived Defaults").

<PAGE>

Borrower hereby acknowledges that, by its execution of this letter below, TFC is
not waiving, and that TFC has not waived: (i) any Default or any Event of
Default (other than the Waived Defaults), that may occur hereafter by reason of
any facts which exist or existed on or before the date hereof, whether or not
TFC has notice or knowledge thereof and whether or not TFC has given notice
thereof to Borrower or any of its Affiliates, (ii) any right or remedy of TFC
under any Loan Document, at law or in equity against Borrower, or (iii) any
right or remedy contained in any of the Loan Documents, at law or in equity,
other than in respect of the Waived Defaults.

No Default or Event of Default relating to the Marketing and Sales Expense
covenant as set forth in Section 7.1(bb) (ii) of the Loan Agreement has been
waived as there has been no Event of Default relating to that covenant. By
Letter Agreement dated March 27, 2003 (individually, the "March Letter
Agreement" and collectively, along with the letter agreement executed by TFC in
favor of Silverleaf on September 25, 2003, the "Letter Agreements"), TFC amended
its Loan Agreement to increase the permissible ratio of Marketing and Sales
Expenses to the Borrower's net proceeds to .550 to 1 (a ratio that has not been
exceeded by Borrower). Although the March Letter Agreement was conditioned upon
the execution of similar agreements relating to the Heller and Sovereign Bank
facilities, Borrower, by its acknowledgment of and agreement to this letter
below, has confirmed that those agreements have been obtained and that all of
the conditions of the March Letter Agreement have been satisfied.

Borrower hereby releases TFC from liability for any claim, liability, judgment,
obligation, loss, cost, damage or expense arising from, or relating to any
action taken by TFC, or any of its Affiliates and/or its officers, directors,
employees, attorneys and agents in connection with the Loan.

Furthermore, subject to the terms and conditions contained herein, TFC hereby
consents to: (i) that certain First Amendment to Amended and Restated Revolving
Credit Agreement dated as of September 30, 2002 by and among Silverleaf Resorts,
Inc., Sovereign Bank and Liberty Bank (the "Sovereign Amendment #1) a copy of
which is attached hereto as Exhibit A; (ii) that certain Second Amendment to
Amended and Restated Revolving Credit Agreement dated as of ____________ ____,
2003 by and among Silverleaf Resorts, Inc., Sovereign Bank and Liberty Bank (the
"Sovereign Amendment #2"), a copy of which is attached hereto as Exhibit B;
(iii) that certain First Amendment to Amended and Restated Receivables Loan and
Security Agreement dated as of August 6, 2002 by and among Silverleaf Finance I,
Inc., as Borrower, Silverleaf Resorts, Inc., as initial Servicer, Autobahn
Funding Company LLC, as Lender, DZ Bank AG Deutsche Zentral-Genossenschaftsban,
Frankfurt AM, MAIN, as Agent for the Lender, U.S. Bank National Association, as
Agent's Bank, and Wells Fargo Bank Minnesota, National Association, as Backup
Servicer (the "DZ Amendment #1"), a copy of which is attached hereto as Exhibit
C; (iv) that certain Second Amendment and Waiver Agreement dated as of June 19,
2003 by and among Silverleaf Finance I, Silverleaf Resorts, Inc., as Servicer,
Autobahn Funding Company LLC, as lender, DZ Bank AG Deutsche
Zentral-Genossenschaftsbank, Frankfurt Am Main, as Agent, U.S. Bank Trust
National Association, as Agent's bank, and Wells Fargo Bank Minnesota, National
Association, as Backup Servicer (the "DZ Amendment #2"), a copy of which is
attached hereto as Exhibit D; (v) that certain Fifth Amendment to Second Amended
and Restated Inventory Loan and Security Agreement and Modification of Notes
dated as of November 21, 2003 by and among Silverleaf Resorts and Heller
Financial, Inc., as lender (the

<PAGE>

"Heller Amendment #1"), a copy of which is attached hereto as Exhibit E; and
(vi) that certain Third Amendment to Amended and Restated Receivables Loan and
Security Agreement dated as of November 21, 2003 by and among Silverleaf Resorts
and Heller Financial, Inc., as Lender (the "Heller Amendment #2), a copy of
which is attached hereto as Exhibit F.

In consideration of the waivers set forth herein and in consideration of
Textron's consent to Sovereign Amendment #1, Sovereign Amendment #2, DZ
Amendment #1, DZ Amendment #2, Heller Amendment #1 and Heller Amendment #2 as
set forth herein, Borrower hereby agrees to pay to TFC, individually under the
Loan Agreement and individually and in its capacity as Agent for each of the
Lenders under the other Textron credit facilities, the sum of $50,000.00 (the
"Waiver Fee"). This Waiver Fee shall be payable in consideration not only of the
waivers and consents set forth herein but also in consideration of the same
waivers and consents being granted under the other existing Textron credit
facilities (collectively the "Textron Waivers and Consents"), it being
understood that the total amount Borrower shall be required to pay for the
Textron Waivers and Consents shall be the sum of $50,000.00.

This letter is conditioned upon and shall not be effective unless and until: (i)
similar Agreements are executed relating to the Heller, Sovereign Bank, DZ and
other Textron credit facilities; (ii) payment by the Borrower of the Waiver Fee
is received by TFC in immediately available funds; and (iii) TFC has received
evidence, in form and substance satisfactory to TFC, that the consent of each
party entitled to consent to this letter pursuant to the terms of the Sovereign
Documents, the Heller Documents and any other document evidencing any other
Indebtedness of the Borrower has been obtained.

This letter may be executed in two or more counterparts, all of which together
shall be considered a single instrument. Delivery of an executed counterpart of
a signature page to this letter by facsimile shall be effective as delivery of a
manually executed counterpart of this letter.

Except as expressly set forth herein, this letter does not constitute an
amendment or waiver of any term or condition of the Loan, the Loan Agreement or
any of the Loan Documents, and all such terms and conditions shall remain in
full force and effect. Furthermore, this letter shall not be construed as
establishing any precedent for any future request for a waiver or amendment of
any of the terms or conditions of the Loan, the Loan Agreement or any of the
Loan Documents, which TFC hereby reserves the right to enforce strictly.

This letter is also entered into with the understanding and upon the condition
that, except for the Waived Defaults, Borrower is not in default under any of
its credit facilities.

<PAGE>
Please confirm your acknowledgement of and agreement with the terms of this
letter by signing in the appropriate space below.

                                              Very truly yours,
                                              TEXTRON FINANCIAL CORPORATION,
                                              a Delaware corporation

                                                  /S/ JOHN T. D'ANNIBALE
                                              ----------------------------------
                                              By:  John T. D'Annibale
                                              Its: V.P.

The undersigned party acknowledges its agreement with the terms and conditions
of this letter:

                                              SILVERLEAF RESORTS, INC.

                                                  /S/ ROBERT E. MEAD
                                              ----------------------------------
                                              By:
                                              Its:

Exhibits:

Exhibit A:  Sovereign Amendment
Exhibit B:  Sovereign Amendment #2
Exhibit C:  DZ Amendment #1
Exhibit D:  DZ Amendment #2
Exhibit E:  Heller Amendment #1
Exhibit F:  Heller Amendment #2<PAGE>

FORMED UNDER THE LAWS OF THE                 Series F Cumulative Redeemable
    STATE OF MARYLAND                    Preferred Shares of Beneficial Interest

                                               Par Value $0.01 per share

                                               SEE REVERSE FOR IMPORTANT
                                       NOTICE ON TRANSFER RESTRICTIONS AND OTHER
                                                     INFORMATION

THIS CERTIFICATE IS TRANSFERABLE IN               CUSIP 743410 70 6
   CANTON, MA, JERSEY CITY, NJ
      AND NEW YORK CITY, NY

                                    ProLogis

This Certifies that

is the owner of

fully paid and non-assessable Preferred Shares of Beneficial Interest of
ProLogis, a real estate investment trust formed under the laws of the State of
Maryland (the "Trust") transferable only on the books of the Trust by the holder
hereof in person or by its duly authorized Attorney upon the surrender of this
Certificate properly endorsed.

The Preferred Shares evidenced by this Certificate are subject to all of the
provisions of the Declaration of Trust of the Trust, as amended from time to
time (the "Declaration of Trust"), and the Bylaws of the Trust, as amended from
time to time. The Declaration of Trust is filed and of record with the State
Department of Assessments and Taxation of Maryland and is hereby incorporated in
and made a part of this Certificate. The holder hereof has no interest, legal or
equitable, in any specific property of the Trust. This Certificate is not valid
unless countersigned by the Transfer Agent and registered by the Registrar.
Witness the facsimile seal of the Trust and the facsimile signatures of its duly
authorized officers.

Dated:
                                                 COUNTERSIGNED AND REGISTERED:
                                                  EQUISERVE TRUST COMPANY, N.A.
  CHAIRMAN AND CHIEF EXECUTIVE OFFICER             TRANSFER AGENT AND REGISTRAR

                                                 BY

                             SECRETARY                      AUTHORIZED SIGNATURE

<PAGE>
(...cont'd)

                                Important Notice
                                    ProLogis

         THE DECLARATION OF TRUST ON FILE IN THE OFFICE OF THE STATE DEPARTMENT
OF ASSESSMENTS AND TAXATION OF MARYLAND SETS FORTH A FULL STATEMENT OF THE
INFORMATION REQUIRED BY SECTION 8-203(d) OF THE CORPORATIONS AND ASSOCIATIONS
ARTICLE OF THE ANNOTATED CODE OF MARYLAND WITH RESPECT TO (A) ALL OF THE
DESIGNATIONS, PREFERENCES, CONVERSION AND OTHER RIGHTS, VOTING POWERS,
RESTRICTIONS, LIMITATIONS AS TO DIVIDENDS AND OTHER DISTRIBUTIONS,
QUALIFICATIONS, AND TERMS AND CONDITIONS OF REDEMPTION, AND OTHER RELATIVE
RIGHTS OF THE SHARES OF EACH CLASS OF SHARES AUTHORIZED TO BE ISSUED AND (B) THE
AUTHORITY OF THE BOARD OF TRUSTEES TO ISSUE ANY PREFERRED OR SPECIAL CLASS IN
SERIES, THE DIFFERENCES IN THE RELATIVE RIGHTS AND PREFERENCES BETWEEN THE
SHARES OF EACH SERIES TO THE EXTENT THEY HAVE BEEN SET AND THE AUTHORITY OF THE
BOARD OF TRUSTEES TO SET THE RELATIVE RIGHTS AND PREFERENCES OF SUBSEQUENT
SERIES OF PREFERRED SHARES, THE TRUST WILL FURNISH A COPY OF SUCH STATEMENT TO
ANY HOLDER OF SHARES WITHOUT CHARGE ON REQUEST TO THE SECRETARY OF THE TRUST AT
ITS PRINCIPAL PLACE OF BUSINESS.

         THE PREFERRED SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO
RESTRICTIONS ON OWNERSHIP AND TRANSFER FOR PURPOSES OF THE TRUST'S MAINTENANCE
OF ITS STATUS AS A REAL ESTATE INVESTMENT TRUST UNDER THE INTERNAL REVENUE CODE
OF 1986, AS AMENDED, AS SET FORTH IN THE DECLARATION OF TRUST, A COPY OF WHICH,
INCLUDING THE RESTRICTIONS ON OWNERSHIP AND TRANSFER, WILL BE FURNISHED TO EACH
SHAREHOLDER ON REQUEST AND WITHOUT CHARGE.

         The following abbreviations, when used in the inscription on the face
of this certificate, shall be construed as though they were written out in full
according to applicable laws or regulations:

<Table>
<S>                 <C>                                 <C>
          TEN COM   - as tenants in common              UNIF GIFT MIN ACT-
          TEN ENT   - as tenants by the entireties                        -------------------------------------
          JT TEN    - as joint tenants with the right                       (Cust)                   (Minor)
                      of survivorship and not as                            under Uniform Gifts to Minor Act
                      tenants in common
                                                                          -------------------------------------
                                                                                          (State)

                                                        UNIF TRF MIN ACT- -------------------------------------
                                                                            (Cust)                   (Minor)
                                                                            (until age____) under Uniform
                                                                            Transfers to Minors Act

                                                                          -------------------------------------
                                                                                          (State)
</Table>

     Additional abbreviations may also be used though not in the above list.

         For Value Received, ____________________________________ hereby sell,
assign and transfer unto

PLEASE INSERT SOCIAL SECURITY OR OTHER
     IDENTIFYING NUMBER OF ASSIGNEE

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
   (PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS INCLUDING ZIP CODE OF ASSIGNEE)

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

------------------------- Series F Cumulative Redeemable Preferred Shares
represented by the within Certificate, and do herby irrevocably constitute and
appoint
        ------------------------------------------------------------------------

---------------------------------------------------------------------- Attorney
to transfer the said shares on the books of the within named Trust with full
power of substitution in the premises.

Dated
      -------------------------

                                    --------------------------------------------
                                    Notice: The signature to this assignment
                                    must correspond with the name as written
                                    upon the face of the Certificate in every
                                    particular, without alteration or
                                    enlargement or any change whatever.

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