Document:

ex10_1.htm

    
      

    

    
      Ex.
10.1

      

      AMENDED
AND RESTATED EMPLOYMENT AGREEMENT

      WITH SILVERLEAF RESORTS,
INC.

      

      

      THIS
AMENDED AND RESTATED EMPLOYMENT AGREEMENT (the “Agreement”) is made between
SILVERLEAF RESORTS, INC., a Texas corporation (“Silverleaf”), and ROBERT E. MEAD
(the “Employee”).

      

      

      R E C I T A L S:

      

      
        	
                 
      

              	
                A.

              	
                Employee
      is a key executive officer and employee of
  Silverleaf;

              

      

      

      

      
        	
                 
      

              	
                B.

              	
                Employee
      is currently employed by Silverleaf under an Amended, Extended and
      Restated Employment Agreement dated effective January 1, 2006 (the
      “Existing Agreement”) which has a Term ending December 31, 2008;
      and

              

      

      

      

      
        	
                 
      

              	
                C.

              	
                Silverleaf
      and Employee now desire to amend the Existing Agreement as set forth
      herein.

              

      

      

      

      NOW,
THEREFORE, in consideration of the premises and terms hereinafter set forth, the
Existing Agreement is hereby amended, extended and restated as
follows:

      

      

      A G R E E M E N T:

      

      

      Section
1.              Employment.  Employee's
employment with Silverleaf as Chief Executive Officer is hereby continued,
effective as of the Effective Date until December 31, 2008 (the “Term”), unless
sooner terminated pursuant to the termination provisions of this
Agreement.  Employee may not engage in other employment while he or
she is in the employ of Silverleaf pursuant to this Agreement.

       

       

      Section
2.              Duties.  Employee agrees
to devote such time, attention and energies as are necessary to fulfill his or
her duties as reasonably specified by the Board of Directors of Silverleaf from
time to time for an employee of Employee’s position.  Employee further
agrees that he or she will promote the best interests and welfare of Silverleaf
and shall perform any and all duties to the best of his or her
abilities.  The Employee shall:

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      (a)      
     Non-Competition:  Not render to
others, during his or her employment with Silverleaf, service of any kind for
compensation or promote, participate or engage in any other business activity
which would conflict or interfere with the performance of his or her duties or
loyalty under this Agreement, including, but not limited to, participating in
the promotion or sale of products or services for a competitor of Silverleaf or
otherwise engage in business with such competitor;

      

      (b)        
   Regulatory
Laws:  Abide by all
applicable statutes, rules and regulations of each jurisdiction in which the
Company does business, including but not limited to all rules and regulations of
the Securities & Exchange Commission (“SEC”); and

      

      (c)            Silverleaf
Rules:  Abide by all
rules, regulations, and policies issued by Silverleaf, which are pertinent to
Employee's duties and obligations.

      
         

        
           

          Section
3.               Compensation.  As the
compensation (“Compensation”) for the services rendered pursuant to this
Agreement:

        

         

        (a)        
   Base
Compensation:  Silverleaf shall
pay Employee base compensation computed at the annual rate of Nine Hundred
Twenty-Five Thousand and No/100 Dollars ($925,000.00), payable in semi-monthly
payments on the 15th day and the last day of each month.

      

      

      (b)           
Other
Plans:  Employee shall be
entitled to participate in any bonus, incentive, stock option or other
compensation plans of Silverleaf only to the extent the Compensation Committee
and/or the Board of Directors of Silverleaf may deem appropriate from time to
time.

      

      (c)        
   Vehicle
Expenses:  Silverleaf shall
pay all reasonable expenses associated with the Company's use of Employee's
vehicle.

      

      (d)        
   Fringe
Benefits:  Silverleaf shall
provide Employee health insurance under its group plans, as they may exist from
time to time.  The cost of any coverage of any of the Employee's
family members under Silverleaf's group plan shall be paid by the
Employee.  The Employee shall also be entitled to such vacation time,
sick leave and other fringe benefits as may be specified by the Board of
Directors of Silverleaf from time to time for its executive
personnel.

      

      (e)        
   Use of
Company Airplane: Employee shall be entitled to the charter-free use
of Silverleaf’s airplane for personal purposes up to a maximum of fifty (50)
hours during each calendar year of the term of this
Agreement.  Silverleaf shall be obligated to provide this charter-free
use for only so long as Silverleaf maintains ownership of an airplane for use in
its business operations.  Silverleaf shall also report the use as
additional compensation as required by the applicable regulations and rules of
the Internal Revenue Service.

      
        
           

        

        
          -2-

          
            

          

        

        
           

        

      

       

      Section
4.              Termination
Payments. If
Employee’s employment with Silverleaf is terminated prior to a Change of
Control, the payment to Employee of all compensation earned to the date of
termination (the “Earned Compensation”) shall be in full satisfaction of all of
Employee’s claims against Silverleaf under this Agreement and Employee shall be
entitled to no other termination pay.  If Employee’s employment is
terminated after a Change of Control and during the Term or any extended Term of
this Agreement, then the following provisions shall apply:

      

      (a)           
Good
Cause or Voluntary Termination:  If Silverleaf
terminates Employee’s employment for Good Cause, or if Employee voluntarily
terminates Employee’s employment other than for Good Reason, then Employee shall
be entitled to the Earned Compensation only.

      

      (b)           
No
Good Cause or Good Reason:  If Silverleaf
terminates Employee’s employment other than for Good Cause, or if Employee
terminates Employee’s employment for Good Reason, then Employee shall be
entitled to the Earned Compensation and to Severance Pay.  For this
purpose, Severance Pay means an amount of compensation equal to two (2) times
the sum of Employee’s base compensation as set forth in Section 3(a) above plus
any discretionary bonuses granted to Employee during the calendar year in which
the Change in Control occurs, but exclusive of any fringe benefits, vehicle
usage and similar non-cash items.  The Severance Pay shall be payable
in a lump sum within thirty (30) days after the termination of
employment.  As a condition precedent to the payment of the Severance
Pay, Employee agrees to execute and deliver to Silverleaf a general release of
Silverleaf and its affiliates from any and all other claims that Employee might
have against Silverleaf and its affiliates, the form of which will be provided
by Silverleaf.

      

      (c)            Death or
Incapacity:  If Employee’s
employment is terminated because of Employee’s death, or Employee’s incapacity
and inability to perform Employee’s duties hereunder due to Employee’s physical
or mental illness, then Employee shall be entitled to the Earned Compensation
only.

       

       

      Section
5.              
Termination
Payment Definitions.  For purposes of
Section 4, the following definitions shall apply:

      

      (a)         
  Change of
Control:  “Change of
Control” shall mean the occurrence of any of the following events after the
Effective Date:

      

      [1]           Individuals
who, on the Effective Date, constitute the Board of Directors (the “Board”) of
Silverleaf (the “Incumbent Directors”) cease for any reason to constitute at
least a majority of the Board, provided that any person becoming a director
subsequent to such date, whose election or nomination for election was approved
by a vote of at least two-thirds of the Incumbent Directors then on the Board
(either by a specific vote or by approval of the proxy statement of Silverleaf
in which such person is named as a nominee for director, without written
objection to such nomination) shall be an Incumbent Director; provided, however,
that no individual initially elected or nominated as a director of Silverleaf as
a result of an actual or threatened election contest with respect to directors
or as a result of any other actual or threatened solicitation of proxies or
consents by or on behalf of any person other than the Board shall be deemed to
be an Incumbent Director;

      
        
           

        

        
          -3-

          
            

          

        

        
           

        

      

      [2]           The
consummation of any sale, transfer or other disposition of all or substantially
all of the assets of the business of Silverleaf through one transaction or a
series of related transactions to one or more persons or entities;

      

      [3]           Any
“Person” (as such term is defined in Section 3(a)(9) of the Securities Exchange
Act of 1934 (the “Exchange Act”) and as used in Sections 13(d)(3) and 14 (d)(2)
of the Exchange Act), other than Robert E. Mead, is or becomes a “beneficial
owner” (as defined in Rule 13d-3 under the Exchange Act), directly or
indirectly, of securities of Silverleaf representing more than 50% of the
combined voting power of Silverleaf’s then outstanding securities eligible to
vote for the election of the Board;

      

      [4]           The
consummation of a merger, consolidation, reorganization, statutory share
exchange or similar form of corporate transaction involving Silverleaf or any of
its subsidiaries that requires the approval of Silverleaf’s stockholders,
whether for such transaction or the issuance of securities in the transaction;
or

      

      [5]           The
stockholders of Silverleaf approve a plan of complete liquidation or
dissolution.

      

      (b)            Good
Cause:  “Good Cause”
shall be deemed to exist if Employee:

      

      [1]           Willfully
breaches or habitually neglects the duties that the Employee is required to
perform under the terms of this Agreement;

      

      [2]           Willfully
violates reasonable and substantial rules, regulations or policies governing
employee performance;

      

      [3]           Willfully
refuses to obey reasonable orders in a manner that amounts to insubordination;
or

      

      [4]           Willfully
commits clearly dishonest acts toward Silverleaf.

      

      For such
purposes, no act or failure to act by Employee shall be considered “willful”
unless done or omitted to be done by Employee in bad faith and without
reasonable belief that Employee’s action or omission was in the best interests
of Silverleaf or its affiliates.  Any act, or failure to act, based
upon authority given pursuant to a resolution duly adopted by the Board or based
upon the advice of counsel for Silverleaf shall be conclusively presumed to be
done, or omitted to be done, by Employee in good faith and in the best interests
of Silverleaf.  Good Cause shall also not exist pursuant to clause
[1], [2] or [3], unless Employee has failed to correct the activity alleged to
constitute Good Cause within thirty (30) days following written notice from
Silverleaf of such activity, which notice shall specifically set forth the
nature of such activity and the corrective action reasonably sought by
Silverleaf.  Notwithstanding the foregoing, the termination of the
Employee’s employment for Good Cause shall be pursuant to the action of the
Board, taken in conformity with the By-laws of Silverleaf.

      
        
           

        

        
          -4-

          
            

          

        

        
           

        

      

      

      (c)         
  Good
Reason:  “Good Reason” shall mean the occurrence of any of the
following events after a Change of Control:

      

      [1]           The
failure by Silverleaf to pay Employee the compensation and benefits due Employee
under Section 3;

      

      [2]           A
material diminution in Employee’s responsibilities or authority, or a diminution
of Employee’s title;

      

      [3]           Employee
is required to relocate for purposes of Employee’s employment with
Silverleaf;

      

      [4]           Any
material breach of this Agreement by Silverleaf; or

      

      [5]           The
failure of any successor to all or substantially all of the business and/or
assets of Silverleaf to assume this Agreement.

      

      Provided,
however, Employee must give written notice to Silverleaf of the event
constituting Good Reason within thirty (30) days of Employee’s knowledge of the
event, or such event shall not constitute Good Reason.  Provided,
further, Good Reason shall not be deemed to exist unless Silverleaf fails to
cure the event giving rise to Good Reason within thirty (30) days after receipt
of the written notice from Employee.

       

       

      Section
6.              
Confidentiality.

      

      (a)        
   Nondisclosure
and Nonuse:  Employee
acknowledges that during his or her employment with Silverleaf, he or she may
have access to and become acquainted with Silverleaf Confidential Information,
as defined below.  Except as Employee's duties during his or her
employment with Silverleaf may require or Silverleaf may otherwise consent in
writing, Employee agrees that he or she shall not at any time disclose or use,
directly or indirectly, either during or subsequent to his or her employment
with Silverleaf, any Silverleaf Confidential Information.

      

      (b)          
 Confidential
Information:  For purposes of
the foregoing provisions, “Silverleaf Confidential Information” shall mean (1)
any and all confidential and proprietary business information and trade secrets
concerning the business and affairs of Silverleaf and its affiliates, including
but not limited to all marketing, sales and lead generation techniques, know-how
and studies, timeshare member lists, other customer and lead lists, current and
anticipated customer requirements, price lists, business plans, training
programs, computer software and programs, and computer software and data-base
technologies, systems, structures and architectures (and related processes,
formulae, compositions, improvements, devices, know-how, inventions,
discoveries, concepts, ideas, designs, methods and information), (2) any and all
information concerning the business and affairs of Silverleaf and its affiliates
(including but not limited to their historical financial statements, financial
projections and budgets, historical and projected sales, capital spending
budgets and plans, the names and backgrounds of key personnel, personnel
training and techniques and materials, however documented), and (3) any and all
notes, analysis, compilations, studies, summaries, and other material prepared
by or for Silverleaf and its affiliates containing or based, in whole or in
part, on any information included in the foregoing.  Provided,
however, “Silverleaf Confidential Information” shall not include information
which is generally available and known by the public, other than as a result of
a breach of this Agreement.

      
        
           

        

        
          -5-

          
            

          

        

        
           

        

      

      

      Section
7.               Non-Interference.  Employee further
agrees that during his or her employment and for a period of two (2) years from
and after the effective date of any Termination, Employee shall not, either on
his or her own account or jointly with or as a manager, agent, officer,
employee, consultant, partner, joint venturer, owner or shareholder or otherwise
on behalf of any other person, firm or corporation:  (1) carry on or
be engaged or interested directly or indirectly in, or solicit, the manufacture
or sale of goods or provision of services to any person, firm or corporation
which, at any time during his or her employment has been or is a customer or in
the habit of dealing with Silverleaf or its affiliates in their business if it
would adversely affect Silverleaf’s business, (2) endeavor, directly or
indirectly, to canvas or solicit in competition with Silverleaf or its
affiliates or to interfere with the supply of orders for goods or services from
or by any person, firm or corporation which during his or her employment has
been or is a supplier of goods or services to Silverleaf or its affiliates if it
would adversely affect Silverleaf’s business, or (3) directly or indirectly
solicit or attempt to solicit away from Silverleaf or its affiliates any of its
officers, employees or independent contractors or offer employment or business
to any person who, on or during the 6 months immediately preceding the date of
such solicitation or offer, is or was an officer, employee or independent
contractor of Silverleaf or its affiliates.

       

       

      Section
8.               Noncompetition.

      

      (a)          
 Covenant:  Employee
covenants and agrees that he or she shall not, for a period of two (2) years
from and after the effective date of any Termination, working alone or in
conjunction with one or more other persons or entities, for compensation or not,
permit his or her name to be used by or engage in or carry on, directly or
indirectly, either for himself or herself or as a member of a partnership or
other entity or as a stockholder, investor, officer or director of a corporation
or as an employee, agent, associate or contractor of any person, partnership,
corporation or other entity, any business in competition with the business of
Silverleaf or its affiliates, as carried on by Silverleaf or its affiliates
immediately prior to the effective date of any Termination, but only for as long
as such business is carried on by (1) Silverleaf or its affiliates or (2) any
person, corporation, partnership, trust or other organization or entity deriving
title from Silverleaf or its affiliates to the assets and goodwill of the
business being carried on by Silverleaf or its affiliates immediately prior to
the effective date of any Termination, in any county of any state of the United
States in which Silverleaf or its affiliates conducts such business or markets
the products of such business immediately prior to the effective date of any
Termination.

      
        
           

        

        
          -6-

          
            

          

        

        
           

        

      

      (b)           
Tolling.  If Employee
violates any covenant contained in this Section, then the term of such violated
covenant shall be tolled for the period commencing on the commencement of such
violation and ending upon the earlier of (1) such time as such violation shall
be cured by Employee to the reasonable satisfaction of Silverleaf, (2) final
adjudication (including appeals) of any action filed for injunctive relief or
damages arising out of such violation, and (3) the expiration of 24 months after
Termination during which no violation of the covenant has occurred.

      

      (c)         
  Reformation.  If, in any
judicial proceeding, the court shall refuse to enforce any covenant contained in
this Section because the time limit is too long, it is expressly understood and
agreed between Silverleaf and Employee that for purposes of such proceeding such
time limitation shall be deemed reduced to the extent necessary to permit
enforcement of such covenant.  If, in any judicial proceeding, the
court shall refuse to enforce any covenant contained in this Section because it
is more extensive (whether as to geographic area, scope of business or
otherwise) than necessary to protect the business and goodwill of Silverleaf
and/or its affiliates, it is expressly understood and agreed between Silverleaf
and Employee that for purposes of such proceeding the geographic area, scope of
business or other aspect shall be deemed reduced to the extent necessary to
permit enforcement of such covenant.

      

       

      Section
9.               Injunctive
Relief.  Employee
acknowledges that a breach of Sections 6, 7 or 8 hereof would cause irreparable
damage to Silverleaf and/or its affiliates, and in the event of Employee's
breach of the provisions of Sections 6, 7 or 8 hereof, Silverleaf shall be
entitled to a temporary restraining order and an injunction restraining Employee
from breaching such Sections without the necessity of posting bond or proving
irreparable harm, such being conclusively admitted by
Employee.  Nothing shall be construed as prohibiting Silverleaf from
pursuing any other available remedies for such breach, including the recovery of
damages from Employee.  Employee acknowledges that the restrictions
set forth in Sections 6, 7 or 8 hereof are reasonable in scope and duration,
given the nature of the business of Silverleaf and its
affiliates.  Employee agrees that issuance of an injunction
restraining Employee from breaching such Sections in accordance with their terms
will not pose an unreasonable restriction on Employee's ability to obtain
employment or other work following the effective date of any
Termination.

      

      

      Section
10.            Employee
Investments.  Anything to the
contrary herein notwithstanding, Employee:  (1) shall not be
prohibited from investing his or her assets in such form or such manner as will
not, in the aggregate, detract from the performance by Employee of his or her
duties hereunder and will not violate the provisions of Sections 6, 7 or 8
hereof; and (2) shall not be prohibited from purchasing stock in any publicly
traded company solely as a stockholder so long as Employee does not own
(together or separately or through his or her affiliates) more than two percent
(2%) of the stock in any company, other than Silverleaf, which is engaged in the
timeshare business.

      
        
           

        

        
          -7-

          
            

          

        

        
           

        

      

      Section
11.            Employee's
Representations.  Employee
represents and warrants that he or she is free to enter into and perform each of
the terms and conditions hereof, and that his or her execution and performance
of this Agreement does not and will not violate or breach any other Agreement
between Employee and any other person or entity.

       

       

      
        Section
12.            Termination.   Employee’s
employment shall terminate upon the expiration of the Term of this Agreement, or
prior thereto: (1) upon written notice by either party, at any time and for any
or no reason whatsoever, at least thirty (30) days prior to the effective date
of the termination; or (2) as of the end of the month of Employee’s death, or
incapacity and inability to perform Employee’s duties hereunder due to
Employee’s physical or mental illness (the “Termination”).  The Term
of this Agreement may be extended only: (1) by the written agreement of Employee
and Silverleaf; or (2) by Silverleaf, in its sole discretion, by the giving of
written notice to Employee of a one (1) year extension of the then Term of this
Agreement, provided that Silverleaf may only exercise this option within sixty
(60) days before the expiration of the then Term of this
Agreement.  If Silverleaf unilaterally extends the Term as provided
above, Employee, in Employee’s sole discretion, may reject the extension by
giving written notice to Silverleaf within thirty (30) days of the date of
Silverleaf’s notice of the extension, in which event the Term shall not be
extended.

      

       

       

      Section
13.            Return of
Materials and Vehicles.  Employee
understands and agrees that any training manuals, sales and promotional
material, vehicles or other equipment provided to him or her by Silverleaf in
connection with this Agreement shall remain the sole property of Silverleaf, and
shall be used by the Employee exclusively for Silverleaf's benefit, except as
otherwise approved by Silverleaf.  Upon termination of this Agreement,
any such material, vehicles or other equipment shall be immediately returned to
Silverleaf.

      

      

      Section
14.            Non-Binding
Alternate Dispute Resolution.  Except for
actions brought by Silverleaf pursuant to Section 9 hereof:

       

      (a)         
  Agreement
to Utilize:  The parties shall
attempt to settle any claim or controversy arising from this Agreement through
consultation and negotiation in good faith and a spirit of mutual cooperation
prior to the commencement of any legal action.  If such attempts fail,
then the dispute shall be mediated by a mutually accepted mediator to be chosen
by the parties within forty-five (45) days after written notice demanding
mediation is sent by one party to the other party.  Neither party may
unreasonably withhold consent to the selection of a mediator, and the parties
shall share the costs of the mediation equally.  By mutual written
agreement, however, the parties may postpone mediation until they have completed
some specified but limited discovery regarding the dispute.  The
parties may also agree to replace mediation with any other form of alternate
dispute resolution (“ADR”) available in Texas, such as a mini-trial or
arbitration.

      
        
           

        

        
          -8-

          
            

          

        

        
           

        

      

      (b)           
Failure
to Resolve:  Any dispute which
the Parties cannot resolve through negotiation, mediation or any other form of
ADR, within six (6) months of the date of the initial demand for mediation, may
then be submitted to the appropriate court for resolution.  The use of
negotiation, mediation, or any other form of ADR procedures will not be
construed under the doctrines of laches, waiver or estoppel to affect adversely
the rights of either party.

      

      

      Section
15.            Waiver.  Silverleaf's
failure at any time to require performance by Employee of any of the provisions
hereof shall not be deemed to be a waiver of any kind nor in any way affect the
rights of Silverleaf thereafter to enforce the provisions hereof.  In
the event that either party to this Agreement waives any provision of this
Agreement or any rights concerning any breach or default of the other party
hereto, such waiver shall not constitute a continuing waiver of any such
provision or breach or default of the other party hereto.

       

       

      Section
16.            Successors, Assigns,
Benefit.

      

      (a)           
Silverleaf
Successors:  The provisions of
this Agreement shall inure to the benefit of and be binding upon Silverleaf, its
successors, assigns and other affiliated entities, including, but not limited
to, any corporation or other entity which may acquire all or substantially all
of Silverleaf's assets or with or into which Silverleaf may be consolidated,
merged or reorganized.  Upon any such merger, consolidation or
reorganization, the term “Silverleaf” as used herein shall be deemed to refer to
any such successor entity.

      

      (b)         
  No
Assignment by Employee:  The parties
hereto agree that Employee's services hereunder are personal and unique, and
that Silverleaf is executing this Agreement in reliance thereon.  This
Agreement shall not be assignable by Employee.

       

       

      Section
17.            Severability.  If one or more of
the provisions contained in this Agreement shall for any reason be held to be
invalid, illegal or unenforceable in any respect, such invalidity, illegality or
unenforceability shall not affect any other provision of this Agreement, but
shall be deemed stricken and severed from this Agreement and the remaining terms
of this Agreement shall continue in full force and effect.

       

       

      Section
18.            Governing
Law and Venue.  This Agreement
shall be deemed to have been made and entered into in the State of Texas and its
validity, construction, breach, performance and operation shall be governed by
the laws of that state.  The obligations hereunder of Silverleaf shall
be performable in Dallas County, Texas, and venue for any suit involving this
Agreement shall lie exclusively in Dallas County, Texas.

       

       

      Section
19.            Entire
Understanding.  This Agreement
sets forth the entire understanding between the parties with respect to the
employment of Employee, and no other representations, warranties or agreements
whatsoever have been made by Silverleaf to Employee.  Further, this
Agreement may not be modified or amended except by another instrument in writing
executed by both of the parties.

      
        
           

        

        
          -9-

          
            

          

        

        
           

        

      

      Section
20.            Notices.  All notices and
communications under this Agreement shall be sent to the parties at the
following addresses or such other addresses that the parties may subsequently
designate in writing.

      

      (a)          
 Silverleaf:

      

      Silverleaf
Resorts, Inc.

      Attention:  Sharon
K. Brayfield, President

      1221
River Bend, Suite 120

      Dallas,
Texas  75247

      

      (b)           
Employee:

      

      Robert E.
Mead

      1221
River Bend, Suite 120

      Dallas,
Texas  75247

      

      

      Section
21.            Section
Headings.  Section and
paragraph headings are inserted herein only for convenience and shall not be
used to interpret any of the provisions hereof.

      

      

      Section
22.            Counterparts.  This Agreement
may be executed in counterparts, each of which shall be an original, but all of
which together shall constitute one and the same original.

      

      

      Section
23.             Effective
Date.  This Agreement is
executed on the date set forth below, but shall be effective as of March 4,
2008 (the “Effective Date”).

      

      Executed
this 31st day of
March, 2008.

      
        
           

        

        
          -10-

          
            

          

        

        
           

        

      

       

      
        	 
      	
                “SILVERLEAF”

              
	 
      	 
      
	 
      	
                SILVERLEAF
      RESORTS, INC.

              
	 
      	 
      
	 
      	 
      
	 
      	
                By:

              	
                /S/ SHARON K. BRAYFIELD

              
	 
      	 
      	
                SHARON
      K. BRAYFIELD,

              
	 
      	 
      	
                PRESIDENT

              
	 
      	 
      
	 
      	 
      	
                “EMPLOYEE”

              
	 
      	 
	 
      	 
      
	 
      	 
      	
                /S/ ROBERT E. MEAD

              
	 
      	 
      	
                ROBERT
      E. MEAD

              

      

       

    

     

    -11-ex10_2.htm

    
      
        

      

    

    Ex.
10.2

    

    AMENDED
AND RESTATED

    EMPLOYMENT
AGREEMENT

    WITH SILVERLEAF RESORTS,
INC.

    

    

    THIS
AMENDED AND RESTATED EMPLOYMENT AGREEMENT (the "Agreement") is made between
SILVERLEAF RESORTS, INC., a Texas corporation ("Silverleaf"), and THOMAS J.
MORRIS (the "Employee").

    

    

    R
E
C
I
T
A
L
S:

    

    
      	
               
      

            	
              A.

            	
              Employee
      is a key executive officer and employee of
  Silverleaf;

            

    

    

    
      	
               
      

            	
              B.

            	
              Silverleaf
      and Employee entered into an Employment Agreement effective as of January
      1, 2007 (the "Employment
Agreement");

            

    

    

    
      	
               
      

            	
              C.

            	
              Effective
      March 4, 2008, the Compensation Committee of the Board of Directors
      approved an increase in the base salary paid to Employee;
    and

            

    

    

    
      	
               
      

            	
              D.

            	
              Silverleaf
      and Employee desire to amend and restate the Employment Agreement to
      reflect the increase in base salary paid to
  Employee.

            

    

    

    NOW,
THEREFORE, in consideration of the premises and terms hereinafter set forth, the
parties agree as follows:

    

    

    A
G
R
E
E
M
E
N
T:

     

    Section
1.              Employment.  Employee's
employment with Silverleaf as Executive Vice President – Capital Markets and
Strategic Planning is hereby continued, effective as of the Effective Date and
continuing through December 31, 2009 (the "Term"), unless sooner
terminated pursuant to the termination provisions of this
Agreement.  Employee may not engage in other employment while he or
she is in the employ of Silverleaf pursuant to this Agreement.

     

    Section
2.              Duties.  Employee
agrees to devote such time, attention and energies as are necessary to fulfill
his or her duties as reasonably specified by the Board of Directors of
Silverleaf from time to time for an employee of Employee's
position.  Employee further agrees that he or she will promote the
best interests and welfare of Silverleaf and shall perform any and all duties to
the best of his or her abilities.  The Employee shall:

    

    (a)            Non-Competition:  Not
render to others, during his or her employment with Silverleaf, service of any
kind for compensation or promote, participate or engage in any other business
activity which would conflict or interfere with the performance of his or her
duties or loyalty under this Agreement, including, but not limited to,
participating in the promotion or sale of products or services for a competitor
of Silverleaf or otherwise engage in business with such
competitor;

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (b)            Regulatory
Laws:  Abide
by all applicable statutes, rules and regulations of each State in which
services may be rendered; and

    

    (c)            Silverleaf
Rules:  Abide
by all rules, regulations and policies issued by Silverleaf, which are pertinent
to Employee's duties and obligations.

    

    
      Section
3.              
Compensation.  As
compensation for the services rendered pursuant to this
Agreement:

    

    

    (a)      
     Base
Compensation:  Silverleaf
shall pay Employee base compensation computed at the annual rate of Three
Hundred, Twenty-Five Thousand and No/100 Dollars ($325,000.00) payable in
semi-monthly payments on the 15th day and the last day of each
month.

    

    (b)           
Incentive
Compensation:  Employee
shall be entitled to participate in any bonus, incentive, stock option or other
compensation plans of Silverleaf only to the extent the Board of Directors of
Silverleaf may deem appropriate from time to time.

    

    (c)            Fringe
Benefits:  Silverleaf
shall provide Employee health and life insurance under its group plans as they
may exist from time to time.  The cost of any coverage of any of the
Employee's family members under Silverleaf's group plans shall be paid by the
Employee.  The Employee shall also be entitled to such vacation time,
sick leave and other fringe benefits as may be specified by the Board of
Directors of Silverleaf from time to time for its executive
personnel.

    

    
      Section
4.              Termination
Payments. If Employee's employment with Silverleaf is terminated prior to
a Change of Control, the payment to Employee of all compensation earned to the
date of termination (the "Earned Compensation") shall be in full satisfaction of
all of Employee's claims against Silverleaf under this Agreement and Employee
shall be entitled to no other termination pay.  If Employee's
employment is terminated after a Change of Control and during the Term or any
extended Term of this Agreement, then the following provisions shall
apply:

    

    

    (a)            Good
Cause or Voluntary Termination:  If
Silverleaf terminates Employee's employment for Good Cause, or if Employee
voluntarily terminates Employee's employment other than for Good Reason, then
Employee shall be entitled to the Earned Compensation only.

    

    (b)            No Good
Cause or Good Reason:  If
Silverleaf terminates Employee's employment other than for Good Cause, or if
Employee terminates Employee's employment for Good Reason, then Employee shall
be entitled to the Earned Compensation and to Severance Pay.  For this
purpose, Severance Pay means an amount of compensation equal to two (2) times
the sum of the total cash compensation received by the Employee for the
immediately preceding calendar year, including but not limited to any base
compensation, commissions, bonuses, and similar cash items, but exclusive of any
fringe benefits, vehicle usage and similar non-cash items.  The
Severance Pay shall be payable in a lump sum within thirty (30) days after the
termination of employment.  As a condition precedent to the payment of
the Severance Pay, Employee agrees to execute and deliver to Silverleaf a
general release of Silverleaf and its affiliates from any and all other claims
that Employee might have against Silverleaf and its affiliates, the form of
which will be provided by Silverleaf.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    (c)        
   Death
or Incapacity:  If
Employee's employment is terminated because of Employee's death, or Employee's
incapacity and inability to perform Employee's duties hereunder due to
Employee's physical or mental illness, then Employee shall be entitled to the
Earned Compensation only.

    

    
      Section
5.              
Termination
Payment Definitions.  For purposes of
Section 4, the following definitions shall apply:

    

    

    (a)        
   Change of
Control:  "Change of
Control" shall mean the occurrence of any of the following events after the
Effective Date:

    

    [1]          
 Individuals who, on the Effective Date, constitute the Board of Directors
(the "Board") of Silverleaf (the "Incumbent Directors") cease for any reason to
constitute at least a majority of the Board, provided that any person becoming a
director subsequent to such date, whose election or nomination for election was
approved by a vote of at least two-thirds of the Incumbent Directors then on the
Board (either by a specific vote or by approval of the proxy statement of
Silverleaf in which such person is named as a nominee for director, without
written objection to such nomination) shall be an Incumbent Director; provided,
however, that no individual initially elected or nominated as a director of
Silverleaf as a result of an actual or threatened election contest with respect
to directors or as a result of any other actual or threatened solicitation of
proxies or consents by or on behalf of any person other than the Board shall be
deemed to be an Incumbent Director;

    

    [2]           
The consummation of any sale, transfer or other disposition of all or
substantially all of the assets of the business of Silverleaf through one
transaction or a series of related transactions to one or more persons or
entities;

    

    [3]           Any
"Person" (as such term is defined in Section 3(a)(9) of the Securities Exchange
Act of 1934 (the "Exchange Act") and as used in Sections 13(d)(3) and 14 (d)(2)
of the Exchange Act), other than Robert E. Mead, is or becomes a "beneficial
owner" (as defined in Rule 13d-3 under the Exchange Act), directly or
indirectly, of securities of Silverleaf representing more than 50% of the
combined voting power of Silverleaf's then outstanding securities eligible to
vote for the election of the Board;

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    [4]           The
consummation of a merger, consolidation, reorganization, statutory share
exchange or similar form of corporate transaction involving Silverleaf or any of
its subsidiaries that requires the approval of Silverleaf's stockholders,
whether for such transaction or the issuance of securities in the transaction;
or

    

    [5]           The
stockholders of Silverleaf approve a plan of complete liquidation or
dissolution.

    

    (b)          
 Good
Cause:  "Good
Cause" shall be deemed to exist if Employee:

    

    [1]           Willfully
breaches or habitually neglects the duties that the Employee is required to
perform under the terms of this Agreement;

    

    [2]           Willfully
violates reasonable and substantial rules, regulations or policies governing
employee performance;

    

    [3]           Willfully
refuses to obey reasonable orders in a manner that amounts to insubordination;
or

    

    [4]           Willfully
commits clearly dishonest acts toward Silverleaf.

    

    For such
purposes, no act or failure to act by Employee shall be considered "willful"
unless done or omitted to be done by Employee in bad faith and without
reasonable belief that Employee's action or omission was in the best interests
of Silverleaf or its affiliates.  Any act, or failure to act, based
upon authority given pursuant to a resolution duly adopted by the Board or based
upon the advice of counsel for Silverleaf shall be conclusively presumed to be
done, or omitted to be done, by Employee in good faith and in the best interests
of Silverleaf.  Good Cause shall also not exist pursuant to clause
[1], [2] or [3], unless Employee has failed to correct the activity alleged to
constitute Good Cause within thirty (30) days following written notice from
Silverleaf of such activity, which notice shall specifically set forth the
nature of such activity and the corrective action reasonably sought by
Silverleaf.  Notwithstanding the foregoing, the termination of the
Employee's employment for Good Cause shall be pursuant to the action of the
Board, taken in conformity with the By-laws of Silverleaf.

    

    (c)          
 Good
Reason:  "Good Reason" shall mean the occurrence of any of the
following events after a Change of Control:

    

    [1]           The
failure by Silverleaf to pay Employee the compensation and benefits due Employee
under Section 3;

    

    [2]           A
material diminution in Employee's responsibilities or authority, or a diminution
of Employee's title;

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    [3]           Employee
is required to relocate for purposes of Employee's employment with
Silverleaf;

    

    [4]           Any
material breach of this Agreement by Silverleaf; or

    

    [5]           The
failure of any successor to all or substantially all of the business and/or
assets of Silverleaf to assume this Agreement.

    

    Provided,
however, Employee must give written notice to Silverleaf of the event
constituting Good Reason within thirty (30) days of Employee's knowledge of the
event, or such event shall not constitute Good Reason.  Provided,
further, Good Reason shall not be deemed to exist unless Silverleaf fails to
cure the event giving rise to Good Reason within thirty (30) days after receipt
of the written notice from Employee.

    

    
      Section
6.               Confidentiality.

    

    

    (a)        
   Nondisclosure
and Nonuse:  Employee
acknowledges that during his or her employment with Silverleaf, he or she may
have access to and become acquainted with Silverleaf Confidential Information,
as defined below.  Except as Employee's duties during his or her
employment with Silverleaf may require or Silverleaf may otherwise consent in
writing, Employee agrees that he or she shall not at any time disclose or use,
directly or indirectly, either during or subsequent to his or her employment
with Silverleaf, any Silverleaf Confidential Information.

    

    (b)          
 Confidential
Information:  For
purposes of the foregoing provisions, "Silverleaf Confidential Information"
shall mean (1) any and all confidential and proprietary business information and
trade secrets concerning the business and affairs of Silverleaf and its
affiliates, including but not limited to all marketing, sales and lead
generation techniques, know-how and studies, timeshare member lists, other
customer and lead lists, current and anticipated customer requirements, price
lists, business plans, training programs, computer software and programs, and
computer software and data-base technologies, systems, structures and
architectures (and related processes, formulae, compositions, improvements,
devices, know-how, inventions, discoveries, concepts, ideas, designs, methods
and information), (2) any and all information concerning the business and
affairs of Silverleaf and its affiliates (including but not limited to their
historical financial statements, financial projections and budgets, historical
and projected sales, capital spending budgets and plans, the names and
backgrounds of key personnel, personnel training and techniques and materials,
however documented), and (3) any and all notes, analysis, compilations, studies,
summaries, and other material prepared by or for Silverleaf and its affiliates
containing or based, in whole or in part, on any information included in the
foregoing.

     

    
      Section
7.               Non-Interference.  Employee
further agrees that during his or her employment and for a period of two (2)
years after the effective date of any Termination, Employee shall not, either on
his or her own account or jointly with or as a manager, agent, officer,
employee, consultant, partner, joint venturer, owner or shareholder or otherwise
on behalf of any other person, firm or corporation:  (1) carry on or
be engaged or interested directly or indirectly in, or solicit, the manufacture
or sale of goods or provision of services to any person, firm or corporation
which, at any time during his or her employment has been or is a customer or in
the habit of dealing with Silverleaf or its affiliates in their business if it
would adversely affect Silverleaf's business, (2) endeavor, directly or
indirectly, to canvas or solicit in competition with Silverleaf or its
affiliates or to interfere with the supply of orders for goods or services from
or by any person, firm or corporation which during this or her employment has
been or is a supplier of goods or services to Silverleaf or its affiliates if it
would adversely affect Silverleaf's business, or (3) directly or indirectly
solicit or attempt to solicit away from Silverleaf or its affiliates any of its
officers, employees or independent contractors or offer employment or business
to any person who, on or during the 6 months immediately preceding the date of
such solicitation or offer, is or was an officer, employee or independent
contractor of Silverleaf or its affiliates.

    

    

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

    

     

    
      Section
8.               Noncompetition.   If the
Employee's employment is terminated after a Change of Control and during the
Term or any extended Term of this Agreement:

    (a)        
   Covenant:  Employee
covenants and agrees that he or she shall not, for a period of two (2) years
after the effective date of the Termination, working alone or in conjunction
with one or more other persons or entities, for compensation or not, permit his
or her name to be used by or engage in or carry on, directly or indirectly,
either for himself or herself or as a member of a partnership or other entity or
as a stockholder, investor, officer or director of a corporation or as an
employee, agent, associate or contractor of any person, partnership, corporation
or other entity, any business in competition with the business of Silverleaf or
its affiliates, as carried on by Silverleaf or its affiliates immediately prior
to the effective date of the Termination, but only for as long as such business
is carried on by (1) Silverleaf or its affiliates or (2) any person,
corporation, partnership, trust or other organization or entity deriving title
from Silverleaf or its affiliates to the assets and goodwill of the business
being carried on by Silverleaf or its affiliates immediately prior to the
effective date of the Termination, in any county of any state of the United
States in which Silverleaf or its affiliates conducts such business or markets
the products of such business immediately prior to the effective date of the
Termination.

    

    (b)          
 Tolling.  If
Employee violates any covenant contained in this Section, then the term of such
violated covenant shall be tolled for the period commencing on the commencement
of such violation and ending upon the earlier of (1) such time as such violation
shall be cured by Employee to the reasonable satisfaction of Silverleaf, (2)
final adjudication (including appeals) of any action filed for injunctive relief
or damages arising out of such violation, and (3) the expiration of 24 months
after Termination during which no violation of the covenant has
occurred.

    

    (c)          
 Reformation.  If, in
any judicial proceeding, the court shall refuse to enforce any covenant
contained in this Section because the time limit is too long, it is expressly
understood and agreed between Silverleaf and Employee that for purposes of such
proceeding such time limitation shall be deemed reduced to the extent necessary
to permit enforcement of such covenant.  If, in any judicial
proceeding, the court shall refuse to enforce any covenant contained in this
Section because it is more extensive (whether as to geographic area, scope of
business or otherwise) than necessary to protect the business and goodwill of
Silverleaf and/or its affiliates, it is expressly understood and agreed between
Silverleaf and Employee that for purposes of such proceeding the geographic
area, scope of business or other aspect shall be deemed reduced to the extent
necessary to permit enforcement of such covenant.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    
      Section
9.             
Injunctive
Relief.   Employee acknowledges that a breach of Sections
6, 7, or 8 hereof would cause irreparable damage to Silverleaf and/or its
affiliates, and in the event of Employee's breach of the provisions of Sections
6, 7 or 8 hereof, Silverleaf shall be entitled to a temporary restraining order
and an injunction restraining Employee from breaching such Sections without the
necessity of posting bond or proving irreparable harm, such being conclusively
admitted by Employee.  Nothing shall be construed as prohibiting
Silverleaf from pursuing any other available remedies for such breach, including
the recovery of damages from Employee.  Employee acknowledges that the
restrictions set forth in Sections 6, 7 and 8 hereof are reasonable in scope and
duration, given the nature of the business of Silverleaf and its
affiliates.  Employee agrees that issuance of an injunction
restraining Employee from breaching such Sections in accordance with their terms
will not pose an unreasonable restriction on Employee's ability to obtain
employment or other work following the effective date of any
Termination.

      

      Section
10.            Employee
Investments.  Anything to the contrary herein notwithstanding,
Employee:  (1) shall not be prohibited from investing his or her
assets in such form or such manner as will not, in the aggregate, detract from
the performance by Employee of his or her duties hereunder and will not violate
the provisions of Sections 6, 7 or 8 hereof; and (2) shall not be prohibited
from purchasing stock in any publicly traded company solely as a stockholder so
long as Employee does not own (together or separately or through his or her
affiliates) more than two percent (2%) of the stock in any company, other than
Silverleaf, which is engaged in the timeshare business.

      

      Section
11.            Employee's
Representations.  Employee represents and warrants that he or
she is free to enter into and perform each of the terms and conditions hereof,
and that his or her execution and performance of this Agreement does not and
will not violate or breach any other Agreement between Employee and any other
person or entity.

       

      
        Section
12.            Termination.   Employee's
employment shall terminate upon the expiration of the Term of this Agreement, or
prior thereto: (1) upon written notice by either party, at any time and for any
or no reason whatsoever, at least thirty (30) days prior to the effective date
of the termination; or (2) as of the end of the month of Employee's death, or
incapacity and inability to perform Employee's duties hereunder due to
Employee's physical or mental illness (the "Termination").  The Term
of this Agreement may be extended only: (1) by the written agreement of Employee
and Silverleaf; or (2) by Silverleaf, in its sole discretion, by the giving of
written notice to Employee of a one (1) year extension of the then Term of this
Agreement, provided that Silverleaf may only exercise this option within sixty
(60) days before or after January 1 of each year, the option may be exercised
only once for each year and the exercise must be prior to the expiration of the
then Term of this Agreement.  If Silverleaf unilaterally extends the
Term as provided above, Employee, in Employee's sole discretion, may reject the
extension by giving written notice to Silverleaf within thirty (30) days of the
date of Silverleaf's notice of the extension, in which event the Term shall not
be extended.

      

      

        
          
             

          

          
            7

            
              

            

          

          
             

          

        

      

       

      Section
13.            Return of
Materials and Vehicles:  Employee understands and agrees that
any training manuals, sales and promotional material, vehicles or other
equipment provided to him or her by Silverleaf in connection with this Agreement
shall remain the sole property of Silverleaf, and shall be used by the Employee
exclusively for Silverleaf's benefit.  Upon termination of this
Agreement, any such material, vehicles or other equipment shall be immediately
returned to Silverleaf.

      

      Section
14.             Non-Binding
Alternate Dispute Resolution.  Except for actions brought by
Silverleaf pursuant to Section 9 hereof:

      

      (a)          
 Agreement
to Utilize:  The
parties shall attempt to settle any claim or controversy arising from this
Agreement through consultation and negotiation in good faith and a spirit of
mutual cooperation prior to the commencement of any legal action.  If
such attempts fail, then the dispute shall be mediated by a mutually-accepted
mediator to be chosen by the parties within forty-five (45) days after written
notice demanding mediation is sent by one party to the other
party.  Neither party may unreasonably withhold consent to the
selection of a mediator, and the parties shall share the costs of the mediation
equally.  By mutual written agreement, however, the parties may
postpone mediation until they have completed some specified but limited
discovery regarding the dispute.  The parties may also agree to
replace mediation with any other form of alternate dispute resolution ("ADR")
available in Texas, such as a mini-trial or arbitration.

      

      (b)         
  Failure
to Resolve:  Any
dispute which the Parties cannot resolve through negotiation, mediation or any
other form of ADR, within six (6) months of the date of the initial demand for
mediation, may then be submitted to the appropriate court for
resolution.  The use of negotiation, mediation, or any other form of
ADR procedures will not be construed under the doctrines of laches, waiver or
estoppel to affect adversely the rights of either party.

      

      Section
15.            Waiver.  Silverleaf's
failure at any time to require performance by Employee of any of the provisions
hereof shall not be deemed to be a waiver of any kind nor in any way affect the
rights of Silverleaf thereafter to enforce the provisions hereof.  In
the event that either party to this Agreement waives any provision of this
Agreement or any rights concerning any breach or default of the other party
hereto, such waiver shall not constitute a continuing waiver of any such
provision or breach or default of the other party hereto.

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

       

      Section
16.            
Successors,
Assignability.

      

      (a)          
 Silverleaf
Successors:  The
provisions of this Agreement shall inure to the benefit of and be binding upon
Silverleaf, its successors, assigns and other affiliated entities, including,
but not limited to, any corporation or other entity which may acquire all or
substantially all of Silverleaf's assets or with or into which Silverleaf may be
consolidated, merged or reorganized.  Upon any such merger,
consolidation or reorganization, the term "Silverleaf" as used herein shall be
deemed to refer to any such successor.

      

      (b)        
   No
Assignment by Employee:  The
parties hereto agree that Employee's services hereunder are personal and unique,
and that Silverleaf is executing this Agreement in reliance
thereon.  This Agreement shall not be assignable by
Employee.

      

      Section
17.            Severability.  If
one or more of the provisions contained in this Agreement shall for any reason
be held to be invalid, illegal or unenforceable in any respect, such invalidity,
illegality or unenforceability shall not affect any other provision of this
Agreement, but shall be deemed stricken and severed from this Agreement and the
remaining terms of this Agreement shall continue in full force and
effect.

      

      Section
18.            Governing
Law and Venue.  This Agreement shall be deemed to have been
made and entered into in the State of Texas and its validity, construction,
breach, performance and operation shall be governed by the laws of that
state.  The obligations hereunder of Silverleaf shall be performable
in Dallas County, Texas, and venue for any suit involving this Agreement shall
lie exclusively in Dallas County, Texas.

      

      Section
19.            Entire
Understanding.  This Agreement sets forth the entire
understanding between the parties with respect to the employment of Employee,
and no other representations, warranties or agreements whatsoever have been made
by Silverleaf to Employee.  Further, this Agreement may not be
modified or amended except by another instrument in writing executed by both of
the parties.

      

      Section
20.            Notices.  All
notices and communications under this Agreement shall be sent to the parties at
the following addresses or such other addresses that the parties may
subsequently designate in writing.

      

      (a)          
 Silverleaf:

      

       Silverleaf
Resorts, Inc.

       Attention:  Robert
E. Mead, Chief Executive Officer

       1221
River Bend, Suite 120

       Dallas,
Texas 75247

      
        
           

        

        
          9

          
            

          

        

        
           

        

      

      

      (b)         
  Employee:

      

       Thomas
J. Morris

       819
Equestrian Drive

       Rockwall,
TX   75032

      

      Section
21.            Section
Headings.  Section and paragraph headings are inserted herein
only for convenience and shall not be used to interpret any of the provisions
hereof.

       

      Section
22.            Counterparts.  This
Agreement may be executed in counterparts, each of which shall be an original,
but all of which together shall constitute one and the same
original.

      

      Section
23.            Effective
Date.  This Agreement is executed on the date set forth below,
but shall be effective as of March 4, 2008 (the "Effective Date").

       

    

    

    
      	
              Dates
      of Execution:

            	
              "SILVERLEAF"

            
	 
      	
              SILVERLEAF
      RESORTS, INC.

            
	 
      	 
      
	 
      	 
      
	
              March  31,
      2008

            	
              By:

            	
              /S/ ROBERT E. MEAD

            
	 
      	 
      	
              ROBERT
      E. MEAD, Chief Executive Officer

            
	 
      	 
      
	 
      	 
      
	 
      	
              "EMPLOYEE"

            
	 
      	 
      
	 
      	 
      
	
              March  31,
      2008

            	
              /S/ THOMAS J. MORRIS

            
	 
      	
              THOMAS
      J. MORRIS

            

    

     

     

     10

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