<PAGE>

                       THE LOEWEN GROUP INC. EXECUTIVE AND
                     OTHER SPECIFIED EMPLOYEE SEVERANCE PLAN

1.       PURPOSE.

         The purpose of The Loewen Group Inc. Executive and Other Specified
         Employee Severance Plan (the "Plan") is to provide severance protection
         to certain employees designed to counteract the financial uncertainty
         created by the pending insolvency proceedings involving the Company.
         The Plan will apply to terminations of employment on or after the
         Effective Date with respect to each Eligible Employee and on or before
         the first anniversary of the Confirmation Date.

2.       DEFINITIONS.

         As used throughout the Plan, the following words and phrases shall have
         the following meanings, unless otherwise clearly or necessarily
         indicated by context:

         (a)      BOARD. "Board" means the Board of Directors of the Company.

         (b)      CASH SEVERANCE BENEFIT. "Cash Severance Benefit" means the
                  severance benefit described in Section 6(a) of the Plan.

         (c)      CAUSE. "Cause" means (i) neglect of duty, dishonesty or
                  misconduct in matters involving the Employer or the
                  performance of services for the Employer, (ii) loss of
                  qualification of licensure, (iii) stealing or unlawful use of
                  Employer property or monies, (iv) continued willful
                  insubordination after reasonable warning or reprimand, (v)
                  commission of a felony or any crime requiring intent or moral
                  turpitude, (vi) a violation of the Employer's anti-harassment
                  and/or drug use policies or (vii) actively and intentionally
                  pursuing interests of a competitor to the detriment of the
                  financial interests of the Employer.

         (d)      CHANGE IN CONTROL. "Change in Control" means any one of the
                  following events:

                  (i)      any "Person," as such term is used in Sections 13(d)
                           and 14(d) of the Securities Exchange Act of 1934, as
                           amended (the "Exchange Act"), is or becomes the
                           "beneficial owner" (as defined in Rule 13d-3 under
                           the Exchange Act), directly or indirectly, of
                           securities of the Company (not including any
                           securities acquired directly from the Company or its
                           affiliates) representing 25% or more of the combined
                           voting power of the Company's then outstanding voting
                           securities;

                  (ii)     the following individuals cease for any reason to
                           constitute a majority of the number of directors then
                           serving: individuals who, on the Confirmation Date,
                           constitute the Board and any new director (other than
                           a director whose initial assumption of office is in
                           connection with an actual or threatened election
                           contest, including but not limited to a consent
                           solicitation, relating to the election of directors
                           of the Company) whose

<PAGE>

                           appointment or election by the
                           Board or nomination for election by the Company's
                           shareholders was approved or recommended by a vote of
                           at least two-thirds (2/3) of the directors then still
                           in office who either were directors on the
                           Confirmation Date or whose appointment, election or
                           nomination for election was previously so approved or
                           recommended;

                  (iii)    there is consummated a merger, consolidation or
                           amalgamation of the Company or any direct or indirect
                           subsidiary of the Company with any other corporation,
                           other than (A) a merger, consolidation or
                           amalgamation that would result in the voting
                           securities of the Company outstanding immediately
                           prior thereto continuing to represent (either by
                           remaining outstanding or by being converted into
                           voting securities of the surviving or parent entity)
                           more than 33_% of the combined voting power of the
                           voting securities of the Company or such surviving or
                           parent entity outstanding immediately after such
                           merger, consolidation or amalgamation or (B) a
                           merger, consolidation or amalgamation effected to
                           implement a recapitalization of the Company (or
                           similar transaction) in which no Person (as defined
                           above), directly or indirectly, acquired 25% or more
                           of the combined voting power of the Company's then
                           outstanding securities (not including any securities
                           acquired directly from the Company or its
                           affiliates);

                  (iv)     the sale to a purchaser unaffiliated with the Company
                           of all or substantially all of the assets of the
                           Company; or

                  (v)      consummation of a plan or plans of reorganization,
                           compromise or arrangement in connection with the
                           insolvency proceedings pending at the date hereof.

         (e)      COMMITTEE. "Committee" means the Compensation Committee of the
                  Board or such other committee of the Board authorized by the
                  Board to administer the Plan.

         (f)      COMPANY. "Company" means The Loewen Group Inc.

         (g)      CONFIRMATION DATE. "Confirmation Date" means the first to
                  occur of a Change in Control or the effective date of the plan
                  or plans of reorganization, compromise or arrangement
                  confirmed in the insolvency proceedings pending as the date
                  hereof.

         (h)      EFFECTIVE DATE. "Effective Date" means the date on which an
                  individual Eligible Employee executes a Release Agreement.

         (i)      ELIGIBLE EMPLOYEE. "Eligible Employee" means Executives,
                  Managers and Employees.

         (j)      EMPLOYEE. "Employee" means any full-time employee of any
                  Employer who is not (i) an Executive or a Manager or (ii)
                  subject to The Loewen Group Inc. Basic Employee Severance
                  Plan.

                                         2

<PAGE>

         (k)      EMPLOYER. "Employer" means each of the Company and those of
                  its divisions, subsidiaries and operating units, as are set
                  forth on Exhibit A, as such Exhibit may be amended from time
                  to time.

         (l)      ERISA. "ERISA" means the Employee Retirement Income Security
                  Act of 1974, as amended from time to time, together with
                  applicable final regulations thereunder.

         (m)      EXECUTIVE. "Executive" means any full-time employee of any
                  Employer holding a position with that Employer at the
                  Director/Controller or Regional Manager level or above.

         (n)      MANAGER. "Manager" means any full-time employee of any
                  Employer holding a position with that Employer at the funeral
                  home or cemetery manager level.

         (o)      PAY. "Pay" means (i) in the case of a salaried employee, his
                  or her annualized base salary divided by 52, or (ii) in the
                  case of an hourly employee, his or her hourly straight-time
                  rate of base salary multiplied by 40. Pay shall be determined
                  at the time of termination of employment without reduction for
                  any salary or wage reduction contributions made to an
                  Employer-sponsored plan, and shall exclude commissions,
                  overtime pay, bonuses and any other remuneration.

         (p)      QUIT. "Quit" means a termination of the employment
                  relationship initiated by, and voluntary on the part of, the
                  Eligible Employee.

         (q)      RELEASE AGREEMENT. "Release Agreement" means an agreement, in
                  a form that is acceptable to the Employer, under which the
                  Eligible Employee, among other things, releases and waives any
                  rights, claims or entitlements that he or she may have at law
                  or under existing employment or consulting agreements or
                  company programs.

3.       COVERAGE PERIOD.

         The Plan is effective as of the Effective Date with respect to Eligible
         Employees whose employment is terminated by the Employer on or after
         the Effective Date and on or prior to the first anniversary of the
         Confirmation Date.

4.       ELIGIBLE EMPLOYEES.

         (a)      An employee is eligible to receive severance benefits under
                  this Plan if he or she:

                  (i)      is an Eligible Employee;

                  (ii)     is not a temporary employee;

                  (iii)    is not covered by a collective bargaining agreement
                           between the Employer and a labor organization unless
                           such agreement expressly provides for coverage under
                           the Plan;

                                         3

<PAGE>

                  (iv)     is not, with respect to any individual below the
                           level of Vice President, a consultant or an
                           independent contractor; and

                  (v)      executes a Release Agreement.

         (b)      All benefits under this Plan shall be provided in
                  consideration for, and conditioned upon, execution of (i) the
                  Release Agreement and (ii) a release by the Eligible Employee
                  of all current or future claims, known or unknown, arising on
                  or before the date of the release against the Employer and its
                  officers substantially in the form attached hereto as Exhibit
                  B. As part of this termination release, Executives also must
                  agree to notify the Company promptly of any new employment,
                  the material terms of such employment (including the terms of
                  compensation) and certain other information. No severance
                  benefits shall be payable under this Plan unless the employee
                  has returned to the Employer all property of the Employer and
                  any information of a proprietary nature in his or her
                  possession.

5.       COVERED TERMINATION.

         Severance benefits will be payable to an Eligible Employee upon his or
         her involuntary termination of employment by an Employer, except that
         in NO event shall severance benefits be payable:

         (a)      if the Eligible Employee is discharged for Cause, or Quits or
                  otherwise voluntarily terminates his or her employment;

         (b)      upon the death of the Eligible Employee during active
                  employment;

         (c)      upon the total and permanent disability of the Eligible
                  Employee;

         (d)      if the Eligible Employee's termination is due to the Eligible
                  Employee's failure to timely return to work upon expiration of
                  an authorized leave of absence;

         (e)      if the Eligible Employee's termination is due to his or her
                  refusal to transfer from one Employer to another Employer or
                  to another location of the Employer for a reasonably
                  comparable position; provided, however, (i) that an Eligible
                  Employee, other than a corporate employee holding the position
                  of Vice President level or above, whose employment is
                  terminated as a result of his or her refusal to transfer to an
                  affiliate or another Employer location for a reasonably
                  comparable position that is more than (A) 500 miles from his
                  or her current work location (for Eligible Employees who are
                  regional managers or above) or (B) 100 miles from his or her
                  current work location (for Eligible Employees below the level
                  of regional manager), shall not be ineligible for severance
                  benefits hereunder by reason of such refusal and (ii) that an
                  Eligible Employee who is a corporate employee holding the
                  position of Vice President level or above, whose employment is
                  terminated as a result of his or her refusal to transfer to an
                  affiliate or another Employer location for a reasonably
                  comparable position that is more than 100 miles from his or
                  her current work location, shall be eligible to receive a

                                         4

<PAGE>

                  severance benefit in an amount equal to 25% of the Cash
                  Severance Benefit for such Eligible Employee; or

         (f)      if a change in Control of the Company occurs and the Eligible
                  Employee is offered employment with the successor entity, or
                  if the Company sells or otherwise disposes of the Employer at
                  which the Eligible Employee works and the Eligible Employee is
                  offered employment with the acquirer or an entity related to
                  the acquirer; provided, however, that an Eligible Employee
                  whose employment is terminated as a result of his or her
                  rejection of an offer of employment at a location that is
                  (i)(A) more than 100 miles from his or her current work
                  location or (B) for Canadian employees and corporate
                  employees, in a country which is different from the country of
                  his or her current work location and/or (ii) at Pay less than
                  his or her salary with his or her Employer shall not be
                  ineligible for severance benefits hereunder by reason of such
                  refusal.

                  Notwithstanding the foregoing, Section 5(f) hereof shall not
                  apply to an Eligible Employee who is a corporate employee
                  holding the position of Vice President level or above
                  following a Change in Control described in Section 2(d)(v)
                  hereof. In such event, if such Eligible Employee's employment
                  is terminated as a result of his or her refusal to transfer to
                  an affiliate or another Employer location for a reasonably
                  comparable position that is more than 100 miles from his or
                  her current work location, such Eligible Employee shall be
                  eligible to receive only a severance benefit in an amount
                  equal to 25% of the Cash Severance Benefit for such Eligible
                  Employee.

6.       SEVERANCE BENEFIT.

         (a)      CASH BENEFITS. The Cash Severance Benefit payable to an
                  Eligible Employee who is entitled to a severance benefit under
                  the terms hereof shall be the amount set forth below or the
                  amount otherwise required by statute to be paid to an Eligible
                  Employee in the event of termination, whichever is greater:

<TABLE>
<CAPTION>
         --------------------------------------------------------------- -------------------------------------------
         LEVEL OF ELIGIBLE EMPLOYEE                                      CASH SEVERANCE BENEFIT
         --------------------------------------------------------------- -------------------------------------------
         <S>                                                             <C>
         Executives holding positions on the Senior Management Team,     2 years of Pay
         as identified on Exhibit C
         --------------------------------------------------------------- -------------------------------------------
         Executives holding positions at the Vice President level and    12 months of Pay
         above
         --------------------------------------------------------------- -------------------------------------------
         Executives holding positions at the Director/Controller or      6 months of Pay
         Regional Manager level
         --------------------------------------------------------------- -------------------------------------------
         Canadian Managers with 10 years or more of service and at or    15 weeks
         of Pay over $60,000 (CDN) annual Pay
         --------------------------------------------------------------- -------------------------------------------
         Managers                                                        3 months of Pay
         --------------------------------------------------------------- -------------------------------------------
         Employees                                                       An amount determined in the discretion of
                                                                         the Compensation Committee, but no more
                                                                         than 4 weeks of Pay
         --------------------------------------------------------------- -------------------------------------------
</TABLE>

                                         5

<PAGE>

         (b)      VACATION. Eligible Employees who are entitled to a Cash
                  Severance Benefit shall be entitled to payment of any unused
                  accrued vacation time. Payment for such unused vacation shall
                  be paid in periodic installments corresponding to the
                  employee's normal payroll period as soon as practicable after
                  the date of termination.

         (c)      OTHER BENEFITS. Eligible Employees who are entitled to a Cash
                  Severance Benefit shall also be entitled to continued
                  participation in such medical, dental and term life insurance
                  benefit plans of the Employer as permit coverage of former
                  employees at the contribution level in effect for active
                  employees during the period of severance payments, or until
                  subsequently employed by another employer and eligible to
                  receive medical, dental and term life insurance benefits, if
                  sooner, in each case, subject to and in accordance with the
                  terms of the applicable plans.

         (d)      MITIGATION OF SEVERANCE BENEFITS. Notwithstanding anything in
                  this Plan to the contrary, a portion of an Executive's Cash
                  Severance Benefit (treating any Cash Severance Benefit paid to
                  a corporation owned and controlled by an Executive as Cash
                  Severance Benefits paid to the Executive) will be subject to
                  mitigation, I.E., dollar-for-dollar reduction, on account of
                  compensation received by the Executive (or a corporation owned
                  and controlled by the Executive) in any new employment, as
                  follows:

                  (i)      If the Plan provides for six months of Cash Severance
                           Benefits, the Executive is entitled to receive the
                           first three months of Cash Severance Benefits without
                           regard to mitigation, and the remaining three months
                           is subject to mitigation.

                  (ii)     If the Plan provides for 12 months of Cash Severance
                           Benefits, the Executive is entitled to receive the
                           first six months of Cash Severance Benefits without
                           regard to mitigation, and the remaining six months is
                           subject to mitigation.

                  (iii)    If the Plan provides for two years of Cash Severance
                           Benefits, the Executive is entitled to receive the
                           first nine months of Cash Severance Benefits without
                           regard to mitigation, and the remaining 15 months is
                           subject to mitigation.

         (e)      FORFEITURE OF BENEFITS. The Company reserves the right in its
                  sole and absolute discretion to cancel all benefits under this
                  Plan in the event an Eligible Employee engages in any activity
                  that the Employer, acting reasonably, considers detrimental to
                  its interests as determined by the Committee. Activities that
                  the Employer considers detrimental to its interests include,
                  but are not limited to:

                  (i)      any effort on the part of the Eligible Employee to
                           recruit or solicit employees of the Employer for
                           employment with another company;

                                         6

<PAGE>

                  (ii)     breach of any confidentiality and/or noncompetition
                           covenants to which the Eligible Employee may be
                           subject (through an employment agreement or
                           otherwise);

                  (iii)    making materially false or misleading statements
                           about the Employer, the Company or any affiliate
                           thereof or the services, officers or employees of any
                           thereof;

                  (iv)     holding himself or herself out as an active employee
                           of the Employer; or

                  (v)      breaching any of the terms of the Release Agreement
                           or the termination release described in Exhibit B.

7.       FORM AND TIMING OF SEVERANCE PAYMENTS.

         Severance benefits shall be paid in periodic installments corresponding
         to the Eligible Employee's normal payroll period commencing as soon as
         practicable after the employee's termination of employment and
         utilization of all accrued, unused vacation. Payment shall cease in the
         event an Eligible Employee (a) accepts full-time employment, or any
         other employment with another Employer, (b) is rehired by his or her
         Employer or (c) is offered employment by any Employer at a location
         that is not more than 50 miles from the location at which he or she
         last worked at while employed. If the Eligible Employee dies before the
         end of the installment period, the balance of payments will be paid to
         the Eligible Employee's estate.

8.       BREACH.

         In the event that an otherwise Eligible Employee breaches any of his or
         her obligations under the Plan or any other documents or instruments
         executed herewith (including, without limitation, the Release
         Agreement), the Company shall have the right to demand the repayment of
         all or a portion of any amounts paid to the Eligible Employee under the
         Plan and, in addition, (a) the Company shall have no further obligation
         to that Eligible Employee pursuant to the Plan and (b) that Eligible
         Employee shall pay any expenses or damages incurred by the Company or
         the applicable Employer as a result of said breach, including all costs
         incurred by the Company or the applicable Employer, including
         reasonable attorneys' fees, in defending against any claims related to
         or arising from said breach.

9.       ADMINISTRATION.

         (a)      PLAN ADMINISTRATION. The Committee shall administer the Plan.
                  The Plan Administrator for purposes of ERISA shall be the
                  Committee.

                  The Committee shall keep or cause to be kept such records and
                  shall prepare or cause to be prepared such returns or reports
                  as may be required by law or necessary for the proper
                  administration of the Plan.

                                         7

<PAGE>

         (b)      POWERS AND DUTIES OF COMMITTEE. The Committee shall have the
                  full discretionary power and authority to construe and
                  interpret the Plan (including, without limitation, supplying
                  omissions from, correcting deficiencies in, or resolving
                  inconsistencies or ambiguities in, the language of the Plan);
                  to determine all questions of fact arising under the Plan,
                  including questions as to eligibility for and the amount of
                  benefits; to establish such rules and regulations (consistent
                  with the terms of the Plan) as it deems necessary or
                  appropriate for administration of the Plan; to delegate
                  responsibilities to others to assist it in administering the
                  Plan; and to perform all other acts it believes reasonable and
                  proper in connection with the administration of the Plan. The
                  Committee shall be entitled to rely on the records of the
                  Employer in determining any Eligible Employee's entitlement to
                  and the amount of benefits payable under the Plan.

         (c)      PLAN YEAR. The plan year shall be the calendar year.

         (d)      INDEMNIFICATION. Neither the Employers, the Board, the
                  Committee, nor any member of the Board or Committee, nor any
                  officer or employee of any Employer shall be personally liable
                  for any action, determination, or interpretation taken or made
                  in good faith with respect to the Plan. Any action taken or
                  omitted to be taken by any such person in good faith reliance
                  on the advice of any accountant, attorney or other advisor
                  retained by the Committee or the Employer shall be
                  conclusively presumed not to involve gross negligence or
                  willful misconduct. The members of the Board and the Committee
                  and the officers and employees of any Employer shall be
                  indemnified by the applicable Employer with respect to any
                  such liability to the fullest extent permitted by applicable
                  laws, rules and regulations.

10.      CLAIMS AND APPEALS PROCEDURES.

         (a)      Any request or claim for Plan benefits must be made in writing
                  and shall be deemed to be filed by an Eligible Employee when a
                  written request is made by the claimant or the claimant's
                  authorized representative which is reasonably calculated to
                  bring the claim to the attention of the Committee.

         (b)      The Committee shall provide notice in writing to any Eligible
                  Employee when a claim for benefits under the Plan has been
                  denied in whole or in part. Such notice shall be provided
                  within 30 days of the receipt by the Committee of the Eligible
                  Employee's claim or, if special circumstances require, and the
                  Eligible Employee is so notified in writing, within 60 days of
                  the receipt by the Committee of the Eligible Employee's claim.
                  The notice shall be written in a manner calculated to be
                  understood by the claimant and shall:

                  (i)      set forth the specific reasons for the denial of
                           benefits;

                  (ii)     contain specific references to Plan provisions
                           relative to the denial;

                                         8

<PAGE>

                  (iii)    describe any material and information, if any,
                           necessary for the claim for benefits to be allowed,
                           that had been requested, but not received by the
                           Committee; and

                  (iv)     advise the Eligible Employee that any appeal of the
                           Committee's adverse determination must be made in
                           writing to the Committee within 60 days after receipt
                           of the initial denial notification, and must set
                           forth facts upon which the appeal is based.

         (c)      If notice of the denial of a claim is not furnished within the
                  time periods set forth above, the claim shall be deemed denied
                  and the claimant shall be permitted to proceed to the review
                  procedures set forth below. If the Eligible Employee fails to
                  appeal the Committee's denial of benefits in writing and
                  within 60 days after receipt by the claimant of written
                  notification of denial of the claim (or within 60 days after a
                  deemed denial of the claim), the Committee's determination
                  shall become final and conclusive.

         (d)      If the Eligible Employee appeals the Committee's denial of
                  benefits within the established time frame, the Committee
                  shall re-examine all issues relevant to the original denial of
                  benefits. Any such claimant, or his or her duly authorized
                  representative may review any pertinent documents, as
                  determined by the Committee, and submit in writing any issues
                  or comments to be addressed on appeal.

         (e)      The Committee shall advise the Eligible Employee and such
                  individual's representative of its decision which shall be
                  written in a manner calculated to be understood by the
                  claimant, and include specific references to the pertinent
                  Plan provisions on which the decision is based. Such response
                  shall be made within 30 days of receipt of the written appeal,
                  unless special circumstances require an extension of such 30
                  day period for not more than an additional 30 days. Where such
                  extension is necessary, the claimant shall be given written
                  notice of the delay. If the decision on review is not
                  furnished within the time set forth above, the claim shall be
                  deemed denied on review.

         (f)      Any dispute, controversy or claim arising out of or relating
                  to any Plan benefit, including, without limitation, any
                  dispute, controversy or claim as to whether the decision of
                  the Committee respecting the benefits under this Plan or
                  interpretation of this Plan is arbitrary and capricious, that
                  is not settled in accordance with the procedures outlined in
                  this Section, shall be settled by final and binding
                  arbitration in accordance with the American Arbitration
                  Association Employment Dispute Resolution or the Rules of the
                  Arbitration and Mediation Institute of Canada, as appropriate.
                  Before resorting to arbitration, an aggrieved Eligible
                  Employee must first follow the review procedure outlined in
                  this Section of the Plan. If there is still a dispute after
                  the procedures in this Section have been exhausted, the
                  Eligible Employee must request arbitration in writing within
                  the limitations period set by applicable state, provincial or
                  federal law.

                                         9

<PAGE>

                  The arbitrator shall be selected by mutual agreement of the
                  parties, if possible. If the parties fail to reach agreement
                  upon appointment of an arbitrator within 30 days following
                  receipt by one party of the other party's notice of desire to
                  arbitrate, the arbitrator shall be selected from a panel or
                  panels of persons submitted by the American Arbitration
                  Association (the "AAA") or the Arbitration and Mediation
                  Institute of Canada ("AMI"), as applicable. The selection
                  process shall be that which is set forth in the AAA Employment
                  Dispute Resolution Rules or similar process of the AMI, except
                  that, if the parties fail to select an arbitrator from one or
                  more panels, neither AAA nor AMI shall have the power to make
                  an appointment but shall continue to submit additional panels
                  until an arbitrator has been selected.

                  All fees and expenses of the arbitration, including a
                  transcript if requested, will be shared by the parties
                  equally. The arbitrator shall have no power to amend, add to
                  or subtract from this Plan. The award shall be admissible in
                  any court or agency action seeking to enforce or render
                  unenforceable this Plan or any portion thereof. Any action to
                  enforce or vacate the arbitrator's award shall be governed by
                  the Federal Arbitration Act if applicable or such other
                  legislation as may be applicable in the jurisdiction where the
                  Eligible Employee ordinarily is a resident.

11.      UNFUNDED OBLIGATION.

         All benefits payable under this Plan shall constitute an unfunded
         obligation of the Employer. Payments shall be made, as due, from the
         general funds of the Employer of the Eligible Employee. This Plan shall
         constitute solely an unsecured promise by each Employer to pay
         severance benefits to employees to the extent provided herein.

12.      INALIENABILITY OF BENEFITS.

         No Eligible Employee shall have the power to transfer, assign,
         anticipate, mortgage or otherwise encumber any rights or any amounts
         payable under this Plan; nor shall any such rights or amounts payable
         under this Plan be subject to seizure, attachment, execution,
         garnishment or other legal or equitable process, or for the payment of
         any debts, judgments, alimony, or separate maintenance, or be
         transferable by operation of law in the event of bankruptcy,
         insolvency, or otherwise. In the event a person who is receiving or is
         entitled to receive benefits under the Plan attempts to assign,
         transfer or dispose of such right, or if an attempt is made to subject
         such right to such process, such assignment, transfer or disposition
         shall be null and void.

13.      WITHHOLDING.

         The Employer shall have the right to withhold from any amounts payable
         under this Plan such federal, state, provincial and local taxes or any
         other amounts that may be required by law to be withheld.

                                         10

<PAGE>

14.      AMENDMENT OR TERMINATION.

         The Company reserves the right to amend or terminate the Plan at any
         time without prior notice to or the consent of an employee. However, no
         amendment or termination shall adversely affect the rights of any
         Eligible Employee whose employment terminates prior to such amendment
         or termination. In addition, the Plan may not be amended so as to
         reduce benefits payable, or terminated, prior to the first anniversary
         of the Confirmation Date. However, any employee whose employment
         continues after amendment of the Plan shall be governed by the terms of
         the Plan as so amended. Any employee whose employment continues after
         termination of the Plan shall have no right to a benefit under the
         Plan.

15.      PLAN NOT A CONTRACT OF EMPLOYMENT; EMPLOYER'S POLICIES CONTROL.

         Nothing contained in this Plan shall give an Eligible Employee the
         right to be retained in the employment of an Employer. This Plan is not
         a contract of employment between the Employer and any Eligible
         Employee.

         Any dispute involving issues of employment other than claims for
         benefits under this Plan shall be governed by the appropriate
         employment dispute resolution policies and procedures of the Employer.

16.      ACTION BY AN EMPLOYER.

         Unless expressly indicated to the contrary herein, any action required
         to be taken by the Employer may be taken by action of its board of
         directors or by any appropriate officer or officers traditionally
         responsible for such determination or actions, or such other individual
         or individuals as may be designated by the board of directors or any
         such officer.

17.      GOVERNING LAW.

         The Plan shall be governed by and construed in accordance with the laws
         of the jurisdiction in which the Eligible Employee ordinarily is a
         resident. With respect to Eligible Employees resident in the United
         States, the Plan is an employee welfare benefit plan within the meaning
         of Section 3(1) of ERISA, and will be construed in accordance with the
         provisions of ERISA and the laws of the jurisdiction in which the
         Eligible Employee ordinarily is a resident, to the extent such laws are
         not preempted by ERISA.

18.      SEVERABILITY.

         If any provision of this Plan shall be held illegal or invalid for any
         reason, said illegality or invalidity shall not affect the remaining
         parts of this Plan, but this Plan shall be construed and enforced as if
         said illegal or invalid provision had never been included herein.

                                         11

<PAGE>

19.      SUCCESSORS.

         The Company will require any successor (whether direct or indirect, by
         purchase, merger, consolidation or otherwise) to all or substantially
         all of the business and/or assets of the Company to assume and agree
         expressly to perform this Plan in the same manner and to the same
         extent that the Company would be required to perform it if no such
         succession had taken place.

         IN WITNESS WHEREOF, the Company has caused this Plan to be adopted on
the _____ day of October, 1999.

                                                  THE LOEWEN GROUP INC.

                                                  By:  _____________________


                                         12

<PAGE>


                                                                       EXHIBIT A

                             PARTICIPATING EMPLOYERS


                                         1

<PAGE>


                                                                     EXHIBIT B-1

           FORM OF TERMINATION RELEASE FOR U.S. MANAGERS AND EMPLOYEES

                  In consideration of the payments to me under The Loewen Group
Inc. Executive Employee Severance Plan (the "Plan"), I do hereby waive and do
hereby unconditionally release, knowingly and willingly, The Loewen Group Inc.
(the "Company") and its subsidiaries, affiliates, successors, predecessors,
employees, agents, directors and officers, past and present, stockholders and
estates (collectively referred to herein as the "Released Parties"), from any
and all claims, liabilities and obligations of any nature pertaining to the
terms of my employment or the termination of my employment other than those
provided for by the Plan or this Release including, without limitation, any
claims arising out of alleged legal restrictions on the Company's right to
terminate its employees, such as any termination contrary to public policy or to
laws prohibiting discrimination, including but not limited to claims of
discrimination on the basis of sex, race, age, national origin, marital status,
religion or handicap, any and all claims of wrongful or unjust discharge and any
and all claims arising from any alleged violation by the Released Parties of any
federal, state, or local statutes, ordinances or common law principles,
including but not limited to the Americans with Disabilities Act, 42 U.S.C.
Section 1 to 101, ET SEQ.; Title VII of the Civil Rights Act of 1964, 42 U.S.C.
Section 2000e, ET SEQ.; the Age Discrimination in Employment Act, 29 U.S.C.
Section 621, ET SEQ. ("ADEA"); and the New York Human Rights Law and all similar
laws of the United States and any State or local jurisdiction including all
amendments to the foregoing statutes and amendments to any of the statutes or
regulations incorporated by reference in or applicable to, any of the foregoing.
With respect to the ADEA, it is specifically recognized that I am not waiving by
this Release any future claims I may have under that Act. For the avoidance of
doubt, this Release does not affect any rights of indemnification that I may
have at law or under the By-laws of the Company or any subsidiary and any rights
under benefit plans, programs or stock option agreements.

                  I hereby acknowledge that I have carefully read and fully
understand all of the provisions and effects of this Release; that I have been
advised in writing to consult an attorney prior to executing this Release; that
I am voluntarily entering into this Release; and that neither the Company nor
its agents or attorneys have made any representations or promises as to the
terms or effects of this Release other than those contained herein.

                  I hereby agree that I have been provided this Release on
__________, 1999 and have had the opportunity to review it for twenty-one (21)
days prior to executing it, and that such was a reasonable period of time.
Changes to this Release, whether material or immaterial, do not restart the
running of the twenty-one (21) day period. The Company and I also expressly
agree that my termination is not associated with an exit incentive or other
employment termination program offered to a group or class of employees.

                  For a period of seven (7) days following the execution of this
Release, I understand that I may revoke this Release. Said revocation must be in
writing and must be delivered in person or by Registered or Certified mail,
postmarked within seven (7) days of execution of this Release, to the Chief
Executive Officer of the Company.

                                         1

<PAGE>

                  This Release is made in the State of [STATE], and shall in all
respects be interpreted, enforced and governed under the laws of the State of
[STATE], except to the extent preempted by Federal law. The language of all
parts of this Release shall in all cases be construed as a whole, according to
its fair meaning, and not strictly for or against any of the parties.

                  The terms of this Release shall be considered separate from
each other, and if any shall be found to be invalid, it shall not affect the
validity of the remaining terms.

                  IN WITNESS WHEREOF, and intending to be legally bound hereby,
I have executed and delivered this Release on the date set forth below.



-------------------------------------      -------------------------------------
Date:                                      Name of Employee


                                         2

<PAGE>



                                                                     EXHIBIT B-2

                 FORM OF TERMINATION RELEASE FOR U.S. EXECUTIVES

                  In consideration of the payments to me under The Loewen Group
Inc. Executive Employee Severance Plan (the "Plan"), I do hereby waive and do
hereby unconditionally release, knowingly and willingly, The Loewen Group Inc.
(the "Company") and its subsidiaries, affiliates, successors, predecessors,
employees, agents, directors and officers, past and present, stockholders and
estates (collectively referred to herein as the "Released Parties"), from any
and all claims, liabilities and obligations of any nature pertaining to the
terms of my employment or the termination of my employment other than those
provided for by the Plan or this Release including, without limitation, any
claims arising out of alleged legal restrictions on the Company's right to
terminate its employees, such as any termination contrary to public policy or to
laws prohibiting discrimination, including but not limited to claims of
discrimination on the basis of sex, race, age, national origin, marital status,
religion or handicap, any and all claims of wrongful or unjust discharge and any
and all claims arising from any alleged violation by the Released Parties of any
federal, state, or local statutes, ordinances or common law principles,
including but not limited to the Americans with Disabilities Act, 42 U.S.C.
Section 1 to 101, ET SEQ.; Title VII of the Civil Rights Act of 1964, 42 U.S.C.
Section 2000e, ET SEQ.; the Age Discrimination in Employment Act, 29 U.S.C.
Section 621, ET SEQ. ("ADEA"); and the New York Human Rights Law and all similar
laws of the United States and any State or local jurisdiction including all
amendments to the foregoing statutes and amendments to any of the statutes or
regulations incorporated by reference in or applicable to, any of the foregoing.
With respect to the ADEA, it is specifically recognized that I am not waiving by
this Release any future claims I may have under that Act. For the avoidance of
doubt, this Release does not affect any rights of indemnification that I may
have at law or under the By-laws of the Company or any subsidiary and any rights
under benefit plans, programs or stock option agreements.

                  In the event I directly or indirectly secure new employment or
self-employment, I hereby undertake and agree to notify the Company promptly in
writing of the material terms of such employment, my date of hire and other
relevant details of such employment.

                  I hereby acknowledge that I have carefully read and fully
understand all of the provisions and effects of this Release; that I have been
advised in writing to consult an attorney prior to executing this Release; that
I am voluntarily entering into this Release; and that neither the Company nor
its agents or attorneys have made any representations or promises as to the
terms or effects of this Release other than those contained herein.

                  I hereby agree that I have been provided this Release on
__________, 1999 and have had the opportunity to review it for twenty-one (21)
days prior to executing it, and that such was a reasonable period of time.
Changes to this Release, whether material or immaterial, do not restart the
running of the twenty-one (21) day period. The Company and I also expressly
agree that my termination is not associated with an exit incentive or other
employment termination program offered to a group or class of employees.

                                         1

<PAGE>

                  For a period of seven (7) days following the execution of this
Release, I understand that I may revoke this Release. Said revocation must be in
writing and must be delivered in person or by Registered or Certified mail,
postmarked within seven (7) days of execution of this Release, to the Chief
Executive Officer of the Company.

                  This Release is made in the State of [STATE], and shall in all
respects be interpreted, enforced and governed under the laws of the State of
[STATE], except to the extent preempted by Federal law. The language of all
parts of this Release shall in all cases be construed as a whole, according to
its fair meaning, and not strictly for or against any of the parties.

                  The terms of this Release shall be considered separate from
each other, and if any shall be found to be invalid, it shall not affect the
validity of the remaining terms.

                  IN WITNESS WHEREOF, and intending to be legally bound hereby,
I have executed and delivered this Release on the date set forth below.



------------------------------                  -------------------------------
Date:                                           Name of Employee


                                         2

<PAGE>


                                                                     EXHIBIT B-3

         FORM OF TERMINATION RELEASE FOR CANADIAN MANAGERS AND EMPLOYEES

                  In consideration of the payments to me under The Loewen Group
Inc. Executive Employee Severance Plan (the "Plan"), I do hereby waive and do
hereby unconditionally release, knowingly and willingly, The Loewen Group Inc.
and its subsidiaries, affiliates, successors, predecessors, employees, agents,
directors and officers, past and present, stockholders and estates (the
"Company") from any and all claims of any nature whatsoever I have arising out
of my employment and/or the termination of my employment with the Company or any
of its subsidiaries or affiliates, including, but not limited to the following:
any claims that I have for wrongful dismissal or breach of contract or claims
arising under or in connection with the EMPLOYMENT STANDARDS ACT or any amended
or successor legislation, any claims under human rights legislation or claims
for mental or physical disability or sickness or for insurance benefits and
including all loss or damage not now known or anticipated but which may arise in
the future.

                  In exchange for the said consideration, I agree that I will
not make any claim or take any proceeding in respect of any matter covered by
this release against any other person who or corporation which might claim
contribution or indemnity from the Company.

                  I hereby undertake and agree to indemnify the Company from and
against all claim or demands arising under the INCOME TAX ACT (CANADA) for or in
respect of withholding taxes which may arise from payments to me under the Plan
and any interest or penalties relating thereto and any reasonable costs or
expenses incurred in defending such claims or demands.

                  This Release shall in all respects be interpreted, enforced
and governed under the laws of the Province of [INSERT PROVINCE]. The language
of all parts of this Release shall in all cases be construed as a whole,
according to its fair meaning, and not strictly for or against any of the
parties.

                  I have had the opportunity to seek independent legal advice
and execute this Release freely, voluntarily and not under any duress.

                  The terms of this Release shall be considered separate from
each other, and if any shall be found to be invalid, it shall not affect the
validity of the remaining terms.

                  IN WITNESS WHEREOF, and intending to be legally bound hereby,
I have executed and delivered this Release on the date set forth below.

-------------------------------------      -------------------------------------
Date:                                      Name of Employee


                                         1

<PAGE>


                                                                     EXHIBIT B-4

               FORM OF TERMINATION RELEASE FOR CANADIAN EXECUTIVES

                  In consideration of the payments to me under The Loewen Group
Inc. Executive Employee Severance Plan (the "Plan"), I do hereby waive and do
hereby unconditionally release, knowingly and willingly, The Loewen Group Inc.
and its subsidiaries, affiliates, successors, predecessors, employees, agents,
directors and officers, past and present, stockholders and estates (the
"Company") from any and all claims of any nature whatsoever I have arising out
of my employment and/or the termination of my employment with the Company or any
of its subsidiaries or affiliates, including, but not limited to the following:
any claims that I have for wrongful dismissal or breach of contract or claims
arising under or in connection with the EMPLOYMENT STANDARDS ACT or any amended
or successor legislation, any claims under human rights legislation or claims
for mental or physical disability or sickness or for insurance benefits and
including all loss or damage not now known or anticipated but which may arise in
the future.

                  In exchange for the said consideration, I agree that I will
not make any claim or take any proceeding in respect of any matter covered by
this release against any other person who or corporation which might claim
contribution or indemnity from the Company.

                  I hereby undertake and agree to indemnify the Company from and
against all claim or demands arising under the INCOME TAX ACT (CANADA) for or in
respect of withholding taxes which may arise from payments to me under the Plan
and any interest or penalties relating thereto and any reasonable costs or
expenses incurred in defending such claims or demands.

                  In the event I directly or indirectly secure new employment or
self-employment, I hereby undertake and agree to notify the Company promptly in
writing of the material terms of such employment, my date of hire and other
relevant details of such employment.

                  This Release shall in all respects be interpreted, enforced
and governed under the laws of the Province of [INSERT PROVINCE]. The language
of all parts of this Release shall in all cases be construed as a whole,
according to its fair meaning, and not strictly for or against any of the
parties.

                  I have had the opportunity to seek independent legal advice
and execute this Release freely, voluntarily and not under any duress.

                  The terms of this Release shall be considered separate from
each other, and if any shall be found to be invalid, it shall not affect the
validity of the remaining terms.

                  IN WITNESS WHEREOF, and intending to be legally bound hereby,
I have executed and delivered this Release on the date set forth below.

-------------------------------------      -------------------------------------
Date:                                      Name of Employee


                                         1

<PAGE>


                                                                       EXHIBIT C

                             SENIOR MANAGEMENT TEAM

<TABLE>
<CAPTION>

   -------------------------------------------------------- -----------------------------------------------------
                          Position                                               INCUMBENT
   -------------------------------------------------------- -----------------------------------------------------
   <S>                                                      <C>
   Chief Executive Officer                                                    Robert Lundgren
   -------------------------------------------------------- -----------------------------------------------------
   Executive Vice President Administration                                     Michael Weedon
   -------------------------------------------------------- -----------------------------------------------------
   Senior Vice President Legal                                                  Bradley Stam
   -------------------------------------------------------- -----------------------------------------------------
   Chief Financial Officer                                                  Michael Cornelissen
   -------------------------------------------------------- -----------------------------------------------------
   Chief Information Officer                                                       Vacant
   -------------------------------------------------------- -----------------------------------------------------
   Corporate Secretary                                                         Peter Hyndman
   -------------------------------------------------------- -----------------------------------------------------
   Vice President, Human Resources                                                 Vacant
   -------------------------------------------------------- -----------------------------------------------------
   Senior Vice President, Corporate Controller                                  Dwight Hawes
   -------------------------------------------------------- -----------------------------------------------------
   Vice President & Treasurer                                                   Guy Heywood
   -------------------------------------------------------- -----------------------------------------------------
   Vice President Corporate Restructuring                                     William Stewart
   -------------------------------------------------------- -----------------------------------------------------
   Vice President Tax                                                            Roger Ryan
   -------------------------------------------------------- -----------------------------------------------------
   Vice President Investments                                                   Philip Falls
   -------------------------------------------------------- -----------------------------------------------------

</TABLE>

                                              1