Document:

ston-ex1041_14.htm

 

Exhibit 10.41

STONEMOR
AMENDED AND RESTATED
2019 LONG-TERM INCENTIVE PLAN
OPTION AGREEMENT 

		
	
Grant Date:
	
December __, 20___ (the “Grant Date”)

	
Name of Participant:
	
____________________ (the “Participant”)

	
Number of Shares Subject to Option:
	
_________ (the “Shares”)

	
Exercise Price Per Share:
	
_________ (the “Exercise Price Per Share”)

 

This OPTION AGREEMENT (this “Agreement”), dated as of the Grant Date, is entered into by and between StoneMor Inc., a Delaware corporation (the “Company”), and the Participant, pursuant to which the Participant has been granted an option (the “Option”) to purchase, for the Exercise Price Per Share, up to the number of Shares set forth above pursuant to the StoneMor Amended and Restated 2019 Long-Term Incentive Plan (as amended from time to time, the “Plan”). Capitalized terms not otherwise defined in this Agreement shall have the meaning given to them in the Plan. The Option is not intended to be subject to Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”).

1.Terms

. The terms and conditions of the Option granted hereby, to the extent not superseded by the terms and conditions contained in the Plan, are as follows:

(a)Price

. The price at which each Share may be purchased shall be the Exercise Price Per Share set forth above, subject to any adjustments that may be made pursuant to the terms of the Plan.

(b)Vesting

. Except as otherwise provided herein, the Option shall vest and become exercisable according to the following schedule, so long as the Participant remains continuously employed by the Company or an Affiliate from the Grant Date through each vesting date set forth below:

		
	
Vesting Date
	
Portion of the Option

that Vests and becomes Exercisable

	
First anniversary of the Grant Date
	
1/3

	
Second anniversary of the Grant Date
	
1/3

	
Third anniversary of the Grant Date
	
1/3

 

(c)Exercise Limitation

.  The Option may be exercised only to the extent that it is vested and may, to the extent vested, be exercised in whole or in part. Except as set forth in Section 5, (i) the Participant may not exercise the Option unless at the time of exercise the Participant has been employed by Company or an Affiliate continuously since the Grant Date, and 

 

 

(ii) the unvested portion of the Option shall terminate and be forfeited immediately on the date the Participant ceases to be an employee of the Company or an Affiliate. The Option shall be exercisable during the lifetime of the Participant only by the Participant or the person to whom the Participant’s rights shall pass by will or the laws of descent and distribution.

(d)Expiration

. The Option shall expire on the tenth (10th) anniversary of the Grant Date (the “Expiration Date”) and, notwithstanding anything contained to the contrary herein, no portion of the Option shall be exercisable after such date.

2.Exercise and Payment

.

(a)Manner of Exercise

. The Participant (or his or her representative, guardian, devisee or heir, as applicable) may exercise any portion of the Option that has become vested in accordance with the terms of this Agreement as to all or any of the Shares by giving written notice of exercise to the Company, in the form attached hereto as Exhibit A, specifying the number of Shares to be purchased and accompanying such notice with payment of the Exercise Price Per Share for each Share purchased. The election shall state the address to which dividends, notices, reports or similar information are to be sent. If the Company has elected to issue certificates for Shares, only one certificate evidencing the Shares will be issued unless the Participant otherwise requests in writing. Shares purchased upon exercise of the Option will be issued in the name of the Participant. The Participant shall not be entitled to any rights and privileges as a stockholder of the Company in respect of any of the Shares covered by the Option until such Shares shall have been purchased pursuant to the exercise of the Option by the Participant in accordance with the foregoing.

(b)Payment

. 

(i)Except as set forth in Section 2(b)(ii) hereof, upon the exercise of the Option, payment of the Exercise Price Per Share with respect to all Shares as to which the Option is being exercised shall be made, at the option of the Participant, by delivery by the Participant (or any other person permitted to exercise the Option in the event of the Participant’s death) of (A) full payment in cash or cash equivalents (including from wages or other compensation payable to the Participant) or (B) the delivery of Shares (including previously owned Shares or through a broker-assisted exercise, or other reduction of the amount of Shares otherwise issuable pursuant to the Option), other property or any other legal consideration the Committee deems appropriate.

(ii)If the Participant is subject to Section 16 of the Exchange Act, the Participant acknowledges and agrees that, upon the exercise of the Option, payment of the Exercise Price Per Share shall automatically be made through a cashless exercise (i.e., “net settlement”), unless, prior to such exercise, (A) the Committee determines that, notwithstanding the foregoing, payment of the Exercise Price Per Share shall instead be made through the delivery by the Participant (or any other person permitted to exercise the Option in the event of the Participant’s death) of cash or cash equivalents (including from wages or other compensation payable to the Participant) or (B) the Committee allows the Participant (or any person permitted to exercise the Option in the event of the Participant’s death) to make other arrangements satisfactory to the Company for the satisfaction of the Exercise Price Per Share, which arrangements include the 

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delivery of Shares (including previously owned Shares or through a broker-assisted exercise, or other reduction of the amount of Shares otherwise issuable pursuant to the Option), other property, or any other legal consideration the Committee deems appropriate.

3.The Plan

. It is understood that the Plan is incorporated into this Agreement by reference and made a part of this Agreement as if fully set forth in this Agreement. In the event there shall be any conflict between the Plan and this Agreement, the terms of the Plan shall control. The Committee shall have authority to interpret this Agreement, and to correct any defect or supply any omission or reconcile any inconsistency in this Agreement, and to prescribe rules and regulations relating to the administration of the Option and other options granted under the Plan.

4.Withholding Tax

. 

(a)Subject to Section 4(b) hereof, upon and as a condition to the exercise of the Option, Participant shall be obligated to pay or make appropriate arrangements to pay applicable withholding taxes and other tax obligations relating to the exercise of the Option, which obligations may be satisfied, at the option of Participant, through (i) the delivery by the Participant (or any person permitted to exercise the Option in the event of the Participant’s death) of cash or cash equivalents (including from wages or other compensation payable to the Participant) or (ii) the delivery of Shares (including previously owned Shares, a broker-assisted sale, or other reduction of the amount of Shares otherwise issuable pursuant to the Option), other property, or any other legal consideration the Committee deems appropriate.

(b)If the Participant is subject to Section 16 of the Exchange Act, the Participant acknowledges and agrees that, upon the exercise of the Option, applicable withholding taxes and other tax obligations relating to the Option shall automatically be satisfied through a net settlement of Shares otherwise issuable or deliverable pursuant to the Option unless, prior to such exercise, (i) the Committee determines that, notwithstanding the foregoing, payment of applicable withholding taxes and other tax obligations relating to the Option shall instead be made through the delivery by the Participant (or any person permitted to exercise the Option in the event of the Participant’s death) of cash or cash equivalents (including from wages or other compensation payable to the Participant) or (ii) the Committee allows the Participant (or any person permitted to exercise the Option in the event of the Participant’s death) to make other arrangements satisfactory to the Company or its Affiliate for the satisfaction of obligations for the payment of withholding taxes and other tax obligations relating to the Option, which arrangements include the delivery of Shares (including previously owned Shares or a broker-assisted sale), other property, or any other legal consideration the Committee deems appropriate.

(c)If any such tax obligations are satisfied through net settlement or the surrender of owned Shares, the maximum number of Shares that may be so withheld (or surrendered) shall be the number of Shares that have an aggregate Fair Market Value on the date of withholding or surrender equal to the aggregate amount of such tax liabilities determined based on the greatest withholding rates for federal, state, local and/or foreign tax purposes, including payroll taxes, that may be utilized without creating adverse accounting treatment for Company or its Affiliates with respect to such Award, as determined by the Committee. 

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(d)The Participant acknowledges that there may be adverse tax consequences upon the vesting, exercise or settlement of the Award or disposition of the underlying Shares and that the Participant has been advised, and hereby is advised, to consult a tax advisor prior to such vesting, exercise or settlement. The Participant represents that he is in no manner relying on the Board, the Committee, the Company or any of their respective Affiliates or any of their respective managers, directors, officers, employees or authorized representatives (including, without limitation, attorneys, accountants, consultants, bankers, lenders, prospective lenders and financial representatives) for tax advice or an assessment of such tax consequences.

5.Termination; Change of Control

.

(a)Termination

. Subject to Section 5(b), if the Participant’s employment with the Company or its Affiliates shall be terminated by the Company or such Affiliate or by the Participant for any reason, then the Participant shall be entitled to exercise the Option (only to the extent vested) for a period of 90 calendar days following the date of the termination of such employment.

(b)Change of Control

. Notwithstanding anything contained herein to the contrary, upon the consummation of a Change of Control on or before the termination of the Participant’s employment with the Company or its Affiliates, the Option shall immediately become fully vested and be fully exercisable and remain exercisable until the expiration date of the Option regardless of whether the Participant’s employment is terminated following such Change of Control.

6.Non-Transferability

. During the lifetime of the Participant, the Option may not be sold, pledged, assigned or transferred in any manner other than by will or the laws of descent and distribution, unless and until the Shares underlying the Option have been exercised and issued, and all restrictions applicable to such Shares have lapsed.  Neither the Option nor any interest or right therein shall be liable for the debts, contracts or engagements of the Participant or his or her successors in interest or shall be subject to disposition by transfer, alienation, anticipation, pledge, encumbrance, assignment or any other means, whether such disposition be voluntary or involuntary or by operation of law by judgment, levy, attachment, garnishment or any other legal or equitable proceedings (including bankruptcy), and any attempted disposition thereof shall be null and void and of no effect, except to the extent that such disposition is permitted by the preceding sentence.

7.Compliance with Applicable Law

. Notwithstanding any provision of this Agreement to the contrary, the issuance of Shares hereunder following each exercise of the Option will be subject to compliance with all applicable requirements of applicable law with respect to such securities and with the requirements of any stock exchange or market system upon which the Shares may then be listed.  No Shares will be issued hereunder if such issuance would constitute a violation of any applicable law or regulation or the requirements of any stock exchange or market system upon which the Shares may then be listed.  In addition, Shares will not be issued hereunder unless (a) a registration statement under the Securities Act is in effect at the time of such issuance with respect to the Shares to be issued or (b) in the opinion of legal counsel to the Company, the Shares to be issued are permitted to be issued in accordance with the terms of an applicable exemption from the registration requirements of the Securities Act.  The inability of the Company 

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to obtain from any regulatory body having jurisdiction the authority, if any, deemed by the Company’s legal counsel to be necessary for the lawful issuance and sale of any Share hereunder will relieve the Company of any liability in respect of the failure to issue such Shares as to which such requisite authority has not been obtained.  As a condition to any issuance of Shares hereunder, the Company may require the Participant to satisfy any requirements that may be necessary or appropriate to evidence compliance with any applicable law or regulation and to make any representation or warranty with respect to such compliance as may be requested by the Company.

8.Rights as a Stockholder

. The Participant shall have no rights as a stockholder of the Company with respect to any Shares covered by the Option unless and until the Participant has become the holder of record of such Shares, and no adjustments shall be made for distributions in cash or other property, dividends or other rights in respect of any such Shares, except as otherwise specifically provided for in the Plan or this Agreement and as determined by the Board or the Committee, as applicable.

9.Execution of Receipts and Releases

.  Any issuance or transfer of Shares or other property to Participant or Participant’s legal representative, heir, legatee or distributee, in accordance with this Agreement shall be in full satisfaction of all claims of such person hereunder.  As a condition precedent to such payment or issuance, the Company may require the Participant or the Participant’s legal representative, heir, legatee or distributee to execute (and not revoke within any time provided to do so) a release and receipt therefor in such form as it shall determine appropriate; provided, however, that any review period under such release will not modify the date of exercise with respect to purchased Shares.

10.No Right to Continued Employment or Awards

. Nothing in the adoption of the Plan, nor the award of the Option thereunder pursuant to this Agreement, shall confer upon the Participant the right to continued employment by the Company or any Affiliate, or any other entity, or affect in any way the right of the Company or any such Affiliate, or any other entity to terminate such employment or other service relationship at any time. The grant of the Option is a one-time benefit and does not create any contractual or other right to receive a grant of Awards or benefits in lieu of Awards in the future. Any future Awards will be granted at the sole discretion of the Company.

11.Legal and Equitable Remedies

. The Participant acknowledges that a violation or attempted breach of any of the Participant’s covenants and agreements in this Agreement will cause such damage as will be irreparable, the exact amount of which would be difficult to ascertain and for which there will be no adequate remedy at law, and accordingly, the parties hereto agree that the Company and its Affiliates shall be entitled as a matter of right to an injunction issued by any court of competent jurisdiction, restraining the Participant or the affiliates, partners or agents of the Participant from such breach or attempted violation of such covenants and agreements, as well as to recover from the Participant any and all costs and expenses sustained or incurred by the Company or any Affiliate in obtaining such an injunction, including, without limitation, reasonable attorneys’ fees. The parties to this Agreement agree that no bond or other security shall be required in connection with such injunction. Any exercise by either of the parties to this Agreement of its rights pursuant to this Section 11 shall be cumulative and in addition to any other remedies to which such party may be entitled.

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12.Notices

. All notices and other communications under this Agreement shall be in writing and shall be delivered to the parties at the following addresses (or at such other address for a party as shall be specified by like notice):

If to the Company:

StoneMor Inc.

3600 Horizon Blvd.

Trevose, PA 19053, or its then current principal office

Attention: Chief Financial Officer

If to the Participant, to the address for the Participant indicated on the signature page to this Agreement (as such address may be updated by the Participant providing written notice to such effect to the Company).

Any notice that is delivered personally or by overnight courier or telecopier in the manner provided herein shall be deemed to have been duly given to the Participant when it is mailed by the Company or, if such notice is not mailed to the Participant, upon receipt by the Participant. Any notice that is addressed and mailed in the manner herein provided shall be conclusively presumed to have been given to the party to whom it is addressed at the close of business, local time of the recipient, on the fourth day after the day it is so placed in the mail.

13.Consent to Electronic Delivery; Electronic Signature

. In lieu of receiving documents in paper format, the Participant agrees, to the fullest extent permitted by law, to accept electronic delivery of any documents that the Company may be required to deliver (including, but not limited to, prospectuses, prospectus supplements, grant or award notifications and agreements, account statements, annual and quarterly reports and all other forms of communications) in connection with this and any other Award made or offered by the Company. Electronic delivery may be via an electronic mail system or by reference to a location on an intranet to which the Participant has access. The Participant hereby consents to any and all procedures the Company has established or may establish for an electronic signature system for delivery and acceptance of any such documents that the Company may be required to deliver, and agrees that his or her electronic signature is the same as, and shall have the same force and effect as, his or her manual signature.

14.Agreement to Furnish Information

.  The Participant agrees to furnish to the Company all information requested by the Company to enable it to comply with any reporting or other requirement imposed upon the Company by or under any applicable statute or regulation.

15.Entire Agreement; Amendment

. This Agreement constitutes the entire agreement of the parties with regard to the subject matter hereof, and contains all the covenants, promises, representations, warranties and agreements between the parties with respect to the Option granted hereby; provided ̧ however, that the terms of this Agreement shall not modify and shall be subject to the terms and conditions of any employment, consulting and/or severance agreement between the Company (or an Affiliate or other entity) and the Participant in effect as of the date a determination is to be made under this Agreement.  Without limiting the scope of the preceding sentence, except as provided therein, all prior understandings and agreements, if any, among the parties hereto relating to the subject matter hereof are hereby null and void and of no further force 

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and effect.  The Committee may, in its sole discretion, amend this Agreement from time to time in any manner that is not inconsistent with the Plan; provided, however, that except as otherwise provided in the Plan or this Agreement, any such amendment that materially reduces the rights of the Participant shall be effective only if it is in writing and signed by both the Participant and an authorized officer of the Company.

16.Severability and Waiver

. If a court of competent jurisdiction determines that any provision of this Agreement is invalid or unenforceable, then the invalidity or unenforceability of such provision shall not affect the validity or enforceability of any other provision of this Agreement, and all other provisions shall remain in full force and effect. Waiver by any party of any breach of this Agreement or failure to exercise any right hereunder shall not be deemed to be a waiver of any other breach or right. The failure of any party to take action by reason of such breach or to exercise any such right shall not deprive the party of the right to take action at any time while or after such breach or condition giving rise to such rights continues.

17.Clawback

.  Notwithstanding any provision in this Agreement or the Plan to the contrary, vested Options and all Shares issued hereunder may be subject to forfeiture, repurchase, recoupment and/or cancellation if (a) such action is required by (i) applicable law, including, without limitation, the requirements of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, any Securities and Exchange Commission rule or any applicable securities exchange listing standards and/or (ii) any policy that may be adopted or amended by the Board from time to time, or (b) the Committee determines that such action is necessary because the Participant’s employment was terminated for “cause” (as defined in any employment agreement between the Company (or an Affiliate or other entity)) and the Participant or, in the absence of such a definition or agreement, the Committee determines that the Participant engaged in any act that materially adversely affected the reputation or business activities of the Company or its Affiliates or was convicted of a felony (other than traffic offenses) or any crime involving fraud, embezzlement, theft, or moral turpitude that was damaging or detrimental, or potentially damaging or detrimental, to the Company or its Affiliates.

18.Governing Law

. THE VALIDITY, CONSTRUCTION, INTERPRETATION AND EFFECT OF THIS AGREEMENT SHALL EXCLUSIVELY BE GOVERNED BY AND DETERMINED IN ACCORDANCE WITH THE LAW OF THE COMMONWEALTH OF PENNSYLVANIA (WITHOUT GIVING EFFECT TO THE CONFLICTS OF LAW PRINCIPLES THEREOF).

19.Arbitration

. Any dispute or disagreement with respect to any portion of this Agreement or its validity, construction, meaning, performance, or Participant’s rights hereunder shall be finally settled by binding confidential arbitration before a single arbitrator in accordance with the Commercial Arbitration Rules of the American Arbitration Association (the “AAA”) then in effect and this Section 19. Any arbitration commenced by either party shall be held in Philadelphia, Pennsylvania. The decision of the arbitrator shall explain the basis for any award in reasonable detail and in writing. Any award of the arbitrator shall be final and binding, and shall not be appealable upon any grounds other than as permitted pursuant to the Federal Arbitration Act. The award, in the arbitrator’s discretion, may include reasonable attorney’s fees and costs. Judgment on the award may be entered, confirmed and enforced in any court of competent jurisdiction. The Participant and the Company acknowledge and agree that in connection with any 

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such arbitration, the AAA filing fee, arbitrator’s costs and related AAA administrative expenses shall be borne by the Company. THE PARTICIPANT HEREBY WAIVES ANY RIGHT TO A JURY TRIAL.

20.Successors and Assigns

. The Company may assign any of their rights under this Agreement without the Participant’s consent.  This Agreement will be binding upon and inure to the benefit of the successors and assigns of the Company.  Subject to the restrictions on transfer set forth herein and in the Plan, this Agreement will be binding upon the Participant and the Participant’s beneficiaries, executors, administrators and the person(s) to whom the Option may be transferred by will or the laws of descent or distribution.

21.Headings

. Headings are for convenience only and are not deemed to be part of this Agreement.

22.Counterparts

. This Agreement may be executed in one or more counterparts, each of which shall constitute an original and all of which together shall constitute one instrument. Delivery of an executed counterpart of this Agreement by facsimile or portable document format (.pdf) attachment to electronic mail shall be effective as delivery of a manually executed counterpart of this Agreement.

23.Section 409A

.  Notwithstanding anything herein or in the Plan to the contrary, the Option is intended to be exempt from the applicable requirements of Section 409A of the Code and the 409A Regulations and this Agreement shall be construed and interpreted in accordance with such intent. Notwithstanding the foregoing, the Company and its Affiliates make no representations that the Option provided under this Agreement is exempt from or compliant with Section 409A of the Code and the 409A Regulations and in no event shall the Company or any of its Affiliates be liable for all or any portion of any taxes, penalties, interest or other expenses that may be incurred by the Participant on account of non-compliance with the Section 409A of the Code and the 409A Regulations.

[Signature Page Follows]

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IN WITNESS WHEREOF, the parties hereto, intending to be legally bound hereby, have executed this Agreement as of the Grant Date.

STONEMOR INC.

By:

Austin K. So

SVP, CLO & Secretary

PARTICIPANT:

 

__________________________________

Address:

 

 

 

 

 

 

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EXHIBIT A

OPTION EXERCISE NOTICE

StoneMor Inc.

3600 Horizon Blvd.

Trevose, PA 19053

Attention: Chief Financial Officer

I hereby elect to exercise the Option granted in the Option Agreement described below (the “Agreement”) pursuant to the StoneMor Amended and Restated 2019 Long-Term Incentive Plan (as amended from time to time, the “Plan”), with respect to the number of Shares described below (terms capitalized but not defined in this notice are used as defined in the Agreement or the Plan, as applicable):

Grant Date:

Participant:

Number of Shares for which the Option will be exercised:

Exercise Price:

Per Share:$

Total:  $

Manner of Payment (if applicable):

_____  Cash

_____ Net Settlement

_____ Delivery of Other Shares

Withholding Taxes to be satisfied (if applicable):

_____ in Cash

_____ by Net Settlement

_____ by Delivery of Other Shares

In connection with this exercise, and in order to fulfill the requirements of the Agreement and the Plan, I represent and warrant to and agree with the Company as follows:

1.Securities Law Matters

. I understand that the Company and its officers are relying upon the accuracy and completeness of the information set forth herein in complying with 

A-1

 

their obligations under applicable securities laws in connection with the sale to me of the Shares for which the Option is being exercised and that the Company is not required to sell such Shares to me unless it can do so in compliance with all applicable securities laws.

2.Survival of Covenants

. I understand and agree that the provisions of the Plan and the Agreement will survive the issuance of Shares to me and that I will continue to be bound thereby.

[Signature Page Follows]

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THIS OPTION EXERCISE NOTICE is executed as of _______________, 20___.

PARTICIPANT

Signature:

Print name:

Date:

Address:

A-3ston-ex1042_15.htm

 

Exhibit 10.42

RESTRICTED STOCK AGREEMENT

UNDER THE

STONEMOR AMENDED AND RESTATED 
2019 LONG-TERM INCENTIVE PLAN

This Restricted Stock Agreement (the “Agreement”) entered into as of ______________, 20___ (the “Agreement Date”), by and between StoneMor Inc. (together with its successors and assigns, the “Company”), and ___________________, an employee of the Company (the “Participant”).

BACKGROUND:

In order to make certain awards to key employees, directors and consultants of the Company and its Affiliates, the Company maintains the StoneMor Amended and Restated 2019 Long-Term Incentive Plan (as amended from time to time, the “Plan”). The Plan is administered by a Committee (as defined in the Plan) of the Board of Directors (“Board”) of the Company. The Committee has determined to grant to the Participant, pursuant to the terms and conditions of the Plan, an award (the “Award”) of restricted shares of the Company’s common stock (the “Shares”), conditioned on satisfying time vesting conditions set forth in this Agreement. The Participant has determined to accept such Award. Any initially capitalized terms and phrases used in this Agreement, but not otherwise defined herein, shall have the respective meanings ascribed to them in the Plan.

NOW, THEREFORE, the Company and the Participant, each intending to be legally bound hereby, agree as follows:

Article 1
AWARD OF RESTRICTED SHARES

1.1Grant of Restricted Shares and Lapse of Restrictions

. The Participant is hereby granted the following Shares under the Plan, conditioned on satisfying the applicable vesting conditions contained herein during the Restricted Period, which will permit the Participant receive the following number of Shares of the Company

		
	
Grant Date
	
______________, 20__

	
Total Number of Shares
	
__________ Shares

The Shares shall vest in three equal consecutive annual installments, commencing on the three first anniversary of the Grant Date.  Provided that the conditions of this Agreement are satisfied, the Restricted Period shall end on the third anniversary of the Grant Date

Notwithstanding the forgoing, in the event of a Change of Control, all Shares shall become fully vested as of the date of such Change in Control.

Certificates for Shares shall be issued to the Participant upon the vesting of any Shares, subject to the provisions of the Plan, including, but not limited to, Sections 6(d) and 8(f) of the 

 

Plan, and further subject to the Participant paying, or making suitable arrangements to pay, all applicable foreign, federal, state and local taxes, as more fully provided in Section 2.3 hereof.

1.2Forfeiture

. All unvested Shares hereunder are subject to the forfeiture provisions of Section 1.4 hereof and to the clawback provision referenced in Section 2.2 hereof.

1.3Stock Dividend Rights (“SDRs”)

. The unvested Shares shall be entitled to receive dividends paid by the Company to holders of common stock. Any SDR payments will be made to the Participant on or promptly following the date on which the dividends are otherwise paid to the holders of common stock; provided, however, in no event shall the dividend payment be made later than 30 days following the date on which the Company pays such dividends to the holders of common stock generally.

1.4Forfeiture of Unvested Shares Upon Termination of Employment

. In the event of the termination of the employment of the Participant (whether voluntary or involuntary and regardless of the reason for the termination, or for no reason whatsoever) with the Company or its Affiliates, all Shares which have not vested on the date of such termination shall be deemed to be automatically forfeited, unless the Participant’s employment is on that date transferred to an Affiliate of the Company. If a Participant’s employment is with an Affiliate and that entity ceases to be an Affiliate, the Participant’s employment will be deemed to have terminated when the entity ceases to be an Affiliate unless the Participant transfers employment to the Company, or one of its remaining Affiliates. Nothing contained herein shall be deemed to amend or otherwise modify any employment agreement between the Company and the Participant.

1.5Nonalienation of Benefits

. Participant shall not have the right to sell, assign, transfer or otherwise convey or encumber in whole or in part the unvested Shares under this Agreement, and the right to receive any payment hereunder shall not be subject to attainment, lien or other involuntary encumbrance.

Article 2
GENERAL PROVISIONS

2.1No Right Of Continued Service

. The receipt of this Award does not give the Participant, and nothing in the Plan or in this Agreement shall confer upon the Participant, any right to continue in the employment of the Company or any of its Affiliates. Nothing in the Plan or in this Agreement shall affect any right which the Company or any of its Affiliates may have to terminate the employment of the Participant.

2.2Clawback

. The Shares and related SDRs are subject to clawback under any clawback policies which are adopted by the Committee, as amended from time to time, including, but not limited to, clawback listing requirements of the New York Stock Exchange imposed by SEC rules adopted pursuant to Section 954 of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.

2.3Tax Withholding; Section 83(b) Election

. 

(a)The Participant is responsible to pay to the Company, or make suitable arrangements to pay, all applicable foreign, federal, state and local tax withholding as a condition 

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to receiving certificates for the vested Shares and as a condition to receiving payment of SDRs. Subject to Sections 2.3(b) and 2.3(c) below, such tax obligations shall be satisfied by payment of cash or cash equivalents (including from wages or other compensation payable to the Participant).. 

(b)Provided that the Participant has not made an election under Section 83(b) of the Code, in order to satisfy any such tax obligations, and subject to Section 2.3(c) hereof,  the Participant may, in lieu of paying such obligations in cash or cash equivalents (including from wages or other compensation payable to the Participant), authorize the Company to withhold Shares having a Fair Market Value as of the date on which such tax withholding obligations are payable by the Participant equal to the amount of such obligations.

(c)Provided that the Participant has not made an election under Section 83(b) of the Code, if the Participant is subject to Section 16 of the Exchange Act, the Participant acknowledges and agrees that, applicable withholding taxes and other tax obligations relating to the vesting of any Shares shall automatically be satisfied through a net settlement of Shares otherwise issuable or deliverable pursuant to such vesting unless, prior to such vesting, (i) the Committee determines that, notwithstanding the foregoing, payment of applicable withholding taxes and other tax obligations relating to the Shares shall instead be made through the delivery by the Participant of cash or cash equivalents (including from wages or other compensation payable to the Participant) or (ii) the Committee allows the Participant to make other arrangements satisfactory to the Company or its Affiliate for the satisfaction of obligations for the payment of withholding taxes and other tax obligations relating to the Shares.

2.4Administration

. Pursuant to the Plan, the Committee is vested with conclusive authority to interpret and construe the Plan, to adopt rules and regulations for carrying out the Plan, and to make determinations with respect to all matters relating to this Agreement, the Plan and awards made pursuant thereto. The authority to manage and control the operation and administration of this Agreement shall be likewise vested in the Committee, and the Committee shall have all powers with respect to this Agreement as it has with respect to the Plan. Any interpretation of this Agreement by the Committee, and any decision made by the Committee with respect to this Agreement, shall be final and binding and conclusive in the absence of clear and convincing evidence that such decision was made in bad faith.

2.5Effect of Plan; Construction

. The entire text of the Plan is expressly incorporated herein by this reference and so forms a part of this Agreement. In the event of any inconsistency or discrepancy between the provisions of this Agreement and the terms and conditions of the Plan under which the Shares are granted, the provisions of the Plan shall govern and prevail. The Shares and this Agreement are each subject in all respects to, and the Company and the Participant each hereby agree to be bound by, all of the terms and conditions of the Plan, as the same may have been amended from time to time in accordance with its terms; provided, however, that no such amendment shall deprive the Participant, without the Participant’s consent, of any rights earned or otherwise due to the Participant hereunder.

2.6Amendment, Supplement or Waiver

. This Agreement shall not be amended, supplemented, or waived in whole or in part, except by an instrument in writing executed by the parties to this Agreement.

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2.7Captions

. The captions at the beginning of each of the numbered Articles and Sections herein are for reference purposes only and will have no legal force or effect. Such captions will not be considered a part of this Agreement for purposes of interpreting, construing or applying this Agreement and will not define, limit, extend, explain or describe the scope or extent of this Agreement or any of its terms and conditions.

2.8Governing Law

. THE VALIDITY, CONSTRUCTION, INTERPRETATION AND EFFECT OF THIS AGREEMENT SHALL EXCLUSIVELY BE GOVERNED BY AND DETERMINED IN ACCORDANCE WITH THE LAW OF THE COMMONWEALTH OF PENNSYLVANIA (WITHOUT GIVING EFFECT TO THE CONFLICTS OF LAW PRINCIPLES THEREOF).

2.9Notices

. All notices, requests and demands to or upon the respective parties hereto to be effective shall be in writing, sent by facsimile, by overnight courier or by registered or certified mail, postage prepaid and return receipt requested. Notices shall be deemed to have been duly given or made upon actual receipt by the party to which the notice is addressed. Such communications shall be addressed and directed to the parties listed below (except where this Agreement expressly provides that it be directed to another) as follows, or to such other address or recipient for a party as may be hereafter notified by such party hereunder:

(a)if to the Partnership or Company:

StoneMor Inc.
3600 Horizon Blvd.
Trevose, PA  19053, or its then current principal office 
Attention:  Chief Financial Officer

	
 
	
(b)
	
if to the Participant to the address for the Participant indicated on the signature page to this Agreement (as such address may be updated by the Participant providing written notice to such effect to the Company): 

2.10Severability

. If any provision hereof is found by a court of competent jurisdiction to be prohibited or unenforceable, it shall, as to such jurisdiction, be ineffective only to the extent of such prohibition or unenforceability, and such prohibition or unenforceability shall not invalidate the balance of such provision to the extent it is not prohibited or unenforceable, nor invalidate the other provisions hereof.

2.11Entire Agreement; Counterparts; Construction

. This Agreement constitutes the entire understanding and supersedes any and all other agreements, oral or written, between the parties hereto, in respect of the subject matter of this Agreement, and embodies the entire understanding of the parties with respect to the subject matter hereof. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original against any party whose signature appears thereon. The rule of construction that ambiguities in a document are construed against the draftsperson shall not apply to this Agreement.

2.12Binding Agreement

. The terms and conditions of this Agreement shall be binding upon, and inure to the benefit of, the estate, heirs, beneficiaries and other representatives of the 

4

 

Participant. The terms and conditions of this Agreement shall be binding upon the Company and its successors and assigns.

2.13Arbitration

. Any dispute or disagreement with respect to any portion of this Agreement or its validity, construction, meaning, performance, or Participant’s rights hereunder shall be finally settled by binding confidential arbitration before a single arbitrator in accordance with the Commercial Arbitration Rules of the American Arbitration Association (the “AAA”) then in effect and this Section 2.13. Any arbitration commenced by either party shall be held in Philadelphia, Pennsylvania. The decision of the arbitrator shall explain the basis for any award in reasonable detail and in writing. Any award of the arbitrator shall be final and binding, and shall not be appealable upon any grounds other than as permitted pursuant to the Federal Arbitration Act. The award, in the arbitrator’s discretion, may include reasonable attorney’s fees and costs. Judgment on the award may be entered, confirmed and enforced in any court of competent jurisdiction. The Participant and the Company acknowledge and agree that in connection with any such arbitration, the AAA filing fee, arbitrator’s costs and related AAA administrative expenses shall be borne by the Company. THE PARTICIPANT HEREBY WAIVES ANY RIGHT TO A JURY TRIAL.

2.14Signatures

. This Agreement may be signed in counterparts, each of which shall be deemed an original, with the same effect as if signatures thereto and hereto were upon the same instrument. Signatures delivered by facsimile (including, without limitation, by “pdf”) shall be effective for this purpose.

IN WITNESS WHEREOF, the parties hereto, intending to be legally bound hereby, have executed this Agreement as of the Agreement Date.

STONEMOR INC.

By:

Austin K. So

Senior Vice President, Chief Legal Officer and Secretary

 

 

The Participant hereby acknowledges receipt of a copy of the foregoing Restricted Share Agreement and the Plan, and having read them, hereby signifies the Participant’s understanding of, and the Participant’s agreement with, their terms and conditions. The Participant hereby accepts this Restricted Share Agreement in full satisfaction of any previous written or verbal promises made to the participant by the Company or any of its Affiliates with respect to this particular award under the Plan.

_____________________________

 

Name:________________________Date:______________________

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