Document:

Exhibit 10.2

 

INDEMNIFICATION AGREEMENT

 

This Indemnification Agreement, dated as of
June 27, 2019, is made by and between Westamerica Bank, a California banking corporation (the “Bank”),
and [•] (the “Indemnitee”).

 

WHEREAS, it is essential to the Bank to retain
and attract as directors, officers and employees the most capable persons available;

 

WHEREAS, the Indemnitee serves as an “agent”
(as such term is defined in Section 317 of the California Corporations Code) of the Bank;

 

WHEREAS, the Bank and the Indemnitee recognize
the increased risk of litigation and other claims being asserted against directors, officers and employees of companies in today’s
environment;

 

WHEREAS, Section 317 of the California Corporations
Code, the Bank’s Articles of Incorporation (“Articles of Incorporation”) and the Bank’s Bylaws (“Bylaws”)
authorize the Bank to indemnify and advance expenses to its agents to the extent provided therein, and the Indemnitee serves as
an agent of the Bank, in part, in reliance on such provisions;

 

WHEREAS, the Bank has determined that its inability
to retain and attract as directors, officers and employees the most capable persons would be detrimental to the interests of the
Bank, and that the Bank therefore should seek to assure such persons that indemnification and insurance coverage will be available
in the future; and

 

WHEREAS, in recognition of the Indemnitee’s
need for substantial protection against personal liability in order to enhance the Indemnitee’s continued service to the
Bank in an effective manner and the Indemnitee’s reliance on the Bank’s Articles of Incorporation and Bylaws, and in
part to provide the Indemnitee with specific contractual assurance that the protection promised by the Bank’s Articles of
Incorporation and Bylaws will be available to the Indemnitee (regardless of, among other things, any amendment to or revocation
of the applicable provisions of the Bank’s Articles of Incorporation and Bylaws or any change in the composition of the governing
bodies of the Bank or any acquisition transaction relating to the Bank), the Bank wishes to provide in this Agreement for the indemnification
of and the advancing of expenses to the Indemnitee to the fullest extent (whether partial or complete) permitted by law and as
set forth in this Agreement, and, to the extent insurance is maintained, for the continued coverage of the Indemnitee under the
directors’ and officers’ liability insurance policy of the Bank.

 

NOW, THEREFORE, in consideration of the premises
and of the Indemnitee continuing to serve the Bank directly or, on its behalf or at its request, as an officer, director, manager,
member, partner, fiduciary or trustee of, or in a similar capacity with, another Person (as defined below) or any employee benefit
plan, and intending to be legally bound hereby, the parties hereto agree as follows:

 

22.              
Certain Definitions. In addition to terms defined elsewhere herein, the following terms have the following meanings when
used in this Agreement:

 

(a)               
Agreement: means this Indemnification Agreement, as amended from time to time hereafter.

 

     

     

    

(b)               
Board of Directors: means the Board of Directors of the Bank.

 

(c)               
Claim: means any threatened, asserted, pending or completed civil, criminal, administrative, investigative or other action,
suit or proceeding of any kind whatsoever, including any arbitration or other alternative dispute resolution mechanism, or any
appeal of any kind thereof, or any inquiry or investigation, whether instituted by the Bank, any governmental agency or any other
party, that the Indemnitee in good faith believes might lead to the institution of any such action, suit or proceeding, whether
civil, criminal, administrative, investigative or other, including any arbitration or other alternative dispute resolution mechanism.

 

(d)               
Indemnifiable Expenses: means (i) all expenses and liabilities, including judgments, fines, penalties, interest, amounts
paid in settlement with the approval of the Bank, and counsel fees and disbursements (including, without limitation, experts’
fees, court costs, retainers, transcript fees, duplicating, printing and binding costs, as well as telecommunications, postage
and courier charges) paid or incurred in connection with investigating, defending, being a witness in or participating in (including
on appeal), or preparing to investigate, defend, be a witness in or participate in, any Claim relating to any Indemnifiable Event
by reason of the fact that Indemnitee is, was or has agreed to serve as a director, officer, employee or agent of the Bank, or
is or was serving or has agreed to serve on behalf of or at the request of the Bank as a director, officer, manager, member, partner,
fiduciary, trustee or in a similar capacity of another Person, or by reason of any action alleged to have been taken or omitted
in any such capacity, whether occurring before, on or after the date of this Agreement (any such event, an “Indemnifiable
Event”), (ii) any liability pursuant to a loan guaranty (other than a loan guaranty given in a personal capacity) or
otherwise, for any indebtedness of the Bank or any subsidiary of the Bank, including, without limitation, any indebtedness which
the Bank or any subsidiary of the Bank has assumed or taken subject to, and (iii) any liabilities which an Indemnitee incurs as
a result of acting on behalf of the Bank (whether as a fiduciary or otherwise) in connection with the operation, administration
or maintenance of an employee benefit plan or any related trust or funding mechanism (whether such liabilities are in the form
of excise taxes assessed by the United States Internal Revenue Service, penalties assessed by the United States Department of Labor,
restitutions to such a plan or trust or other funding mechanism or to a participant or beneficiary of such plan, trust or other
funding mechanism, or otherwise).

 

(e)               
Indemnitee-Related Entities: means any corporation, limited liability company, partnership, joint venture, trust, employee
benefit plan or other enterprise (other than the Bank or any other corporation, limited liability company, partnership, joint venture,
trust, employee benefit plan or other enterprise Indemnitee has agreed, on behalf of the Bank or at the Bank’s request, to
serve as a director, officer, employee or agent and which service is covered by the indemnity described in this Agreement) from
whom an Indemnitee may be entitled to indemnification or advancement of expenses with respect to which, in whole or in part, the
Bank may also have an indemnification or advancement obligation (other than as a result of obligations under an insurance policy).

 

(f)                
Jointly Indemnifiable Claim: means any Claim for which the Indemnitee shall be entitled to indemnification from both an
Indemnitee-Related Entity and the Bank pursuant to applicable law, any indemnification agreement or the articles of incorporation,
bylaws, partnership agreement, operating agreement, certificate of formation, certificate of limited partnership or comparable
organizational documents of the Bank and an Indemnitee-Related Entity.

 

(g)               
Loss: means all losses, Claims, damages, fines, or penalties, including, without limitation, any legal or other expenses
(including, without limitation, any legal fees, judgments, fines, appeal bonds or related expenses) incurred in connection with
defending, investigating or settling any Claim, fine, penalty or similar action.

 

     

     

    

(h)               
Person: means any individual, corporation, firm, partnership, joint venture, limited liability company, estate, trust, business
association, organization, governmental entity or other entity.

 

23.              
Basic Indemnification Arrangement; Advancement of Indemnifiable Expenses.

 

(a)               
In the event that the Indemnitee was, is or becomes subject to, a party to or witness or other participant in, or is threatened
to be made subject to, a party to or witness or other participant in, a Claim by reason of (or arising in part out of) an Indemnifiable
Event, the Bank shall indemnify the Indemnitee, or cause such Indemnitee to be indemnified, to the fullest extent permitted by
the laws of the State of California in effect on the date hereof and as amended from time to time, and shall hold the Indemnitee
harmless from and against all Losses that arise by reason of (or arising in part out of) an Indemnifiable Event; provided, however,
that no change in the laws of the State of California shall have the effect of reducing the benefits available to the Indemnitee
hereunder based on the laws of the State of California as in effect on the date hereof or as such benefits may improve as a result
of amendments after the date hereof. The rights of the Indemnitee provided in this Section 2 shall include, without limitation,
the rights set forth in the other sections of this Agreement. Payments of Indemnifiable Expenses shall be made as soon as practicable
but in any event no later than twenty (20) calendar days after written demand is presented to the Bank, against any and all Indemnifiable
Expenses.

 

(b)               
Upon request by the Indemnitee, the Bank shall advance, or cause to be advanced, any and all Indemnifiable Expenses incurred by
the Indemnitee (an “Expense Advance”) on the terms and subject to the conditions of this Agreement, as soon
as practicable but in any event no later than twenty (20) calendar days after written demand, together with supporting documentation,
is presented to the Bank. The Bank shall, in accordance with such request (but without duplication), either (i) pay, or cause to
be paid, such Indemnifiable Expenses on behalf of the Indemnitee, or (ii) reimburse, or cause the reimbursement of, the Indemnitee
for such Indemnifiable Expenses. The Indemnitee’s right to an Expense Advance is absolute and shall not be subject to any
condition that the Board of Directors shall not have determined that the Indemnitee is not entitled to be indemnified under applicable
law. However, the obligation of the Bank to make an Expense Advance pursuant to this Section 2(b) shall be subject to the condition
that, if, when and to the extent that a final judicial determination is made (as to which all rights of appeal therefrom have been
exhausted or lapsed) that the Indemnitee is not entitled to be so indemnified under applicable law, the Bank shall be entitled
to be reimbursed by the Indemnitee (who hereby agrees to reimburse the Bank) for all such amounts theretofore paid (it being understood
and agreed that the foregoing agreement by the Indemnitee shall be deemed to satisfy any requirement that the Indemnitee provide
the Bank with an undertaking to repay any Expense Advance if it is ultimately determined that the Indemnitee is not entitled to
indemnification under applicable law). The Indemnitee’s undertaking to repay such Expense Advances shall be unsecured and
interest-free.

 

(c)               
Notwithstanding anything in this Agreement to the contrary, the Indemnitee shall not be entitled to indemnification or advancement
of Indemnifiable Expenses pursuant to this Agreement in connection with any Claim initiated by the Indemnitee unless (i) the Bank
has joined in or the Board of Directors of the Bank has authorized or consented to the initiation of such Claim or (ii) the Claim
is one to enforce the Indemnitee’s rights under this Agreement (including an action pursued by the Indemnitee to secure a
determination that the Indemnitee should be indemnified under applicable law).

 

(d)               
The indemnification obligations of the Bank under Section 2(a) shall be subject to the condition that the Board of Directors shall
not have determined (by majority vote of directors who are not parties to the applicable Claim) that the indemnification of the
Indemnitee is not proper in the circumstances because the Indemnitee is not entitled to be indemnified under applicable law. If
the Board of Directors determines that the Indemnitee is not entitled to be indemnified in whole or in part under applicable law,
the Indemnitee shall have the right to commence litigation in any court in the State of California having subject matter jurisdiction
thereof and in which venue is proper, seeking an initial determination by the court or challenging any such determination by the
Board of Directors or any aspect thereof, including the legal or factual bases therefor, and the Bank hereby consents to service
of process and to appear in any such proceeding. If the Indemnitee commences legal proceedings in a court of competent jurisdiction
to secure a determination that the Indemnitee should be indemnified under applicable law, any determination made by the Board of
Directors that the Indemnitee is not entitled to be indemnified under applicable law shall not be binding, the Indemnitee shall
continue to be entitled to receive Expense Advances, and the Indemnitee shall not be required to reimburse the Bank for any Expense
Advance, until a final judicial determination is made in the Claim (as to which all rights of appeal therefrom have been exhausted
or lapsed) that the Indemnitee is not entitled to be so indemnified under applicable law. Any determination by the Board of Directors
otherwise shall be conclusive and binding on the Bank and the Indemnitee.

 

     

     

    

(e)               
To the extent that the Indemnitee has been successful on the merits or otherwise in defense of any or all Claims relating in whole
or in part to an Indemnifiable Event or in defense of any issue or matter therein, including dismissal without prejudice, the Indemnitee
shall be indemnified against all Indemnifiable Expenses actually and reasonably incurred in connection therewith, notwithstanding
an earlier determination by the Board of Directors that the Indemnitee is not entitled to indemnification under applicable law.

 

(f)                
Notwithstanding anything to the contrary herein, the Bank shall not be obligated pursuant to the terms of this Agreement to indemnify
Indemnitee for any acts or omissions or transactions from which a director, officer, employee or agent may not be relieved of liability
under applicable law.

 

(g)               
Notwithstanding any other provisions contained herein, this Agreement and the rights and obligations of the parties hereto are
subject to the requirements, limitations and prohibitions set forth in state and federal laws, rules, regulations, and orders regarding
indemnification and prepayment of expenses, legal or otherwise, and liabilities, including, without limitation, Section 317 of
the California Corporations Code, Section 18(k) of the Federal Deposit Insurance Act and Part 359 of the Federal Deposit Insurance
Corporation’s Rules and Regulations and any successor regulations thereto.

 

24.              
Indemnification for Additional Expenses. The Bank shall indemnify, or cause the indemnification of, the Indemnitee against
any and all Indemnifiable Expenses and, if requested by the Indemnitee, shall advance such Indemnifiable Expenses to the Indemnitee
subject to and in accordance with Section 2, which are incurred by the Indemnitee in connection with any action brought by the
Indemnitee, the Bank or any other Person with respect to the Indemnitee’s right to: (i) indemnification or an Expense
Advance by the Bank under this Agreement or any provision of the Bank’s Articles of Incorporation and/or Bylaws and/or (ii) recovery
under any directors’ and officers’ liability insurance policies maintained by the Bank, regardless of whether the Indemnitee
ultimately is determined to be entitled to such indemnification, Expense Advance or insurance recovery, as the case may be; provided
that the Indemnitee shall be required to reimburse such Indemnifiable Expenses in the event that a final judicial determination
is made in the Claim (as to which all rights of appeal therefrom have been exhausted or lapsed) that such action brought by the
Indemnitee, or the defense by the Indemnitee of an action brought by the Bank or any other Person, as applicable, was frivolous
or in bad faith.

 

25.              
Partial Indemnity, Etc. If the Indemnitee is entitled under any provision of this Agreement to indemnification by the Bank
for some or a portion of the Indemnifiable Expenses in respect of a Claim but not, however, for all of the total amount thereof,
the Bank shall nevertheless indemnify the Indemnitee for the portion thereof to which the Indemnitee is entitled.

 

     

     

    

26.              
Burden of Proof. In connection with any determination by the Board of Directors, any court or otherwise as to whether the
Indemnitee is entitled to be indemnified hereunder, the Board of Directors or court shall presume that the Indemnitee has satisfied
the applicable standard of conduct and is entitled to indemnification, and the burden of proof shall be on the Bank or its representative
to establish, by clear and convincing evidence, that the Indemnitee is not so entitled.

 

27.              
Reliance as Safe Harbor. The Indemnitee shall be entitled to indemnification for any action or omission to act undertaken
(a) in good faith reliance upon the records of the Bank, including its financial statements, or upon information, opinions,
reports or statements furnished to the Indemnitee by the officers or employees of the Bank or any of its subsidiaries in the course
of their duties, or by committees of the Board of Directors, or by any other Person as to matters the Indemnitee reasonably believes
are within such other Person’s professional or expert competence, or (b) on behalf of the Bank in furtherance of the
interests of the Bank in good faith in reliance upon, and in accordance with, the advice of legal counsel or accountants, provided
such legal counsel or accountants were selected with reasonable care by or on behalf of the Bank. In addition, the knowledge and/or
actions, or failures to act, of any other director, officer, agent or employee of the Bank shall not be imputed to the Indemnitee
for purposes of determining the right to indemnity hereunder.

 

28.              
No Other Presumptions. For purposes of this Agreement, the termination of any Claim, action, suit or proceeding, by judgment,
order, settlement (whether with or without court approval) or conviction, or upon a plea of nolo contendere or its equivalent,
shall not create a presumption that the Indemnitee did not meet any particular standard of conduct or have any particular belief
or that a court has determined that indemnification is not permitted by applicable law. In addition, neither the failure of the
Board of Directors to have made a determination as to whether the Indemnitee has met any particular standard of conduct or had
any particular belief, nor an actual determination by the Board of Directors that the Indemnitee has not met such standard of conduct
or did not have such belief, prior to the commencement of legal proceedings by the Indemnitee to secure a judicial determination
that the Indemnitee should be indemnified under applicable law shall be a defense to the Indemnitee’s claim or create a presumption
that the Indemnitee has not met any particular standard of conduct or did not have any particular belief.

 

29.              
Nonexclusivity, Etc. The rights of the Indemnitee hereunder shall be in addition to any other rights the Indemnitee may
have under the Bank’s Articles of Incorporation and Bylaws, the laws of the State of California, or otherwise. To the extent
that a change in the laws of the State of California or the interpretation thereof (whether by statute or judicial decision) permits
greater indemnification by agreement than would be afforded currently under the Bank’s Articles of Incorporation and Bylaws,
it is the intent of the parties hereto that the Indemnitee shall enjoy by this Agreement the greater benefits so afforded by such
change. To the extent that there is a conflict or inconsistency between the terms of this Agreement and the Bank’s Articles
of Incorporation or Bylaws, it is the intent of the parties hereto that the Indemnitee shall enjoy the greater benefits regardless
of whether contained herein, in the Bank’s Articles of Incorporation or Bylaws. No amendment or alteration of the Bank’s
Articles of Incorporation or Bylaws or any other agreement shall adversely affect the rights provided to Indemnitee under this
Agreement.

 

30.              
Liability Insurance. The Bank shall use its reasonable best efforts to purchase and maintain a policy or policies of insurance
with reputable insurance companies with A.M. Best ratings of “A” or better, providing Indemnitee with coverage for
any liability asserted against, or incurred by, Indemnitee or on Indemnitee’s behalf by reason of the fact that Indemnitee
is or was or has agreed to serve as a director, officer, employee or agent of the Bank, or is or was serving or has agreed to serve
on behalf of or at the request of the Bank as a director, officer, employee or agent (which, for purposes hereof, shall include
a trustee, fiduciary, partner or manager or similar capacity) of another corporation, limited liability company, partnership, joint
venture, trust, employee benefit plan or other enterprise, or arising out of Indemnitee’s status as such, whether or not
the Bank would have the power to indemnify Indemnitee against such liability under the provisions of this Agreement. Such insurance
policies shall have coverage terms and policy limits at least as favorable to Indemnitee as the insurance coverage provided to
any other director or officer of the Bank. If the Bank has such insurance in effect at the time the Bank receives from Indemnitee
any notice of the commencement of an action, suit or proceeding, the Bank shall give prompt notice of the commencement of such
action, suit or proceeding to the insurers in accordance with the procedures set forth in the policy. The Bank shall thereafter
take all necessary or desirable action to cause such insurers to pay, on behalf of Indemnitee, all amounts payable as a result
of such proceeding in accordance with the terms of such policy.

 

     

     

    

31.              
Amendments, Etc. No supplement, modification or amendment of this Agreement shall be binding unless executed in writing
by both of the parties hereto. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver
of any other provisions hereof (whether or not similar) nor shall such waiver constitute a continuing waiver.

 

32.              
Subrogation. Subject to Section 12, in the event of payment by the Bank under this Agreement, the Bank shall be subrogated
to the extent of such payment to all of the rights of recovery of the Indemnitee with respect to any insurance policy. Indemnitee
shall execute all papers reasonably required and shall do everything that may be reasonably necessary to secure such rights, including
the execution of such documents necessary to enable the Bank effectively to bring suit to enforce such rights. The Bank shall pay
or reimburse all expenses actually and reasonably incurred by Indemnitee in connection with such subrogation.

 

33.              
Jointly Indemnifiable Claims. Given that certain Jointly Indemnifiable Claims may arise due to the relationship between
the Indemnitee-Related Entities and the Bank and the service of the Indemnitee as a director and/or officer of the Bank at the
request of the Indemnitee-Related Entities, the Bank acknowledges and agrees that the Bank shall be fully and primarily responsible
for the payment to the Indemnitee in respect of indemnification and advancement of Indemnifiable Expenses in connection with any
such Jointly Indemnifiable Claim, pursuant to and in accordance with the terms of this Agreement, irrespective of any right of
recovery the Indemnitee may have from the Indemnitee-Related Entities. Under no circumstance shall the Bank be entitled to any
right of subrogation or contribution by the Indemnitee-Related Entities and no right of recovery the Indemnitee may have from the
Indemnitee-Related Entities shall reduce or otherwise alter the rights of the Indemnitee or the obligations of the Bank hereunder.
In the event that any of the Indemnitee-Related Entities shall make any payment to the Indemnitee in respect of indemnification
or advancement of expenses with respect to any Jointly Indemnifiable Claim, the Indemnitee-Related Entity making such payment shall
be subrogated to the extent of such payment to all of the rights of recovery of the Indemnitee against the Bank under the terms
of this Agreement, and the Indemnitee shall execute all papers reasonably required and shall do all things that may be reasonably
necessary to secure such rights, including the execution of such documents as may be necessary to enable the Indemnitee-Related
Entities effectively to bring suit to enforce such rights. Each of the Indemnitee-Related Entities shall be third-party beneficiaries
with respect to this Section 12, entitled to enforce this Section 12 against the Bank as though each such Indemnitee-Related Entity
were a party to this Agreement.

 

34.              
No Duplication of Payments. Subject to Section 12 hereof, the Bank shall not be liable under this Agreement to make any
payment in connection with any Claim made against the Indemnitee to the extent the Indemnitee has otherwise actually received payment
(under any insurance policy, any provision of the Bank’s Articles of Incorporation and Bylaws, or otherwise) of the amounts
otherwise indemnifiable hereunder.

 

     

     

    

35.              
Defense of Claims. The Bank shall be entitled to participate in the defense of any Claim relating to an Indemnifiable Event
or to assume the defense thereof, with counsel reasonably satisfactory to the Indemnitee; provided that if the Indemnitee reasonably
believes, after consultation with counsel selected by the Indemnitee, that (i) the use of counsel chosen by the Bank to represent
the Indemnitee would present such counsel with an actual or potential conflict of interest, (ii) the named parties in any such
Claim (including any impleaded parties) include both (A) the Bank or any subsidiary of the Bank and (B) the Indemnitee, and the
Indemnitee concludes that there may be one or more legal defenses available to him that are different from or in addition to those
available to the Bank or any subsidiary of the Bank or (iii) any such representation by such counsel would be precluded under the
applicable standards of professional conduct then prevailing, then the Indemnitee shall be entitled to retain separate counsel
(but not more than one law firm plus, if applicable, local counsel in respect of any particular Claim) at the Bank’s expense.
The Bank shall not be liable to the Indemnitee under this Agreement for any amounts paid in settlement of any Claim relating to
an Indemnifiable Event effected without the Bank’s prior written consent. The Bank shall not, without the prior written consent
of the Indemnitee, effect any settlement of any Claim relating to an Indemnifiable Event which the Indemnitee is or could have
been a party unless such settlement solely involves the payment of money and includes a complete and unconditional release of the
Indemnitee from all liability on all claims that are the subject matter of such Claim. Neither the Bank nor the Indemnitee shall
unreasonably withhold its or his consent to any proposed settlement; provided that the Indemnitee may withhold consent to any settlement
that does not provide a complete and unconditional release of the Indemnitee. To the fullest extent permitted by California law,
the Bank’s assumption of the defense of a Claim pursuant to this Section 14 will constitute an irrevocable acknowledgement
by the Bank that any Indemnifiable Expenses incurred by or for the account of Indemnitee incurred in connection therewith are indemnifiable
by the Bank under Section 2 of this Agreement.

 

36.              
Binding Effect, Etc. This Agreement shall be binding upon and inure to the benefit of and be enforceable by the parties
hereto and their respective successors, (including any direct or indirect successor by purchase, merger, consolidation or otherwise
to all or substantially all of the business and/or assets of the Bank), assigns, spouses, heirs, executors and personal and legal
representatives. The Bank shall require and cause any successor(s) (whether directly or indirectly, whether in one or a series
of transactions, and whether by purchase, merger, consolidation, or otherwise) to all or a significant portion of the business
and/or assets of the Bank and/or its subsidiaries (on a consolidated basis), by written agreement in form and substance reasonably
satisfactory to the Indemnitee, expressly to assume and agree to perform this Agreement in the same manner and to the same extent
that the Bank would be required to perform if no such succession had taken place; provided that no such assumption shall relieve
the Bank from its obligations hereunder and any obligations shall thereafter be joint and several. This Agreement shall continue
in effect regardless of whether the Indemnitee continues to serve as a director or officer of the Bank and/or on behalf of or at
the request of the Bank as a director, officer, manager, member, partner, fiduciary, trustee or in a similar capacity of another
Person. Except as provided in this Section 15, neither party shall, without the prior written consent of the other, assign or delegate
this Agreement or any rights or obligations hereunder.

 

37.              
Severability. If any provision or provisions of this Agreement shall be held to be invalid, illegal or unenforceable for
any reason whatsoever, (a) the validity, legality and enforceability of the remaining provisions of this Agreement (including,
without limitation, all portions of any paragraph of this Agreement containing any such provision held to be invalid, illegal or
unenforceable, that are not themselves invalid, illegal or unenforceable) shall not in any way be affected or impaired thereby
and (b) to the fullest extent possible, the provisions of this Agreement (including, without limitation, all portions of any paragraph
of this Agreement containing any such provision held to be invalid, illegal or unenforceable) shall be construed so as to give
effect to the intent manifested by the provision held invalid, illegal or unenforceable and to give effect to the terms of this
Agreement.

 

     

     

    

38.              
Specific Performance, Etc. The parties recognize that if any provision of this Agreement is violated by the parties hereto,
the Indemnitee may be without an adequate remedy at law. Accordingly, in the event of any such violation, the Indemnitee shall
be entitled, if the Indemnitee so elects, to institute proceedings, either in law or at equity, to obtain damages, to enforce specific
performance, to enjoin such violation, or to obtain any relief or any combination of the foregoing as the Indemnitee may elect
to pursue.

 

39.              
Notices. All notices, requests, consents and other communications hereunder to any party shall be deemed to be sufficient
if contained in a written document delivered in person or sent by electronic mail, nationally recognized overnight courier or personal
delivery, addressed to such party at the address set forth below or such other address as may hereafter be designated in writing
by such party to the other parties:

 

		(a)	If to the Bank, to:

 

Westamerica Bank

1108 Fifth Avenue

San Rafael, California 94901

Attn: President

E-mail: kris.irvine@westamerica.com

 

		(b)	If to the Indemnitee, to the address set forth on the signature page hereto.

 

All such notices, requests, consents and other communications shall
be deemed to have been given or made if and when received (including by overnight courier) by the parties at the above addresses
or sent by electronic transmission, with confirmation received, to the email address specified above (or at such other address
or email address for a party as shall be specified by like notice). Any notice delivered by any party hereto to any other party
hereto shall also be delivered to each other party hereto simultaneously with delivery to the first party receiving such notice.

 

40.              
Counterparts. This Agreement may be executed in counterparts, each of which shall for all purposes be deemed to be an original
but all of which together shall constitute one and the same agreement. Only one such counterpart signed by the party against whom
enforceability is sought needs to be produced to evidence the existence of this Agreement.

 

41.              
Headings. The headings of the sections and paragraphs of this Agreement are inserted for convenience only and shall not
be deemed to constitute part of this Agreement or to affect the construction or interpretation thereof.

 

42.              
Governing Law. This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of
California applicable to contracts made and to be performed in such state without giving effect to the principles of conflicts
of laws.

 

 

[SIGNATURE PAGE FOLLOWS]

 

IN WITNESS WHEREOF, the parties hereto have
executed this Agreement as of the date first above written.

 

     

     

    

WESTAMERICA BANK

By: ______________________________

Name: David L. Payne

Title: Chairman of the Board, President and Chief Executive Officer

 

______________________________

[•]

 

Name: _________________________

 

Address:

______________________________

______________________________

______________________________

 

E-mail:  _________________________EX-10.1

 Exhibit 10.1 
  

SERIES A PREFERRED UNIT 

PURCHASE AGREEMENT 
 among

 STONEMOR PARTNERS L.P. 

and 
 THE PURCHASERS PARTY
HERETO 
  

 TABLE OF CONTENTS 

 

							
	 	 	 	  	Page	 
	 ARTICLE I DEFINITIONS
	  	 	1	 
			
	 Section 1.01
	 	Definitions	  	 	1	 
	 Section 1.02
	 	Accounting Procedures and Interpretation	  	 	6	 
		
	 ARTICLE II AGREEMENT TO SELL AND PURCHASE
	  	 	6	 
			
	 Section 2.01
	 	Closing	  	 	6	 
	 Section 2.02
	 	Closing Conditions	  	 	7	 
	 Section 2.03
	 	Independent Nature of Purchasers’ Obligations and Rights	  	 	10	 
	 Section 2.04
	 	Further Assurances	  	 	10	 
		
	 ARTICLE III REPRESENTATIONS AND WARRANTIES RELATED TO THE PARTNERSHIP
	  	 	10	 
			
	 Section 3.01
	 	Existence	  	 	10	 
	 Section 3.02
	 	Capitalization and Valid Issuance of Units	  	 	11	 
	 Section 3.03
	 	General Partner	  	 	13	 
	 Section 3.04
	 	Ownership of the Subsidiaries	  	 	13	 
	 Section 3.05
	 	Partnership SEC Documents	  	 	13	 
	 Section 3.06
	 	No Material Adverse Change; Absence of Changes; Operations in the Ordinary Course	  	 	14	 
	 Section 3.07
	 	No Registration Required	  	 	14	 
	 Section 3.08
	 	No Registration Rights	  	 	14	 
	 Section 3.09
	 	Litigation; Compliance with Laws	  	 	14	 
	 Section 3.10
	 	No Default	  	 	14	 
	 Section 3.11
	 	No Conflicts	  	 	15	 
	 Section 3.12
	 	Authority; Enforceability	  	 	15	 
	 Section 3.13
	 	Approvals	  	 	15	 
	 Section 3.14
	 	Distribution Restrictions	  	 	16	 
	 Section 3.15
	 	Partnership Status	  	 	16	 
	 Section 3.16
	 	Investment Company Status	  	 	16	 
	 Section 3.17
	 	Certain Fees	  	 	16	 
	 Section 3.18
	 	No General Solicitation	  	 	16	 
	 Section 3.19
	 	No Integrated Offering	  	 	16	 
	 Section 3.20
	 	Employee Relations	  	 	17	 
	 Section 3.21
	 	Insurance	  	 	17	 
	 Section 3.22
	 	Books and Records; Sarbanes-Oxley Compliance	  	 	17	 
	 Section 3.23
	 	Listing and Maintenance Requirements	  	 	18	 
	 Section 3.24
	 	Taxes	  	 	18	 
	 Section 3.25
	 	Environmental Matters	  	 	18	 
	 Section 3.26
	 	Required Disclosures and Descriptions	  	 	18	 
	 Section 3.27
	 	Title to Property	  	 	19	 
	 Section 3.28
	 	Application of Takeover Protections; Rights Agreement	  	 	19	 
	 Section 3.29
	 	Transactions With Affiliates	  	 	19	 
	 Section 3.30
	 	Transfer Taxes	  	 	19	 

  
 i 

							
	 Section 3.31
	 	USA Patriot Act; Sanctions; Anti-Terrorism and Anti-Corruption Laws	  	 	19	 
	 Section 3.32
	 	Compliance with Cemetery Laws	  	 	19	 
	 Section 3.33
	 	No Disqualification Events	  	 	20	 
	 Section 3.34
	 	No Other Purchaser Representations	  	 	20	 
		
	 ARTICLE IV REPRESENTATIONS AND WARRANTIES OF THE PURCHASERS
	  	 	20	 
			
	 Section 4.01
	 	Existence	  	 	20	 
	 Section 4.02
	 	Authorization, Enforceability	  	 	20	 
	 Section 4.03
	 	No Breach	  	 	20	 
	 Section 4.04
	 	Certain Fees	  	 	21	 
	 Section 4.05
	 	Unregistered Securities	  	 	21	 
	 Section 4.06
	 	Sufficient Funds	  	 	22	 
		
	 ARTICLE V COVENANTS
	  	 	22	 
			
	 Section 5.01
	 	Reporting Status	  	 	22	 
	 Section 5.02
	 	Use of Proceeds	  	 	22	 
	 Section 5.03
	 	Disclosure of Transactions	  	 	22	 
	 Section 5.04
	 	Additional Issuances of Securities	  	 	22	 
	 Section 5.05
	 	Rights Offering	  	 	25	 
	 Section 5.06
	 	Cooperation; Further Assurances	  	 	25	 
	 Section 5.07
	 	Transfer Restrictions	  	 	25	 
	 Section 5.08
	 	No Integrated Offering	  	 	25	 
	 Section 5.09
	 	Tax Estimates	  	 	25	 
	 Section 5.10
	 	UBTI	  	 	26	 
	 Section 5.11
	 	Governance Matters	  	 	26	 
	 Section 5.12
	 	Blocker Entities	  	 	26	 
		
	 ARTICLE VI INDEMNIFICATION, COSTS AND EXPENSES
	  	 	27	 
			
	 Section 6.01
	 	Indemnification by the Partnership	  	 	27	 
	 Section 6.02
	 	Indemnification by the Purchasers	  	 	27	 
	 Section 6.03
	 	Indemnification Procedure	  	 	28	 
	 Section 6.04
	 	Tax Matters	  	 	29	 
		
	 ARTICLE VII MISCELLANEOUS
	  	 	29	 
			
	 Section 7.01
	 	Expenses	  	 	29	 
	 Section 7.02
	 	Interpretation	  	 	29	 
	 Section 7.03
	 	Survival of Provisions	  	 	30	 
	 Section 7.04
	 	No Waiver; Modifications in Writing	  	 	31	 
	 Section 7.05
	 	Binding Effect	  	 	31	 
	 Section 7.06
	 	Non-Disclosure	  	 	31	 
	 Section 7.07
	 	Communications	  	 	31	 
	 Section 7.08
	 	Removal of Legend	  	 	32	 
	 Section 7.09
	 	Entire Agreement	  	 	33	 
	 Section 7.10
	 	Governing Law; Submission to Jurisdiction	  	 	33	 
	 Section 7.11
	 	Waiver of Jury Trial	  	 	33	 
	 Section 7.12
	 	Exclusive Remedy	  	 	34	 

  
 ii 

							
	 Section 7.13
	 	No Recourse Against Others	  	 	34	 
	 Section 7.14
	 	No Third-Party Beneficiaries	  	 	35	 
	 Section 7.15
	 	Execution in Counterparts	  	 	35	 

 EXHIBIT A – Form of A&R GP LLC Agreement 

EXHIBIT B – Form of Amendment to Nomination and Director Voting Agreement Amendment 

EXHIBIT C – Form of Amendment to Voting and Support Agreement 

EXHIBIT D – Form of Registration Rights Agreement 

EXHIBIT E - Form of Opinion of Vinson & Elkins L.L.P. 

EXHIBIT F – Form of Third A&R LPA 
 EXHIBIT G – Form
of Amendment to Merger Agreement 
 EXHIBIT H - Form of Officer’s Certificate 

EXHIBIT I - Form of General Partner Waiver 
 SCHEDULE A -
Purchase Price Allocation 
 SCHEDULE B – Board of Directors of General Partner 

  
 iii 

 SERIES A PREFERRED UNIT PURCHASE AGREEMENT 

This SERIES A PREFERRED UNIT PURCHASE AGREEMENT, dated as of June 27, 2019 (this “Agreement”), is
entered into by and among STONEMOR PARTNERS L.P., a Delaware limited partnership (the “Partnership”), and the purchasers set forth in Schedule A hereto (the “Purchasers”). 

WHEREAS, the Partnership desires to issue and sell to the Purchasers, and the Purchasers desire to purchase from the
Partnership, the Partnership’s Series A Preferred Units (as defined below), in accordance with the provisions of this Agreement; and 

WHEREAS, the Partnership has agreed to provide the Purchasers with certain registration rights with respect to the Conversion
Units (as defined below) underlying the Series A Preferred Units acquired pursuant hereto. 
 NOW THEREFORE, in
consideration of the mutual covenants and agreements set forth herein and for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereby agree as follows: 

ARTICLE I 
 DEFINITIONS

 Section 1.01 Definitions. As used in this Agreement, the following terms have the meanings indicated:

 “A&R GP LLC Agreement” means the Third Amended and Restated Limited Liability Company Agreement of
StoneMor GP LLC, to be entered into at the Closing, between StoneMor GP Holdings LLC and the Lead Purchaser, in the form attached hereto as Exhibit A. 

“Affiliate” means, with respect to any Person, any other Person that directly or indirectly through one or
more intermediaries controls, is controlled by or is under common control with, the Person in question. As used herein, the term “control” means the possession, direct or indirect, of the power to direct or cause the direction of the
management and policies of a Person, whether through ownership of voting securities, by contract or otherwise. For the avoidance of doubt, for purposes of this Agreement, any fund or account managed, advised or subadvised, directly or indirectly, by
a Purchaser or its Affiliates, shall be considered an Affiliate of such Purchaser. 
 “Agreement” has the
meaning set forth in the introductory paragraph of this Agreement. 
 “Amendment to Merger Agreement” has
the meaning set forth in Section 2.02(a)(iii). 
 “Amendment to Nomination and Director
Voting Agreement Amendment” means the Second Amendment to the Nomination and Director Voting Agreement, to be entered into at the Closing, among the General Partner, StonMor GP Holdings LLC, Robert B. Hellman Jr. as trustee under the Voting
and Investment Trust Agreement for the benefit of American Cemeteries Infrastructure Investors LLC, the Lead Purchaser and certain Affiliates of the Lead Purchaser, in the form attached hereto as Exhibit B. 

  
 1 

 “Amendment to Voting and Support Agreement” means the Third
Amendment to Voting and Support Agreement, to be entered into at the Closing, among the Partnership, the General Partner, the Lead Purchaser, certain Affiliates of the Lead Purchaser, Robert B. Hellman, Jr. as trustee under the Voting and Investment
Trust Agreement for the benefit of American Cemeteries Infrastructure Investors LLC and StoneMor GP Holdings LLC, in the form attached hereto as Exhibit C. 

“Basic Amount” has the meaning specified in Section 5.04(b)(i). 

“Business Day” means any day other than a Saturday, Sunday, any federal legal holiday or day on which banking
institutions in the State of New York or Commonwealth of Pennsylvania are authorized or required by Law or other governmental action to close. 

“C-Corp Shares” means the shares of common stock of StoneMor Inc.

 “C-Corporation Conversion” means the consummation of the
transactions contemplated by the A&R Merger Agreement, as may be amended or amended and restated from time to time, or such other transaction permitted by the New Indenture in which Preferred Units and Common Units of the Partnership are
exchanged for C-Corp Shares. 
 “Closing” has the meaning specified
in Section 2.01. 
 “Closing Date” has the meaning specified in
Section 2.01. 
 “Commission” means the United States Securities and Exchange
Commission. 
 “Common Units” means common units representing limited partner interests in the Partnership.

 “Contract” means any contract, agreement, indenture, note, bond, mortgage, deed of trust, loan,
instrument, lease, license, commitment or other arrangement, understanding, undertaking, commitment or obligation, whether written or oral. 

“Conversion Units” means the Common Units issuable upon conversion of the Purchased Units (without regard to
any limitation on conversion included in the Partnership Agreement). 
 “Delaware LP Act” means the
Delaware Revised Uniform Limited Partnership Act, as amended. 
 “Disqualification Event” has the meaning
specified in Section 506(d)(1) of Regulation D under the Securities Act. 
 “Exchange” means the New
York Stock Exchange. 
 “Exchange Act” means the Securities Exchange Act of 1934, as amended from time to
time, and the rules and regulations of the Commission promulgated thereunder. 

  
 2 

 “Existing Credit Agreement” means that certain Credit Agreement,
dated as of August 4, 2016, among StoneMor Operating LLC, the other borrowers party thereto, the lenders party thereto, Capital One, National Association, as administrative agent and the other agents party thereto, as amended, amended and
restated or supplemented from time to time. 
 “Existing Indenture” means that certain Indenture, dated as
of May 28, 2013, by and among the Partnership, certain Subsidiaries of the Partnership as Issuers and Guarantors party thereto from time to time and Wilmington Trust, National Association, as Trustee, as amended, amended and restated or
supplemented from time to time. 
 “Funding Obligation” means an amount equal to the Purchase Price
multiplied by the number of Purchased Units to be purchased by a Purchaser on the Closing Date, as set forth opposite such Purchaser’s name on Schedule A. 

“GAAP” means generally accepted accounting principles in the United States of America as of the date hereof,
consistently applied during the periods involved; provided that for the financial statements of the Partnership prepared as of a certain date, GAAP referenced therein shall be GAAP as of the date of such financial statements. 

“General Partner” means StoneMor GP LLC, a Delaware limited liability company and the general partner of the
Partnership. 
 “Governmental Authority” means, with respect to a particular Person, any country, state,
county, city and political subdivision in which such Person or such Person’s Property is located or which exercises valid jurisdiction over any such Person or such Person’s Property, and any court, agency, department, commission, board,
bureau or instrumentality of any of them and any monetary authority which exercises valid jurisdiction over any such Person or such Person’s Property. Unless otherwise specified, all references to Governmental Authority herein with respect to
the Partnership means a Governmental Authority having jurisdiction over the General Partner and the Partnership Entities or any of their respective Properties. 

“Incentive Distribution Rights” has the meaning specified in Section 3.02(a). 

“Indemnified Party” has the meaning specified in Section 6.03(b). 

“Indemnifying Party” has the meaning specified in Section 6.03(b). 

“Insolvent” means, with respect to any Person, (i) the present fair saleable value of such Person’s
assets is less than the amount required to pay such Person’s total indebtedness, (ii) such Person is unable to pay its debts and liabilities, subordinated, contingent or otherwise, as such debts and liabilities become absolute and matured,
(iii) such Person intends to incur or believes that it will incur debts that would be beyond its ability to pay as such debts mature or (iv) such Person has unreasonably small capital with which to conduct the business in which it is
engaged as such business is now conducted and is proposed to be conducted. 
 “Issuer Covered Person” has
the meaning specified in Section 506(d)(1) of Regulation D under the Securities Act. 

  
 3 

 “Law” means any federal, state, local or foreign order, writ,
injunction, judgment, settlement, award, decree, statute, law (including common law), rule or regulation. 
 “Lead
Purchaser” means Axar Capital Management LP or its designee. 
 “Lien” means any mortgage, claim,
encumbrance, pledge, lien (statutory or otherwise), security agreement, conditional sale or trust receipt or a lease, consignment or bailment, preference or priority, assessment, deed of trust, charge, easement, servitude or other encumbrance upon
or with respect to any property of any kind. 
 “Material Adverse Effect” means a material adverse effect
(a) on the business, property, operations, assets, liabilities (actual or contingent), operating results, prospects or financial condition of the Partnership and its Subsidiaries, taken as a whole, (b) on the ability of the Partnership or
its Subsidiaries, as applicable, to perform any of their obligations under the Transaction Documents or (c) on the validity or enforceability of any of the Transaction Documents or the rights and remedies of the Purchasers thereunder. 

“New Indenture” means the Indenture, dated as of June 27, 2019, by and among the Partnership and certain
Subsidiaries of the Partnership as Issuers and the Subsidiary Guarantors party thereto from time to time and Wilmington Trust, National Association, as Trustee and as Collateral Agent, as amended, amended and restated, or supplemented from time to
time. 
 “Notes” has the meaning set forth in Section 2.02(b)(v). 

“Notice of Issuance” has the meaning specified in Section 5.04(b). 

“Offered Securities” has the meaning specified in Section 5.04(b). 

“Offering Size” has the meaning specified in Section 5.04(d). 

“Organizational Documents” means, as applicable, an entity’s agreement or certificate of limited
partnership, limited liability company agreement, certificate of formation, certificate or articles of incorporation, bylaws or other similar organizational documents. 

“Overallotment Securities” has the meaning specified in Section 5.04(e). 

“Partnership” has the meaning set forth in the introductory paragraph of this Agreement. 

“Partnership Agreement” means Second Amended and Restated Agreement of Limited Partnership of the
Partnership, dated as of September 9, 2008, as amended to date and as may be amended from time to time in accordance with the terms thereof, including as the context requires, the Third A&R LPA. 

“Partnership Entities” means, collectively the Partnership and the Partnership’s Subsidiaries. 

“Partnership Related Parties” has the meaning specified in Section 6.01. 

  
 4 

 “Partnership SEC Documents” means the Partnership’s forms,
registration statements, reports, schedules and statements filed by it under the Exchange Act or the Securities Act, as applicable. 

“Permits” means any approvals, authorizations, consents, licenses, permits, variances, waivers, grants,
franchises, concessions, exemptions, orders, registrations or certificates of a Governmental Authority. 

“Person” means any individual, corporation, company, voluntary association, partnership, joint venture,
trust, limited liability company, unincorporated organization, government or any agency, instrumentality or political subdivision thereof or any other form of entity. 

“Price Range” has the meaning specified in Section 5.04(d). 

“Property” means any interest in any kind of property or asset, whether real, personal or mixed, or tangible
or intangible (including intellectual property rights). 
 “Pro Rata Share” has the meaning specified in
Section 5.04(b). 
 “Purchase Price” has the meaning specified in
Section 2.01. 
 “Purchased Units” has the meaning specified in
Section 2.01. 
 “Purchaser Related Parties” has the meaning specified in
Section 6.01. 
 “Purchasers” has the meaning set forth in the introductory
paragraph of this Agreement. 
 “Refinancing” means the repayment of amounts owed under the Existing Credit
Agreement and the Existing Indenture using the net proceeds of the issuance of the Preferred Units and the borrowing under the New Indenture. 

“Registration Rights Agreement” means the Registration Rights Agreement, to be entered into at the Closing,
between the Partnership, the General Partner and the Purchasers, in the form attached hereto as Exhibit D. 

“Representatives” means, with respect to a specified Person, the investors, shareholders, members, officers,
partners, directors, managers, employees, agents, advisors, counsel, accountants, investment bankers and other representatives of such Person. 

“Rights Offering” has the meaning specified in Section 5.05. 

“Securities” means, collectively, the Series A Preferred Units and the Conversion Units. 

“Securities Act” means the Securities Act of 1933, as amended from time to time, and the rules and
regulations of the Commission promulgated thereunder. 
 “Series A Preferred Units” means the
Partnership’s Series A Preferred Units. 
 “Subsequent Offering” has the meaning specified in
Section 5.04(b). 

  
 5 

 “Subsequent Offering Documents” has the meaning specified in
Section 5.04(f). 
 “Subsequent Underwritten Offering” has the meaning specified
in Section 5.04(d). 
 “Subsidiary” means, as to any Person, any corporation or
other entity of which: (a) such Person or a Subsidiary of such Person is a general partner or, in the case of a limited liability company, the managing member or manager thereof; (b) at any of the outstanding equity interest having by the
terms thereof ordinary voting power to elect a majority of the board of directors or similar governing body of such corporation or other entity (irrespective of whether or not at the time any equity interest of any other class or classes of such
corporation or other entity shall have or might have voting power by reason of the happening of any contingency) is at the time directly or indirectly owned or controlled by such Person or one or more of its Subsidiaries; or (c) any corporation
or other entity as to which such Person consolidates for accounting purposes. 
 “Third A&R LPA” has
the meaning specified in Section 2.02(a)(ii). 
 “Third-Party Claim” has the
meaning specified in Section 6.03(a). 
 “Transaction Documents” means,
collectively, this Agreement, the Registration Rights Agreement, the Third A&R LPA, the A&R Merger Agreement, the Amendment to Voting and Support Agreement, the Amendment to Nomination and Director Voting Agreement Amendment, the A&R GP
LLC Agreement and the New Indenture, each as amended to date, and any and all other agreements or instruments executed and delivered by the Partnership or the General Partner hereunder, thereunder or in connection with the Refinancing, as
applicable. 
 “U.S. Affiliate” means an Affiliate that is a United States person. 

“United States person” has the meaning specified in section 7701(a)(30) of the Internal Revenue Code of 1986,
as amended. 
 Section 1.02    Accounting Procedures and Interpretation. Unless otherwise
specified herein, all accounting terms used herein shall be interpreted, all determinations with respect to accounting matters hereunder shall be made, and all financial statements of the Partnership and certificates and reports as to financial
matters required to be furnished to the Purchasers hereunder shall be prepared, in accordance with GAAP applied on a consistent basis during the periods involved (except as may be indicated in the notes thereto or, in the case of unaudited
statements, as permitted by Form 10-Q promulgated by the Commission) and in compliance as to form in all material respects with applicable accounting requirements and with the published rules and regulations of the Commission with respect thereto.

 ARTICLE II 

AGREEMENT TO SELL AND PURCHASE 

Section 2.01    Closing. On the Closing Date, subject to the terms and conditions hereof, each
Purchaser hereby agrees to purchase from the Partnership, and the Partnership hereby agrees to issue and sell to each Purchaser, the number of Series A Preferred Units under the Purchased Units column set forth opposite each Purchaser’s name on
Schedule A (the “Purchased Units”) for a cash purchase price of $1.1040 per Series A Preferred Unit (the “Purchase Price”). The 

  
 6 

 
consummation of the purchase and sale of the Purchased Units hereunder (the “Closing”) shall take place on the date of this Agreement (such date, the “Closing
Date”), at the offices of Schulte, Roth & Zabel LLP, 919 Third Avenue, New York, New York 10022. In the case of each Purchaser, the Securities to be issued and sold to such Purchaser shall be held in book entry form by the
Partnership until such time as such Purchaser delivers written notice to deliver such Preferred Units to such Purchaser or any of its Affiliates in the name of such Purchaser or any of its Affiliates, as applicable. 

Section 2.02    Closing Conditions. 

(a)        Deliveries of the Partnership at the Closing. At the Closing, the
Partnership shall deliver or cause to be delivered to the Purchasers: 

(i)        An opinion from Vinson & Elkins L.L.P., counsel for the General
Partner and the Partnership, substantially in the form attached hereto as Exhibit E, which shall be addressed to the Purchasers and dated the Closing Date; 

(ii)        An executed copy of the Third Amended and Restated Agreement of Limited
Partnership of the Partnership, in the form attached to this Agreement as Exhibit F (the “Third A&R LPA”); 

(iii)        An executed copy of the Second Amendment to Merger and Reorganization
Agreement, by and among the Partnership, the General Partner, StoneMor GP Holdings LLC and Hans Merger Sub, LLC, in the form attached to this Agreement as Exhibit G (the “Amendment to Merger Agreement”); 

(iv)        Evidence that an application to list the Conversion Units has been
submitted to the Exchange; 
 (v)        Evidence of issuance of the Purchased
Units credited to book-entry accounts maintained by the Partnership, bearing a restrictive notation meeting the requirements of the Partnership Agreement, free and clear of any Liens, other than transfer restrictions under the Partnership Agreement
or the Delaware LP Act and applicable federal and state securities laws; 

(vi)        A certificate of an authorized officer of the General Partner, dated as
of the Closing Date, certifying as to the matters set forth in Section 2.02(b)(ii), in the form attached hereto as Exhibit H; 

(vii)        A certificate of the Secretary of the General Partner, on behalf of the
Partnership, dated the Closing Date, certifying as to and attaching (A) the certificate of formation of the Partnership, (B) the Partnership Agreement, (C) board resolutions authorizing the execution and delivery of the Transaction
Documents and the consummation of the transactions contemplated thereby, (D) board resolutions authorizing the issuance of the Purchased Units and the Conversion Units in form acceptable to Purchasers and (D) the incumbency of the officers
authorized to execute the Transaction Documents on behalf of the Partnership or the General Partner, as applicable, setting forth the name and title and bearing the signatures of such officers; 

  
 7 

 (viii)        A duly executed waiver of
the General Partner with respect to certain of its rights under the Partnership Agreement, in substantially the form attached hereto as Exhibit I; 

(ix)        The Registration Rights Agreement, which shall have been duly executed by
the Partnership and the General Partner; 
 (x)        The Amendment to Nomination
and Director Voting Agreement Amendment, which shall have been duly executed by the General Partner and American Infrastructure Funds LP and/or its Affiliates signatory thereto; 

(xi)        The Amendment to Voting and Support Agreement, which shall have been duly
executed by the General Partner, the Partnership and American Infrastructure Funds LP and/or its Affiliates signatory thereto; 

(xii)        The A&R GP LLC Agreement, which shall have been duly executed by
StonMor GP Holdings LLC; 
 (xiii)        A letter from the Partnership’s
transfer agent certifying the number of Securities outstanding as of a date within five (5) days of the Closing Date; and 

(xiv)        Such other documents relating to the transactions contemplated by this
Agreement as the Purchasers or their counsel may reasonably request. 

(b)        Conditions to Each Purchaser’s Obligation to Purchase. 

(i)        Each Purchaser shall have received all documents contemplated to be
delivered by the Partnership pursuant to Section 2.02(a); 

(ii)        The representations and warranties of the Partnership shall be true and
correct in all material respects (except for those representations and warranties that are qualified by materiality or Material Adverse Effect, which shall be true and correct in all respects) as of the date hereof (except for representations and
warranties that speak as of a specific date which shall be true and correct in all material respects (except for those representations and warranties that are qualified by materiality or Material Adverse Effect, which shall be true and correct in
all respects) as of such specified date) and the Partnership shall have performed, satisfied and complied in all material respects with the covenants, agreements and conditions required by the Transaction Documents to be performed, satisfied or
complied with by the Partnership at or prior to the Closing Date. 

(iii)        The Common Units (I) shall be listed on the Exchange and
(II) shall not have been suspended, as of the Closing Date, by the Commission or the Exchange from trading on the Exchange nor shall suspension by the Commission or the Exchange have been threatened, as of the Closing Date, either (A) in
writing by the Commission or the Exchange or (B) by falling below the minimum listing maintenance requirements of the Exchange. 

(iv)        The Exchange shall have approved, orally or in writing, the listing of
the Conversion Units; 

  
 8 

 (v)        All conditions to the
issuance of the Senior Secured PIK Toggle Notes due 2024 (the “Notes”) under the New Indenture shall have been satisfied (other than the sale and issuance of the Series A Preferred Units pursuant to this Agreement); 

(vi)        Immediately prior to the consummation of the issuance of the Series A
Preferred Units, the Board of Directors of the General Partner shall have been reconstituted to consist of seven (7) directors, with the initial designees to the Board of Directors as set forth on Schedule B, and Andrew Axelrod shall
have been appointed Chairman of the General Partner; and 
 (vii)        The
Partnership shall have obtained all governmental, regulatory or third party consents and approvals, if any, necessary for the sale of the Securities. 

(c)        Deliveries of Each Purchaser at the Closing. At the Closing, each
Purchaser (except in the case of subclauses (ii), (iii) and (iv) below, solely the Lead Purchaser and its respective Affiliates) shall deliver or cause to be delivered to the Partnership: 

(i)        The Registration Rights Agreement, which shall have been duly executed by
such Purchaser; 
 (ii)        The Amendment to Nomination and Director Voting
Agreement Amendment, which shall have been duly executed by such Purchaser; 

(iii)        The Amendment to Voting and Support Agreement, which shall have been
duly executed by such Purchaser; 
 (iv)        The A&R GP LLC Agreement, which
shall have been duly executed by and an Affiliate of the Lead Purchaser; 

(v)        A properly executed Internal Revenue Service Form W-9 from such Purchaser; 
 (vi)        Payment
of such Purchaser’s Funding Obligation payable by wire transfer of immediately available funds to an account designated in writing on the Partnership’s letterhead and executed by an authorized officer of the Partnership in advance of the
Closing Date; and 
 (vii)        Such other documents relating to the transactions
contemplated by this Agreement as the Partnership or its counsel may reasonably request. 

(d)        Conditions to the Partnership’s Obligation to Sell to a
Purchaser. 
 (i)        The Partnership shall have received all documents
contemplated to be delivered by such Purchaser pursuant to Section 2.02(c); and 

(ii)        The representations and warranties of such Purchaser shall be true and
correct in all material respects (except for those representations and warranties that are qualified by materiality or material adverse effect, which shall be true and correct in all respects) as of the date hereof (except for representations and
warranties that speak as of a specific date 

  
 9 

 
which shall be true and correct (except for those representations and warranties that are qualified by materiality or material adverse effect, which shall be true and correct in all respects) as
of such specified date) and such Purchaser shall have performed, satisfied and complied in all material respects with the covenants, agreements and conditions required by the Transaction Documents to be performed, satisfied or complied with by such
Purchaser at or prior to the Closing Date. 
 Section 2.03    Independent Nature of
Purchasers’ Obligations and Rights. The obligations of each Purchaser under any Transaction Document are several and not joint with the obligations of any other Purchaser, and no Purchaser shall be responsible in any way for
the performance of the obligations of any other Purchaser under any Transaction Document. Each Purchaser acknowledges by executing this Agreement that such Purchaser is irrevocably committed to purchase the Purchased Units in accordance with the
terms of this Agreement, and such purchase is not subject to any conditions precedent other than the deliverables contemplated by Section 2.02(a), provided, that no Purchaser shall be obligated to purchase Series A
Preferred Units unless each other Purchaser purchases the amount of Series A Preferred Units set forth opposite such Purchaser’s name on Schedule A hereto, provided, further, that no defaulting Purchaser shall be relieved from
liability in the event any other Purchaser does not purchase Series A Preferred Units. Nothing contained herein or in any other Transaction Document, and no action taken by any Purchaser pursuant thereto, shall be deemed to constitute the Purchasers
as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Purchasers are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated by the
Transaction Documents. Each Purchaser shall be entitled to independently protect and enforce its rights, including the rights arising out of this Agreement or out of the other Transaction Documents, and it shall not be necessary for any other
Purchaser to be joined as an additional party in any proceeding for such purpose. 

Section 2.04    Further Assurances. From time to time after the date hereof, without further
consideration, the Partnership and each Purchaser shall use their reasonable best efforts to take, or cause to be taken, all actions necessary or appropriate to consummate the transactions contemplated by this Agreement. 

ARTICLE III 

REPRESENTATIONS AND WARRANTIES RELATED TO THE PARTNERSHIP 

The Partnership represents and warrants to and covenants with the Purchasers as follows: 

Section 3.01    Existence. 

(a)        Each of the Partnership, the General Partner and the Subsidiaries has been
duly incorporated or formed, as the case may be, and is validly existing as a limited liability company, limited partnership or corporation, as the case may be, in good standing under the Laws of its jurisdiction of incorporation or formation, as
the case may be, and has the full limited liability company, limited partnership or corporate, as the case may be, power and authority to own or lease its Properties and assets and to conduct the businesses in all material respects which it is
engaged, and is duly registered or qualified as a foreign limited liability company, limited partnership or corporation, as the case may be, for the transaction of business under the laws of each jurisdiction in which the character of the business
conducted by it or the nature or location of the properties 

  
 10 

 
owned or leased by it makes such registration or qualification necessary, except where the failure to so register or qualify would not reasonably be expected to have a Material Adverse Effect.

 (b)        None of the Partnership, the General Partner or Subsidiaries is in
violation of its Organizational Documents. 
 (c)        The partnership agreement
or limited liability company agreement, as applicable, of each of the Partnership, the General Partner and the Subsidiaries has been, and in the case of the Third A&R LPA for the Partnership and the A&R GP LLC Agreement for the General
Partner, at the Closing will be, duly authorized, executed and delivered by StoneMor GP Holdings LLC, the General Partner and any Partnership Entity party thereto, as applicable, and is, and in the case of the Third A&R LPA and the A&R GP
LLC Agreement, at the Closing will be, a valid and legally binding agreement of such party thereto, enforceable against such party thereto in accordance with their respective terms; provided, that, with respect to each such agreement, the
enforceability thereof may be limited by applicable bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium or similar laws from time to time in effect affecting creditors’ rights and remedies generally and by general principles
of equity (regardless of whether such principles are considered in a proceeding in equity or at law). 

Section 3.02    Capitalization and Valid Issuance of Units. 

(a)        As of the date hereof, and immediately prior to the issuance and sale of
the Purchased Units, the issued and outstanding limited partner interests of the Partnership consist of 38,288,857 Common Units and the incentive distribution rights (as defined in the Partnership Agreement, the “Incentive Distribution
Rights”). All outstanding Common Units, Incentive Distribution Rights and the limited partner interests represented thereby have been duly authorized and validly issued in accordance with the Partnership Agreement and are fully paid (to the
extent required under the Partnership Agreement) and nonassessable (except as such nonassessability may be affected by matters described in Sections 17-303, 17-607 and 17-804 of the Delaware LP Act). 

(b)        The General Partner holds a 1.04% general partner interest in the
Partnership; such general partner interest has been duly authorized and validly issued in accordance with the Partnership Agreement and, after giving effect to the Refinancing, the General Partner owns such interest free and clear of all Liens
(except (i) as disclosed in the Partnership SEC Documents, (ii) for Liens arising under the Partnership Agreement or the Delaware LP Act and (iii) Liens arising under the New Indenture. 

(c)        The Purchased Units being purchased by the Purchasers hereunder and the
limited partner interests represented thereby will be duly authorized by the Partnership pursuant to the Partnership Agreement prior to the Closing and, when issued and delivered to the Purchasers against payment therefor in accordance with the
terms of this Agreement, will be validly issued, fully paid (to the extent required by the Partnership Agreement) and nonassessable (except as such nonassessability may be affected by matters described in Sections 17-303, 17-607 and 17-804 of the
Delaware LP Act) and, after giving effect to the Refinancing, will be free of any and all preemptive or similar rights, taxes, Liens and restrictions on transfer, other than (i) restrictions on transfer under the Transaction Documents and under
applicable state and federal securities laws 

  
 11 

 
and (ii) such Liens arising under the Partnership Agreement or the Delaware LP Act. The Purchased Units shall have the rights and preferences set forth in the Partnership Agreement. 

(d)        Except for the preemptive rights of the General Partner set forth in the
Partnership Agreement which are being waived in connection with the issuance of the Purchased Units, there are no persons entitled to statutory, preemptive or other similar contractual rights to subscribe for the Purchased Units; and, except
(i) for the Purchased Units to be issued pursuant to this Agreement and the Partnership Agreement, (ii) for awards issued pursuant to the Partnership’s long-term incentive plans or (iii) as disclosed in the Partnership SEC
Documents, no options, warrants or other rights to purchase, agreements or other obligations to issue, or rights to convert any obligations into or exchange any securities for, partnership securities or ownership interests in the Partnership are
outstanding. 
 (e)        Except as disclosed in the Partnership SEC Documents or
Transaction Documents or as otherwise awarded pursuant to the Partnership’s long-term incentive plans, (i) none of the Partnership’s equity interests is subject to preemptive rights or any other similar rights; (ii) there are no
outstanding options, warrants, scrip, rights to subscribe to, calls or commitments of any character issued or incurred by the Partnership or any of its Subsidiaries relating to, or securities or rights convertible into, or exercisable or
exchangeable for, any equity interests of the Partnership or any of its Subsidiaries, or contracts, commitments, understandings or arrangements by which the Partnership or any of its Subsidiaries is or may become bound to issue additional equity
interests of the Partnership or any of its Subsidiaries or options, warrants, scrip, rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities or rights convertible into, or exercisable or exchangeable for,
any equity interests of the Partnership or any of its Subsidiaries; (iii) there are no outstanding debt securities, notes, credit agreements, credit facilities or other agreements, documents or instruments evidencing indebtedness of the
Partnership or any of its Subsidiaries or by which the Partnership or any of its Subsidiaries is or may become bound; (iv) there are no agreements or arrangements under which the Partnership or any of its Subsidiaries is obligated to register
the sale of any of their securities under the Securities Act; (v) there are no outstanding securities or instruments of the Partnership or any of its Subsidiaries which contain any redemption or similar provisions, and there are no contracts,
commitments, understandings or arrangements by which the Partnership or any of its Subsidiaries is or may become bound to redeem a security of the Partnership or any of its Subsidiaries; (vi) there are no securities or instruments containing
anti-dilution or similar provisions that will be triggered by the issuance of the Securities or the consummation of the Rights Offering; (vii) neither the Partnership nor any Subsidiary has any stock appreciation rights or “phantom
stock” plans or agreements or any similar plan or agreement; and (viii) the Partnership and its Subsidiaries have no liabilities or obligations required to be disclosed in the Partnership SEC Documents but not so disclosed in the
Partnership SEC Documents, other than those incurred in the ordinary course of the Partnership’s or any of its Subsidiaries’ respective businesses and which, individually or in the aggregate, do not or would not have a Material Adverse
Effect. 
 (f)        Upon issuance in accordance with this Agreement and the
Partnership Agreement, the Conversion Units will be duly authorized, validly issued, fully paid (to the extent required by the Partnership Agreement) and nonassessable (except as such nonassessability may be affected by matters described in Sections
17-303, 17-607 and 17-804 of the Delaware LP Act) and will be free of any and all Liens, preemptive or similar rights, taxes and restrictions on transfer, 

  
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other than (i) restrictions on transfer under the Transaction Documents and under applicable state and federal securities laws and (ii) such Liens arising under the Partnership
Agreement or the Delaware LP Act. 
 Section 3.03    General Partner. The General Partner
has full limited liability company power and authority to serve as general partner of the Partnership. 

Section 3.04    Ownership of the Subsidiaries. All of the outstanding shares of capital stock
or other equity interests of each Subsidiary (a) have been duly authorized and validly issued (in accordance with the Organizational Documents of such Subsidiary), are fully paid (in the case of an interest in a limited partnership or limited
liability company, to the extent required under the Organizational Documents of such Subsidiary) and nonassessable (except (i) in the case of an interest in a Delaware limited partnership or Delaware limited liability company, as such
nonassessability may be affected by Sections 17-607 and 17-804 of the Delaware LP Act or Sections 18-607 and 18-804 of the Delaware LLC Act, as applicable, (ii) in the case of an interest in a limited partnership or limited liability company formed under the laws of another domestic state, as such nonassessability may
be affected by similar provisions of such state’s limited partnership or limited liability company statute, as applicable, and (iii) in the case of an interest in an entity formed under the laws of a foreign jurisdiction, as such
nonassessability may be affected by similar provisions of such jurisdiction’s corporate, partnership or limited liability company statute, if any, as applicable) and (b) are owned, directly or indirectly, by the Partnership, and, after
giving effect to the Refinancing, free and clear of all Liens other than Liens arising under the New Indenture, and the Organizational Documents of such Subsidiaries. The Partnership or one of its Subsidiaries has the unrestricted right to vote, and
(subject to limitations imposed by applicable law) to receive dividends and distributions on, all capital securities of its Subsidiaries as owned by the Partnership or such Subsidiary. 

Section 3.05    Partnership SEC Documents. The Partnership SEC Documents, at the time filed
(except to the extent corrected by a subsequent Partnership SEC Document filed on or prior to the date hereof) (a) did not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or
necessary in order to make the statements therein, in light of the circumstances under which they were made in the case of any such documents other than a registration statement, not misleading, (b) complied as to form in all material respects
with the applicable requirements of the Exchange Act and the Securities Act, as the case may be, and (c) complied as to form in all material respects with applicable accounting requirements and with the published rules and regulations of the
Commission with respect thereto. The financial statements of the Partnership and other financial information included in the Partnership SEC Documents were prepared in accordance with GAAP (except as may be indicated in the notes thereto or, in the
case of unaudited statements, as permitted by Form 10-Q of the Commission), and fairly present (subject in the case of unaudited statements to normal and recurring and year-end audit adjustments) in all
material respects the consolidated financial position of the Partnership and its consolidated Subsidiaries as of the dates thereof and the consolidated results of its operations and cash flows of the Partnership and its consolidated Subsidiaries for
the periods then ended. The independent auditor of the Partnership as of the date of the most recent audited balance sheet of the Partnership is an independent registered public accounting firm with respect to the Partnership and has not resigned or
been dismissed as independent registered public accountants of the Partnership as a result of or in connection with any disagreement with the Partnership on 

  
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any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedures. Since December 31, 2018, based on an annual evaluation of disclosure
controls and procedures, the Partnership is not aware of (x) except as disclosed in the Partnership SEC Documents, any significant deficiency or material weakness in the design or operation of internal controls over financial reporting that are
likely to adversely affect its ability to record, process, summarize and report financial data or (y) any fraud, whether or not material, that involves management or other employees who have a significant role in the internal controls over
financial reporting of the Partnership. 
 Section 3.06    No Material Adverse Change; Absence
of Changes; Operations in the Ordinary Course. Except as expressly set forth in the Partnership SEC Documents, since December 31, 2018 through the date hereof no Material Adverse Effect has occurred. Neither the Partnership nor any of its
Subsidiaries has taken any steps to seek protection pursuant to any law or statute relating to bankruptcy insolvency, reorganization, receivership, liquidation or winding up nor does the Partnership have any knowledge or reason to believe that any
of its or any of its Subsidiaries’ respective creditors intend to initiate involuntary bankruptcy proceedings or any actual knowledge of any fact that would reasonably lead a creditor to do so. The Partnership and its Subsidiaries, individually
and on a consolidated basis, are not as of the date hereof, and after giving effect to the transactions contemplated hereby to occur at the Closing, will not be Insolvent. Since March 31, 2019, and other than the transactions contemplated by
the Transaction Documents, each of the Partnership Entities has conducted its business in the ordinary course of business, preserved intact its existence and business organization, Permits, goodwill and business relationships with all material
customers, suppliers, licensors, distributors and others having significant business relationships with the Partnership Entities. 

Section 3.07    No Registration Required. Assuming the accuracy of the representations and
warranties of each Purchaser contained in Article IV, the issuance and sale of the Purchased Units pursuant to this Agreement is exempt from registration requirements of the Securities Act, and neither the Partnership nor any authorized
Representative acting on its behalf has taken or will take any action hereafter that would cause the loss of such exemption. 

Section 3.08    No Registration Rights. Except as disclosed in the Partnership SEC Documents,
none of the sale of the Securities as contemplated by this Agreement, the entry into the Registration Rights Agreement and the filing of any registration statement contemplated by the Registration Rights Agreement give rise to any rights for or
relating to the registration of any other securities of the Partnership, except such rights as have been waived or satisfied on or prior to the date hereof. 

Section 3.09    Litigation; Compliance with Laws. The representations made by the Partnership
in Section 4.09 (Litigation; Compliance with Laws) of the New Indenture are incorporated by reference as Section 3.09 of this Agreement, mutatis mutandis. 

Section 3.10    No Default. The representations made by the Partnership in Section 4.21
(No Default) of the New Indenture are incorporated by reference as Section 3.10 of this Agreement, mutatis mutandis. 

  
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 Section 3.11    No Conflicts. None of
(a) the offering, issuance and sale by the Partnership of the Securities and the application of the proceeds therefrom, (b) the execution, delivery and performance of the Transaction Documents, (c) the Refinancing or (d) the
Rights Offering or (e) the consummation of the transactions contemplated thereby (i) constitutes or will constitute a violation of the Organizational Documents of the Partnership (as amended by the Third A&R LPA) or the General Partner
(as amended by the A&R GP LLC Agreement), (ii) constitutes or will constitute a breach or violation of, or a default (or an event which, with notice or lapse of time or both, would constitute such a default) under or give to others any
right of termination, amendment, acceleration or cancellation of, any indenture, mortgage, deed of trust, loan agreement, lease or other agreement or instrument to which the Partnership or the General Partner is a party or by which any of them or
any of their respective properties may be bound, (iii) violates or will violate any statute, Law, Permit or regulation or any order, judgment, decree or injunction of any court or Governmental Authority or body having jurisdiction over the
Partnership or the General Partner or any of their properties in a proceeding to which any of them or their property is or was a party, or (iv) results or will result in the creation or imposition of any Lien upon any property or assets of the
Partnership or the General Partner other than as contemplated by the Transaction Documents, which conflicts, breaches, violations, defaults or liens, in the case of clauses (ii), (iii) or (iv), would,
individually or in the aggregate, reasonably be expected to have a Material Adverse Effect or materially impair the ability of the Partnership to consummate the transactions contemplated by this Agreement. 

Section 3.12    Authority; Enforceability. The Partnership has all limited partnership power
and authority to issue, sell and deliver the Securities, in accordance with and upon the terms and conditions set forth in this Agreement and the Partnership Agreement. All partnership or limited liability company action, as the case may be,
required to be taken by the General Partner and the Partnership for the authorization, issuance, sale and delivery of the Securities, the execution and delivery of the Transaction Documents and the consummation of the transactions contemplated
thereby shall have been validly taken. No approval from the holders of outstanding Common Units is required under the Partnership Agreement or the rules of the Exchange in connection with the Partnership’s issuance and sale of the Securities to
the Purchasers. Each of the Transaction Documents has been duly and validly authorized and has been or, with respect to the Transaction Documents to be delivered at the Closing, will be, validly executed and delivered by the Partnership or the
General Partner, as the case may be, and constitutes, or will constitute, the legal, valid and binding obligations of the Partnership or the General Partner, as the case may be, enforceable in accordance with its terms, except as such enforceability
may be limited by bankruptcy, insolvency, reorganization and other laws of general applicability relating to or affecting creditors’ rights and by general principles of equity. 

Section 3.13    Approvals. Excluding any matters covered by
Section 3.08, no authorization, consent, approval, waiver, license, qualification or written exemption from, nor any filing, declaration, qualification or registration with, any Governmental Authority or any other Person is
required in connection with the execution, delivery or performance by the Partnership of any of the Transaction Documents or the Partnership’s issuance and sale of the Purchased Units, except (a) in connection with the Partnership’s
obligations under the Registration Rights Agreement or the Transaction Documents, (b) as may be required under the state securities or “Blue Sky” Laws, or (c) where the failure to receive such authorization, consent, approval,
waiver, license, qualification or written exemption or to make such filing, declaration, qualification or 

  
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registration would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. 

Section 3.14    Distribution Restrictions. After giving effect to the Refinancing, no
Subsidiary is currently prohibited, directly or indirectly, from making any distributions to the Partnership or another Subsidiary, from making any other distribution on such Subsidiary’s equity interests, from repaying to the Partnership or
its affiliates any loans or advances to such Subsidiary from the Partnership or its affiliates or from transferring any of such Subsidiary’s property or assets to the Partnership or any other Subsidiary, except (i) restrictions arising
under the New Indenture, (ii) as described in the Partnership SEC Documents, (iii) such prohibitions mandated by the laws of each such Subsidiary’s state of formation and the terms of any such Subsidiary’s Organizational
Documents and (iv) where such prohibition would not reasonably be expected to have a Material Adverse Effect. 

Section 3.15    Partnership Status. The Partnership has not elected to be classified as a
corporation for U.S. federal income tax purposes. The Partnership has for each taxable year during which the Partnership was in existence met the gross income requirements of Section 7704(c)(2) of the Internal Revenue Code of 1986, as amended
(the “Code”). The Partnership expects to meet the gross income requirements of Section 7704(c)(2) of the Code for its taxable year ending December 31, 2019. 

Section 3.16    Investment Company Status. None of the Partnership Entities is now, and
immediately after the sale of the Purchased Units hereunder and the application of the net proceeds from such sale none of the Partnership Entities will be an “investment company” or a company controlled by an “investment
company” within the meaning of the Investment Company Act of 1940, as amended. 

Section 3.17    Certain Fees. No fees or commissions are or will be payable by the Partnership
to brokers, finders or investment bankers with respect to the sale of any of the Purchased Units or the consummation of the transactions contemplated by this Agreement. The Partnership agrees that it will indemnify and hold harmless the Purchasers
from and against any and all claims, demands, or liabilities for broker’s, finder’s, placement, or other similar fees or commissions incurred by the Partnership or alleged to have been incurred by the Partnership in connection with the
sale of the Purchased Units or the consummation of the transactions contemplated by this Agreement. 

Section 3.18    No General Solicitation. Neither the Partnership, nor any of its Subsidiaries
or Affiliates, nor any Person acting on its or their behalf, has engaged in any form of general solicitation or general advertising (within the meaning of Regulation D) in connection with the offer or sale of the Securities. 

Section 3.19    No Integrated Offering. None of the Partnership, its Subsidiaries, or any of
their respective Affiliates, nor any Person acting on its or their behalf (excluding any of the Purchasers) has, directly or indirectly, made any offers or sales of any security or solicited any offers to buy any security, under circumstances that
would require registration of the issuance of any of the Securities under the Securities Act, whether through integration with prior offerings or otherwise, or cause this offering of the Securities to require the approval of the equityholders of

  
 16 

 
the Partnership for purposes of the Securities Act or any applicable shareholder approval provisions, including, without limitation, under the rules and regulations of any exchange or automated
quotation system on which any of the securities of the Partnership are listed or designated for quotation. 

Section 3.20    Employee Relations. 

(a)        No labor dispute with the employees of any of the Partnership Entities
exists or, to the knowledge of the Partnership, is imminent, that would reasonably be expected to have a Material Adverse Effect. 

(b)        Neither the Partnership nor any of its Subsidiaries is a party to any
collective bargaining agreement or employs any member of a union. The Partnership and its Subsidiaries believe that their relations with their respective employees are good. No executive officer of the Partnership or any of its Subsidiaries (as
defined in Rule 501(f) of the Securities Act) or other key employee of the Partnership or any of its Subsidiaries has notified the Partnership or any such Subsidiary that such officer intends to leave the Partnership or any such Subsidiary or
otherwise terminate such officer’s employment with the Partnership or any such Subsidiary. No executive officer or other key employee of the Partnership or any of its Subsidiaries is in violation of any term of any employment contract,
confidentiality, disclosure or proprietary information agreement, non-competition agreement, or any other contract or agreement or any restrictive covenant, except for any violation that would not,
individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. 

(c)        The Partnership and its Subsidiaries are in compliance with all federal,
state, local and foreign laws and regulations respecting labor, employment and employment practices and benefits, terms and conditions of employment and wages and hours, except where failure to be in compliance would not, either individually or in
the aggregate, reasonably be expected to result in a Material Adverse Effect. 

Section 3.21    Insurance. The Partnership maintains or is entitled to the benefits of
insurance from insurers of recognized financial responsibility covering its properties, operations, personnel and businesses against such losses and risks as are reasonably adequate to protect it and its businesses in a reasonable manner and in
amounts which are prudent and customary in the businesses in which the Partnership and its Subsidiaries are engaged. All such insurance is outstanding and duly in force on the date hereof, except for such insurance for which the failure to be
outstanding and duly in force would not reasonably be expected to have a Material Adverse Effect. Neither the Partnership nor any of its Subsidiaries has any reason to believe that it will not be able to renew its existing insurance coverage as and
when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its business at a cost that would not have a Material Adverse Effect. 

Section 3.22    Books and Records; Sarbanes-Oxley Compliance. 

(a)        Except as set forth in the Partnership SEC Documents, the Partnership
maintains systems of internal accounting controls sufficient to provide reasonable assurance that (i) transactions are executed in accordance with management’s general or specific authorizations,

  
 17 

 
(ii) transactions are recorded as necessary to permit preparation of the Partnership consolidated financial statements in conformity with GAAP and to maintain accountability for its assets
and liabilities, (iii) access to the assets or incurrence of liabilities is permitted only in accordance with management’s general or specific authorization, and (iv) the recorded accountability for assets and liabilities is compared
with existing assets and liabilities at reasonable intervals and appropriate action is taken with respect to any differences. 

(b)        The Partnership has established and maintains disclosure controls and
procedures (to the extent required by and as defined in Rules 13a- 15(e) and 15d-15(e) under the Exchange Act), which are designed to provide reasonable assurance that
material information required to be disclosed by the Partnership in reports that it files or submits under the Exchange Act is recorded, processed, summarized and communicated to the Partnership’s management, including its principal executive
officer and principal financial officer, as appropriate, to allow for timely decisions regarding required disclosure. The Partnership has carried out evaluations of the effectiveness of its disclosure controls and procedures as of the end of the
most recently completed fiscal quarter covered by the Partnership’s periodic reports filed with the Commission, and such disclosure controls and procedures are, except as described in the Partnership SEC Documents, effective in all material
respects to perform the functions for which they were established. 

(c)        The Partnership and, to the Partnership’s knowledge, the General
Partner’s directors or officers, in their capacities as such, are in compliance with all applicable provisions of the Sarbanes-Oxley Act of 2002 and the rules and regulations promulgated in connection therewith. 

Section 3.23    Listing and Maintenance Requirements. The Common Units are listed on the
Exchange, and the Partnership has not received any notice of delisting. The issuance and sale of the Purchased Units pursuant to the Partnership Agreement and issuance of Conversion Units upon conversion of the Purchased Units does not contravene
Exchange rules and regulations. Without limiting the generality of the foregoing, the Partnership is not in violation of any of the rules, regulations or requirements of the Exchange and has no knowledge of any facts or circumstances that would
reasonably lead to delisting or suspension of the Common Units by the Exchange in the foreseeable future. 

Section 3.24    Taxes. The representations made by the Partnership in Section 4.13
(Taxes) of the New Indenture are incorporated by reference as Section 3.24 of this Agreement, mutatis mutandis. 

Section 3.25    Environmental Matters. The representations made by the Partnership in
Section 4.16 (Environmental Matters) of the New Indenture is incorporated by reference as Section 3.25 of this Agreement, mutatis mutandis. 

Section 3.26    Required Disclosures and Descriptions. There are no legal or governmental
proceedings pending or, to the knowledge of the Partnership, threatened, against any of the Partnership Entities, or to which any of the Partnership Entities is a party, or to which any of their respective properties is subject, that are required to
be described in the Partnership SEC Documents but are not described as required, and there are no agreements, contracts, indentures, leases or other instruments that are required to be described in the Partnership SEC Documents or to be filed as

  
 18 

 
an exhibit to the Partnership SEC Documents that are not described or filed as required by the Securities Act or the Exchange Act. 

Section 3.27    Title to Property. Each of the Partnership Entities has good and marketable
title to all real property and good title to all personal property described in the Partnership SEC Documents as owned by such Partnership Entity, and after giving effect to the Refinancing, free and clear of all Liens except such (a) as are
described in the Partnership SEC Documents, (b) as arise under the New Indenture, or (c) as would not, in the aggregate, reasonably be expected to have a Material Adverse Effect. Any real property and facilities held under lease by the
Partnership or any of its Subsidiaries are held by them under valid, subsisting and enforceable leases with such exceptions as are not material and do not interfere with the use made and proposed to be made of such property and buildings by the
Partnership or any of its Subsidiaries. 
 Section 3.28    Application of Takeover Protections;
Rights Agreement. The Partnership and its General Partner have taken all necessary action, if any, in order to render inapplicable any control share acquisition, interested shareholder, business combination, poison pill (including, without
limitation, any distribution under a rights agreement) or other similar anti-takeover provision under the Partnership Agreement or other organizational documents or the laws of the jurisdiction of its formation which is or could become applicable to
any Purchaser as a result of the transactions contemplated by this Agreement, including, without limitation, the Partnership’s issuance of the Securities and any Purchaser’s ownership of the Securities. 

Section 3.29    Transactions With Affiliates. Except as set forth in the Partnership SEC
Documents or as contemplated by the Transaction Documents, none of the officers, directors or employees of the General Partner, the Partnership or any of its Subsidiaries is presently a party to any material transaction with the General Partner,
Partnership or any of its Subsidiaries (other than for ordinary course services as employees, officers or directors), including any contract, agreement or other arrangement providing for the furnishing of services to or by, providing for rental of
real or personal property to or from, or otherwise requiring payments to or from any such officer, director or employee or, to the knowledge of the Partnership or any of its Subsidiaries, any corporation, partnership, trust or other entity in which
any such officer, director, or employee has a substantial interest or is an officer, director, employee, trustee or partner. 

Section 3.30    Transfer Taxes. On the Closing Date, all stock transfer or other taxes (other
than income or similar taxes) which are required to be paid in connection with the sale and transfer of the Securities to be sold to each Purchaser hereunder will be, or will have been, fully paid or provided for by the Partnership, and all laws
imposing such taxes will be or will have been complied with. 
 Section 3.31    USA Patriot Act;
Sanctions; Anti-Terrorism and Anti-Corruption Laws. The representations made by the Partnership in Section 4.24 (USA Patriot Act; Sanctions; Anti-Terrorism and Anti-Corruption Laws) of the New Indenture are incorporated by reference as
Section 3.31 of this Agreement, mutatis mutandis. 
 Section 3.32    Compliance with
Cemetery Laws. The representations made by the Partnership in Section 4.26 (Compliance with Cemetery Laws) of the New Indenture are incorporated by reference as Section 3.32 of this Agreement, mutatis mutandis. 

  
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 Section 3.33    No Disqualification Events. With
respect to Securities to be offered and sold hereunder in reliance on Rule 506(b) under the Securities Act (“Regulation D Securities”), no Issuer Covered Person is subject to any of the “Bad Actor” disqualifications
described in Rule 506(d)(1)(i) to (viii) under the Securities Act (a “Disqualification Event”), except for a Disqualification Event covered by Rule 506(d)(2) or (d)(3). The Partnership has exercised reasonable care to determine
whether any Issuer Covered Person is subject to a Disqualification Event. The Partnership has complied, to the extent applicable, with its disclosure obligations under Rule 506(e), and has furnished to the Purchasers a copy of any disclosures
provided thereunder. 
 Section 3.34    No Other Purchaser Representations. The Partnership
acknowledges and agrees that no Purchaser makes or has made any representations or warranties with respect to the transactions contemplated hereby other than those specifically set forth in Article IV. 

ARTICLE IV 

REPRESENTATIONS AND WARRANTIES OF THE PURCHASERS 

Each of the Purchasers, severally but not jointly and solely with respect to itself, represents and warrants and covenants to
the Partnership as follows: 
 Section 4.01    Existence. Such Purchaser is duly organized
and validly existing and in good standing under the laws of its state of formation, with all necessary power and authority to own properties and to conduct its business as currently conducted. 

Section 4.02    Authorization, Enforceability. Such Purchaser has all necessary legal power
and authority to enter into, deliver and perform its obligations under the Transaction Documents. The execution, delivery and performance of the Transaction Documents by such Purchaser and the consummation by it of the transactions contemplated
thereby have been duly and validly authorized by all necessary legal action, and no further consent or authorization of such Purchaser is required. Each of the Transaction Documents to which it is a party has been duly executed and delivered by such
Purchaser and constitutes legal, valid and binding obligations of such Purchaser; provided, that, with respect to each such agreement, the enforceability thereof may be limited by applicable bankruptcy, insolvency, fraudulent transfer,
reorganization, moratorium or similar laws from time to time in effect affecting creditors’ rights and remedies generally and by general principles of equity (regardless of whether such principles are considered in a proceeding in equity or at
law). 
 Section 4.03    No Breach. The execution, delivery and performance of the
Transaction Documents by such Purchaser and the consummation by such Purchaser of the transactions contemplated thereby will not (a) conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default
under, any material agreement to which such Purchaser is a party or by which such Purchaser is bound or to which any of the property or assets of such Purchaser is subject, (b) conflict with or result in any violation of the provisions of the
organizational documents of such Purchaser, or (c) violate any statute, order, rule or regulation of any court or governmental agency or body having jurisdiction over such Purchaser or the property or assets of such Purchaser, except in the
case of clauses (a) and (c), for such conflicts, breaches, violations or defaults as would not prevent the consummation by such Purchaser of the transactions contemplated by the Transaction Documents. 

  
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 Section 4.04    Certain Fees. No fees or
commissions are or will be payable by such Purchaser to brokers, finders or investment bankers retained by such Purchaser with respect to the purchase of any of the Purchased Units or the consummation of the transactions contemplated by this
Agreement. 
 Section 4.05    Unregistered Securities. 

(a)        Accredited Investor Status; Sophisticated Purchaser. Such Purchaser
is an “accredited investor” within the meaning of Rule 501 under the Securities Act and is able to bear the risk of its investment in the Securities. Such Purchaser has such knowledge and experience in financial and business matters that
it is capable of evaluating the merits and risks of the purchase of the Securities. 

(b)        Information. Such Purchaser and its Representatives have been
furnished with all materials relating to the business, finances and operations of the Partnership that have been requested and materials relating to the offer and sale of the Securities that have been requested by such Purchaser. Such Purchaser and
its Representatives have been afforded the opportunity to ask questions of the Partnership. Neither such inquiries nor any other due diligence investigations conducted at any time by such Purchasers and its Representatives shall modify, amend or
affect such Purchasers’ right (i) to rely on the Partnership SEC Documents or the Partnership’s representations and warranties contained in Article III above or (ii) to indemnification or any other remedy based on, or with
respect to the accuracy or inaccuracy of, or compliance with, the representations, warranties, covenants and agreements in any Transaction Document. Such Purchaser understands that its purchase of the Purchased Units involves a high degree of risk.
Such Purchaser has sought such accounting, legal and tax advice as it has considered necessary to make an informed investment decision with respect to its acquisition of the Purchased Units. 

(c)        Residency. Such Purchaser shall cooperate reasonably with the
Partnership to provide any information necessary for any applicable securities filings. Such Purchaser is treated as a United States person, or a disregarded entity of such United States person. 

(d)        Legends. Such Purchaser understands that, until such time as the
Purchased Units have been registered pursuant to the provisions of the Securities Act, or the Purchased Units are eligible for resale pursuant to Rule 144 promulgated under the Securities Act without any restriction as to the number of securities as
of a particular date that can then be immediately sold, the Purchased Units will bear a restrictive legend as provided in the Partnership Agreement. Each Purchaser understands that, until such time as the Conversion Units have been registered
pursuant to the provisions of the Securities Act, or the Conversion Units are eligible for resale pursuant to Rule 144 promulgated under the Securities Act without any restriction as to the number of securities as of a particular date that can then
be immediately sold, the Conversion Units will bear a restrictive legend as provided in the Partnership Agreement. 

(e)        Purchase Representation. Such Purchaser is purchasing the Purchased
Units for its own account and not with a view to distribution in violation of any securities laws. Such Purchaser has been advised and understands that, except as contemplated by the Registration Rights Agreement, neither the Purchased Units nor the
Conversion Units have been or will be registered under the Securities Act or under the “blue sky” laws of any jurisdiction and may be 

  
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resold only if registered pursuant to the provisions of the Securities Act (or if eligible, pursuant to the provisions of Rule 144 promulgated under the Securities Act or pursuant to another
available exemption from the registration requirements of the Securities Act). 

(f)        Rule 144. Such Purchaser understands that there is no public
trading market for the Purchased Units and that none is expected to develop. Each Purchaser has been advised and is aware of the provisions of Rule 144 promulgated under the Securities Act. 

(g)        Reliance by the Partnership. Such Purchaser understands that the
Purchased Units are being offered and sold in reliance on a transactional exemption from the registration requirements of federal and state securities laws and that the Partnership is relying upon the truth and accuracy of the representations,
warranties, agreements, acknowledgments and understandings of such Purchaser set forth herein in order to determine the applicability of such exemptions and the suitability of such Purchaser to acquire the Purchased Units and the Conversion Units
issuable upon conversion thereof. 
 Section 4.06    Sufficient Funds. Such Purchaser will
have available to it at the Closing sufficient funds to enable such Purchaser to pay in full at the Closing the entire amount of such Purchaser’s Funding Obligation in immediately available cash funds. 

ARTICLE V 
 COVENANTS

 Section 5.01    Reporting Status. For so long as any Series A Preferred Units are
outstanding, the Partnership shall use its reasonable best efforts to timely file, and in all cases file, all reports required to be filed with the Commission pursuant to the Exchange Act. 

Section 5.02    Use of Proceeds. The Partnership will use the proceeds from the sale of the
Securities for general corporate purposes, including effecting the Refinancing and paying related expenses. 

Section 5.03    Disclosure of Transactions. On or before 8:30 a.m., New York City time, on the
first Business Day following the date of this Agreement, the Partnership shall issue a press release and file a Current Report on Form 8-K (provided that such press release shall be issued and such Form 8-K shall be filed at the same time), in each case, reasonably acceptable to the Purchasers, describing the terms of the transactions contemplated by the Transaction Documents in the form required by the Exchange
Act and attaching the material Transaction Documents as exhibits to such filing (including all attachments). 

Section 5.04    Additional Issuances of Securities. 

(a)        For purposes of this Section 5.04, “Trigger Date”
means the date on which a Purchaser ceases to own any Series A Preferred Units, Conversion Units or C-Corp Shares such Purchaser receives in consideration for Series A Preferred Units or Conversion Units
pursuant to the consummation of the C-Corporation Conversion. “Issuer” shall mean, prior to the consummation of the C-Corporation Conversion, the
Partnership, and, from and after the consummation of the C-Corporation Conversion, StoneMor Inc. 

  
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 (b)        From the date hereof until
the Trigger Date, in the event that the Issuer proposes to offer for sale, pledge, grant any option to purchase or otherwise dispose of (or the entry into any transaction or device that is designed to, or could be expected to, result in the
disposition by any person at any time in the future of) any Common Units or C-Corp Shares or securities convertible into or exercisable or exchangeable for Common Units or
C-Corp Shares (other than (a) the Purchased Units as contemplated by the Transaction Documents, (b) Common Units or C-Corp Shares issued pursuant to employee
benefit plans, qualified option plans or other employee compensation plans existing on the date hereof or (c) pursuant to the Rights Offering (such offerings, sales, pledges, grants or dispositions, a “Subsequent Offering” and
such securities, the “Offered Securities”), each Purchaser shall have the right to purchase, in lieu of the person to whom the Issuer proposed to issue such Offered Securities, in accordance with paragraph
Section 5.04(c) below, a number of Offered Securities equal to the product of (i) the total number or amount of Offered Securities which the Issuer proposes to issue at such time and (ii) a fraction, the
numerator of which shall be the total number of Conversion Units (or C-Corp Shares from which such Conversion Units were converted) which such Purchaser beneficially owns at the relevant measurement point on
an as converted basis, and the denominator of which shall be the aggregate number of shares of Common Units or C-Corp Shares, as applicable, then outstanding (the number referred to in clause (ii), the
“Pro Rata Share”). 
 (c)        Subject to the provisions of
Section 5.04(d), in the event that the Issuer proposes to undertake a Subsequent Offering, it shall give written notice (a “Notice of Issuance”) of its intention to each Purchaser indicating the exact price
per Offered Security and the exact number of Offered Securities to be issued by the Issuer, and describing the material terms of the Offered Securities and the material terms of the Subsequent Offering. Each Purchaser shall have five
(5) Business Days from the date of receipt of the Notice of Issuance to agree to purchase all or a portion of such Purchaser’s Pro Rata Share of such number of Offered Securities (as determined pursuant to Section 5.04(b) above) for
the same consideration and otherwise upon the terms specified in the Notice of Issuance (unless better terms are provided to any other purchaser) by giving written notice to the Issuer and stating therein the quantity of Offered Securities to be
purchased by the Issuer. If any Purchaser exercises its right to purchase Offered Securities pursuant to this Section 5.04(c), the purchase and sale of such Offered Securities shall close at the same time as the issuance of Offered Securities
to the other purchaser or purchasers and, subject to the preceding sentence, shall be issued on the same terms and subject to the same conditions as applicable to the other purchaser or purchasers. The rights given by the Issuer under this
Section 5.04(c) shall terminate and shall be deemed waived by the Purchaser if unexercised within five (5) Business Days after receipt of the Notice of Issuance referred to in this Section 5.04(c). Notwithstanding anything to the
contrary contained herein, if (i) the price or any other material terms upon which the Issuer proposes to issue such Offered Securities are amended by the Issuer following the delivery to the Purchasers of the Notice of Issuance or
(ii) the offering of Offered Securities to which a Notice of Issuance relates is not completed within 60 days from the delivery of such notice to the Purchasers, each Purchaser’s election with respect to the purchase of Offered Securities
covered by such Notice of Issuance shall be void and the Issuer shall be obligated to deliver a new Notice of Issuance to each Purchaser, and each Purchaser shall be entitled to make a new election with respect to the purchase by it of Offered
Securities covered by such notice within the five (5) Business Day period from the date of delivery of the new Notice of Issuance and otherwise in accordance with the procedure specified in the second sentence of this Section 5.04(c). 

  
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 (d)        Notwithstanding anything to
the contrary contained in Section 5.04(c), if the Issuer proposes to issue Offered Securities in an aggregate amount of at least $15,000,000, in a transaction in which securities of the Issuer is sold to an underwriter or underwriters on a firm
commitment basis for reoffering to the public, including any block sale to a financial institution conducted as an underwritten public offering (such Subsequent Offering, an “Subsequent Underwritten Offering”), the Notice of
Issuance may, (i) in lieu of providing the price at which the Issuer proposes to issue Offered Securities as a fixed dollar amount, provide an estimated range of prices within which the underwriter for such offering reasonably estimates the
shares will ultimately be priced and (ii) in lieu of providing an exact number of Offered Securities to be issued by the Issuer in such Subsequent Underwritten Offering, provide an estimated number the underwriter for such offering reasonably
estimates will ultimately be issued in such Subsequent Underwritten Offering (the “Offering Size”). If a Purchaser desires to exercise its rights under this Section 5.04(d) with respect to such Subsequent Underwritten Offering,
such Purchaser shall be required to make an election with respect to the purchase of up to a number of Offered Securities being offered equal to its Pro Rata Share of the Offering Size no later than five (5) Business Days from the date of
receipt of the Notice of Issuance; provided that each Purchaser’s obligation to purchase the number of Offered Securities subject to its election shall be conditioned upon (A) the issuance by the Issuer of a number of Common Units or C-Corp Shares at least equal to the Offering Size and (B) the Offered Securities so issued being priced not higher or lower than 10% above or below, respectively, of the closing price of the Common Units or C-Corp Shares, as applicable on the principal securities exchange on which either securities are then listed on the date immediately prior to the date on which the Notice of Issuance is delivered to the Purchasers
pursuant to this Section 5.04(d) (the “Price Range”). If a Subsequent Underwritten Offering contemplated by this Section 5.04(d)is not completed within 60 days following the Notice of Issuance with respect thereto, then
the Issuer will be required to comply again with the provisions of Section 5.04(c) or Section 5.04(d) in any Subsequent Offering. 

(e)        Any Notice of Issuance provided by the Issuer to a Purchaser in connection
with an Subsequent Underwritten Offering may specify a number of Common Units or C-Corp Shares, not to exceed 15% of the Offering Size, that the underwriters or agents in such offering shall be entitled to
purchase upon exercise of an underwriter’s option to purchase additional Common Units or C-Corp Shares (the “Overallotment Securities”). If a Purchaser desires to exercise its rights
under this Section 5.04(e) with respect to Overallotment Securities, such Purchaser shall be required to make an election with respect to the purchase of up to its Pro Rata Share of the Overallotment Securities at the same time such Purchaser
makes an election pursuant to Section 5.04(d); provided that such Purchaser’s obligation to purchase Overallotment Securities in accordance with its election shall be conditioned upon the Overallotment Securities being priced within the
Price Range. 
 (f)        The Issuer and each Purchaser agree that if such
Purchaser elects to participate in any offering pursuant to this Section 5.04, (x) neither the underwriting or purchase agreements relating to such offering nor any other transaction documents related thereto (collectively, the
“Subsequent Offering Documents”) shall include any term or provisions whereby such Purchaser shall be required to agree to any restrictions in trading as to any securities of the Issuer owned by such Purchaser prior to such
offering, other than as required by applicable law, and (y) any registration rights set forth in such Subsequent Offering Documents shall be similar in all material respects to the registration rights contained in the Registration Rights
Agreement. 

  
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 Section 5.05    Rights Offering. As promptly as
practicable after the issuance of the Series A Preferred Units, the Partnership shall file a registration statement on Form S-1 to effect a $40,185,483 rights offering of Common Units to holders of Common
Units (other than any Purchaser or holders of Common Units who are Affiliates of a Purchaser, American Infrastructure Funds L.P. and its Affiliates) at a purchase price of $1.20 per Common Unit (the “Rights Offering”). The
Partnership shall use its reasonable best efforts to complete the Rights Offering within one hundred (100) days of the issuance of the Series A Preferred Units. 

Section 5.06    Cooperation; Further Assurances. Each of the Partnership and the Purchasers
shall use its respective reasonable best efforts to obtain all approvals and consents required by or necessary to consummate the transactions contemplated by this Agreement and the other Transaction Documents. Each of the Partnership and the
Purchasers agrees to execute and deliver all such documents or instruments, to take all appropriate action and to do all other things it determines to be necessary, proper or advisable under applicable Laws and regulations or as otherwise reasonably
requested by the other to consummate the transactions contemplated by this Agreement. 

Section 5.07    Transfer Restrictions. Without the prior written consent of the Partnership,
except as specifically provided in this Agreement, each Purchaser and its Affiliates shall not offer, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to
purchase, lend or otherwise transfer or dispose of, directly or indirectly, any of the Purchased Units, provided, that such Purchaser may transfer any Purchased Units to a U.S. Affiliate of such Purchaser. Notwithstanding the foregoing, any
transferee receiving any Purchased Units pursuant to this Section 5.07 shall agree to the restrictions set forth in this Section 5.07. Notwithstanding anything herein to the contrary, nothing in
this Section 5.07 or otherwise in this Agreement shall restrict a Purchaser from entering into any swap or other derivatives transaction that transfers to a United States person, in whole or in part, any of the economic
benefits or risks of ownership of such Purchaser’s Securities. 
 Section 5.08    No
Integrated Offering. None of the Partnership, its Subsidiaries, their Affiliates or any Person acting on their behalf will take any action or steps referred to in Section 3.19 that would require registration of the
issuance of any of the Securities under the Securities Act or cause the offering of any of the Securities to be integrated with other offerings for purposes of any such applicable shareholder approval provisions. 

Section 5.09    Tax Estimates. 

(a)        Following receipt of a written request from a Purchaser that continues to
own Purchased Units, the Partnership shall provide such Purchaser with a good faith estimate (and reasonable supporting calculations) of whether there is sufficient Unrealized Gain attributable to the Partnership property on the date of such request
such that, if any of such Purchaser’s Series A Preferred Units were converted to Common Units and such Unrealized Gain was allocated to such Purchaser pursuant to Section 5.5(d) of the Third A&R LPA, Purchaser’s Capital Account in
respect of its Common Units would be equal to the Per Unit Capital Amount for a then Outstanding Initial Common Unit without any need for corrective allocations under Treasury Regulation Section 1.704(b)(4)(x). Each Purchaser shall be entitled
to make such a request in connection with a conversion of the Purchased Units and prior to the C-Corporation Conversion. 

  
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 (b)        For purposes of this
Section 5.08, all capitalized terms used but not defined herein shall have the meanings assigned to them in the Third A&R LPA. 

Section 5.10    UBTI. The Schedule K-1s provided to
the Purchasers shall include such Purchaser’s distributive share of “unrelated business taxable income.” 

Section 5.11    Governance Matters. From and after the
C-Corporation Conversion, StoneMor GP Holdings LLC, the General Partner, the Partnership and the entities into which the General Partner and the Partnership convert in connection with the C-Corporation Conversion, as applicable, shall take all necessary action to nominate and cause: 

(a)        the number of directors of StoneMor, Inc. (the
“Corporation”) that will constitute the full board of directors of the Corporation to be seven (7); 

(b)        until the later of (i) the refinancing or repayment of the Notes
under the New Indenture and (ii) such time as the Lead Purchaser and its controlled affiliated investment funds and managed accounts (collectively, “Axar”) ceases to hold at least 15.00% of the issued and outstanding common
stock of the Corporation in the aggregate, three (3) individuals designated in writing by the Lead Purchaser to be elected to the Corporation’s board of directors, at least two of whom of whom shall be “independent” under the
standards set forth in Section 303A.02(b) of the New York Stock Exchange Listed Company Manual for so long as the Corporation is not a “controlled company” for purposes of the New York Stock Exchange, provided, however, that if, prior
to the refinancing or repayment of the Notes under the New Indenture, the number of directors on the Corporation’s board of directors is increased, the number of directors which shall be designated by the Lead Purchaser shall be increased to be
at least three-sevenths (3/7) of the total number of directors on the Corporation’s board of directors; 

(c)        solely after the refinancing or repayment of the Notes under the New
Indenture, until such time as Axar ceases to hold at least 10.00% of the issued and outstanding common stock of the Corporation in the aggregate, two (2) individual designated in writing by the Lead Purchaser to be elected to the
Corporation’s board of directors; and 
 (d)        solely after the
refinancing or repayment of the Notes under the New Indenture, until such time as Axar ceases to hold at least 5.00% of the issued and outstanding common stock of the Corporation in the aggregate, one (1) individual designated in writing by the
Lead Purchaser to be elected to the Corporation’s board of directors. 

Section 5.12    Blocker Entities. The General Partner and the Partnership acknowledge that one
or more Purchasers are making their investment through one or more newly-formed US “blocker entities” (i) whose only asset will be its direct or indirect ownership of Purchased Units (each, a “Blocker Corp.”) and cash or other
consideration received as a result of ownership of such Purchased Units, and (ii) whose only liabilities will be liabilities incurred in connection with the ownership of such Purchased Units (e.g., taxes payable). In connection with the
consummation of the C-Corporation Conversion, if any Purchaser shall so request at least five (5) Business Days prior to such consummation, any such Blocker Corp. (or, as applicable, any such Purchaser)
shall have the right to be merged with, or contributed to (or, as applicable, to cause such Blocker to be merged with or contributed to) StoneMor Inc. in a transaction intended to be tax-free under Code

  
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section 368 or Code section 351, in exchange for the C-Corp Shares such Purchaser would have received as consideration in the C-Corporation Conversion without any discount. Any such Purchaser shall be responsible for and shall indemnify StoneMor Inc. for any taxes of the Blocker Corp. for taxable periods or portions thereof ending on or
prior to the consummation of the C-Corporation Conversion to the extent such taxes exceed the amount of cash held by the Blocker Corp. at the time of the C-Corporation
Conversion. 
 ARTICLE VI 

INDEMNIFICATION, COSTS AND EXPENSES 

Section 6.01    Indemnification by the Partnership. The Partnership agrees to indemnify each
Purchaser and its Representatives (collectively, “Purchaser Related Parties”) from costs, losses, liabilities, damages, or expenses of any kind or nature whatsoever, and hold each of them harmless against, any and all actions,
suits, proceedings (including any investigations, litigation or inquiries), demands, and causes of action, and, in connection therewith, promptly upon demand, pay or reimburse each of them for all costs, losses, liabilities, damages, or expenses of
any kind or nature whatsoever (including the reasonable fees and disbursements of counsel and all other reasonable expenses incurred in connection with investigating, defending or preparing to defend any such matter that may be incurred by them or
asserted against or involve any of them), whether or not involving a Third-Party Claim, as a result of, arising out of, or in any way related to (a) the failure of any of the representations or warranties made by the Partnership contained
herein to be true and correct in all material respects (other than those representations and warranties contained in Section 3.01 (Existence), Section 3.02 (Capitalization and Valid Issuance of Units),
Section 3.04 (Ownership of the Subsidiaries), Section 3.12 (Authority: Enforceability), Section 3.15 (Partnership Status) or Section 3.17 (Certain Fees) or other representations and warranties that are
qualified by materiality or Material Adverse Effect, which, in each case, shall be true and correct in all respects) when made and as of the Closing Date (except for any representations and warranties made as of a specific date, which shall be
required to be true and correct as of such date only) or (b) the breach of any covenants of the Partnership contained herein, provided that, in the case of the immediately preceding clause (a), such claim for
indemnification is made prior to the expiration of the survival period of such representation or warranty; provided, however, that for purposes of determining when an indemnification claim has been made, the date upon which a Purchaser
Related Party shall have given notice (stating in reasonable detail the basis of the claim for indemnification) to the Partnership shall constitute the date upon which such claim has been made; and provided, further, that the aggregate
liability of the Partnership to each Purchaser pursuant to this Section 6.01 shall not be greater in amount than such Purchaser’s Funding Obligation, and the aggregate liability of the Partnership to all Purchasers pursuant to this
Section 6.01 shall not exceed the Total Funding Obligation. No Purchaser Related Party shall be entitled to recover special, indirect, exemplary, incidental, lost profits, speculative or punitive damages under this
Section 6.01; provided, however, that such limitation shall not prevent any Purchaser Related Party from recovering under this Section 6.01 for any such damages to the extent that
such damages are direct damages in the form of diminution in value or are payable to a third party in connection with any Third-Party Claims. 

Section 6.02    Indemnification by the Purchasers. Each Purchaser agrees, severally and
not jointly or jointly and severally, to indemnify the Partnership, the General Partner and their respective Representatives (collectively, “Partnership Related Parties”) from, costs, losses,

  
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liabilities, damages, or expenses of any kind or nature whatsoever, and hold each of them harmless against, any and all actions, suits, proceedings (including any investigations, litigation or
inquiries), demands, and causes of action, and, in connection therewith, promptly upon demand, pay or reimburse each of them for all costs, losses, liabilities, damages, or expenses of any kind or nature whatsoever (including the reasonable fees and
disbursements of counsel and all other reasonable expenses incurred in connection with investigating, defending or preparing to defend any such matter that may be incurred by them or asserted against or involve any of them), whether or not involving
a Third-Party Claim, as a result of, arising out of, or in any way related to (a) the failure of any of the representations or warranties made by such Purchaser contained herein to be true and correct in all material respects as of the date
made (except to the extent any representation or warranty includes the word “material,” Material Adverse Effect or words of similar import, with respect to which such representation or warranty, or applicable portions thereof, must have
been true and correct) or (b) the breach of any of the covenants of such Purchaser contained herein; provided that, in the case of the immediately preceding clause (a), such claim for indemnification relating to a breach of any
representation or warranty is made prior to the expiration of the survival period of such representation or warranty; and provided, further, that for purposes of determining when an indemnification claim has been made, the date upon which a
Partnership Related Party shall have given notice (stating in reasonable detail the basis of the claim for indemnification) to such Purchaser shall constitute the date upon which such claim has been made; and provided, further, that the
liability of each such Purchaser shall not be greater in amount than the sum of such Purchaser’s Funding Obligation plus any distributions paid to such Purchaser with respect to the Purchased Units. No Partnership Related Party shall be
entitled to recover special, indirect, exemplary, lost profits, speculative or punitive damages under this Section 6.02; provided, however, that such limitation shall not prevent any Partnership Related Party from
recovering under this Section 6.02 for any such damages to the extent that such damages are in the form of diminution in value or are payable to a third party in connection with any Third-Party Claims. 

Section 6.03    Indemnification Procedure. 

(a)        A claim for indemnification for any matter not involving a Third-Party
Claim may be asserted by notice to the party from whom indemnification is sought; provided, however, that failure to so notify the indemnifying party shall not preclude the indemnified party from any indemnification which it may claim in accordance
with this Article VI, except as otherwise provided in Section 6.01. 

(b)        As soon as reasonably practicable after any Purchaser Related Party or
Partnership Related Party (hereinafter, the “Indemnified Party”) has received notice of any indemnifiable claim hereunder, or the commencement of any action, suit or proceeding by a third person, which the Indemnified Party believes
in good faith is an indemnifiable claim under this Agreement (each a “Third-Party Claim”), the Indemnified Party shall give the indemnitor hereunder (the “Indemnifying Party”) written notice of such Third-Party
Claim, but failure to so notify the Indemnifying Party will not relieve the Indemnifying Party from any liability it may have to such Indemnified Party hereunder except to the extent that the Indemnifying Party is materially prejudiced by such
failure. Such notice shall state the nature and the basis of such Third-Party Claim to the extent then known. The Indemnifying Party shall have the right to defend and settle, at its own expense and by its own counsel who shall be reasonably
acceptable to the Indemnified Party, any such matter as long as the Indemnifying Party pursues the same diligently 

  
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and in good faith. If the Indemnifying Party undertakes to defend or settle, it shall promptly, and in no event later than ten (10) days, notify the Indemnified Party of its intention to do
so, and the Indemnified Party shall cooperate with the Indemnifying Party and its counsel in all commercially reasonable respects in the defense thereof and the settlement thereof. Such cooperation of the Indemnified Party shall be at the cost of
the Indemnifying Party. After the Indemnifying Party has notified the Indemnified Party of its intention to undertake to defend or settle any such asserted liability, and for so long as the Indemnifying Party diligently pursues such defense, the
Indemnifying Party shall not be liable for any additional legal expenses incurred by the Indemnified Party in connection with any defense or settlement of such asserted liability; provided, however, that the Indemnified Party shall be
entitled (i) at its expense, to participate in the defense of such asserted liability and the negotiations of the settlement thereof and (ii) if (A) the Indemnifying Party has, within ten (10) Business Days of when the
Indemnified Party provides written notice of a Third-Party Claim, failed to assume the defense or employ counsel reasonably acceptable to the Indemnified Party and to notify the Indemnified Party of such assumption or (B) if the defendants in
any such action include both the Indemnified Party and the Indemnifying Party and counsel to the Indemnified Party shall have concluded that there may be reasonable defenses available to the Indemnified Party that are different from or in addition
to those available to the Indemnifying Party or if the interests of the Indemnified Party reasonably may be deemed to conflict with the interests of the Indemnifying Party, then the Indemnified Party shall have the right to select a separate counsel
and to assume such legal defense and otherwise to participate in the defense of such action, with the expenses and fees of such separate counsel and other expenses related to such participation to be reimbursed by the Indemnifying Party as incurred.
Notwithstanding any other provision of this Agreement, the Indemnifying Party shall not settle any indemnified claim without the consent of the Indemnified Party, unless the settlement thereof imposes no liability or obligation on, and includes a
complete and unconditional release from liability of, and does not include any admission of wrongdoing or malfeasance by, the Indemnified Party or its Affiliates. The remedies provided for in this Section 6.03 are
cumulative and are not exclusive of any remedies that may be available to a party at law or in equity or otherwise. 

Section 6.04    Tax Matters. All indemnification payments under this Article VI shall be
adjustments to the Purchaser’s Purchase Price except as otherwise required by applicable Law. 
 ARTICLE VII 

MISCELLANEOUS 

Section 7.01    Expenses. Promptly following receipt of an invoice therefor, the Partnership
shall reimburse (x) the Lead Purchaser for the reasonable fees and expenses of Schulte Roth & Zabel, LLP of $425,000.00 and (y) Vinson & Elkins for its reasonable fees and expenses of $2,000,000.00; provided, that
for U.S. federal income tax purposes, the reimbursements described in Section 7.01(x) are, and will be treated by the parties as, adjustments to the Purchase Price paid by the Purchasers for the Purchased Units. All other
costs and expenses, including fees and disbursements of financial advisers and accountants, incurred in connection with the Transaction Documents and the transactions contemplated thereby shall be paid by the party incurring such costs and expenses.

 Section 7.02    Interpretation. Article, Section, Schedule and Exhibit references in this
Agreement are references to the corresponding Article, Section, Schedule or Exhibit to this 

  
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Agreement, unless otherwise specified. All Exhibits and Schedules to this Agreement are hereby incorporated and made a part hereof as if set forth in full herein and are an integral part of this
Agreement. All references to instruments, documents, Contracts and agreements are references to such instruments, documents, Contracts and agreements as the same may be amended, supplemented and otherwise modified from time to time, unless otherwise
specified. The word “including” shall mean “including but not limited to” and shall not be construed to limit any general statement that it follows to the specific or similar items or matters immediately following it. Whenever
the Partnership has an obligation under the Transaction Documents, the expense of complying with that obligation shall be an expense of the Partnership unless otherwise specified. Any reference in this Agreement to “$” shall mean U.S.
dollars. Whenever any determination, consent or approval is to be made or given by a Purchaser, such action shall be in such Purchaser’s sole discretion, unless otherwise specified in this Agreement. If any provision in the Transaction
Documents is held to be illegal, invalid, not binding or unenforceable, (a) such provision shall be fully severable and the Transaction Documents shall be construed and enforced as if such illegal, invalid, not binding or unenforceable
provision had never comprised a part of the Transaction Documents, and the remaining provisions shall remain in full force and effect so long as this Agreement as so modified continues to express, without material change, the original intentions of
the parties as to the subject matter hereof and the prohibited nature, invalidity or unenforceability of the provision(s) in question does not substantially impair the respective expectations or reciprocal obligations of the parties or the practical
realization of the benefits that would otherwise be conferred upon the parties. The parties will endeavor in good faith negotiations to replace the prohibited, invalid or unenforceable provision(s) with a valid provision(s), the effect of which
comes as close as possible to that of the prohibited, invalid or unenforceable provision(s), and (b) the parties hereto shall negotiate in good faith to modify the Transaction Documents so as to effect the original intent of the parties as
closely as possible in an acceptable manner in order that the transactions contemplated hereby are consummated as originally contemplated to the greatest extent possible. When calculating the period of time before which, within which or following
which any act is to be done or step taken pursuant to the Transaction Documents, the date that is the reference date in calculating such period shall be excluded. If the last day of such period is a
non-Business Day, the period in question shall end on the next succeeding Business Day. Any words imparting the singular number only shall include the plural and vice versa. The words such as
“herein,” “hereinafter,” “hereof” and “hereunder” refer to this Agreement as a whole and not merely to a subdivision in which such words appear unless the context otherwise requires. The provision of a Table
of Contents, the division of this Agreement into Articles, Sections and other subdivisions and the insertion of headings are for convenience of reference only and shall not affect or be utilized in construing or interpreting this Agreement. 

Section 7.03    Survival of Provisions. (A) The representations and warranties set forth
in Section 3.01(a), Section 3.02, Section 3.12, Section 3.15, Section 3.17, Section 4.01, Section 4.02, Section 4.04, and Sections 4.05(a) and (b) hereunder shall survive the execution and delivery
of this Agreement indefinitely, (B) the representations and warranties set forth in Section 3.24 and Section 3.30 shall survive until the date that is 60 days after the expiration of the applicable statute of limitation and
(C) the other representations and warranties set forth herein shall survive for a period of eighteen (18) months following the Closing Date, regardless of any investigation made by or on behalf of the Partnership or the Purchasers. The
covenants made in this Agreement or any other Transaction Document shall survive the Closing and remain operative and in full force 

  
 30 

 
and effect regardless of acceptance of any of the Purchased Units and payment therefor and repayment, conversion or repurchase thereof. 

Section 7.04    No Waiver; Modifications in Writing. 

(a)        Delay. No failure or delay on the part of any party in exercising
any right, power or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such right, power or remedy preclude any other or further exercise thereof or the exercise of any other right, power or remedy.
The remedies provided for herein are cumulative and are not exclusive of any remedies that may be available to a party at law or in equity or otherwise. 

(b)        Specific Waiver. Except as otherwise provided herein, no amendment,
waiver, consent, modification or termination of any provision of any Transaction Document (except in the case of the Partnership Agreement for amendments adopted pursuant to Article XIII thereof) shall be effective against a Purchaser unless signed
by such Purchaser. Any amendment, supplement or modification of or to any provision of any Transaction Document, any waiver of any provision of any Transaction Document and any consent to any departure by the Partnership from the terms of any
provision of any Transaction Document shall be effective only in the specific instance and for the specific purpose for which made or given. Except where notice is specifically required by this Agreement, no notice to or demand on the Partnership in
any case shall entitle the Partnership to any other or further notice or demand in similar or other circumstances. Any investigation by or on behalf of any party shall not be deemed to constitute a waiver by the party taking such action of
compliance with any representation, warranty, covenant or agreement contained herein. 

Section 7.05    Binding Effect. This Agreement shall be binding upon the Partnership, each of
the Purchasers and their respective successors and permitted assigns. Except as expressly provided in this Agreement, this Agreement shall not be construed so as to confer any right or benefit upon any Person other than the parties to this Agreement
and their respective successors and permitted assigns. 
 Section 7.06    Non-Disclosure. The Partnership and the General Partner agree that the Purchasers may (i) publicize their ownership in the Partnership, as well as the identity of the Partnership, the size of the investment
and its pricing terms with respect to the Series A Preferred Units on its internet site or in marketing materials, press releases, published “tombstone” announcements or any other print or electronic medium or in any regulatory filing and
(ii) display the Partnership’s logo in conjunction with any such reference. 

Section 7.07    Communications. All notices and demands provided for hereunder shall be in
writing and shall be given by registered or certified mail, return receipt requested, facsimile, email, air courier guaranteeing overnight delivery or personal delivery to the following addresses 

(a)        If to a Purchaser affiliated with Axar Capital Management L.P., to the
address set forth on Schedule A, with a copy to (which shall not constitute notice): 
 Schulte Roth &
Zabel, LLP 
 919 Third Avenue 

  
 31 

 New York, NY 10022 

Attention: Stuart D. Freedman 

Facsimile: 212-593-5955 

Email: Stuart.freedman@srz.com 

(b)          If to another Purchaser, to the address set forth on
Schedule A 
 (c)          If to the Partnership: 

StoneMor Partners L.P. 

3600 Horizon Boulevard 

Trevose, PA 19053 

Attention: General Counsel 

Email: aso@stonemor.com 
 with a copy to (which shall not constitute notice): 

Vinson & Elkins L.L.P. 

1001 Fannin Street 

Suite 2500 

Houston TX 77002-6760 

Attention: David P. Oelman 

Email: doelman@velaw.com 

or to such other address as the Partnership or the Purchasers may designate in writing. All notices and communications shall be deemed to have
been duly given: at the time delivered by hand, if personally delivered; upon actual receipt if sent by certified or registered mail, return receipt requested, or regular mail, if mailed; upon actual receipt of the overnight courier copy, upon
actual receipt if sent via email or facsimile; and upon actual receipt when delivered to an air courier guaranteeing overnight delivery. 

Section 7.08    Removal of Legend. In connection with a sale of the Conversion Units by a
Purchaser in reliance on Rule 144 promulgated under the Securities Act, the applicable Purchaser or its broker shall deliver to the Partnership a broker representation letter providing to the Partnership any information the Partnership deems
necessary to determine that the sale of such Units is made in compliance with Rule 144 promulgated under the Securities Act, including, as may be appropriate, a certification as to facts allowing the Partnership to determine whether such Purchaser
is or is not an affiliate of the Partnership (as defined in Rule 144 promulgated under the Securities Act) and a certification as to the length of time the such Units have been held. Upon receipt of such representation letter, the Partnership shall
promptly remove the notation of a restrictive legend in such Purchaser’s or the book-entry account maintained by the Partnership, including the legend referred to in Section 4.05, and the Partnership shall bear all
costs (or reimburse such Purchaser for such reasonable costs) associated therewith. At such time as the Conversion Units have been sold pursuant to an effective registration statement under the Securities Act or have been held by any Purchaser for
more than one year where such Purchaser is not, and has not been in the preceding three months, an affiliate of the Partnership (as defined 

  
 32 

 
in Rule 144 promulgated under the Securities Act), if the book-entry account of such Units still bears the notation of the restrictive legend referred to in
Section 4.05, the Partnership agrees, upon request of the Purchaser or permitted assignee, to take all steps necessary to promptly effect the removal of the legend described in Section 4.05 from
such Units, and the Partnership shall bear all costs (or reimburse such Purchaser for such reasonable costs) associated therewith, regardless of whether the request is made in connection with a sale or otherwise, so long as such Purchaser or its
permitted assigns provide to the Partnership any information the Partnership deems reasonably necessary to determine that the legend is no longer required under the Securities Act or applicable state laws, including (if there is no such registration
statement) a certification as to facts allowing the Partnership to determine whether such Purchaser is or is not an affiliate of the Partnership (as defined in Rule 144 promulgated under the Securities Act), as well as a covenant to inform the
Partnership if it should thereafter become an affiliate (as defined in Rule 144 promulgated under the Securities Act) and to consent to the notation of an appropriate restriction, and a certification as to the length of time such Units have been
held. The Partnership shall cooperate with each Purchaser to effect the removal of the legend referred to in Section 4.05 at any time such legend is no longer appropriate. 

Section 7.09    Entire Agreement. This Agreement, the other Transaction Documents and the
other agreements and documents referred to herein are intended by the parties as a final expression of their agreement and intended to be a complete and exclusive statement of the agreement and understanding of the parties hereto in respect of the
subject matter contained herein and therein. There are no restrictions, promises, warranties or undertakings, other than those set forth or referred to herein or the other Transaction Documents with respect to the rights granted by the Partnership
or any of its Affiliates or the Purchasers or any of their respective Affiliates set forth herein or therein. This Agreement, the other Transaction Documents and the other agreements and documents referred to herein or therein supersede all prior
agreements and understandings between the parties with respect to such subject matter. 

Section 7.10    Governing Law; Submission to Jurisdiction. This Agreement, and all claims or
causes of action (whether in contract or tort) that may be based upon, arise out of or relate to this Agreement or the negotiation, execution or performance of this Agreement (including any claim or cause of action based upon, arising out of or
related to any representation or warranty made in or in connection with this Agreement), will be construed in accordance with and governed by the laws of the State of New York without regard to principles of conflicts of laws. Any action against any
party relating to the foregoing shall be brought in any federal or state court of competent jurisdiction located within the State of New York, and the parties hereto hereby irrevocably submit to the
non-exclusive jurisdiction of any federal or state court located within the State of New York over any such action. The parties hereby irrevocably waive, to the fullest extent permitted by applicable Law, any
objection which they may now or hereafter have to the laying of venue of any such dispute brought in such court or any defense of inconvenient forum for the maintenance of such dispute. Each of the parties hereto agrees that a judgment in any such
dispute may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by Law. 

Section 7.11    Waiver of Jury Trial. THE PARTIES TO THIS AGREEMENT EACH HEREBY WAIVES, AND
AGREES TO CAUSE ITS AFFILIATES TO WAIVE, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY RIGHT TO TRIAL BY JURY OF ANY 

  
 33 

 
CLAIM, DEMAND, ACTION OR CAUSE OF ACTION (a) ARISING UNDER THIS AGREEMENT OR (b) IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO IN RESPECT OF
THIS AGREEMENT OR ANY OF THE TRANSACTIONS RELATED HERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER IN CONTRACT, TORT, EQUITY OR OTHERWISE. THE PARTIES TO THIS AGREEMENT EACH HEREBY AGREES AND CONSENTS THAT ANY SUCH CLAIM,
DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY AND THAT THE PARTIES TO THIS AGREEMENT MAY FILE AN ORIGINAL COUNTERPART OF A COPY OF THIS AGREEMENT WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE PARTIES
HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY. 
 Section 7.12    Exclusive Remedy.

 (a)        Each party hereto hereby acknowledges and agrees that the rights of
each party to consummate the transactions contemplated hereby are special, unique and of extraordinary character and that, if any party violates or fails or refuses to perform any covenant or agreement made by it herein, the non-breaching party may be without an adequate remedy at law. If any party violates or fails or refuses to perform any covenant or agreement made by such party herein, the
non-breaching party subject to the terms hereof, may institute and prosecute an action in any court of competent jurisdiction to enforce specific performance of such covenant or agreement or seek any other
equitable relief. 
 (b)        The sole and exclusive remedy for the Purchasers
for any and all claims arising under, out of, or related to this Agreement or the transactions contemplated hereby, excluding for the avoidance of doubt, the failure of any of the representations or warranties contained in any Transaction Document
other than this Agreement to be true and correct as of the date made, shall be the rights of indemnification set forth in Article VI only, and no Purchaser will have any other entitlement, remedy or recourse, whether in contract, tort or
otherwise, it being agreed that all of such other remedies, entitlements and recourse are expressly waived and released by the Purchasers to the fullest extent permitted by Law. Notwithstanding anything in the foregoing to the contrary, nothing in
this Agreement shall limit or otherwise restrict a fraud claim brought by any party hereto or the right to seek specific performance pursuant to Section 7.12(a). 

Section 7.13    No Recourse Against Others. 

(a)        All claims, obligations, liabilities or causes of action (whether in
contract or in tort, in law or in equity, or granted by statute) that may be based upon, in respect of, arise under, out or by reason of, be connected with or relate in any manner to this Agreement, or the negotiation, execution or performance of
this Agreement (including any representation or warranty made in, in connection with, or as an inducement to, this Agreement), may be made only against (and are expressly limited to) the Partnership and the Purchasers. No Person other than the
Partnership or the Purchasers, including no member, partner, stockholder, Affiliate or Representative thereof, nor any member, partner, stockholder, Affiliate or Representative of any of the foregoing, shall have any liability (whether in contract
or in tort, in law or in equity, or granted by statute) for any claims, causes of action, obligations or liabilities arising under, out of, in connection with or related in any manner to this Agreement or based on, in respect of or by

  
 34 

 
reason of this Agreement or its negotiation, execution, performance or breach; and, to the maximum extent permitted by Law, each of the Partnership and the Purchasers hereby waives and releases
all such liabilities, claims, causes of action and obligations against any such third Person. 

(b)        Without limiting the foregoing, to the maximum extent permitted by Law,
(i) each of the Partnership and the Purchasers hereby waives and releases any and all rights, claims, demands or causes of action that may otherwise be available at law or in equity, or granted by statute, to avoid or disregard the entity form
of the other or otherwise impose liability of the other on any third Person, whether granted by statute or based on theories of equity, agency, control, instrumentality, alter ego, domination, sham, single business enterprise, piercing the veil,
unfairness, undercapitalization or otherwise; and (ii) each of the Partnership and the Purchasers disclaims any reliance upon any third Person with respect to the performance of this Agreement or any representation or warranty made in, in
connection with or as an inducement to this Agreement. 
 Section 7.14    No Third-Party
Beneficiaries. Nothing in this Agreement, express or implied, is intended to or shall confer upon any Person, other than the Partnership, the Purchasers, for purposes of Article VI only, the Purchaser Released Parties, and, for purposes
of Section 7.13 only, any member, partner, stockholder, Affiliate or Representative of the Partnership or the Purchasers, or any member, partner, stockholder, Affiliate or Representative of any of the foregoing, any right, benefit or remedy of
any nature whatsoever under or by reason of this Agreement. 
 Section 7.15    Execution in
Counterparts. This Agreement may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which counterparts, when so executed and delivered, shall be deemed to be an original and all of which
counterparts, taken together, shall constitute but one and the same agreement. 
 [Remainder of page intentionally left blank. Signature page
follows.] 

  
 35 

 IN WITNESS WHEREOF, the parties hereto execute this Agreement, effective as of
the date first above written. 
  

					
	 STONEMOR PARTNERS L.P.

		
	 By:    
	 	StoneMor GP LLC, its general partner
			
		 	 By:
	 	 /s/ Joseph M. Redling

		 	 Name:
	 	 Joseph M. Redling

		 	 Title:
	 	 President and Chief Executive Officer

  
 [Signature page to
Purchase Agreement] 

 
	
	PURCHASERS
	
	AXAR
	
	SMP SPV LLC
	
	By: Axar Capital Management LP, its Investment Manager
	
	By: /s/ Andrew Axelrod                                
    
	Name: Andrew Axelrod
	Title: Authorized Signatory
	
	STAR V PARTNERS LLC
	
	By: Axar Capital Management LP, its Investment Manager
	
	By: /s/ Andrew
Axelrod                                    
	Name: Andrew Axelrod
	Title: Authorized Signatory
	
	BLACKWELL PARTNERS LLC – SERIES E, solely with respect to the assets for which Axar Capital Management LP acts as its Investment Manager
	
	By: Axar Capital Management LP, its Investment Manager
	
	By: /s/ Andrew
Axelrod                                    
	Name: Andrew Axelrod
	Title: Authorized Signatory

  
 [Signature page to
Purchase Agreement] 

 
	
	 /s/ David Miller

	David Miller

  
 [Signature page to
Purchase Agreement] 

 
	
	MANGROVE PARTNERS
	
	MPF INVESTCO 6, LLC
	
	By: The Mangrove Partners Fund (Cayman Drawdown), L.P., its sole member
	
	By: Mangrove Partners, its investment manager
	
	By: /s/ Ward
Dietrich                                    
	Name: Ward Dietrich
	Title: Authorized Person
	
	MPF INVESTCO 7, LLC
	
	By: The Mangrove Partners i-Feeder 1, Ltd., its sole member
	
	By: Mangrove Partners, its investment manager
	
	By: /s/ Ward
Dietrich                                    
	Name: Ward Dietrich
	Title: Authorized Person
	
	MPF INVESTCO 8, LLC
	
	By: The Mangrove Partners Fund (Cayman), Ltd., its sole member
	
	By: Mangrove Partners, its investment manager
	
	By: /s/ Ward
Dietrich                                    
	Name: Ward Dietrich
	Title: Authorized Person

  
 [Signature page to
Purchase Agreement] 

 
	
	THE MANGROVE PARTNERS FUND, L.P.
	
	By: Mangrove Partners, its investment manager
	
	By: /s/ Ward
Dietrich                                    
	Name: Ward Dietrich
	Title: Authorized Person
	
	 THE MANGROVE PARTNERS FUND
 (CAYMAN
PARTNERSHIP), L.P.

	
	By: Mangrove Partners, its investment manager
	
	By: /s/ Ward
Dietrich                                    
	Name: Ward Dietrich
	Title: Authorized Person

  
 [Signature page to
Purchase Agreement] 

 Schedule A 

Purchase Price Allocation 
  

					
	 Purchaser and Address
	  	
    Purchased Units    
	  	
  Funding Obligation  

			
	 SMP SPV LLC

c/o Axar Capital Management, LP

1330 Avenue of the Americas, 30th Floor

New York, NY 10019

Attention: Andrew Axelrod

E-mail: aaxelrod@axarcapital.com
	  	24,963,768	  	$27,560,000.00
		  	  
	  	  

			
	 Star V Partners LLC

c/o Axar Capital Management, LP

1330 Avenue of the Americas, 30th Floor

New York, NY 10019

Attention: Andrew Axelrod

E-mail: aaxelrod@axarcapital.com
	  	6,476,449	  	$7,150,000.00
		  	  
	  	  

			
	 Blackwell Partners LLC – Series E

c/o Axar Capital Management, LP

1330 Avenue of the Americas, 30th Floor

New York, NY 10019

Attention: Andrew Axelrod

E-mail: aaxelrod@axarcapital.com
	  	8,324,275	  	$9,190,000.00
		  	  
	  	  

			
	 MPF InvestCo 6, LLC

c/o Mangrove Partners

645 Madison Avenue, 14th Floor

New York, NY 10022

Attention: Ward Dietrich

Email: WDietrich@MangrovePartners.com
	  	1,455,949	  	$1,607,367.34
		  	  
	  	  

			
	 MPF InvestCo 7, LLC

c/o Mangrove Partners

645 Madison Avenue, 14th Floor

New York, NY 10022

Attention: Ward Dietrich

Email: WDietrich@MangrovePartners.com
	  	594,385	  	$656,200.89
		  	  
	  	  

  
 Schedule A 

					
			
	 MPF InvestCo 8, LLC

c/o Mangrove Partners

645 Madison Avenue, 14th Floor

New York, NY 10022

Attention: Ward Dietrich

Email: WDietrich@MangrovePartners.com
	  	1,585,145	  	$1,750,000.00
		  	  
	  	  

			
	 The Mangrove Partners Fund, L.P.

c/o Mangrove Partners

645 Madison Avenue, 14th Floor

New York, NY 10022

Attention: Ward Dietrich

Email: WDietrich@MangrovePartners.com
	  	2,011,493	  	$2,220,687.78
		  	  
	  	  

			
	 The Mangrove Partners Fund (Cayman Partnership), L.P.

c/o Mangrove Partners

645 Madison Avenue, 14th Floor

New York, NY 10022

Attention: Ward Dietrich

Email: WDietrich@MangrovePartners.com
	  	5,675,493	  	$6,265,743.99
		  	  
	  	  

			
	 David Miller

1451 Brandywine lane

Wayne, PA 19087

Email: david@chesterbrookfinancial.com
	  	996,377	  	$1,100,000.00
		  	  
	  	  

			
	 Total:
	  	52,083,333	  	$57,500,000.00
		  	  
	  	  

  
 Schedule A 

 Schedule B 

Board of Director Designees 
  

	 	1.	 Andrew Axelrod 

  

	 	2.	 Spencer Goldenberg 

 

	 	3.	 David Miller 

  

	 	4.	 Stephen Negrotti 

 

	 	5.	 Patricia D. Wallenbach 

 

	 	6.	 Robert Hellman, Jr. 

 

	 	7.	 Joseph Redling 

  
 Schedule B 

 EXHIBIT D 

FORM OF OPINION OF VINSON & ELKINS L.L.P. 

Capitalized terms used but not defined herein have the meanings assigned to such terms in the Series A Preferred Unit Purchase
Agreement (the “Purchase Agreement”). The Partnership shall furnish to the Purchasers at the Closing an opinion of Vinson & Elkins L.L.P., counsel for the Partnership, addressed to the Purchasers and dated the
Closing Date in form satisfactory to the Purchasers, stating that: 
 In connection with the opinions expressed below, we
have examined the following: 
 (i)        The Purchase Agreement; 

(ii)        the constitutive documents (the “Organizational
Documents”) of the entities listed on Schedule I hereto (the “Covered Opinion Parties”)1; 

(iii)        copies of certain resolutions duly adopted by the Board of Directors of
the StoneMor GP LLC and the Conflicts Committee thereof; and 
 (iv)        such
other documents as we have deemed appropriate for purposes of the opinions expressed below. 
 (i) Each of the Covered
Opinion Parties is validly existing and in good standing under the laws of its jurisdiction of formation. Each of the Covered Opinion Parties has all requisite corporate, limited liability company or partnership power and authority, as applicable,
under the laws of its jurisdiction of formation necessary to own or lease its properties and to conduct its business, in each case as described in the Partnership SEC Documents. The Covered Opinion Parties are each duly qualified to do business and
are each in good standing in each jurisdiction listed on Schedule I. 
 (ii) Other than the preemptive rights of the General
Partner set forth in the Partnership Agreement which are being waived in connection with the issuance of the Purchased Units, there are no preemptive rights or other rights to subscribe for or to purchase, nor any restriction upon the voting or
transfer of, any interests in the Partnership pursuant to the Organizational Documents of the Partnership or the General Partner. 

(iii) The Purchased Units to be issued and sold to the Purchasers by the Partnership pursuant to the Purchase Agreement and
the limited partner interests represented thereby have been duly authorized in accordance with the Partnership Agreement and, when issued and delivered to the Purchasers against payment therefor in accordance with the terms of the Purchase
Agreement, will be validly issued in accordance with the terms of the Partnership Agreement, fully paid and nonassessable (except as such nonassessability may be affected by matters described in Sections 17-303, 17-607 and 17-804 of the Delaware LP
Act). 
  
  

1 Schedule to include StoneMor GP LLC. 

  
 Exhibit D 

 (v) The Conversion Units have been duly authorized by the General Partner on
behalf of the Partnership pursuant to the Partnership Agreement and, when issued upon conversion of the Purchased Units in accordance with the terms of the Partnership Agreement, will be validly issued, fully paid (to the extent required by
applicable law and the Partnership Agreement) and nonassessable (except as such nonassessability may be affected by Sections 17-303, 17-607 and 17-804 of the Delaware LP Act). 
 (vi) No consent, approval, authorization, filing with
or order of any federal or Delaware court, Governmental Authority is required for the issuance and sale by the Partnership or the General Partner of the Purchased Units, the execution, delivery and performance by the Partnership or the General
Partner of the Opinion Documents to which it is a party, or the consummation of the transactions contemplated by the Opinion Documents, except (A) as may be required in connection with the Partnership’s obligations under the Registration
Rights Agreement to register the resale of the Conversion Units under the Securities Act, (B) those that have been obtained, (C) as may be required under state securities or “Blue Sky” laws, as to which we do not express any
opinion, (D) as are contemplated in the Transaction Documents, or (E) such that the failure to obtain would not reasonably be expected to have a Material Adverse Effect. 

(vii) Assuming the accuracy of the representations and warranties of the Purchasers and the Partnership contained in the
Purchase Agreement, the offer, issuance and sale of the Purchased Units by the Partnership to the Purchasers solely in the manner contemplated by the Purchase Agreement are, and the issuance and delivery of the Conversion Units will be, exempt from
the registration requirements of the Securities Act; provided, however, that we express no opinion as to any subsequent sale or resale of the Purchased Units or the Conversion Units. 

(viii) The Partnership is not an “investment company” as such term is defined in the Investment Company Act of 1940,
as amended. 
 (ix) None of the offering, issuance or sale by the Partnership of the Purchased Units or the execution,
delivery and performance of the Opinion Documents by the Partnership or the General Partner, as the case may be, or the consummation of the transactions contemplated thereby will result in a breach or violation of, or constitute a default (or an
event which, with the giving of notice or lapse of time or both, constitutes or would constitute a default) under, or give rise to any right of termination, cancellation or acceleration under (A) the Organizational Documents of the Partnership
or the General Partner, as the case may be, (B) the Delaware LP Act, the Delaware Limited Liability Company Act (the “Delaware LLC Act”) or U.S. federal law, which in the case of clause (B), would be reasonably expected to have a
Material Adverse Effect. 
 (x) Each of Opinion Documents has been duly authorized and validly executed and delivered by the
Partnership or the General Partner, as the case may be, and the Third A&R LPA constitutes a valid and binding obligation of the General Partner, enforceable against the General Partner in accordance with its terms, and the A&R GP LLC
Agreement constitutes a valid and binding obligation of StoneMor GP Holdings LLC and the General Partner, enforceable against StoneMor GP Holdings LLC and the General Partner in accordance with its terms, except insofar as the enforceability thereof
may be limited by (A) applicable bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium or similar laws from time to time in effect affecting creditors’ rights and remedies generally and by general principles of equity
(regardless of whether such 

  
 Exhibit D 

 
principles are considered in a proceeding in equity or at law) and (B) public policy, applicable law relating to fiduciary duties and indemnification and an implied covenant of good faith
and fair dealing. The Partnership, the General Partner and StoneMor GP Holdings LLC each has the requisite power and authority to execute, deliver and perform all of its obligations under the Opinion Documents, including, without limitation, the
issuance of the Securities in accordance with the terms thereof. 

  
 Exhibit D 

 Schedule I 

Operating Subsidiaries 
  

					
	Name of Entity	  	
Jurisdiction of  

Formation
	  	
Other Jurisdictions of Registration or

Qualification

	 [●]
	  	[●]	  	
[●]

  
 Exhibit D 

 EXHIBIT H 

OFFICER’S CERTIFICATE 

OF 
 STONEMOR PARTNERS
L.P. 
 June 27, 2019 

Reference is made to that certain Series A Preferred Unit Purchase Agreement, dated as of June 27, 2019, by and among
StoneMor Partners L.P., a Delaware limited partnership (the “Partnership”), and the purchasers set forth on Schedule A thereto (as such agreement may be amended from time to time, the “Purchase
Agreement”). All capitalized terms used herein but not otherwise defined shall have the meanings ascribed to them in the Purchase Agreement. Pursuant to Section 2.02(a)(vi) of the Purchase Agreement, [•], in his capacity as
[•] of StoneMor GP LLC, a Delaware limited liability company and the general partner of the Partnership, hereby certifies on behalf of the Partnership that: 
  

	 	1.	 the representations and warranties of the Partnership are true and correct in all material respects (except
for those representations and warranties that are qualified by materiality or Material Adverse Effect, which are true and correct in all respects) as of the date hereof (except for representations and warranties that speak as of a specific date
which are true and correct in all material respects (except for those representations and warranties that are qualified by materiality or Material Adverse Effect, which are true and correct in all respects) as of such specified date) and the
Partnership has performed, satisfied and complied in all material respects with the covenants, agreements and conditions required by the Transaction Documents to be performed, satisfied or complied with by the Partnership at or prior to the date
hereof. 

 [Signature page follows.] 

 IN WITNESS WHEREOF, the undersigned has executed this Officer’s Certificate
as of the date first set forth above. 
  

	
	 STONEMOR GP LLC

	
	By: __________________________________
	 Name:

	 Title:

  
 Exhibit H 

 EXHIBIT I 

FORM OF GENERAL PARTNER WAIVER 

June 27, 2019 

StoneMor GP LLC (the “General Partner”), a Delaware limited liability company and the general partner of
StoneMor Partners LP (the “Partnership”), in its own capacity and in its capacity as the general partner of the Partnership, hereby waives any preemptive rights it may hold pursuant to Section 5.9 of the Second Amended and
Restated Agreement of Limited Partnership of the Partnership, dated as of September 9, 2008 (as amended, including, without limitation, by the Third Amended and Restated Agreement of Limited Partnership of the Partnership, dated as of
June 27, 2019, the “Partnership Agreement”), with respect to the Partnership’s privately negotiated Series A Preferred Unit Purchase Agreement, dated as of June 27, 2019, by and among the Partnership and each of the
Purchasers set forth in Schedule A thereto (the “Purchase Agreement”), to issue and sell an aggregate of 52,083,333 Series A Preferred Units representing limited partner interests of the Partnership for a cash purchase price
of $1.1040 per Series A Preferred Unit. 
 IN WITNESS WHEREOF, the undersigned executes this General Partner Waiver,
effective as of the date first above written. 
  

	
	 StoneMor GP LLC

	
	By: __________________________________
	 Name:

	 Title:

  
 Exhibit I

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