Document:

Contribution, Conveyance and Assumption Agreement

  
 Exhibit 10.2

  
 CONTRIBUTION, CONVEYANCE AND 
 ASSUMPTION AGREEMENT 
  
 STONEMOR PARTNERS L.P. 
  

  
 INDEX 
  

					
	 Article I Definitions; Schedules; Recordation
	  	8
			
	 1.1
	  	 Definitions
	  	8
	 1.2
	  	 Schedules
	  	13
	 1.3
	  	 Recordation of Evidence of Ownership of Assets
	  	15
		
	 Article II Concurrent Transactions
	  	15
			
	 2.1
	  	Contribution and Conveyance by CFSI LLC to the OLP of the Aggregate Cemetery LLC Interests, the Association Notes, the NJ NQ Sub Stock, and the Miscellaneous Companies Stock	  	15
	 2.2
	  	 Contribution and Conveyance by CFSI LLC to the GP of the CFSI LLC Partial OLP Interest
	  	15
	 2.3
	  	 Contribution and Conveyance by the GP to the MLP of the CFSI LLC Partial OLP Interest
	  	16
	 2.4
	  	 Contribution and Conveyance by CFSI LLC to the MLP of the CFSI LLC Remaining OLP Interests
	  	16
	 2.5
	  	 Public Cash Contribution
	  	16
	 2.6
	  	 MLP Receipt of Cash Contribution
	  	16
	 2.7
	  	 Contribution of Cash by the MLP to the OLP
	  	16
	 2.8
	  	 Borrowing by Distribution NQ Subs and Payment of Sub Notes
	  	16
	 2.9
	  	 Distribution of Sub Note Payment Proceeds to the OLP by the Parent Cemetery LLCs
	  	17
	 2.10
	  	Payment of Debt Offering Costs and CFSI LLC Indebtedness from the Net Debt Proceeds and the Sub Note Payment Proceeds	  	17
	 2.11
	  	 Specific Conveyances
	  	17
		
	 Article III Assumption of Certain Liabilities
	  	17
			
	 3.1
	  	 Assumption of Aggregate Cemetery LLC Interests Liabilities by the OLP
	  	17
	 3.2
	  	 Assumption of the CFSI LLC Other Indebtedness by the OLP
	  	17
	 3.3
	  	 Assumption of the CFSI LLC OLP Partial Interest Liabilities by the GP
	  	18
	 3.4
	  	 Assumption of the CFSI LLC Partial OLP Interest Liabilities by the MLP
	  	18
	 3.5
	  	 Assumption of the CFSI LLC Remaining OLP Interests Liabilities by the MLP
	  	18
	 3.6
	  	 General Provisions Relating to Assumption of Liabilities
	  	19
		
	 Article IV Further Assurances
	  	19
			
	 4.1
	  	 Further Assurances
	  	19
	 4.2
	  	 Other Assurances
	  	19
		
	 Article V Power of Attorney
	  	20
			
	 5.1
	  	 Contributing Parties
	  	20
		
	 Article VI Miscellaneous
	  	21
			
	 6.1
	  	 Order of Completion of Transactions
	  	21
	 6.2
	  	 Consents; Restriction on Assignment
	  	21
	 6.3
	  	 Costs
	  	21
	 6.4
	  	 Headings; References; Interpretation
	  	22
	 6.5
	  	 Successors and Assigns
	  	22

  

 i 

					
	 6.6
	  	 No Third Party Rights
	  	22
	 6.7
	  	 Counterparts
	  	22
	 6.8
	  	 Governing Law
	  	22
	 6.9
	  	 Severability
	  	22
	 6.10
	  	 Bill of Sale; Assignment
	  	23
	 6.11
	  	 Amendment or Modification
	  	23
	 6.12
	  	 Integration
	  	23

  

 ii 

  
 CONTRIBUTION, CONVEYANCE
AND ASSUMPTION AGREEMENT 
  
 THIS CONTRIBUTION, CONVEYANCE AND
ASSUMPTION AGREEMENT, dated as of September 20, 2004, is entered into by and among StoneMor Partners L.P., a Delaware limited partnership (the “MLP”); StoneMor GP LLC, a Delaware limited liability company (the
“GP”); CFSI LLC, a Delaware limited liability company (“CFSI LLC”) and formerly known as Cornerstone Family Services, Inc., a Delaware corporation (“CFSI”); and StoneMor Operating LLC, a Delaware
limited liability company (the “OLP”). The foregoing shall be referred to individually as a “Party” and collectively as the “Parties.” 
  
 RECITALS 
  
 WHEREAS, Cornerstone Family Services LLC, a Delaware limited liability company (the “Shareholder”), and GP have formed the MLP pursuant
to the Delaware Revised Uniform Limited Partnership Act (the “Delaware Limited Partnership Act”), for the purpose of acquiring, owning and operating certain cemeteries and certain related assets of CFSI, its subsidiaries and certain
of its affiliates; 
  
 WHEREAS, in order to accomplish the
objectives and purposes in the preceding recital, the following actions have been taken prior to the date hereof: 
  

	 	A.	Formation of the MLP Entities: 

  

	 	1.	The Shareholder, the principal common shareholder of CFSI, has formed the GP under the terms of the Delaware Limited Liability Company Act (the “Delaware LLC Act”),
and contributed $100 in exchange for all of the membership interests in the GP. 

  

	 	2.	The GP and the Shareholder have formed the MLP, under the terms of the Delaware Limited Partnership Act, to which the GP contributed $20.00 and the Shareholder contributed $980.00
in exchange for a 2% general partner interest and a 98% limited partner interest, respectively, in the MLP. 

  

	 	3.	CFSI formed the OLP under the terms of the Delaware LLC Act and contributed $1,000.00 in exchange for all of the membership interests in the OLP. 

  

	 	4.	The Shareholder sold to CFSI all of the membership interests in the GP owned by the Shareholder (being 100% of the membership interests) and all of the limited partner interests in
the MLP owned by the Shareholder (being 100% of the limited partner interests) for $100 and $980, respectively. 

  

	 	B.	Formation of Asset Entities: 

  

	 	1.	[Omitted] 

  

	 	2.	 CFSI formed each of the corporations listed on Schedule B2 under the respective laws of the jurisdictions listed on such schedule (each an “NQ
Sub”), to each of which CFSI contributed $200 in exchange for all of the capital stock of each such 

  

 1 

	 	 
corporation. Each NQ Sub was formed to hold title to certain NQ Assets, as hereinafter defined, owned by a first or second tier subsidiary of CFSI directly
owning a cemetery (each a “Cemetery Sub”) in any State other than Pennsylvania. 

  

	 	3.	Each NQ Sub formed under the laws of Maryland, New Jersey, Ohio, Rhode Island and West Virginia formed a limited liability company, all of which are listed on Schedule B3,
under the respective laws of the jurisdictions listed on such schedule (each a “Cemetery LLC and collectively, the “Cemetery LLCs”), to which each of the respective NQ Subs contributed $100 in exchange for all of the
membership interests in the respective Cemetery LLCs. Each Cemetery LLC was formed to hold title to certain QI Assets, as hereinafter defined. 

  

	 	4.	(a) Each Cemetery Sub formed under the laws of Pennsylvania (collectively, the “PA Cemetery Subs”) formed a limited liability company under the laws of Pennsylvania
(each a “PA Cemetery LLC”), all of which limited liability companies are listed on Schedule B4(a), to which it contributed $100 in exchange for all of the membership interests in the respective PA Cemetery LLC; and (b) each
PA Cemetery LLC formed a limited liability company under the laws of Pennsylvania (each an “NQ LLC”), all of which limited liability companies are listed on Schedule B4(b), to which each of the respective PA Cemetery LLCs
contributed $100 in exchange for all of the membership interests in the respective NQ LLCs. Each NQ LLC was formed to hold title to certain NQ Assets. 

  

	 	C.	Reorganization of Pennsylvania Subsidiaries of CFSI: 

  

	 	1.	CFSI contributed to Laurelwood Holding Company, a Pennsylvania corporation (“Laurelwood”), the following: (a) the capital stock of all of the PA Cemetery Subs
listed on Schedule C3 except for Bedford County Memorial Park, Inc., Woodlawn Memorial Gardens, Inc. and Mount Lebanon Cemetery Company; (b) the dividend notes listed on Schedule C1(b) (collectively, the CFSI/Laurelwood
Notes”); (c) the capital stock of Willowbrook Management Corporation; and (d) the receivables listed on Schedule C1(d) (collectively, the “CFSI/Laurelwood Receivables”). 

  

	 	2.	Laurelwood contributed the CFSI/Laurelwood Notes and the CFSI/Laurelwood Receivables to the respective obligors of the CFSI/Laurelwood Notes and the CFSI/Laurelwood
Receivables. 

  

	 	3.	Each PA Cemetery Sub (20 Pennsylvania corporations including Bedford County Memorial Park, Inc., Woodlawn Memorial Gardens, Inc. and Mount Lebanon Cemetery Company) merged into its
respective PA Cemetery LLC as shown on Schedule C3 (collectively, the “Second Tier Mergers”). 

  

	 	4.	Each PA Cemetery LLC conveyed its NQ Assets, including the capital stock of Eloise B. Kyper Funeral Home, Inc., to its respective Pennsylvania NQ LLC. 

  

	 	5.	 (a) CMS West Parent LLC, the PA Cemetery LLC that survived the merger with CMS West Inc., distributed to Laurelwood its interest in Bedford County 

  

 2 

	 	 
Memorial Park Parent LLC, Woodlawn Memorial Gardens Parent LLC and Mount Lebanon Cemetery Parent LLC, three PA Cemetery LLCs, that resulted from the Second
Tier Mergers, together with the ownership interests in two nonprofit entities, The Coraopolis Cemetery Company and Woodlawn Memorial Park Association; and (b) each PA Cemetery LLC then owned by Laurelwood distributed to Laurelwood all of its
interest in its respective NQ LLC formed under the laws of the State of Pennsylvania, as shown on Schedule C5(b). 

  

	 	6.	Laurelwood distributed to CFSI all of the membership interests owned by it in all of the PA Cemetery LLCs (i.e. 20 PA Cemetery LLCs). 

  

	 	D.	Reorganization of Delaware Subsidiaries of CFSI: 

  

	 	1.	CFSI contributed to Henlopen Memorial Park Subsidiary, Inc., the NQ Sub formed under the laws of the State of Delaware (the “DE NQ Sub”), all of the capital stock
and membership interests in the four Delaware corporate subsidiaries and the two Delaware limited liability companies, respectively, listed on Schedule D1, together with the receivables and dividend notes listed on such schedule.

  

	 	2.	Henlopen Memorial Park, Inc. (“Henlopen”) filed a certificate of conversion under Section 266 of the Delaware General Corporation Law (the “Delaware
Corporation Law”) and converted from a Delaware corporation to a Delaware limited liability company named Henlopen Memorial Park LLC (the “DE Cemetery LLC”). 

  

	 	3.	The DE Cemetery LLC distributed to the DE NQ Sub all of the NQ Assets owned by it. 

  

	 	4.	The DE NQ Sub distributed to CFSI all of the membership interests in the DE Cemetery LLC. 

  

	 	5.	CFSI contributed to the DE Cemetery LLC all of the capital stock of the DE NQ Sub. 

  

	 	E.	Reorganization of Maryland Subsidiaries of CFSI: 

  

	 	1.	CFSI contributed to each of the respective NQ Subs formed under the laws of the State of Maryland (collectively, the “MD NQ Subs”) all of the capital stock of the
nine Cemetery Subs formed under the laws of the State of Maryland (collectively, the “MD Cemetery Subs” and individually, an “MD Cemetery Sub”) together with the receivables listed on Schedule E1.

  

	 	2.	 (a) The MD Cemetery Subs listed on Schedule E2(a) merged into their respective Cemetery LLCs formed under the laws of the State of Maryland (collectively,
the “MD Cemetery LLCs” and individually, an “MD Cemetery LLC”); (b) the MD Cemetery Subs listed on Schedule E2(b) merged into their respective Delaware corporations formed under the laws of the State of
Delaware; and (c) each of the 

  

 3 

	 	 
Delaware corporations listed on Schedule E2(b) converted into a limited liability company under the laws of the State of Delaware as shown on
Schedule E2(c). 

  

	 	3.	Each MD Cemetery LLC distributed all of its NQ Assets to its respective parent MD NQ Sub, including the capital stock of Cedar Hill Funeral Home, Inc.

  

	 	4.	Each of the MD NQ Subs distributed to CFSI all of its membership interests in its respective MD Cemetery LLC, as described on Schedule E4. 

  

	 	5.	CFSI contributed to each of the respective MD Cemetery LLCs all of the capital stock owned by CFSI in each of the respective MD NQ Subs, as shown on Schedule E5.

  

	 	F.	Reorganization of New Jersey Subsidiaries of CFSI: 

  

	 	1.	CFSI contributed to the NQ Sub formed under the laws of the State of New Jersey (the “NJ NQ Sub”) all of the capital stock of Arlington Development Company and
Legacy Estates, Inc. together with the receivables listed on Schedule FI. 

  

	 	G.	Reorganization of Virginia Subsidiaries of CFSI: 

  

	 	1.	PMSI, Inc. merged into Southern Memorial Sales Subsidiary, Inc. (the “PMSI NQ Sub”). 

  

	 	2.	CFSI contributed to each of the respective NQ Subs formed under the laws of the State of Virginia (collectively, the “VA NQ Subs” and individually, a “VA NQ
Sub”) all of the capital stock of the 20 Cemetery Subs formed under the laws of the State of Virginia (collectively, the “VA Cemetery Subs”) (which did not include the PMSI NQ Sub) owned by CFSI together with certain
receivables, all such VA Cemetery Subs and such receivables being listed on Schedule G2. 

  

	 	3.	All such 20 VA Cemetery Subs and Southern Memorial Sales, Inc. (“Southern”) and Kiris, Inc. (“Kiris”) converted into limited liability companies
under the laws of the State of Virginia (collectively, the “VA Cemetery LLCs”), which VA Cemetery LLCs are listed on Schedule G3. 

  

	 	4.	Each VA Cemetery LLC distributed its NQ Assets to its respective parent VA NQ Sub or, in the case of Southern and Kiris, to the PMSI NQ Sub. 

  

	 	5.	Each VA NQ Sub and the PMSI NQ Sub distributed to CFSI all of their membership interests in their respective VA Cemetery LLCs, as set forth on Schedule G5.

  

	 	6.	CFSI contributed all of the capital stock of each VA NQ Sub to its respective VA Cemetery LLC, as set forth on Schedule G6. 

  

 4 

	 	H.	Reorganization of Alabama, Georgia, Ohio, Rhode Island, Tennessee and West Virginia Subsidiaries of CFSI: 

  

	 	1.	(a) CFSI contributed to the respective NQ Subs formed under the respective laws of the States of Alabama, Georgia, Ohio, Rhode Island, Tennessee and West Virginia (i) all of the
capital stock owned by CFSI of each of the Cemetery Subs formed under the respective laws of the States of Alabama, Georgia, Ohio, Rhode Island, Tennessee and West Virginia (collectively, the “Multi-State Cemetery Subs”), and (ii)
certain receivables and dividend notes; and (b) CFSI contributed to the NQ Sub formed under the laws of West Virginia all of the capital stock owned by CFSI in Osiris Telemarketing Corporation and Osiris Management Inc., all as listed on Schedule
H1. 

  

	 	2.	Each of the Multi-State Cemetery Subs converted or merged into a limited liability company (collectively, the “Multi-State Cemetery LLCs”) under the laws of its
respective jurisdiction, as listed on Schedule H2. 

  

	 	3.	Each of the Multi-State Cemetery LLCs distributed its NQ Assets to its parent NQ Sub (collectively, the “Multi-State NQ Subs”), as listed on Schedule H3.

  

	 	4.	Each of the Multi-State NQ Subs distributed to CFSI all of the membership interests owned by it in the respective Multi-State Cemetery LLCs, as listed on Schedule H4.

  

	 	5.	CFSI contributed to each Multi-State Cemetery LLC all of the capital stock owned by CFSI in each Multi-State NQ Sub, as listed on Schedule H5.

  

	 	I.	NQ Sub Distributions and Conversion of CFSI: 

  

	 	1.	Certain NQ Subs (the “Distribution NQ Subs”) and/or Laurelwood distributed promissory notes (each a “Sub Note” and collectively, the “Sub
Notes”) to, and payable to, their respective parent Cemetery LLCs (each a “Parent Cemetery LLC” and collectively, the “Parent Cemetery LLCs”) and in the case of Laurelwood to CFSI, the Sub Notes, the
Distribution NQ Subs and their respective Parent Cemetery LLCs, and Laurelwood (in its case, CFSI) all being listed on Schedule I1. 

  

	 	2.	CFSI filed a certificate of conversion under Section 266 of the Delaware Corporation Law and converted from a Delaware corporation to a Delaware limited liability company named CFSI
LLC, with the outstanding common stock of CFSI being converted into common membership interests in CFSI LLC and the outstanding preferred stock of CFSI being converted to preferred membership interests in CFSI LLC (collectively, the
“Preferred Interest”). 

  

 5 

 WHEREAS, concurrently with the consummation of the transactions contemplated hereby, each of the
following shall occur: 
  

	 	J.	Closing of the Offering: 

  

	 	1.	CFSI LLC shall convey to the OLP (a) all of the membership interests in each of the limited liability companies listed on Schedule J1(a) (collectively, the “Aggregate
Cemetery LLCs”), (b) the Association Notes, as hereinafter defined, (c) all of the capital stock of the NJ NQ Sub, and (d) all of the capital stock of the Miscellaneous Companies, as hereinafter defined, all of such matters being contributed as
a capital contribution to the OLP subject to the CFSI LLC Secured Indebtedness, as hereinafter defined, and in exchange for the assumption by the OLP of the CFSI LLC Other Indebtedness, as hereinafter defined. 

  

	 	2.	CFSI LLC shall contribute to the GP a membership interest in the OLP (the “OLP Interest”) equal to 2.0215% of the membership interests in the OLP and having a value
of 2/49ths of the expected equity value of the MLP attributable to the aggregate number of Common Units, as hereinafter defined, to be outstanding after the initial public offering of the Common Units (the “Offering”).

  

	 	3.	(a) The GP shall convey the OLP Interest to the MLP in exchange for a continuation of the GP’s 2% general partner interest in the MLP and the Incentive Distribution Rights, as
hereinafter defined. 

  
 (b) CFSI LLC shall
contribute to the MLP the remaining membership interests in the OLP equal to 97.9785% of the membership interests in the OLP in exchange for (i) 4,239,782 Subordinated Units, as hereinafter defined, representing subordinated limited partner
interests with a 49% profits interest in the MLP, and (ii) 564,782 Common Units representing common limited partner interests with a 6.5% profits interest in the MLP. 
  
 (c) The public, through the underwriters (the “Underwriters”) of the Offering, shall contribute $75,337,500
(the “Offering Proceeds”) to the MLP, $70,251,300 net of the Underwriters’ spread of 6.75% (the “Spread”), in exchange for 3,675,000 Common Units with a 42.5% profits interest in the MLP. 
  

	 	4.	The MLP shall pay all costs and expenses (the “Offering Costs”) in connection with the Offering, other than the Spread, and shall contribute the balance of the
Offering Proceeds to the OLP as an additional capital contribution. 

  

	 	5.	The OLP shall use the funds contributed to it by the MLP to repay a portion of the CFSI LLC Indebtedness. 

  

	 	6.	Each of the Distribution NQ Subs shall borrow funds equal to the amount due under its respective Sub Note and use such borrowed funds to pay to its Parent Cemetery LLC all of the
amounts due under the Sub Note held by its Parent Cemetery LLC (the “Sub Note Amount”). 

  

	 	7.	Each Parent Cemetery LLC shall distribute to the OLP all of the proceeds (“Sub Note Payment Proceeds”) received by it from its Distribution NQ Sub to pay the
respective Sub Note Amount. 

  

 6 

	 	8.	The OLP and the Note Co-Issuers shall issue $80,000,000 in aggregate principal amount of 7.66% Senior Secured Notes, due September 20, 2009 (the “Senior Notes”) and
the following shall occur: (a) the OLP will pay the discounts, commissions and offering expenses incurred by the OLP in connection with the offer and sale of the Senior Notes (the “Debt Offering Costs”), and (b) the OLP shall pay
all of the remaining CFSI LLC Indebtedness from the cash remaining from the sale of the Senior Notes (the “Net Debt Proceeds”) and from the Sub Note Payment Proceeds. 

  

	 	K.	Post Closing Matters: 

  

	 	1.	After the Closing of the Offering, the Shareholder may be dissolved and all of its assets, subject to any liabilities, shall be distributed to each of the owners of the Shareholder
identified on Schedule K1 (the “Owners”) in accordance with the applicable agreements relating to the Shareholder. 

  

	 	2.	In connection with the Offering, the Underwriters have been granted a 30-day option to purchase up to 551,250 Common Units (the “Option”). If the Option is
exercised, the MLP shall use 50% of the net proceeds paid under the terms of the Option to redeem a number of Common Units owned by CFSI LLC equal to the number of Common Units sold pursuant to the exercise of the Option and to reimburse CFSI LLC
for certain capital expenditures; and the MLP will retain the balance of the proceeds for partnership purposes. 

  

	 	L.	Other Matters: 

  

	 	1.	The agreement of limited partnership of the MLP will be amended and restated to the extent necessary to reflect the applicable matters set forth above and in Article II and Article
III of this Agreement. 

  

	 	2.	The limited liability company agreements of each of the following will be amended to the extent necessary to reflect the applicable matters set forth above and in Article II and
Article III in this Agreement: 

  

	 	(a)	the GP; 

  

	 	(b)	the OLP; and 

  

	 	(c)	the Aggregate Cemetery LLCs. 

  

 7 

 NOW, THEREFORE, in consideration of their mutual undertakings and agreements hereunder, the Parties
undertake and agree as follows: 
  
 ARTICLE I 
 DEFINITIONS; SCHEDULES; RECORDATION 
  
 1.1 Definitions. The following capitalized terms have the meanings given below. 
  
 “Acts” shall mean collectively each of the applicable laws under which the conversions and
mergers referred to in this Agreement have occurred. 
  
 “Agreement” means this Contribution, Conveyance and Assumption Agreement. 
  
 “Aggregate Cemetery LLCs” has the meaning assigned to such term in Item J1 of this Agreement. 
  
 “Aggregate Cemetery LLC Interests” has the
meaning assigned to such term in Section 2.1 of this Agreement. 
  
 “Aggregate Cemetery LLC Interests Liabilities” means all of the obligations under the applicable members’ operating agreements relating to the Aggregate Cemetery LLC Interests. 
  
 “Association Notes” has the meaning
assigned to such term in Section 2.1 of this Agreement. 
  
 “Beneficial Owner” has the meaning assigned to such term in Section 6.2 of this Agreement. 
  
 “Cemetery LLC” or “Cemetery LLCs” has the meanings assigned to such terms in Item B3 of this
Agreement. 
  
 “Cemetery Sub”
has the meaning assigned to such term in Item B2 of this Agreement. 
  
 “CFSI” has the meaning assigned to such term in the first paragraph of this Agreement. 
  
 “CFSI/Laurelwood Notes” has the meaning assigned to such term in Item C1 of this Agreement. 
  
 “CFSI/Laurelwood Receivables” has the
meaning assigned to such term in Item C1 of this Agreement. 
  
 “CFSI LLC” has the meaning assigned to such term in the first paragraph of this Agreement. 
  
 “CFSI LLC Indebtedness” has the meaning assigned to such term in Section 2.1 of this Agreement. 
  
 “CFSI LLC Partial OLP Interest” has the
meaning assigned to such term in Section 2.2 of this Agreement. 
  

 8 

 “CFSI LLC Partial OLP Interest Liabilities” means all of the obligations
under the applicable members’ operating agreements relating to the CFSI LLC Partial OLP Interest. 
  
 “CFSI LLC Other Indebtedness” has the meaning assigned to such term in Section 2.1 of this Agreement. 

 
 “CFSI LLC Remaining OLP Interests” has
the meaning assigned to such term in Section 2.4 of this Agreement. 
  
 “CFSI LLC Remaining OLP Interests Liabilities” means all of the obligations under the applicable members’ operating agreements relating to the CFSI LLC Remaining OLP Interests. 
  
 “CFSI LLC Secured Indebtedness” has the
meaning assigned to such term in Section 2.1 of this Agreement. 
  
 “Code” means the Internal Revenue Code of 1986, as amended. 
  
 “Common Units” has the meaning assigned to such term in the Partnership Agreement. 
  
 “Contributing Party” has the meaning
assigned to such term in Section 5.1 of this Agreement. 
  
 “Debt Offering Costs” has the meaning assigned to such term in Item J8 of this Agreement. 
  
 “DE Cemetery LLC” has the meaning assigned to such term in Item D2 of this Agreement. 
  
 “Delaware Corporation Law” has the meaning
assigned to such term in Item D2 of this Agreement. 
  
 “Delaware LLC Act” has the meaning assigned to such term in Item A1 of the Recitals of this Agreement. 
  

“Delaware Limited Partnership Act” has the meaning assigned to such term in the initial Recital to this Agreement.

  
 “DE NQ Sub” has the meaning
assigned to such term in Item D1. 
  
 “Distribution NQ Subs” has the meaning assigned to such term in Item I1. 
  
 “Effective Date” means September 20, 2004. 
  
 “Effective Time” means 12:01 a.m. Eastern Standard Time on the Effective Date. 

 
 “GP” has the meaning assigned to such
term in the first paragraph of this Agreement. 
  

 9 

 “Henlopen” has the meaning assigned to such term in Item D2 of
this Agreement. 
  
 “Incentive
Distribution Rights” has the meaning assigned to such term in the Partnership Agreement. 
  
 “Kiris” has the meaning assigned to such term in Item G3 of this Agreement. 
  
 “Laurelwood” has the meaning assigned to
such term in Item C1 of this Agreement. 
  
 “Laurelwood LLCs” has the meaning assigned to such term in Item C5 of this Agreement. 
  
 “MD Cemetery LLC” and “MD Cemetery LLCs” have the meanings assigned to such term in Item E2 of
this Agreement. 
  
 “MD Cemetery
Sub” and MD Cemetery Subs” have the meanings assigned to such terms in Item E1 of this Agreement. 
  
 “MD New Parent” means the New Parent formed under the laws of the State of Maryland. 
  
 “MD NQ Subs” has the meaning assigned to
such term in Item E1 of this Agreement. 
  
 “Miscellaneous Companies” means all of the following corporations: (i) Mt. Airy Cemetery, Inc. and Morris Cemetery Perpetual Care Company, both Pennsylvania corporations; and (ii) Augusta Memorial Park Perpetual Care
Company and KIRIS Subsidiary, Inc., both Virginia corporations. 
  
 “Miscellaneous Companies Stock” means all of the capital stock of the Miscellaneous Companies. 
  
 “MLP” has the meaning assigned to such term in the first paragraph of this Agreement. 
  
 “Multi-State Cemetery LLCs” has the meaning
assigned to such term in Item H2 of this Agreement. 
  
 “Multi-State Cemetery Subs” has the meaning assigned to such term in Item H1 of this Agreement. 
  
 “Multi-State NQ Subs” has the meaning assigned to such term in Item H3 of this Agreement. 
  
 “Net Debt Proceeds” has the meaning
assigned to such term in Item J8 of this Agreement. 
  

 10 

 “New Parent” has the meaning assigned to such term in Item B1 of
this Agreement. 
  
 “NJ NQ Sub”
has the meaning assigned to such term in Item F1 of this Agreement. 
  
 “NJ NQ Sub Stock” has the meaning assigned to such term in Section 2.1 of this Agreement. 
  
 “Note Co-Issuers” means the subsidiaries of the MLP (other than the OLP) that are parties to that certain Note Purchase
Agreement dated as of September 20, 2004 by and among the MLP, the GP, the OLP, each of the subsidiary issuers listed on the signature pages thereto, and the several purchasers whose names appear on the acceptance form thereto. 
  
 “NQ Assets” means assets that generate
income that is not Qualifying Income, as hereinafter defined. 
  
 “NQ LLC” has the meaning assigned to such term in Item B4 of this Agreement. 
  
 “NQ Sub” has the meaning assigned to such term in Item B2 of this Agreement. 
  
 “Offering” shall have the meaning assigned
to such term in Item J2 of this Agreement. 
  
 “Offering Costs” has the meaning assigned to such term in Item J4 of this Agreement. 
  
 “Offering Proceeds” has the meaning assigned to such term in Item J3. 
  
 “OLP” has the meaning assigned to such term
in the first paragraph of this Agreement. 
  
 “OLP Interest” has the meaning assigned to such term in Item J2 of this Agreement. 
  
 “Omnibus Agreement” means the Omnibus Agreement dated of even date herewith, by and among McCown De Leeuw & Co. IV,
L.P., McCown De Leeuw & Co. IV Associates, L.P., MDC Management Company IV, LLC, Delta Fund LLC, the Shareholder, CFSI LLC, the MLP, the GP and the OLP. 
  
 “Option” has the meaning assigned to such term in Item K2 of this Agreement. 
  
 “Owners” has the meaning assigned to such
term in Item J9 of this Agreement. 
  
 “PA Cemetery LLC” has the meaning assigned to such term in Item B4 of this Agreement. 
  
 “PA Cemetery Subs” has the meaning assigned to such term in Item B4 of this Agreement. 
  

 11 

 “Parent Cemetery LLC” and “Parent Cemetery LLCs” have
the meanings assigned to such terms in Item I1 of this Agreement. 
  
 “Partnership Agreement” means the Agreement of Limited Partnership of the MLP, as it may be amended and restated from time to time. 
  
 “Party and Parties” have the meanings assigned to such terms in the first paragraph of this
Agreement. 
  
 “PMSI NQ Sub” has
the meaning assigned to such term in Item G1 of this Agreement. 
  
 “Preferred Interest” has the meaning assigned to such term in Item I2 of this Agreement. 
  
 “Qualifying Income” has the meaning assigned to such term in Section 7704(d) of the Code. 
  
 “QI Assets” means assets that generate
Qualifying Income. 
  
 “Receiving
Party” has the meaning assigned to such term in Section 5.1 of this Agreement. 
  
 “Restriction” has the meaning assigned to such term in Section 6.2 of this Agreement. 
  
 “Restriction Matter” has the meaning
assigned to such term in Section 6.2 of this Agreement. 
  
 “Registration Statement” means the registration statement on Form S-1 filed by the MLP relating to the Offering. 
  
 “Second Tier Mergers” has the meaning assigned to such term in Item C3 of this
Agreement. 
  
 “Senior Notes”
has the meaning assigned to such term in Item J8 of this Agreement. 
  
 “Shareholder” has the meaning assigned to such term in Item A1 of this Agreement. 
  
 “Southern” has the meaning assigned to such term in Item G3 of this Agreement. 
  
 “Specific Conveyances” has the meaning
assigned to such term in Section 2.12 of this Agreement. 
  
 “Spread” has the meaning assigned to such term in Item J3 of this Agreement. 
  

 12 

 “Sub Note” and “Sub Notes” have the meanings assigned
to such terms in Item I1 of this Agreement. 
  
 “Sub Note Amount” has the meaning assigned to such term in Item J6 of this Agreement. 
  
 “Sub Note Payment Proceeds” has the meaning assigned to such term in Item J7 of this Agreement. 
  
 “Subordinated Units” has the meaning
assigned to such term in the Partnership Agreement. 
  
 “Underwriters” has the meaning assigned to such term in Item J3 of this Agreement. 
  
 “VA Cemetery LLCs” has the meaning assigned to such term in Item G3 of this Agreement. 
  
 “VA Cemetery Subs” has the meaning assigned
to such term in Item G2 of this Agreement. 
  
 “VA New Parent” means the New Parent formed under the laws of the State of Virginia. 
  
 “VA NQ Sub” and “VA NQ Subs” have the meaning assigned to such terms in Item G2 of this
Agreement. 
  
 1.2 Schedules. The following schedules are
attached hereto: 
  

	 	(a)	[Omitted] 

  

	 	(b)	Schedule B2 – Corporate Cemetery Subs (in states other than Pennsylvania 

  

	 	(c)	Schedule B3 – Maryland, New Jersey, Ohio, Rhode Island and West Virginia Cemetery LLCs 

  

	 	(d)	Schedule B4(a) – Pennsylvania Cemetery LLCs 

  

	 	(e)	Schedule B4(b) – Pennsylvania NQ LLCs 

  

	 	(f)	Schedule C1(b) – CFSI/Laurelwood Notes 

  

	 	(g)	Schedule C1(d) – CFSI/Laurelwood Receivables 

  

	 	(h)	Schedule C3 – Each PA Cemetery Sub and Its Respective Cemetery LLC 

  

	 	(i)	Schedule C5(b) – Distributions by Each PA Cemetery LLC to Laurelwood of Its Interest in Each Pennsylvania NQ LLC 

  

	 	(j)	Schedule D1 – Delaware Corporations and Delaware Limited Liability Companies Owned by CFSI together with Certain Receivables and Dividend Notes 

 

	 	(k)	Schedule E1 - MD Cemetery Subs Owned by CFSI together with Certain Receivables. 

  

	 	(l)	Schedule E2(a) – Mergers of MD Cemetery Subs into MD Cemetery LLCs. 

  

 13 

	 	(m)	Schedule E2(b) – Mergers of MD Cemetery Subs into Delaware corporations 

  

	 	(n)	Schedule E2(c) – Conversion of Delaware corporations into Delaware LLCs 

  

	 	(o)	Schedule E4 – Distribution to CFSI of Membership Interests in MD Cemetery LLCs by MD NQ Subs 

  

	 	(p)	Schedule E5 - Contribution to MD Cemetery LLCs of Stock Owned by CFSI in the MD NQ Subs 

  

	 	(q)	Schedule F1 – Receivables Contributed by CFSI to New Jersey NQ Sub Cornerstone Family Services of New Jersey 

  

	 	(r)	Schedule G2 – VA Cemetery Subs (Other than PMSI, Inc.) and Certain Receivables Contributed to VA NQ Subs by CFSI 

  

	 	(s)	Schedule G3 – VA Cemetery LLCs Resulting from the Conversion of the VA Cemetery Subs, Southern Memorial Sales, Inc. and Kiris, Inc. Converted 

 

	 	(t)	Schedule G5 – VA Cemetery LLCs Distributed by Each VA NQ Sub and the PMSI NQ Sub to CFSI 

  

	 	(u)	Schedule G6 – VA NQ Subs Contributed to the VA Cemetery LLCs by CFSI 

  

	 	(v)	Schedule H1 – Multi-State Cemetery Subs and Receivables and Dividend Notes Contributed by CFSI to the Alabama, Georgia, Ohio, Rhode Island, Tennessee and West VA NQ Subs

  

	 	(w)	Schedule H2 – Multi-State Cemetery LLCs resulting from the Conversion or Merger of the Multi-State Cemetery Subs 

  

	 	(x)	Schedule H3 – Multi-State Cemetery LLCs that Distributed NQ Assets to Multi-State NQ Subs 

  

	 	(y)	Schedule H4 – Multi-State Cemetery LLCs Distributed by Multi-State NQ Subs to CFSI 

  

	 	(z)	Schedule H5 – Multi-State NQ Subs Contributed by CFSI to the Multi-State Cemetery LLCs 

  

	 	(aa)	Schedule I1 – NQ Subs and Laurelwood that Distributed Sub Notes to Their Respective Parent Cemetery LLCs and CFSI 

  

	 	(bb)	Schedule J1(a) - Aggregate Cemetery LLCs 

  

	 	(cc)	Schedule K1 – Owners of the Shareholder 

  

	 	(dd)	Schedule2.1 – CFSI LLC Secured Indebtedness 

  

	 	(ee)	Schedule 2.1(a) – Aggregate Cemetery LLC Interests 

  

	 	(ff)	Schedule 2.1(b) – Association Notes 

  

 14 

 1.3 Recordation of Evidence of Ownership of Assets. In connection with the conversions and mergers
under the applicable Acts that are referred to in the recitals to this Agreement, the Parties acknowledge that certain jurisdictions in which the assets of the applicable parties to such conversions and mergers are located may require that documents
be recorded by the entities resulting from such conversions and mergers in order to evidence title to assets in such entities. All such documents shall evidence such new ownership and are not intended to modify, and shall not modify, any of the
terms, covenants and conditions herein set forth. 
  
 ARTICLE II

 CONCURRENT TRANSACTIONS 
  
 2.1 Contribution and Conveyance by CFSI LLC to the OLP of the Aggregate Cemetery LLC Interests, the Association Notes, the NJ NQ Sub Stock, and the
Miscellaneous Companies Stock. CFSI LLC hereby grants, contributes, transfers, assigns and conveys to the OLP, its successors and assigns, for its and their own use forever, as an additional contribution, all right, title and interest of CFSI
LLC in and to (a) all of the membership interests in the Aggregate Cemetery LLCs described on Schedule 2.1(a) (the “Aggregate Cemetery LLC Interests”), (b) the promissory notes listed on Schedule 2.1(b) (the
“Association Notes”) without recourse to CFSI LLC with respect to the Association Notes, (c) all of the capital stock of the NJ NQ Sub (the “NJ NQ Sub Stock”), and (d) all of the Miscellaneous Companies Stock, and
the OLP hereby accepts the Aggregate Cemetery LLC Interests, the Association Notes, the NJ NQ Sub Stock and the Miscellaneous Companies Stock, all as an additional contribution to the capital of the OLP, subject to the secured indebtedness of CFSI
LLC listed on Schedule 2.1 (the “CFSI LLC Secured Indebtedness”) and in exchange for the assumption by the OLP of all other indebtedness of CFSI LLC (the “CFSI LLC Other Indebtedness” and together with the
CFSI Secured Indebtedness, the “CFSI LLC Indebtedness”). 
  
 TO HAVE AND TO HOLD the Aggregate Cemetery LLC Interests, the Association Notes, the NJ NQ Sub Stock, and the Miscellaneous Companies Stock unto the OLP, its successors and assigns, together with all and singular the
rights and appurtenances thereto in anywise belonging, subject, however, to the terms and conditions stated in this Agreement. 
  
 2.2 Contribution and Conveyance by CFSI LLC to the GP of the CFSI LLC Partial OLP Interest. CFSI LLC hereby grants, contributes, transfers, assigns
and conveys to the GP, its successors and assigns, for its and their own use forever, all right, title and interest of CFSI LLC in and to a 2.0215% membership interest in the OLP (the “CFSI LLC Partial OLP Interest”) having a value
of 2/49ths of the expected equity value of the MLP attributable to the aggregate number of Common Units, with CFSI LLC retaining a 97.9785% membership interest in the OLP, and the GP hereby accepts the CFSI LLC Partial OLP Interest, as an additional
contribution to the capital of the GP. 
  
 TO HAVE AND TO HOLD the
CFSI LLC Partial OLP Interest unto the GP, its successors and assigns, together with all and singular the rights and appurtenances thereto in anywise belonging, subject, however, to the terms and conditions stated in this Agreement. 
  

 15 

 2.3 Contribution and Conveyance by the GP to the MLP of the CFSI LLC Partial OLP Interest. The GP
hereby grants, contributes, transfers, assigns and conveys to the MLP, its successors and assigns, for its and their own use forever, all right, title and interest of the GP in and to the CFSI LLC Partial OLP Interest, and the MLP hereby accepts the
CFSI LLC Partial OLP Interest, as an additional contribution to the capital of the MLP and in exchange for the continuation of the GP’s 2% general partner interest in the MLP and the Incentive Distribution Rights. 
  
 TO HAVE AND TO HOLD the CFSI LLC Partial OLP Interest unto the MLP, its
successors and assigns, together with all and singular the rights and appurtenances thereto in anywise belonging, subject, however, to the terms and conditions stated in this Agreement. 
  
 2.4 Contribution and Conveyance by CFSI LLC to the MLP of the CFSI LLC Remaining OLP Interests. CFSI LLC hereby
grants, contributes, transfers, assigns and conveys to the MLP, its successors and assigns, for its and their own use forever, all right, title and interest of CFSI LLC in and to all of the remaining membership interests in the OLP, being 97.9785%
of the membership interests in and to the OLP (the “CFSI LLC Remaining OLP Interests”), and the MLP hereby accepts the CFSI LLC Remaining OLP Interests as an additional contribution to the capital of the MLP in exchange for (a)
4,239,782 Subordinated Units, representing subordinated limited partner interests with a 49% profits interest in the MLP and (b) 564,782 Common Units representing common limited partner interests with a 6.5% profits interest in the MLP.

  
 TO HAVE AND TO HOLD the CFSI LLC Remaining OLP Interests unto
the MLP, its successors and assigns, together with all and singular the rights and appurtenances thereto in anywise belonging, subject, however, to the terms and conditions stated in this Agreement. 
  
 2.5 Public Cash Contribution. The Parties acknowledge a gross cash
contribution of $75,337,500 from the public to the MLP in connection with the Offering in exchange for 3,675,000 Common Units, representing limited partner interests with a 42.5% profits interest in the MLP. 
  
 2.6 MLP Receipt of Cash Contribution. The MLP acknowledges receipt of
$70,251,300 in cash obtained from the Offering (net of the Spread) as a capital contribution to the MLP, and the Parties acknowledge that the MLP has used all of such capital contribution (a) to pay the Offering Costs that are due and payable or
that have been previously paid and (b) to make an additional capital contribution to the OLP as described in Section 2.7. 
  
 2.7 Contribution of Cash by the MLP to the OLP. The OLP acknowledges the additional contribution by the MLP to the OLP and the receipt by the OLP
of $60,551,300. 
  
 The above contribution has been made to pay a
portion of the CFSI LLC Indebtedness. Each of the Parties acknowledges that $60,551,300 of the CFSI LLC Indebtedness has been paid by the OLP. 
  
 2.8 Borrowing by Distribution NQ Subs and Payment of Sub Notes. The Parties acknowledge that each Distribution NQ Sub has borrowed an amount equal
to the amount due 

  

 16 

 
under its respective Sub Note, and that each Distribution NQ Sub has paid to its Parent Cemetery LLC the outstanding Sub Note Amount due under the respective
Sub Note. 
  
 2.9 Distribution of Sub Note Payment
Proceeds to the OLP by the Parent Cemetery LLCs. The Parties acknowledge that each Parent Cemetery LLC has distributed to the OLP all Sub Note Payment Proceeds received from its Distribution NQ Sub in payment of the outstanding Sub Note Amount
due under the respective Sub Note. 
  
 2.10 Payment of
Debt Offering Costs and CFSI LLC Indebtedness from the Net Debt Proceeds and the Sub Note Payment Proceeds. The Parties acknowledge that the OLP and the Note Co-Issuers have sold $80,000,000 in aggregate principal amount of 7.66% Senior Secured
Notes due September 20, 2009 and, with the proceeds thereof together with the Sub Note Payment Proceeds received from each Parent Cemetery LLC, the OLP has paid all of the Debt Offering Costs and all of the remaining outstanding CFSI LLC
Indebtedness. 
  
 2.11 Specific Conveyances. To further
evidence the sales and contributions of the matters reflected in this Agreement, each Party making such contribution may have executed and delivered to the Party receiving such contribution certain conveyance, assignment and bill of sale instruments
(the “Specific Conveyances”). The Specific Conveyances shall evidence and perfect such sale and contribution made by this Agreement and shall not constitute a second conveyance of any assets or interests therein and shall be subject
to the terms of this Agreement. 
  
 ARTICLE III 

ASSUMPTION OF CERTAIN LIABILITIES 
  
 3.1 Assumption of Aggregate Cemetery LLC Interests Liabilities by the OLP. In connection with the contribution by CFSI LLC of the Aggregate
Cemetery LLC Interests to the OLP, as set forth in Section 2.1, the OLP hereby agrees that it has succeeded to all of the Aggregate Cemetery LLC Interests as a substitute member of each of the Aggregate Cemetery LLCs and hereby assumes and
agrees to be bound by and to duly and timely pay, perform and discharge all of the Aggregate Cemetery LLC Interests Liabilities, to the full extent that CFSI LLC has been heretofore or would have been in the future obligated to pay, perform and
discharge the Aggregate Cemetery LLC Interests Liabilities were it not for such contribution and the execution and delivery of this Agreement; provided, however, that said assumption and agreement to duly and timely pay, perform and discharge the
Aggregate Cemetery LLC Interests Liabilities shall not (a) increase the obligation of the OLP with respect to the Aggregate Cemetery LLC Interests Liabilities beyond that of CFSI LLC, (b) waive any valid defense that was available to CFSI LLC with
respect to the Aggregate Cemetery LLC Interests Liabilities or (c) enlarge any rights or remedies of any third party under any of the Aggregate Cemetery LLC Interests Liabilities. The OLP hereby acknowledges and agrees that, by accepting the
Aggregate Cemetery LLC Interests, and without any further action required by either CFSI LLC or the OLP, it shall be a party to the Operating Agreement of the applicable Cemetery LLC issuing a particular Aggregate Cemetery LLC Interest and shall be
bound by all of the terms and conditions thereof as a “Member” thereunder in lieu of CFSI LLC. 
  
 3.2 Assumption of the CFSI LLC Other Indebtedness by the OLP. In connection with the contribution by CFSI LLC of the Aggregate Cemetery LLC
Interests, the Association Notes, 

  

 17 

 
the NJ NQ Sub Stock, and the Miscellaneous Companies Stock to the OLP, as set forth in Section 2.1, the OLP hereby assumes and agrees to duly and
timely pay, perform and discharge all of the CFSI LLC Other Indebtedness, to the full extent that CFSI LLC has been heretofore or would have been in the future obligated to pay, perform and discharge the CFSI LLC Other Indebtedness were it not for
such contribution and the execution and delivery of this Agreement; provided, however, that said assumption and agreement to duly and timely pay, perform and discharge the CFSI LLC Other Indebtedness shall not (a) increase the obligation of the OLP
with respect to the CFSI LLC Other Indebtedness beyond that of CFSI LLC, (b) waive any valid defense that was available to CFSI LLC with respect to the CFSI LLC Other Indebtedness or (c) enlarge any rights or remedies of any third party under any of
the CFSI LLC Other Indebtedness. 
  
 3.3 Assumption of
the CFSI LLC OLP Partial Interest Liabilities by the GP. In connection with the contribution by CFSI LLC of the CFSI LLC Partial OLP Interest to the GP, as set forth in Section 2.2, the GP hereby agrees that it has succeeded to the CFSI
LLC Partial OLP Interest as a substitute member of the OLP and hereby assumes and agrees to duly and timely pay, perform and discharge all of the CFSI LLC Partial OLP Interest Liabilities, to the full extent that CFSI LLC has been heretofore or
would have been in the future obligated to pay, perform and discharge the CFSI LLC Partial OLP Interest Liabilities were it not for such contribution and the execution and delivery of this Agreement; provided, however, that said assumption and
agreement to duly and timely pay, perform and discharge the CFSI LLC Partial OLP Interest Liabilities shall not (a) increase the obligation of the GP with respect to the CFSI LLC Partial OLP Interest Liabilities beyond that of CFSI LLC, (b) waive
any valid defense that was available to CFSI LLC with respect to the CFSI LLC OLP Partial Interest Liabilities or (c) enlarge any rights or remedies of any third party under any of the CFSI LLC OLP Partial Interest Liabilities. 
  
 3.4 Assumption of the CFSI LLC Partial OLP Interest Liabilities by the
MLP. In connection with the contribution by the GP of the CFSI LLC Partial OLP Interest to the MLP, as set forth in Section 2.3, the MLP hereby agrees that it has succeeded to all of the CFSI LLC Partial OLP Interest as a substitute
member of the OLP and hereby assumes and agrees to duly and timely pay, perform and discharge all of the CFSI LLC Partial OLP Interest Liabilities, to the full extent that the GP has been heretofore or would have been in the future obligated to pay,
perform and discharge the CFSI LLC Partial OLP Interest Liabilities were it not for such contribution and the execution and delivery of this Agreement; provided, however, that said assumption and agreement to duly and timely pay, perform and
discharge the CFSI LLC Partial OLP Interest Liabilities shall not (a) increase the obligation of the MLP with respect to the CFSI LLC Partial OLP Interest Liabilities beyond that of the GP, (b) waive any valid defense that was available to the GP
with respect to the CFSI LLC Partial OLP Interest Liabilities or (c) enlarge any rights or remedies of any third party under any of the CFSI LLC Partial OLP Interest Liabilities. 
  
 3.5 Assumption of the CFSI LLC Remaining OLP Interests Liabilities by the MLP. In connection with the contribution by
CFSI LLC of the CFSI LLC Remaining OLP Interests to the MLP, as set forth in Section 2.4, the MLP hereby agrees that it has succeeded to all of the CFSI LLC Remaining OLP Interests as a substitute member of the OLP and hereby assumes and
agrees to duly and timely pay, perform and discharge all of the CFSI LLC Remaining OLP Interests Liabilities, to the full extent that CFSI LLC has been heretofore or would have been in 

  

 18 

 
the future obligated to pay, perform and discharge the CFSI LLC Remaining OLP Interests Liabilities were it not for such contribution and the execution and
delivery of this Agreement; provided, however, that said assumption and agreement to duly and timely pay, perform and discharge the CFSI LLC Remaining OLP Interests Liabilities shall not (a) increase the obligation of the MLP with respect to the
CFSI LLC Remaining OLP Interests Liabilities beyond that of CFSI LLC, (b) waive any valid defense that was available to CFSI LLC with respect to the CFSI LLC Remaining OLP Interests Liabilities or (c) enlarge any rights or remedies of any third
party under any of the CFSI LLC Remaining OLP Interests Liabilities. 
  
 3.6 General Provisions Relating to Assumption of Liabilities. Notwithstanding anything to the contrary contained in this Agreement including, without limitation, the terms and provisions of this Article III, none of the Parties shall
be deemed to have assumed, and none of the matters sold, transferred or contributed pursuant to Article II have been or are being sold, transferred or contributed subject to, (a) any liens or security interests securing consensual indebtedness
covering any of such matters, except to the extent set forth on a schedule to this Agreement, and all such liens and security interests shall be deemed to be excluded from the assumptions of liabilities made under this Article III or
(b) any of the liabilities covered by the indemnities set forth in the Omnibus Agreement to the extent such liabilities are covered by such indemnities, and all such liabilities shall be deemed to be excluded from the assumptions of liabilities made
under this Article III to the extent that such liabilities are covered by such indemnities. 
  
 ARTICLE IV 
 FURTHER ASSURANCES 
  
 4.1 Further Assurances. From time to time after the date hereof, and without any further consideration, the Parties
agree to execute, acknowledge and deliver, and to cause their respective subsidiaries and controlled affiliates to execute, acknowledge and deliver, all such additional deeds, assignments, bills of sale, conveyances, instruments, notices, releases,
acquittances and other documents, and will do all such other acts and things, and will cause their respective subsidiaries and controlled affiliates to do all such other acts and things, all in accordance with applicable law, as may be necessary or
appropriate (a) more fully to assure that the applicable Parties own all of the properties, rights, titles, interests, estates, remedies, powers and privileges granted or contemplated by this Agreement, or which are intended to be so granted, and
(b) more fully and effectively to vest in the applicable Parties and their respective successors and assigns beneficial and record title to the interests contributed and assigned by this Agreement or intended so to be and to more fully and
effectively carry out the purposes and intent of this Agreement. 
  
 4.2 Other Assurances. From time to time after the date hereof, and without any further consideration, each of the Parties shall execute, acknowledge and deliver, and cause their respective subsidiaries and controlled affiliates to
execute, acknowledge and deliver, all such additional instruments, notices and other documents, and will do all such other acts and things, and will cause their respective subsidiaries and controlled affiliates to do all such other acts and things,
all in accordance with applicable law, as may be necessary or appropriate to more fully and effectively carry out the purposes and intent of this Agreement. Without limiting the generality of the foregoing, the Parties acknowledge that the Parties
have used their good faith 

  

 19 

 
efforts to attempt to identify all of the assets being contributed to the MLP or its subsidiaries as required in connection with the Offering. However, it is
possible that assets intended to be contributed to the MLP or its subsidiaries were not identified and therefore are not included in the assets contributed to the MLP or its subsidiaries. It is the express intent of the Parties that the MLP or its
subsidiaries own all assets necessary to operate the assets that are identified in this Agreement and in the Registration Statement. To the extent any assets were not identified but are necessary to the operation of assets that were identified, then
the intent of the Parties is that all such unidentified assets be conveyed to the appropriate Party. To the extent such assets are identified at a later date, the Parties shall take, and shall cause their respective subsidiaries and controlled
affiliates to take, the appropriate actions, required in order to convey all such assets to the appropriate Party or other person. Likewise, to the extent that assets are identified at a later date that were not intended by the Parties to be
conveyed to the MLP or its subsidiaries as reflected in the Registration Statement, the Parties shall take the appropriate actions required in order to convey all such assets to the appropriate party. 
  
 ARTICLE V 
 POWER OF ATTORNEY 
  
 5.1 Contributing Parties. Each of the Parties that has made a transfer or contribution as reflected by this Agreement (each a “Contributing Party”) hereby constitutes and appoints the party to
whom assets were transferred or contributed and its successors and assigns (the “Receiving Party”), its true and lawful attorney-in-fact with full power of substitution for it and in its name, place and stead or otherwise on behalf
of the applicable Contributing Party and its successors and assigns, and for the benefit of the applicable Receiving Party and its successors and assigns, to demand and receive from time to time the applicable assets contributed and any income
therefrom and to execute in the name of the applicable Contributing Party and its successors and assigns instruments of conveyance, instruments of further assurance and to give receipts and releases in respect of the same, and from time to time to
institute and prosecute in the name of the applicable Contributing Party for the benefit of the applicable Receiving Party as may be appropriate, any and all proceedings at law, in equity or otherwise which the applicable Receiving Party and its
successors and assigns, may deem proper in order to (a) collect, assert or enforce any claims, rights or titles of any kind in and to the applicable assets, (b) defend and compromise any and all actions, suits or proceedings in respect of any of the
applicable assets, and (c) do any and all such acts and things in furtherance of this Agreement as the applicable Receiving Party or its successors or assigns shall deem advisable. Each Contributing Party hereby declares that the appointments hereby
made and the powers hereby granted are coupled with an interest and are and shall be irrevocable and perpetual and shall not be terminated by any act of any Contributing Party or its successors or assigns or by operation of law. 
  

 20 

 ARTICLE VI 
 MISCELLANEOUS 
  
 6.1
Order of Completion of Transactions. The transactions provided for in Article II (except as otherwise noted) and Article III of this Agreement shall be completed on the Effective Date in the following order: 
  
 First, the transactions provided for in Article II
shall be completed in the order set forth therein; and 
  
 Second, the transactions provided for in Article III shall be completed in the order set forth therein. 
  
 6.2 Consents; Restriction on Assignment. If there are prohibitions against or conditions to the contribution and conveyance of one or more of the
matters conveyed in this Agreement without the prior written consent of third parties, including, without limitation, governmental agencies (other than consents of a ministerial nature which are normally granted in the ordinary course of business),
which if not satisfied would result in a breach of such prohibitions or conditions or would give an outside party the right to terminate rights of the Party to whom the applicable matters were intended to be conveyed (the “Beneficial
Owner”) with respect to such portion of such matters (herein called a “Restriction”), then any provision contained in this Agreement to the contrary notwithstanding, the transfer of title to or interest in each such portion
of such matters (herein called the “Restriction Matter”) pursuant to this Agreement shall not become effective unless and until such Restriction is satisfied, waived or no longer applies. When and if such a Restriction is so
satisfied, waived or no longer applies, to the extent permitted by applicable law and any applicable contractual provisions, the assignment of the Restriction Matter subject thereto shall become effective automatically as of the Effective Time,
without further action on the part of any Party. Each of the applicable Parties that were involved with the conveyance of a Restriction Matter agree to use their reasonable best efforts to obtain on a timely basis satisfaction of any Restriction
applicable to any Restriction Matter conveyed by or acquired by any of them. The description of any portion of such matters as a “Restriction Matter” shall not be construed as an admission that any Restriction exists with respect to the
transfer of such portion of such matters. In the event that any Restriction Matter exists, the applicable Party agrees to continue to hold such Restriction Matter in trust for the exclusive benefit of the applicable Party to whom such Restriction
Matter was intended to be conveyed and to otherwise use its reasonable best efforts to provide such other Party with the benefits thereof, and the party holding such Restriction Matter will enter into other agreements, or take such other action as
it may deem necessary, in order to ensure that the applicable Party to whom such Restriction Matter was intended to be conveyed has the rights necessary to enable the applicable Party to operate such Restriction Matter in all material respects as it
was operated prior to the Effective Time. Until such Restriction Matter can be conveyed to the applicable Party or to the extent necessary, the party holding such Restriction Matter will continue to operate such Restriction Matter for the benefit of
the applicable party. 
  
 6.3 Costs. The OLP shall pay all
sales, use and similar taxes arising out of the contributions, conveyances and deliveries to be made hereunder, and shall pay all documentary, filing, recording, transfer, and conveyance taxes and fees required in connection therewith. In 

  

 21 

 
addition, the OLP shall be responsible for all costs, liabilities and expenses (including court costs and reasonable attorneys’ fees) incurred in
connection with the satisfaction or waiver of any Restriction pursuant to Section 6.2. 
  
 6.4 Headings; References; Interpretation. All Article and Section headings in this Agreement are for convenience only and shall not be deemed to control or affect the meaning or construction of any of the
provisions hereof. The words “hereof,” “herein” and “hereunder” and words of similar import, when used in this Agreement, shall refer to this Agreement as a whole, including without limitation, all Schedules attached
hereto, and not to any particular provision of this Agreement. All references herein to Articles, Sections, and Schedules shall, unless the context requires a different construction, be deemed to be references to the Articles, Sections and Schedules
of this Agreement, respectively, and all such Schedules attached hereto are hereby incorporated herein and made a part hereof for all purposes. All personal pronouns used in this Agreement, whether used in the masculine, feminine or neuter gender,
shall include all other genders, and the singular shall include the plural and vice versa. The use herein of the word “including” following any general statement, term or matter shall not be construed to limit such statement, term or
matter to the specific items or matters set forth immediately following such word or to similar items or matters, whether or not non-limiting language (such as “without limitation,” “but not limited to,” or words of similar
import) is used with reference thereto, but rather shall be deemed to refer to all other items or matters that could reasonably fall within the broadest possible scope of such general statement, term or matter. 
  
 6.5 Successors and Assigns. The Agreement shall be binding upon and
inure to the benefit of the Parties and their respective successors and assigns. 
  
 6.6 No Third Party Rights. The provisions of this Agreement are intended to bind the Parties as to each other and are not intended to and do not create rights in any other person or confer upon any other person
any benefits, rights or remedies and no person is or is intended to be a third party beneficiary of any of the provisions of this Agreement. 
  
 6.7 Counterparts. This Agreement may be executed in any number of counterparts, all of which together shall constitute one agreement binding on the
Parties. 
  
 6.8 Governing Law. This Agreement shall be
governed by, and construed in accordance with, the laws of the State of Pennsylvania applicable to contracts made and to be performed wholly within such state without giving effect to conflict of law principles thereof, except to the extent that it
is mandatory that the law of some other jurisdiction shall apply. 
  
 6.9 Severability. If any of the provisions of this Agreement are held by any court of competent jurisdiction to contravene, or to be invalid under, the laws of any political body having jurisdiction over the subject matter hereof,
such contravention or invalidity shall not invalidate the entire Agreement. Instead, this Agreement shall be construed as if it did not contain the particular provision or provisions held to be invalid, and an equitable adjustment shall be made and
necessary provision added so as to give effect to the intention of the Parties as expressed in this Agreement at the time of execution of this Agreement. 
  

 22 

 6.10 Bill of Sale; Assignment. To the extent required and permitted by applicable law, this
Agreement shall also constitute a “bill of sale” or “assignment” of the matters transferred or conveyed as set forth in this Agreement. 
  
 6.11 Amendment or Modification. This Agreement may be amended or modified from time to time only by the written agreement of all the Parties hereto
and affected thereby. 
  
 6.12 Integration. This Agreement
and the instruments referenced herein supersede all previous understandings or agreements among the Parties, whether oral or written, with respect to its subject matter. This Agreement and such instruments contain the entire understanding of the
Parties with respect to the subject matter hereof and thereof. No understanding, representation, promise or agreement, whether oral or written, is intended to be or shall be included in or form part of this Agreement unless it is contained in a
written amendment hereto executed by the Parties after the date of this Agreement. 
  

 23 

 IN WITNESS WHEREOF, this Agreement has been duly executed by the Parties as of the date first above
written. 
  

			
	 CFSI LLC, a Delaware limited liability company

		
	By:	 	/s/    Lawrence Miller
	 Name:
	 	Lawrence Miller
	 Title:
	 	President and CEO
		
	 	 	“CFSI LLC”
	
	 STONEMOR PARTNERS, L.P., a Delaware
 limited partnership

		
	By:	 	 StoneMor GP LLC, a Delaware limited
 liability company, its general partner

		
	 By:
	 	/s/    Lawrence Miller
	 Name:
	 	Lawrence Miller
	 Title:
	 	President and CEO
		
	 	 	“MLP”
	
	STONEMOR GP LLC, a Delaware limited liability company
		
	By:	 	/s/    Lawrence Miller
	 Name:
	 	Lawrence Miller
	 Title:
	 	President and CEO
		
	 	 	“GP”
	
	STONEMOR OPERATING LLC, a Delaware limited liability company
		
	By:	 	/s/    Lawrence Miller
	 Name:
	 	Lawrence Miller
	 Title:
	 	President and CEO
		
	 	 	“OLP”Long-Term Incentive Plan

 Exhibit 10.3 
  
 STONEMOR PARTNERS L.P. 
 LONG-TERM INCENTIVE PLAN 
  
 SECTION 1. Purpose of the
Plan. 
  
 The StoneMor Partners L.P. Long-Term Incentive Plan
(the “Plan”) has been adopted by StoneMor GP LLC, a Delaware limited liability company (the “Company”), the general partner of StoneMor Partners L.P., a Delaware limited partnership (the “Partnership”), and is intended
to promote the interests of the Partnership and the Company by providing to employees, consultants, and directors of the Company and its Affiliates incentive compensation awards for superior performance that are based on Units. The Plan is also
contemplated to enhance the ability of the Company, the Partnership and their Affiliates to attract and retain the services of individuals who are essential for the growth and profitability of the Partnership and to encourage them to devote their
best efforts to advancing the business of the Partnership and their respective employers. 
  
 SECTION 2. Definitions. 
  
 As used in the Plan, the following terms shall have the meanings set forth below: 
  
 “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. 
  
 “Award” means an Option, Restricted Unit,
Phantom Unit or Unit Appreciation Right granted under the Plan, and shall include any tandem DERs granted with respect to a Phantom Unit, Option or Unit Appreciation Right. 
  
 “Award Agreement” means the written agreement by which an Award shall be evidenced. 
  
 “Board” means the Board of Directors of the Company. 
  
 “Change of Control” means, and shall be deemed to have occurred
upon the occurrence of one or more of the following events: (i) any sale, lease, exchange or other transfer (in one transaction or a series of related transactions) of all or substantially all of the assets of the Partnership or the Company to any
Person and/or its Affiliates, other than to the Partnership, the Company and/or any of their Affiliates; (ii) the consolidation, reorganization, merger or other transaction pursuant to which more than 50% of the combined voting power of the
outstanding equity interests in the Company cease to be owned by the Persons who own such interests as of the effective date of the initial public offering of Units; or (iii) the Company ceasing to be the general partner of the Partnership.

  
 “Committee” means the Compensation Committee of the
Board. 
  

 “Consultant” means an individual who performs services for the Company or an Affiliate and is
not an Employee or a Director. 
  
 “DER” means a
contingent right, granted in tandem with a specific Option, Unit Appreciation Right or Phantom Unit, to receive an amount in cash equal to the cash distributions made by the Partnership with respect to a Unit during the period such Award is
outstanding. 
  
 “Director” means a member of the Board
who is not an Employee. 
  
 “Employee” means any
employee of the Company or an Affiliate. 
  
 “Exchange
Act” means the Securities Exchange Act of 1934, as amended. 
  
 “Fair Market Value” means the closing sales price of a Unit on the last trading date preceding the applicable date (or if there is no trading in the Units on such date, on the next preceding date on which there was trading) as
reported in The Wall Street Journal (or other reporting service approved by the Committee). In the event Units are not publicly traded at the time a determination of fair market value is required to be made hereunder, the determination of
fair market value shall be made in good faith by the Committee. 
  
 “Option” means an option to purchase Units granted under the Plan. 
  
 “Participant” means any Employee, Consultant or Director granted an Award under the Plan. 
  
 “Partnership Agreement” means the Amended and Restated Agreement of Limited Partnership of StoneMor Partners L.P., as it may be amended or
amended and restated from time to time. 
  
 “Person”
means an individual or a corporation, limited liability company, partnership, joint venture, trust, unincorporated organization, association, government agency or political subdivision thereof or other entity. 
  
 “Phantom Unit” means a phantom (notional) Unit granted under the
Plan which upon vesting entitles the Participant to receive a Unit or an amount of cash equal to the Fair Market Value of a Unit, as determined by the Committee in its discretion. 
  
 “Restricted Period” means the period established by the Committee with respect to an Award during which the Award
remains subject to forfeiture and is either not exercisable by or payable to the Participant, as the case may be. 
  
 “Restricted Unit” means a Unit granted under the Plan that is subject to a Restricted Period. 
  
 “Rule 16b-3” means Rule 16b-3 promulgated by the SEC under the
Exchange Act, or any successor rule or regulation thereto as in effect from time to time. 
  
 “SEC” means the Securities and Exchange Commission, or any successor thereto. 
  

 -2- 

 “UDR” means a distribution made by the Partnership with respect to a Restricted Unit.

  
 “Unit” means a Common Unit of the Partnership.

  
 “Unit Appreciation Right” means an Award that, upon
exercise, entitles the holder to receive the excess of the Fair Market Value of Unit on the exercise date over the exercise price established for such Unit Appreciation Right. Such excess may be paid in cash and/or in Units as determined by the
Committee in its discretion. 
  
 SECTION 3. Administration.

  
 The Plan shall be administered by the Committee. A majority of
the Committee shall constitute a quorum, and the acts of the members of the Committee who are present at any meeting thereof at which a quorum is present, or acts unanimously approved by the members of the Committee in writing, shall be the acts of
the Committee. Subject to the following and applicable law, the Committee, in its sole discretion, may delegate any or all of its powers and duties under the Plan, including the power to grant Awards under the Plan, to the Chief Executive Officer of
the Company, subject to such limitations on such delegated powers and duties as the Committee may impose, if any. Upon any such delegation all references in the Plan to the “Committee”, other than in Section 7, shall be deemed to include
the Chief Executive Officer; provided, however, that such delegation shall not limit the Chief Executive Officer’s right to receive Awards under the Plan. Notwithstanding the foregoing, the Chief Executive Officer may not grant Awards to, or
take any action with respect to any Award previously granted to, a person who is an officer subject to Rule 16b-3 or a member of the Board. Subject to the terms of the Plan and applicable law, and in addition to other express powers and
authorizations conferred on the Committee by the Plan, the Committee shall have full power and authority to: (i) designate Participants; (ii) determine the type or types of Awards to be granted to a Participant; (iii) determine the number of Units
to be covered by Awards; (iv) determine the terms and conditions of any Award; (v) determine whether, to what extent, and under what circumstances Awards may be settled, exercised, canceled, or forfeited; (vi) interpret and administer the Plan and
any instrument or agreement relating to an Award made under the Plan; (vii) establish, amend, suspend, or waive such rules and regulations and appoint such agents as it shall deem appropriate for the proper administration of the Plan; and (viii)
make any other determination and take any other action that the Committee deems necessary or desirable for the administration of the Plan. Unless otherwise expressly provided in the Plan, all designations, determinations, interpretations, and other
decisions under or with respect to the Plan or any Award shall be within the sole discretion of the Committee, may be made at any time and shall be final, conclusive, and binding upon all Persons, including the Company, the Partnership, any
Affiliate, any Participant, and any beneficiary of any Award. 
  
 SECTION 4. Units. 
  
 (a) Limits on Units
Deliverable. Subject to adjustment as provided in Section 4(c), the number of Units that may be delivered with respect to Awards under the Plan is 416,000. However, there shall not be any limitation on the number of Awards that may be granted
and paid in cash. 
  

 -3- 

 (b) Sources of Units Deliverable Under Awards. Any Units delivered pursuant to an Award shall
consist, in whole or in part, of Units acquired in the open market, from any Affiliate, the Partnership or any other Person, or any combination of the foregoing. 
  
 (c) Adjustments. In the event that the Committee determines that any distribution (whether in the form of cash,
Units, other securities, or other property), recapitalization, split, reverse split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase, or exchange of Units or other securities of the Partnership, issuance of
warrants or other rights to purchase Units or other securities of the Partnership, or other similar transaction or event affects the Units such that an adjustment is determined by the Committee to be appropriate in order to prevent dilution or
enlargement of the benefits or potential benefits intended to be made available under the Plan, then the Committee shall, in such manner as it may deem equitable, adjust any or all of (i) the number and type of Units (or other securities or
property) with respect to which Awards may be granted, (ii) the number and type of Units (or other securities or property) subject to outstanding Awards, and (iii) the grant or exercise price with respect to any Award or, if deemed appropriate, make
provision for a cash payment to the holder of an outstanding Award; provided, that the number of Units subject to any Award shall always be a whole number. 
  
 SECTION 5. Eligibility. 
  
 Any Employee, Consultant or Director shall be eligible to be designated a Participant and receive an Award under the Plan. 
  
 SECTION 6. Awards. 
  
 (a) Options. The Committee shall have the authority to determine the
Employees, Consultants and Directors to whom Options shall be granted, the number of Units to be covered by each Option, whether DERs are granted with respect to such Option, the purchase price therefor and the conditions and limitations applicable
to the exercise of the Option, including the following terms and conditions and such additional terms and conditions, as the Committee shall determine, that are not inconsistent with the provisions of the Plan. 
  
 (i) Exercise Price. The purchase price per Unit
purchasable under an Option shall be determined by the Committee at the time the Option is granted and may be more or less than its Fair Market Value as of the date of grant. 
  
 (ii) Time and Method of Exercise. The Committee shall determine the Restricted Period, i.e., the time
or times at which an Option may be exercised in whole or in part, which may include, without limitation, accelerated vesting upon the achievement of specified performance goals, and the method or methods by which payment of the exercise price with
respect thereto may be made or deemed to have been made, which may include, without limitation, cash, check acceptable to the Company, a “cashless-broker” exercise through procedures approved by the Company, other securities or other
property, or any combination thereof, having a Fair Market Value on the exercise date equal to the relevant exercise price. 
  

 -4- 

 (iii) Forfeiture. Except as otherwise provided in the terms of the Option grant,
upon termination of a Participant’s employment with or consulting services to the Company and its Affiliates or membership on the Board, whichever is applicable, for any reason during the applicable Restricted Period, all Options shall be
forfeited by the Participant. The Committee may, in its discretion, waive in whole or in part such forfeiture with respect to a Participant’s Options. 
  
 (iv) Option DERs. To the extent provided by the Committee, in its discretion, a grant of Options may include a tandem DER grant,
which may provide that such DERs shall be paid directly to the Participant, be credited to a bookkeeping account (with or without interest in the discretion of the Committee) subject to the same vesting restrictions as the tandem Options Award, or
be subject to such other provisions or restrictions as determined by the Committee in its discretion. 
  
 (b) Restricted Units and Phantom Units. The Committee shall have the authority to determine the Employees, Consultants and Directors to whom
Restricted Units or Phantom Units shall be granted, the number of Restricted Units or Phantom Units to be granted to each such Participant, the Restricted Period, the conditions under which the Restricted Units or Phantom Units may become vested or
forfeited, which may include, without limitation, the accelerated vesting upon the achievement of specified performance goals, and such other terms and conditions as the Committee may establish with respect to such Awards, including whether DERs are
granted with respect to the Phantom Units. 
  
 (i) DERs. To the extent provided by the Committee, in its discretion, a grant of Phantom Units may include a tandem DER grant, which may provide that such DERs shall be paid directly to the Participant, be credited to a bookkeeping
account (with or without interest in the discretion of the Committee) subject to the same vesting restrictions as the tandem Phantom Unit Award, or be subject to such other provisions or restrictions as determined by the Committee in its discretion.

  
 (ii) UDRs. To the extent provided by
the Committee, in its discretion, a grant of Restricted Units may provide that distributions made by the Partnership with respect to the Restricted Units shall be subject to the same forfeiture and other restrictions as the Restricted Unit and, if
restricted, such distributions shall be held, without interest, until the Restricted Unit vests or is forfeited with the UDR being paid or forfeited at the same time, as the case may be. Absent such a restriction on the UDRs in the grant agreement,
UDRs shall be paid to the holder of the Restricted Unit without restriction. 
  
 (iii) Forfeitures. Except as otherwise provided in the terms of the Restricted Units or Phantom Units grant, upon termination of a Participant’s employment with the Company and its Affiliates or membership
on the Board, whichever is applicable, for any reason during the applicable Restricted Period, all outstanding Restricted Units and Phantom Units awarded the Participant shall be automatically forfeited on such termination. The Committee may, in its
discretion, waive in whole or in part such forfeiture with respect to a Participant’s Restricted Units and/or Phantom Units. 
  

 -5- 

 (iv) Lapse of Restrictions. 
  
 (A) Phantom Units. Upon or as soon as reasonably
practical following the vesting of each Phantom Unit, subject to the provisions of Section 8(b), the Participant shall be entitled to receive from the Company one Unit or cash equal to the Fair Market Value of a Unit, as determined by the Committee
in its discretion. 
  
 (B) Restricted
Units. Upon or as soon as reasonably practical following the vesting of each Restricted Unit, subject to the provisions of Section 8(b), the Participant shall be entitled to have the restrictions removed from his or her Unit certificate so that
the Participant then holds an unrestricted Unit. 
  
 (c) Unit
Appreciation Rights. The Committee shall have the authority to determine the Employees, Consultants and Directors to whom Unit Appreciation Rights shall be granted, the number of Units to be covered by each grant, whether DERs are granted with
respect to such Unit Appreciation Right, the exercise price therefor and the conditions and limitations applicable to the exercise of the Unit Appreciation Right, including the following terms and conditions and such additional terms and conditions,
as the Committee shall determine, that are not inconsistent with the provisions of the Plan. 
  
 (i) Exercise Price. The exercise price per Unit Appreciation Right shall be determined by the Committee at the time the Unit
Appreciation Right is granted and may be more or less than its Fair Market Value as of the date of grant. 
  
 (ii) Time of Exercise. The Committee shall determine the Restricted Period, i.e., the time or times at which a Unit Appreciation
Right may be exercised in whole or in part, which may include, without limitation, accelerated vesting upon the achievement of specified performance goals. 
  
 (iii) Forfeitures. Except as otherwise provided in the terms of the Unit Appreciation Right grant, upon termination of a
Participant’s employment with or services to the Company and its Affiliates or membership on the Board, whichever is applicable, for any reason during the applicable Restricted Period, all outstanding Unit Appreciation Rights awarded the
Participant shall be automatically forfeited on such termination. The Committee may, in its discretion, waive in whole or in part such forfeiture with respect to a Participant’s Unit Appreciation Rights. 
  
 (iv) Unit Appreciation Right DERs. To the extent
provided by the Committee, in its discretion, a grant of Unit Appreciation Rights may include a tandem DER grant, which may provide that such DERs shall be paid directly to the Participant, be credited to a bookkeeping account (with or without
interest in the discretion of the Committee) subject to the same vesting restrictions as the tandem Unit Appreciation Rights Award, or be subject to such other provisions or restrictions as determined by the Committee in its discretion. 

 

 -6- 

 (d) General. 
  
 (i) Awards May Be Granted Separately or Together. Awards may, in the discretion of the Committee, be
granted either alone or in addition to, in tandem with, or in substitution for any other Award granted under the Plan or any award granted under any other plan of the Company or any Affiliate. Awards granted in addition to or in tandem with other
Awards or awards granted under any other plan of the Company or any Affiliate may be granted either at the same time as or at a different time from the grant of such other Awards or awards. 
  
 (ii) Limits on Transfer of Awards. 
  
 (A) Except as provided in (C) below, each Option and Unit
Appreciation Right shall be exercisable only by the Participant during the Participant’s lifetime, or by the person to whom the Participant’s rights shall pass by will or the laws of descent and distribution. 
  
 (B) Except as provided in (C) below, no Award and no right
under any such Award may be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by a Participant and any such purported assignment, alienation, pledge, attachment, sale, transfer or encumbrance shall be void and
unenforceable against the Company, the Partnership or any Affiliate. 
  
 (C) To the extent specifically provided by the Committee with respect to an Option or Unit Appreciation Right grant, an Option or Unit Appreciation Right may be transferred by a Participant without consideration to
immediate family members or related family trusts, limited partnerships or similar entities or on such terms and conditions as the Committee may from time to time establish. 
  
 (iii) Term of Awards. The term of each Award shall be for such period as may be determined by the
Committee. 
  
 (iv) Unit Certificates. All
certificates for Units or other securities of the Partnership delivered under the Plan pursuant to any Award or the exercise thereof shall be subject to such stop transfer orders and other restrictions as the Committee may deem advisable under the
Plan or the rules, regulations, and other requirements of the SEC, any stock exchange upon which such Units or other securities are then listed, and any applicable federal or state laws, and the Committee may cause a legend or legends to be put on
any such certificates to make appropriate reference to such restrictions. 
  
 (v) Consideration for Grants. Awards may be granted for such consideration, including services, as the Committee determines. 
  
 (vi) Delivery of Units or other Securities and Payment by Participant of Consideration.
Notwithstanding anything in the Plan or any grant agreement to the contrary, delivery of Units pursuant to the exercise or vesting of an Award may be deferred for any period during which, in the good faith determination of the Committee, the Company
is not reasonably able to obtain Units to deliver pursuant to such Award 

  

 -7- 

 
without violating the rules or regulations of any applicable law or securities exchange. No Units or other securities shall be delivered pursuant to any
Award until payment in full of any amount required to be paid pursuant to the Plan or the applicable Award grant agreement (including, without limitation, any exercise price or tax withholding) is received by the Company. 
  
 (vii) Change of Control. Unless specifically provided
otherwise in the Award agreement, upon a Change of Control all outstanding Awards shall automatically vest and be payable or become exercisable in full, as the case may be. 
  
 SECTION 7. Amendment and Termination. 
  
 Except to the extent prohibited by applicable law: 
  
 (a) Amendments to the Plan. Except as required by the rules of the principal securities exchange on which the Units
are traded and subject to Section 7(b) below, the Board or the Committee may amend, alter, suspend, discontinue, or terminate the Plan in any manner, including increasing the number of Units available for Awards under the Plan, without the consent
of any partner, Participant, other holder or beneficiary of an Award, or other Person. 
  
 (b) Amendments to Awards. Subject to Section 7(a), the Committee may waive any conditions or rights under, amend any terms of, or alter any Award theretofore granted, provided no change, other than pursuant to
Section 7(c), in any Award shall materially reduce the benefit to Participant without the consent of such Participant. 
  
 (c) Adjustment of Awards Upon the Occurrence of Certain Unusual or Nonrecurring Events. The Committee is hereby authorized to make adjustments in
the terms and conditions of, and the criteria included in, Awards in recognition of unusual or nonrecurring events (including, without limitation, the events described in Section 4(c) of the Plan) affecting the Partnership or the financial
statements of the Partnership, or of changes in applicable laws, regulations, or accounting principles, whenever the Committee determines that such adjustments are appropriate in order to prevent dilution or enlargement of the benefits or potential
benefits intended to be made available under the Plan or such Award. 
  
 SECTION 8. General Provisions. 
  
 (a) No
Rights to Award. No Person shall have any claim to be granted any Award under the Plan, and there is no obligation for uniformity of treatment of Participants. The terms and conditions of Awards need not be the same with respect to each
recipient. 
  
 (b) Tax Withholding. The Company or any
Affiliate is authorized to withhold from any Award, from any payment due or transfer made under any Award or from any compensation or other amount owing to a Participant the amount (in cash, Units, other securities, Units that would otherwise be
issued pursuant to such Award or other property) of any applicable taxes payable in respect of the grant of an Award, its exercise, the lapse of restrictions thereon, or any payment or transfer under an Award or under the Plan and to take such other
action as may be 

  

 -8- 

 
necessary in the opinion of the Company to satisfy its withholding obligations for the payment of such taxes. 
  
 (c) No Right to Employment or Services. The grant of an Award shall
not be construed as giving a Participant the right to be retained in the employ of the Company or any Affiliate, to continue as a consultant, or to remain on the Board, as applicable. Further, the Company or an Affiliate may at any time dismiss a
Participant from employment or terminate a consulting relationship, free from any liability or any claim under the Plan, unless otherwise expressly provided in the Plan, any Award agreement or other agreement. 
  
 (d) Governing Law. The validity, construction, and effect of the Plan
and any rules and regulations relating to the Plan shall be determined in accordance with the laws of the State of [                    ]
without regard to its conflict of laws principles. 
  
 (e)
Severability. If any provision of the Plan or any award is or becomes or is deemed to be invalid, illegal, or unenforceable in any jurisdiction or as to any Person or Award, or would disqualify the Plan or any award under any law deemed
applicable by the Compensation Committee, such provision shall be construed or deemed amended to conform to the applicable laws, or if it cannot be construed or deemed amended without, in the determination of the Compensation Committee, materially
altering the intent of the Plan or the Award, such provision shall be stricken as to such jurisdiction, person or award and the remainder of the Plan and any such Award shall remain in full force and effect. 
  
 (f) Other Laws. The Committee may refuse to issue or transfer any
Units or other consideration under an Award if, in its sole discretion, it determines that the issuance or transfer of such Units or such other consideration might violate any applicable law or regulation, the rules of the principal securities
exchange on which the Units are then traded, or entitle the Partnership or an Affiliate to recover the same under Section 16(b) of the Exchange Act, and any payment tendered to the Company by a Participant, other holder or beneficiary in connection
with the exercise of such Award shall be promptly refunded to the relevant Participant, holder or beneficiary. 
  
 (g) No Trust or Fund Created. Neither the Plan nor any award shall create or be construed to create a trust or separate fund of any kind or a
fiduciary relationship between the Company or any participating Affiliate and a Participant or any other Person. To the extent that any Person acquires a right to receive payments from the Company or any participating Affiliate pursuant to an Award,
such right shall be no greater than the right of any general unsecured creditor of the Company or any participating Affiliate. 
  
 (h) No Fractional Units. No fractional Units shall be issued or delivered pursuant to the Plan or any Award, and the Committee shall determine
whether cash, other securities, or other property shall be paid or transferred in lieu of any fractional Units or whether such fractional Units or any rights thereto shall be canceled, terminated, or otherwise eliminated. 
  
 (i) Headings. Headings are given to the Sections and subsections of
the Plan solely as a convenience to facilitate reference. Such headings shall not be deemed in any way material or relevant to the construction or interpretation of the Plan or any provision thereof. 
  

 -9- 

 (j) Facility Payment. Any amounts payable hereunder to any person under legal disability or who,
in the judgment of the Committee, is unable to properly manage his financial affairs, may be paid to the legal representative of such person, or may be applied for the benefit of such person in any manner which the Committee may select, and the
Company shall be relieved of any further liability for payment of such amounts. 
  
 (k) Participation by Affiliates. In making Awards to Consultants and Employees employed by an entity other than by the Company, the Committee shall be acting on behalf of the Affiliate, and to the extent the
Partnership has an obligation to reimburse the Company for compensation paid to Consultants and Employees for services rendered for the benefit of the Partnership, such payments or reimbursement payments may be made by the Partnership directly to
the Affiliate, and, if made to the Company, shall be received by the Company as agent for the Affiliate. 
  
 (l) Gender and Number. Words in the masculine gender shall include the feminine gender, the plural shall include the singular and the singular
shall include the plural. 
  
 SECTION 9. Term of the Plan.

  
 The Plan shall be effective on the date of its approval by the
Board and shall continue until the earliest of (i) the date terminated by the Board, (ii) all available Units under the Plan have been paid to Participants, or (iii) the 10th anniversary of the date the Plan is approved by the Board or the
unitholders, whichever occurs first. However, unless otherwise expressly provided in the Plan or in an applicable Award Agreement, any Award granted prior to such termination, and the authority of the Board or the Committee to amend, alter, adjust,
suspend, discontinue, or terminate any such Award or to waive any conditions or rights under such Award, shall extend beyond such termination date. 
  

 -10-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00074-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00074-of-00352.parquet"}]]