Document:

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                                                                    Exhibit 10.2

                              AMENDED AND RESTATED
                           CHANGE OF CONTROL AGREEMENT

     This Change of Control Agreement ("Agreement") between Stewart Enterprises,
Inc., a Louisiana corporation (the "Company"), and Thomas M. Kitchen (the
"Employee") was originally effective as of November 1, 2004 (the "Change of
Control Agreement Date") and is amended and restated effective as of November 8,
2006 (the "Amendment Date").

                                   ARTICLE I
                                  DEFINITIONS

     1.1 EMPLOYMENT AGREEMENT. After a Change of Control (defined below), this
Agreement supersedes the Amended and Restated Employment Agreement effective as
of ____________ ___, 2006 between Employee and the Company (the "Employment
Agreement") except to the extent that certain provisions of the Employment
Agreement are expressly incorporated by reference herein. After a Change of
Control, the definitions in this Agreement supersede definitions in the
Employment Agreement, but capitalized terms used herein that are not defined in
this Agreement have the meanings given to them in the Employment Agreement.

     1.2 DEFINITION OF "COMPANY." As used in this Agreement, "Company" shall
mean the Company as defined above and any successor to or assignee of (whether
direct or indirect, by purchase, merger, consolidation or otherwise) all or
substantially all of the assets or business of the Company.

     1.3 CHANGE OF CONTROL DEFINED. "Change of Control" shall mean:

          (a) the acquisition by any individual, entity or group (within the
     meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act) of beneficial
     ownership (within the meaning of Rule 13d-3 promulgated under the Exchange
     Act) of more than 30% of the outstanding shares of the Company's Class A
     Common Stock, no par value per share (the "Common Stock"); provided,
     however, that for purposes of this subsection (a), the following
     acquisitions shall not constitute a Change of Control:

               (i) any acquisition of Common Stock directly from the Company,

               (ii) any acquisition of Common Stock by the Company,

               (iii) any acquisition of Common Stock by any employee benefit
          plan (or related trust) sponsored or maintained by the Company or any
          corporation controlled by the Company, or

               (iv) any acquisition of Common Stock by any corporation pursuant
          to a transaction that complies with clauses (i), (ii) and (iii) of
          subsection (c) of this Section 1.3; or

          (b) individuals who, as of the Change of Control Agreement Date,
     constitute the Board (the "Incumbent Board") cease for any reason to
     constitute at least a majority

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     of the Board; provided, however, that any individual becoming a director
     subsequent to the Change of Control Agreement Date whose election, or
     nomination for election by the Company's shareholders, was approved by a
     vote of at least a majority of the directors then comprising the Incumbent
     Board shall be considered a member of the Incumbent Board, unless such
     individual's initial assumption of office occurs as a result of an actual
     or threatened election contest with respect to the election or removal of
     directors or other actual or threatened solicitation of proxies or consents
     by or on behalf of a person other than the Incumbent Board; or

          (c) consummation of a reorganization, merger or consolidation, or sale
     or other disposition of all of substantially all of the assets of the
     Company (a "Business Combination"), in each case, unless, following such
     Business Combination,

               (i) all or substantially all of the individuals and entities who
          were the beneficial owners of the Company's outstanding common stock
          and the Company's voting securities entitled to vote generally in the
          election of directors immediately prior to such Business Combination
          have direct or indirect beneficial ownership, respectively, of 50% or
          more of the then outstanding shares of common stock, and 50% or more
          of the combined voting power of the then outstanding voting securities
          entitled to vote generally in the election of directors, of the
          corporation resulting from such Business Combination (which, for
          purposes of this paragraph (i) and paragraphs (ii) and (iii), shall
          include a corporation which as a result of such transaction controls
          the Company or all or substantially all of the Company's assets either
          directly or through one or more subsidiaries), and

               (ii) except to the extent that such ownership existed prior to
          the Business Combination, no person (excluding any corporation
          resulting from such Business Combination or any employee benefit plan
          or related trust of the Company or such corporation resulting from
          such Business Combination) beneficially owns, directly or indirectly,
          20% or more of the then outstanding shares of common stock of the
          corporation resulting from such Business Combination or 20% or more of
          the combined voting power of the then outstanding voting securities of
          such corporation, and

               (iii) at least 50% of the members of the board of directors of
          the corporation resulting from such Business Combination were members
          of the Incumbent Board at the time of the execution of the initial
          agreement, or of the action of the Board, providing for such Business
          Combination; or

          (d) approval by the shareholders of the Company of a complete
     liquidation or dissolution of the Company.

     1.4 AFFILIATE. "Affiliate" or "affiliated companies" shall mean any company
controlled by, controlling, or under common control with, the Company.

     1.5 CAUSE. "Cause" shall mean:

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          (a) the willful and continued failure of the Employee to perform
     substantially the Employee's duties with the Company or its affiliates
     (other than any such failure resulting from incapacity due to physical or
     mental illness), after a written demand for substantial performance is
     delivered to the Employee by the Board of the Company which specifically
     identifies the manner in which the Board believes that the Employee has not
     substantially performed the Employee's duties, or

          (b) the willful engaging by the Employee in illegal conduct or gross
     misconduct which is materially and demonstrably injurious to the Company or
     its affiliates.

For purposes of this provision, no act or failure to act, on the part of the
Employee, shall be considered "willful" unless it is done, or omitted to be
done, by the Employee in bad faith or without reasonable belief that the
Employee's action or omission was in the best interests of the Company or its
affiliates. Any act, or failure to act, based upon authority given pursuant to a
resolution duly adopted by the Board or upon the instructions of a senior
officer of the Company or based upon the advice of counsel for the Company or
its affiliates shall be conclusively presumed to be done, or omitted to be done,
by the Employee in good faith and in the best interests of the Company or its
affiliates. The cessation of employment of the Employee shall not be deemed to
be for Cause unless and until there shall have been delivered to the Employee a
copy of a resolution duly adopted by the affirmative vote of not less than
three-quarters of the entire membership of the Board at a meeting of the Board
called and held for such purpose (after reasonable notice is provided to the
Employee and the Employee is given an opportunity, together with counsel, to be
heard before the Board), finding that, in the good faith opinion of the Board,
the Employee is guilty of the conduct described in subparagraph (a) or (b)
above, and specifying the particulars thereof in detail.

     1.6 GOOD REASON. "Good Reason" shall mean:

          (a) Any failure of the Company or its affiliates to provide the
     Employee with the position, authority, duties and responsibilities at least
     commensurate in all material respects with the most significant of those
     held, exercised and assigned at any time during the 120-day period
     immediately preceding the Change of Control. Employee's position,
     authority, duties and responsibilities after a Change of Control shall not
     be considered commensurate in all material respects with Employee's
     position, authority, duties and responsibilities prior to a Change of
     Control unless after the Change of Control Employee holds (i) an equivalent
     position in the Company or, (ii) if the Company is controlled or will after
     the transaction be controlled by another company (directly or indirectly),
     an equivalent position in the ultimate parent company.

          (b) The assignment to the Employee of any duties inconsistent in any
     material respect with Employee's position (including status, offices,
     titles and reporting requirements), authority, duties or responsibilities
     as contemplated by Section 2.1(b) of this Agreement, or any other action
     that results in a diminution in such position, authority, duties or
     responsibilities, excluding for this purpose an isolated, insubstantial and
     inadvertent action not taken in bad faith that is remedied within 10 days
     after receipt of written notice thereof from the Employee to the Company;

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          (c) Any failure by the Company or its affiliates to comply with any of
     the provisions of this Agreement, other than an isolated, insubstantial and
     inadvertent failure not occurring in bad faith that is remedied within 10
     days after receipt of written notice thereof from the Employee to the
     Company;

          (d) The Company or its affiliates requiring the Employee to be based
     at any office or location other than as provided in Section 2.1(b)(ii)
     hereof or requiring the Employee to travel on business to a substantially
     greater extent than required immediately prior to the Change of Control;

          (e) Any purported termination of the Employee's employment otherwise
     than as expressly permitted by this Agreement; or

          (f) Any failure by the Company to comply with and satisfy Sections
     3.1(c) and (d) of this Agreement.

For purposes of this Section 1.6, any good faith determination of "Good Reason"
made by the Employee shall be conclusive. Anything in this Agreement to the
contrary notwithstanding, a termination by the Employee for any reason during
the 30-day period immediately following the first anniversary of the Change of
Control shall be deemed to be a termination for Good Reason.

                                   ARTICLE II
                            CHANGE OF CONTROL BENEFIT

     2.1 EMPLOYMENT TERM AND CAPACITY AFTER CHANGE OF CONTROL.

          (a) If a Change of Control occurs on or before October 31, 2007, then
     the Employee's employment term (the "Employment Term") shall continue
     through the later of (i) the second anniversary of the Change of Control or
     (ii) October 31, 2007, subject to any earlier termination of Employee's
     status as an employee pursuant to this Agreement.

          (b) After a Change of Control and during the Employment Term, (i) the
     Employee's position (including status, offices, titles and reporting
     requirements), authority, duties and responsibilities shall be at least
     commensurate in all material respects with the most significant of those
     held, exercised and assigned at any time during the 120-day period
     immediately preceding the Change of Control and (ii) the Employee's service
     shall be performed at the location where the Employee was employed
     immediately preceding the Change of Control or any office or location less
     than 35 miles from such location. Employee's position, authority, duties
     and responsibilities after a Change of Control shall not be considered
     commensurate in all material respects with Employee's position, authority,
     duties and responsibilities prior to a Change of Control unless after the
     Change of Control Employee holds (x) an equivalent position in the Company
     or, (y) if the Company is controlled or will after the transaction be
     controlled by another company (directly or indirectly), an equivalent
     position in the ultimate parent company. Employee shall devote himself to
     his employment responsibilities with the Company (or, if applicable, the
     ultimate parent entity) as provided in Article I Section 3 of the
     Employment Agreement.

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     2.2 COMPENSATION AND BENEFITS. During the Employment Term, Employee shall
be entitled to the following compensation and benefits:

          (a) Salary. A salary ("Base Salary") at the highest rate provided for
     under the Employment Agreement at any time during the 120-day period
     immediately preceding the Change of Control, payable to the Employee at
     such intervals no less frequent than the most frequent intervals in effect
     at any time during the 120-day period immediately preceding the Change of
     Control or, if more favorable to the Employee, the intervals in effect at
     any time after the Change of Control for other peer employees of the
     Company and its affiliated companies.

          (b) Bonus. An annual incentive bonus (the "Bonus") equal to the
     maximum annual amount that the Employee was eligible to receive at any time
     during the 120-day period immediately preceding the Change of Control. The
     Bonus shall be paid in cash no later than 2-1/2 months following the close
     of the fiscal year for which it is earned.

          (c) Fringe Benefits. The Employee shall be entitled to fringe benefits
     (including, but not limited to, automobile allowance, reimbursement for
     membership dues, and air travel) in accordance with the most favorable
     agreements, plans, practices, programs and policies of the Company and its
     affiliated companies in effect for the Employee at any time during the
     120-day period immediately preceding the Change of Control or, if more
     favorable to the Employee, as in effect generally at any time thereafter
     with respect to other peer employees of the Company and its affiliated
     companies.

          (d) Expenses. The Employee shall be entitled to receive prompt
     reimbursement for all reasonable business expenses incurred by the Employee
     in accordance with the most favorable agreements, policies, practices and
     procedures of the Company and its affiliated companies in effect for the
     Employee at any time during the 120-day period immediately preceding the
     Change of Control or, if more favorable to the Employee, as in effect
     generally at any time thereafter with respect to other peer employees of
     the Company and its affiliated companies.

          (e) Incentive, Savings and Retirement Plans. The Employee shall be
     entitled to participate in all incentive, savings and retirement plans,
     practices, policies and programs applicable generally to other peer
     employees of the Company and its affiliated companies, but in no event
     shall such plans, practices, policies and programs provide the Employee
     with incentive opportunities (measured with respect to both regular and
     special incentive opportunities, to the extent, if any, that such
     distinction is applicable), savings opportunities and retirement benefit
     opportunities, in each case, less favorable than the most favorable of
     those provided by the Company and its affiliated companies for the Employee
     under any agreements, plans, practices, policies and programs as in effect
     at any time during the 120-day period immediately preceding the Change of
     Control or, if more favorable to the Employee, those provided generally at
     any time after the Change of Control to other peer employees of the Company
     and its affiliated companies.

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          (f) Welfare Benefit Plans. The Employee and/or the Employee's family,
     as the case may be, shall be eligible for participation in and shall
     receive all benefits under welfare benefit plans, practices, policies and
     programs provided by the Company and its affiliated companies (including,
     without limitation, medical, prescription, dental, disability, employee
     life, group life, accidental death and travel accident insurance plans and
     programs) to the extent applicable generally to other peer employees of the
     Company and its affiliated companies, but in no event shall such plans,
     practices, policies and programs provide the Employee with benefits, in
     each case, less favorable than the most favorable of any agreements, plans,
     practices, policies and programs in effect for the Employee at any time
     during the 120-day period immediately preceding the Change of Control or,
     if more favorable to the Employee, those provided generally at any time
     after the Change of Control to other peer employees of the Company and its
     affiliated companies.

          (g) Office and Support Staff. The Employee shall be entitled to an
     office or offices of a size and with furnishings and other appointments,
     and to exclusive personal secretarial and other assistance, at least equal
     to the most favorable of the foregoing provided to the Employee by the
     Company and its affiliated companies at any time during the 120-day period
     immediately preceding the Change of Control or, if more favorable to the
     Employee, as provided generally at any time thereafter with respect to
     other peer employees of the Company and its affiliated companies.

          (h) Vacation. The Employee shall be entitled to paid vacation in
     accordance with the most favorable agreements, plans, policies, programs
     and practices of the Company and its affiliated companies as in effect for
     the Employee at any time during the 120-day period immediately preceding
     the Change of Control or, if more favorable to the Employee, as in effect
     generally at any time thereafter with respect to other peer employees of
     the Company and its affiliated companies.

     2.3 TERMINATION OF EMPLOYMENT AFTER A CHANGE OF CONTROL. After a Change of
Control and during the Employment Term, the Employee's status as an employee
shall terminate or may be terminated by the Employee, the Company (or, if
applicable, the ultimate parent company), as provided in Article III of the
Employment Agreement (provided, however, that the definitions of "Cause" and
"Good Reason" in this Agreement shall supersede those definitions in the
Employment Agreement).

     2.4 OBLIGATIONS UPON TERMINATION AFTER A CHANGE OF CONTROL.

          (a) Termination by Company for Reasons other than Death, Disability or
     Cause; by Employee for Good Reason. If, after a Change of Control and
     during the Employment Term, the Company (or, if applicable the ultimate
     parent company), terminates the Employee's employment other than for Cause,
     death or Disability, or the Employee terminates employment for Good Reason,
     the Company shall pay to the Employee in a lump sum in cash on the first
     business day that is more than six months after the Date of Termination) an
     amount equal to three times the sum of (i) the amount of Base Salary in
     effect at the Date of Termination, plus (ii) the average annual bonus
     (including in the calculation of such average any Bonus referred to in
     Section 2.2(b)

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     hereof, if applicable) earned by the Employee during the three most
     recently completed fiscal years prior to the Date of Termination or, if the
     Employee has been employed by the Company for less than three years, the
     number of years during such period that the Employee was employed by the
     Company and eligible to receive a bonus.

          (b) Death. If, after a Change of Control and during the Employment
     Term, the Employee's status as an employee is terminated by reason of the
     Employee's death, this Agreement shall terminate without further obligation
     to the Employee's legal representatives (other than those already accrued
     to the Employee), other than the obligation to make any payments due
     pursuant to employee benefit plans maintained by the Company or its
     affiliated companies.

          (c) Disability. If, after a Change of Control and during the
     Employment Term, Employee's status as an employee is terminated by reason
     of Employee's Disability (as defined in the Employment Agreement), this
     Agreement shall terminate without further obligation to the Employee (other
     than those already accrued to the Employee), other than the obligation to
     make any payments due pursuant to employee benefit plans maintained by the
     Company or its affiliated companies.

          (d) Cause. If, after a Change of Control and during the Employment
     Term, the Employee's status as an employee is terminated by the Company
     (or, if applicable, the ultimate parent entity) for Cause, this Agreement
     shall terminate without further obligation to the Employee other than for
     obligations imposed by law and obligations imposed pursuant to any employee
     benefit plan maintained by the Company or its affiliated companies.

          (e) Termination by Employee for Reasons other than Good Reason. If,
     after a Change of Control and during the Employment Term, the Employee's
     status as an employee is terminated by the Employee for reasons other than
     Good Reason, then the Company shall pay to the Employee an amount equal to
     a single year's Base Salary in effect at the Date of Termination, payable
     over a two-year period as follows: beginning on the first regular payroll
     date that is at least six months after the Date of Termination, at which
     time the Employee shall be paid one-fourth of a single year's Base Salary
     and the remaining three-fourths shall be paid in equal installments on the
     Company's regular bi-weekly payroll dates over the following 18 months.

          (f) Nondisclosure, Noncompetition and Proprietary Rights. The rights
     and obligations of the Company and Employee contained in Article V
     ("Nondisclosure, Noncompetition and Proprietary Rights") of the Employment
     Agreement shall continue to apply after a Change of Control, except as
     provided in Section 2.11 of this Agreement.

     2.5 ACCRUED OBLIGATIONS AND OTHER BENEFITS. It is the intent of the
Employment Agreement and this Agreement that upon termination of employment for
any reason the Employee be entitled to receive promptly, and in addition to any
other benefits specifically provided, (a) the Employee's Base Salary through the
Date of Termination to the extent not theretofore paid, (b) any accrued vacation
pay, to the extent not theretofore paid, and (c) any other amounts or benefits
required to be paid or provided or which the Employee is entitled to

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receive under any plan, program, policy practice or agreement of the Company,
subject to any requirement under Section 409A of the Internal Revenue Code of
1986, as amended (the "Code"), that such payment of benefits be delayed for six
months following termination of employment.

     2.6 NO ACCELERATION OF PAYMENTS. No acceleration of payments and benefits
provided herein shall be permitted, except that the Company may accelerate
payment, if permitted under the regulations under Section 409A of the Code, as
necessary to allow the Employee to pay FICA taxes on amounts payable hereunder
and additional taxes resulting from the payment of such FICA amount or as
necessary to pay taxes and penalties arising as a result of the payments
provided for in this Agreement failing to meet the requirements of Section 409A
of the Code.

     2.7 STOCK OPTIONS. The foregoing benefits are intended to be in addition to
the value of any options to acquire Common Stock of the Company the
exercisability of which is accelerated pursuant to the terms of any stock
option, incentive or other similar plan heretofore or hereafter adopted by the
Company.

     2.8 PROTECTION OF BENEFITS. To the extent permitted by applicable law, the
Company shall take all reasonable steps to ensure that the Employee is not, by
reason of a Change of Control, deprived of the economic value (including any
value attributable to the Change of Control transaction) of (a) any options to
acquire Common Stock of the Company or (b) any Common Stock of the Company
beneficially owned by the Employee.

     2.9 CERTAIN ADDITIONAL PAYMENTS. If after a Change of Control Employee is
subjected to an excise tax as a result of the "excess parachute payment"
provisions of Section 4999 of the Internal Revenue Code of 1986, as amended,
whether by virtue of the benefits of this Agreement or by virtue of any other
benefits provided to Employee in connection with a Change of Control pursuant to
Company plans, policies or agreements (including the value of any options to
acquire Common Stock of the Company the exercisability of which is accelerated
pursuant to the terms of any stock option, incentive or similar plan heretofore
or hereafter adopted by the Company), the Company shall pay to Employee such
amounts as are necessary to place Employee in the same position after payment of
federal income and excise taxes as he would have been if such provisions had not
been applicable to him. If Employee is subjected to an excise tax as a result of
an "excess parachute payment" in connection with a Change of Control, such
payment shall only be made at the time of the Change of Control, if the Change
of Control constitutes a change in ownership or effective control of the Company
or a change in the ownership of a substantial portion of the Company's assets,
as such terms are defined in the regulations and guidance issued under Section
409A of the Code (a "409A Change of Control"). If the Change of Control does not
constitute a 409A Change of Control, the payment shall instead be made to
Employee 30 days following termination of his employment for any reason, plus
interest at the rate per annum equal to the Company's weighted average cost of
capital, as determined by the Company's Treasury Department and certified by the
Chief Financial Officer, from the date of payment of the excise tax by the
Employee through the date of payment by the Company under this Section 2.9.

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     2.10 LEGAL FEES. The Company agrees to pay as incurred, to the full extent
permitted by law, all legal fees and expenses which the Employee may reasonably
incur as a result of any contest (regardless of the outcome thereof) by the
Company, the Employee or others of the validity or enforceability of, or
liability under, any provision of this Agreement (including as a result of any
contest by the Employee about the amount or timing of any payment pursuant to
this Agreement.)

     2.11 SET-OFF; MITIGATION. After a Change of Control, the Company's and its
affiliates' obligations to make the payments provided for in this Agreement and
otherwise to perform its obligations hereunder shall not be affected by any
set-off, counterclaim, recoupment, defense or other claim, right or action which
the Company or its affiliates may have against the Employee or others. After a
Change of Control, an asserted violation of the provisions of Article V
("Nondisclosure, Noncompetition and Proprietary Rights") of the Employment
Agreement shall not constitute a basis for deferring or withholding any amounts
otherwise payable to the Employee; specifically, the third through sixth
sentences of Article V Section 4 shall not apply after a Change of Control. It
is the intent of the Employment Agreement and this Agreement that in no event
shall the Employee be obligated to seek other employment or take any other
action by way of mitigation of the amounts payable to the Employee under any of
the provisions of this Agreement or the Employment Agreement.

                                  ARTICLE III
                                 MISCELLANEOUS

     3.1 BINDING EFFECT; SUCCESSORS.

          (a) This Agreement shall be binding upon and inure to the benefit of
     the Company and any of its successors or assigns.

          (b) This Agreement is personal to the Employee and shall not be
     assignable by the Employee without the consent of the Company (there being
     no obligation to give such consent) other than such rights or benefits as
     are transferred by will or the laws of descent and distribution.

          (c) The Company shall require any successor to or assignee of (whether
     direct or indirect, by purchase, merger, consolidation or otherwise) all or
     substantially all of the assets or businesses of the Company (i) to assume
     unconditionally and expressly this Agreement and (ii) to agree to perform
     or to cause to be performed all of the obligations under this Agreement in
     the same manner and to the same extent as would have been required of the
     Company had no assignment or succession occurred, such assumption to be set
     forth in a writing reasonably satisfactory to the Employee.

          (d) The Company shall also require all entities that control or that
     after the transaction will control (directly or indirectly) the Company or
     any such successor or assignee to agree to cause to be performed all of the
     obligations under this Agreement, such agreement to be set forth in a
     writing reasonably satisfactory to the Employee.

     3.2 NOTICES. All notices hereunder must be in writing and shall be deemed
to have given upon receipt of delivery by: (a) hand (against a receipt
therefor), (b) certified or registered

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mail, postage prepaid, return receipt requested, (c) a nationally recognized
overnight courier service (against a receipt therefor) or (d) telecopy
transmission with confirmation of receipt. All such notices must be addressed as
follows:

     If to the Company, to:

     Stewart Enterprises, Inc.
     1333 South Clearview Parkway
     Jefferson, LA 70121
     Attn: Chairman of the Board

     If to the Employee, to:

     Thomas M. Kitchen
     229 East William David
     Metairie, LA 70005

or such other address as to which any party hereto may have notified the other
in writing.

     3.3 GOVERNING LAW. This Agreement shall be construed and enforced in
accordance with and governed by the internal laws of the State of Louisiana
without regard to principles of conflict of laws, except as expressly provided
in Article V Section 6 of the Employment Agreement with respect to the
resolution of disputes arising under, or the Company's enforcement of, such
Article V.

     3.4 WITHHOLDING. The Employee agrees that the Company has the right to
withhold, from the amounts payable pursuant to this Agreement, all amounts
required to be withheld under applicable income and/or employment tax laws, or
as otherwise stated in documents granting rights that are affected by this
Agreement.

     3.5 AMENDMENT, WAIVER. No provision of this Agreement may be modified,
amended or waived except by an instrument in writing signed by both parties.

     3.6 SEVERABILITY. If any term or provision of this Agreement, or the
application thereof to any person or circumstance, shall at any time or to any
extent be invalid, illegal or unenforceable in any respect as written, Employee
and the Company intend for any court construing this Agreement to modify or
limit such provision so as to render it valid and enforceable to the fullest
extent allowed by law. Any such provision that is not susceptible of such
reformation shall be ignored so as to not affect any other term or provision
hereof, and the remainder of this Agreement, or the application of such term or
provision to persons or circumstances other than those as to which it is held
invalid, illegal or unenforceable, shall not be affected thereby and each term
and provision of this Agreement shall be valid and enforced to the fullest
extent permitted by law.

     3.7 WAIVER OF BREACH. The waiver by either party of a breach of any
provision of this Agreement shall not operate or be construed as a waiver of any
subsequent breach thereof.

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     3.8 REMEDIES NOT EXCLUSIVE. No remedy specified herein shall be deemed to
be such party's exclusive remedy, and accordingly, in addition to all of the
rights and remedies provided for in this Agreement, the parties shall have all
other rights and remedies provided to them by applicable law, rule or
regulation.

     3.9 COMPANY'S RESERVATION OF RIGHTS. Employee acknowledges and understands
that the Employee serves at the pleasure of the Board and that the Company has
the right at any time to terminate Employee's status as an employee of the
Company, or to change or diminish his status during the Employment Term, subject
to the rights of the Employee to claim the benefits conferred by this Agreement.

     3.10 PRIOR CHANGE OF CONTROL AGREEMENT. Effective as of the Change of
Control Agreement Date, this Agreement supersedes any prior change of control
agreement between the Employee and the Company.

     3.11 COUNTERPARTS. This Agreement may be executed in one or more
counterparts, each of which shall be deemed to be an original but all of which
together shall constitute one and the same instrument.

     3.12 SECTION 409A OF THE INTERNAL REVENUE CODE. In the event that any of
the compensation or benefits payable to the Employee hereunder are considered to
be non-qualified deferred compensation under Section 409A of the Code ("Section
409A") and any regulations issued or to be issued by the Department of the
Treasury thereunder, the Company and the Employee shall negotiate in good faith
and agree to such amendments to this Agreement as they and their respective tax
counsel deem necessary to avoid the imposition of additional taxes and penalties
under Section 409A or such regulations, while preserving the economic benefits
intended to be conferred on the Employee by this Agreement.

     IN WITNESS WHEREOF, the Company and the Employee have caused this Amended
and Restated Agreement to be executed on the dates set forth below and effective
as of the Amendment Date.

                                        STEWART ENTERPRISES, INC.

Dated: November 8, 2006                 By: /s/ JAMES W. MCFARLAND
                                            ------------------------------------
                                            James W. McFarland
                                            Compensation Committee Chairman

                                        EMPLOYEE:

Dated: November 8, 2006                 /s/ THOMAS M. KITCHEN
                                        ----------------------------------------
                                        Thomas M. Kitchen

                                      -11-<PAGE>

                                                                    Exhibit 10.3

                              AMENDED AND RESTATED
                         2003 STEWART ENTERPRISES, INC.
                          EMPLOYEE STOCK PURCHASE PLAN

     WHEREAS, Stewart Enterprises, Inc. (the "Company") desires to amend and
restate the 2003 Employee Stock Purchase Plan (as amended and restated the
"Plan"), which provides an opportunity for employees of the Company and certain
of its subsidiaries to purchase common stock of the Company on a regular basis;

     NOW, THEREFORE, the terms of the Plan shall be as follows:

     1. PURPOSE.

     The purpose of this Employee Stock Purchase Plan is to give eligible
employees of the Company and its Subsidiaries an opportunity to acquire shares
of its Common Stock, and to continue to promote its best interests and enhance
its long-term performance.

     2. DEFINITIONS.

     Wherever used herein, the following words and phrases shall have the
meanings stated below unless a different meaning is plainly required by the
context:

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

          (b) "Broker" means the brokerage firm designated by the Company to
     hold shares of Common Stock purchased by Participants through the Plan and
     to handle sales of shares of Common Stock for Participants.

          (c) "Broker Account" means the account established with the Broker for
     each Participant.

          (d) "Code" means the Internal Revenue Code of 1986, as amended.

          (e) "Common Stock" means shares of the Class A common stock of the
     Company.

          (f) "Company" means Stewart Enterprises, Inc., a Louisiana
     corporation.

          (g) "Compensation" means the Eligible Employee's earnings per pay
     period that are required to be reported in the Wages, Tips and Other
     Compensation box of Form W-2. Compensation includes bonuses, commissions,
     overtime pay and other extra compensation, unless the Eligible Employee
     notifies the Human Resources Department at least five business days in
     advance that a particular bonus shall not be included as Compensation.
     Compensation includes compensation excluded from taxable income in
     connection with a Section 125 cafeteria plan, a Section 401(k) cash or
     deferred arrangement, or other elective deferral. Compensation excludes
     compensation from restricted stock and from the exercise of stock options.

<PAGE>

          (h) "Deposit Account" means the account maintained by the Company for
     each Participant to which payroll deductions are credited, as provided
     herein.

          (i) "Effective Date" means the day following the date the Plan is
     approved by the Board of the Company in accordance with applicable law and
     the Company's articles of incorporation, or such later date following Board
     approval as the Plan Administrator shall determine.

          (j) "Eligible Employee" means, except as otherwise provided below,
     each person who is employed by the Company or a Subsidiary on a regular
     full-time or part-time basis. The term "Eligible Employee" does not include
     highly compensated (within the meaning of Section 414(q) of the Code)
     officers of the Company or a Subsidiary who are subject to Section 16 of
     the Securities Exchange Act of 1934. The Board of Directors may determine
     that the employees of one or more Subsidiaries will not be eligible to
     participate in the Plan.

          (k) "Exercise Date" means the day before the next Quarterly Grant
     Date.

          (l) "Fair Market Value per share of Common Stock as of the applicable
     Exercise Date" shall mean:

               (i) If the Common Stock is listed on a national securities
          exchange or traded in the over-the-counter market and sales prices are
          regularly reported for the Common Stock, the average of the high and
          low prices of the Common Stock on the Composite Tape or other
          comparable reporting system on the Exercise Date or in the event that
          the Common Stock is not traded on such date, on the immediately
          preceding trading date;

               (ii) If the Common Stock is not traded on a national securities
          exchange but is traded on the over-the-counter market, if sales prices
          are not regularly reported for the Common Stock and if bid and asked
          prices for the Common Stock are regularly reported, the average of the
          bid and asked price for the Common Stock on the Exercise Date or in
          the event that bid and asked prices are not reported on such date, on
          the immediately preceding date on which they are reported; and

               (iii) If the Common Stock is neither listed on a national
          securities exchange nor traded on the over-the-counter market, such
          value as the Plan Administrator, in good faith, shall determine.

          Notwithstanding any provision of the Plan to the contrary, no
          determination made with respect to the Fair Market Value of Common
          Stock subject to an Option shall be inconsistent with Section 423 of
          the Code or regulations thereunder.

          (m) "Option" means an option granted hereunder which will entitle an
     Eligible Employee to purchase shares of Common Stock.

                                      -2-

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          (n) "Option Price" means 85% of the Fair Market Value per share of
     Common Stock as of the applicable Exercise Date.

          (o) "Participant" means an Eligible Employee who files the required
     participation forms with the Company.

          (p) "Plan" means the 2003 Stewart Enterprises, Inc. Amended and
     Restated Employee Stock Purchase Plan as set forth herein.

          (q) "Plan Administrator" means an individual or committee to which the
     Board delegates its powers with respect to administration of the Plan
     pursuant to Section 3 hereof.

          (r) "Quarterly Grant Date" means each January 1, April 1, July 1,
     October 1 and with respect to an Eligible Employee who becomes a
     Participant between such dates, the date on which participation commences.

          (s) "Subsidiary" or "Subsidiaries" means a corporation or corporations
     of which stock possessing at least 80% of the total combined voting power
     of all classes of stock entitled to vote is owned by the Company or by any
     other Subsidiary or Subsidiaries. "Subsidiary" or "Subsidiaries" also
     includes corporations acquired by the Company after adoption of the Plan.

     3. ADMINISTRATION.

     The Plan shall be administered by a Plan Administrator as designated by the
Board with respect to the administration of the Plan (except its powers under
Section 18(c) of the Plan). Subject to the express provisions of the Plan, the
Plan Administrator may interpret the Plan hereunder and make all other
determinations necessary or advisable for the administration of the Plan. The
determinations of the Plan Administrator on all matters regarding the Plan shall
be conclusive.

     4. MAXIMUM LIMITATIONS.

     The aggregate number of shares of Common Stock available for grant as
Options pursuant to Section 5 shall not exceed 1,000,000 subject to adjustment
pursuant to Section 13 hereof. Shares of Common Stock granted pursuant to the
Plan may be either authorized but unissued shares, shares now or hereafter held
in the treasury of the Company or shares acquired on the open market. In the
event that any Option granted pursuant to Section 5 expires or is terminated,
surrendered or cancelled without being exercised, in whole or in part, for any
reason, the number of shares of Common Stock theretofore subject to such Option
shall again be available for grant as an Option pursuant to Section 5 and shall
not reduce the aggregate number of shares of Common Stock available for grant as
such Options as set forth in the first sentence of this Section.

                                      -3-

<PAGE>

     5. BASIS OF PARTICIPATION AND GRANTING OF OPTIONS.

          (a) Each Eligible Employee on a Quarterly Grant Date and, subject to
     earlier termination of the Plan pursuant to Section 18(c) hereof, ending
     with the last Quarterly Grant Date on which shares of Common Stock are
     available for grant within the limitation set forth in Section 4, is
     granted an Option hereunder which will entitle him or her to purchase, at
     the Option Price per share applicable to such Quarterly Grant Date, that
     number of whole and fractional shares of Common Stock that may be purchased
     with up to 10% of the Eligible Employee's Compensation divided by such
     applicable Option Price per share of Common Stock.

          (b) If the number of shares of Common Stock for which Options are
     granted pursuant to this Section 5 exceeds the applicable number set forth
     in Section 4, then the Options granted under the applicable paragraph to
     all Eligible Employees shall, in a nondiscriminatory manner which shall be
     consistent with Section 15(d) of the Plan, be reduced in proportion to
     their respective compensation.

     6. COMMENCEMENT OF PARTICIPATION.

          (a) An Eligible Employee may become a Participant by completing and
     filing with the Human Resources Department of the Company (i) an enrollment
     form, and (ii) such forms as are requested by the Broker for the opening of
     the Eligible Employee' s account with the Broker. Payroll deductions shall
     begin as soon as administratively feasible after the required forms have
     been received by the Human Resources Department.

          (b) At the time an Eligible Employee completes an enrollment form, the
     Eligible Employee shall elect to purchase Common Stock with up to 10% of
     the employee's Compensation, in whole percentages, for the applicable
     period for which the Option is in effect. An enrollment form will remain in
     effect until cancelled by the Participant.

     7. PARTICIPANT'S DEPOSIT ACCOUNT/PAYROLL DEDUCTIONS.

     All payroll deductions made for a Participant shall be credited to the
Participant's Deposit Account. No interest will be paid to any Participant or
credited to his or her Deposit Account under the Plan with respect to such
funds. All amounts credited to a Participant's Deposit Account shall be used to
purchase Common Stock under Section 10 and, except as provided in Section 16, no
portion of an Eligible Employee's Deposit Account shall be refunded to him or
her.

     8. CHANGES IN PAYROLL DEDUCTIONS.

     A Participant may discontinue participation in the Plan for a particular
Quarterly Grant Date, as provided in Section 16, but a Participant may not alter
the amount of his or her election for that particular Quarterly Grant Date.

                                      -4-

<PAGE>

     9. TERMS OF OPTIONS.

          (a) Each Option shall, unless sooner expired pursuant to Section 9(b),
     become exercisable on the applicable Exercise Date. Each Option not
     exercised on such Exercise Date shall expire at the end of such Exercise
     Date.

          (b) An Option shall expire on the first to occur of the end of the
     applicable Exercise Date or the date that the employment of the Eligible
     Employee with the Company and its Subsidiaries terminates (as determined by
     the Plan Administrator) for any reason other than death.

          (c) If the employment of a Participant with the Company and its
     Subsidiaries terminates by reason of death, his Option shall expire at the
     end of the applicable Exercise Date.

     10. MANNER OF EXERCISE OF OPTIONS AND PAYMENT FOR COMMON STOCK.

     Unless a Participant gives written notice to the Company as hereinafter
provided in Section 18(i) no later than five business days prior to the Exercise
Date, his or her Option for a specific Quarterly Grant Date will be deemed to
have been exercised automatically on the first subsequent Exercise Date, for the
purchase of the number of full shares and fractional share interests that the
accumulated payroll deductions in his or her Deposit Account at that time will
purchase at the Option Price (but not in excess of the number of shares for
which Options have been granted to the employee pursuant to Section 5).

     11. PARTICIPANT'S ACCOUNT WITH BROKER.

          (a) The Broker shall open and maintain a separate account for each
     Participant. Except where otherwise prohibited, a Participant may also use
     the account for other purchases of Common Stock or other personal
     transactions. A termination by a Participant of participation in the Plan
     will not also terminate the individual's account with the Broker.

          (b) Shares of Common Stock purchased by the Broker through the Plan
     shall be allocated to the individual accounts established for Participants
     in proportion to the respective amounts received for each Participant's
     account. Allocations are made in whole shares and in fractional share
     interests.

          (c) At the time of purchase, each Participant immediately acquires
     full ownership of all whole shares and fractional share interests purchased
     by the Broker for his or her account. All shares are registered in the name
     of the Broker, and remain so registered until delivery or sale is requested
     by the Participant. A Participant may not require delivery of a certificate
     for a fractional interest in a share. However, the Participant may instruct
     the Broker to sell the fractional interest, and remit the proceeds to him
     or her. The shares once allocated to the Participants' accounts become the
     sole property of the respective Participants. The Plan does not restrict
     the ability of a Participant to sell, assign, hypothecate or otherwise deal
     with shares of the Common Stock acquired under the Plan. However, the
     Participant may not sell, assign, hypothecate

                                      -5-

<PAGE>

     or otherwise deal with his or her interest in the Plan as such. No person
     has or may create a lien in the Plan or under the Plan on any of such
     shares of Common Stock.

          (d) The Participant may instruct the Broker at any time to deliver to
     him or her a certificate for any or all of his or her whole shares of
     Common Stock, without affecting his or her continuing participation in the
     Plan. The Participant shall pay any charge therefor.

          (e) A Participant may instruct the Broker at any time to sell any or
     all of his or her whole shares of Common Stock and fractional share
     interest allocable to his or her account, without affecting his or her
     continuing participation in the Plan. The Participant shall pay all charges
     therefor, including but not limited to brokerage commissions.

          (f) Cash dividends and other cash distributions on shares of Common
     Stock held in the custody of the Broker are credited to the account of the
     Participant, and the Participant may, at his own expense, take a
     distribution of such dividend or distribution or request the Broker to
     purchase additional shares of Common Stock on the open market. Any
     dividends paid in Common Stock or any splits of the Common Stock on shares
     held in custody will be allocated to each Participant in accordance with
     his or her interest in the shares on which the dividends are paid, or with
     respect to which the stock split occurs. Any other securities or
     subscription rights distributed on shares of Common Stock may be retained
     or sold by the Participant, and, in the event of such sale the Participant
     shall pay all charges therefor, including but not limited to brokerage
     commissions.

          (g) Each Participant shall receive from the Broker quarterly
     statements of account that itemize the transactions from his or her
     account, and shall also receive confirmations of current transactions as
     required by regulatory authorities.

          (h) The Broker shall deliver to each participant as promptly as
     practicable, by mail or otherwise, all notices of meetings, proxy
     statements and other material distributed by the Company to its
     shareholders. The whole shares of Common Stock in each Participant's
     account will be voted in accordance with the Participant's signed proxy
     instructions duly delivered to the Broker, or otherwise in accordance with
     applicable stock exchange rules.

     12. TRANSFERABILITY.

     No Option may be transferred, assigned, pledged, or hypothecated (whether
by operation of law or otherwise), except as provided by will or the applicable
laws of descent or distribution, and no Option shall be subject to execution,
attachment or similar process. Any attempted assignment, transfer, pledge,
hypothecation or other disposition of an Option, or levy of attachment or
similar process upon the Option not specifically permitted herein shall be null
and void and without effect. An Option may be exercised only by the Eligible
Employee during his or her lifetime, or pursuant to Section 9(c), by his or her
estate or the person who acquires the right to exercise such Option upon his or
her death by bequest or inheritance.

                                      -6-

<PAGE>

     13. ADJUSTMENT PROVISIONS.

     The aggregate number of shares of Common Stock with respect to which
Options may be granted, the aggregate number of shares of Common Stock subject
to each outstanding Option, and the Option Price per share of each Option may
all be appropriately adjusted as the Plan Administrator may determine for any
increase or decrease in the number of shares of issued Common Stock resulting
from a subdivision or consolidation of shares, whether through reorganization,
recapitalization, stock split, stock distribution or combination of shares, or
the payment of a share dividend or other increase or decrease in the number of
such shares outstanding effected without receipt of consideration by the
Company. Adjustments under this Section 13 shall be made according to the sole
discretion of the Plan Administrator, and its decision shall be binding and
conclusive.

     14. DISSOLUTION, MERGER AND CONSOLIDATION.

     Upon the dissolution or liquidation of the Company, or upon a merger or
consolidation of the Company in which the Company is not the surviving
corporation, each Option granted hereunder shall expire as of the effective date
of such transaction and all amounts contributed to a Participant's Deposit
Account since the last Exercise Date shall be returned.

     15. LIMITATIONS ON OPTIONS.

     Notwithstanding any other provisions of the Plan:

          (a) The Company intends that Options granted and Common Stock issued
     under the Plan shall be treated for all purposes as granted and issued
     under an employee stock purchase plan within the meaning of Section 423 of
     the Code and regulations issued thereunder. Any provisions required to be
     included in the Plan under said Section and regulations issued thereunder
     are hereby included as fully as though set forth in the Plan at length.

          (b) No Eligible Employee shall be granted an Option under the Plan if,
     immediately after the Option was granted, the Eligible Employee would own
     stock possessing 5% or more of the total combined voting power or value of
     all classes of stock of the Company or of any parent or Subsidiary of the
     Company. For purposes of this Section 15(b), stock ownership of an
     individual shall be determined under the rules of Section 424(d) of the
     Code and stock which the Eligible Employee may purchase under outstanding
     options shall be treated as stock owned by the Eligible Employee.

          (c) No Eligible Employee shall be granted an Option under the Plan
     which permits his or her rights to purchase stock under all employee stock
     purchase plans (as defined in Section 423 of the Code) of the Company and
     any parent or Subsidiary of the Company to accrue at a rate which exceeds
     $25,000 of fair market value of such stock (determined on the Exercise Date
     of such Option, which is deemed to be the grant date for federal income tax
     purposes) for each calendar year in which such Option is outstanding at any
     time. Any Option granted under the Plan shall be deemed to be modified to
     the extent necessary to satisfy this paragraph (c).

                                      -7-

<PAGE>

          (d) All Eligible Employees shall have the same rights and privileges
     under the Plan, except that the amount of Common Stock which may be
     purchased under Options granted on any Quarterly Grant Date, shall bear a
     uniform relationship to the compensation of Eligible Employees. All rules
     and determinations of the Plan Administrator in the administration of the
     Plan shall be uniformly and consistently applied to all persons in similar
     circumstances.

     16. WITHDRAWAL OF ACCOUNT.

          (a) By written notice to the Human Resources Department of the
     Company, at any time prior to and up to five (5) business days before the
     applicable Exercise Date with regards to a particular Quarterly Grant Date,
     an employee may elect to withdraw all the accumulated payroll deductions in
     his Deposit Account without interest at such time, and no further payroll
     deductions will be made from the employee's pay for that Grant Date.

          (b) An employee's withdrawal election for any Quarterly Grant Date
     will not have any effect upon the employee's eligibility to participate in
     any succeeding Quarterly Grant Date or in any similar plan which may
     hereafter be adopted by the Company. Notwithstanding the foregoing, a
     former Participant may only resume participation by filing the required
     participation forms with the Company.

     17. INSIDER TRADING.

     The operation of the Plan shall at all times comply with the Company's
Trading of Company Securities and Non-Public Information (Insider Trading)
Policy.

     18. MISCELLANEOUS.

          (a) Legal and Other Requirements. The obligations of the Company to
     sell and deliver Common Stock under the Plan shall be subject to all
     applicable laws, regulations, rules and approvals, including, but not by
     way of limitation, the effectiveness of a registration statement under the
     Securities Act of 1933 if deemed necessary or appropriate by the Company.
     Certificates for shares of Common Stock issued hereunder may be legended as
     the Board shall deem appropriate.

          (b) No Obligation To Exercise Option. The granting of an Option shall
     impose no obligation upon an optionee to participate in the Plan or to
     exercise such Option.

          (c) Termination and Amendment of Plan. The Board, without further
     action on the part of the shareholders of the Company, may from time to
     time alter, amend or suspend the Plan or any Option granted hereunder or
     may at any time terminate the Plan, except that it may not (except to the
     extent provided in Section 13 hereof): (i) increase the total number of
     shares of Common Stock available for grant under the Plan; (ii) effect a
     change for which shareholder approval is required under Section 423 of the
     Code or the regulations issued thereunder; or (iii) effect a change
     inconsistent with Section 423 of the Code or regulations issued thereunder.
     No action taken by the Board under this Section

                                      -8-

<PAGE>

     may materially and adversely affect any outstanding Option without the
     consent of the holder thereof.

          (d) Application of Funds. The proceeds received by the Company from
     the sale of Common Stock pursuant to Options will be used for general
     corporate purposes.

          (e) Withholding Taxes. Upon the exercise of any Option under the Plan,
     the Company shall have the right to require the optionee to remit to the
     Company an amount sufficient to satisfy all federal, state and local
     withholding tax requirements prior to the delivery of any certificate or
     certificates for shares of Common Stock. If a Participant makes a
     disqualifying disposition of shares acquired through exercise of the
     employee's options under this Plan within two years after the date of grant
     of such option, or within one year after the date of exercise of such
     option, the Participant shall promptly notify the Company and the Company
     shall have the right to require the Participant to pay to the Company any
     amounts sufficient to satisfy any federal, state and local tax withholding
     requirements.

          (f) Right to Terminate Employment. Nothing in the Plan or any
     agreement entered into pursuant to the Plan shall confer upon any Eligible
     Employee or other optionee the right to continue in the employment of the
     Company or any Subsidiary or affect any right which the Company or any
     Subsidiary may have to terminate the employment of such Eligible Employee
     or other optionee.

          (g) Rights as a Shareholder. No optionee shall have any right as a
     shareholder with respect to shares of Common Stock unless and until an
     Option with respect to such shares has been exercised and certificates for
     such shares of Common Stock purchased by the Optionee are issued to the
     Broker.

          (h) Leaves of Absence and Disability. The Plan Administrator shall be
     entitled to make such rules, regulations and determinations as it deems
     appropriate under the Plan in respect to any leave of absence taken by or
     disability of any Eligible Employee. Without limiting the generality of the
     foregoing, the Plan Administrator shall be entitled to determine (i)
     whether or not any such leave of absence shall constitute a termination of
     employment within the meaning of the Plan, and (ii) the impact, if any, of
     any such leave of absence on Options under the Plan theretofore granted to
     any Eligible Employee who takes such leave of absence.

          (i) Notices. Every direction, revocation or notice authorized or
     required by the Plan shall be deemed delivered to the Company (i) on the
     date it is personally delivered to the Plan Administrator at the Company's
     principal executive offices or (ii) three business days after it is sent by
     registered or certified mail, postage prepaid, addressed to the Plan
     Administrator at such offices; and shall be deemed delivered to an optionee
     (A) on the date it is personally delivered to him or her or (B) three
     business days after it is sent by registered or certified mail, postage
     prepaid, addressed to him or her at the last address shown for him or her
     on the records of the Company or of any Subsidiary.

                                      -9-

<PAGE>

          (j) Applicable Law. All questions pertaining to the validity,
     construction and administration of the Plan and Options granted hereunder
     shall be determined in conformity with the laws of the State of Louisiana,
     to the extent not inconsistent with Section 423 of the Code and regulations
     thereunder and by the laws of the United States.

     Amended and Restated by the Board of Directors of Stewart Enterprises, Inc.
on September 20, 2006.

                                      -10-

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