Document:

exv10w1

 

Exhibit 10.1

INDEMNIFICATION AGREEMENT

     THIS INDEMNIFICATION AGREEMENT (this “Agreement”) is made and entered into
as of                , 2004, by and between Service Corporation International, a
Texas corporation (the “Company”), and                (the “Indemnitee”).

BACKGROUND

     The Indemnitee is an officer and/or director of the Company. It is
essential to the Company that it retain and attract as officers and/or
directors the most capable persons available. Both the Company and the
Indemnitee recognize the increased risk of litigation and other claims being
asserted against officers and/or directors of companies in today’s environment.

     The Texas Business Corporation Act, as amended (the “Texas Statute”),
expressly recognizes that the indemnification provisions of the Texas Statute
are not exclusive of any other rights to which a person seeking indemnification
may be entitled under a resolution of the directors, an agreement or as
permitted or required by common law. This Agreement is being entered into as
permitted by the Texas Statute and as authorized by the board of directors of
the Company (the “Board of Directors”).

     In recognition of the Indemnitee’s need for substantial protection against
personal liability, in order to enhance the Indemnitee’s continued service to
the Company in an effective manner, and in part to provide the Indemnitee with
specific contractual assurance that the protection of the Texas Statute, the
Company’s articles of incorporation and bylaws and this Agreement will be
available to the Indemnitee (regardless of, among other things, any amendment
to or revocation of such provisions or any change in the composition of the
Board of Directors or any acquisition or business combination transaction
relating to the Company), the Company wishes to provide in this Agreement for
the indemnification of, and the advancement of expenses to, the Indemnitee as
set forth in this Agreement.

     NOW, THEREFORE, in consideration of the premises, the mutual covenants and
agreements contained herein and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:

     1. Indemnification.

        (a) In accordance with the provisions of Section 1(b), the Company shall
hold harmless and indemnify the Indemnitee against any and all expenses,
liabilities and losses (including, without limitation, investigation expenses
and expert witnesses’ and attorneys’ fees and expenses, judgments, penalties,
fines, excise taxes under the Employee Retirement Income Security Act of 1974,
as amended, and amounts paid or to be paid in settlement) actually incurred by
the Indemnitee (net of any related insurance proceeds or other amounts received
by the Indemnitee or paid by or on behalf of the Company on the Indemnitee’s
behalf), in connection with any action, suit, arbitration or proceeding (or any
inquiry or investigation, whether brought by or in the right of the Company or
otherwise, that the Indemnitee in good faith believes might lead to the
institution of any such action, suit, arbitration or proceeding), whether
civil, criminal, administrative or investigative, or any appeal therefrom, in
which the

 

 

Indemnitee is a party, is threatened to be made a party, is a witness or
is participating (each, a “Proceeding”) based upon, arising from, relating to
or by reason of the fact that Indemnitee is, was, shall be or shall have been
an officer and/or director of the Company or is or was serving, shall serve, or
shall have served at the request of the Company as an officer and/or director
(an “Affiliate Indemnitee”) of another foreign or domestic corporation or
nonprofit corporation, cooperative, partnership, limited liability company,
joint venture, trust or other incorporated or unincorporated enterprise.

        (b) In providing the foregoing indemnification, the Company shall, with
respect to a Proceeding, hold harmless and indemnify the Indemnitee to the
fullest extent permitted by the Texas Statute or by any amendment thereof or
other statutory provisions expressly permitting such indemnification which is
adopted after the date hereof (but, in the case of any such amendment, only to
the extent that such amendment permits the Company to provide broader
indemnification rights than said law required or permitted the Company to
provide prior to such amendment).

        (c) Without limiting the generality of the foregoing, the Indemnitee shall
be entitled to the rights of indemnification provided in this Section 1 for any
expenses actually incurred in any Proceeding initiated by or in the right of
the Company, provided that in the event that the Indemnitee shall have been
adjudged in a final, nonappealable judgment or other final adjudication to be
liable to the Company or shall have been adjudged liable on the basis that
personal benefit was improperly received by the Indemnitee, indemnification (i)
shall be limited to reasonable expenses actually incurred by the Indemnitee in
connection with the Proceeding, and (ii) shall not be made in respect of any
Proceeding in which the Indemnitee shall have been found liable for willful or
intentional misconduct in the performance of his duty to the Company.

        (d) If the Indemnitee is entitled under this Agreement to indemnification
by the Company for some or a portion of the Indemnified Amounts (as hereinafter
defined) but not, however, for all of the total amount thereof, the Company
shall nevertheless indemnify the Indemnitee for the portion thereof to which
the Indemnitee is entitled.

        (e) The Company will indemnify the Indemnitee’s spouse to whom the
Indemnitee is legally married at any time the Indemnitee is covered under the
indemnification provided in this Agreement (even if the Indemnitee did not
remain married to him or her during the entire period of coverage) in any
Proceeding, to the same extent and subject to the same standards, limitations,
obligations and conditions under which the Indemnitee is provided
indemnification herein, if the Indemnitee’s spouse (or former spouse) becomes
involved in a Proceeding solely by reason of his or her status as the
Indemnitee’s spouse, including, without limitation, any Proceeding that seeks
damages recoverable from marital community property, jointly-owned property or
property purported to have been transferred from the Indemnitee to his/her
spouse (or former spouse). The Indemnitee’s spouse or former spouse also may be
entitled to receive Advanced Amounts (as hereinafter defined) to the same
extent that the Indemnitee is entitled to Advanced Amounts herein. The Company
may maintain insurance to cover its obligation hereunder with respect to the
Indemnitee’s spouse (or former spouse) or set aside assets in a trust or escrow
funds for that purpose. Any spouse or former spouse of the

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Indemnitee entitled to indemnification under this Section 1(e) is an
intended third party beneficiary of this Agreement.

     2. Other Indemnification Arrangements. The Texas Statute permits the
Company to purchase and maintain insurance or furnish similar protection or
make other arrangements, including, without limitation, securing
indemnification obligations by granting a security interest or other lien on
the assets of the Company and providing self insurance, a letter of credit,
guaranty or surety bond (collectively, the “Indemnity Arrangements”) on behalf
of the Indemnitee against any liability asserted against him or incurred by or
on behalf of him in such capacity as an officer and/or director of the Company
or as an Affiliate Indemnitee, or arising out of his status as such, whether or
not the Company would have the power to indemnify him against such liability
under the provisions of this Agreement or under the Texas Statute, as it may
then be in effect. The purchase, establishment and maintenance of any such
Indemnity Arrangement shall not in any way limit or affect the rights and
obligations of the Company or of the Indemnitee under this Agreement except as
expressly provided herein, and the execution and delivery of this Agreement by
the Company and the Indemnitee shall not in any way limit or affect the rights
and obligations of the Company or the other party or parties thereto under any
such Indemnity Arrangement. All amounts payable by the Company pursuant to this
Section 2 and Section 1 hereof, including the Advanced Amounts (as defined
below), are herein referred to as “Indemnified Amounts.”

     3. Advance Payment of Indemnified Amounts.

        (a) The Indemnitee hereby is granted the right to receive promptly in
advance of a final, nonappealable judgment or other final adjudication of a
Proceeding (a “Final Determination”) the amount of any and all expenses,
including, without limitation, investigation expenses, expert witness’ and
attorneys’ fees and other expenses expended or incurred by the Indemnitee in
connection with any Proceeding or otherwise expended or incurred by the
Indemnitee (such amounts so expended or incurred being referred to as “Advanced
Amounts”).

        (b) In making any written request for the Advanced Amounts, the Indemnitee
shall submit to the Company a schedule setting forth in reasonable detail the
dollar amount expended or incurred and expected to be expended. Each such
listing shall be supported by the bill, agreement or other documentation
relating thereto, each of which shall be appended to the schedule as an
exhibit. In addition, before the Indemnitee may receive Advanced Amounts from
the Company, the Indemnitee shall provide to the Company (i) a written
affirmation of the Indemnitee’s good faith belief that the applicable standard
of conduct required for indemnification by the Company has been satisfied by
the Indemnitee, and (ii) a written undertaking by or on behalf of the
Indemnitee to repay the Advanced Amounts if it shall ultimately be determined
that the Indemnitee has not satisfied any applicable standard of conduct. The
written undertaking required from the Indemnitee shall be an unlimited general
obligation of the Indemnitee, but need not be secured. The Company shall pay to
the Indemnitee all Advanced Amounts within ten business days after receipt by
the Company of all information and documentation required to be provided by the
Indemnitee pursuant to this Section 3(b).

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     4. Procedure for Payment of Indemnified Amounts.

        (a) To obtain indemnification under this Agreement, the Indemnitee shall
submit to the Company a written request for payment of the appropriate
Indemnified Amounts, including with such request such documentation and
information as are reasonably available to the Indemnitee and reasonably
necessary to determine whether and to what extent the Indemnitee is entitled to
indemnification. The Secretary of the Company shall, promptly upon receipt of
such a request for indemnification, advise the Reviewing Party (as defined in
Section (4(f)) in writing that the Indemnitee has requested indemnification.

        (b) The Company shall pay the Indemnitee the appropriate Indemnified
Amounts, unless it is established by the Reviewing Party that the Indemnitee
has not met any applicable standard of conduct of the Texas Statute. For
purposes of determining whether the Indemnitee is entitled to Indemnified
Amounts, Indemnitee shall be presumed to be entitled to indemnification under
this Agreement, and in order to deny indemnification to the Indemnitee, the
Company shall have the burden of proof in establishing that the Indemnitee did
not meet the applicable standard of conduct. In this regard, a termination of
any Proceeding by judgment, order, settlement, conviction, pleading of nolo
contendere or its equivalent, or an entry of an order of probation prior to
judgment, shall not create a presumption that the Indemnitee did not meet the
requisite standard of conduct.

        (c) Any determination that the Indemnitee has not met the applicable
standard of conduct required to qualify for indemnification shall be made by
the Reviewing Party.

        (d) The Reviewing Party will use its best efforts to conclude as soon as
practicable any required determination pursuant to Section 4(c) and will
promptly advise the Indemnitee in writing with respect to any determination
that the Indemnitee is or is not entitled to indemnification, including a
description of any reason or basis for which indemnification has been denied.
Payment of any applicable Indemnified Amounts will be made to the Indemnitee
within ten business days after any determination of the Indemnitee’s
entitlement to indemnification.

        (e) Notwithstanding the foregoing, the Indemnitee may, at any time after
60 days after a claim for Indemnified Amounts has been filed with the Company
(or upon receipt of written notice that a claim for Indemnified Amounts has
been rejected, if earlier) and prior to the expiration of three years after a
claim for Indemnified Amounts has been filed, petition a court of competent
jurisdiction and obtain formal adjudication of whether the Indemnitee is
entitled to indemnification under the provisions of this Agreement, and such
court shall thereupon have the exclusive authority to make such determination
unless and until such court dismisses or otherwise terminates such action
without having made such determination. The court shall, as petitioned, make an
independent determination of whether the Indemnitee is entitled to
indemnification as provided under this Agreement, irrespective of any prior
determination made by the Reviewing Party. If the court shall determine that
the Indemnitee is entitled to indemnification as to any claim, issue or matter
involved in the Proceeding with respect to which there has been no prior
determination pursuant to this Agreement or with respect to which there has
been a prior determination that the Indemnitee was not entitled to

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indemnification hereunder, the Company shall pay all expenses (including
reasonable attorneys’ fees) actually incurred by the Indemnitee in connection
with such judicial determination.

        (f) If there has not been a Change in Control (as defined in Section
4(g)), the “Reviewing Party” shall be selected by the Board of Directors in
accordance with the Texas Statute and the Company’s bylaws, and if there has
been a Change in Control (other than a Change in Control which has been
approved by a vote of at least two-thirds (2/3) of the Company’s Board of
Directors who were directors immediately prior to such Change in Control), any
Reviewing Party with respect to all matters thereafter arising concerning the
rights of Indemnitee to indemnification under this Agreement or any other
agreement or under the Company’s Articles of Incorporation or Bylaws as now or
hereafter in effect, or under any other applicable law, if desired by
Indemnitee, shall be independent legal counsel selected by Indemnitee and
approved by the Company (which approval shall not be unreasonably withheld).
Such counsel, among other things, shall render its written opinion to the
Company and Indemnitee as to whether and to what extent Indemnitee would be
entitled to be indemnified hereunder under applicable law and the Company
agrees to abide by such opinion. The Company agrees to pay the reasonable fees
of the independent legal counsel referred to above and to indemnify fully such
counsel against any and all expenses (including attorneys’ fees), claims,
liabilities and damages arising out of or relating to this Agreement or its
engagement pursuant hereto. Notwithstanding any other provision of this
Agreement, the Company shall not be required to pay expenses of more than one
independent legal counsel in connection with all matters concerning a single
Indemnitee, and such independent legal counsel shall be the independent legal
counsel for any or all other Indemnitees unless (i) the employment of separate
counsel by one or more Indemnitees has been previously authorized by the
Company in writing, or (ii) an Indemnitee shall have provided to the Company a
written statement that such Indemnitee has reasonably concluded that there may
be a conflict of interest between such Indemnitee and the other Indemnitees
with respect to the matters arising under this Agreement.

        (g) “Change in Control” shall mean, and shall be deemed to have occurred
if, on or after the date of this Agreement, (i) any “person” (as such term is
used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as
amended), other than a trustee or other fiduciary holding securities under an
employee benefit plan of the Company acting in such capacity or a corporation
owned directly or indirectly by the shareholders of the Company in
substantially the same proportions as their ownership of stock of the Company,
becomes the “beneficial owner” (as defined in Rule 13d-3 under said Act),
directly or indirectly, of securities of the Company representing more than 20%
of the total voting power represented by the Company’s then outstanding voting
securities, (ii) during any period of two consecutive years, individuals who at
the beginning of such period constitute the Board of Directors of the Company
and any new director whose election by the Board of Directors or nomination for
election by the Company’s shareholders was approved by a vote of at least two
thirds (2/3) of the directors then still in office who either were directors at
the beginning of the period or whose election or nomination for election was
previously so approved, cease for any reason to constitute a majority thereof,
(iii) the shareholders of the Company approve a merger or consolidation of the
Company with any other corporation other than a merger or consolidation which
would result in the voting securities of the Company outstanding immediately
prior thereto continuing to represent (either by remaining outstanding or by
being converted into voting securities of the surviving entity) at least 80% of
the total voting power represented by

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the voting securities of the Company or such surviving entity outstanding
immediately after such merger or consolidation, or (iv) the shareholders of the
Company approve a plan of complete liquidation of the Company or an agreement
for the sale or disposition by the Company of (in one transaction or a series
of related transactions) all or substantially all of the Company’s assets.

     5. Agreement Not Exclusive; Subrogation Rights, etc.

        (a) This Agreement shall not be deemed exclusive of and shall not diminish
any other rights that the Indemnitee may have to be indemnified or insured or
otherwise protected against any liability, loss or expense by the Company, any
subsidiary of the Company or any other person or entity under any charter,
bylaws, law, agreement, policy of insurance or similar protection, vote of
shareholders or directors, disinterested or not, or otherwise, whether or not
now in effect, both as to actions in the Indemnitee’s official capacity, and as
to actions in another capacity while holding such office. The Company’s
obligations to make payments of Indemnified Amounts hereunder shall be
satisfied to the extent that payments with respect to the same Proceeding (or
part thereof) have been made to or for the benefit of the Indemnitee by reason
of the indemnification of the Indemnitee pursuant to any other arrangement made
by the Company for the benefit of the Indemnitee.

        (b) In the event the Indemnitee shall receive payment from any insurance
carrier or from the plaintiff in any Proceeding against the Indemnitee in
respect of Indemnified Amounts after payments on account of all or part of such
Indemnified Amounts have been made by the Company pursuant hereto, the
Indemnitee shall promptly reimburse to the Company the amount, if any, by which
the sum of such payment by such insurance carrier or such plaintiff and
payments by the Company or pursuant to arrangements made by the Company to the
Indemnitee exceeds such Indemnified Amounts; provided, however, that such
portions, if any, of such insurance proceeds that are required to be reimbursed
to the insurance carrier under the terms of its insurance policy, such as
deductible or coinsurance payments, shall not be deemed to be payments to the
Indemnitee hereunder. In addition, upon payment of Indemnified Amounts
hereunder, the Company shall be subrogated to the rights of the Indemnitee
receiving such payments (to the extent thereof) against any insurance carrier
(to the extent permitted under such insurance policies) or plaintiff in respect
of such Indemnified Amounts, and the Indemnitee shall execute and deliver any
and all instruments and documents and perform any and all other acts or deeds
which the Company deems necessary or advisable to secure such rights. Such
right of subrogation shall be terminated upon receipt by the Company of the
amount to be reimbursed by the Indemnitee pursuant to the first sentence of
this Section 5(b).

     6. Continuation of Indemnity. All agreements and obligations of the
Company contained herein shall continue during the period the Indemnitee is an
officer and/or director of the Company (or is serving at the request of the
Company as an Affiliate Indemnitee) and shall continue thereafter for a period
of ten years from the date the Indemnitee ceases to serve as an officer and/or
director of the Company or ceases to serve as an Affiliate Indemnitee
(whichever is later).

     7. Notice and Defense of Claim. The Indemnitee agrees promptly to notify
the Company in writing upon being served with any summons, citation, subpoena,
complaint,

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indictment, information or other document relating to any Proceeding or
matter which may be subject to indemnification or advancement of expenses
covered hereunder. Notwithstanding any other provision of this Agreement, with
respect to any such Proceeding or matter as to which the Indemnitee notifies
the Company of the commencement thereof:

        (a) The Company will be entitled to participate therein at its own
expense.

        (b) Except as otherwise provided in this Section 7(b), to the extent it
desires, the Company, jointly with any other indemnifying party similarly
notified, shall be entitled to assume the defense thereof, with counsel
reasonably satisfactory to the Indemnitee. After notice from the Company to the
Indemnitee of the Company’s election to so assume the defense thereof, the
Company shall not be liable to the Indemnitee under this Agreement for any
legal or other expenses subsequently incurred by the Indemnitee in connection
with the defense thereof other than reasonable costs of investigation or as
otherwise provided below. The Indemnitee shall have the right to employ his own
counsel in such Proceeding or matter, but the fees and expenses of such counsel
incurred after notice from the Company of its assumption of the defense thereof
shall be at the expense of Indemnitee unless (i) the employment of counsel by
the Indemnitee has been authorized by the Company, (ii) the Indemnitee shall
have reasonably concluded that there may be a conflict of interest between the
Company and the Indemnitee in the conduct of the defense of such action, or
(iii) the Company shall not in fact have employed counsel to assume the defense
of such Proceeding or matter, in each of which cases the fees and expenses of
counsel shall be at the expense of the Company. The Company shall not be
entitled to assume the defense of any Proceeding or matter brought by or on
behalf of the Company or as to which the Indemnitee shall have made the
conclusion provided for in clause (ii) above.

        (c) The Company shall not be liable to indemnify the Indemnitee under this
Agreement for any amounts paid in settlement of any Proceeding or matter
affected without its written consent. The Company shall not settle any
Proceeding or matter in any manner that would impose any penalty or limitation
on the Indemnitee without the Indemnitee’s written consent. Neither the Company
nor the Indemnitee will unreasonably withhold its consent to any proposed
settlement.

     8. Defense Counsel. The Indemnitee hereby agrees that in any Proceeding in
which the Indemnitee and other past or present directors or officers of the
Company (or its successor) who are entitled to indemnification from the Company
are named defendants or respondents, the Indemnitee and such other past or
present directors or officers shall collectively select one firm of attorneys
in any jurisdiction to defend all such defendants and respondents in such
Proceeding unless counsel for the Indemnitee concludes in a reasoned opinion
that there are issues which may raise conflicts of interest between the
Indemnitee and such other persons.

     9. Indemnification for Negligence. TO THE EXTENT PERMITTED BY THEN
APPLICABLE LAW AND SUBJECT TO THE PROVISIONS OF THIS AGREEMENT, THE PARTIES
HERETO RECOGNIZE AND ACKNOWLEDGE THAT THE INDEMNITEE MAY BE INDEMNIFIED IN
ACCORDANCE WITH THE PROVISIONS OF THIS AGREEMENT IN PROCEEDINGS INVOLVING THE
NEGLIGENCE OF THE INDEMNITEE.

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     10. Successors; Binding Agreement. This Agreement shall be binding on and
shall inure to the benefit of and be enforceable by the Company’s successors
and assigns and by the Indemnitee’s personal or legal representatives,
executors, administrators, successors, heirs, distributees, devisees and
legatees. The Company shall require any successor or assignee (whether direct
or indirect, by purchase, merger, consolidation or otherwise) to all or
substantially all of the business and/or assets of the Company, by written
agreement in form and substance reasonably satisfactory to the Company and to
the Indemnitee, expressly to assume and agree to perform this Agreement in the
same manner and to the same extent that the Company would be required to
perform if no such succession or assignment had taken place.

     11. Enforcement. The Company has entered into this Agreement and assumed
the obligations imposed on the Company hereby in order to induce the Indemnitee
to act as an officer and/or director, as the case may be, of the Company, and
acknowledges that the Indemnitee is relying upon this Agreement in continuing
in such capacity. In the event the Indemnitee is required to bring any action
to enforce rights or to collect monies due under this Agreement and is
successful in such action, the Company shall reimburse the Indemnitee for all
of the Indemnitee’s reasonable attorneys’ fees and expenses in bringing and
pursuing such action. The Indemnitee shall be entitled by or to the advancement
of Indemnified Amounts to the full extent contemplated by Section 3 hereof in
connection with such proceeding. In the event that the Company shall breach
any of its obligations to the Indemnitee hereunder, including the Company’s
obligations with respect to the Advanced Amounts under Section 3 of this
Agreement, the parties hereto agree that the Indemnitee’s remedies available at
law would not be adequate and that Indemnitee would be entitled to the remedies
of specific performance and injunctive relief to enforce such obligations of
the Company.

     12. Severability. In the event that any provision of this Agreement is
determined by a court to require the Company to do or to fail to do an act
which is in violation of applicable law, such provision shall be limited or
modified in its application to the minimum extent necessary to avoid a
violation of law, and, as so limited or modified, such provision and the
balance of this Agreement shall be enforceable in accordance with its terms.

     13. Entire Agreement. This Agreement contains the entire understanding of
the parties relating to the subject matter contained herein and supersedes all
prior agreements and understandings, written or oral, relating to the subject
matter hereof.

     14. Amendment; Waiver. No provision of this Agreement may be modified,
waived or discharged unless such modification, waiver or discharge is agreed to
in writing signed by the Indemnitee and either the President of the Company or
another officer of the Company specifically designated by the directors. No
waiver by either party at any time of any breach by the other party of, or of
compliance with, any condition or provision of this Agreement to be performed
by such other party shall be deemed a wavier of similar or dissimilar
provisions or conditions at the same time or at any prior or subsequent times.

     15. Notices. For the purposes of this Agreement, notices and all other
communications provided for in this Agreement shall be in writing and shall be
deemed to have been duly given when delivered or three days after being
deposited by United States certified mail, return receipt requested, postage
prepaid, as follows:

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If to the Company:

Service Corporation International

1929 Allen Parkway

Houston, Texas 77019

Attention: General Counsel

If to the Indemnitee:

	 	 	 	 	 
	 	 	 
	 	
		 
	 	 		 
	 	
		 
	 	 		 
	 	
		 

or to such other address as either party may have furnished to the other in
writing in accordance herewith, except that notices of change of address shall
be effective only upon receipt.

     16. 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.

     17. Choice of Law. This Agreement shall be governed by and construed and
enforced in accordance with the laws of the State of Texas (without regards to
principles of conflicts of laws).

     18. Titles and Captions. All section titles and captions in this Agreement
are for convenience only, shall not be deemed part of this Agreement, and in no
way shall define, limit, extend, or describe the scope or intent of any
provisions hereof.

[Signature page follows.]

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     IN WITNESS WHEREOF, the undersigned have caused this Agreement to be
executed as of the day and year first above written.

	 	 	 	 	 
	 	COMPANY:

SERVICE CORPORATION INTERNATIONAL

 	 
	 	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 

	 	 	 	 	 
	 	INDEMNITEE:

 	 
	 	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 

10exv10w2

 

Exhibit 10.2

FIRST AMENDMENT TO THE

SCI 401(K) RETIREMENT SAVINGS PLAN

(AS AMENDED AND RESTATED JANUARY 14, 2004)

     WHEREAS, Service Corporation International (the “Company”) previously
adopted and maintains the SCI 401(k) Retirement Savings Plan, as amended and
restated effective July 1, 2000 (the “Plan”); and

     WHEREAS, the Company reserved the right to amend the Plan at any time; and

     WHEREAS, the Plan, as amended and restated was amended by the “First
Amendment” dated August 13, 2003 to change the name of the Plan Administrator;

     WHEREAS, the Plan Administrator executed an amended and restated adoption
agreement and basic plan document on January 14, 2004:

     WHEREAS, Company now desires to further amend the Plan as set forth below;

     NOW, THEREFORE, the Plan shall be and hereby is amended as follows:

	 	1.	 	The date of the amendment and restatement of the Plan shall
be changed to January 14, 2004 and the Plan name shall be changed
accordingly;
	 
	 	2.	 	Effective as of December 30, 2004, the Introduction to the
Plan shall be amended in its entirety to read as set forth in
Exhibit A attached hereto.
	 
	 	3.	 	Effective as of July 1, 2000, Section E.4. of the Adoption
Agreement shall be amended to provide that service prior to the time
an Employee has attained age 18 shall be counted toward Vesting
Service.
	 
	 	4.	 	The Addendum A to the Plan, which pertains to participation
in the Plan by employees of Marsellus Casket Company shall be
deleted in its entirety, and the attached Addendum A shall be
substituted therefore, effective as of the dates set forth therein;
	 
	 	5.	 	Effective as of January 1, 2004, Section 1.0(k) of Addendum B
to the Plan shall be deleted.
	 
	 	6.	 	Effective as of January 1, 2004, Addendum D of the Plan shall
be amended to read as follows:

     “The classification of Employees eligible to participate in
the Plan shall include all Employees of CemCare, Inc. (“CemCare”)
other than Employees covered by a collective bargaining agreement
if such agreement does not

 

 

specifically provide for participation in the Plan. Employees of
CemCare shall participate in the Plan on the same basis as other
eligible Participants.”

	 	7.	 	Effective as of December 30, 2004, item B.3. of the Plan’s
Adoption Agreement shall be amended to read as follows:
	 
	 	 	 	“PLAN YEAR means the 12 consecutive month period beginning on January 1
and ending on December 31, except that there will be a short Plan Year
beginning on December 31, 2004 and ending on December 31, 2004.”
	 
	 	8.	 	Whereas it was not the Company’s intention to change the
vesting computation period with the adoption of the “GUST Amended”
MassMutual prototype document as the basic plan document (the
Adoption Agreement for which was executed January 14, 2004),
effective as to the date of such adoption, the first sentence of the
fourth paragraph of Section 1.91 of the basic plan document shall be
amended to read as follows:
	 
	 	 	 	“For vesting purposes, and all other purposes not specifically
addressed in this Section, the computation period shall be the calendar
year.”
	 
	 	 	 	It is the Company’s intention hereby, not to change the vesting
computation period, which, pursuant to the prior adoption agreement, was the
calendar year.
	 
	 	9.	 	Effective for claims or requests for review of an adverse
benefit determination filed on or after January 1, 2003, Sections
2.10 and 2.11 shall be deleted and the following shall be inserted
in lieu thereof:
	 
	 	 	 	“2.10 CLAIMS AND REVIEW PROCEDURES

     Claims for benefits under the Plan may be filed in writing
with the Administrator. The Administrator will maintain a separate
written document explaining the Plan’s claims procedure. This
Section 2.10 specifically incorporates the written claims procedure
as from time to time published by the Administrator as part of the
Plan. Such procedures shall provide for a review of a denied claim
in accordance with the requirements of ERISA. If the Administrator
makes a final written determination denying a Participant’s or
Beneficiary’s benefit claim, the Participant or Beneficiary to
preserve the claim must file an action in federal court with
respect to the denied claim not later than 180 days following the
date of the Plan Administrator’s final determination.”

	 	10.	 	Effective as of January 1, 2004, Section 6.2 of the Plan
shall be amended by adding the following subsection (i):

     “(i) Upon the death of a Participant, any Beneficiary may
renounce his or her interest in the Participant’s death benefit.
Any such renunciation shall be by written instrument in a form
satisfactory to the Administrator and shall be

 

 

received by the Administrator on or before the earlier of (i)
the date of any distribution of the Participant’s benefit to such
Beneficiary or (ii) five years from the date of the Participant’s
death. Upon determination by the Administrator that a Beneficiary
has validly renounced his or her interest in the Participant’s
benefit, the Participant’s benefit shall be distributed as though
such Beneficiary had predeceased the Participant.”

	 	 	Except as modified herein, the Plan is in all other respects,
specifically ratified and affirmed.

     IN WITNESS WHEREOF, the Company has executed this First Amendment this
                     day of Oct. 22, 2004.

SERVICE CORPORATION INTERNATIONAL

	 	 	 	 
	 	 	 
	 	By:  	Helen Dugand
 	 
	 	 	Helen Dugand, 	 
	 	 	Vice-President of SCI Funeral & Cemetery Purchasing & Cooperative Inc. 	 
	 

 

 

ADDENDUM A

REV. PROC. 2002-29 MODEL AMENDMENT

MINIMUM DISTRIBUTION REQUIREMENTS

Section 1. General Rules

     1.1. Effective Date. Unless an earlier effective date is specified in the
Adoption Agreement, the provisions of this addendum will apply for purposes of
determining required minimum distributions for calendar years beginning with
the 2003 calendar year.

     1.2. Coordination with Minimum Distribution Requirements Previously in
Effect. If the Adoption Agreement specifies an effective date of this addendum
that is earlier than calendar years beginning with the 2003 calendar year,
required minimum distributions for 2002 under this addendum will be determined
as follows. If the total amount of 2002 required minimum distributions under
the Plan made to the distributee prior to the effective date of this addendum
equals or exceeds the required minimum distributions determined under this
addendum, then no additional distributions will be required to be made for 2002
on or after such date to the distributee. If the total amount of 2002 required
minimum distributions under the Plan made to the distributee prior to the
effective date of this addendum is less than the amount determined under this
addendum, then required minimum distributions for 2002 on and after such date
will be determined so that the total amount of required minimum distributions
for 2002 made to the distributee will be the amount determined under this
addendum.

     1.3. Precedence. The requirements of this addendum will take precedence
over any inconsistent provisions of the Plan.

     1.4. Requirements of Treasury Regulations Incorporated. All distributions
required under this addendum will be determined and made in accordance with the
Treasury regulations under section 401(a)(9) of the Internal Revenue Code.

     1.5. TEFRA Section 242(b)(2) Elections. Notwithstanding the other
provisions of this addendum, distributions may be made under a designation made
before January 1, 1984, in accordance with section 242(b)(2) of the Tax Equity
and Fiscal Responsibility Act (TEFRA) and the provisions of the Plan that
relate to section 242(b)(2) of TEFRA.

Section 2. Time and Manner of Distribution.

     2.1. Required Beginning Date. The Participant’s entire interest will be
distributed, or begin to be distributed, to the Participant no later than the
Participant’s Required Beginning Date.

     2.2. Death of Participant Before Distributions Begin. If the Participant
dies before distributions begin, the Participant’s entire interest will be
distributed, or begin to be distributed, no later than as follows:

1

 

     (a) If the Participant’s Surviving Spouse is the Participant’s sole
Designated Beneficiary, then, except as provided in the adoption
agreement, distributions to the Surviving Spouse will begin by December
31 of the calendar year immediately following the calendar year in which
the Participant died, or by December 31 of the calendar year in which the
Participant would have attained age 70 1/2, if later.

     (b) If the Participant’s Surviving Spouse is not the Participant’s
sole Designated Beneficiary, then, except as provided in the adoption
agreement, distributions to the Designated Beneficiary will begin by
December 31 of the calendar year immediately following the calendar year
in which the Participant died.

     (c) If there is no Designated Beneficiary as of September 30 of the
year following the year of the Participant’s death, the Participant’s
entire interest will be distributed by December 31 of the calendar year
containing the fifth anniversary of the Participant’s death.

     (d) If the Participant’s Surviving Spouse is the Participant’s sole
Designated Beneficiary and the Surviving Spouse dies after the
Participant but before distributions to the Surviving Spouse begin, this
section 2.2, other than section 2.2(a), will apply as if the Surviving
Spouse were the Participant.

For purposes of this section 2.2 and section 4, unless section 2.2(d) applies,
distributions are considered to begin on the Participant’s Required Beginning
Date. If section 2.2(d) applies, distributions are considered to begin on the
date distributions are required to begin to the Surviving Spouse under section
2.2(a). If distributions under an annuity purchased from an insurance company
irrevocably commence to the Participant before the Participant’s Required
Beginning Date (or to the Participant’s Surviving Spouse before the date
distributions are required to begin to the Surviving Spouse under section
2.2(a)), the date distributions are considered to begin is the date
distributions actually commence.

     2.3. Forms of Distribution. Unless the Participant’s interest is
distributed in the form of an annuity purchased from an insurance company or in
a single sum on or before the Required Beginning Date, as of the first
distribution calendar year distributions will be made in accordance with
sections 3 and 4 of this addendum. If the Participant’s interest is
distributed in the form of an annuity purchased from an insurance company,
distributions thereunder will be made in accordance with the requirements of
section 401(a)(9) of the Code and the Treasury regulations.

Section 3. Required Minimum Distributions During Participant’s Lifetime.

     3.1. Amount of Required Minimum Distribution For Each Distribution
Calendar Year. During the Participant’s lifetime, the minimum amount that will
be distributed for each Distribution Calendar Year is the lesser of:

     (a) the quotient obtained by dividing the Participant’s Account
Balance by the distribution period in the Uniform Lifetime Table set
forth in section 1.401(a)(9)-9 of the

2

 

Treasury regulations, using the Participant’s age as of the
Participant’s birthday in the distribution calendar year; or

     (b) if the Participant’s sole Designated Beneficiary for the
Distribution Calendar Year is the Participant’s Spouse, the quotient
obtained by dividing the Participant’s Account Balance by the number in
the Joint and Last Survivor Table set forth in section 1.401(a)(9)-9 of
the Treasury regulations, using the Participant’s and Spouse’s attained
ages as of the Participant’s and Spouse’s birthdays in the Distribution
Calendar Year.

     3.2. Lifetime Required Minimum Distributions Continue Through Year of
Participant’s Death. Required minimum distributions will be determined under
this section 3 beginning with the first Distribution Calendar Year and up to
and including the Distribution Calendar Year that includes the Participant’s
date of death.

Section 4. Required Minimum Distributions After Participant’s Death.

     4.1. Death On or After Date Distributions Begin.

     (a) Participant Survived by Designated Beneficiary. If the
Participant dies on or after the date distributions begin and there is a
Designated Beneficiary, the minimum amount that will be distributed for
each Distribution Calendar Year after the year of the Participant’s death
is the quotient obtained by dividing the Participant’s Account Balance by
the longer of the remaining Life Expectancy of the Participant or the
remaining Life Expectancy of the Participant’s Designated Beneficiary,
determined as follows:

     (1) The Participant’s remaining Life Expectancy is calculated
using the age of the Participant in the year of death, reduced by
one for each subsequent year.

     (2) If the Participant’s Surviving Spouse is the Participant’s
sole Designated Beneficiary, the remaining Life Expectancy of the
Surviving Spouse is calculated for each Distribution Calendar Year
after the year of the Participant’s death using the Surviving
Spouse’s age as of the Spouse’s birthday in that year. For
Distribution Calendar Years after the year of the Surviving
Spouse’s death, the remaining Life Expectancy of the Surviving
Spouse is calculated using the age of the Surviving Spouse as of
the Spouse’s birthday in the calendar year of the Spouse’s death,
reduced by one for each subsequent calendar year.

     (3) If the Participant’s Surviving Spouse is not the
Participant’s sole Designated Beneficiary, the Designated
Beneficiary’s remaining Life Expectancy is calculated using the age
of the Beneficiary in the year following the year of the
Participant’s death, reduced by one for each subsequent year.

     (b) No Designated Beneficiary. If the Participant dies on or after
the date distributions begin and there is no Designated Beneficiary as of
September 30 of the year

3

 

after the year of the Participant’s death, the minimum amount that
will be distributed for each Distribution Calendar Year after the year of
the Participant’s death is the quotient obtained by dividing the
Participant’s Account Balance by the Participant’s remaining Life
Expectancy calculated using the age of the Participant in the year of
death, reduced by one for each subsequent year.

     4.2. Death Before Date Distributions Begin.

     (a) Participant Survived by Designated Beneficiary. Except as
provided in the adoption agreement, if the Participant dies before the
date distributions begin and there is a Designated Beneficiary, the
minimum amount that will be distributed for each Distribution Calendar
Year after the year of the Participant’s death is the quotient obtained
by dividing the Participant’s Account Balance by the remaining Life
Expectancy of the Participant’s Designated Beneficiary, determined as
provided in section 4.1.

     (b) No Designated Beneficiary. If the Participant dies before the
date distributions begin and there is no Designated Beneficiary as of
September 30 of the year following the year of the Participant’s death,
distribution of the Participant’s entire interest will be completed by
December 31 of the calendar year containing the fifth anniversary of the
Participant’s death.

     (c) Death of Surviving Spouse Before Distributions to Surviving
Spouse Are Required to Begin. If the Participant dies before the date
distributions begin, the Participant’s Surviving Spouse is the
Participant’s sole Designated Beneficiary, and the Surviving Spouse dies
before distributions are required to begin to the Surviving Spouse under
section 2.2(a), this section 4.2 will apply as if the Surviving Spouse
were the Participant.

Section 5. Definitions.

     5.1. Designated Beneficiary. The individual who is designated as the
Beneficiary under section 6.2 of the Plan and is the Designated Beneficiary
under section 401(a)(9) of the Internal Revenue Code and section 1.401(a)(9)-1,
Q&A-4, of the Treasury regulations.

     5.2. Distribution Calendar Year. A calendar year for which a minimum
distribution is required. For distributions beginning before the Participant’s
death, the first distribution calendar year is the calendar year immediately
preceding the calendar year which contains the Participant’s required beginning
date. For distributions beginning after the Participant’s death, the first
Distribution Calendar Year is the calendar year in which distributions are
required to begin under section 2.2. The required minimum distribution for the
Participant’s first Distribution Calendar Year will be made on or before the
Participant’s Required Beginning Date. The required minimum distribution for
other Distribution Calendar Years, including the required minimum distribution
for the Distribution Calendar Year in which the Participant’s Required
Beginning Date occurs, will be made on or before December 31 of that
distribution calendar year.

4

 

     5.3. Life Expectancy. Life Expectancy as computed by use of the Single
Life Table in section 1.401(a)(9)-9 of the Treasury regulations.

     5.4. Participant’s Account Balance. The account balance as of the last
valuation date in the calendar year immediately preceding the Distribution
Calendar Year (valuation calendar year) increased by the amount of any
contributions made and allocated or forfeitures allocated to the account
balance as of dates in the valuation calendar year after the valuation date and
decreased by distributions made in the valuation calendar year after the
valuation date. The account balance for the valuation calendar year includes
any amounts rolled over or transferred to the Plan either in the valuation
calendar year or in the Distribution Calendar Year if distributed or
transferred in the valuation calendar year.

     5.5 Required Beginning Date. The date specified in section 6.5 of the
Plan.

1. Adoption Agreement

(Check and complete section 1 below if any required minimum distributions for
the 2002 Distribution Calendar Year were made in accordance with the §
401(a)(9) Final and Temporary Regulations.)

Section 1. Effective Date of Plan Amendment for Section 401(a)(9) Final and
Temporary Treasury Regulations.

o Minimum Distribution Requirements, applies for purposes of determining
required minimum distributions for distribution calendar years beginning with
the 2003 calendar year, as well as required minimum distributions for the 2002
distribution calendar year that are made on or after                     .

(Check and complete any of the remaining sections if you wish to modify the
rules in sections 2.2 and 4.2 of this Addendum.)

Section 2. Election to Apply 5-Year Rule to Distributions to Designated
Beneficiaries.

x If the Participant dies before distributions begin and there is a
Designated Beneficiary, distribution to the Designated Beneficiary is not
required to begin by the date specified in section 2.2 of this Addendum, but
the Participant’s entire interest will be distributed to the Designated
Beneficiary by December 31 of the calendar year containing the fifth
anniversary of the Participant’s death. If the Participant’s Surviving Spouse
is the Participant’s sole Designated Beneficiary and the Surviving Spouse dies
after the Participant but before distributions to either

5

 

the Participant or the Surviving Spouse begin, this election will apply as if
the Surviving Spouse were the Participant.

This election will apply to:

x All distributions.

o The following distributions:                                                             .

Section 3. Election to Allow Participants or Beneficiaries to Elect 5-Year Rule.

x Participants or Beneficiaries may elect on an individual basis whether
the 5-year rule or the Life Expectancy rule in sections 2.2 and 4.2 of this
Addendum applies to distributions after the death of a Participant who has a
Designated Beneficiary. The election must be made no later than the earlier of
September 30 of the calendar year in which distribution would be required to
begin under section 2.2 of this Addendum, or by September 30 of the calendar
year which contains the fifth anniversary of the Participant’s (or, if
applicable, Surviving Spouse’s) death. If neither the Participant nor
Beneficiary makes an election under this paragraph, distributions will be made
in accordance with sections 2.2 and 4.2 of this Addendum and, if applicable,
the elections in section 2 above.

Section 4. Election to Allow Designated Beneficiary Receiving Distributions
Under 5-Year Rule to Elect Life Expectancy Distributions.

x A Designated Beneficiary who is receiving payments under the 5-year
rule may make a new election to receive payments under the Life Expectancy rule
until December 31, 2003, provided that all amounts that would have been
required to be distributed under the Life Expectancy rule for all distribution
calendar years before 2004 are distributed by the earlier of December 31, 2003
or the end of the 5-year period.

6

 

EXHIBIT A

SCI 401(K) RETIREMENT SAVINGS PLAN

AS AMENDED AND RESTATED (JANUARY 14, 2004)

INTRODUCTION

     Service Corporation International has previously adopted the SCI 401(k)
Retirement Savings Plan (the “Plan”) effective as of July 1, 2000. The Plan is
an individually designed single employer plan, but has been amended and
restated to conform to the “GUST amended” version of the MassMutual Retirement
Services FlexInvest Defined Contribution Prototype Plan and Non-Standardized
401(k) Profit Sharing Adoption Agreement which is attached hereto and
incorporated herein for all purposes, with the modifications set forth below
and any and all other modifications as may be separately set forth in Addenda
or Amendments to the Plan. This Introduction is amended as set forth below
effective as of December 30, 2004, except where a different effective date is
noted. The provisions of this Introduction and any addenda to the Plan
supersede and control with respect to any contrary provisions of the Plan set
forth in the adoption agreement or basic plan document.

	1.	 	Effective as of July 1, 2000, notwithstanding anything in the Plan to the
contrary, all Years of Service with the Company prior to a Break in
Service shall be included for purposes of determining the Participant’s
vested interest under Section 6.4 of the Plan if such Participant had a
nonforfeitable accrued benefit in the SCI Cash Balance Plan or the SCI
Pension Plan at the time such Participant first incurred a One-Year Break
in Service.
	 
	2.	 	Effective as of January 1, 2001, the Percentage Match for each
Participant shall be determined based on the Participant’s Years of
Vesting Service as of the end of each Plan Year and shall apply for the
entire next Plan Year notwithstanding the fact that the Participant may be
credited with an additional Year of Service during such next Plan Year.
	 
	3.	 	Addenda A through E as amended by the First Amendment and as may be
amended from time to time shall be incorporated into the Plan for all
purposes.

     IN WITNESS WHEREOF, the Plan’s amended and restated adoption agreement was
executed on the 14th day of January 2004 and this Introduction (as amended by
the First Amendment) is hereby executed on this 22 day of October, 2004 by a
duly authorized officer of the Plan Administrator by authority granted by the
Plan sponsor.

SERVICE CORPORATION INTERNATIONAL

	 	 	 	 
	 	 	 
	 	By:  	Helen Dugand
 	 
	 	 	Helen Dugand 	 
	 	 	Vice-President of  SCI Funeral & Cemetery Purchasing & Cooperative, Inc. 
	 

7

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