Document:

Omnibus Agreement

 Exhibit 10.4 
  
 Execution Copy 

  
 OMNIBUS AGREEMENT 
  
 among 
  
 McCOWN DE LEEUW & CO. IV, L.P., 
  
 McCOWN DE LEEUW & CO. IV ASSOCIATES, L.P., 
  
 MDC MANAGEMENT COMPANY IV, LLC, 
  
 DELTA FUND LLC, 
  
 CORNERSTONE FAMILY SERVICES LLC 
  
 CFSI LLC, 
  
 STONEMOR PARTNERS L.P., 
  
 STONEMOR GP LLC 
  
 and

  
 STONEMOR OPERATING LLC 
  

  
 TABLE OF CONTENTS

  

					
	ARTICLE I
	DEFINITIONS
			
	 Section 1.1
	  	Definitions	  	1
	
	 ARTICLE II

	NONCOMPETITION
			
	 Section 2.1
	  	Restricted Businesses	  	5
	 Section 2.2
	  	Scope of Restricted Business Prohibition	  	5
	 Section 2.3
	  	Enforcement	  	5
	
	 ARTICLE III

	INDEMNIFICATION
			
	 Section 3.1
	  	Indemnification by CFSI LLC for Successor Liability	  	5
	 Section 3.2
	  	Indemnification by CFSI LLC for an NOL Limitation Event	  	6
	 Section 3.3
	  	Indemnification by the Partnership Entities	  	7
	 Section 3.4
	  	Indemnification Procedures	  	7
	 Section 3.5
	  	Existence of CFSI LLC	  	9
	 Section 3.6
	  	Limitations on Transfers and Incurrence of Indebtedness of CFSI LLC	  	9
	
	 ARTICLE IV

	MISCELLANEOUS
			
	 Section 4.1
	  	Choice of Law; Submission to Jurisdiction	  	12
	 Section 4.2
	  	Notice	  	12
	 Section 4.3
	  	Entire Agreement; Supersedure	  	13
	 Section 4.4
	  	Effect of Waiver or Consent	  	13
	 Section 4.5
	  	Amendment or Modification	  	13
	 Section 4.6
	  	Assignment	  	13
	 Section 4.7
	  	Counterparts	  	14
	 Section 4.8
	  	Severability	  	14
	 Section 4.9
	  	Construction	  	14
	 Section 4.10
	  	Further Assurances	  	14
	 Section 4.11
	  	No Rights of Limited Partners, Assignees, and Third Parties	  	14

  

 i 

 OMNIBUS AGREEMENT 
  
 THIS OMNIBUS AGREEMENT (this “Agreement”) is entered into on, and effective as of, the Closing Date (as defined
herein) by and among McCown De Leeuw & Co. IV, L.P., a California limited partnership (“MDC Fund IV”), McCown De Leeuw IV Associates, L.P., a California limited partnership (“MDC Fund IV Associates”), MDC Management Company
IV, LLC, a California limited liability company, for itself and in its capacity as general partner of MDC Fund IV and MDC Fund IV Associates, Delta Fund LLC, a California limited liability company, (collectively, the “MDC Group”),
Cornerstone Family Services LLC, a Delaware limited liability company (“CFS LLC”), CFSI LLC, a Delaware limited liability company (“CFSI LLC”), StoneMor Partners L.P., a Delaware limited partnership (the “Partnership”),
StoneMor GP LLC, a Delaware limited liability company (the “General Partner”), for itself and on behalf of the Partnership in its capacity as general partner of the Partnership, and StoneMor Operating LLC, a Delaware limited liability
company (the “Operating Company”). 
  
 PRELIMINARY
STATEMENTS 
  
 1. The parties desire by their execution of
this Agreement to evidence their understanding, as more fully set forth in Article II, with respect to certain noncompetition obligations on the part of the MDC Entities (as defined herein). 
  
 2. The parties desire by their execution of this Agreement to evidence their
understanding, as more fully set forth in Article III, with respect to certain indemnification obligations of the parties to each other. 
  
 AGREEMENT 
  
 In consideration of the mutual promises contained herein, the benefits to be derived by each party hereunder and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 
  
 ARTICLE I 
 DEFINITIONS 
  
 Section 1.1 Definitions. Capitalized terms used in this Agreement
shall have the respective meanings set forth below or elsewhere in this Agreement, as the case may be: 
  
 “5% Shareholders” shall have the meaning ascribed to such term in Section 382(k)(7) of the Code, including the constructive ownership rules
applicable thereto and the Treasury Regulation thereunder. 
  
 “Actual Aggregate Income Tax Due” means the aggregate amount of federal, state and local income Tax the Partnership Entities must pay in any taxable year. 
  
 “Affiliate” shall have the meaning ascribed to such term in the Partnership Agreement. 
  
 “Agreement” means this Omnibus Agreement, as amended, modified or
supplemented from time to time in accordance with the terms hereof. 
  

 1 

 “Assignee” shall have the meaning ascribed to such term in the Partnership Agreement.

  
 “CFSI LLC Agreement” shall mean the limited
liability company agreement of CFSI LLC, dated as of September 17, 2004, as such agreement is amended, modified or supplemented from time to time. 
  
 “Closing Date” shall have the meaning ascribed to such term in the Partnership Agreement. 
  
 “Code” means the Internal Revenue Code of 1986, as amended.

  
 “Common Units” shall have the meaning ascribed to
such term in the Partnership Agreement. 
  
 “Conflicts
Committee” shall have the meaning ascribed to such term in the Partnership Agreement. 
  
 “Contribution Agreement” shall have the meaning ascribed to such term in the Partnership Agreement. 
  
 “Control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a
Person, whether through ownership of voting securities, by contract or otherwise. 
  
 “Conveyed Assets” means the Aggregate Cemetery LLC Interests, the Association Notes, the NJ NQ Sub Stock, the CFSI LLC Partial OLP Interest and the CFSI LLC Remaining OLP Interest, each of which shall have
the meaning ascribed to such term in the Contribution Agreement. 
  
 “CPA Mediator” means an internationally recognized firm of independent public accountants selected jointly by the Conflicts Committee and the Indemnifying Party and which is not then performing and has not in the past three years
performed services for or on behalf of either the Indemnified Party or the Indemnifying Party. 
  
 “Discharge Date” shall have the meaning ascribed to such term in Section 3.6(a). 
  
 “Estimated Formation Taxes” means the estimated amount of income Taxes due and owing, as shown on Exhibit A, by the Predecessor Entities as a
result of the Formation Transactions. 
  
 “Fair Market
Value” shall have the meaning ascribed to such term in Section 3.6(c). 
  
 “Formation Taxes” means those income Taxes due and owing by the Predecessor Entities as a result of the Formation Transactions. 
  
 “Formation Transactions” means those transactions contemplated by and described in the Contribution Agreement,
including those transactions described in the recitals to the Contribution Agreement. 
  

 2 

 “Governmental Authority” means (i) the United States of America, (ii) any state, commonwealth,
county, municipality or other governmental subdivision within the United States of America, (iii) any court or any governmental department, commission, board, bureau, agency or other instrumentality of the United States of America, or of any state,
commonwealth, county, municipality or other governmental subdivision within the United States of America, and (iv) any arbitration tribunal having jurisdiction over any member of the MDC Entities or any of the Partnership Entities. 
  
 “IRS” means the Internal Revenue Service. 
  
 “Knowledge” means the actual knowledge after due inquiry of the
members of the board of managers of CFSI LLC and the executive officers of CFSI LLC. 
  
 “Known Threshold Amount “ shall have the meaning ascribed to such term in Section 3.6(d). 
  
 “Limited Partner” shall have the meaning ascribed to such term in the Partnership Agreement. 
  
 “Losses” means any losses, damages, liabilities, assessments,
claims, demands, causes of action, judgments, settlements, fines, penalties, costs, and expenses (including, without limitation, court costs and reasonable attorney’s fees and expert’s fees) of any and every kind or character. 

 
 “MDC Entities” means each member of the MDC Group, CFS LLC, CFSI
LLC and their respective direct and indirect Subsidiaries, other than the Partnership Entities. 
  
 “MDC Entity” means any of the MDC Entities. 
  
 “NOL Carryover Period” means the NOL carryover period allowed under Section 172 of the Code. 
  
 “NOL Carryovers” means the amount of federal and state NOL
carryovers shown on Exhibit B, as adjusted pursuant to this definition. Such amounts are to be available as of the Closing Date for use by the Partnership Entities as a reduction of taxable income in future taxable periods of the Partnership
Entities. The amounts shown on Exhibit B reflect (i) the amounts of federal and state NOL carryovers of the Predecessor Entities as of December 31, 2003, plus (ii) the amount of federal and state NOL carryovers that are to result from the Formation
Transactions. The amounts referred to in clause (i) and shown on Exhibit B shall be adjusted for any increase or decrease in federal and state NOL carryovers resulting from the operations (not including the Formation Transactions) of the Predecessor
Entities for the period beginning January 1, 2004 and ending on the Closing Date, as finally determined and reported on the federal and state income tax returns of the Predecessor Entities. 
  
 “NOL Limitation Event” means an entry of a final, nonappealable
judgment or decree by a court or the execution of a final and binding settlement agreement with any Governmental Authority that has the effect of reducing or eliminating any of the NOL Carryovers. 
  

 3 

 “NOL” means net operating loss as defined in Section 172 of the Code. 
  
 “Notional Aggregate Income Tax Due” means the Actual Aggregate
Income Tax Due if no NOL Limitation Event were to have occurred. 
  
 “Other Known Interests” shall have the meaning ascribed to such term in Section 3.6(d). 
  
 “Over-Allotment Option” shall have the meaning ascribed to such term in the Partnership Agreement. 
  
 “Partnership Agreement” means the First Amended and Restated
Agreement of Partnership of the Partnership, dated as of the Closing Date, as such agreement is amended, modified or supplemented from time to time. 
  
 “Partnership Entities” means the General Partner and each member of the Partnership Group. 
  
 “Partnership Entity” means any of the Partnership Entities.

  
 “Partnership Group” means the Partnership and any of
its Subsidiaries. 
  
 “Person” shall have the meaning
ascribed to such term in the Partnership Agreement. 
  
 “Predecessor Entities” means CFSI LLC and its predecessors and any controlled Affiliate of the foregoing. 
  
 “Restricted Business” shall have the meaning ascribed to such term in Section 2.1. 
  
 “Restricted Period” shall have the meaning ascribed to such term in Section 3.6(d). 
  
 “Section 382 Ownership Change” shall have the meaning ascribed to
such term in Section 3.6(d). 
  
 “Subordinated Units”
shall have the meaning ascribed to such term in the Partnership Agreement. 
  
 “Subsidiary” shall have the meaning ascribed to such term in the Partnership Agreement. 
  
 “Tax” or “Taxes” means any taxes, assessments, fees and other governmental charges imposed by any Governmental Authority, including
without limitation income, profits, gross receipts, net proceeds, alternative or add-on minimum, ad valorem, value added, turnover, sales, use, property, personal property (tangible and intangible), environmental, stamp, leasing, lease, user,
excise, duty, franchise, capital stock, transfer, registration, license, withholding, social security (or similar), unemployment, disability, payroll, employment, fuel, excess profits, occupational, premium, windfall profit, severance, estimated, or
other charge of any kind whatsoever, including any interest, penalty, or addition thereto, whether disputed or not. 
  

 4 

 “Tax Returns” means any return, declaration, report, claim for refund or information return or
statement relating to Taxes, including any schedule or attachment thereto, and including any amendment thereof. 
  
 “Testing Period” shall have the meaning ascribed to such term in Section 382(i) of the Code. 
  
 “Transfer” shall have the meaning ascribed to such term in Section
3.6(a). 
  
 “Treasury Regulations” means the regulations
of the U.S. Department of Treasury promulgated pursuant to the Code. 
  
 “Units” shall mean the Common Units and Subordinated Units. 
  
 ARTICLE II 
 NONCOMPETITION 
  
 Section 2.1 Restricted Businesses. For as long as the general partner of the Partnership is an Affiliate of the MDC
Entities (it being acknowledged and agreed that the General Partner is an Affiliate of the MDC Entities as of the date hereof), each of the MDC Entities shall be prohibited from engaging (whether directly or through the acquisition of or investment
in equity or debt interests in any Person) in any business having assets engaged in the following businesses (each a “Restricted Business”): owning or operating cemeteries or funeral homes, or selling cemetery or funeral home products or
services, in any state or territory of the United States (other than the ownership or operation of assets solely on behalf of a member of the Partnership Group). 
  
 Section 2.2 Scope of Restricted Business Prohibition. Except as provided in Section 2.1, each MDC Entity shall be
free to engage (whether directly or through the acquisition of or investment in equity or debt interests in any Person) in any business activity whatsoever, including those that may be in direct competition with any of the Partnership Entities.

  
 Section 2.3 Enforcement. Each MDC Entity acknowledges
and agrees that the Partnership Entities do not have an adequate remedy at law for the breach by any MDC Entity of the covenants or agreements set forth in this Article II, and that any breach by any MDC Entity of the covenants or agreements set
forth in this Article II would result in irreparable injury to the Partnership Entities. Each MDC Entity further acknowledges and agrees that any Partnership Entity may, in addition to the other remedies that may be available to the Partnership
Entities, file a suit in equity to enjoin any MDC Entity from such breach, and each MDC Entity consents to the issuance of injunctive relief under this Agreement. 
  
 ARTICLE III 
 INDEMNIFICATION 
  
 Section 3.1 Indemnification
by CFSI LLC for Successor and Other Liability. Subject to the other provisions of this Article III, CFSI LLC shall indemnify, defend and hold harmless the Partnership Entities from and against any Losses suffered or incurred by reason of or
arising out of or otherwise relating to liability for (a) all federal, state and local income Tax liabilities 

  

 5 

 
attributable to the operation of the Conveyed Assets prior to the Closing Date and (b) Formation Taxes, including, without limitation, liability for Taxes
under U.S. Treasury Regulation Section 1.1502-6 (or any similar provision of state or local law) as a transferee or successor, by contract or otherwise, in excess of the Estimated Formation Taxes. The indemnification obligation under this Section
3.1 shall continue until the later of (i) the expiration of all applicable statutes of limitation (including any extensions thereof) relating to the filing by the Predecessor Entities of all Tax Returns relating to the Formation Transactions and
(ii) the ultimate resolution of all indemnification claims pursuant to this Section 3.1 that were timely made pursuant to Section 3.4(g), including the full discharge by CFSI LLC of all indemnification obligations arising from such claims.

  
 Section 3.2 Indemnification by CFSI LLC for an NOL
Limitation Event. 
  
 (a) Upon the occurrence
of an NOL Limitation Event, CFSI LLC or its successor shall indemnify, defend and hold harmless the Partnership Entities for any increases in federal, state and local income Tax liabilities of the Partnership Entities attributable to the reduction
or elimination of NOL Carryovers otherwise available to the Partnership Entities on the Closing Date. The indemnification obligations under this Section 3.2 shall continue until the later of (i) the expiration of all applicable statutes of
limitations (including any extensions thereof) relating to the filing by the Predecessor Entities of all Tax Returns relating to the Formation Transactions, (ii) the ultimate resolution of all inquiries from or instigations of proceedings by
Governmental Authorities for which notice was required to be given by the Indemnifying Party pursuant to Section 3.4(c), including the full discharge by CFSI LLC of all indemnification obligations arising from inquiries or proceedings and (iii) the
ultimate resolution of all indemnification claims pursuant to this Section 3.2 that were timely made pursuant to Section 3.4(c), including the full discharge by CFSI LLC of all indemnification obligations arising from such claims. 
  
 (b) The indemnification obligations under this Section 3.2
shall be an amount equal to: 
  
 (i) The excess,
if any, of (A) the Actual Aggregate Income Tax Due of the Partnership Entities over (B) the Notional Aggregate Income Tax Due of the Partnership Entities. The indemnification obligations under this Section 3.2(b)(i) shall be calculated, measured and
applied for each taxable year of the Partnership Entities, including taxable years prior to, during and after the taxable year in which the NOL Limitation Event occurs, until the expiration of the NOL Carryover Period (measured from the earliest
period affected by the NOL Limitation Event); or 
  
 (ii) At the option of CFSI LLC, CFSI LLC may make payments in satisfaction of its indemnification obligations under this Section 3.2 with respect to increases in federal income Tax liabilities, as well as state and local income Tax
liabilities, which payments with respect to state and local income Tax liabilities may be made in satisfaction of indemnification obligations under this Section 3.2 at different times as those made in satisfaction of any federal income Tax
liabilities, equal to amounts determined by, and in the sole discretion of, the Conflicts Committee of the Partnership. Such payments may be satisfied in multiple 

  

 6 

	 	 
installments to the extent, and on a schedule, permitted by the Conflicts Committee of the Partnership. 

  
 Section 3.3 Indemnification by the Partnership Entities. The
Partnership Entities shall, jointly and severally, indemnify, defend and hold harmless the MDC Entities from and against all Losses suffered or incurred by the MDC Entities arising out of or relating to the Conveyed Assets, whether before, on or
after the Closing Date, except with respect to matters for which the Partnership Entities are entitled to indemnification under Section 3.1 and Section 3.2 (without regard to any limitations as to time). 
  
 Section 3.4 Indemnification Procedures. 
  
 (a) As used in this Section 3.4, the term “Indemnifying
Party” refers to CFSI LLC, in the case of any indemnification obligation arising under Section 3.1 or Section 3.2, and to the Partnership Entities, in the case of any indemnification obligation arising under Section 3.3, and the term
“Indemnified Party” refers to the Partnership Entities, in the case of any indemnification obligation arising under Section 3.1 or Section 3.2, and to the MDC Entities, in the case of any indemnification obligation arising under Section
3.3. 
  
 (b) The Indemnified Party agrees that
promptly after it becomes aware of facts giving rise to a claim for indemnification under Section 3.1 or Section 3.3, it will provide notice thereof in writing to the Indemnifying Party, specifying the nature of and specific basis for such claim.

  
 (c) Under Section 3.2, the Indemnifying Party
shall promptly notify the Indemnified Party upon the occurrence of any inquiry from or instigation of proceedings by a Governmental Authority that could reasonably be expected to lead to or result in an NOL Limitation Event, and that occurs prior to
the expiration of the applicable statutes of limitations (including any extension thereof) relating to the filing by the Predecessor Entities of all Tax Returns relating to the Formation Transactions. Thereafter, the Indemnifying Party agrees to
keep the Indemnified Party informed as to the status of such inquiry or proceeding. Upon the occurrence of an NOL Limitation Event, the Indemnifying Party shall promptly provide notice thereof in writing to the Indemnified Party. The Indemnifying
Party shall have (30) thirty days from the date of the occurrence of an NOL Limitation Event to deliver to the Indemnified Party and the Conflicts Committee of the Partnership its preliminary written notice to elect to make payment pursuant to
Section 3.2(b)(ii) in satisfaction of its indemnification obligation under Section 3.2. The Conflicts Committee of the Partnership shall then have (90) ninety days to deliver to the Indemnifying Party its written notice of the amount to be
indemnified against under Section 3.2(b)(ii) with respect to such taxable periods. The Indemnifying Party shall then have (20) twenty days to deliver to the Indemnified Party its final written notice to elect to make payment pursuant to Section
3.2(b)(ii) in the amount determined by the Conflicts Committee of the Partnership and the Indemnifying Party shall promptly pay the Indemnified Party the amount to be indemnified against under Section 3.2(b)(ii) in accordance with the schedule
permitted by the Conflicts Committee. If the Indemnifying Party does not elect to make payment pursuant to Section 3.2(b)(ii) and to the extent the indemnification obligation under Section 3.2 relates to taxable periods prior to the taxable period
in which the NOL Limitation Event occurs, the Indemnified Party shall then have (90) ninety days to deliver to the Indemnifying Party its good 

  

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faith written notice of the amount to be indemnified against under Section 3.2(b)(i) with respect to such prior taxable period. To the extent the
indemnification obligation under Section 3.2 relates to taxable periods during or after the taxable period in which the NOL Limitation Event occurs, the Indemnified Party shall then have (120) one hundred twenty days after the end of each such
taxable year to deliver to the Indemnifying Party its good faith written notice of the amount to be indemnified against under Section 3.2(b)(i) with respect to such taxable periods. Receipt of any such notices setting out the amounts to be
indemnified against by the Indemnifying Party under Section 3.2(b)(i) shall be conclusive against the Indemnifying Party in all respects (20) twenty days after receipt by the Indemnifying Party of such notices and the Indemnifying Party shall
promptly pay the Indemnified Party the amount to be indemnified against under Section 3.2(b)(i), unless within such period the Indemnifying Party sends the Indemnified Party a notice disputing the amount of such claim. Such notice of dispute shall
describe the basis for such objection and the amount of the claim as to which the Indemnifying Party does not believe should be subject to indemnification. Upon receipt of any such notice of objection, both the Indemnified Party and the Indemnifying
Party shall use all reasonable efforts to cooperate and arrive at a mutually acceptable resolution of such dispute with the next (30) thirty days. If a mutually acceptable resolution cannot be reached between the Indemnified Party and the
Indemnifying Party within such 30-day period, the matter shall be referred to the CPA Mediator. Within (30) thirty days after the date of such referral, the CPA Mediator shall render its decision with respect to the differences, and such decision
shall be final and binding on the Indemnified Party and the Indemnifying Party. 

  
 (d) The Indemnifying Party shall have the right to control, at its sole cost and expense, all aspects of the defense of (and any
counterclaims with respect to) any claims brought against the Indemnified Party that are covered by the indemnification provisions under this Article III, including, without limitation, the selection of counsel, determination of whether to appeal
any decision of any Governmental Authority and the settling of any such matter or any issues relating thereto; provided, however, that no such settlement shall be entered into without the consent of the Indemnified Party (which consent shall not be
unreasonably withheld) unless it includes a full release of the Indemnified Party from such matter or issues, as the case may be. 
  
 (e) The Indemnified Party agrees to cooperate fully with the Indemnifying Party with respect to all aspects of the defense of any claims
covered by the indemnification provisions under this Article III, including, without limitation, the prompt furnishing to the Indemnifying Party of any correspondence or other notice relating thereto that the Indemnified Party may receive,
permitting the name of the Indemnified Party to be utilized in connection with such defense, the making available to the Indemnifying Party of any files, records or other information of the Indemnified Party that the Indemnifying Party considers
relevant to such defense and the making available to the Indemnifying Party of any employees of the Indemnified Party; provided, however, that in connection therewith the Indemnifying Party agrees to use reasonable efforts to minimize
the impact thereof on the operations of the Indemnified Party and further agrees to maintain the confidentiality of all files, records and other information furnished by the Indemnified Party pursuant to this Section 3.4. In no event shall the
obligation of the Indemnified Party to cooperate with the Indemnifying Party as set forth in the immediately preceding sentence be construed as imposing upon the Indemnified Party an obligation to hire and pay for counsel in connection with the
defense of any claims covered by the indemnification set forth in this Article III; provided, however, that the Indemnified Party may, at its own option, 

  

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cost and expense, hire and pay for counsel in connection with any such defense. The Indemnifying Party agrees to keep any such counsel hired by the
Indemnified Party informed as to the status of any such defense, but the Indemnifying Party shall have the right to retain sole control over such defense. 

  
 (f) In determining the amount of any loss, cost, damage or expense for which the Indemnified Party is
entitled to indemnification under this Agreement, (i) the gross amount of the indemnification will be reduced by (A) any insurance proceeds realized by the Indemnified Party, and such correlative insurance benefit shall be net of any incremental
insurance premium that becomes due and payable by the Indemnified Party as a result of such claim and (B) all amounts recovered by the Indemnified Party under contractual indemnities from third Persons and (ii) the extent of the Losses suffered by
the Indemnified Party with respect to claims under Section 3.1 shall be established by the entry of a final nonappealable judgment or decree by a court or the execution of a final and binding settlement agreement with any Governmental Authority
having jurisdiction thereof. 
  
 (g) The date on
which written notification of a claim for indemnification is received by the Indemnifying Party shall determine whether such claim is timely made within the limitations specified in Section 3.1. No claim for indemnification pursuant to Section 3.1
shall be brought or made unless, prior to thirty (30) days after the expiration of all applicable statutes of limitation (including any extensions thereof) relating to the filing by the Predecessor Entities of all Tax Returns relating to the
Formation Transactions, the Indemnified Party shall have delivered to the Indemnifying Party a good faith written notice to the effect that the Indemnified Party has incurred Losses entitled to be indemnified against under Section 3.1, which notice
specifies in reasonable detail the amount of such Losses and the nature and specific basis of such claim. 
  
 (h) Any action, notice, consent, approval or waiver that is required to be taken or given or may be taken or given by a Partnership Entity
pursuant to this Article III shall be taken or given by the Conflicts Committee of the Partnership. 
  
 Section 3.5 Existence of CFSI LLC. CFSI LLC shall remain in existence until the later of (i) the expiration of all applicable statutes of
limitations (including extension) relating to the filing by the Predecessor Entities of all Tax Returns relating to the Formation Transactions or (ii) the ultimate resolution of all indemnification claims pursuant to Section 3.1 and Section 3.2 that
were timely made pursuant to Section 3.4(g) and Section 3.4(c), respectively, including the full discharge by CFSI LLC of all indemnification obligations arising from such claims. 
  
 Section 3.6 Limitations on Transfers and Incurrence of Indebtedness of CFSI LLC. 
  
 (a) Until all of its obligations under this Agreement have
been discharged in full (the “Discharge Date”), CFSI LLC shall not be permitted to (i) sell, transfer, assign, gift, exchange, pledge, hypothecate, mortgage, encumber or dispose of, by law or otherwise (each, a “Transfer”), any
interest in the General Partner or the Partnership (other than a Transfer of Common Units and Subordinated Units to the Partnership upon the redemption of such Common Units and Subordinated Units by the Partnership upon the exercise of the
Over-Allotment Option), except as otherwise provided in this Section 3.6, or (ii) contract, create, incur, assume or 

  

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suffer to exist any indebtedness or other liability of CFSI LLC, or (iii) guarantee any obligation of any other Person. Any Transfer or purported Transfer by
CFSI LLC of any interest in the General Partner or the Partnership not made in accordance with this Section 3.6 shall be null and void. 

  
 (b) CFSI LLC shall not Transfer any Subordinated Units held by it until the expiration of three years and thirty-six days after the date
of this Agreement (the “Restricted Period”), except as provided in Section 3.6(a)(i) or Section 3.6(e). 
  
 (c) Subject to Section 3.6(b) and Section 3.6(d), at any time and from time to time prior to the Discharge Date, CFSI LLC shall be
permitted to Transfer any or all of its interest in the General Partner or the Partnership so long as immediately after giving effect to such Transfer CFSI LLC holds assets (including equity interests) having an aggregate Fair Market Value (as
defined below) of at least $35.0 million. The determination of such aggregate Fair Market Value shall be made at the time of the proposed Transfer, giving pro forma effect to the proposed Transfer (but excluding the Fair Market Value of any
consideration to be received by CFSI LLC for the interests proposed to be Transferred), and otherwise in accordance with the foregoing provisions: 
  
 (i) the Fair Market Value of a Common Unit at any date shall mean, in the event the Common Units are traded in the over-the-counter market
or on a national or regional securities exchange, the closing price per Common Unit on the trading day immediately preceding the date of the proposed Transfer. The closing price for such trading day shall be the last reported sale price regular way
or, in case no such reported sale takes place on such day, the average of the last closing bid and asked prices regular way, in either case on the principal national securities exchange on which the Common Units are listed or admitted to trading, or
if not listed or admitted to trading on any national securities exchange, the closing sale price for such trading day reported by NASDAQ, if the Common Units are traded over-the-counter and quoted in the National Market System, or if the Common
Units are so traded, but not so quoted, the average of the closing reported bid and asked prices of the Common Units as reported by NASDAQ or any comparable system, or, if the Common Units are not listed on NASDAQ or any comparable system, the
average of the closing bid and asked prices as furnished by two members of the National Association of Securities Dealers, Inc. selected from time to time by the Conflicts Committee of the Partnership for that purpose in its sole discretion. If the
Common Units are not publicly traded or not traded in such manner that the quotations referred to above are available for the date specified hereunder, the Fair Market Value of a Common Unit shall be deemed to be the fair market value per Common
Unit as determined by the Conflicts Committee of the Partnership in its sole discretion; 
  
 (ii) the Fair Market Value of a Subordinated Unit at any date shall be equal to 75% of the Fair Market Value of a Common Unit at such date
(determined in accordance with clause (i) above); 
  
 (iii) the Fair Market Value of any Class A membership interest in the General Partner at any date shall be equal to the product of (A) a fraction, the numerator of which is the number of Class A units of the General Partner held by CFSI LLC
as of such date and the denominator of which is the total number of outstanding Class A units in the General 

  

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Partner held by all Class A members of the General Partner as of such date, (B) 50% of the implied number of Common Units representing the General
Partner’s general partner interest in the Partnership as of such date and (C) the Fair Market Value of a Common Unit as of such date (determined in accordance with clause (i) above); provided, however, that CFSI LLC may instead request
that the Fair Market Value of its Class A membership interest in the General Partner be determined by an independent third party valuation expert, which expert shall be selected by the Conflicts Committee of the Partnership in its sole discretion,
whose fees and expenses shall be borne solely by CFSI LLC and whose determination shall be final and conclusive; 
  
 (iv) the Fair Market Value of any other assets or property shall be determined by the Conflicts Committee of the Partnership in its sole
discretion; and 
  
 (v) any cash distributions
made by the Partnership to CFSI LLC in respect of any Common Units or Subordinated Units held by CFSI LLC or by the General Partner to CSFI LLC in respect of any membership interests in the General Partner held by CSFI LLC (in any such case, whether
or not such distributions have been distributed by CFSI LLC to its members) shall be excluded from the determination of such aggregate Fair Market Value. 
  
 (d) Following the Restricted Period and subject to Section 3.6(c), CFSI LLC shall be permitted to Transfer (in one or a series of
transactions) up to 49% of the total outstanding interests in the Partnership (which 49% shall be based on value and shall include any interest in the Partnership held directly by CFSI LLC or indirectly by CFSI LLC through its ownership interest in
the General Partner or otherwise) in any Testing Period. The amount of total outstanding interests in the Partnership that CFSI LLC is permitted to Transfer pursuant to this Section 3.6(d) may be increased if CFSI LLC obtains either (i) an opinion
of counsel that the proposed Transfer “will” not result in a Section 382 Ownership Change (as hereinafter defined), which counsel and opinion shall be acceptable to the Conflicts Committee of the Partnership in its sole discretion, or (ii)
a ruling from the IRS that the proposed Transfer will not result in a Section 382 Ownership Change, in either of which cases the amount of total outstanding interests in the Partnership that CFSI LLC is permitted to Transfer pursuant to this Section
3.6(d) shall be increased to the extent permitted by the opinion of counsel or IRS ruling, as the case may be. A “Section 382 Ownership Change” shall occur if, immediately after an “owner shift” (as defined in Section 382(g) of
the Code) involving a 5% Shareholder or an “equity structure shift” (as defined in Section 382(g) of the Code), the percentage of stock of any Subsidiary of the Partnership deemed under Section 382 of the Code to be owned by one or more 5%
Shareholders has increased by more than 50 percentage points over the lowest percentage of stock deemed owned by such 5% Shareholders at any time during a Testing Period. The amount of total outstanding interests in the Partnership that CFSI LLC is
permitted to Transfer pursuant to this Section 3.6(d) shall be decreased if (x) CFSI LLC has Knowledge that a Transfer of an amount of outstanding interests in the Partnership that is equal to or less than 49% of the total outstanding interests in
the Partnership (the “Known Threshold Amount”) will result in a Section 382 Ownership Change, in which case the amount of total outstanding interests in the Partnership that CFSI LLC is permitted to Transfer pursuant to this Section 3.6(d)
shall be any amount of outstanding interests in the Partnership that is less than the Known Threshold Amount, or (y) CFSI LLC has Knowledge of the existence of one or more owners (either directly or through application of the constructive ownership
rules of Section 382 of the Code) of 5% or 

  

 11 

 
more of the total outstanding interests in the Partnership (the “Other Known Interests”), which Other Known Interests, when aggregated with the
total outstanding interests in the Partnership held by CFSI LLC, exceeds 49% of the total outstanding interests in the Partnership, in which case the amount of total outstanding interests in the Partnership that CFSI LLC is permitted to Transfer
pursuant to this Section 3.6(d) shall be reduced by the amount of such Other Known Interests. For purposes of clause (y), CFSI LLC shall be deemed to have Knowledge of all information filed with the Securities and Exchange Commission pursuant to
Section 13(d), Section 13(f) and Section 13(g) of the Securities Exchange Act of 1934, as amended, and the regulations promulgated thereunder, including without limitation any information filed on Schedule 13D, Schedule 13F or Schedule 13G.

  
 (e) Notwithstanding the provisions of Section
3.6(b) and Section 3.6(d) but subject to Section 3.6(c), if at any time after the date hereof the remaining balance of federal NOL Carryovers are less than $1.0 million in the aggregate, CFSI LLC shall be permitted to Transfer any or all of its
interests in the Partnership without limitation. 
  
 ARTICLE IV

 MISCELLANEOUS 
  
 Section 4.1 Choice of Law; Submission to Jurisdiction. This Agreement shall be subject to and governed by the laws of the State of Delaware,
excluding any conflicts-of-law rule or principle that might refer the construction or interpretation of this Agreement to the laws of another state. Each party hereby submits to the jurisdiction of the state and federal courts in the State of
Pennsylvania and to venue in Philadelphia, Pennsylvania. 
  
 Section 4.2 Notice. All notices or requests or consents provided for or permitted to be given pursuant to this Agreement must be in writing and must be given by depositing same in the United States mail, addressed to the Person to be
notified, postpaid, and registered or certified with return receipt requested or by delivering such notice in person or by telecopier or telegram to such party. Notice given by personal delivery or mail shall be effective upon actual receipt. Notice
given by telegram or telecopier shall be effective upon actual receipt if received during the recipient’s normal business hours, or at the beginning of the recipient’s next business day after receipt if not received during the
recipient’s normal business hours. All notices to be sent to a party pursuant to this Agreement shall be sent to or made at the address set forth below, or at such other address as such party may stipulate to the other parties in the manner
provided in this Section 4.2: 
  
 If to any MDC Entity, to:

  
 c/o 525 Middlefield Road 
 Suite 210 
 Menlo Park, CA 94025 

Facsimile: (650) 854-0853 
 Attention:
Robert B. Hellman, Jr. 
  

 12 

 and, if such MDC Entity is CFSI LLC, to: 
  
 c/o 155 Rittenhouse 
 Bristol, PA 19007 
 Facsimile: (215) 826-2851

 Attention: Chief Executive Officer 
  
 If to any Partnership Entity, to: 
  
 c/o StoneMor Partners L.P. 
 155 Rittenhouse
Circle 
 Bristol, Pennsylvania 19007 
 Facsimile: (215) 826-2851 
 Attention: Chief Executive Officer 
  
 with a copy (which shall not constitute notice) to: 
  
 Blank Rome LLP 
 One Logan Square 
 Philadelphia, Pennsylvania 19103 
 Facsimile: (215) 569-5555 
 Attention: Frederick D. Lipman 
  
 Section 4.3 Entire Agreement; Supersedure. This Agreement constitutes
the entire agreement of the parties relating to the matters contained herein, superseding all prior contracts or agreements, whether oral or written, relating to the matters contained herein. 
  
 Section 4.4 Effect of Waiver or Consent. No waiver or consent, express
or implied, by any party to or of any breach or default by any Person in the performance by such Person of its obligations hereunder shall be deemed or construed to be a consent or waiver to or of any other breach or default in the performance by
such Person of the same or any other obligations of such Person hereunder. Failure on the part of a party to complain of any act of any Person or to declare any Person in default, irrespective of how long such failure continues, shall not constitute
a waiver by such party of its rights hereunder until the applicable statute of limitations period has run. 
  
 Section 4.5 Amendment or Modification. This Agreement may be amended or modified from time to time only by the written agreement of all the parties
hereto; provided, however, that the Partnership may not, without the prior approval of the Conflicts Committee, agree to any amendment or modification of this Agreement that the General Partner determines will adversely affect the holders of Common
Units. Each such instrument shall be reduced to writing and shall be designated on its face an “Amendment” or an “Addendum” to this Agreement. 
  
 Section 4.6 Assignment. No party shall have the right to assign its rights or obligations under this Agreement
without the consent of the other parties hereto. Any assignment in contravention of this Section shall be null and void and of no force and effect. 
  

 13 

 Section 4.7 Counterparts. This Agreement may be executed in any number of counterparts with the
same effect as if all signatory parties had signed the same document. All counterparts shall be construed together and shall constitute one and the same instrument. 
  
 Section 4.8 Severability. If any provision of this Agreement or the application thereof to any person or circumstance
shall be held invalid or unenforceable to any extent, the remainder of this agreement and the application of such provision to other persons or circumstances shall not be affected thereby and shall be enforced to the greatest extent permitted by
law. 
  
 Section 4.9 Construction. All references to
Article numbers and Section numbers refer to Articles and Sections of this Agreement, unless the context otherwise requires. 
  
 Section 4.10 Further Assurances. In connection with this Agreement and all transactions contemplated by this Agreement, each signatory party hereto
agrees to execute and deliver such additional documents and instruments and to perform such additional acts as may be necessary or appropriate to effectuate, carry out and perform all of the terms, provisions and conditions of this Agreement and all
such transactions. 
  
 Section 4.11 No Rights of Limited
Partners, Assignees, and Third Parties. The provisions of this Agreement are enforceable solely by the parties to this Agreement, and no Limited Partner, Assignee or other Person shall have the right, separate and apart from the parties hereto,
to enforce any provision of this Agreement or to compel any party to this Agreement to comply with the terms of this Agreement. 
  
 [Signature Pages Follow] 
  

 14 

 IN WITNESS WHEREOF, the parties have executed this Agreement on, and effective as of, the Closing Date.

  

					
	McCOWN DE LEEUW & CO. IV, L.P.
	
	By: MDC Management Company IV, LLC, its general partner
		
	 By:
	 	 /s/    Robert B. Hellman, Jr.

	 	 	 Name:
	 	 Robert B. Hellman, Jr.

	 	 	 Title:
	 	 CEO and Managing Director

	
	McCOWN DE LEEUW & CO. IV ASSOCIATES, L.P.
	
	By: MDC Management Company IV, LLC, its general partner
		
	 By:
	 	 /s/    Robert B. Hellman, Jr.

	 	 	 Name:
	 	 Robert B. Hellman, Jr.

	 	 	 Title:
	 	 CEO and Managing Director

	
	MDC MANAGEMENT COMPANY IV, LLC
		
	 By:
	 	 /s/    Robert B. Hellman, Jr.

	 	 	 Name:
	 	 Robert B. Hellman, Jr.

	 	 	 Title:
	 	 CEO and Managing Director

	
	DELTA FUND LLC
		
	 By:
	 	 /s/    Robert B. Hellman, Jr.

	 	 	 Name:
	 	 Robert B. Hellman, Jr.

	 	 	 Title:
	 	 CEO and Managing Director

  
 Signature Page to
Omnibus Agreement 
  

 IN WITNESS WHEREOF, the parties have executed this Agreement on, and effective as of, the Closing Date.

  

					
	CFSI LLC
		
	 By:
	 	/S/    LAWRENCE MILLER
	 	 	 Name:
	 	 Lawrence Miller

	 	 	 Title:
	 	 President and CEO

	
	STONEMOR GP LLC
		
	 By:
	 	/S/    LAWRENCE MILLER
	 	 	 Name:
	 	 Lawrence Miller

	 	 	 Title:
	 	 President and CEO

	
	STONEMOR PARTNERS L.P.
	
	By: STONEMOR GP LLC, its general partner
		
	 By:
	 	/S/    LAWRENCE MILLER
	 	 	 Name:
	 	 Lawrence Miller

	 	 	 Title:
	 	 President and CEO

	
	STONEMOR OPERATING LLC
		
	 By:
	 	/S/    LAWRENCE MILLER
	 	 	 Name:
	 	 Lawrence Miller

	 	 	 Title:
	 	 President and CEO

  
 Signature Page to
Omnibus Agreement 
  

  
 Exhibit A

  

			
	 Estimated Formation Taxes
	  	$600,000

  

 A-1 

  
 Exhibit B

  

					
	Federal	  	 	 	 
		
	 NOL Carryovers from the Operations of the Predecessor Entities
	  	$	24,697,692	 
	 Estimated NOL Carryovers from Formation Transactions
	  	$	11,167,761	 
	 	  	
	
	

	 Total NOL Carryovers
	  	$	35,865,453	 
		
	State	  	 	 	 
		
	 Alabama NOL Carryovers
	  	 	 	 
	 NOL Carryovers from the Operations of the Predecessor Entities
	  	$	694,179	 
	 Estimated NOL Carryover from Formation Transactions
	  	$	0	 
	 	  	
	
	

	 Total NOL Carryovers
	  	$	694,179	 
	 Connecticut NOL Carryovers
	  	 	 	 
	 NOL Carryovers from the Operations of the Predecessor Entities
	  	$	662,503	 
	 Estimated NOL Carryover from Formation Transactions
	  	$	0	 
	 	  	
	
	

	 Total NOL Carryovers
	  	$	662,503	 
	 Delaware NOL Carryovers
	  	 	 	 
	 NOL Carryovers from the Operations of the Predecessor Entities
	  	$	589,957	 
	 Estimated NOL Carryover from Formation Transactions
	  	$	0	 
	 	  	
	
	

	 Total NOL Carryovers
	  	$	589,957	 
	 Georgia NOL Carryovers
	  	 	 	 
	 NOL Carryovers from the Operations of the Predecessor Entities
	  	$	0	 
	 Estimated NOL Carryover from Formation Transactions
	  	$	0	 
	 	  	
	
	

	 Total NOL Carryovers
	  	$	0	 
	 Maryland NOL Carryovers
	  	 	 	 
	 NOL Carryovers from the Operations of the Predecessor Entities
	  	$	7,503,304	 
	 Estimated NOL Carryover from Formation Transactions
	  	$	(3,502,841	)
	 	  	
	
	

	 Total NOL Carryovers
	  	$	4,000,463	 
	 New Jersey NOL Carryovers
	  	 	 	 
	 NOL Carryovers from the Operations of the Predecessor Entities
	  	$	753,021	 
	 Estimated NOL Carryover from Formation Transactions
	  	$	(32,934	)
	 	  	
	
	

	 Total NOL Carryovers
	  	$	720,087	 

  

 B-1 

					
	 New York NOL Carryovers
	  	 	 	 
	 NOL Carryovers from the Operations of the Predecessor Entities
	  	$	1,432	 
	 Estimated NOL Carryover from Formation Transactions
	  	$	0	 
	 	  	
	
	

	 Total NOL Carryovers
	  	$	1,432	 
	 Ohio NOL Carryovers
	  	 	 	 
	 NOL Carryovers from the Operations of the Predecessor Entities
	  	$	532,008	 
	 Estimated NOL Carryover from Formation Transactions
	  	$	(339,601	)
	 	  	
	
	

	 Total NOL Carryovers
	  	$	192,407	 
	 Pennsylvania NOL Carryovers
	  	 	 	 
	 NOL Carryovers from the Operations of the Predecessor Entities
	  	$	28,696,720	 
	 Estimated NOL Carryover from Formation Transactions
	  	$	0	 
	 	  	
	
	

	 Total NOL Carryovers
	  	$	28,696,720	 
	 Rhode Island NOL Carryovers
	  	 	 	 
	 NOL Carryovers from the Operations of the Predecessor Entities
	  	$	847,308	 
	 Estimated NOL Carryover from Formation Transactions
	  	$	0	 
	 	  	
	
	

	 Total NOL Carryovers
	  	$	847,308	 
	 Tennessee NOL Carryovers
	  	 	 	 
	 NOL Carryovers from the Operations of the Predecessor Entities
	  	$	0	 
	 Estimated NOL Carryover from Formation Transactions
	  	$	0	 
	 	  	
	
	

	 Total NOL Carryovers
	  	$	0	 
	 Virginia NOL Carryovers
	  	 	 	 
	 NOL Carryovers from the Operations of the Predecessor Entities
	  	$	0	 
	 Estimated NOL Carryover from Formation Transactions
	  	$	0	 
	 	  	
	
	

	 Total NOL Carryovers
	  	$	0	 
	 West Virginia NOL Carryovers
	  	 	 	 
	 NOL Carryovers from the Operations of the Predecessor Entities
	  	$	12,915,144	 
	 Estimated NOL Carryover from Formation Transactions
	  	$	0	 
	 	  	
	
	

	 Total NOL Carryovers
	  	$	12,915,144	 

  

 B-2Employment Agreement

  
 Exhibit 10.5

  
 EMPLOYMENT AGREEMENT 
  
 Agreement effective as of September 20, 2004, (the “Effective
Date”), by and between StoneMor GP, LLC, a Delaware limited liability company (the “Company”), and Lawrence Miller (the “Executive”). 
  

W I T N E S S E T H: 
  
 WHEREAS, the Executive and the Company are parties to an employment agreement effective as of March 31, 1999, which is currently in effect (the
“Employment Arrangement”); and 
  
 WHEREAS, upon the
Effective Date it is intended that the Employment Arrangement be amended and restated as set forth herein; 
  
 NOW, THEREFORE, in consideration of the mutual covenants hereinafter set forth, the parties hereto agree as follows: 
  

	 	1.	Term of Employment 

  
 Commencing on the Effective Date, the Company shall employ the Executive, and the Executive shall continue employment and shall serve the Company, in such
capacities, with such duties and authority, for such period, at such level of compensation and with such benefits, and upon such other terms and subject to such other conditions, as are hereinafter set forth. The term of the Executive’s
employment hereunder shall commence on the Effective Date and, unless previously terminated as provided herein, shall continue in effect for one year from the Effective Date (the “Employment Period”); provided, however, that
the Employment Period shall automatically be extended for successive one-year additional periods unless, ninety (90) days prior to expiration of the Employment Period (if extended and if applicable), the Company or the Executive shall have given
written notice to the other not to renew the Employment Period. 
  

	 	2.	Capacities, Duties and Authority 

  
 2.01. Effective on the Effective Date and throughout the Employment Period, the Executive shall serve as President and Chief Executive
Officer. 
  
 2.02. In his capacity as President
and Chief Executive Officer of the Company, the Executive shall have such authority, perform such duties, discharge such responsibilities and render such services as are consistent with the job and with directives from the Board of Directors of the
Company (“Company’s Board”). 
  
 2.03. The Executive shall render his services diligently, faithfully and to the best of his ability, devoting thereto all of his business time, energy and skills on an exclusive basis and, without the prior written consent of the
Company’s Board, the Executive shall not render services to or for the account of himself or any other person, firm or corporation other than the Company. 
  

	 	3.	Compensation 

  
 3.01. The Executive shall be paid a base salary during the Employment Period at the annual rate of three hundred and fifty thousand
Dollars ($350,000), payable in accordance with the regular payroll practices of the Company. The Company’s Board or its Compensation Committee (“Compensation Committee”) shall annually review the Executive’s performance and
determine, in its sole discretion, whether or not to increase the Executive’s base salary and, if so, the amount of such increase. The Executive’s base salary as in effect from time to time is hereinafter referred to as the “Base
Salary”. 
  
 3.02. The Executive shall be
eligible for an annual bonus based upon satisfaction of mutually agreed upon targets established by the Company and approved by the Company’s Board or the Compensation Committee on or around January 31 of each year for such year. The Executive
may, at the Company’s discretion, receive a bonus of up to 50% of Base Salary for meeting budgeted goals if no such mutually agreed targets are established. 
  
 3.03. The Executive shall be entitled to participate in any of the Company’s other discretionary bonus
or performance-based bonus programs for senior executives of the Company on such terms and conditions as determined in the discretion of the Company’s Board or the Compensation Committee. 
  
 3.04. On or before January 15 of each year, the Executive
shall be paid an amount equal to one-half of the tax imposed under Section 1401 of the Internal Revenue Code of 1986, as amended, on all amounts paid or accrued to or for the benefit of the Executive under Section 3 (including this Section 3.04) or
Section 4 or Section 5 of this Agreement or allocated to the Executive with respect to the Executive’s ownership of any interest in the Company that constitute self-employment income of the Executive with respect to the immediately preceding
calendar year. 
  
 3.05. On or before January 15
of each year, the Executive shall be paid an amount equal to (a) all federal, state, and local income taxes on the excess of (i) any taxable income recognized by the Executive as a result of benefits provided to or for the benefit of the Executive
for the immediately preceding calendar year under Section 4 of this Agreement over (ii) the amount of taxable income that would have been recognized by the Executive as a result of benefits provided to or for the benefit of the Executive for the
immediately preceding calendar year under Section 4 of this Agreement if the Executive had been an employee and not a member of the Company, plus (b) an additional amount equal to all federal, state, and local income taxes on all payments made to
the Executive pursuant to this Section 3.05. 
  

	 	4.	Employee Benefit Programs 

  
 4.01. During the Employment Period, the Executive shall be entitled to vacation and sick leave generally made available to executive
personnel of the Company and to participate in and have the benefit of all group life, disability, dental, hospital, surgical and major medical insurance 

  

 2 

 
plans and programs and other employee benefit plans and programs as generally are made available to executive personnel of the Company pursuant to the terms
of said plans. 
  
 4.02. During the Employment
Period, the Executive shall be entitled to receive or participate in fringe benefit arrangements generally made available to executive personnel of the Company that provide automobile, club dues, tax services and financial planning in accordance
with the terms and conditions of such arrangements as may be in effect from time to time. 
  

	 	5.	Stock Options, Restricted Stock and Other Stock Awards 

  
 5.01. The Executive shall be entitled to participate in any stock or unit incentive plan adopted by the Company and approved by the
Stockholders or Unitholders of the Company. If a stock or unit program is adopted, the Executive will receive an allotment (grant) commensurate with his level of responsibility in relation to other grants as determined by the Company’s Board in
its sole discretion. 
  
 5.02. During the
Employment Period, the Executive shall be eligible to receive grants of restricted stock or units and other stock or unit awards (“Stock Awards”) in such amounts and subject to such terms as determined by the Company’s Board in its
sole discretion. 
  

	 	6.	Termination of Employment 

  
 6.01. The Executive’s employment hereunder shall terminate: 
  
 a. upon the death of the Executive; 
  
 b. upon the Disability of the Executive, which for the purposes of this Agreement shall mean his inability
because of physical or mental illness or incapacity, whether partial or total, with or without reasonable accommodation, to perform his duties under this Agreement, for a continuous period of at least six (6) months or for an aggregate of one
hundred eighty (180) days within any twelve (12) month period; or 
  
 c. for Cause at the option of the Company, exercisable by or upon the authority of the Company’s Board and effective immediately upon the giving by the Company to the Executive of written notice of such exercise,
which, for purposes of this Agreement, shall mean: 
  
 (i) fraud, willful misconduct or gross negligence which materially adversely affects the reputation or business activities of the Company or the Partnership and which continues after written notice thereof from the Board to the Person
stating with specificity the alleged conduct and, if requested by the Person within 10 days thereafter, the Person is afforded a reasonable opportunity to be heard before the Board; or 
  

 3 

 (ii) any chemical dependence that materially adversely affects a Person’s
performance of his duties and responsibilities to the Company and for which the Person fails to undertake and maintain treatment within 15 days after requested by the Company. 
  
 d. at the option of the Executive, effective ten (10) business days after the end of the cure period
provided below, (or such shorter period as the Company’s Board may elect by giving written notice to the Executive), in the event that the Executive has Good Reason, which for purposes of this Agreement shall mean the occurrence at any time of
any of the following without the Executive’s prior written consent: 
  
 i. removal from the position of President and Chief Executive Officer set forth in Section 2.01; 
  
 ii. the relocation of the Company’s principal office to a location outside a 75-mile radius of its current location in Bristol,
Pennsylvania; 
  
 iii. the assignment of duties
or responsibilities materially inconsistent with those customarily associated with the position held by the Executive or which materially impair the Executive’s abilities to perform his assigned duties or a material diminution of the
Executive’s position, authority, duties or responsibilities (other than an isolated action that is not taken in bad faith and is remedied by the Company promptly after receipt of written notice thereof from the Executive); 
  
 iv. a reduction in the Executive’s Base Salary payable
pursuant to Paragraph 3.01 hereof or a material reduction in the aggregate in the other material benefits provided the Executive hereunder; 
  
 v. the failure by the Company to obtain an agreement from any successor to assume and agree to perform this Agreement; or 
  
 vi. any willful failure or willful breach by the Company
(not covered by any of clauses (i) through (vi) above) of any of the material obligations of this Agreement. 
  
 For purposes of clause (vi) of this definition, no act, or failure to act, on the Company’s part shall be deemed “willful” unless done, or omitted to be done, by the Company not in good faith and
without reasonable belief that the Company’s act, or failure to act, was in the best interest of the Company. For the purposes of any clause of this definition, the Executive has five (5) business days from the occurrence of any event mentioned
herein to notify the Company’s Board of his intent to exercise his right to declare a “Good Reason”. If he fails to do so within five (5) business days, then the Executive will have waived his rights hereunder with respect to such
event. Upon receipt of such notice, the Company has thirty (30) days within which to “cure” such event, if curable, and if “cured” by the Company within such period, such event shall not constitute a Good Reason for purposes of
this Agreement. 
  

 4 

 e. at the option of the Executive, for a reason other than Good Reason, effective upon
thirty (30) days of the giving of written notice of such exercise. 
  
 6.02. Obligations of the Company upon Termination of Employment 
  
 a. Death. In the event of the Executive’s death during the Employment Period, the Employment Period shall end as of the date
of the Executive’s death and his estate and/or beneficiaries, as the case may be, shall be entitled to the following, as soon as practicable following the date of the Executive’s death: 
  
 i. Base Salary earned but not paid prior to the date of his
death; 
  
 ii. payment for all accrued but
unused vacation time up to the date of his death; 
  
 iii. payment for any bonus earned but deferred for any year prior to the year in which occurs the date of his death; 
  
 iv. a pro rata portion (based on the number of days worked) of the bonus payable under any bonus program in effect for the year in which
the Executive’s death occurs; provided, however, that the performance goals established under the applicable program with respect to the entire year in which the Executive’s death occurs are met payable in due course pursuant
to the terms of the plan; 
  
 v. immediate
vesting of and lapsing of restrictions on all unvested Stock Awards, if any, held by the Executive on the date of his death; 
  
 vi. immediate vesting of all Company stock options held by the Executive on the date of his death, with such options remaining
exercisable for the lesser of the original option term or twelve (12) months from the date of the Executive’s death; 
  
 vii. continuation of medical benefits for the Executive’s survivors covered by said benefits, if any, for a period of two (2) years;
and 
  
 viii. such additional benefits as may be
provided by the terms of the then existing plans, programs and/or arrangements of the Company. 
  
 b. Disability. If the Executive’s employment is terminated due to Disability during the Employment Period, either by the
Company or by the Executive, the Employment Period shall end as of the date of the termination of the Executive’s employment and the Executive shall be entitled to the following, as soon as practicable following the date of termination:

  
 i. Base Salary earned but not paid prior to
the date of the termination of the Executive’s employment; 
  

 5 

 ii. payment for all accrued but unused vacation time up to the date of the termination
of the Executive’s employment; 
  
 iii.
payment for any bonus earned but deferred for any year prior to the year in which occurs the date of the termination of the Executive’s employment; 
  
 iv. a pro rata portion (based on the number of days worked) of the bonus payable under any bonus program in effect for the year in which
the Executive’s termination of employment occurs; provided, however, that the performance goals established under the applicable program with respect to the entire year in which the Executive’s termination of employment
occurs are met, payable in due course pursuant to the terms of the plan; 
  
 v. immediate vesting of and lapsing of restrictions on all unvested Stock Awards, if any, held by the Executive on the date of his Disability; 
  
 vi. immediate vesting of all Company stock options held by the Executive on the date of his Disability,
with such options remaining exercisable for the lesser of the original option term or twelve (12) months from the date of the Executive’s Disability; 
  
 vii. continuation of medical benefits, if any, for a period of two (2) years; and 
  
 viii. such additional benefits as may be provided by the
terms of the then existing plans, programs and/or arrangements of the Company. 
  
 c. Cause. If the Company terminates the Executive’s employment for Cause, the Executive shall be entitled to the following,
within sixty (60) days following the date of termination: 
  
 i. Base Salary earned but not paid prior to the date of the termination of his employment; 
  
 ii. payment for all accrued but unused vacation time up to the date of the termination of the Executive’s employment; 
  
 iii. payment for any bonus earned but deferred for any year
prior to the year in which occurs the date of the termination of the Executive’s employment; and 
  
 iv. such additional benefits as may be provided by the terms of the then existing plans, programs and/or arrangements of the Company.

  
 d. Without Cause or With Good Reason.
If the Executive’s employment is terminated by the Company (other than for Cause or Disability) or if the Executive terminates his employment with Good Reason, the Employment Period shall end as of the effective date of 

  

 6 

 
termination and the Executive shall be entitled to the following, within ten (10) business days following the date of termination or such earlier date as may
be required by law: 
  
 i. Base Salary earned
but not paid prior to the date of the termination of his employment; 
  
 ii. payment for all accrued but unused vacation time up to the date of the termination of the Executive’s employment; 
  
 iii. payment for any bonus earned but deferred for any year prior to the year in which occurs the date of the termination of the
Executive’s employment; 
  
 iv. any bonus
payable pursuant to any bonus program, to the extent already earned but not paid with respect to the year in which the Executive’s termination of employment occurs; 
  
 v. a lump sum amount equal to the product of Executive’s Base Salary (based on the Base Salary in
effect on the date of the termination of the Executive’s employment, and in the case of a termination of employment by the Executive for Good Reason due to a reduction in Base Salary under Paragraph 6.01(d)(iv), based on the Base Salary in
effect immediately prior to such reduction), multiplied by a factor of 2.50; 
  
 vi. immediate vesting of and lapsing of restrictions on all unvested Stock Awards, if any, held by the Executive on the date of the termination of his employment; 
  
 vii. immediate vesting of all Company stock options held by
the Executive on the date of the termination of his employment, with all stock options remaining exercisable until their expiration pursuant to the Stock Incentive Plan; 
  
 viii. continued participation, as if he were an employee, in the Company’s medical, dental,
hospitalization and life insurance plans, programs and/or arrangements in which he was participating on the date of the termination of his employment on the same terms and conditions as other executives under such plans, programs and/or arrangements
until the earlier of two (2) years; the date or dates, he receives substantially equivalent coverage and benefits under the plans, programs and/or arrangements of a subsequent employer or the date or dates on which such plans are terminated;
provided, however, that should such continued coverage not be allowed under the Company’s plans, Company shall pay the Executive a lump sum payment, less contributions, if any, in an amount equal to the amount that the Company would have spent
on Executive’s premiums, if any, for the same period; and 
  
 ix. such additional benefits as may be provided by the terms of the then existing plans, programs and/or arrangements of the Company (other than any severance payments payable under the terms of any benefit plan),
including outplacement services consistent 

  

 7 

 
with the Company’s then existing practice for senior executives or, if there is no such then existing practice, consistent with the Company’s past
practice for senior executives. 
  
 e. Without
Good Reason. If the Executive’s employment is terminated by the Executive without Good Reason, the Executive shall be entitled to the following, within 60 days following the date of termination or such earlier date as may be required by
law: 
  
 i. Base Salary earned but not paid
prior to the date of the termination of his employment; 
  
 ii. payment for all accrued but unused vacation time up to the date of the termination of the Executive’s employment; 
  
 iii. payment for any bonus earned but deferred for any year prior to the year in which occurs the date of the termination of the
Executive’s employment; and 
  
 iv. such
additional benefits as may be provided by the terms of the then existing plans, programs and/or arrangements of the Company. 
  
 6.03. Any payment under Paragraph 6.02 hereof shall be in lieu of any other severance, bonus or other payments (other than earned or
vested benefits) to which the Executive might then be entitled pursuant to this Agreement, and any benefit plan or program of the Company or any statutory, common law or claim, subject, in each case, to the execution by the Executive and delivery to
the Company of a comprehensive release of all claims related to his employment or termination thereof in a form to be provided by the Company. The Company’s obligations to make the payments under Paragraph 6.02 hereof, except in the case of a
termination for Cause, shall not otherwise be affected by any circumstances, including, without limitation, any set-off, counterclaim, recoupment, defense or other right which the Company may have against the Executive. The Executive acknowledges
and agrees that in the event the parties dispute whether the Executive shall be entitled to the payment hereunder, such payment shall not be deemed to be earned or otherwise vest hereunder until such time as the dispute is resolved in accordance
with Paragraph 10.03 hereof. 
  
 6.04.
Notwithstanding anything to the contrary herein, if the Company’s Board has reason to believe that there are circumstances which, if substantiated, would constitute Cause as defined herein, the Company immediately may suspend the Executive from
employment without notice for such period of time as shall be reasonably necessary for the Company’s Board to ascertain whether such circumstances are substantiated. During such suspension, the Executive shall continue to be paid all
compensation and provided all benefits hereunder; provided, however, that if the Executive has been indicted or otherwise formally charged by governmental authorities with any felony, the Company’s Board may in its sole
discretion, and without limiting the Company’s Board’s discretion to terminate the Executive’s employment for Cause, suspend the Executive without continuation of any compensation or benefits hereunder, pending final disposition of
such criminal charge(s). Upon receiving notice of any such suspension, the Executive shall promptly leave the 

  

 8 

 
premises of the Company and remain off such premises and the premises of StoneMor Operating LLC or any subsidiary thereof until further notice from the
Company’s Board. 
  

	 	7.	Covenants of the Executive 

  
 7.01. During the Employment Period and for a period of two (2) years thereafter, the Executive will not, directly or indirectly:

  
 a. solicit, entice, persuade or induce any
employee, director, officer, associate, consultant, agent or independent contractor of the Company to terminate his or her employment or engagement by the Company to become employed or engaged in competition with the Company by any person, firm,
corporation or other business enterprise other than a member of the Company, except in furtherance of his responsibility during the Employment Period; or 
  
 b. authorize or assist in the taking of such action by any third party. 
  
 For purposes of this Paragraph 7.01, the terms “employee,” “director,” “officer,”
“associate,” “consultant,” “agent,” and “independent contractor” shall include any person with such status at any time during the one (1) year prior to the termination of the Executive’s employment and
for one year following the Executive’s termination of employment. The Executive shall not be deemed to have violated the provisions of this Paragraph 7.01 by reason of an isolated act, or failure to act, not taken in bad faith. 
  
 7.02. During the Employment Period and for a period of and
one (1) year thereafter, the Executive will not, directly or indirectly, engage, participate, make any financial investment in, or become employed by or render advisory or other services to or for any person, firm, corporation or other business
enterprise (the “Competing Enterprise”) which is engaged, directly or indirectly, during the Employment Period or at the time of Executive’s termination of employment, as the case may be, in any business of the type and character
engaged in or competitive with that conducted by the Company in any state or marketing area in which the Company is doing business or is qualified to do business. The foregoing covenant shall not be construed to preclude the Executive from making
any investments in the securities of any company, whether or not engaged in competition with the Company, to the extent that such securities are actively traded on a national securities exchange or in the over-the-counter market in the United States
or any foreign securities exchange and, after giving effect to such investment, the Executive does not beneficially own securities representing more than 5% of the combined voting power of the voting securities of such company. 
  
 7.03. The covenant periods set forth in Paragraphs 7.01 and
7.02 may be terminated earlier as determined by the Company’s Board, in its sole discretion, if (i) the Executive’s employment is terminated other than for “Cause” as defined in Paragraph 6.01(c) and (ii) the Executive’s
termination of employment does not occur within thirty (30) days of a “Change in Control.” For purposes of this Paragraph 7.03, a “Change in Control” is defined as (i) a bona fide sale of all of the ownership interest of all or
substantially all of the assets of the Company to any person or entity other than an affiliate; or (ii) a merger, reorganization, consolidation, or other 

  

 9 

 
transaction where more than 50% of the combined voting power of the equity interests in the Company ceases to be owned by persons or affiliates of persons
who own such interests at the Effective Date of this Agreement; or (iii) acquisition of forty (40%) percent of equity interests of the Company by any person not currently part of Company ownership except where the person is an Employee Benefit Fund
or one who effects the purchase at the request of or with approval of the Company Board. 
  
 7.04. During the Employment Period and thereafter without limit as to time, the Executive will not (other than in the regular course and
in furtherance of the Company’s business) divulge, furnish or make available to any person any knowledge or information with respect to the business or affairs of the Company which is confidential, including, without limitation,
“know-how,” trade secrets, customer lists, pricing policies, operational methods, marketing plans or strategies, product development techniques or plans, business acquisition or disposition plans, new personnel employment plans, methods,
technical processes, designs and design projects, inventions and research projects and financial budgets and forecasts of the Company except (1) information which at the time is available to others in the business or generally known to the public
other than as a result of disclosure by the Company not permitted hereunder, and (2) when required to do so by a court of competent jurisdiction, by any governmental agency or by any administrative body or legislative body (including a committee
thereof) with purported or apparent jurisdiction to order the Executive to divulge, disclose or make accessible such information. All memoranda, notes, lists, records, electronically stored data, recordings or videotapes and other documents (and all
copies thereof) made or compiled by the Executive or made available to the Executive (whether during his employment by the Company or by any predecessor thereof) concerning the business of the Company or any predecessor thereof shall be the property
of the Company and shall be delivered to the Company promptly upon the termination of the Employment Period. 
  
 7.05. The Executive acknowledges that all developments, including, without limitation, inventions, patentable or otherwise, trade secrets,
discoveries, improvements, ideas and writings that alone or jointly with others the Executive may conceive, make, develop or acquire during the period of his employment by the Company and any predecessor thereof (collectively, the
“Developments”), are and shall remain the sole and exclusive property of the Company and the Executive hereby assigns to the Company all of his right, title and interest in all such Developments. The Executive shall promptly and fully
disclose all future Developments to the Company’s Board, and, at any time upon request and at the expense of the Company, shall execute, acknowledge and deliver to the Company all instruments that the Company shall prepare, give evidence, and
take all other actions that are necessary or desirable in the reasonable opinion of the Company’s counsel, to enable the Company to file and prosecute applications for and to acquire, maintain and enforce all letters patent, trademark
registrations or copyrights covering the Developments in all countries in which the same are deemed necessary. 
  
 7.06. The Executive acknowledges that the services to be rendered by the Executive are of a special, unique and extraordinary character
and, in connection with such services, the Executive will have access to and be furnished with confidential information vital to the Company’s 

  

 10 

 
business and that irreparable injury would be sustained by the Company in the event of his breach of any of the covenants contained in this Paragraph 7,
which injury could not be remedied adequately by the recovery of damages in an action at law. Accordingly, the Executive agrees that, upon a breach or threatened breach by him of any of such covenants, the Company shall be entitled, in addition to
and not in lieu of any and all other remedies, to an injunction to be issued by any court of competent jurisdiction restraining the commission or continuance of any such breach or threatened breach upon minimal bond, with or without surety, and that
such an injunction will not work an undue hardship on him. The Executive acknowledges that the covenant periods set forth in this section shall be extended by the period of any breach by the Executive. Further, any proven breach by the Executive
shall result in the forfeiture of any remaining payments of benefits due to the Executive hereunder. 
  
 7.07. The provisions of this Paragraph 7 shall survive the termination of this Agreement, without regard to the reasons therefore.

  
 7.08. If any court determines that any of the
provisions of this Paragraph 7 is invalid or unenforceable, the remainder of such provisions shall not thereby be affected and shall be given full effect without regard to the invalid provisions. If any court construes any of the provisions of this
Paragraph 7, or any part thereof, to be unreasonable because of the duration of such provision or the geographic scope thereof, such court shall have the power to reduce the duration or restrict the geographic scope of such provision and to enforce
such provision as so reduced or restricted. 
  

	 	8.	Reimbursement of Business Expense 

  
 During the Employment Period, the Executive is authorized to incur reasonable business expenses in carrying out his duties and responsibilities under the
Agreement, and the Company shall promptly reimburse him for all such reasonable business expenses incurred in connection with carrying out the business of the Company, subject to documentation in accordance with the Company’s policy.

  

	 	9.	Indemnification 

  
 To the fullest extent permitted by law and the Company’s by-laws, the Company shall promptly indemnify the Executive for all amounts (including,
without limitation, judgments, fines, settlement payments, losses, damages, costs and expenses (including reasonable attorneys’ fees)) incurred or paid by the Executive in connection with any action, proceeding, suit or investigation arising
out of or relating to the performance by the Executive of services for (or acting as a fiduciary of any employee benefit plans, programs or arrangements of) the Company, including as a director, officer or employee of the Company. The Company also
agrees to maintain a director’s and officers’ liability insurance policy covering the Executive to the extent the Company provides such coverage for its other executive officers. Notwithstanding any other provision of this Agreement, the
provisions of this Paragraph 9 shall survive any termination or expiration of this Agreement. 
  

 11 

	 	10.	Miscellaneous 

  
 10.01. This Agreement is intended to be performed in, and shall be construed and enforced in accordance with the laws of, the State of
Delaware without reference to principles of conflict of laws. The parties consent to the jurisdiction of the federal and state courts, whichever is applicable, located in said state. 
  
 10.02. Upon the Effective Date, this Agreement shall incorporate the complete understanding and agreement
between the parties with respect to the subject matter hereof and supersede any and all other prior or contemporaneous agreements, written or oral, between the Executive and the Company or any predecessor thereof with respect to such subject matter
(including the Employment Arrangement). No provision hereof may be modified or waived except by a written instrument duly executed by the Executive and the Company with the express approval of the Company’s Board or the Compensation Committee.

  
 10.03. Any dispute or controversy arising
under or in connection with this Agreement shall be settled exclusively by arbitration conducted in Philadelphia, Pennsylvania under the National Rules for the Resolution of Employment Disputes then prevailing of the American Arbitration Association
and such submission shall request the American Arbitration Association to: (i) appoint an arbitrator experienced and knowledgeable concerning the matter then in dispute who is a member of the National Academy of Arbitrators; (ii) require the
testimony to be transcribed; (iii) require the award to be accompanied by findings of fact and a statement of reasons for the decision; and (iv) request the matter to be handled on an expedited basis. The determination of the arbitrator, which shall
be based upon an interpretation of this Agreement, shall be final and binding and judgment may be entered on the arbitrator’s award in any court having jurisdiction. All costs of the American Arbitration Association and the arbitrator shall be
borne by the Company, unless the position advanced by the Executive is determined by the arbitrator to be frivolous in nature. 
  
 10.04. The Executive acknowledges that before entering into this Agreement he has received a reasonable period of time to consider this
Agreement and has had sufficient time and an opportunity to consult with any attorney or other advisor of his choice in connection with this Agreement and all matters contained herein, and that he has been advised to do so if he so chooses. The
Executive further acknowledges that this Agreement and all terms hereof are fair, reasonable and are not the result of any fraud, duress, coercion, pressure or undue influence exercised by the Company, that he has approved and entered into this
Agreement and all of the terms hereof on his own free will, and that no promises or representations have been made to him by any person to induce him to enter into this Agreement other than the express terms set forth herein. 
  
 10.05. The Company shall be entitled to deduct and withhold
from all compensation payable to the Executive pursuant to this Agreement all amounts required to be deducted and withheld therefrom pursuant to any present or future law, regulation or ordinance of the United States of America or any state or local
jurisdiction therein or any foreign taxing jurisdiction. 
  

 12 

 10.06. Paragraph headings are included in this Agreement for convenience of reference
only and shall not affect the interpretation of the text hereof. 
  
 10.07. Any and all notices, demands or other communications to be given or made hereunder shall be in writing and shall be deemed to have been fully given or made when personally delivered, or on the third business
day after mailing from within the continental United States by registered mail, postage prepaid, addressed as follows: 
  
 If to the Company: 
  
 155 Rittenhouse Circle 
 Bristol, PA 19007

  
 Attention: William R. Shane, Executive Vice President &
CFO 
  
 If to the Executive: 
  
 __________________ 
  
 __________________ 
  
 Either party may change the address to which any notices to it shall be sent
by giving to the other party written notice of such change in conformity with the foregoing. 
  
 10.08. This Agreement may be executed in two or more counterparts, each of which shall constitute an original but all of which together
shall constitute one and the same instrument. 
  
 10.09. This Agreement may be assigned by the Company to, and shall inure to the benefit of, any successor to substantially all the assets and business of the Company as a going concern, whether by merger, consolidation or purchase of
substantially all of the assets of the Company or otherwise, provided that such successor shall assume the Company’s obligations under this Agreement. This Agreement shall inure to the benefit of and be enforceable by the Executive’s
personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees. 
  
 10.10. The Company shall be deemed to have performed its obligations to make payments or provide benefits to the Executive under this
Agreement if it has caused such payments to be made or benefits to be provided. 
  

 13 

 IN WITNESS WHEREOF, each of the Company and the Executive has executed this Agreement as of the Effective
Date. 
  

					
	STONEMOR GP, LLC
		
	By:	 	/S/    WILLIAM R. SHANE
	 Name:
	 	 William R. Shane

	 Title:
	 	 Executive Vice President and Chief Financial Officer

	
	LAWRENCE MILLER
	
	/S/    LAWRENCE MILLER

  

 14

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