Document:

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                                                                   EXHIBIT 10.31

           STEWART ENTERPRISES PUERTO RICO EMPLOYEES RETIREMENT TRUST

                            Summary Plan Description

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                            SUMMARY PLAN DESCRIPTION

                                  FOR USE WITH

                          BANCO POPULAR DE PUERTO RICO
                   MASTER DEFINED CONTRIBUTION RETIREMENT PLAN

Plan Name: Stewart Enterprises Puerto Rico Employees Retirement Trust

Address: 607 San Jose St Santurce, PR 00909

Employer's Tax I.D. Number: 66-0575635

Date:  January 1, 2003

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                                TABLE OF CONTENTS

                                                                       PAGE
                                                                       ----
I.       INTRODUCTION...................................................  3

II.      GENERAL PLAN INFORMATION.......................................  3
         A.       Agent for Service of Legal Process....................  3
         B.       Effective Date........................................  3
         C.       Employer..............................................  3
         D.       Plan Administrator....................................  3
         E.       Plan Year.............................................  4
         F.       Trustee...............................................  4

III.     DEFINITIONS....................................................  4
         A.       Break in Service......................................  4
         B.       Compensation..........................................  4
         C.       Disability............................................  5
         D.       Early Retirement......................................  5
         E.       Entry Date............................................  5
         F.       Highly Compensated Employee...........................  5
         G.       Normal Retirement Age.................................  5
         H.       Year of Service.......................................  5

IV.      ELIGIBILITY FOR PLAN PARTICIPATION.............................  5

V.       EMPLOYEE CONTRIBUTIONS.........................................  6
         A.       Pre-Tax Contributions.................................  6
         B.       After-Tax Contributions...............................  6
         C.       Rollover Contributions................................  6
VI.      EMPLOYER CONTRIBUTIONS.........................................  7
         A.       Profit Sharing Contributions..........................  7
         B.       Matching Contributions................................  7
         C.       Qualified Non-Elective Contributions..................  7
         D.       Eligibility for Allocation............................  8

VII.     LEGAL LIMITATIONS ON PRE-TAX CONTRIBUTIONS.....................  8

VIII.    PARTICIPANT'S ACCOUNTS.........................................  8

IX.      VESTING........................................................  9

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         A.       Determining Vested Benefit............................  9
         B.       Payment of Vested Benefit.............................  9
         C.       Loss of Benefits....................................... 9
         D.       Reemployment.......................................... 10

X.       IN-SERVICE WITHDRAWALS......................................... 11
         A.       In-Service Withdrawals................................ 11
         B.       Hardship Withdrawals.................................. 11

XI.      DISTRIBUTION OF BENEFITS....................................... 12
         A.       Retirement Benefits................................... 12
         B.       Beneficiary........................................... 12
         C.       Death Benefits........................................ 12
         D.       Form of Payment....................................... 12
         E.       Time of Payment....................................... 12

XII.     INVESTMENTS.................................................... 13
         A.       Investment Fund....................................... 13
         B.       Investment Direction Under a Trust Fund............... 13
         C.       Employee Investment Direction......................... 13

XIII.    LOANS                                                     14
         A.       Participant Loans..................................... 14

XIV.     ADMINISTRATION................................................. 14
         A.       Plan Administrator.................................... 14
         B.       Trustee............................................... 14

XV.      AMENDMENT AND TERMINATION...................................... 15

XVI.     LEGAL PROVISIONS............................................... 15
         A.       Rights of Participants................................ 15
         B.       Fiduciary Responsibility.............................. 16
         C.       Employment Rights..................................... 16
         D.       Benefit Insurance..................................... 16
         E.       Claims Procedure...................................... 16
         F.       Assignment............................................ 16
         G.       Conflicts with Plan................................... 17

I.       INTRODUCTION

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      Your Employer has established a retirement plan to help supplement your
retirement income. Details about how the Plan works are contained in this
Summary Plan Description. While the Summary Plan Description describes the
principal provisions of the Plan, it does not include every limitation or
detail. Every attempt has been made to provide concise and accurate information.
If, however, there is a discrepancy between this Summary Plan Description and
the official Plan Document and/or Adoption Agreement, the Plan Document and/or
Adoption Agreement shall govern. You may obtain a copy of the Plan Document and
the Adoption Agreement from the Plan Administrator. The Plan Administrator may
charge a reasonable fee for providing you with the copy.

II.   GENERAL PLAN INFORMATION

      A.    AGENT FOR SERVICE OF LEGAL PROCESS:

                  Plan Administrator
                  Empresas Stewart

      B.    EFFECTIVE DATE:

                  New Plan: January 1, 2003

      C.    EMPLOYER:               Empresas Stewart
            Physical Address:       607 San Jose St Santurce, PR 00909

            Mailing Address:        P O Box 11187 San Juan PR 00910-2287

            Contact person name:    Diana Ledesma

            Telephone No.: (787) 991-9940

            Fax number: (787) 268-3533

            Employer Tax I.D. No.: 66-0575635

      D.    PLAN ADMINISTRATOR:     Empresas Stewart

            Physical Address:       607 San Jose St Santurce, PR 00909

            Mailing Address:        P O Box 11187 San Juan PR 00910-2287

            Contact person name:    Diana Ledesma

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            Telephone No.: (787) 991-9940

            Fax number: (787) 268-3533

            Employer Tax I.D. No.: 66-0575635

      E.    PLAN YEAR: The 12-month period beginning on January and ending on
            December.

      F.    TRUSTEE:                Banco Popular de Puerto Rico
                                    Att:  Trust Division

            Physical Address:       Banco Popular de PR
                                    Popular Center Building
                                    4th Floor Trust Division
                                    208 Ponce de Leon
                                    San Juan, Puerto Rico  00918

            Mailing Address:        PO Box 362708
                                    San Juan, Puerto Rico  00936-2708

            Telephone No.:          (787) 765-9800

III.  DEFINITIONS

      A. BREAK IN SERVICE. A 12-consecutive month period during which you are
not employed by the Employer, not credited with or are not paid for more than
500 hours. If you go into the military service of the United States, you are not
considered terminated as long as you return to work within the time required by
law. If you separate from employment and incur a Break in Service, all
contributions to your various accounts are suspended. Special rules apply to
maternity and paternity leave, for such rules check with the Plan Administrator
or see Article III of the Plan Document. If a Break in Service occurs and you
return to full time employment with the Employer, your rights are explained in
Section IX of this Summary.

      B. COMPENSATION. Compensation shall mean your total salary, pay, or earned
income received from the Employer. Except that if checked below, Compensation
will exclude the following items: Amounts realized from the exercise of a
non-qualified stock option or when restricted stock (or property) held by
employee either becomes freely transferable or is no longer subject to a
substantial risk of forfeiture. Amounts realized from the sales, exchange or
other dispositions of stock acquired under a qualified stock option

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      C. DISABILITY. Shall mean a physical or mental condition which in the
judgment of the Plan Administrator, based upon medical reports and other
evidence satisfactory to the Plan Administrator, presumably permanently prevents
you from satisfactorily performing your usual duties for the Employer or the
duties of such other position or job which the Employer makes available and for
which you are qualified by reason of training, education, or experience.

      D. EARLY RETIREMENT.

            You may retire upon reaching age 60 and completing 5 Years of
            Service

      E. ENTRY DATE. The date on which you enter the Plan after having met the
Plan's eligibility requirements. The Entry Date for this Plan is:

            The first day of the quarter coinciding with or following the date
            you satisfy the eligibility requirements

      F. HIGHLY COMPENSATED EMPLOYEE. Any employee who determined, on the basis
of Compensation for any Plan Year, has Compensation greater than two-thirds of
all other employees participating in the Plan.

      G. NORMAL RETIREMENT AGE. The attainment of age 65 or, if later, the fifth
anniversary of the first day of the Plan Year in which you entered the Plan.

      H. YEAR OF SERVICE.

            A Year of Service is a 12-consecutive month period, which is the
            same as the Plan Year, during which you are credited with at least
            1,000 Hours of Service

IV.   ELIGIBILITY FOR PLAN PARTICIPATION

      You may become a Participant in the Plan once you comply with the
following service and age requirements:

      Service Requirements:

        One year of service

Age Requirements:

        21 years old

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      You are considered to have completed 1 Year of Service for purposes of
eligibility on the anniversary of your first day of employment, provided that
you: worked at least 1,000 hours during that 12-month period and are still
employed. The Plan will not cover employees covered by a collective bargaining
agreement or employees who are nonresidents of Puerto Rico.

      Your participation in the Plan will begin on the Entry Date on or after
you comply with the age and service requirements. If you are employed on the
Plan's effective date you do have to satisfy the age and service requirements
specified above.

V.    EMPLOYEE CONTRIBUTIONS

      A. PRE-TAX CONTRIBUTIONS. You, as an eligible Employee, may make Pre-Tax
Contributions to the Plan in an amount not to exceed the lesser of 10% of your
Compensation or $7,000. Pre-Tax Contributions are Employer contributions made to
the Plan at your election through salary deductions, instead of being given to
you in cash as part of your salary. Pre-Tax Contributions and the earnings
thereon will not be subject to Puerto Rico income taxes until paid to you under
the terms of the Plan.

         You may increase, decrease, or terminate your Pre-Tax Contributions on
the first day of the first, fourth, seventh or tenth month of the Plan Year upon
30 days written notice to the Employer.

         If you terminate contributions, you may not reinstate payroll
withholding until the next month. The Employer may also reduce or terminate your
withholding if required to maintain the Plan's qualified status.

      B. AFTER-TAX CONTRIBUTIONS. You may make personal After-Tax Contributions
to the Plan in any amount. After-Tax Contributions are not tax-deductible, but
the investment earnings are tax-deferred until paid to you under the terms of
the Plan.

         You may increase, decrease, or terminate your After-Tax Contributions
monthly upon 30 days written notice to the Employer.

         If you terminate contributions, you may not reinstate payroll
withholding until the next month..

      C. ROLLOVER CONTRIBUTIONS. Rollover Contributions are permitted, you must
be an Employee.

         A rollover of your retirement benefits may occur from another Puerto
Rico qualified retirement plan to this Plan. If you have already received a
lump-sum payment from another Puerto Rico qualified retirement plan, you may be
eligible to roll over that payment into this Plan. If you

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believe you qualify for a rollover contribution, see the Plan Administrator for
more details. The last day you may make a rollover contribution to this Plan is
the 60th day after you receive the distribution from the other Puerto Rico
qualified plan. A rollover may also occur if the trustee of the old plan
transfers your assets directly to this Plan.

VI.   EMPLOYER CONTRIBUTIONS

      A.    PROFIT SHARING CONTRIBUTIONS

                  For each Plan Year in which this Plan is in effect the
                  Employer may make contributions to the Trust in one or more
                  installments out of its Net Profits (as defined in section
                  6.2c.(3) of the Popular Master Plan) for the Plan Year, in
                  such amounts as the Employer may determine (if any). The Plan
                  Year for which each contribution is made shall be designated
                  at the time of the contribution. Profit-Sharing Contributions
                  will not exceed the lesser of the Employer's Net Profits or
                  15% of your Compensation in any Plan Year.

      B.    MATCHING CONTRIBUTIONS

                  The Employer will make Matching Contributions equal to
                  50(cent) for each dollar of your Pre-Tax Contributions and
                  After-Tax Contributions. However, the Employer will not make
                  Matching Contributions above 5% of your Compensation.

            The Employer has the right to designate all or a portion of the
Matching Contributions as "Qualified". To the extent Matching Contributions are
so designated, they are nonforfeitable and may not be withdrawn from the Plan
prior to separation from Service or attainment of age 59-1/2.

      C.    QUALIFIED NON-ELECTIVE CONTRIBUTIONS

            The Employer may also contribute an additional amount determined in
its sole judgment. This additional contribution, if any, will be allocated only
to Non-Highly Compensated Employees to the extent necessary to meet the Actual
Deferral Percentage Test of Section 1165(e) of the Puerto Rico Income Tax Act of
1954 (the "ITA"). These contributions will be nonforfeitable and subject to the
same withdrawal restrictions as Pre-Tax Contributions.

      D.    ELIGIBILITY FOR ALLOCATION

The Employer's Profit Sharing Contributions will be allocated to participants
who:

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Participants who are employed at the end of the Plan Year and completed more
than 500 Hours of Service during that Plan Year and were employed by the
Employer on the last day of the Plan year.

VII.  LEGAL LIMITATIONS ON PRE-TAX CONTRIBUTIONS

      ITA Section 165(e) sets certain limitations on the level of Pre-Tax
Contributions which may be made to a Plan such as this. There is a "percentage"
limitation which means that the percentage of Compensation which you may
contribute as a Pre-Tax Contribution depends on the average percentage of
Compensation that the other Participants are contributing. Simply stated, all
Participants are divided into 2 categories: highly compensated and non-highly
compensated and the average for each group is calculated. The average
contribution that the highly compensated group may make is based on the average
contribution that the non-highly compensated make. If a Highly Compensated
Employee is contributing more than he or she is allowed under ITA Section
165(e), the excess plus or minus any gain or loss will either be returned or, if
permitted, recharacterized as an After-Tax Contribution.

VIII. PARTICIPANT'S ACCOUNTS

      The Plan Administrator will set up a record keeping account in your name
to show the value of your retirement benefit. The Plan Administrator will make
the following additions to your account:

      A. Your allocated share of the Employer's Contribution, and Qualified
Non-Elective Contribution,

      B. The amount of your Pre-Tax Contributions, After-Tax Contributions and
Rollover Contributions, if any,

      C. Your share of forfeited accounts of former employees. (These are
amounts left behind by employees who terminated before becoming 100% vested in
their benefit), and

      D. Your share of investment earnings and appreciation in the value of
investments.

      The Employer will make the following subtractions from your account:

      E. Any withdrawals or distributions made to you,

      F. Your share of investment losses and depreciation in the value of
investments, and

      G. If applicable, your share of Plan expenses.

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         The Employer will give you a quarterly statement showing the additions
to and subtractions from your account.

IX.   VESTING

      A. DETERMINING VESTED BENEFIT. Vesting refers to your earning or acquiring
a nonforfeitable right to some or the full amount of your account(s). Any
Pre-Tax Contributions, After-Tax Contributions, Rollover Contributions and
Qualified Non-Elective Contributions, plus or minus any earnings or losses, are
always 100% vested and cannot be forfeited for any reason.

         Matching Contributions and Profit Sharing Contributions will vest in
accordance with the following vesting schedule:

                  Cliff Vesting. Participants are 100% vested after completing 3
                  years of service. The Participant will be 0% vested until
                  completing the years of service specified above.

         Service prior to the Effective Date of the Plan are counted for
purposes of vesting.

         You automatically become fully vested, regardless of the vesting table,
upon attainment of Normal Retirement Age, Early Retirement Age, upon retirement
due to Disability, upon death, and upon termination of the Plan.

      B. PAYMENT OF VESTED BENEFIT. If you separate from Service before your
retirement, death, or Disability, you may request early payment of your vested
benefit by submitting a written request to the Plan Administrator. If your
vested account balance at the time of termination exceeds $5,000, you may defer
the payment of your benefit until April 1 of the calendar year following the
calendar year during which you attain age 70-1/2. The portion of your account
balance to which you are not entitled is called a "forfeiture" and remains in
the Plan in your name until you sustain five consecutive 1-year Breaks in
Service. At such time, forfeitures of Employer Contributions will be allocated
to the accounts of all Participants during such Plan Year in the proportion that
each such Participant's Compensation during such Plan Year bear to the total
Compensation during such Plan Year of all such Participants.

      C. LOSS OF BENEFITS. There are only two events which can cause loss of all
or a portion of your account. One is termination of employment before you are
100% vested according to the vesting table described at IX(A) and the other is a
decrease in the value of your account from investment losses or administrative
expenses and other costs of maintaining the Plan.

      D. REEMPLOYMENT. If you terminate service with your Employer, then later
become reemployed, you will become a Participant as of the next Entry Date [see
Section III(E)] following

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your return to employment. If you are not a member of a class of employees
eligible to participate in the Plan and later become a member of the eligible
class, you will participate upon reaching the next Entry Date if you have
satisfied the minimum age and service requirements. Should you become ineligible
to participate because you are no longer a member of an eligible class, you will
automatically become re-eligible to participate upon your return to an eligible
class. All years of prior Service will be counted when calculating your vested
percentage in your new account balance. The following rules apply in connection
with reemployed Participants.

         1. Terminated Partially Vested Participants. If you had a vested
interest and received a distribution of that interest, you have the right to
repay the amount you received. If you choose to repay, the nonvested portion of
your Employer account will be reinstated. Such repayment must be made within 5
years after your date of reemployment, or, if earlier, prior to your incurring 5
consecutive 1-year Breaks in Service. If you do not repay the amount you
received, the nonvested portion of your Employer accounts will be permanently
forfeited. Whether you repay or not, your prior Service will count toward
vesting service for future Employer Contributions.

            FOR EXAMPLE, assume that you quit your job with your current
Employer. At the time of termination you had completed four Years of Service and
had accrued a total benefit of $10,000 under the plan. Although this amount had
been allocated to your account, you were only 40% vested in that amount when you
left. You decided to take a distribution of your vested account balance (40% of
$10,000, or $4,000) when you quit. Three years later, you became reemployed by
the same Employer. Since you were reemployed within 5 years, you have the right
to repay the $4,000 distribution you received when you quit. You would have to
repay the $4,0000 within 5 years of being rehired. If you do so, the nonvested
portion of your account ($6,000) will be restored to your account. After
restoration, you will be vested in 40% of this account, but your vested
percentage will increase based on your Years of Service after your reemployment.
Your prior Service will always count towards vesting of Employer Contributions
which you will receive after reemployment, whether or not you decide to repay
and restore your prior account.

         2. Terminated Non-Vested Participants. If you were not vested in any
portion of your Employer Contributions prior to your separation from service and
if you have a Break in Service, but then are reemployed before incurring five
consecutive one-year Breaks in Service, you will be credited for vesting with
all pre-break and post-break service. Your prior account balance will
automatically be restored and you will continue to vest in that account. If you
are reemployed after incurring five consecutive one-year Breaks in Service, you
will lose your prior account balance, but your prior Service will still count
towards vesting in your new account balance.

X.    IN-SERVICE WITHDRAWALS

      A. IN-SERVICE WITHDRAWALS. The following provisions will govern the
availability of in-service withdrawals from a Participant's accounts.

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         Profit Sharing Contributions. In-service withdrawals from profit
sharing contributions will not be allowed

         Pre-Tax Contributions. In-service withdrawals from Pre-Tax
Contributions will only be allowed in case of a financial hardship.

         After-Tax Contributions. In-service withdrawals from After-Tax
Contributions will be allowed for any reason.

         Matching Contributions. In-service withdrawals from Matching
Contributions will not be allowed.

      B. HARDSHIP WITHDRAWALS. You may file a written request for a hardship
withdrawal of Pre-Tax Contributions . You must have your Spouse's written
consent for a hardship withdrawal. Prior to receiving a hardship distribution,
you must take any other nontaxable distribution and borrow the maximum
nontaxable loan amount allowed under this and other plans of the Employer.
Hardship withdrawals may be authorized by the Employer for the following
reasons:

         1. To assist you in purchasing a personal residence which is your
primary place of residence (not including mortgage payments),

         2. To assist you in paying post-secondary tuition expenses for you or
your dependents for the next academic period,

         3. To assist you in paying actual medical expenses incurred by you or
your dependents, or

         4. To prevent your eviction from or foreclosure on your principal
residence, or

         5. Such other event or circumstance as the Puerto Rico Secretary of the
Treasury through regulations may permit.

         Any hardship distribution is limited to the amount needed to meet the
financial need. Hardship withdrawals must be approved by the Employer and will
be administered in a nondiscriminatory manner. Such withdrawals will not affect
your eligibility to continue to participate in Employer Contributions to the
Plan. Any withdrawals you receive under these rules may not be recontributed to
the Plan and may be subject to taxation. If you receive a hardship withdrawal,
there will be a one-year mandatory suspension of your right to make Pre-Tax and
After-Tax Contributions under the Plan.

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XI.   DISTRIBUTION OF BENEFITS

      A. RETIREMENT BENEFITS. If not already paid to you, the full value of your
account balance is generally payable at Normal Retirement Age, Early Retirement
Age or Disability. If you work beyond your Normal Retirement Age, and have not
separated from Service, you can cannot request commencement of benefit payments.
In either event, you will continue to fully participate in the Plan. The latest
commencement date for payment of your benefits is generally April 1 of the year
following your attainment of age 70-1/2, even if you are still employed. If you
separate from Service before retirement, you may may not elect to receive
payments at that time or any time prior to Normal Retirement, Early Retirement
Age or Disability.

      B. BENEFICIARY. Every Participant or former Participant with plan benefits
may designate a person or persons who are to receive benefits under the Plan in
the event of his or her death. The designation must be made on a form provided
by and returned to the Plan Administrator. You may change your designation at
any time. If you are married, your beneficiary will automatically be your
Spouse. If you and your Spouse wish to waive this automatic designation, you
must complete a beneficiary designation form. The form must be signed by you and
your Spouse in front of a Plan representative or a Notary Public.

      C. DEATH BENEFITS. In the event of your death, the full value of your
account is payable to your beneficiary. If you die after benefit payments have
started under a payment option, your beneficiary will continue to receive
payments in accordance with your payment option selected.

      D. FORM OF PAYMENT. When benefits become due, you or your representative
should apply to the Employer requesting payment of your account and specifying
the manner of payment. The normal or automatic form of payment is:

                  For Profit Sharing or 165(e) plans: a lump-sum, or Installment
                  payments
                        A life annuity

      E. TIME OF PAYMENT.

         1. If you retire, become disabled, or die, payments will start As soon
as administratively feasible following the date on which a distribution is
requested by you or is otherwise payable

         2. If you terminate for a reason other than death, Disability, or
retirement, payments will start as soon as administratively feasible following
the date on which a distribution is requested by you or is otherwise payable

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XII.  INVESTMENTS

      A. INVESTMENT FUND. The Employer has selected the following funding
vehicles for the Plan:

         -  MFS Bond Fund A
            Stewart Enterprises Co Stock Fund
            Massachusetts Investors Trust A
            Legg Mason Value Trust
            MFS Emerging Growth Fund A
            MFS Global Equity Fund A
            Legg Mason Special Investment Trust
            MFS New Discovery Fund
            Legg Mason Opportunity Trust
            MFS Core Growth Fund A
            Royce Total Return Fund
            MFS Conservative Allocation Fund
            MFS Moderate Allocation Fund
            MFS Growth Allocation Fund

      B. INVESTMENT DIRECTION UNDER A TRUST FUND. Investments shall be made
under the direction of the Employee

      C. EMPLOYEE INVESTMENT DIRECTION. You may direct the investment of all
contributions.

         You may direct the investments among the various investment vehicles.
You may change your investment selection and move monies from one fund to
another by accessing the Voice Response Unit .You may modify your investments
daily.

XIII. LOANS

      A. PARTICIPANT LOANS. Participant loans are permitted under this Plan. If
permitted, repayments of principal and interest shall be repaid to your
individual account. In order to get a loan from the Plan, you must submit a loan
application to the Plan Administrator. Loans must be approved by the Plan
Administrator and are subject to a strict set of rules established by law. The
rules are covered in a separate Loan Application Form and Promissory Note Form.
These Forms are available from the Plan Administrator.

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XIV.  ADMINISTRATION

      The Plan will be administered by the following parties:

      A. PLAN ADMINISTRATOR. The Employer is the party who has established the
Plan and who has overall control and authority over administration of the Plan.
The Employer's duties as Plan Administrator include:

         1. Appointing the Plan's professional advisors needed to administer the
Plan including, but not limited to, an accountant, attorney, actuary, or
administrator,

         2. Directing the Trustee with respect to payments from the Fund,

         3. Communicating with Employees regarding their participation and
benefits under the Plan, including the administration of all claims procedures
and domestic relations orders,

         4. Filing any returns and reports with the Puerto Rico Treasury
Department, Puerto Rico Department of Labor, Internal Revenue Service, Federal
Department of Labor, or any other governmental agency,

         5. Reviewing and approving any financial reports, investment reviews,
or other reports prepared by any party appointed by the Employer,

         6. Establishing a funding policy and investment objectives consistent
with the purposes of the Plan and the Employee Retirement Income Security Act of
1974, and

         7. Construing and resolving any question of Plan interpretation. The
Plan Administrator's interpretation and application thereof is final.

      B. TRUSTEE. The Trustee shall be responsible for the administration of
investments held in the Fund. These duties shall include:

         1. Receiving contributions under the terms of the Plan,

         2. Investing Plan assets per the written instructions of the Employer
and/or the Participants,

         3. Making distributions from the Fund in accordance with written
instructions received from the Plan Administrator,

         4. Keeping accounts and records of the financial transactions of the
Fund, and

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         5. Rendering an annual report of the Fund showing the financial
transactions for the Plan Year.

XV.   AMENDMENT AND TERMINATION

      The Employer or the Sponsor may amend the Plan at any time, provided that
no amendment will divert any part of the Plan's assets to any purpose other than
for the exclusive benefit of you and the other Participants in the Plan or
eliminate an optional form of distribution. The Employer may also terminate the
Plan. In the event of a full or partial termination, all amounts credited to
your account will be fully vested and will be paid to you. Depending on the
facts and circumstances, a partial termination may be found to occur where a
significant number of Employees are terminated by the Employer. In case of a
partial termination, only those who separated from Service will become 100%
vested.

XVI.  LEGAL PROVISIONS

      A. RIGHTS OF PARTICIPANTS. As a Plan Participant, you have certain rights
and protections under the Employee Retirement Income Security Act of 1974
("ERISA"). The law says that you are entitled to:

         1. Examine, without charge, all documents relating to the operation of
the Plan and any documents filed with the U.S. Department of Labor. These
documents are available for review in the Employer's offices during regular
business hours.

         2. Obtain copies of all Plan documents and other Plan information upon
written request to the Employer. The Employer may make a reasonable charge for
producing the copies.

         3. Receive from the Employer at least once each year a summary of the
Plan's annual financial report.

         4. Obtain, at least once a year, a statement of the total benefits
accrued for you, and your nonforfeitable (vested) benefits, if any. The Plan
provides that you will receive this statement automatically. If you are not
vested, you may request a statement showing the date when your account will
begin to become nonforfeitable.

         5. File suit in a federal court, if any materials requested are not
received within 30 days of your request, unless the materials were not sent
because of matters beyond the control of the Employer. If you are improperly
denied access to information you are entitled to receive, the Employer may be
required to pay up to $100 for each day's delay until the information is
provided to you.

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      B. FIDUCIARY RESPONSIBILITY. ERISA also imposes obligations upon the
persons who are responsible for the operation of the Plan. These persons are
referred to as "fiduciaries". Fiduciaries must act solely in your interest as a
Plan Participant and they must exercise prudence in the performance of their
duties. Fiduciaries who violate ERISA may be removed and required to reimburse
any losses they have caused you or your Plan.

      C. EMPLOYMENT RIGHTS. Participation in the Plan is not a guarantee of
employment. However, the Employer may not fire you or discriminate against you
to prevent you from becoming eligible for the Plan or from obtaining a benefit
or exercising your rights under ERISA.

      D. BENEFIT INSURANCE. Your benefits under this Plan are not insured by the
Pension Benefit Guaranty Corporation since the law does not require termination
insurance for this type of Plan.

      E. CLAIMS PROCEDURE. If you feel you are entitled to a benefit under the
Plan, mail or deliver your written claim to the Plan Administrator. The Plan
Administrator will notify you, your beneficiary, or authorized representative of
the action taken within 60 days of receipt of the claim. If you believe that you
are being improperly denied a benefit in full or in part, the Employer must give
you a written explanation of the reason for the denial, If the Employer denies
your claim, you may, within 60 days after receiving the denial, submit a written
request asking the Employer to review your claim for benefit. Any such request
should be accompanied by documents or records in support of your appeal. You,
your beneficiary, or your authorized representative may review pertinent
documents and submit issues and comments in writing. If you get no satisfaction
from the Employer, you have the right to request assistance from the U.S.
Department of Labor or you can file suit in a Puerto Rico or federal court.
Service of legal process may be made upon the Plan Trustee or the Plan
Administrator. If you are successful in your lawsuit, the court may require the
Employer to pay your legal costs, including your attorney's fees. If you lose,
and the court finds that your claim is frivolous, you may be required to pay the
Employer's legal fees.

      F. ASSIGNMENT. Your rights and benefits under this Plan cannot be
assigned, sold, transferred or pledged by you or reached by your creditors
(subject to state law) or anyone else except under a qualified domestic
relations order. A qualified domestic relations order (QDRO) is a court order
issued under state domestic relations law relating to divorce, legal separation,
custody or support proceedings. The QDRO recognizes the right of someone other
than you to receive your Plan benefits. You will be notified if a QDRO on your
Plan benefits is received.

                                       16
<PAGE>

      G. CONFLICTS WITH PLAN. This booklet is not the Plan document, but only a
Summary Plan Description of its principal provisions and not every limitation or
detail of the Plan is included. Every attempt has been made to provide concise
and accurate information. However, if there is a discrepancy between this
booklet and the official Plan document and/or Adoption Agreement, the Plan
document shall prevail.

                                    * * * *

                                       17<PAGE>

                                                                   EXHIBIT 10.32

                         1165(e) PLAN ADOPTION AGREEMENT

               Popular Master Defined Contribution Retirement Plan

                     AMENDED EFFECTIVE AS OF OCTOBER 1, 2001

                                                                               1

<PAGE>

                  BY executing this Adoption Agreement the Employer is adopting
a profit sharing plan with optional Section 1165(e) provisions for the benefit
of its Employees. The Employer's Plan is comprised of: (i) [x] the Banco Popular
de Puerto Rico Popular Master Defined Contribution Retirement Plan Document or
[ ] the Employer's Defined Contribution Retirement Plan Document; (ii) [ ] the
Banco Popular de Puerto Rico Popular Master Defined Contribution Retirement Plan
Master Trust and/or [ ] the Employer's Defined Contribution Retirement Plan
Trust; and (iii) [ ] this Adoption Agreement. The terms used in this Adoption
Agreement, as well as the rules to be complied with in connection with the Plan,
are fully explained in the [ ] Popular Master Plan Document or [ ] the
Employer's Plan Document. When signing this Adoption Agreement, if applicable,
the employer has received copy of the Banco Popular de Puerto Rico Popular
Master Defined Contribution Retirement Plan and the Popular Master Plan's
Summary Plan Description. The Banco Popular de Puerto Rico Popular Master
Defined Contribution Retirement Plan Master Trust is available upon request at
Banco Popular's main offices in Hato Rey, Puerto Rico.

                         1165(e) Plan Adoption Agreement
               Popular Master Defined Contribution Retirement Plan
                 Copyright@2001 by Banco Popular de Puerto Rico

                                                                               2

<PAGE>

Plan Sponsor

Name of Plan Sponsor:        Stewart Enterprises, Inc.

Address (Physical):          110 Veterans Blvd. Ste. 500
                             Metairie, LA   70005

Address (Postal):            P. O. Box 11250
                             New Orleans, LA 70181-1250

Telephone: (504) 837-5880        Telefax: (504) 729-1825

Name of Person for Banco Popular de Puerto Rico to contact:

Position: Edward L. Baucom, Vice President, Compensation and Benefits

Telephone: (504) 729-1810       Telefax: (504) 729-1813

Plan Sponsor tax identification number: 72-0693290

Type of business:

[ ] Unincorporated Trade or Business

[ ] Partnership

[X] Corporation

[ ] Other (specify)

Employer's taxable year:

[ ] Calendar year

[X] Fiscal Year ending on October 31.___________________________

EMPLOYER INFORMATION (Complete even if only one Employer will adopt the Plan;
attach additional sheets to provide information for additional Employers
adopting the Plan. References in this Adoption Agreement to any Employer shall
be in reference to all employers adopting the Plan.)

Name of Employer:       Empresas Stewart - Funerarias

Address (Physical):     Calle San Jose 607,
                        Santurce, PR 00909

Address (Postal):       P. O. Box 11187
                        San Juan, PR 00910-2287

Telephone: (787) 981-9940        Telefax: (787) 268-3533

                                                                               3

<PAGE>

Name of Person for Banco Popular de Puerto Rico to contact: Diana Ledesma

Position: Director, Human Resources , Puerto Rico Region
Telephone: (787) 268-9940       Telefax: (787) 268-3533

Employer tax identification number: 66-0575635

Type of business:

[ ] Unicorporated Trade of Business

[X] Partnership

[ ] Corporation

[ ] Other (specify) sole propietor

Employer's taxable year:

[ ] Calendar Year

[X] Fiscal Year ending on October 31.

Payroll frequency:      [X]  Weekly                [X]  Bi-Weekly
                        [ ]  Semi-Monthly          [ ]  Monthly
                        [ ]  Semi-Weekly           [ ]  Other

Transfer to Banco Popular:

GENERAL PLAN INFORMATION

PLAN NAME STEWART ENTERPRISES PUERTO RICO EMPLOYEES RETIREMENT TRUST
(Employer's name and type of plan)

ADOPTION OR AMENDMENT OF PLAN

By signing this Adoption Agreement the Employer:

[X]   adopts the Banco Popular de Puerto Rico Popular Master Defined
      Contribution Retirement Plan and its Popular Master Trust

[ ]   adopts the Banco Popular de Puerto Rico Popular Master Defined
      Contribution Retirement Plan and as Individual Trust

[ ]   adopts and Individual Defined Contribution Retirement Plan and the Banco
      Popular de Puerto Rico Popular Master Defined Contribution Retirement Plan
      Master Trust,

[ ]   amends certain options of an earlier Banco Popular de Puerto Rico
      Popular Master Defined Contribution Retirement Plan Adoption Agreement for
      the following Plan:

Name of Plan Sponsor:  Stewart Enterprises, Inc.

Original Effective Date: January 1, 2003

                                                                               4

<PAGE>

[X] amends and restates the following Plan:

      Name of Plan: Stewart Enterprises Employees Retirement Trust

      Original Effective Date: January 1, 1981

EFFECTIVE DATE (cannot be earlier than the first day of the Plan Year in which
the Employer signs this Adoption Agreement).

The effective date of this Plan or amendment is: January 1, 2003
                      (month/day/year)

PLAN YEAR

The Plan Year will a calendar year unless the Employer elects otherwise By
checking the box below:

[ ]   The Plan Year shall begin

      on

           (month/day)

      end on

           (month/day)

[ ]   If applicable, the first Plan Year is a short Plan Year

      beginning on __________________ and
                            (month/day)

      ending on ___________________.
                            (month/day)

ACCOUNTING METHOD

The Plan shall use the cash basis accounting method.

ELIGIBILITY FOR PLAN PARTICIPATION

WAIVER OF REQUIREMENTS FOR NEW PLANS

[ ]   If checked, each Employee employed on the Effective Date of the Plan is
      automatically eligible to participate. Employees hired after the Effective
      Date of the Plan are eligible upon satisfying any service and/or age
      requirements specified below:

AGE REQUIREMENT. An employee must fulfill the following age requirement to
      become a participant:

[ ]   No minimum age required.

[X]   Minimum age 21 (not greater than 21).

                                                                               5

<PAGE>

[ ]   Other

SERVICE REQUIREMENTS. An employee must fulfill the following service
requirements to become a Participant:

[ ]   No service requirement

[X]   One year of service.

[ ]   Other  3 months of  service

METHOD FOR CALCULATING YEAR OF SERVICE.

[X]   HOURS OF SERVICE METHOD. An Employee's year of service will be determined
      by using the Hours of Service method as described in Article 3 of the
      Popular Master Plan document or the Employer's Individual Plan Document.

[ ]   ELAPSED TIME METHOD. An Employee's service will be determined using the
      elapsed time method, as described in Article 3 of the Popular Master Plan
      document or the Employer's Individual Plan Document.

AFFILIATES. Please list the affiliates for which service will be treated as
service under the Plan. Stewart Enterprises, Inc. and subsidiaries

PREDECESSOR EMPLOYERS. Service with the following predecessor employers will be
treated as service under the Plan.

ENTRY DATES

An Employee may elect to become a Participant and start making Employee
Contributions on any entry date on or after he or she satisfies the Plan's
eligibility requirements.

INDICATE THE PLAN'S ENTRY DATES:

[  ]  Monthly Entry Dates.  The first day of each month date.

[X]   Quarterly Entry Dates. The first day of each of the first, fourth, seventh
      and tenth months of the Plan Year is an entry date.

[ ]   Semi-Annual Entry Dates. The first day of each on the first and seventh
      months of the Plan Year is an entry date.

COMPENSATION

EMPLOYEE PRE-TAX CONTRIBUTIONS

A Participant's Compensation for purposes of Employee Pre-tax Contribution shall
mean the total compensation that is currently includible in income for income
tax purposes paid to him by

                                                                               6

<PAGE>

the Employer during a Plan Year. Except that if checked below, Compensation will
exclude the following items:

[ ]   bonuses

[ ]   overtime

[ ]   commissions

[X]   other items (specify) : Amounts realized from the exercise of a
non-qualified stock option or when restricted stock (or property) held by the
employee either becomes freely transferable or is no longer subject to a
substantial risk of forfeiture. Amounts realized from the sale, exchange or
other disposition of stock acquired under a qualified stock option.

EMPLOYEE AFTER-TAX CONTRIBUTIONS

A Participant's Compensation for purpose of Employee After-Tax Contributions
shall mean the total compensation that is currently includible in income for
income tax purpose paid to him by the Employer during Plan Year. Except that if
checked below, Compensation will exclude the following items:

[ ]   bonuses

[ ]   overtime

[ ]   commissions

[X]   other items (specify): Amounts realized from the exercise of a
      non-qualified stock option or when restricted stock (or property) held by
      the employee either becomes freely transferable or is no longer subject to
      a substantial risk of forfeiture. Amounts realized from the sale, exchange
      or other disposition of stock acquired under a qualified stock option.

EMPLOYER MATCHING CONTRIBUTIONS

A Participant's Compensation for purposes of Employer Matching Contributions
shall mean the total compensation that is currently includible in income for
income tax purposes paid to him by the
Employer during a Plan Year. Except that if checked below, Compensation will
exclude the following items:

[ ]   bonuses

[ ]   overtime

[ ]   commissions

[X]   other items (specify) : Amounts realized from the exercise of a
      non-qualified stock option or when restricted stock (or property) held by
      the employee either becomes freely transferable or is no longer subject to
      a substantial risk of forfeiture. Amounts realized from the sale, exchange
      or other disposition of stock acquired under a qualified stock option.

EMPLOYER PROFIT SHARING CONTRIBUTIONS

A Participant's Compensation for purposes of Employer Profit Sharing
Contributions shall mean the total compensation that is currently includible in
income for tax purposes paid to him by the

                                                                               7

<PAGE>

Employer during a Plan Year. Except that if checked below, Compensation will
exclude the following items:

[ ]   bonuses

[ ]   overtime

[ ]   commissions

[X] other items (specify): Amounts realized from the exercise of a non-qualified
stock option or when restricted stock (or property) held by the employee either
becomes freely transferable or is no longer subject to a substantial risk of
forfeiture. Amounts realized from the sale, exchange or other disposition of
stock acquired under a qualified stock option.

CONTRIBUTIONS

NEGATIVE ELECTION

If the Employer so elects, each Employee shall be deemed to have elected to make
a Pre-Tax Contribution in the percentage indicated below commencing with the
first payroll period following completion of the eligibility requirements of the
Plan unless the Employee elects to receive cash instead. If this is a
restatement of an existing plan Employees not participating in the Plan on the
effective date of the restatement will be given a 3-month notice commencing on
the first day of the Plan Year next following the effective date of the
restatement during which to effect an election to receive cash. A Participant
who does not file an election to receive cash will become a Participant on the
first Entry Date following the three month period. The Employee may at any time
elect to not make Pre-Tax Contributions to the Plan. This is called the
"Negative Election". The Employer can also choose a "Positive Election" whereby
the Employee must make an affirmative election to make a pre-tax contribution.

[ ]   Negative Election
      Percentage _________ % (1% - 3%)

[X]   Positive Election

EMPLOYEE CONTRIBUTIONS

Participants may make contributions as follows:

[ ]   Pre-Tax Contributions.

[ ]   After Tax Contributions.

[X]   Pre-Tax Contributions and/or After-Tax Contributions, at the election of
      the Participant.

Pre-Tax Contributions in a Plan Year may not exceed 10% of compensation or
$7,500 in 1997 and $8,000 in 1998 and thereafter whichever is less.

After-Tax Contributions in a Plan Year, if authorized, may not exceed 10% of the
aggregate compensation paid to the Employee during all the years he or she has
been a Plan Participant. After-Tax Contributions may be subject to other
restrictions and rules established by the Plan Administrator.

                                                                               8

<PAGE>

Pre-Tax Contributions and/or After-Tax Contributions may not commence prior to
the date the Plan is adopted.

ROLLOVER CONTRIBUTIONS

[ ]   The Plan's Trustee shall not be authorized to receive rollover
      contributions

The Plan's Trustee shall be authorized to receive rollover contributions:

[ ]   Only if the employee has met the participation requirements of the Plan
      as of the date of the contribution.

[X]   Even if the Employee has not met the participation requirements of the
      Plan as of the date of the contribution.

MATCHING CONTRIBUTIONS

[ ]   The Employer will make no Matching Contributions.

[X]   The Employer will make a Matching Contribution equal to fifty cents for
      each dollar of a Participant's:

      [ ]  Pre-Tax Contributions.

      [ ]  After-Tax Contributions.

      [X]  Pre-Tax Contributions and After-Tax Contributions.

However, the Employer will not make Matching Contributions above 5% of
Participant's Compensation.

PROFIT SHARING CONTRIBUTIONS

[ ]   The Employer will make no Profit Sharing Contributions.

[X]   For each Plan Year in which this Plan as in effect the Employer may make
      contributions to the Trust in one or more installments out of its Net
      Profits (as defined in Section 6.2C.(3) of the Plan) for the Plan Year, in
      such amounts as the Employer may determine (if any). The Plan Year for
      which each contribution is made shall be designated at the time of the
      contribution. Profit Sharing Contributions may not exceed the lesser of
      Employer's Net Profit or 15% of a Participant's Compensation in any Plan
      Year.

ALLOCATION OF EMPLOYER CONTRIBUTIONS

Profit Sharing Contributions shall be allocated as of the last day of such Plan
Year among the Employees who:

[X]   completed more than 500 hours of service during the Plan Year [X] and [ ]
      or

[X]   were employed by the Employer on the last day of the Plan Year [X] and [ ]
      or

                                                                               9

<PAGE>

[X]   are eligible under the plan

Matching Contributions shall be allocated:

[ ]   With each payroll           [ ]  Bi-Weekly
[ ]   Weekly                      [X]  Monthly
[ ]   Semi-Monthly                [ ]  Other
[ ]   Semi-Weekly

Participants will be required to be an employee on the last day of a matching
period (or to have left employment during such period because of death,
retirement or disability) in order to receive a matching contribution for such
period.

QUALIFIED MATCHING AND NON-ELECTIVE CONTRIBUTIONS

Qualified Matching Contributions and Qualified Non-Elective Contributions, as
defined in the Popular Master Plan Document or the Employer's Plan Document,
will be taken into account for purposes of calculating the Actual Deferral
Percentages of Non-Highly Compensated Employees to the extent necessary to meet
the Actual Deferral Percentage test.

VESTING

PRE-TAX AND/OR AFTER-TAX CONTRIBUTIONS are always 100% vested.

MATCHING CONTRIBUTIONS AND/OR PROFIT SHARING CONTRIBUTIONS

You may elect a single vesting schedule for both Matching Contributions and
Profit Sharing Contributions or you may select different vesting schedules.
Matching Contributions and/or Profit Sharing Contributions will vest in
accordance with the following vesting schedule:

                              Graded Vesting Table

<TABLE>
<CAPTION>
  (1)                       (2)                       (3)
YEARS OF                  VESTED                 MINIMUM REQUIRED
SERVICE                 PERCENTAGE                 PERCENTAGE
<S>                     <C>                      <C>
Less than 1                                             0

At least 1    :                                         0

At least 2    :                                        20

At least 3    :                                        40

At least 4    :                                        60

At least 5    :                                        80

At least 6    :                                       100
</TABLE>

[ ]   FULL VESTING. Participants are 100% vested at all times.

[X]   CLIFF VESTING. Participants are 100% vested after completing 3 years of
      service (insert number; cannot be greater than 3). The Participant will be
      0% vested until completing the years of service specified above.

                                                                              10

<PAGE>
[ ]   GRADED VESTING. Participants are vested in accordance with the following
      vesting schedule. (A Participant's vested percentage is the percentage
      inserted in column (2) or the percentage in column (3), whichever is
      greater. Spaces left blank are treated as zeros).

[ ]   Applicable to Matching Contribution and Profit Sharing Contributions.

[ ]   Applicable to Matching Contributions  only.

Profit Sharing Contributions will vest in accordance with the following
schedule:

                    Graded Vesting Table

<TABLE>
<CAPTION>
    (1)                   (2)                        (3)
  YEARS OF              VESTED                MINIMUM REQUIRED
  SERVICE             PERCENTAGE                 PERCENTAGE
<S>                   <C>                     <C>
Less than 1    :                                     0

AT LEAST 1     :                                     0

At least 2     :                                     0

At least 3     :                                    20

AT LEAST 4     :                                    40

AT LEAST 5     :                                    60

At least 6     :                                    80

At least 7                                         100
</TABLE>

[ ]   FULL VESTING. Participants are 100% vested at all times.

[X]   CLIFF VESTING. Participants are 100% vested after completing _3_ years of
      service (insert number; cannot be greater than 5). The Participant will be
      0% vested until completing the years of service specified above.

[ ]   GRADED VESTING. Participants are vested in accordance with the following
      vesting schedule. (A Participant's vested percentage is the percentage
      inserted in column (2) or the percentage in column (3), whichever is
      greater. Spaces left blank are treated as zeros).

YEARS OF SERVICE EXCLUDED IN DETERMINING VESTED PERCENTAGES. Need not be
completed -check as many as desired.

[ ]   Years completed before the effective date of this Plan (or a predecessor
      plan).

[ ]   Years completed before the Participant's _______ birthday not greater
      than 18th).

FORFEITURES

Forfeitures under the Plan will be (choose one):

[X]   allocated to Participant's accounts during the Plan Year in the proportion
      that each such Participant's Compensation during such Plan Year bears to
      the total compensation during such Plan Year of all Participants

[ ]   used to reduce the amount the Employer must contribute to the Plan.

Forfeitures will be made at the time specified in Section 8.4 of the Popular
Master Plan document. You may choose to maintain [ ] individual Participant
Suspense Accounts or [X] a

                                                                              11

<PAGE>

Single Suspense Account for all forfeitures and choose whether forfeitures will
be invested according to [ ] the Participant's investment directions or [X] in
the default investment option selected by the Plan Sponsor.

LOANS

[X]   Loans from the Plan will be permitted, subject to the Plan's loan rules.
      (Loans will not be available to Owner-Employees unless one of the
      following occurs: such person has at his expense obtained an
      administrative exemption from ERISA's prohibited transaction rules from
      the United States Department of Labor with respect to such loan or the
      United States Department of Labor has issued a prohibited transaction
      class exemption covering such loans.)

[ ]   Loans to Participants form the Plan are not permitted.

IN-SERVICE WITHDRAWALS

The following provisions will govern the availability of in-service withdrawals
from a Participant's accounts. See Article 9 of the Plan document for additional
details, including definitions and limitations.

PROFIT SHARING CONTRIBUTIONS. In-service withdrawals from Profit Sharing
Contributions will not be allowed unless one of the following boxes is checked:

[ ]   In service withdrawals from Profit Sharing Contributions Account will
      only be allowed in case of a financial hardship as such term is defined in
      Article 9.1 of the Popular Master Plan Document or the Employer's
      Individual Plan Document.

[ ]   In-service withdrawals from Profit Sharing Contributions Account will be
      allowed for any reason.

PRE-TAX CONTRIBUTIONS. In-service withdrawals from Pre-Tax Contributions will
only be allowed in case of financial hardship as such term is defined in Article
9.1 of the Popular Master Plan Document or the Employer's Individual Plan
Document.

AFTER-TAX CONTRIBUTIONS. In-service withdrawals from After-Tax Contributions
will be allowed for any reason.

MATCHING CONTRIBUTIONS. In-service withdrawals from Matching Contributions will
not be allowed unless one of the following boxes is checked:

[ ]   In-service withdrawals from Matching Contributions Account will only be
      allowed in case of a financial hardship as such term is defined in Article
      9.1 of the Popular Master Plan Document or the Employer's Individual Plan
      Document.

[ ]   In-service withdrawals from Matching Contributions Account will be
      allowed for any reason.

                                                                              12

<PAGE>

ROLLOVER CONTRIBUTIONS.  Refer to Article 9 of the Popular Master Plan document.

WITHDRAWALS AFTER AGE 59 1/2 .

[ ]   If checked, after 59 1/2 a Participant may make in-service withdrawals
      from his Pre-Tax Contributions and, if applicable, from his Qualified
      Matching and Non-Elective Contributions Accounts without financial
      hardship (up to the vested percentage of each such accounts).

FINANCIAL HARDSHIP. An in-service withdrawal will be on account of financial
hardship only if the Participant has an immediate and heavy financial need and
the withdrawal is necessary to meet such need.

A withdrawal will be deemed to be on account of an immediate and heavy financial
need if it is occasioned by:

-     a deductible medical expense incurred by the Participant or his spouse,
      children or dependent; (not reimbursed by medical insured or otherwise;

-     purchase of the Participant's principal residence (not including mortgage
      payments);

-     tuition payments for the next semester or quarter of post-secondary
      education for the Participant or his spouse, child or dependent;

-     rent or mortgage payments to prevent the Participant's eviction from or
      the foreclosure of the mortgage on his principal residence; or

-     such other event or circumstances as the Puerto Rico Secretary of the
      Treasury through regulations may permit.

A Participant must establish to the Plan Administrator's satisfaction both that
the Participant has an immediate and heavy financial need and that the
withdrawal is necessary to meet the need.

The Trustee and the Plan Administrator shall agree to the most convenient way of
administering the financial hardship provisions of the Plan.

A Participant who makes a withdrawal on account of a financial hardship may not
make Pre-Tax Contributions or After-Tax Contributions hereunder (or under any
other Plan maintained by the Employer) for a period of 12 months following the
date of the in-service withdrawal.

PAYMENT. Participant's in-service withdrawal request shall be paid as soon as it
is administratively feasible following the date in which the Plan Participant
requests the distribution.

RETIREMENT AGE

NORMAL RETIREMENT AGE. A Participant will be fully vested and may retire after
the latter of: reaching age 65 or the fifth anniversary of the first day of the
Plan Year in which he/she commenced participation in the Plan.

                                                                              13

<PAGE>

DISABILITY RETIREMENT. A Participant will be fully vested and may retire before
normal retirement upon becoming disabled.

EARLY RETIREMENT AGE.

[X] If checked, a Participant will be fully vested and may retire prior to
Normal Retirement Age upon reaching age 60 and completing 5 years of service.

DISTRIBUTION OF VESTED BENEFITS BEFORE RETIREMENT, DEATH OR DISABILITY.

If the Participant terminates his employment with the Employer before reaching
his normal or early retirement age, becoming disabled or dying, Participant [X]
shall be [ ] shall not be allowed to apply for an early distribution of his plan
benefits.

DISTRIBUTION OF BENEFITS

Upon becoming entitled to the distribution of this Plan's benefits, the
Participants or their authorized representative must request from the Employer
that their benefits be distributed. The normal form of benefit under the Plan is
a lump sum distribution however, the Plan Sponsor may elect periodical payments
(below) as an optional form of benefit. If this Plan is a restatement of an
existing plan which provided for payment of benefits in the form of an annuity
this form of payment will be preserved. Please provide details in the space
provided below.

[X]   periodical payments (monthly, quarterly, semiannual or annual installments
      of substantially equal amounts over a period of 10 years certain not to
      exceed 10).

[ ]  Other (for amended and restated Plans with optional forms of benefits only)

If the Employer elects more that one method of distribution hereunder,
Participants shall elect under which of such methods his or her benefit shall be
distributed.

INVESTMENT FUNDS

All investment instructions as to each Participant's account will be directed by
the Participant and/or the Employer and/or the Trustee. If no investment
instructions are provided by the Participant and/or the Employer, and the
Trustee is a directed trustee, the Participant's account will be invested in the
money market fund included in the investment funds chosen by the Plan Sponsor.

For purposes of the Plan, the Trustee [X] shall be [ ] shall not be considered
as a directed trustee.

PARTICIPANT'S INVESTMENT INSTRUCTIONS

The Participants will be allowed to modify their investments instructions on a
[X] daily [ ] monthly [ ] quarterly [ ] semi annual [ ] annual basis.

                                                                              14

<PAGE>

PARTICIPANT'S CONTRIBUTIONS TO THE PLAN

The Participants will be allowed to modify or suspend their pre-tax and/or their
after-tax contributions to the Plan on a [X] monthly [ ] quarterly [ ] semi
annual [ ] annual basis.

POPULAR MASTER TRUST

By executing this Adoption Agreement the Plan Sponsor [X] adopts [ ] does not
adopt the Popular Master Trust established by Banco Popular de Puerto Rico to
carry out the purposes of the Plan and thus retain Banco Popular as Trustee. The
terms of the Trust and corresponding fees are contained in the Banco Popular de
Puerto Rico Master Defined Contribution Retirement Plan, Popular Master Trust
and Fee Schedule respectively, which are incorporated by reference into this
Adoption Agreement.

RECORDKEEPER

[ ] By executing this Adoption Agreement, the Plan Sponsor retains Banco Popular
de Puerto Rico as Recordkeeper of the Plan pursuant to the Recordkeeping
Agreement and Fee Schedule incorporated by reference into this Adoption
Agreement.

[X] The Plan Sponsor has selected as recordkeeper for the Plan:

Name: MFS Retirement Services, Inc.

Address:    P. O. Box 55274
            Boston, MA 02105-5274

Telephone No. (800) 343-2829     Telefax: (617) 954-6660

Contact Person Name: Michael Seldon

Telephone No: (800) 343-2829  ext. 54290  Telefax: (617) 957-6660
E-mail: mseldon@mfs.com

RECORDKEEPER AND TRUSTEE'S FEES

By executing this Adoption Agreement, the Plan Sponsor , if so selected, agrees
to retain Banco Popular de Puerto Rico as Recordkeeper and, if applicable, as
Trustee of the Plan, for an initial minimum period of three years. This
Agreement shall renew automatically for successive three year periods
indefinitely. The Plan Sponsor may terminate this Agreement at any time subject
to a written termination notice received by Banco Popular at least thirty days
prior to the effective date of termination. If termination occurs during the
initial three year period, the Plan Sponsor

                                                                              15

<PAGE>

agrees to compensate Banco Popular with a termination fee equal to three times
the total annual fees minus any amount already satisfied in connection with the
services rendered since the effective date of this agreement. Banco Popular may
change the Fee Schedule from time to time and shall provide written notification
to the Plan Sponsor. Termination may occur due to a termination and liquidation
of the Plan by the Plan Sponsor or due to a trust to trust transfer whereby a
successor trustee is appointed. Should Banco Popular be instructed to carry out
a trust to trust transfer, the Plan assets shall be transferred in cash.
Therefore, all positions of the Plan held in the Investment Funds shall be
liquidated.

VALUATION OF PARTICIPANT'S ACCOUNTS

The Participant's Accounts shall be valued [X] daily [ ] monthly [ ] quarterly
[ ] semi-annually [ ] annually.

PARTICIPANT'S ACCOUNT STATEMENTS

The Participants shall be provided with a statement of their account on a [ ]
monthly [X] quarterly [ ] semi-annually [ ] annual basis.

PLAN ADMINISTRATOR. The Plan Sponsor is the legal Plan Administrator under
ERISA.

SERVICE FEE DISCLOSURE

Banco Popular has agreed to make available plan recordkeeping, directed trustee
services, certain administration services, and mutual fund investment choices
(which have been provided separately).

For providing certain administrative or shareholder services to the mutual
funds, Banco Popular will receive an administrative fee from the mutual funds.
The rate or amount of the fees to be paid to Banco Popular by each mutual fund
is shown in parentheses on the fund list.

Banco Popular's annual fee for its services as directed-trustee and recordkeeper
will be billed to the Plan Sponsor separately based on the separate fee
schedule.

Banco Popular reserves the right to change the funds on the funds list from time
to time. Banco Popular will provide the Plan Sponsor with 60 days advance
written notice of any change thereto and the corresponding change in fees if
any. Banco Popular will try to find a suitable alternative if the Plan Sponsor
does not agree with the proposed substitution. However, if the Plan Sponsor does
not object in writing within the 60-day period, Banco Popular will make the
change. If the Plan Sponsor objects to be proposed change and a suitable
alternative cannot be found, the Plan Sponsor will be provided and additional 60
day period to find a new trustee for the Plan.

By executing this Adoption Agreement the Plan Sponsor acknowledges that (i)
Banco Popular has provided the Plan Sponsor with the mutual fund list, (ii) the
mutual funds list contains the rate or amount of fees to be paid to Banco
Popular, (iii) Banco Popular has the right to modify the mutual funds list in
such manner as Banco Popular, in its sole discretion, sees fit, (iv) the Plan
Sponsor has selected from the mutual funds list the mutual funds used as
investment options

                                                                              16

<PAGE>

for the Plan, (v) the Plan Sponsor has received copies of each mutual fund's
Prospectus and Statement of Additional Information, and (vi) the Plan Sponsor
agrees with the procedures disclosed herein with relation to a substitution of a
particular mutual fund.

EXECUTION OF ADOPTION AGREEMENT

The Plan Sponsor understands that, by establishing this Plan, it will have
certain legal responsibilities for which neither the Trustee nor the Plan
Sponsor will be responsible. The Plan Sponsor also understands that it will be
solely responsible for any taxes, costs or expenses arising from the
disqualification of the Plan. The Plan Sponsor warrants that it has obtained
legal and tax advice to the extent the Plan Sponsor deems necessary before
signing this Adoption Agreement.

PLAN SPONSOR

Name of Plan Sponsor: Stewart Enterprises, Inc.

Signed:

Print name and title:   Kenneth C. Budde, Executive Vice President and CFO

Date:

TRUSTEE

Name of Trustee:

Address:

Signed:

Print name and title:

Date:

The identifying number for the Banco Popular de Puerto Rico Popular Master
Defined Contribution Retirement Plan document is 01 and for this Adoption
Agreement is 102. The Plan Sponsor is:   Stewart Enterprises, Inc.
                                         110 Veterans Blvd. Ste. 500
                                         Metairie, LA 70005

Banco Popular de Puerto Rico will notify you if it amends or discontinues this
Popular Master Plan.

The Plan Sponsor should insure that this Adoption Agreement has been filled out
completely and properly. Failure to do so may result in Plan disqualification.

                                                                              17

<PAGE>

                               POPULAR MASTER PLAN
                  PLAN SPONSOR'S SELECTION OF INVESTMENT FUNDS

Plan Sponsor Name:     Stewart Enterprises, Inc.

Plan Name:     Stewart Enterprises Puerto Rico Employees Retirement Trust

The Plan Sponsor selects the following Investment Funds for the above named
plan: (At least three.)

1. MFS Bond Fund-A

2. Stewart Enterprises Co. Stock Fund

3. Massachusetts Investors Trust-A

4. Legg Mason Value Trust

5. MFS Emerging Growth Fund-A

6. MFS Global Equity Fund-A

7. Legg Mason Special Investment Trust

8. MFS new Discovery Fund

9. Legg Mason Opportunity Trust

10. MFS Core Growth Fund-A

11. Royce Total Return Fund

12. MFS Conservative Allocation Fund

13. MFS Moderate Allocation Fund

14. MFS Growth Allocation Fund

PLAN SPONSOR

      Plan Sponsor Name    : Stewart Enterprises, Inc.

      Signed               : _________________________________________________

      Print name and Title : Kenneth C. Budde, Executive Vice President and CFO

      Date:

TRUSTEE

      Trustee Name:

      Signed               : _________________________________________________

      Print name and Title :

      Date:

                                                                              18

<PAGE>

                                   ADDENDUM A

                               POPULAR MASTER PLAN
                        ADDITIONAL EMPLOYER'S INFORMATION

EMPLOYER INFORMATION (Complete even if only one Employer will adopt the Plan;
attach additional sheets to provide information for additional Employers
adopting the Plan. References in this Adoption Agreement to any Employer shall
be in reference to all employers adopting the Plan.)

Name of Employer:          Empresas Stewart - Cementerios

Address (Physical):        Calle San Jose 607

                           Santurce, PR 00909

Address (Postal):          P. O. Box 11187

                           San Juan, PR 00910-2287

Telephone: (787) 268-0040        Telefax: (787) 268-3533

Name of Person for Banco Popular de Puerto Rico to Contact: Diana Ledesma

Position: Director, Human Resources, puerto Rico Region-

Telephone:(787) 268-0040    Telefax: (787) 268-3533   E-Mail: dledesma@stei.com

Employer tax identification number: 66-0575633

Type of business:

[ ]   Unincorporated Trade or Business

[X]   Partnership

[ ]   Corporation

[ ]   Other (specify)

Employer's taxable year:

[ ]   Calendar Year

[X]   Fiscal Year ending on October 31.

Payroll frequency:         [X]  Weekly         [X] Bi-Weekly
                           [ ]  Semi-Monthly   [ ] Monthly
                           [ ]  Semi-Weekly    [ ] Other

                                                                              19

<PAGE>

                                   ADDENDUM B

                               POPULAR MASTER PLAN
                        ADDITIONAL EMPLOYER'S INFORMATION

EMPLOYER INFORMATION (Complete even if only one Employer will adopt the Plan;
attach additional sheets to provide information for additional Employers
adopting the Plan. References in this Adoption Agreement to any Employer shall
be in reference to all employers adopting the Plan.)

Name of Employer:          The Simplicity Plan of Puerto Rico

Address (Physical):        Ave. Fndz. Juncos 1756

                           Altos Funeraria La Cruz

                           Santurce, PR 00909

Address (Postal):          P. O. Box 10219

                           Santurce Station

                           San Juan, PR 00908-1219

Telephone: (787) 728-1440  Telefax: (787) 728-1360

Name of Person for Banco Popular de Puerto Rico to Contact: Diana Ledesma

Position: Director, Human Resources

Telephone: (787) 268-0040   Telefax: (787) 268-3533   E-Mail: dledesma@stei.com

Employer tax identification number: 66-0575637

Type of business:

[ ]   Unincorporated Trade or Business

[X]   Partnership

[ ]   Corporation

[ ]   Other (specify)

Employer's taxable year:

[ ]   Calendar Year

[X]   Fiscal Year ending on October 31.

Payroll frequency:         [X]  Weekly         [X] Bi-Weekly
                           [ ]  Semi-Monthly   [ ] Monthly
                           [ ]  Semi-Weekly    [ ] Other

                                                                              20

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