Document:

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EXHIBIT 10.3

                            ASSET PURCHASE AGREEMENT

      This ASSET PURCHASE AGREEMENT (this "AGREEMENT") is made and entered into
as of February 1, 2005 by and among INTEGRATED ELECTRICAL SERVICES, INC., a
Delaware corporation (the "PARENT"), HOWARD BROTHERS ELECTRIC CO., INC., a
Delaware corporation (the "COMPANY"), HOWARD BROTHERS ELECTRIC OF CHARLOTTE,
LLC, a limited liability company organized in the State of North Carolina (the
"BUYER"), and DAVID LATOUR, an individual and resident of the State of North
Carolina ("GUARANTOR")

                                   WITNESSETH:

      WHEREAS, the Parent owns, either directly or indirectly, all of the issued
and outstanding capital stock of the Company, which is engaged in the electrical
construction and services business (the "BUSINESS");

      WHEREAS, the Parent and the Company desire to sell to the Buyer
substantially all of the Company's assets, which are more fully described in
Section 1.1 hereof, and the Buyer desires to acquire such assets in
consideration of the payment by the Buyer of the purchase price and the
assumption by the Buyer of the liabilities provided for herein, all upon the
terms and subject to the conditions hereinafter set forth;

      WHEREAS, Guarantor is the President and owner of the Buyer and has agreed
to personally guarantee to the Parent and the Company the Buyer's performance of
all representations, warranties, covenants, agreements and conditions set forth
herein;

      NOW, THEREFORE, for and in consideration of the premises and of the
respective representations, warranties, covenants, agreements and conditions of
the parties contained herein, it is hereby agreed as follows:

1.    PURCHASE AND SALE OF ASSETS.

      1.1 Transfer of Assets. On the terms and subject to the conditions set
forth in this Agreement, on the Closing Date (as defined in Section 2.1 hereof),
the Company shall sell, convey, assign, transfer and deliver to the Buyer, and
the Buyer shall purchase and acquire from the Company (except as provided in
Section 1.2 hereof) all of the assets, rights and properties of the Parent or
the Company set forth on Schedule 1.1. The assets described in this Section 1.1
as being sold, conveyed, assigned, transferred and delivered to the Buyer
hereunder are sometimes hereinafter referred to collectively as the "ASSETS".

      1.2 Excluded Assets. It is expressly understood and agreed that the Assets
shall not include the following (such assets are hereinafter referred to
collectively as the "EXCLUDED ASSETS"):

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            (a) Cash and cash equivalents or similar type investments, such as
      certificates of deposit, Treasury bills and other marketable securities;

            (b) Claims for refunds of taxes and other governmental charges to
      the extent such refunds relate to periods ending on or prior to the
      Closing Date;

            (c) Any asset, tangible or intangible, which is not freely
      transferable without the consent of a third party, upon the failure to
      obtain such consent;

            (d) The original corporate minute books, stock books, financial
      records, tax returns, personnel and payroll records and corporate policies
      and procedures manuals of the Company and other records required by
      applicable laws to be retained;

            (e) Any contract or agreement, whether written or oral, between the
      Company and IES Contractors, Inc.; and

            (f) Any asset not set forth on Schedule 1.1.

      1.3 Instruments of Conveyance and Transfer.

            (a) At the Closing, the Buyer, the Company and the Parent shall
      enter into a Bill of Sale, Assignment and Assumption Agreement in the form
      attached hereto as Exhibit A, transferring to the Buyer good and
      indefeasible title to the Assets, subject only to Permitted Encumbrances.

            (b) At the Closing, the Buyer and the Parent shall deliver such
      other instruments of transfer and assignment in respect of the Assets as
      the Buyer shall reasonably require and as shall be consistent with the
      terms and provisions of this Agreement.

            (c) At the Closing, the Buyer shall, and shall cause the Transferred
      Employees (as hereinafter defined) to, resign as officers and directors of
      the Company and any other affiliates of the Parent.

      1.4 Further Assurances. From time to time after the Closing, the Parent
and the Company will execute and deliver, or cause to be executed and delivered,
without further consideration, such other instruments of conveyance, assignment,
transfer and delivery and will take such other actions as the Buyer may
reasonably request in order to more effectively transfer, convey, assign and
deliver to the Buyer, and to place the Buyer in possession and control of any of
the Assets or to enable the Buyer to exercise and enjoy all rights and benefits
of the Company and Parent with respect thereto.

      1.5 Liabilities. On the Closing Date, the Buyer will assume and agree to
pay and discharge all liabilities of the Company, known or unknown, absolute or
contingent (the "ASSUMED LIABILITIES") other than the liabilities set forth on
Schedule 1.5 (the "RETAINED LIABILITIES"), which shall be retained by the Parent
or the Company, respectively.

      1.6 Expenses: Consents and Taxes. The Buyer shall pay, or cause to be paid
(i) all costs and expenses of obtaining all consents of third parties for the
assignment of any of the Assets,

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and (ii) all transfer, stamp, sales, use or other similar taxes or duties
payable in connection with the sale and transfer of the Assets to the Buyer.

2.    CLOSING; PURCHASE PRICE.

      2.1 Closing Date. The consummation of the transactions contemplated in
this Agreement (the "CLOSING") shall take place at the offices of Gardere Wynne
Sewell LLP, 1000 Louisiana, Suite 3400, Houston, Texas at 10:00 a.m., Central
time, February 1, 2005 (the "CLOSING DATE") contemporaneously with the execution
of this Agreement or at such other place and time as the parties hereto may
mutually agree.

      2.2 Purchase Price. The aggregate purchase price for the Assets shall be
$1,443,000 (the "PURCHASE PRICE"), subject to adjustment pursuant to Section 2.3
below, plus the Buyer's assumption of the Assumed Liabilities pursuant to
Section 1.5 above. The Purchase Price shall be payable by the Buyer at the
Closing to the Company in immediately available funds by confirmed wire transfer
to a bank account to be designated by the Company.

      2.3 Cash Reconciliation. Within 60 days following the Closing Date, the
Company shall prepare and deliver to the Buyer a schedule setting forth, for the
period commencing on October 1, 2004, and ending as of the Closing, (a) the cash
disbursements funded by the Company, the Parent or any of their affiliates for
the benefit of the Company, to include only those made in the ordinary course to
trade vendors and those made in the ordinary course for Company employee benefit
plans (the "DISBURSEMENTS"), and (b) the cash deposits made by the Company (the
"DEPOSITS"). Within three business days following the Buyer's receipt of such
schedule, (i) the Buyer shall remit to the Company in immediately available
funds, the amount by which the Disbursements exceed the Deposits, if any; or
(ii) the Company shall remit to the Buyer, in like manner and within such
period, the amount by which Deposits exceed the Disbursements, if any.
Disbursements shall include, but not be limited to, actual cash amounts paid by
the Company or the Parent on behalf of the Company with respect to pre-Closing
periods, including (i) amounts paid after September 30, 2004 for checks issued
by the Company or Parent on behalf of the Company on or before September 30,
2004 that had not cleared the banks on September 30, 2004, which amounts were
reflected on the September 30, 2004 balance sheet as negative cash amounts, (ii)
checks issued by the Company or Parent on behalf of the Company subsequent to
September 30, 2004, but before the Closing that have not cleared the banks as of
the Closing, (iii) workers compensation, general liability, auto insurance,
health and similar insurance premiums paid by the Parent on behalf of the
Company with respect to periods prior to the Closing, whether accrued prior to
or after the Closing, and (iv) other amounts paid by the Company or by the
Parent on behalf of the Company with respect to periods prior to the Closing,
but for which invoices are received or accruals are made after the Closing Date.
Deposits shall include, but not be limited to, actual cash amounts received by
the Company or the Parent on behalf of the Company subsequent to September 30,
2004, but before the Closing that have not been reflected in the Company's
accounts as of the Closing. Disbursements and Deposits will be accounted for in
accordance with Parent's accounting practices consistent with past periods. An
illustrative example of this Cash Reconciliation calculation is attached and
incorporated as Exhibit C.

      2.4 Purchase Price Allocation. As soon as practicable after the Closing
Date, the Company shall prepare IRS Form 8594 to report the allocation of the
Purchase Price among the

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Assets. Each party hereto agrees not to assert, in connection with any tax
return, tax audit or similar proceeding, any allocation that differs from that
set forth in such Form 8594. Such allocation shall be reasonably consistent with
the manner in which the Purchase Price was determined.

3.    REPRESENTATIONS AND WARRANTIES.

      3.1 Representations and Warranties of the Company and the Parent. The
Company and the Parent represent and warrant to the Buyer as follows:

            (a) Organization, Authority and Qualification of the Company. The
      Company is a corporation duly organized and validly existing under the
      laws of the State of Delaware and the Company has full corporate power and
      authority to own or lease its properties and to carry on its business in
      such state. The Company has the full corporate power and authority to
      execute, deliver and perform this Agreement, and this Agreement has been
      duly and validly executed and delivered by the Company and constitutes the
      valid and legally binding obligation of the Company, subject to general
      equity principles, enforceable in accordance with its terms, except as the
      same may be limited by bankruptcy, insolvency, reorganization or similar
      laws affecting the rights of creditors generally.

            (b) No Violation. The Company is not in default under or in
      violation of its Articles of Incorporation or Bylaws. Neither Parent nor
      Company are a party to any material agreement which would prohibit this
      transaction.

            (c) Title to Properties; Absence of Liens and Encumbrances. The
      Company owns good and indefeasible title to the Assets, free and clear of
      all claims, liens, security interests, charges, leases, encumbrances,
      licenses or sublicenses and other restrictions of any kind and nature,
      other than the claims, liens, security interests, charges, leases,
      encumbrances, licenses or sublicenses either included among the Assumed
      Liabilities or specifically set forth on Schedule 3.1(c) hereto
      ("PERMITTED ENCUMBRANCES").

            (d) No Other Violations or Breaches; Government Approval. The
      execution and delivery of this Agreement and the other agreements and
      instruments to be executed and delivered in connection herewith by the
      Parent and the Company (together, the "SELLERS"), the fulfillment of and
      compliance by them with the terms and conditions hereof and thereof and
      the consummation by them of the transactions contemplated hereby and
      thereby will not:

                  (i) Require action by the Sellers, or any filing by any of
      them, with any Governmental Entity prior to the Closing except in
      connection with the filing of UCC lien release documents;

                  (ii) Contravene, conflict with or violate any of the
      provisions of the Articles of Incorporation or Bylaws (or the equivalent)
      of the Sellers, or any resolutions adopted by the Board of Directors or
      shareholders of the Sellers;

                  (iii) Result in the creation of any Encumbrance on any of the
      Assets except for Permitted Encumbrances;

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                  (iv) Conflict with, or constitute a breach or default under,
      or give rise to any right of termination, cancellation or acceleration
      under, any term or provision of any contract, agreement, lease, mortgage,
      deed of trust, note, bond, loan agreement, indenture, other instrument
      evidencing borrowed money to which the Parent is a party or by which its
      assets are bound, or an event which with notice, lapse of time, or both,
      would result in any such conflict, breach, default or right; or

                  (v) Violate any provision of any law, statute, rule or
      administrative regulation or any judgment, order, injunction or decree of
      any Governmental Entity applicable to or binding upon the Sellers.

      3.2 Representations and Warranties of the Buyer. The Buyer and Guarantor,
jointly and severally, represent and warrant to the Parent and the Company as
follows:

            (a) Organization, Authority and Qualification of the Buyer. The
      Buyer is a limited liability company duly organized and validly existing
      under the laws of the State of North Carolina and the Buyer has full
      corporate power and authority to own or lease its properties and to carry
      on its business in such state. The Buyer has the full corporate power and
      authority to execute, deliver and perform this Agreement, and this
      Agreement has been duly and validly executed and delivered by the Buyer
      and constitutes the valid and legally binding obligation of the Buyer,
      subject to general equity principles, enforceable in accordance with its
      terms, except as the same may be limited by bankruptcy, insolvency,
      reorganization or similar laws affecting the rights of creditors
      generally.

            (b) No Violation. The Buyer is not in default under or in violation
      of its Articles of Organization or Regulations.

            (c) Certain Fees. The Buyer has not employed any broker or finder or
      incurred any other liability for any brokerage fees, commissions or
      finders' fees in connection with the transactions contemplated hereby.

            (d) Financial Information. The financial and management reports
      (including, without limitation, WIP schedules) heretofore delivered or
      made by Buyer, Guarantor, or the Company to the Parent are true and
      correct in all material respects and do not omit to state any fact
      necessary to make any of them, in light of the circumstances in which
      made, not misleading. All executed change orders have been recorded, all
      agreed change orders have been executed or are listed on Schedule 3.2(d),
      and all checks and cash received by the Company and its affiliates have
      been deposited.

      3.3 No Warranty. The Buyer and the Guarantor acknowledge that the
Guarantor, through previous ownership and/or management of the Company, is
familiar with the Assets and the operations of the Company, and has access to
any information pertaining thereto and has made such information available to
Buyer. Neither the Company nor the Parent, nor any of their respective
directors, officers, employees, agents or representatives has made, or shall be
deemed to have made, and no such person shall be liable for, or bound in any
manner by, and Buyer and the Guarantor have not relied upon and will not rely
upon, any express or implied representations, warranties,

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guaranties, promises or statements pertaining to the Business or Assets except
as specifically provided in this Section 3. The Buyer and the Guarantor
acknowledge that in making the decision to enter into this Agreement and to
consummate the transactions contemplated hereby, they have relied solely on the
basis of their own independent investigation of the Business and the Assets and
upon the express written representations, warranties and covenants in this
Agreement. Without diminishing the scope of the express written representations,
warranties and covenants of the Company and the Parent in this Agreement and
without affecting or impairing their right to rely thereon, the Buyer and the
Guarantor acknowledge that (a) they have not relied, in whole or in part, on any
information contained in documents, materials or other information provided to
them by, or on behalf of, Company or the Parent, and (b) neither Company nor the
Parent is making any representations or warranties with respect to (i) any such
documents, materials or other information, other than, in each case, as set
forth in this Agreement or (ii) the value, condition, merchantability,
marketability, profitability, suitability or fitness for a particular use or
purpose of the Assets. ACCORDINGLY, THE ASSETS ARE BEING TRANSFERRED "AS IS,
WHERE IS." EXCEPT FOR THE REPRESENTATIONS AND WARRANTIES SET FORTH IN SECTION
3.1 OF THIS AGREEMENT, THE COMPANY AND PARENT MAKE ABSOLUTELY NO REPRESENTATIONS
OR WARRANTIES WHATSOEVER, EXPRESS OR IMPLIED, REGARDING THE ASSETS, INCLUDING
WITHOUT LIMITATION ANY IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR A
PARTICULAR PURPOSE, OR THE ABILITY OF THE COMPANY TO ASSIGN THE ASSETS, OR
OBTAIN CONSENTS TO ANY ASSIGNMENT.

4.    COVENANTS; ACTION SUBSEQUENT TO CLOSING.

      4.1 Access to Books and Records. Until the third anniversary of the
Closing Date, the Parent and the Company shall afford, and will cause its
affiliates to afford, to the Buyer, its counsel, accountants and other
authorized representatives, during normal business hours, reasonable access to
the books, records and other data of the Company and the Business with respect
to periods ending on or prior to the Closing Date to the extent that such access
may be reasonably required by the Buyer to facilitate (i) the investigation,
litigation and final disposition of any claims which may have been or may be
made against the Buyer in connection with the Business or (ii) for any other
reasonable business purpose. Following the Closing, the Buyer shall prepare and
deliver to the Parent on or before February 12, 2005, on behalf of the Company,
all regularly prepared financial reports and statements for periods up to and
including the Closing Date, and shall cooperate with and provide assistance to
the Parent and the Company in their financial and tax reporting obligations for
the periods up to and including the Closing Date.

      4.2 Mail. The Parent and the Company authorize and empower the Buyer on
and after the Closing Date to receive and open all mail received by the Buyer
relating to the Business or the Assets and to deal with the contents of such
communications in any proper manner. The Parent and the Company shall promptly
deliver to the Buyer any mail or other communication received by them after the
Closing Date pertaining to the Business or the Assets. The Buyer shall promptly
deliver to the Parent any mail or other communication received by it after the
Closing Date pertaining to the Excluded Assets or Retained Liabilities, and any
cash, checks or other instruments of payment in respect of the Excluded Assets.
As soon as is practicable after the Closing Date, and in no event more than ten
days thereafter, the Buyer shall mail to its customers and vendors a notice

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of the sale in the form provided by the Parent, with such changes thereto as
Buyer and Parent shall agree.

      4.3 No Consent Contracts. To the extent that any contract of the Company
included in the Assets may not be assigned without the consent of any third
party, and such consent is not obtained prior to Closing (such contracts
referred to as "NO CONSENT CONTRACTS"), this Agreement and any assignment
executed at Closing pursuant hereto shall not constitute an assignment thereof,
but to the extent permitted by law shall constitute an equitable assignment by
the Company and assumption by the Buyer of the Company's rights and obligations
under the applicable No Consent Contract, with the Company making available to
the Buyer the benefits thereof and the Buyer performing the obligations
thereunder on the Company's behalf.

      4.4 Preparation and Filing of Certain Tax Forms. The Buyer shall prepare
and submit to Parent for execution and filing on a timely basis all Forms W-2,
940, 941 and 1099 with all appropriate Governmental Entities, including without
limitation any summary schedules and transmittal forms, as well as any similar
filings required by any state or local Governmental Entity, with respect to all
wages and other reportable payments for the calendar year 2004 and for the
partial year in 2005 ending on the Closing Date. As used herein, "GOVERNMENTAL
ENTITY" means any court or tribunal in any jurisdiction (domestic or foreign) or
any public, governmental or regulatory body, agency, department, commission,
board, bureau or other authority or instrumentality, domestic or foreign. The
Buyer shall pay all administrative amounts owed as a result of or otherwise
related to such filings with the exception of any tax, interest, or penalties
associated with periods prior to the Closing. The Company will pay, on or before
they become due, any employment taxes withheld by it (including, without
limitation income taxes withheld on employee wages) which have not been
previously paid. The Buyer, Parent and the Company shall cooperate in making all
such filings and shall make available to the others such information as any of
them requires to assure such filings are made on a timely and accurate basis.

      4.5 The Parent Name and Logos. As soon as practicable (but in any event
within 90 days) after the Closing Date, the Buyer, at its expense, shall remove
all the Parent and its affiliates' names and logos from all of the Assets.
Except as specifically provided in Section 1, nothing in this Agreement shall
constitute a license or authorization for the Buyer to use in any manner any
name, logo or mark owned by or licensed to the Company, the Parent or their
respective affiliates which bears any reference to IES or any subsidiary of IES
other than the Company. The name "Howard Brothers" and "Howard Brothers
Electric" shall become the exclusive property of the Buyer following the Closing
and shall not be used by the Company, Parent or their respective affiliates;
provided that Parent will be given a reasonable period of time (not to exceed 90
days) to change the Company's name after the Closing Date.

      4.6 Leased Assets. At the Closing, the Buyer, at its expense, shall pay
off or refinance the leases on the vehicles listed on Schedule 4.6 attached
hereto, and in connection therewith shall obtain the release of Parent and the
Company for all liability under such vehicle leases. As soon as practicable (but
in any event within 90 days) after the Closing Date, the Buyer, at its expense,
shall pay off or refinance the leases on the other assets listed on Schedule 4.6
attached hereto, and in connection therewith shall obtain the release of Parent
and the Company for all liability under such leases.

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      4.7 Chubb Bonds. Buyer agrees that at the Closing it shall execute and
deliver to the Federal Insurance Company and its subsidiary or affiliated
insurers and any applicable co-sureties (collectively, "FEDERAL"), a General
Agreement of Indemnity in the form attached as Exhibit B, pursuant to which
Buyer and Guarantor agree to (i) indemnify Federal with respect to the
performance and completion of the bonded obligations as set forth therein; and
(ii) replace within ninety (90) days the bonds identified as Cancelable Bonds
therein. Buyer further agrees to continue to provide to Federal monthly written
reports (with a copy to the Parent) as to the progress of the completion of the
bonded jobs. Buyer and Guarantor further agree to provide, from time to time and
at the request of the Parent, a certificate or certificates certifying that the
Cancelable Bonds have been replaced, and as to such other matters concerning the
performance by the Buyer of its post-closing obligations under this Agreement as
Parent shall request.

      4.8 Retained Claims. The Company shall retain liability for certain
insured claims as set forth in Schedule 1.5, paragraph 5 (the "RETAINED
CLAIMS"). The Buyer and the Guarantor agree to cooperate with the Company and
the Parent in the defense of the Retained Claims and to make available the
Buyer's personnel and facilities for that purpose. The Company shall retain as
Excluded Assets and not transfer to the Buyer all books and records associated
with the Retained Claims.

5.    INDEMNIFICATION.

      5.1 Survival. The representations and warranties of the Company, the
Parent, the Buyer and the Guarantor contained in this Agreement, any schedules
delivered by or on behalf of the Company and the Buyer pursuant to this
Agreement, or in any certificate, instrument, agreement or other writing
delivered by or on behalf of the Company, the Parent, the Buyer or the Guarantor
pursuant to this Agreement shall survive the consummation of the transactions
contemplated herein; provided that all such representations and warranties of
the Company, the Parent and the Buyer shall be of no further force and effect,
and no claim for indemnification by the Buyer, the Company or the Parent
pursuant to this Section 5 may be brought for any reason, after the expiration
of twelve (12) months from the Closing Date (the "SURVIVAL PERIOD"), except for
the representations and warranties contained in Section 3.1(c), which shall
survive indefinitely. Anything to the contrary notwithstanding, a claim for
indemnification which is made but not resolved prior to the expiration of the
Survival Period may be pursued and resolved after such expiration.

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      5.2 Indemnification by the Company.

            (a) In accordance with and subject to the provisions of this Section
      5, the Company and the Parent shall indemnify and hold harmless the Buyer
      from and against and in respect of any and all loss, damage, diminution in
      value, liability, cost and expense, including reasonable attorneys' fees
      and amounts paid in settlement (collectively, the "BUYER INDEMNIFIED
      LOSSES"), suffered or incurred by the Buyer by reason of, or arising out
      of (i) any misrepresentation or breach of representation or warranty of
      the Company or the Parent contained in this Agreement, or in any schedules
      delivered to the Buyer by or on behalf of the Company or the Parent
      pursuant to this Agreement; (ii) the breach of any covenant or agreement
      of the Company or the Parent contained in this Agreement; or (iii) the
      Retained Liabilities.

            (b) The Company and the Parent shall reimburse the Buyer on demand
      for any Buyer Indemnified Losses suffered by the Buyer with respect to
      matters other than claims, actions or demands brought, made or instituted
      by a third party ("THIRD PARTY CLAIMS"). With respect to Third Party
      Claims, the Company and the Parent shall reimburse the Buyer on demand for
      any Buyer Indemnified Losses suffered by the Buyer, based on the judgment
      of any court of competent jurisdiction or pursuant to a bona fide
      compromise or settlement in respect of any Buyer Indemnified Losses. The
      Company and the Parent shall have the opportunity to defend at their
      expense any claim, action or demand for which the Buyer claims indemnity
      against the Company or the Parent; provided that: (i) the defense is
      conducted by reputable counsel; (ii) the defense is expressly assumed in
      writing within twenty (20) days after written notice of the claim, action
      or demand is delivered to the Company and the Parent; and (iii) counsel
      for the Buyer may participate at all times and in all proceedings (formal
      and informal) relating to the defense, compromise and settlement of the
      claim, action or demand at the expense of the Buyer.

      5.3 Indemnification by the Buyer.

            (a) In accordance with and subject to the provisions of this Section
      5, the Buyer and Guarantor shall, jointly and severally, indemnify and
      hold harmless the Company, the Parent and their respective affiliates (for
      purposes of this Section 5, the "COMPANY INDEMNITEES") from and against
      and in respect of any and all loss, damage, diminution in value,
      liability, cost and expense, including reasonable attorneys' fees and
      amounts paid in settlement (collectively, the "COMPANY INDEMNIFIED
      LOSSES"), suffered or incurred by the Company Indemnitees by reason of, or
      arising out of (i) any misrepresentation or breach of representation or
      warranty of the Buyer or Guarantor contained in this Agreement, or in any
      schedules delivered to the Company or the Parent by or on behalf of the
      Buyer or Guarantor pursuant to this Agreement; (ii) or the breach of any
      covenant or agreement of the Buyer or Guarantor contained in this
      Agreement; (iii) the Assumed Liabilities, including, without limitation,
      any liability to sureties with respect to bonded jobs; or (iv) the
      operation of the Business following the Closing, including, but not
      limited to, any claims made by Transferred Employees concerning COBRA, the
      WARN Act, unemployment claim liability, or any similar matters as a result
      of the termination by Buyer of the Transferred Employees.

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            (b) The Buyer and the Guarantor, jointly and severally (the "BUYER
      INDEMNIFYING PARTIES"), shall reimburse the Company Indemnitees on demand
      for any Company Indemnified Losses suffered by the Company Indemnitees
      with respect to matters other than Third Party Claims. With respect to
      Third Party Claims, the Buyer Indemnifying Parties shall reimburse the
      Company Indemnitees on demand for any Company Indemnified Losses suffered
      by the Company Indemnitees, based on the judgment of any court of
      competent jurisdiction or pursuant to a bona fide compromise or settlement
      in respect of any Company Indemnified Losses. The Buyer Indemnifying
      Parties shall have the opportunity to defend at their expense any claim,
      action or demand for which the Company Indemnitees claim indemnity against
      the Buyer Indemnifying Parties; provided that: (i) the defense is
      conducted by reputable counsel; (ii) the defense is expressly assumed in
      writing within twenty (20) days after written notice of the claim, action
      or demand is delivered to the Buyer Indemnifying Parties; and (iii)
      counsel for the Company and the Parent may participate at all times and in
      all proceedings (formal and informal) relating to the defense, compromise
      and settlement of the claim, action or demand at the expense of the
      Company and the Parent.

      5.4 Limitation and Payment on Claims. No claim shall be brought under this
Section 5 for breach of any representation or warranty, and no party hereto
shall be entitled to receive any payment with respect thereto, until such time
as, and only to the extent that, the aggregate amount of such claim(s) that such
party has equals or exceeds $100,000 (the "DEDUCTIBLE"); provided, however, that
the Deductible shall not apply to any obligations under Section 2.3. Anything to
the contrary notwithstanding, the Company and the Parent shall not be liable
under this Section 5 for Buyer Indemnified Losses in excess of the Purchase
Price.

      5.5 Sole Remedy. The sole remedy of the Company, the Parent and the Buyer
Indemnifying Parties for breach of the representations and warranties set forth
in Section 3 shall be pursuant to this Section 5.

6.    DISPUTE RESOLUTION.

      6.1 Arbitration.

            (a) Any controversy, dispute or claim arising out of or relating in
      any way to this Agreement or the other agreements contemplated by this
      Agreement or the transactions arising hereunder (including the validity,
      interpretation or applicability of this Section 6.1) shall be settled
      exclusively by final and binding arbitration in Houston, Texas. Such
      arbitration will apply the laws of the State of Texas and the commercial
      arbitration rules of AAA to resolve the dispute, and will be administered
      by the AAA.

            (b) Written notice of arbitration must be given within one year
      after the notifying party has knowledge of accrual of the claim on which
      the notice is based. If the claiming party fails to give notice of
      arbitration within that time, the claim shall be deemed to be waived and
      shall be barred from either arbitration or litigation.

            (c) Such arbitration shall be conducted by one independent and
      impartial arbitrator to be selected by mutual agreement of the parties, if
      possible. If the parties fail to reach agreement regarding appointment of
      an arbitrator within thirty (30) days following

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<PAGE>

      receipt by one party of the other party's notice of arbitration, the
      arbitrator shall be selected from a list or lists of proposed arbitrators
      submitted by AAA. Unless the parties agree otherwise, the arbitrator shall
      be a licensed attorney with at least ten years of experience in the
      practice of law. The selection process shall be that which is set forth in
      the AAA commercial arbitration rules then prevailing, except that (A) the
      number of preemptory strikes shall not be limited and (B), if the parties
      fail to select an arbitrator from one or more lists, AAA shall not
      initially have the power to make an appointment but shall continue to
      submit additional lists until an arbitrator has been selected, but if no
      such arbitrator is selected within sixty (60) days after the receipt of
      the first notice of arbitration, the AAA shall have the power to make an
      appointment and shall promptly do so. Initially, however, promptly
      following its receipt of a request to submit a list of proposed
      arbitrators, AAA shall convene the parties in person or by telephone and
      attempt to facilitate their selection of an arbitrator by agreement. If
      the arbitrator should die, withdraw or otherwise become incapable of
      serving, a replacement shall be selected and appointed in a like manner.

            (d) The arbitrator shall render an opinion setting forth findings of
      fact and conclusions of law with the reasons therefor stated. A transcript
      of the evidence adduced at the hearing shall be made and shall, upon
      request, be made available to either party. The fees and expenses of the
      arbitrator shall be shared equally by the parties and advanced by them
      from time to time as required; provided that at the conclusion of the
      arbitration, the arbitrator may award costs and expenses (including the
      costs of the arbitration previously advanced and the fees and expenses of
      attorneys, accountants and other experts). No pre-arbitration discovery
      shall be permitted, except that the arbitrator shall have the power in his
      or her sole discretion, on application by either party, to order
      pre-arbitration examination of the witnesses and documents that the other
      party intends to introduce in its case-in-chief at the arbitration
      hearing. The arbitrator shall render his or her opinion and/or award
      within ninety (90) days of the conclusion of the arbitration hearing. The
      arbitrator shall not be empowered to award to either party any punitive
      damages in connection with any dispute between them arising out of or
      relating in any way to this Agreement or the other agreements contemplated
      hereby or the transactions arising hereunder or thereunder, and each party
      hereby irrevocably waives any right to recover such damages. The
      arbitration hearings and award shall be maintained in confidence.

Notwithstanding anything to the contrary provided in this Section 6.1 and
without prejudice to the above procedures, either party may apply to any court
of competent jurisdiction for temporary injunctive or other provisional judicial
relief if such action is necessary to avoid irreparable damage or to preserve
the status quo until such time as the arbitrator is selected and available to
hear such party's request for temporary relief. The award rendered by the
arbitrator shall be final and not subject to judicial review and judgment
thereon may be entered in any court of competent jurisdiction.

                                       11
<PAGE>

7.    EMPLOYEE MATTERS.

      7.1 Hiring.

            (a) The Buyer shall hire (subject to each employee's agreement),
      effective as of the Closing Date, all of the employees of the Company on
      the day immediately prior to the Closing Date, active or inactive (such
      employees being hereafter referred to as the "TRANSFERRED EMPLOYEES") at a
      comparable job and at a rate of pay not less than each such Transferred
      Employee's pay as of the Closing Date. Upon request of the Buyer, the
      Company shall provide the Buyer reasonable access to data (including
      computer data) regarding the ages, dates of hire, compensation and job
      description of the Transferred Employees.

            (b) The Buyer shall assume and be responsible for any severance
      costs associated with the termination of the Transferred Employees'
      employment with the Company. The Buyer shall discharge all liabilities and
      claims based on occurrences or conditions first occurring or commencing on
      or after the Closing Date with respect to Transferred Employees arising
      out of their employment with the Buyer after the Closing Date, including,
      but not limited to, any claims arising out of any employee benefit plan,
      policy, program or arrangement maintained at any time by the Buyer (a
      "BUYER PLAN" or collectively, the "BUYER PLANS"), except Buyer shall not
      assume any liabilities with respect to the WARN Act or COBRA benefits for
      any terminations occurring prior to the Closing Date (unless provided
      otherwise by law or pursuant to applicable regulations) nor shall the
      Company or the Parent be liable under the WARN Act, COBRA, or state
      unemployment claims law for any Transferred Employee terminated by Buyer
      after the Closing.

            (c) At Closing, the Buyer shall establish and make available a group
      medical plan for the Transferred Employees and their dependents that is
      substantially similar to the group medical plan available to the
      Transferred Employees immediately prior to Closing. The Buyer shall credit
      the Transferred Employees with all service of the Transferred Employees
      recognized under the employee benefit plans, policies, programs, or
      arrangements maintained by the Parent or the Company (the "PARENT PLANS")
      as service with the Buyer for purposes of eligibility to participate,
      vesting and levels of benefits available, under all Buyer Plans. The Buyer
      shall waive any coverage waiting period, pre-existing condition and
      actively-at-work requirements under the Buyer Plans for the Transferred
      Employees, unless such conditions or requirements applied to Transferred
      Employees prior to the Closing, and shall provide that any expenses
      incurred before the Closing Date by a Transferred Employee (and his or her
      dependents) during the calendar year of the Closing shall be taken into
      account for purposes of satisfying the applicable deductible, coinsurance
      and maximum out-of-pocket provisions, and applicable annual and/or
      lifetime maximum benefit limitations of the Buyer Plans. The Buyer Plans
      shall not require contributions by Transferred Employees at a rate that
      exceeds the rate in effect for other similarly situated employees of the
      Buyer. Any reports or other information provided to Buyer by the Company
      or the Parent in connection with Buyer performing his obligations under
      this Section 7.1(c) shall be at the sole expense of the Buyer.

                                       12
<PAGE>

      7.2 Benefits. Except as provided in Section 7.1(b), the Buyer shall be
responsible for the payment of all amounts of wages, bonuses and other
remuneration (including discretionary benefits and bonuses) payable to the
Transferred Employees of the Company accrued with respect to periods on or prior
to the Closing (except for any employment taxes - including, without limitation,
income taxes withheld on employee wages - actually withheld by the Company)
together with amounts payable to such employees in connection with events
occurring on or prior to the Closing. In addition, the Buyer shall be
responsible for:

            (a) all vacation pay and pay for other compensated absences earned
      or accrued by the Transferred Employees as of the close of business on the
      Closing Date to the appropriate employee, including any related payroll
      burden (FICA and other pension or other employee benefit plan
      contributions and employment taxes) with respect thereto to the
      appropriate Governmental Entity or other person, to the extent such pay
      has been accrued on the books of the Company at such close of business,
      based upon the remuneration of such employees normally used in computing
      such pay for other compensated absences; and

            (b) amounts accrued under the Integrated Electrical Services, Inc.
      401(k) Retirement Savings Plan (the "PARENT 401(K) PLAN") for the
      Transferred Employees as of the Closing Date but not yet transferred to
      the trustee of the Parent 401(k) Plan, including without limitation, the
      accrued match, accrued payroll deductions representing elective deferrals,
      loan repayments and accrued profit sharing contribution, if any.

      7.3 Parent 401(k) Plan. The Company, the Parent and the Buyer agree that,
as soon as practicable after Closing, but in any event within 90 days of the
Closing Date, the account balances in the Parent 401(k) Plan of the Transferred
Employees shall be transferred to a qualified 401(k) retirement savings plan
established by the Buyer (the "BUYER'S 401(K) PLAN") in accordance with Section
414(l) of the Internal Revenue Code of 1986, as amended (the "CODE"), and the
regulations promulgated thereunder. In connection with such transfer, the
following provisions shall apply:

            (a) The account balances of the Transferred Employees transferred to
      the Buyer's 401(k) Plan shall be subject to the provisions of the Buyer's
      401(k) Plan effective as of the date of transfer; provided, however that
      the Buyer's 401(k) Plan shall continue any benefits under the Parent
      401(k) Plan as required under Section 411(d)(6) of the Code; and

            (b) The outstanding loan of any Transferred Employee shall not be in
      default as a result of the Transferred Employee's termination of
      employment with the Parent or the Company, but such loan shall be
      transferred to the Buyer's 401(k) Plan in accordance with (a) above.

The Buyer shall provide acceptable evidence to the Parent that the Buyer's
401(k) Plan meets the requirements of Section 401(a) of the Code prior to the
date of such transfer. The Buyer, the Parent and the Company agree to take
whatever action, including but not limited to plan amendments and resolutions,
to effectuate the transfer of the Transferred Employee's account balances
according to this section from the Parent 401(k) Plan to the Buyer's 401(k)
Plan.

                                       13
<PAGE>

Notwithstanding the foregoing, nothing in this Section 7 shall be deemed or
construed to give rise to any rights, claims, benefits, or causes of action to
any Transferred Employee or third party whatsoever (including any Governmental
Entity).

      7.4 Noncompetition and Other Employment Agreements. All non-competition
and other employment agreements now existing between Guarantor and the Parent
shall be terminated at the Closing and each party thereto shall release the
other party from any liability associated therewith.

8.    MISCELLANEOUS.

      8.1 Notices. All notices and communications required or permitted
hereunder shall be in writing and may be given by (a) depositing the same in the
United States mail, addressed to the party to be notified, postage prepaid and
registered or certified with return receipt requested, (b) by delivering the
same in person to an officer or agent of such party, or (c) overnight delivery
service. Such notice shall be deemed received on the date (i) on which it is
actually received if sent by overnight delivery service or hand delivery, or
(ii) on the third business day following the date on which it is mailed. For
purposes of notice, the addresses of the parties hereto shall be:

            If to the Parent or the Company:

                  Integrated Electrical Services, Inc.
                  1800 West Loop South, Suite 500
                  Houston, Texas 77027
                  Attention:  Chief Financial Officer

            With a copy to:

                  Integrated Electrical Services, Inc.
                  1800 West Loop South, Suite 500
                  Houston, Texas 77027
                  Attention:  Chief Legal Officer

            If to the Buyer or Guarantor:

                  Howard Brothers Electric of Charlotte, LLC
                  6009 Kenley Lane
                  Charlotte, NC  28217
                  Attention:  David J. Latour

            With a copy to:

                  J. Darrell Shealy
                  Johnston, Allison & Hord, P.A.
                  610 E. Morehead Street
                  Charlotte, NC  28202

or such other address as any party hereto shall specify pursuant to this Section
8.1 from time to time.

                                       14
<PAGE>

      8.2 Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be deemed an original, and all of which
together shall constitute one and the same instrument.

      8.3 Governing Law. The validity and effect of this Agreement shall be
governed by and construed and enforced in accordance with the laws of the State
of Texas, without regard to its conflicts of laws rules.

      8.4 Successors and Assigns. This Agreement shall be binding upon and shall
inure to the benefit of the parties hereto and their respective permitted heirs,
successors and assigns. Neither the Company, the Parent nor the Buyer may
assign, delegate or otherwise transfer any of their rights or obligations under
this Agreement without the written consent by each other party hereto.

      8.5 Partial Invalidity and Severability. All rights and restrictions
contained herein may be exercised and shall be applicable and binding only to
the extent that they do not violate any applicable laws and are intended to be
limited to the extent necessary to render this Agreement legal, valid and
enforceable. If any term of this Agreement, or part thereof, not essential to
the commercial purpose of this Agreement shall be held to be illegal, invalid or
unenforceable by a forum of competent jurisdiction, it is the intention of the
parties that the remaining terms hereof, or part thereof, shall constitute their
agreement with respect to the subject matter hereof, and all such remaining
terms, or parts thereof, shall remain in full force and effect. To the extent
legally permissible, any illegal, invalid or unenforceable provision of this
Agreement shall be replaced by a valid provision which will implement the
commercial purpose of the illegal, invalid or unenforceable provision.

      8.6 Waiver. Any term or condition of this Agreement may be waived at any
time by the party which is entitled to the benefit thereof, but only if such
waiver is evidenced by a writing signed by such party. No failure on the part of
any party hereto to exercise, and no delay in exercising, any right, power or
remedy created hereunder shall operate as a waiver thereof, nor shall any single
or partial exercise of any right, power or remedy by either party preclude any
other or further exercise thereof or the exercise of any other right, power or
remedy. No waiver by either party hereto of any breach of or default in any term
or condition of this Agreement shall constitute a waiver of or assent to any
succeeding breach of or default in the same or any other term or condition
hereof.

      8.7 Headings. The headings of particular provisions of this Agreement are
inserted for convenience only and shall not be construed as a part of this
Agreement or serve as a limitation or expansion on the scope of any term or
provision of this Agreement.

      8.8 Entire Agreement; Amendments. This Agreement supersedes all prior
discussions and agreements between the parties with respect to the subject
matter hereof (including without limitation any letters of intent executed by
the parties), and this Agreement contains the sole and entire agreement between
the parties with respect to the matters covered hereby. This Agreement shall not
be altered or amended except by an instrument in writing signed by or on behalf
of the party against whom enforcement is sought.

                                       15
<PAGE>

      8.9 Disclosure of Agreement Terms. Neither Buyer nor the Guarantor shall
disclose the terms and conditions of this Agreement to any person or entity
without the prior written consent of an executive officer of the Parent or as
required by applicable law or an order from a court or administrative body of
competent jurisdiction (but only to the extent so required and only after giving
reasonable prior notice to the Company and the Parent and cooperating with the
Company and the Parent in any efforts to legally oppose such disclosure). The
foregoing notwithstanding, the Buyer and the Guarantor shall be permitted to
make such disclosures to their accountants, lawyers, financial institutions,
lending sources, senior employees and related parties as may be appropriate,
provided that such parties are bound by the foregoing nondisclosure provisions.

      8.10 Number and Gender. Where the context requires, the use of the
singular form herein shall include the plural, the use of the plural shall
include the singular, and the use of any gender shall include any and all
genders.

                  [Remainder of page intentionally left blank]

                                       16
<PAGE>

      IN WITNESS WHEREOF, this Agreement has been executed effective as of the
date set forth above.

                                      PARENT:

                                      INTEGRATED ELECTRICAL SERVICES, INC.

                                      By:          /s/ Herbert R. Allen
                                         --------------------------------------
                                               Herbert R. Allen
                                               Chief Executive Officer

                                      COMPANY:

                                      HOWARD BROTHERS ELECTRIC CO., INC.

                                      By:          /s/ Curt L. Warnock
                                         --------------------------------------
                                               Curt L. Warnock
                                               Vice President

                                      BUYER:

                                      HOWARD BROTHERS ELECTRIC OF CHARLOTTE, LLC

                                      By:          /s/ David J. Latour
                                         --------------------------------------
                                               David J. Latour, Manager

                                      GUARANTOR:

                                                   /s/ David J. Latour
                                         --------------------------------------
                                               David J. Latour, Manager

<PAGE>

                                    EXHIBIT A

                BILL OF SALE, ASSIGNMENT AND ASSUMPTION AGREEMENT

      This BILL OF SALE, ASSIGNMENT AND ASSUMPTION AGREEMENT ("BILL OF SALE") is
entered into as of the ___ day of February 2005, by and among INTEGRATED
ELECTRICAL SERVICES, INC., a Delaware corporation (the "PARENT"), HOWARD
BROTHERS ELECTRIC CO., INC., a Delaware corporation (the "COMPANY") and HOWARD
BROTHERS ELECTRIC OF CHARLOTTE, LLC, a limited liability company organized in
the State of North Carolina (the "BUYER").

                                    RECITALS

      WHEREAS, pursuant to the terms of that certain Asset Purchase Agreement
(the "PURCHASE AGREEMENT") dated as of even date herewith by and among the
Buyer, the Parent, the Company, and David J. Latour, individual, the Company and
the Parent agreed to convey the Assets to the Buyer and the Buyer agreed to
assume the Assumed Liabilities. In order to evidence such conveyance and
assumption, the parties desire to enter into this Bill of Sale.

      WHEREAS, all capitalized terms used herein but not defined herein shall
have the meanings ascribed to them in the Purchase Agreement.

                                   ASSIGNMENT

      NOW, THEREFORE, for and in consideration of the mutual covenants,
agreements, and benefits contained herein, the sum of TEN DOLLARS ($10.00) and
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the Company and the Parent do hereby BARGAIN, GRANT, SELL,
CONVEY, TRANSFER, DELIVER and ASSIGN unto Buyer all the Assets.

      The Assets are hereby conveyed free and clear of all encumbrances other
than the Permitted Encumbrances.

      TO HAVE AND TO HOLD the Assets unto the Buyer and its successors and
assigns forever; and the Company and the Parent do hereby bind themselves and
their successors and assigns to WARRANT AND FOREVER DEFEND title to the Assets
in accordance with the terms and provisions of the Purchase Agreement.

      The Buyer, upon execution below, accepts this Bill of Sale, and to the
extent provided for in the Purchase Agreement, hereby assumes the Assumed
Liabilities, but no others.

      This assignment shall be binding upon and shall inure to the benefit of
the parties hereto and their respective permitted successors and assigns.

<PAGE>

      This Bill of Sale may be executed in any number of counterparts, and each
counterpart shall for all purposes be deemed to be an original.

      This Bill of Sale is subject to all terms and conditions contained in the
Purchase Agreement and nothing herein shall be deemed to alter, amend, or
supersede the Purchase Agreement, the terms of which shall in all respects be
controlling.

                  [Remainder of page intentionally left blank]

<PAGE>

      IN WITNESS WHEREOF, the parties hereto have executed this Bill of Sale
effective as of the date set forth above.

                                      PARENT:

                                      INTEGRATED ELECTRICAL SERVICES, INC.

                                      By:_______________________________________
                                      Name:_____________________________________
                                      Title:____________________________________

                                      COMPANY:

                                      HOWARD BROTHERS ELECTRIC CO.,
                                      INC.

                                      By:_______________________________________
                                      Name:_____________________________________
                                      Title:____________________________________

                                      BUYER:

                                      HOWARD BROTHERS ELECTRIC OF CHARLOTTE, LLC

                                      By:_______________________________________
                                      Name:_____________________________________
                                      Title:____________________________________

<PAGE>

                                    EXHIBIT B

                     FORM OF GENERAL AGREEMENT OF INDEMNITY

                                 (see attached)

<PAGE>

                       CHUBB GROUP OF INSURANCE COMPANIES
[CHUBB LOGO]
             15 Mountain View Road, P.O. Box 1615, Warren, New Jersey 07061-1615
--------------------------------------------------------------------------------

                         GENERAL AGREEMENT OF INDEMNITY

      WHEREAS, the undersigned (hereinafter individually and collectively called
"Indemnitor") desires FEDERAL INSURANCE COMPANY or any of its subsidiary or
affiliated insurers (hereinafter called "Company") to execute bonds including
undertakings and other like obligations (hereinafter referred to as bond or
bonds) on its behalf and also desires the execution of bonds on behalf of
individuals, partnerships, corporations, limited liability companies or any
other similarly unincorporated associations of members (hereinafter called
"Affiliates").

      WHEREAS, from time to time the Indemnitor may be a participant in joint
ventures with others, and bonds will be required on behalf of the Indemnitor
along with the other participants in such joint ventures.

      WHEREAS, Indemnitor is the successor-in-interest to HOWARD BROTHERS
ELECTRIC CO., INC., A DELAWARE CORPORATION (along with any other affiliate or
related entity whose assets have been or will be assigned to Indemnitor
hereinafter individually and collectively called "Seller") as the assignee of
all bonded contract obligations, which Indemnitor has expressly assumed without
reservation

      NOW, THEREFORE, in consideration of the Company executing said bond or
bonds, and the undersigned Indemnitor hereby requests the execution thereof, and
in consideration of the consent of Company to the assignment and assumption of
the bonded obligations formerly undertaken by the Seller, as well as the sum of
One Dollar paid to the Indemnitor by said Company, the receipt whereof is hereby
acknowledged, the Indemnitor, being benefited by the execution and delivery of
said bond or bonds, including, without limitation all Bonds previously issued
prior to the date of this Agreement for the Seller, the bonded obligations of
which have been expressly assumed without reservation by Indemnitor(s) and as to
which Indemnitor(s) have agreed, and do hereby agree, to assume full
responsibility for work in place as well as the prompt and proper performance
and completion of all such bonded obligations, including, without limitation
those bonded obligations listed on Exhibit A attached hereto, hereby agrees that
it will at all times jointly and severally indemnify and save harmless said
Company from and against any and all loss, cost, damage or expense, including
court costs and attorneys' fees, which it shall at any time incur by reason of
its execution and/or delivery of said bond or bonds or its payment of any claim
or liability thereunder and will place the said Company in funds to meet all its
liability under said bond or bonds promptly on request and before it may be
required to make any payment thereunder and that the voucher or other evidence
of payment by said Company of any such loss, cost, damage, expense, claim, or
liability shall be prima facie evidence of the fact and amount of the
Indemnitor's liability to said Company under this Agreement.

<PAGE>

      IT IS UNDERSTOOD AND AGREED that with respect to any bonds on behalf of
the Indemnitor participating in a joint venture that if specific application is
filed with the Company for such bonds the liability of the Indemnitor to the
Company with respect to such joint venture bonds shall be limited to the amount
expressly set forth in said application.

      IT IS UNDERSTOOD AND AGREED that all of the terms, provisions, and
conditions of this Agreement shall be extended to and for the benefit not only
of the Company either as a direct writing company or as a co-surety or reinsurer
but also for the benefit of any surety or insurance company or companies with
which the Company may participate as a co-surety or reinsurer and also for the
benefit of any other company which may execute any bond or bonds at the request
of the Company on behalf of the Indemnitor.

      IT IS UNDERSTOOD AND AGREED that this Agreement is in addition to all
other rights and agreements which Company may have or be a party to in
connection with Bonds previously issued for the benefit of Seller and that the
assumption of responsibility therefor by Indemnitors as herein provided shall
not constitute a waiver or release by Company of any rights Company may have to
seek and recover indemnity from third parties having liability in connection
with the issuance of such Bonds including, but not limited to, the obligations
and liabilities of Integrated Electrical Services, Inc., Delco Electric, Inc. or
their affiliates.

      IT IS UNDERSTOOD AND AGREED that, notwithstanding anything herein to the
contrary, Indemnitor's agreements, covenants, and all obligations under this
General Agreement of Indemnity is limited to (1) the obligations assumed by
Indemnitor (the "Assumed Obligations") under the Asset Purchase Agreement
("APA") by and among Integrated Electrical Services, Inc. ("IES"), Howard
Brothers Electric Co., Inc., Howard Brothers Electric of Charlotte, LLC, and
David Latour and (2) Company's obligations under the bonds listed on Exhibit A
attached hereto. Furthermore, Indemnitor has acknowledged and agreed that
Indemnitor's obligation to perform or otherwise discharge the Assumed
Obligations is secured by certain assets acquired by Indemnitor under the APA
(the "Collateral"), said Collateral acquired subject to that certain
Underwriting, Continuing Indemnity, and Security Agreement dated as of January
14, 2005, executed by and among Company, IES, and certain IES affiliates,
including Howard Brothers Electric Co., Inc.

      IT IS FURTHER UNDERSTOOD AND AGREED that the Indemnitor, its heirs,
successors and assigns are jointly and severally bound by the foregoing
conditions of this Agreement.

<PAGE>

      IN WITNESS WHEREOF the Indemnitor has signed this instrument this, the
_____________ day of __________, 2005.

WITNESS:                              HOWARD BROTHERS ELECTRIC OF CHARLOTTE, LLC

____________________________          By:_______________________________________

                                      Its:______________________________________

WITNESS:                              DAVID LATOUR

____________________________          __________________________________________

<PAGE>

                   ACKNOWLEDGMENT OF LIMITED LIABILITY COMPANY

STATE OF _____________________
COUNTY OF ___________________

      On this ________ day of ______________________, 2005, before me personally
came ________________________ to me known, who, being by me duly sworn, did
depose and say that he/she resides in the State of _______________; and that
he/she is the __________________ of HOWARD BROTHERS ELECTRIC OF CHARLOTTE, LLC,
the limited liability company described in and which executed the foregoing
instrument; that he/she executed the foregoing instrument by order and authority
of the partners (limited and general) and/or members of said HOWARD BROTHERS
ELECTRIC OF CHARLOTTE, LLC; and that he/she signed his/her name thereto by like
order and authority.

(SEAL)                                 _______________________________________
                                       NOTARY PUBLIC

My commission expires:

_________________________________

                            INDIVIDUAL ACKNOWLEDGMENT

STATE OF _____________________
COUNTY OF ___________________

      On this ________ day of ______________________, 2005, before me personally
came DAVID LATOUR, to me known, who, being by me duly sworn, did depose and say
that he resides in the State of North Carolina, and that he executed the
foregoing instrument for the purposes therein contained.

(SEAL)                                 _______________________________________
                                       NOTARY PUBLIC

My commission expires:

_________________________________

<PAGE>

                                    EXHIBIT C

                           CASH RECONCILIATION EXAMPLE

                                 (see attached)

                 CASH TRUE UP - FOR ILLUSTRATION PURPOSES ONLY
                                JANUARY 13, 2005

<Table>
<Caption>
Item #    Description                          Department      Activity Location                     Notes
------------------------------------------------------------------------------------------------------------------------------------
<S>      <C>                                  <C>             <C>                   <C>             <C>
          INTERCOMPANY BALANCE 9/30/2004                                             7,219,329.56
          INTERCOMPANY BALANCE 1/4/2005                                              7,107,772.46
          INTERCOMPANY CHANGE FROM 9/30/04
           TO 1/4/05                                                                  (111,557.10)   Beginning point for cash
                                                                                                     true up. Owed (To)/From IES

 1        Disbursements generated at this
          Entity                               Finance         Subsidiary
          Note: Outstanding Checks (has not
          cleared as of Jan 4th)                                                           (52.00)   Checks to clear after Jan 4th.

 2        Cash Receipts (has not cleared bank
          as of Jan 4th)                       Finance         Home Office                     --    On cash sheet

 3        Banking Fees                         Finance         Home Office                     --    None for this Entity

 4        Workers Compensation Insurance       Finance         Home Office              (1,520.14)   Dec 1-Dec 6 estimate. Based on
                                                                                                     Nov template

 5        General Liability Insurance          Finance         Home Office                (221.50)   Dec 1-Dec 6 estimate. Based on
                                                                                                     Nov template

 6        Umbrella Insurance                   Finance         Home Office                 (88.54)   Dec 1-Dec 6 estimate. Based on
                                                                                                     Nov template

 7        Property                             Finance         Home Office                (111.49)   Dec 1-Dec 6 estimate. Based on
                                                                                                     Nov template

 8        Health Insurance Premiums              HR            Home Office               9,804.25    Prorated amount for Dec 7-
                                                                                                     Dec 31 being credited back to
                                                                                                     IES in Feb 05 by Blue Cross.
                                                                                                     IES had charged on Cash Sheet
                                                                                                     full amount for Dec Health
                                                                                                     Insurance to this Entity.

 9        Dental Insurance Premiums              HR            Home Office                     --    None for this Entity

10        401K Contributions                     HR            Home Office &                   --    On Cash Sheet
                                                               Subsidiary

11        Employee Stock Purchase Plan           HR            Home Office                (297.61)   Correct ESPP balance for 2004
                                                                                                     for period 1 (as per Cheryl
                                                                                                     Beck's reconciliation)

12        Executive Savings Plan                 HR            Home Office                     --    On Cash Sheet

13        Executive Savings Plan-
          Withdrawals                            HR            Home Office                     --    None for this Entity

14        Flex Acct Fees                         HR            Home Office                     --    None for this Entity

15        MCI Frame                              IT            Home Office                (468.93)   MCI Frame bill for period
                                                                                                     Nov 15-Dec 6th not yet paid by
                                                                                                     IES. Billing cycle from
                                                                                                     15th-14th

16        Bond Premiums                        Operations      Home Office                     --    None for this Entity

17        Mind Wireless                        Purchasing      Home Office                     --    None for this entity

18        Nextel Charges                       Purchasing      Home Office              (1,155.76)   Nextel Bill for period Nov 5-
                                                                                                     Dec 4th not yet paid by IES.

19        Vehicle Insurance Premiums           Purchasing      Home Office                (610.21)   Dec 1-Dec 6 estimate. Based on
                                                                                                     Nov template

20        Insurance Deductible                 Purchasing      Home Office                     --    Could not gather data as of
                                                                                                     1/4/2005

21        PHH Lease Payment                    Purchasing      Home Office               7,987.30    On Cash Sheet (Trans #439598).
                                                                                                     Paid on Dec 1 for the month of
                                                                                                     Dec. DL Peterson will be
                                                                                                     crediting IES the full amount
                                                                                                     on the Jan invoice.

22        Corvel WC                             Safety         Home Office              (2,500.00)   Auto liability claim in
                                                                                                     process. 2,500 is this
                                                                                                     Entity's deductible. Claim
                                                                                                     # 2A934962 Claimant:
                                                                                                     Barbara Jones

                                                                                     ------------
       TOTAL OWED (TO)/FROM IES                                                       (100,791.74)
</Table>exv4w1

 

Exhibit 4.1

FIRST SUPPLEMENTAL INDENTURE

This FIRST SUPPLEMENTAL INDENTURE (this “Supplemental Indenture”), dated as of February 2, 2005, is
by and among Stewart Enterprises, Inc., a Louisiana corporation (the “Company”), each of the
parties identified under the caption “Guarantors” on the signature pages hereto (the “Guarantors”),
and U.S. Bank National Association, a national banking association and successor to Firstar Bank,
N.A., as trustee (the “Trustee”), supplementing that certain Indenture, dated as of June 29, 2001
(the “Indenture”), pursuant to which the Company issued $300,000,000 aggregate principal amount of
its 103/4% Senior Subordinated Notes due 2008 (the “Notes”). All capitalized terms used in this
Supplemental Indenture that are defined in the Indenture, either directly or by reference therein,
have the respective meanings assigned to them therein, except to the extent such terms are
otherwise defined in this Supplemental Indenture or the context clearly requires otherwise.

RECITALS

WHEREAS, Section 9.02 of the Indenture provides that the Company, the Guarantors and the Trustee
may amend or supplement certain provisions of the Indenture with the consent of the Holders of at
least a majority in principal amount of the Notes then outstanding;
WHEREAS, the Company has offered to purchase for cash, on the terms and subject to the conditions
set forth in the Offer to Purchase and Consent Solicitation Statement dated January 20, 2005 and
the related Consent and Letter of Transmittal, any and all of the outstanding Notes (as amended,
supplemented, or modified, the “Offer”);
WHEREAS, in connection with the Offer, the Company has solicited consents from the Holders to amend
certain provisions of the Indenture as set forth in this Supplemental Indenture;

WHEREAS, the Holders of a majority in principal amount of the Notes outstanding have consented to
the amendments to the Indenture set forth in this Supplemental Indenture pursuant to the terms and
conditions of the Offer;

     WHEREAS, the Company desires and has requested the Guarantors and the Trustee to join with the
Company in the execution and delivery of this Supplemental Indenture for the purpose of amending
the Indenture to effect the amendments set forth herein;

     WHEREAS, this Supplemental Indenture has been duly authorized by all necessary corporate
action on the part of the Company and the Guarantors; and

     WHEREAS, the Company has furnished, or caused to be furnished, to the Trustee, and the Trustee
has received, an Officers’ Certificate and an Opinion of Counsel stating, among other things, that
this Supplemental Indenture is authorized or permitted by the Indenture;

     NOW, THEREFORE, in consideration of the foregoing premises and for other good and valuable
consideration, the receipt of which is hereby acknowledged, the Company, the Guarantors and the
Trustee mutually covenant and agree for the equal and proportionate benefit of the respective
Holders of the Notes as follows:

 

 

     1. Amendments. Subject to Section 3 below, the following provisions of the Indenture
shall be amended as follows:

     (a) Amendments to Article Four. Each of Section 4.03 (Reports), Section 4.04 (Compliance
Certificate), Section 4.05 (Taxes), Section 4.07 (Restricted Payments), Section 4.08 (Dividend and
Other Payment Restrictions Affecting Restricted Subsidiaries), Section 4.09 (Incurrence of
Indebtedness and Issuance of Preferred Stock), Section 4.11 (Transactions with Affiliates), Section
4.12 (Liens), Section 4.13 (Business Activities), Section 4.16 (Limitation on Issuances and Sales
of Equity Interests in Restricted Subsidiaries), Section 4.17 (Designation of Restricted and
Unrestricted Subsidiaries), Section 4.18 (Payments for Consent), Section 4.19 (Limitations on
Issuances of Guarantees of Indebtedness), Section 4.20 (Sale and Leaseback Transactions), Section
4.21 (Additional Subsidiary Guarantees) and Section 4.22 (Restriction on Transfer of Assets to
Non-Guarantor Subsidiaries) of the Indenture is hereby deleted in its entirety and replaced with
the phrase “[Intentionally Omitted]”. All references to such deleted sections in the Indenture are
also hereby deleted in their entirety.

     (b) Amendments to Article Five. Each of the clauses (3) and (4) of Section 5.01 (Merger
Consolidation or Sale of Assets) of the Indenture is hereby deleted in its entirety and replaced
with the phrase “[Intentionally Omitted]”. All references to such deleted section in the Indenture
are also hereby deleted in their entirety.

     (c) Amendments to Article Six. Each of the clauses (5) and (6) of Section 6.01 (Events of
Default) of the Indenture is hereby deleted in its entirety and replaced with the phrase
“[Intentionally Omitted]”. All references to such deleted clauses in the Indenture are also hereby
deleted in their entirety.

     2. Defined Terms. Any defined terms and the definitions thereof set forth in Section 1.01
(Definitions) of the Indenture or defined terms listed in Section 1.02 (Other Definitions) of the
Indenture that are no longer used as a result of the amendments effected by this Supplemental
Indenture are hereby deleted and replaced with the phrase “[Intentionally Omitted]”. The
definition of any defined term used in the Indenture, where such definition is set forth in any of
the sections or clauses that are eliminated by this Supplemental Indenture and the term it defines
is still used in the Indenture after the amendments set forth in this Supplemental Indenture become
operative pursuant to Section 3, shall be deemed to become part of, and defined in, Section 1.01
(Definitions) of the Indenture; such defined terms, if any, are to be in alphanumeric order within
Section 1.01 (Definitions) of the Indenture.

     3. Effect and Operation of Supplemental Indenture. This Supplemental Indenture shall be
effective and binding immediately upon its execution by the Company, the Guarantors and the Trustee
and thereupon this Supplemental Indenture shall form a part of the Indenture for all purposes, and
every Note heretofore or hereafter authenticated and delivered under the Indenture shall be bound
hereby, but, notwithstanding anything in the Indenture or this Supplemental Indenture to the
contrary, this Supplemental Indenture shall not be operative until the acceptance for purchase by
the Company of Notes validly tendered and not withdrawn pursuant to the Offer representing a
majority in principal amount of the Notes outstanding. If the Offer is terminated or withdrawn, or
such Notes are not accepted for payment and paid for any

 

 

reason, this Supplemental Indenture will not become operative. Except as modified amended by this
Supplemental Indenture, all provisions of the Indenture shall remain in full force and effect. In
the event of conflict between the terms and conditions contained in the Notes and those contained
in the Indenture, as modified and amended by this Supplemental Indenture, the provisions of the
Indenture, as modified and amended by this Supplemental Indenture, shall control.

     4. The Trustee.

     (a) Trustee’s Acceptance. Subject to Section 3 above, the Trustee hereby accepts this
Supplemental Indenture and agrees to perform the same under the terms and conditions set forth in
the Indenture.

     (b) Trustee Not Responsible for Recitals. The Trustee shall not be responsible in any manner
whatsoever for, or in respect of, the validity or sufficiency of this Supplemental Indenture, or
for, or in respect of, the recitals contained herein, all of which recitals are made solely by the
Company.

     (c) Certain Duties and Responsibilities of the Trustee. In entering into this Supplemental
Indenture, the Trustee shall be entitled to the benefit of every provision of the Indenture
relating to the conduct or affecting the liability of, or affording protection to, the Trustee,
whether or not elsewhere herein so provided.

     5. Severability. In the event any provision of this Supplemental Indenture shall be
invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining
provisions of this Supplemental Indenture shall not in any way be affected or impaired thereby.

     6. Conflict with Trust Indenture Act. If any provision of this Supplemental Indenture
limits, qualifies or conflicts with any provision of the Trust Indenture Act of 1939, as amended
(the “TIA”), that is required under the TIA to be a part of and govern any provision of this
Supplemental Indenture, the provision of the TIA shall control. If any provision of this
Supplemental Indenture modifies or excludes any provision of the TIA that may be so modified or
excluded, the provision of the TIA shall be deemed to apply to the Indenture as so modified or to
be excluded by this Supplemental Indenture, as the case may be.

     7. Benefits of this Supplemental Indenture. Nothing in this Supplemental Indenture or
the Notes, express or implied, shall give to any Person, other than the parties hereto and thereto
and their successors hereunder and thereunder and the Holders of the Notes, any benefit or any
legal or equitable right, remedy or claim under the Indenture, this Supplemental Indenture or the
Notes.

     8. Successors. All agreements of the Company, the Guarantors and the Trustee in this
Supplemental Indenture shall bind their respective successors.

     9. Governing Law. THE INTERNAL LAWS OF THE STATE OF NEW YORK SHALL GOVERN AND BE USED
TO CONSTRUE THIS SUPPLEMENTAL INDENTURE BUT WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF
CONFLICTS OF

 

 

LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED
THEREBY.

     10. Effect of Headings. The section headings herein are for convenience only and
shall not affect the construction hereof.

     11. Counterparts. The parties hereto may sign multiple counterparts of this
Supplemental Indenture. Each signed counterpart shall be deemed an original, but all of them
together shall represent one and the same agreement.

[Signature Pages Follow]

 

 

     IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly
executed, all as of the date first written above.

	 	 	 	 	 
	 	STEWART ENTERPRISES, INC.

 	 
	 	By:  	/s/ Thomas M. Kitchen
 	 
	 	 	Name:  	Thomas M. Kitchen 	 
	 	 	Title:  	Executive Vice President and Chief Financial Officer 	 
	 

	 	 	 	 	 
	 	TRUSTEE:

U.S. Bank National Association, as Trustee

 	 
	 	By:  	/s/ Lori-Anne Rosenberg
 	 
	 	 	Name:  	Lori-Anne Rosenberg 	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 
	 
	 	GUARANTORS:

	 
	 	 

	 	 	A.P. BOZA FUNERAL HOME, INC.

	 	 	ABBEY PLAN OF TEXAS, INC.

	 	 	ACME MAUSOLEUM CORPORATION

	 	 	ALL FAITHS MEMORIAL PARK,
INC.

	 	 	ALL SOULS MORTUARY, INC.

	 	 	AMLING SCHROEDER FUNERAL SERVICE, INC.

	 	 	ARLINGTON MEMORIAL PARK CEMETERY AND FUNERAL HOME, INC.

	 	 	ASHES TO ASHES, INC.

	 	 	ASSUMPTION MORTUARY, INC.

	 	 	BALDWIN-FAIRCHILD FUNERAL HOMES, INC.

	 	 	BARSTOW FUNERAL HOMES, INC.

	 	 	BARTLETT-BURDETTE-COX FUNERAL HOME, INC.

	 	 	BAY AREA CREMATORY, INC.

	 	 	BELEW FUNERAL HOME, INC.

	 	 	BENJAMIN FRANKLIN P. M., INC.

	 	 	BETH DAVID MEMORIAL CHAPEL, INC.

	 	 	BOUNDS FUNERAL HOME, INC.

	 	 	BRUCE OCALA FUNERAL HOME, INC.

	 	 	BUCHHEIM FAMILY, INC.

	 	 	C.J. APPLEGATE AND SONS, INC.

 

 

	 	 	 
	 	 	CALVARY MORTUARY OF LOS ANGELES, CALIFORNIA, INC.

	 	 	CASCADE CREMATORY, INC.

	 	 	CASDORPH & CURRY FUNERAL HOME, INC.

	 	 	CATALINA CHANNEL CREMATION SOCIETY

	 	 	CATAWBA MEMORIAL PARK, INC.

	 	 	CATHOLIC MORTUARY SERVICES, INC.

	 	 	CEDAR HILL CEMETERY COMPANY, INC.

	 	 	CEMETERY MANAGEMENT, INC.

	 	 	CHAPEL HILL CEMETERY, INC.

	 	 	CHAPEL OF THE ROSES, INC.

	 	 	CHAPEL OF THE VALLEY FUNERAL HOME, INC.

	 	 	CHEATHAM HILL MEMORIAL PARK, INC.

	 	 	CLINCH VALLEY MEMORIAL CEMETERY, INC.

	 	 	CORNELL & DAGGETT, INC.

	 	 	CREMATION SOCIETY NORTHWEST, INC.

	 	 	CREST LAWN MEMORIAL GARDENS, INC.

	 	 	CURRY & SON FUNERAL HOME, INC.

	 	 	D.W. NEWCOMER’S SONS, INC.

	 	 	DAVID C. GROSS FUNERAL HOME, INC.

	 	 	DeYOUNG MEMORIAL CHAPEL, INC.

	 	 	DILDAY BROTHERS HUNTINGTON VALLEY MORTUARY

	 	 	DRUID RIDGE CEMETERY COMPANY

	 	 	DUNBAR FUNERAL HOME

	 	 	DUTTON, INC.

	 	 	DWN PROPERTIES, INC.

	 	 	E.R. BUTTERWORTH & SONS

	 	 	EASTERN CEMETERY ASSOCIATES, INC.

	 	 	EASTLAWN CORPORATION

	 	 	EMERALD HILLS FUNERAL CORPORATION

	 	 	EMPRESAS STEWART — CEMENTERIOS, INC.

	 	 	EMPRESAS STEWART — FUNERARIAS, INC.

	 	 	EVANS FUNERAL HOME, INC.

	 	 	EVERGREEN STAPLES FUNERAL CHAPEL, INC.

	 	 	EVERLY FUNERAL HOMES, INCORPORATED

	 	 	EVERLY PFP, INC.

	 	 	FLORIDA HILLS MEMORIAL GARDENS, INC.

	 	 	FOREST HILLS CEMETERY, INC.

	 	 	FORT LINCOLN CEMETERY, INC.

	 	 	FORT LINCOLN FUNERAL HOME, INC.

	 	 	FUNERAL SECURITY PLANS, INC.

	 	 	GALLERY GRANITE CORPORATION

	 	 	GARDEN OF MEMORIES, INC.

	 	 	GARDINIER COLLETTI MEMORIAL HOME, INC.

	 	 	GARNER FAMILY FUNERAL HOME, INC.

 

 

	 	 	 
	 	 	GARRETT — HILLCREST, INC.

	 	 	GEORGE WASHINGTON MEMORIAL PARK, INC.

	 	 	GLEN HAVEN MEMORIAL PARK, INC.

	 	 	GOOD SHEPHERD MEMORIAL GARDENS, INC.

	 	 	GORNY & GORNY PATERSON-CLIFTON MORTUARY

	 	 	GRIFFIN-LEGGETT INSURANCE AGENCY, INC.

	 	 	GRIFFIN-LEGGETT, INC.

	 	 	GROSS FUNERAL HOME, INC.

	 	 	GUARDIAN CREMATION SOCIETY, INC.

	 	 	HAISTEN FUNERAL HOME OF HENRY COUNTY, INC.

	 	 	HAISTEN FUNERAL HOMES, INC.

	 	 	HIGGINS AND SON FUNERAL HOME, INC.

	 	 	HIGHLAND MEMORY GARDENS, INC.

	 	 	HILLCREST MEMORIAL CEMETERY, INC.

	 	 	HINES-RINALDI FUNERAL HOME, INC.

	 	 	HOLLY HILL MEMORIAL PARK, INC.

	 	 	HOLY CROSS MORTUARY OF CULVER CITY, CALIFORNIA, INC.

	 	 	HOLY CROSS MORTUARY OF POMONA, CALIFORNIA, INC.

	 	 	HOPSON MORTUARY, INC.

	 	 	HUBBELL FUNERAL HOME AND CREMATORY, INC.

	 	 	J.P. FINLEY AND SON MORTUARY, INC.

	 	 	JOHN M. TAYLOR FUNERAL HOME, INC.

	 	 	KANAWHA PLAZA PARTNERSHIP

	 	 	KENT R. PALMER, INC.

	 	 	KICLITER FUNERAL HOME, INC.

	 	 	KILGORE-GREEN FUNERAL HOME, INC.

	 	 	KIRK & NICE SUBURBAN CHAPEL, INC.

	 	 	KIRK & NICE, INC.

	 	 	KLINGEL-CARPENTER MORTUARY, INC.

	 	 	KNUTSON FUNERAL HOMES, INC.

	 	 	LAKE LAWN METAIRIE FUNERAL HOME

	 	 	LAKE LAWN PARK, INC.

	 	 	LAKEWOOD MEMORIAL PARK, INC.

	 	 	LASSILA FUNERAL CHAPELS, INC.

	 	 	LOI CHARLESTON, INC.

	 	 	LOMBARD & CO.

	 	 	LOUDON PARK CEMETERY COMPANY

	 	 	LOUDON PARK FUNERAL HOME, INC.

	 	 	LYONS FUNERAL HOME, INC.

	 	 	MADCEM OF FLORIDA, INC.

	 	 	MCLAURIN’S FUNERAL HOME, INC.

	 	 	MEMORIAL PARK CEMETERY, INC.

	 	 	MEMORIAL SUNSET PARK, INC.

 

 

	 	 	 
	 	 	MONTE VISTA BURIAL PARK, INC.

	 	 	MONTICELLO MEMORY GARDENS, INC.

	 	 	MONTLAWN MEMORIAL PARK, INC.

	 	 	MT. JULIET MEMORIAL GARDENS, INC.

	 	 	MURPHY FUNERAL SERVICE, INC.

	 	 	N.D. DAVIS & ASSOCIATES, INC.

	 	 	NATIONAL EXCHANGE TRUST, LTD.

	 	 	NATIONAL FUNERAL SERVICES, INCORPORATED

	 	 	NATIONAL HARMONY MEMORIAL PARK, INC.

	 	 	NAVE FUNERAL HOME OF LEBANON, INC.

	 	 	NEPTUNE SOCIETY OF NEVADA, INC.

	 	 	OAKLAWN PARK CEMETERY AND FUNERAL HOME, INC.

	 	 	OTTO REDANZ FUNERAL HOME, INC.

	 	 	PARKLAWN, INC.

	 	 	PARKWOOD MANAGEMENT COMPANY

	 	 	PASADENA FUNERAL HOME, INC.

	 	 	PAULEY FUNERAL HOME, INC.

	 	 	PET HAVEN, INC.

	 	 	QUEEN OF HEAVEN MORTUARY, INC.

	 	 	RENO MEMORIAL, INC.

	 	 	REST HILLS MEMORIAL PARK, INC.

	 	 	RESURRECTION MORTUARY, INC.

	 	 	RIVER CITIES FUNERAL CHAPEL, INC.

	 	 	ROBERTS FUNERAL HOME, INC.

	 	 	ROSE HAVEN FUNERAL HOME & CEMETERY, INC.

	 	 	ROYAL PALM MEMORIAL GARDENS, INC.

	 	 	RUNYAN MANGOLD, INC.

	 	 	S.E. ACQUISITION OF CALIFORNIA, INC.

	 	 	S.E. ACQUISITION OF CLIFTON,
NEW JERSEY, INC.

	 	 	S.E. ACQUISITION OF DELANO,
CALIFORNIA, INC.

	 	 	S.E. ACQUISITION OF FREDONIA,
NEW YORK, INC.

	 	 	S.E. ACQUISITION OF GLENDALE,
CALIFORNIA, INC.

	 	 	S.E. ACQUISITION OF LANCASTER,
CALIFORNIA, INC.

	 	 	S.E. ACQUISITION OF LITHONIA, GEORGIA, INC.

	 	 	S.E. ACQUISITION OF LOS OSOS
MORTUARY AND MEMORIAL PARK, INC.

	 	 	S.E. ACQUISITION OF MALDEN,
WEST VIRGINIA, INC.

	 	 	S.E. ACQUISITION OF MYRTLE
CREEK, OREGON, INC.

	 	 	S.E. ACQUISITION OF NEVADA, INC.

	 	 	S.E. ACQUISITION OF OAKHURST,
CALIFORNIA, INC.

	 	 	S.E. ACQUISITION OF OREGON, INC.

	 	 	S.E. ACQUISITION OF OROVILLE,
CALIFORNIA, INC.

	 	 	S.E. ACQUISITION OF PENNSYLVANIA, INC.

	 	 	S.E. ACQUISITION OF REEDSPORT,
OREGON, INC.

	 	 	S.E. ACQUISITION OF RENO, NEVADA, INC.

 

 

	 	 	 
	 	 	S.E. ACQUISITION OF SANTA FE,
NEW MEXICO, INC.

	 	 	S.E. ACQUISITION OF WASHINGTON, INC.

	 	 	S.E. AUSTRALIA, INC.

	 	 	S.E. BEND NR, INC.

	 	 	S.E. BEND TDHM, INC.

	 	 	S.E. CEMETERIES OF ALABAMA, INC.

	 	 	S.E. CEMETERIES OF LOUISIANA, INC.

	 	 	S.E. CEMETERIES OF NORTH CAROLINA, INC.

	 	 	S.E. CEMETERIES OF SOUTH CAROLINA, INC.

	 	 	S.E. CEMETERIES OF TEXAS, INC.

	 	 	S.E. CEMETERIES OF VIRGINIA, INC.

	 	 	S.E. CEMETERIES OF WEST VIRGINIA, INC.

	 	 	S.E. CEMETERIES OF WISCONSIN, INC.

	 	 	S.E. COMBINED SERVICES OF ALABAMA, INC.

	 	 	S.E. COMBINED SERVICES OF
SOUTH CAROLINA, INC.

	 	 	S.E. COMBINED SERVICES OF TENNESSEE, INC.

	 	 	S.E. FUNERAL HOMES OF ALABAMA, INC.

	 	 	S.E. FUNERAL HOMES OF ARKANSAS, INC.

	 	 	S.E. FUNERAL HOMES OF ILLINOIS, INC.

	 	 	S.E. FUNERAL HOMES OF LOUISIANA, INC.

	 	 	S.E. FUNERAL HOMES OF NORTH
CAROLINA, INC.

	 	 	S.E. FUNERAL HOMES OF SOUTH
CAROLINA, INC.

	 	 	S.E. FUNERAL HOMES OF TENNESSEE, INC.

	 	 	S.E. FUNERAL HOMES OF TEXAS, INC.

	 	 	S.E. FUNERAL HOMES OF VIRGINIA, INC.

	 	 	S.E. FUNERAL HOMES OF WEST VIRGINIA, INC.

	 	 	S.E. GREENWOOD, INC.

	 	 	S.E. MID-ATLANTIC, INC.

	 	 	S.E. SOUTH-CENTRAL, INC.

	 	 	SAN DIEGO CEMETERY ASSOCIATION

	 	 	SAN FERNANDO MISSION MORTUARY, INC.

	 	 	SANTA BARBARA FUNERAL SERVICES, INC.

	 	 	SANTA CLARA MORTUARY, INC.

	 	 	SCOVERN MORTUARY

	 	 	SDCA HOLDINGS, INC.

	 	 	SEMORAN FUNERAL HOME, INC.

	 	 	SENTINEL CREMATION SOCIETIES, INC.

	 	 	SIMPLE TRIBUTE OF MARYLAND, INC.

	 	 	SIMPLICITY PLAN OF CALIFORNIA, INC.

	 	 	SIMPLICITY PLAN OF TEXAS, INC.

	 	 	SOUTH DADE-PALMS MEMORIAL PARK, INC.

	 	 	STEWART ENTERPRISES (EUROPE) INC.

	 	 	STEWART PRE-NEED SERVICES, INC.

	 	 	STEWART RESOURCE CENTER, INC.

	 	 	STEWART SERVICES, INC.

	 	 	STRICKLIN/SNIVELY MORTUARY

 

 

	 	 	 
	 	 	STRONG & BURNS FUNERAL HOME, INC.

	 	 	SUNSET HILLS MEMORIAL PARK

	 	 	SUNSET MEMORIAL PARK COMPANY

	 	 	SYLVAN ABBEY MEMORIAL PARK, INC.

	 	 	THE NASHVILLE HISTORIC
CEMETERY ASSOCIATION, INC.

	 	 	THE PARKWOOD CEMETERY COMPANY

	 	 	THE SIMPLICITY PLAN, INC.

	 	 	TRINITY MEMORIAL GARDENS OF LAKELAND, INC.

	 	 	TURNER CREMATORY, INC.

	 	 	TURNER FUNERAL HOMES, INC.

	 	 	VICTOR V. DESROSIER, INC.

	 	 	WALLACE E. WHITE & HOWARD J. CALLANAN, INC.

	 	 	WALSH & WOOD FUNERAL HOME, INC.

	 	 	WILLIAM W. CHAMBERS, INC.

	 	 	WILSON FUNERAL HOME, INC.

	 	 	WOODLAWN MEMORY GARDENS, INC.

	 	 	WOODLAWN PARK CEMETERY COMPANY

	 	 	 	 	 
	 	 	 
	 	By:  	                     /s/ Loralice A. Trahan
 	 
	 	 	Name:  	Loralice A. Trahan 	 
	 	 	Title:  	Authorized Person

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