Document:

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                                                                   EXHIBIT 10.13

                           CHANGE OF CONTROL AGREEMENT

      This Change of Control Agreement ("Agreement") between Stewart
Enterprises, Inc., a Louisiana corporation (the "Company"), and Thomas M.
Kitchen (the "Employee") is effective as of December 2, 2004 (the "Change of
Control Agreement Date").

                                    ARTICLE I
                                   DEFINITIONS

      1.1   EMPLOYMENT AGREEMENT. After a Change of Control (defined below),
this Agreement supersedes the Employment Agreement effective as of December 2,
2004 between Employee and the Company (the "Employment Agreement") except to the
extent that certain provisions of the Employment Agreement are expressly
incorporated by reference herein. After a Change of Control, the definitions in
this Agreement supersede definitions in the Employment Agreement, but
capitalized terms used herein that are not defined in this Agreement have the
meanings given to them in the Employment Agreement.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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      1.5   CAUSE. "Cause" shall mean:

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

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

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

      1.6   GOOD REASON. "Good Reason" shall mean:

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

            (b)   The assignment to the Employee of any duties inconsistent in
      any material respect with Employee's position (including status, offices,
      titles and reporting requirements), authority, duties or responsibilities
      as contemplated by Section 2.1(b) of this Agreement, or any other action
      that results in a diminution in such position,

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      authority, duties or responsibilities, excluding for this purpose an
      isolated, insubstantial and inadvertent action not taken in bad faith that
      is remedied within 10 days after receipt of written notice thereof from
      the Employee to the Company;

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

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

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

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

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

                                   ARTICLE II
                            CHANGE OF CONTROL BENEFIT

      2.1   EMPLOYMENT TERM AND CAPACITY AFTER CHANGE OF CONTROL.

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

            (b)   After a Change of Control and during the Employment Term, (i)
      the Employee's position (including status, offices, titles and reporting
      requirements), authority, duties and responsibilities shall be at least
      commensurate in all material respects with the most significant of those
      held, exercised and assigned at any time during the 120-day period
      immediately preceding the Change of Control and (ii) the Employee's
      service shall be performed at the location where the Employee was employed
      immediately preceding the Change of Control or any office or location less
      than 35 miles from such location. Employee's position, authority, duties
      and responsibilities after a Change of Control shall not be considered
      commensurate in all material respects with Employee's position, authority,
      duties and responsibilities prior to a Change of Control

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      unless after the Change of Control Employee holds (x) an equivalent
      position in the Company or, (y) if the Company is controlled or will after
      the transaction be controlled by another company (directly or indirectly),
      an equivalent position in the ultimate parent company. Employee shall
      devote himself to his employment responsibilities with the Company (or, if
      applicable, the ultimate parent entity) as provided in Article I Section 3
      of the Employment Agreement.

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

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

            (b)   Bonus. An annual incentive bonus (the "Bonus") equal to the
      maximum annual amount that the Employee was eligible to receive at any
      time during the 120-day period immediately preceding the Change of
      Control. The Bonus shall be paid in cash (1) no later than thirty (30)
      days following the close of the fiscal year in which it is earned, or (2)
      if the Employee so elects, between January 1 and January 15 of the
      succeeding calendar year.

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

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

            (e)   Incentive, Savings and Retirement Plans. The Employee shall be
      entitled to participate in all incentive, savings and retirement plans,
      practices, policies and programs applicable generally to other peer
      employees of the Company and its affiliated companies, but in no event
      shall such plans, practices, policies and programs provide the

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      Employee with incentive opportunities (measured with respect to both
      regular and special incentive opportunities, to the extent, if any, that
      such distinction is applicable), savings opportunities and retirement
      benefit opportunities, in each case, less favorable than the most
      favorable of those provided by the Company and its affiliated companies
      for the Employee under any agreements, plans, practices, policies and
      programs as in effect at any time during the 120-day period immediately
      preceding the Change of Control or, if more favorable to the Employee,
      those provided generally at any time after the Change of Control to other
      peer employees of the Company and its affiliated companies.

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

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

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

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

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      2.4   OBLIGATIONS UPON TERMINATION AFTER A CHANGE OF CONTROL.

            (a)   Termination by Company for Reasons other than Death,
      Disability or Cause; by Employee for Good Reason. If, after a Change of
      Control and during the Employment Term, the Company (or, if applicable the
      ultimate parent company), terminates the Employee's employment other than
      for Cause, death or Disability, or the Employee terminates employment for
      Good Reason, the Company shall pay to the Employee in a lump sum in cash
      within 30 days after the Date of Termination (or, if required by the Jobs
      Act (as defined in Section 3.12 hereof) to be deferred, 10 days following
      the first business day that is more than six months after the Date of
      Termination) an amount equal to three times the sum of (i) the amount of
      Base Salary in effect at the Date of Termination, plus (ii) the average
      annual bonus (including in the calculation of such average any Bonus
      referred to in Section 2.2(b) hereof, if applicable) earned by the
      Employee during the three most recently completed fiscal years prior to
      the Date of Termination or, if the Employee has been employed by the
      Company for less than three years, the number of years during such period
      that the Employee was employed by the Company and eligible to receive a
      bonus.

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

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

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

            (e)   Termination by Employee for Reasons other than Good Reason.
      If, after a Change of Control and during the Employment Term, the
      Employee's status as an employee is terminated by the Employee for reasons
      other than Good Reason, then the Company shall pay to the Employee an
      amount equal to a single year's Base Salary in effect at the Date of
      Termination, payable in equal installments over a two-year period
      beginning 30 days after the Date of Termination (or, if required by the
      Jobs Act (as defined in Section 3.12 hereof) to be deferred, on the first
      regular payroll date that is at

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      least six months after the Date of Termination) and thereafter at such
      intervals as other salaried employees of the Company are paid.

            (f)   Nondisclosure, Noncompetition and Proprietary Rights. The
      rights and obligations of the Company and Employee contained in Article V
      ("Nondisclosure, Noncompetition and Proprietary Rights") of the Employment
      Agreement shall continue to apply after a Change of Control, except as
      provided in Section 2.10 of this Agreement.

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

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

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

      2.8   CERTAIN ADDITIONAL PAYMENTS. If after a Change of Control Employee
is subjected to an excise tax as a result of the "excess parachute payment"
provisions of section 4999 of the Internal Revenue Code of 1986, as amended,
whether by virtue of the benefits of this Agreement or by virtue of any other
benefits provided to Employee in connection with a Change of Control pursuant to
Company plans, policies or agreements (including the value of any options to
acquire Common Stock of the Company the exercisability of which is accelerated
pursuant to the terms of any stock option, incentive or similar plan heretofore
or hereafter adopted by the Company), the Company shall pay to Employee (whether
or not his employment has terminated) such amounts as are necessary to place
Employee in the same position after payment of federal income and excise taxes
as he would have been if such provisions had not been applicable to him.

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

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

                                   ARTICLE III
                                  MISCELLANEOUS

      3.1   BINDING EFFECT; SUCCESSORS.

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

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

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

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

      3.2   NOTICES. All notices hereunder must be in writing and shall be
deemed to have given upon receipt of delivery by: (a) hand (against a receipt
therefor), (b) certified or registered mail, postage prepaid, return receipt
requested, (c) a nationally recognized overnight courier service (against a
receipt therefor) or (d) telecopy transmission with confirmation of receipt. All
such notices must be addressed as follows:

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      If to the Company, to:

      Stewart Enterprises, Inc.
      1333 South Clearview Parkway
      Jefferson, LA 70121
      Attn: Chief Executive Officer

      If to the Employee, to:

      Thomas M. Kitchen
      6627 Canal Boulevard
      New Orleans, Louisiana 70124

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

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

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

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

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

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

      3.8   REMEDIES NOT EXCLUSIVE. No remedy specified herein shall be deemed
to be such party's exclusive remedy, and accordingly, in addition to all of the
rights and remedies

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provided for in this Agreement, the parties shall have all other rights and
remedies provided to them by applicable law, rule or regulation.

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

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

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

      3.12  AMERICAN JOBS CREATION ACT OF 2004. In the event that any of the
compensation or benefits payable to the Employee hereunder are considered to be
non-qualified deferred compensation subject to the American Jobs Creation Act of
2004 (the "Jobs Act") and any regulations issued or to be issued by the
Department of the Treasury thereunder, the Company and the Employee shall
negotiate in good faith and agree to such amendments to this Agreement as they
and their respective tax counsel deem necessary to avoid the imposition of
additional taxes and penalties under the Jobs Act or such regulations, while
preserving the economic benefits intended to be conferred on the Employee by
this Agreement.

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

                                    STEWART ENTERPRISES, INC.

Dated: January 7, 2005              By: /s/JAMES W. MCFARLAND
                                        ----------------------------------------
                                                  James W. McFarland
                                            Compensation Committee Chairman

                                    EMPLOYEE:

Dated: ___________, 200__
                                    ____________________________________________
                                                Thomas M. Kitchen

                                      -11-<PAGE>

                                                                   EXHIBIT 10.14

                              EMPLOYMENT AGREEMENT

      This Employment Agreement ("Agreement") between Stewart Enterprises, Inc.,
a Louisiana corporation (the "Company"), and Lawrence B. Hawkins (the
"Employee") is effective as of November 1, 2004 (the "Agreement Date").

                                   WITNESSETH:

      WHEREAS, Employee currently is employed by the Company;

      WHEREAS, the Company desires to retain the services of Employee pursuant
to the terms of this Agreement, subject to Employee's acceptance of the
conditions stated herein;

      WHEREAS, Employee wishes to be employed by the Company in consideration of
the compensation and benefits set forth herein and pursuant to the terms hereof;

      WHEREAS, during the course of his employment with the Company, Employee
has or will have received extensive and unique knowledge, training and education
in, and access to resources involving, the Death Care Business (as defined
below) at a substantial cost to the Company, which Employee acknowledges has
enhanced or substantially will enhance Employee's skills and knowledge in such
business;

      WHEREAS, during the course of his employment with the Company, Employee
has or will have received access to and information about the Company's
customers, suppliers, joint venture partners and others having important
commercial relationships with the Company, the preservation of which the
Employee acknowledges are vital to the continuing commercial success of the
Company;

      WHEREAS, during the course of his employment with the Company, Employee
has had and will continue to have access to valuable oral and written
information, knowledge and data relating to the business and operations of the
Company and its subsidiaries that is non-public, confidential or proprietary in
nature and is particularly useful in the Death Care Business; and

      WHEREAS, in view of the training provided by the Company to Employee, its
cost to the Company, the importance of maintaining continuing favorable
relationships with customers, suppliers, partners and others, and the need for
the Company to be protected against disclosures by Employee of the Company's and
its subsidiaries' trade secrets and other non-public, confidential or
proprietary information, the Company and Employee desire, among other things, to
prohibit Employee from disclosing or utilizing, outside the scope and term of
his employment with the Company, any non-public, confidential or proprietary
information, knowledge and data relating to the business and operations of the
Company or its subsidiaries received by Employee during the course of his
employment, and to restrict the ability of Employee to compete with the Company
or its subsidiaries for a limited period of time;

<PAGE>

      NOW, THEREFORE, for and in consideration of the continued employment of
Employee by the Company and the payment of salary, benefits and other
compensation to Employee by the Company, the parties hereto agree as follows:

                                    ARTICLE I
                          EMPLOYMENT CAPACITY AND TERM

      1.    CAPACITY AND DUTIES OF EMPLOYEE. The Employee is employed by the
Company to render services on behalf of the Company in the capacity set forth in
Appendix A hereto, as such Appendix may be amended or supplemented from time to
time (as so amended or supplemented, "Appendix A"). The Employee shall perform
such duties, consistent with the Employee's job title, as are assigned to the
title or titles held by the Employee as set forth from time to time in the
Company's Bylaws and such other duties as may be prescribed from time to time by
the Company's Board of Directors (the "Board") or the executive of the Company
to whom the Employee directly reports.

      2.    EMPLOYMENT TERM. The term of this Agreement (the "Employment Term")
shall commence on the Agreement Date and shall continue through October 31,
2006, subject to any earlier termination of Employee's status as an employee
pursuant to this Agreement.

      3.    DEVOTION TO RESPONSIBILITIES. During the Employment Term, the
Employee shall devote all of his business time to the business of the Company,
shall use his best efforts to perform faithfully and efficiently his duties
under this Agreement, and shall not engage in or be employed by any other
business; provided, however, that nothing herein shall prohibit the Employee
from (a) serving as a member of the board of directors, board of trustees or the
like of any for-profit or non-profit entity that does not compete with the
Company, or performing services of any type for any civic or community entity,
whether or not the Employee receives compensation therefor, (b) investing his
assets in such form or manner as shall require no more than nominal services on
the part of the Employee in the operation of the business of the entity in which
such investment is made, or (c) serving in various capacities with, and
attending meetings of, industry or trade groups and associations, as long as the
Employee's activities permitted by clauses (a), (b) and (c) above do not
materially and unreasonably interfere with the ability of the Employee to
perform the services and discharge the responsibilities required of him under
this Agreement. Notwithstanding clause (b) above, during the Employment Term,
the Employee may not beneficially own more than 2% of the equity interests of a
business organization required to file periodic reports with the Securities and
Exchange Commission under the Securities Exchange Act of 1934 (the "Exchange
Act") and may not beneficially own more than 2% of the equity interests of a
business organization that competes with the Company. For purposes of this
paragraph, "beneficially own" has the meaning ascribed to that term in Rule
13d-3 under the Securities Exchange Act of 1934, as amended from time to time
(the "Exchange Act").

                                       -2-
<PAGE>

                                   ARTICLE II
                            COMPENSATION AND BENEFITS

      During the Employment Term, the Company shall provide the Employee with
the compensation and benefits described below:

      1.    SALARY AND BONUS. (a) The Company shall pay the Employee a salary
("Base Salary") at an annual rate per fiscal year of the Company ("Fiscal Year")
as set forth in Appendix A, which shall be payable to the Employee at such
intervals as other salaried employees of the Company are paid.

            (b)   The Employee shall be eligible to receive an annual incentive
bonus (the "Bonus"), up to the maximum amount set forth in Appendix A. The Bonus
will be awarded based upon factors to be established or approved annually by the
Compensation Committee in its discretion and set forth in Appendix A or a
supplement thereto. Any Bonus awarded shall be paid in cash not later than 30
days following the filing of the Company's annual report on Form 10-K for the
Fiscal Year in which the Bonus has been earned.

            (c)   Any change in the Employee's title, Base Salary or Bonus
eligibility during the Employment Term shall be set forth in one or more
supplements to Appendix A to this Agreement, each of which shall be signed by
the Employee and a member of the Compensation Committee of the Board of
Directors of the Company.

      2.    BENEFITS. The Employee shall be eligible to participate in all
benefit programs provided to other employees of the Company, including without
limitation a fully-paid insurance benefit package similar to that provided other
employees of the Company.

      3.    EXPENSES. The Employee shall be reimbursed for reasonable
out-of-pocket expenses incurred from time to time on behalf of the Company or
any subsidiary in the performance of his duties under this Agreement, upon the
presentation of such supporting invoices, documents and forms as the Company
reasonably requests.

                                   ARTICLE III
                            TERMINATION OF EMPLOYMENT

      1.    DEATH. The Employee's status as an employee shall terminate
immediately and automatically upon the Employee's death during the Employment
Term.

      2.    DISABILITY. The Employee's status as an employee may be terminated
for "Disability" as follows:

            (a)   The Employee's status as an employee shall terminate if the
Employee has a disability that would entitle him to receive benefits under the
Company's long-term disability insurance policy in effect at the time either
because he is Totally Disabled or Partially Disabled, as such terms are defined
in such policy. Any such termination shall become effective on the

                                       -3-
<PAGE>

first day on which the Employee is eligible to receive payments under such
policy (or on the first day that he would be so eligible, if he had applied
timely for such payments).

            (b)   If the Company has no long-term disability plan in effect, if
(i) the Employee is rendered incapable because of physical or mental illness of
satisfactorily discharging his duties and responsibilities under this Agreement
for a period of 90 consecutive days and (ii) a duly qualified physician chosen
by the Company and reasonably acceptable to the Employee or his legal
representatives so certifies in writing, the Board shall have the power to
determine that the Employee has become disabled. If the Board makes such a
determination, the Company shall have the continuing right and option, during
the period that such disability continues, and by notice given in the manner
provided in this Agreement, to terminate the status of Employee as an employee.
Any such termination shall become effective 30 days after such notice of
termination is given, unless within such 30-day period, the Employee becomes
capable of rendering services of the character contemplated hereby (and a
physician chosen by the Company and reasonably acceptable to the Employee or his
legal representatives so certifies in writing) and the Employee in fact resumes
such services.

            (c)   The "Disability Effective Date" shall mean the date on which
termination of employment becomes effective due to Disability.

      3.    CAUSE. The Company may terminate the Employee's status as an
employee for Cause. As used herein, "Cause" shall mean the Employee's: (a)
breach of this Agreement; (b) intentional failure to perform his prescribed
duties; (c) unauthorized acts or omissions that could reasonably be expected to
cause material financial harm to the Company or materially disrupt Company
operations; (d) commission of a felony; (e) commission of an act of dishonesty
(even if not a crime) resulting in the enrichment of the Employee at the expense
of the Company; (f) knowing falsification or knowing attempted falsification of
financial records of the Company in violation of SEC Rule 13b2-1; or (g) willful
failure to follow established Company policies or procedures; provided, however,
that no such termination may take place in the case of (a) through (c) or (g)
above unless the Company has provided written notice to the Employee of such
conduct and the Employee has failed to remedy such conduct within 10 days
following receipt of such notice.

      4.    GOOD REASON. The Employee may terminate his status as an employee
for Good Reason. As used herein, the term "Good Reason" shall mean:

            (a)   The occurrence of any of the following during the Employment
Term:

                  (i)   the assignment to the Employee of any duties or
responsibilities that are inconsistent with the Employee's status, title and
position as set forth in Appendix A;

                  (ii)  any removal of the Employee from, or any failure to
reappoint or reelect the Employee to, the position set forth in Appendix A,
except in connection with a termination of Employee's status as an employee as
permitted by this Agreement;

                                       -4-
<PAGE>

                  (iii) the Company's requiring the Employee to be based
anywhere other than in the metropolitan area set forth in Appendix A, except for
required travel in the ordinary course of the Company's business;

            (b)   any breach of this Agreement by the Company that continues for
a period of 10 days after written notice thereof is given by the Employee to the
Company;

            (c)   the failure by the Company to obtain the assumption of its
obligations under this Agreement by any successor or assign as contemplated in
this Agreement; or

            (d)   any purported termination by the Company of the Employee's
status as an employee for Cause that is not effected pursuant to a Notice of
Termination satisfying the requirements of this Agreement.

      5.    VOLUNTARY TERMINATION BY THE COMPANY. The Company may terminate the
Employee's status as employee for other than death, Disability or Cause.

      6.    VOLUNTARY TERMINATION BY THE EMPLOYEE. The Employee may voluntarily
terminate the Employee's status as employee for other than Good Reason.

      7.    NOTICE OF TERMINATION. Any termination by the Company or by the
Employee, shall be communicated by Notice of Termination to the other party
hereto given in accordance with Article VII Section 2 of this Agreement. For
purposes of this Agreement, a "Notice of Termination" means a written notice
that (a) indicates the specific termination provision in this Agreement relied
upon (b) to the extent applicable, sets forth in reasonable detail the facts and
circumstances claimed to provide a basis for termination of the Employee's
employment under the provisions so indicated and (c) if the Date of Termination
(as defined below) is other than the date of receipt of such notice, specifies
the termination date (which date shall be not more than 30 days after the giving
of such notice). The failure by the Employee or the Company to set forth in the
Notice of Termination any fact or circumstance that contributes to a showing of
Good Reason, Disability or Cause shall not negate the effect of the notice nor
waive any right of the Employee or the Company, respectively, hereunder or
preclude the Employee or the Company, respectively, from asserting such fact or
circumstance in enforcing the Employee's or the Company's rights hereunder.

      8.    DATE OF TERMINATION. "Date of Termination" means (a) if Employee's
employment is terminated by reason of his death or Disability, the Date of
Termination shall be the date of death of Employee or the Disability Effective
Date, as the case may be, (b) if Employee's employment is terminated by the
Company for Cause, or by the Employee for Good Reason, the date of delivery of
the Notice of Termination or any later date specified therein (which date shall
not be more than 30 days after the giving of such notice) as the case may be,
(c) if the Employee's employment is terminated by the Company for reasons other
than death, Disability or Cause, the Date of Termination shall be the date on
which the Company notifies the Employee of such termination or any later date
specified therein, and (d) if the Employee's employment is terminated
voluntarily by the Employee for reasons other than Good Reason, the Date of
Termination shall be the date on which the Employee notifies the Company of such

                                       -5-
<PAGE>

termination or any later date specified therein (which date shall not be later
than 30 days after the giving of such notice) as the case may be.

                                   ARTICLE IV
                          OBLIGATIONS UPON TERMINATION

      1.    DEATH. If the Employee's status as an employee is terminated by
reason of the Employee's death, this Agreement shall terminate without further
obligation to the Employee's legal representatives under this Agreement, other
than the obligation to pay accrued salary through the Date of Termination and to
make any payments due pursuant to employee benefit plans maintained by the
Company or its subsidiaries.

      2.    DISABILITY. If Employee's status as an employee is terminated by
reason of Employee's Disability, this Agreement shall terminate without further
obligation to the Employee, other than the obligation to pay accrued salary
through the Date of Termination and to make any payments due pursuant to
employee benefit plans maintained by the Company or its subsidiaries.

      3.    TERMINATION BY THE COMPANY FOR REASONS OTHER THAN DEATH, DISABILITY
OR CAUSE; TERMINATION BY THE EMPLOYEE FOR GOOD REASON. If the Company terminates
the Employee's status as an employee for reasons other than death, Disability or
Cause, or the Employee terminates his employment for Good Reason, then the
Company shall pay to the Employee an amount equal to a single year's Base Salary
in effect at the Date of Termination, payable in equal installments over a
two-year period beginning on the first regular payroll date that is at least six
months after the Date of Termination and thereafter (1) at such intervals as
other salaried employees of the Company are paid.

      4.    CAUSE. If the Employee's status as an employee is terminated by the
Company for Cause, this Agreement shall terminate without further obligation to
the Employee other than for accrued salary through the Date of Termination,
obligations imposed by law and obligations imposed pursuant to any employee
benefit plan maintained by the Company or its subsidiaries.

      5.    RESIGNATION FROM BOARD OF DIRECTORS. If Employee is a director of
the Company and his employment is terminated for any reason other than death,
the Employee shall, if requested by the Company, immediately resign as a
director of the Company. If such resignation is not received when so requested,
the Employee shall forfeit any right to receive any payments pursuant to this
Agreement.

----------
(1)   This deferral is now required under the American Jobs Creation Act of
2004.

                                       -6-
<PAGE>

                                    ARTICLE V
              NONDISCLOSURE, NONCOMPETITION AND PROPRIETARY RIGHTS

      1.    CERTAIN DEFINITIONS. For purposes of this Agreement, the following
terms shall have the following meanings:

            (a)   "Confidential Information" means any information, knowledge or
data of any nature and in any form (including information that is electronically
transmitted or stored on any form of magnetic or electronic storage media)
relating to the past, current or prospective business or operations of the
Company and its subsidiaries, that at the time or times concerned is not
generally known to persons engaged in businesses similar to those conducted or
contemplated by the Company and its subsidiaries (other than information known
by such persons through a violation of an obligation of confidentiality to the
Company), whether produced by the Company and its subsidiaries or any of their
consultants, agents or independent contractors or by Employee, and whether or
not marked confidential, including without limitation information relating to
the Company's or its subsidiaries' products and services, business plans,
business acquisitions, joint ventures, processes, product or service research
and development ideas, methods or techniques, training methods and materials,
and other operational methods or techniques, quality assurance procedures or
standards, operating procedures, files, plans, specifications, proposals,
drawings, charts, graphs, support data, trade secrets, supplier lists, supplier
information, purchasing methods or practices, distribution and selling
activities, consultants' reports, marketing and engineering or other technical
studies, maintenance records, employment or personnel data, marketing data,
strategies or techniques, financial reports, budgets, projections, cost
analyses, price lists, formulae and analyses, employee lists, customer records,
customer lists, customer source lists, proprietary computer software, and
internal notes and memoranda relating to any of the foregoing.

            (b)   "Death Care Business" means (i) the owning and operating of
funeral homes and cemeteries, including combined funeral home and cemetery
facilities, (ii) the offering of services and products to meet families' funeral
needs, including prearrangement, family consultation, the sale of caskets and
related funeral and cemetery products and merchandise (whether at physical
locations or by means of the Internet), the removal, preparation and
transportation of remains, cremation, the use of funeral home facilities for
visitation and worship, and related transportation services, (iii) the marketing
and sale of funeral services and cemetery property or merchandise on an at-need
or prearranged basis, (iv) providing, managing and administering financing
arrangements (including trust funds, escrow accounts, insurance and installment
sales contracts) for prearranged funeral plans and cemetery property and
merchandise, (v) providing interment services, the sale (on an at-need or
prearranged basis) of cemetery property including lots, lawn crypts, family and
community mausoleums and related cemetery merchandise such as monuments,
memorials and burial vaults, (vi) the maintenance of cemetery grounds pursuant
to perpetual care contracts and laws or on a voluntary basis, and (vii) offering
mausoleum design, construction and sales services.

      2.    NONDISCLOSURE OF CONFIDENTIAL INFORMATION. During the Employment
Term, Employee shall hold in a fiduciary capacity for the benefit of the Company
all Confidential Information which shall have been obtained by Employee during
Employee's employment

                                      -7-
<PAGE>

(whether prior to or after the Agreement Date) and shall use such Confidential
Information solely within the scope of his employment with and for the exclusive
benefit of the Company. For a period of five years after the Employment Term,
commencing with the Date of Termination, Employee agrees (a) not to communicate,
divulge or make available to any person or entity (other than the Company) any
such Confidential Information, except upon the prior written authorization of
the Company or as may be required by law or legal process, and (b) to deliver
promptly to the Company any Confidential Information in his possession,
including any duplicates thereof and any notes or other records Employee has
prepared with respect thereto. In the event that the provisions of any
applicable law or the order of any court would require Employee to disclose or
otherwise make available any Confidential Information, Employee shall give the
Company prompt prior written notice of such required disclosure and an
opportunity to contest the requirement of such disclosure or apply for a
protective order with respect to such Confidential Information by appropriate
proceedings.

      3.    LIMITED COVENANT NOT TO COMPETE. During the Employment Term and for
a period of two years thereafter, commencing with the Date of Termination,
Employee agrees that, with respect to each State of the United States or other
jurisdiction, or specified portions thereof, in which the Employee regularly (a)
makes contact with customers of the Company or any of its subsidiaries, (b)
conducts the business of the Company or any of its subsidiaries or (c)
supervises the activities of other employees of the Company or any of its
subsidiaries, as identified in Appendix B attached hereto and forming a part of
this Agreement, and in which the Company or any of its subsidiaries engages in
the Death Care Business on the Date of Termination (collectively, the "Subject
Areas"), Employee will restrict his activities within the Subject Areas as
follows:

            (a)   Employee will not, directly or indirectly, for himself or
others, own, manage, operate, control, be employed in an executive, managerial
or supervisory capacity by, consult with, or otherwise engage or participate in
or allow his skill, knowledge, experience or reputation to be used in connection
with, the ownership, management, operation or control of, any company or other
business enterprise engaged in the Death Care Business within any of the Subject
Areas; provided, however, that nothing contained herein shall prohibit Employee
from making passive investments as long as Employee does not beneficially own
more than 2% of the equity interests of a business enterprise engaged in the
Death Care Business within any of the Subject Areas. For purposes of this
paragraph, "beneficially own" shall have the same meaning ascribed to that term
in Rule 13d-3 under the Exchange Act.

            (b)   Employee will not call upon any customer of the Company or its
subsidiaries for the purpose of soliciting, diverting or enticing away the
business of such person or entity, or otherwise disrupting any previously
established relationship existing between such person or entity and the Company
or its subsidiaries;

            (c)   Employee will not solicit, induce, influence or attempt to
influence any supplier, lessor, lessee, licensor, partner, joint venturer,
potential acquiree or any other person who has a business relationship with the
Company or its subsidiaries, or who on the Date of Termination is engaged in
discussions or negotiations to enter into a business relationship with

                                      -8-
<PAGE>

the Company or its subsidiaries, to discontinue or reduce or limit the extent of
such relationship with the Company or its subsidiaries; and

            (d)   Employee will not make contact with any of the employees of
the Company or its subsidiaries with whom he had contact during the course of
his employment with the Company for the purpose of soliciting such employee for
hire, whether as an employee or independent contractor, or otherwise disrupting
such employee's relationship with the Company or its subsidiaries.

            (e)   Employee further agrees that, for a period of one year from
and after the Date of Termination, Employee will not hire, on behalf of himself
or any person or entity engaged in the Death Care Business with which Employee
is associated, any employee of the Company or its subsidiaries as an employee or
independent contractor, whether or not such engagement is solicited by Employee;
provided, however, that the restriction contained in this subsection (e) shall
not apply to Company employees who reside in, or are hired by Employee to
perform work in, any of the Subject Areas located within the States of Virginia,
Arkansas or Georgia.

      Employee agrees that he will from time to time upon the Company's request
promptly execute any supplement, amendment, restatement or other modification of
Appendix B as may be necessary or appropriate to correctly reflect the
jurisdictions which, at the time of such modification, should be covered by
Appendix B and this Article V Section 3. Furthermore, Employee agrees that all
references to Appendix B in this Agreement shall be deemed to refer to Appendix
B as so supplemented, amended, restated or otherwise modified from time to time.

      4.    INJUNCTIVE RELIEF; OTHER REMEDIES. Employee acknowledges that a
breach by Employee of Section 2 or 3 of this Article V would cause immediate and
irreparable harm to the Company for which an adequate monetary remedy does not
exist; hence, Employee agrees that, in the event of a breach or threatened
breach by Employee of the provisions of Section 2 or 3 of this Article V during
or after the Employment Term, the Company shall be entitled to injunctive relief
restraining Employee from such violation without the necessity of proof of
actual damage or the posting of any bond, except as required by non-waivable,
applicable law. Nothing herein, however, shall be construed as prohibiting the
Company from pursuing any other remedy at law or in equity to which the Company
may be entitled under applicable law in the event of a breach or threatened
breach of this Agreement by Employee, including without limitation the recovery
of damages and/or costs and expenses, such as reasonable attorneys' fees,
incurred by the Company as a result of any such breach or threatened breach. In
addition to the exercise of the foregoing remedies, the Company shall have the
right upon the occurrence of any such breach or threatened breach to cancel any
unpaid salary, bonus, commissions or reimbursements otherwise outstanding at the
Date of Termination. In particular, Employee acknowledges that the payments
provided under Article IV Section 3 are conditioned upon Employee fulfilling any
noncompetition and nondisclosure agreements contained in this Article V. In the
event Employee shall at any time materially breach or threaten to breach any
noncompetition or nondisclosure agreements contained in this Article V, the
Company may suspend or eliminate payments under Article IV during the period of
such breach or threatened breach. Employee acknowledges that any such suspension
or elimination of payments would be an exercise of the

                                      -9-
<PAGE>

Company's right to suspend or terminate its performance hereunder upon
Employee's breach of this Agreement; such suspension or elimination of payments
would not constitute, and should not be characterized as, the imposition of
liquidated damages.

      5.    REQUESTS FOR WAIVER IN CASES OF UNDUE HARDSHIP. In the event that
Employee should find any of the limitations of Article V Section 3 (including
without limitation the geographic restrictions of Appendix B) to impose a severe
hardship on Employee's ability to secure other employment, Employee may make a
request to the Company for a waiver of the designated limitations before
accepting employment that otherwise would be a breach of Employee's promises and
obligations under this Agreement. Such request must be in writing and clearly
set forth the name and address of the organization with which employment is
sought and the location, position and duties that Employee will be performing.
The Company will consider the request and, in its sole discretion, decide
whether and on what conditions to grant such waiver.

      6.    GOVERNING LAW OF THIS ARTICLE V; CONSENT TO JURISDICTION. Any
dispute regarding the reasonableness of the covenants and agreements set forth
in this Article V (including Appendix B hereto), or the territorial scope or
duration thereof, or the remedies available to the Company upon any breach of
such covenants and agreements, shall be governed by and interpreted in
accordance with the laws of the State of the United States or other jurisdiction
in which the alleged prohibited competing activity or disclosure occurs, and,
with respect to each such dispute, the Company and Employee each hereby
irrevocably consent to the exclusive jurisdiction of the state and federal
courts sitting in the relevant State (or, in the case of any jurisdiction
outside the United States, the relevant courts of such jurisdiction) for
resolution of such dispute, and agree to be irrevocably bound by any judgment
rendered thereby in connection with such dispute, and further agree that service
of process may be made upon him or it in any legal proceeding relating to this
Article V and/or Appendix B by any means allowed under the laws of such
jurisdiction. Each party irrevocably waives any objection he or it may have as
to the venue of any such suit, action or proceeding brought in such a court or
that such a court is an inconvenient forum.

      7.    EMPLOYEE'S UNDERSTANDING OF THIS ARTICLE. Employee hereby represents
to the Company that he has read and understands, and agrees to be bound by, the
terms of this Article V (including Appendix B hereto). Employee acknowledges
that the geographic scope and duration of the covenants contained in Article V
Section 3 are the result of arm's-length bargaining and are fair and reasonable
in light of (i) the importance of the functions performed by Employee and the
length of time it would take the Company to find and train a suitable
replacement, (ii) the nature and wide geographic scope of the operations of the
Company and its subsidiaries, (iii) Employee's level of control over and contact
with the business and operations of the Company and its subsidiaries in a
significant number of jurisdictions where same are conducted and (iv) the fact
that all facets of the Death Care Business are conducted by the Company and its
subsidiaries throughout the geographic area where competition is restricted by
this Agreement. It is the desire and intent of the parties that the provisions
of this Agreement be enforced to the fullest extent permitted under applicable
law, whether now or hereafter in effect and, therefore, to the extent permitted
by applicable law, the parties hereto waive any provision

                                      -10-
<PAGE>
of applicable law that would render any provision of this Article V (including
Appendix B hereto) invalid or unenforceable.

                                   ARTICLE VI
                                  ARBITRATION

      1.    BINDING AGREEMENT TO ARBITRATE. Any claim or controversy arising out
of any provision of this Agreement (other than Article V hereof), or the breach
or alleged breach of any such provision, shall be settled by arbitration
administered by the American Arbitration Association (the "AAA") under its
National Rules for the Resolution of Employment Disputes (the "Rules"), and
judgment on the award rendered by the arbitrator(s) may be entered in any court
having jurisdiction thereof.

      2.    SELECTION AND QUALIFICATIONS OF ARBITRATORS. If no party to the
arbitration makes a claim in excess of $1.0 million, exclusive of interest and
attorneys' fees, the proceedings shall be conducted before a single neutral
arbitrator selected in accordance with the Rules. If any party makes a claim
that exceeds $1.0 million, the proceedings shall be conducted before a panel of
three neutral arbitrators, one of whom shall be selected by each party within 15
days after commencement of the proceeding and the third of whom shall be
selected by the first two arbitrators within 10 days after their appointment. If
the two arbitrators selected by the parties are unable or fail to agree on the
third arbitrator, the third arbitrator shall be selected by the AAA. Each
arbitrator shall be a member of the bar of the State of Louisiana and actively
engaged in the practice of employment law for at least 15 years.

      3.    LOCATION OF PROCEEDINGS. The place of arbitration shall be New
Orleans, Louisiana.

      4.    REMEDIES. Any award in an arbitration initiated under this Article
VI shall be limited to actual monetary damages, including if determined
appropriate by the arbitrator(s) an award of costs and fees to the prevailing
party. "Costs and fees" mean all reasonable pre-award expenses of the
arbitration, including arbitrator's fees, administrative fees, travel expenses,
out-of-pocket expenses such as copying, telephone, witness fees and attorneys'
fees. The arbitrator(s) will have no authority to award consequential, punitive
or other damages not measured by the prevailing party's actual damages, except
as may be required by statute.

      5.    OPINION. The award of the arbitrators shall be in writing, shall be
signed by a majority of the arbitrators, and shall include findings of fact and
a statement of the reasons for the disposition of any claim.

                                   ARTICLE VII
                                  MISCELLANEOUS

      1.    BINDING EFFECT.

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

                                      -11-
<PAGE>

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

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

      2.    NOTICES. All notices hereunder must be in writing and shall be
deemed to have been given upon receipt of delivery by: (a) hand (against a
receipt therefor), (b) certified or registered mail, postage prepaid, return
receipt requested, (c) a nationally recognized overnight courier service
(against a receipt therefor) or (d) telecopy transmission with confirmation of
receipt. All such notices must be addressed as follows:

      If to the Company, to:

      Stewart Enterprises, Inc.
      1333 South Clearview Parkway
      Jefferson, Louisiana 70121
      Attn: Chief Executive Officer

      If to the Employee, to:

      Lawrence B. Hawkins
      5154 Stonegate Road
      Dallas, Texas 75209

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

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

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

                                      -12-
<PAGE>

      5.    SEVERABILITY. If any term or provision of this Agreement (including
without limitation those contained in Appendix B), or the application thereof to
any person or circumstance, shall at any time or to any extent be invalid,
illegal or unenforceable in any respect as written, Employee and the Company
intend for any court construing this Agreement to modify or limit such provision
temporally, spatially or otherwise so as to render it valid and enforceable to
the fullest extent allowed by law. Any such provision that is not susceptible of
such reformation shall be ignored so as to not affect any other term or
provision hereof, and the remainder of this Agreement, or the application of
such term or provision to persons or circumstances other than those as to which
it is held invalid, illegal or unenforceable, shall not be affected thereby and
each term and provision of this Agreement shall be valid and enforced to the
fullest extent permitted by law.

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

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

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

      9.    JURY TRIAL WAIVER. THE PARTIES HEREBY WAIVE TRIAL BY JURY IN ANY
JUDICIAL PROCEEDING TO WHICH THEY ARE PARTIES INVOLVING, DIRECTLY OR INDIRECTLY,
ANY MATTER IN ANY WAY ARISING OUT OF, RELATED TO, OR CONNECTED WITH THIS
AGREEMENT.

      10.   SURVIVAL. The rights and obligations of the Company and Employee
contained in Article V of this Agreement shall survive the termination of the
Agreement. Following the Date of Termination, each party shall have the right to
enforce all rights, and shall be bound by all obligations, of such party that
are continuing rights and obligations under this Agreement.

      11.   PRIOR EMPLOYMENT AGREEMENT. Effective as of the Agreement Date, this
Agreement supersedes any prior employment agreement between the Employee and the
Company.

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

                                      -13-
<PAGE>

      13.   AMERICAN JOBS CREATION ACT OF 2004. In the event that any of the
compensation or benefits payable to the Employee hereunder are considered to be
non-qualified deferred compensation subject to the American Jobs Creation Act of
2004 (the "Jobs Act") and any regulations issued or to be issued by the
Department of the Treasury thereunder, the Company and the Employee shall
negotiate in good faith and agree to such amendments to this Agreement as they
and their respective tax counsel deem necessary to avoid the imposition of
additional taxes and penalties under the Jobs Act or such regulations, while
preserving the economic benefits intended to be conferred on the Employee by
this Agreement.

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

                                        STEWART ENTERPRISES, INC.

Dated: January 7, 2005                  By: /s/ James W. McFarland
                                            ------------------------------------
                                                     James W. McFarland
                                              Compensation Committee Chairman

                                        EMPLOYEE:

Dated: December 30, 2004                    /s/ Lawrence B. Hawkins
                                            ------------------------------------
                                                    Lawrence B. Hawkins

                                      -14-
<PAGE>

                       APPENDIX A TO EMPLOYMENT AGREEMENT
                        BETWEEN STEWART ENTERPRISES, INC.
                                       AND
                               LAWRENCE B. HAWKINS

                  BASE SALARY, BONUS COMPENSATION AND BENEFITS

1.    Effective November 1, 2001, Employee's title(s) shall be Executive Vice
      President and President - Investors Trust, Inc., Employee's Base Salary
      shall be $300,000, and Employee's principal work location shall be the
      Dallas, Texas metropolitan area.

2.    For Fiscal Year 2005 ("FY 2005"), the Employee shall be eligible to
      receive a maximum Bonus of up to $300,000.

      (a)   The Bonus available for award will be determined as follows:

<TABLE>
<CAPTION>
      FY 2005 Reported EPS                  Bonus Available
----------------------------                ----------------
<S>                                         <C>
Less than          $.46                     $              0

Equals or exceeds   .46                              300,000
</TABLE>

      (b)   The portion of the Bonus available that will be awarded will depend
            on the performance measures set forth below:

            (1)   16.67% of the Bonus available for FY 2005 will be determined
                  based on the achievement of the following diluted reported EPS
                  levels (i.e., that EPS level, rounded to the nearest whole
                  cent, reported in the Company's year-end earnings release,
                  adjusted as appropriate pursuant to 2(c) hereof):

<TABLE>
<CAPTION>
                                                 % of 16.67% of Bonus       Bonus Award
      FY 2005 Diluted Reported EPS                     Potential            Based on EPS
----------------------------------------         --------------------      ---------------
<S>                                              <C>                       <C>
Equals or exceeds   $ .46                           20.00%                 $  10,000
Equals or exceeds     .47                           35.00%                    17,500
Equals or exceeds     .48                           50.00%                    25,000
Equals or exceeds     .49                           66.67%                    33,335
Equals or exceeds     .50                           83.33%                    41,670
Equals or exceeds     .51                          100.00%                    50,000
</TABLE>

            (2)   75% of the Bonus available ($225,000) will be awarded based on
                  achievement of Business Objectives specific to the Employee's
                  area of responsibility based on criteria provided in
                  Attachment 1 to this Appendix A.

            (3)   8.33% of the Bonus available ($25,000) will be discretionary,
                  based on

                                      A-1
<PAGE>

                  Qualitative Criteria determined by the Chief Executive
                  Officer.

      (c)   Non-recurring items approved for exclusion by the Compensation
            Committee in its sole discretion shall be excluded from diluted
            earnings per share for purposes of this calculation. Diluted
            earnings per share shall be calculated by the Company's Chief
            Financial Officer taking into account any such exclusions and shall
            be binding on all Employees absent manifest error.

                                            Agreed to and accepted:

                                            STEWART ENTERPRISES, INC.

Effective date: November 1, 2004            By: /s/ James W. McFarland
                                                --------------------------------
                                                       James W. McFarland
                                                Compensation Committee Chairman

                                              EMPLOYEE

Effective date: November 1, 2004              /s/ Lawrence B. Hawkins
                                              ----------------------------------
                                                     Lawrence B. Hawkins

                                      A-2
<PAGE>

                       APPENDIX B TO EMPLOYMENT AGREEMENT
                        BETWEEN STEWART ENTERPRISES, INC.
                                       AND
                               LAWRENCE B. HAWKINS

                        Jurisdiction In Which Competition
                            Is Restricted As Provided
                             In Article V Section 3

A.    States and Territories of the United States:

1.          Louisiana-- The following parishes in the State of Louisiana:

      Orleans, St. Bernard, St. Tammany, Plaquemines, Jefferson, Lafourche, St.
      Charles, St. John the Baptist, Tangipahoa

         as well as any other parishes in the State of Louisiana in which the
         Employee regularly (a) makes contact with customers of the Company or
         any of its subsidiaries, (b) conducts the business of the Company or
         any of its subsidiaries or (c) supervises the activities of other
         employees of the Company or any of its subsidiaries as of the Date of
         Termination.

2.          Florida-- The following counties in the State of Florida:

      Seminole, Dade, Hillsborough, Duval, Orange, Pinellas, Indian River, Palm
      Beach, Volusia, Lake, Brevard, Broward, Monroe, Collier, Pasco, Manatee,
      Polk, Hardee, Nassau, Baker, Clay, St. Johns, St. Lucie, Osceola,
      Ockeechobee, Martin, Hendry, Marion, Alachua, Putnam, Levy, Hernando,
      Citrus, Sumter, Sarasota, DeSoto, Highlands, Charlotte, Glades

      as well as any other counties in the State of Florida in which the
      Employee regularly (a) makes contact with customers of the Company or any
      of its subsidiaries, (b) conducts the business of the Company or any of
      its subsidiaries or (c) supervises the activities of other employees of
      the Company or any of its subsidiaries as of the Date of Termination.

3.          Texas-- The following counties in the State of Texas:

      Kaufman, Dallas, Collin, Tarrant, Lamar, Harris, Denton, Johnson,
      Rockwall, Brazoria, Henderson, Van Zandt, Hunt, Ellis, Fannin, Wise,
      Parker, Red River, Delta, Galveston, Ft. Bend, Waller, Montgomery,
      Liberty, Chambers, Hood, Bosque, Hill, Matagorda, Franklin, Wharton,
      Somervell

AGREED TO AND ACCEPTED:

STEWART ENTERPRISES, INC.                     EMPLOYEE

BY:    /s/ James W. McFarland                    /s/ Lawrence B. Hawkins
    ------------------------------------      ----------------------------------
    JAMES W. MCFARLAND                        EFFECTIVE DATE: NOVEMBER 1, 2004
    COMPENSATION COMMITTEE CHAIRMAN
    EFFECTIVE DATE: NOVEMBER 1, 2004

                                      B-1
<PAGE>

      as well as any other counties in the State of Texas in which the Employee
      regularly (a) makes contact with customers of the Company or any of its
      subsidiaries, (b) conducts the business of the Company or any of its
      subsidiaries or (c) supervises the activities of other employees of the
      Company or any of its subsidiaries as of the Date of Termination.

4.          Maryland-- The following counties in the State of Maryland:

      Baltimore, Baltimore City, Howard, Prince George's, Anne Arundel,
      Montgomery, Carroll, Frederick, Harford, Calvert, Charles, Kent, Queen
      Anne's, Talbot, Wicomico, Worcester, Somerset, Dorchester

      as well as any other counties in the State of Maryland in which the
      Employee regularly (a) makes contact with customers of the Company or any
      of its subsidiaries, (b) conducts the business of the Company or any of
      its subsidiaries or (c) supervises the activities of other employees of
      the Company or any of its subsidiaries as of the Date of Termination.

5.          Virginia-- The following counties in the State of Virginia:

      Chesterfield, Roanoke, Rockingham, Fairfax, Tazewell, Goochland, Pulaski,
      Albemarle, Hanover, Henrico, Dinwiddie, Amelia, Powhatan, Charles City,
      Prince George, Bedford, Montgomery, Franklin, Botetourt, Craig, Floyd,
      Augusta, Shenandoah, Page, Greene, Prince William, Bland, Russell,
      Fluvanna, Louisa, Wythe, Giles, Carroll, Orange, Buckingham, Nelson, King
      William, New Kent, Spotsylvania, Caroline, Buchanan, Loudoun, Arlington,
      Smith

      as well as any other counties in the State of Virginia in which the
      Employee regularly (a) makes contact with customers of the Company or any
      of its subsidiaries, (b) conducts the business of the Company or any of
      its subsidiaries or (c) supervises the activities of other employees of
      the Company or any of its subsidiaries as of the Date of Termination.

6.          West Virginia-- The following counties in the State of West
            Virginia:

      Raleigh, Kanawha, Fayette, Berkeley, Boone, Summers, Wyoming, Clay,
      Lincoln, Jackson, Putnam, Roane, Greenbrier, Nicholas, Logan, Wayne,
      McDowell, Morgan, Jefferson, Mercer, Mingo, Cabell, Mason

      as well as any other counties in the State of West Virginia in which the
      Employee regularly (a) makes contact with customers of the Company or any
      of its subsidiaries, (b) conducts the business of the Company or any of
      its subsidiaries or (c) supervises the activities of other employees of
      the Company or any of its subsidiaries as of the Date of Termination.

                                              EMPLOYEE:

                                                 /s/ Lawrence B. Hawkins
                                              ----------------------------------
                                              EFFECTIVE DATE: NOVEMBER 1, 2004

                                      B-2
<PAGE>

7.         Puerto Rico-- The following towns in the Commonwealth of Puerto Rico:

      Bayamon, San Juan, Cayey, Canovanas, Ponce, Caguas, Carolina, Humacao, Toa
      Baja, Toa Alta, Naranjito, Aguas Buenas, Guaynabo, Comereo, Catano, Vega
      Alta, Patilla, San Lorenzo, Guayama, Salinas, Aibonito, Loita, Rio Grande,
      Las Marias, Juncos, Juana Diaz, Jajuja, Utuado, Adjuntas, Puenulas,
      Trujillo, Alto, Gurabo, Cidra, Yagucoa, Naguabo, Mayaguez, Anasco,
      Maricao, Hormiguero, San German, Cabo Rojo, Loiza, Las Piedras, Ceiba,
      Naguabo, Luquillo, San Juan

      as well as any other towns in the Commonwealth of Puerto Rico in which the
      Employee regularly (a) makes contact with customers of the Company or any
      of its subsidiaries, (b) conducts the business of the Company or any of
      its subsidiaries or (c) supervises the activities of other employees of
      the Company or any of its subsidiaries as of the Date of Termination.

8.          North Carolina-- The following counties in the State of North
            Carolina:

      Catawba, Wilson, Guilford, Haywood, Johnston, Wake, Wilkes, Craven, Nash,
      Iredell, Burke, Caldwell, Lincoln, Alexander, Cleveland, Greene, Wayne,
      Edgecombe, Pitt, Davidson, Randolph, Forsyth, Stokes, Rockingham, Caswell,
      Alamance, Jackson, Buncombe, Henderson, Transylvania, Swain, Madison,
      Sampson, Franklin, Durham, Harnett, Granville, Chatham, Alleghany, Surry,
      Ashe, Watauga, Yadkin, Pamilco, Halifax, Warren, Carteret, Jones, Lenoir,
      Beaufort, Vance, Lee, Moore, Cumberland, Davie

      as well as any other counties in the State of North Carolina in which the
      Employee regularly (a) makes contact with customers of the Company or any
      of its subsidiaries, (b) conducts the business of the Company or any of
      its subsidiaries or (c) supervises the activities of other employees of
      the Company or any of its subsidiaries as of the Date of Termination.

9.          South Carolina-- The following counties in the State of South
            Carolina:

      Greenville, Charleston, Aiken, Pickens, Laurens, Spartanburg, Anderson,
      Abbeville, Berkeley, Dorchester, Colleton, Edgefield, Saluda, Lexington,
      Orangeburg, Barnwell, Richland, Fairfield, Kershaw, Sumter, Calhoun,
      Newberry, Oconee, Georgetown

      as well as any other counties in the State of South Carolina in which the
      Employee regularly (a) makes contact with customers of the Company or any
      of its subsidiaries, (b) conducts the business of the Company or any of
      its subsidiaries or (c) supervises the activities of other employees of
      the Company or any of its subsidiaries as of the Date of Termination.

                                              EMPLOYEE:

                                                 /s/ Lawrence B. Hawkins
                                              ----------------------------------
                                              EFFECTIVE DATE: NOVEMBER 1, 2004

                                      B-3
<PAGE>

10.         Tennessee-- The following counties in the State of Tennessee:

      Davidson, Sumner, Robertson, Knox, Sullivan, Sevier, Wilson, Rutherford,
      Williamson, Cheatham, Trousdale, Macon, Montgomery, Jefferson, Grainger,
      Union, Anderson, Loudon, Blount, Roane, Greene, Washington, Carter,
      Johnson, Hawkins, Cocke, Cannon, Dekalb, Smith, Hamblen, Unicoi

      as well as any other counties in the State of Tennessee in which the
      Employee regularly (a) makes contact with customers of the Company or any
      of its subsidiaries, (b) conducts the business of the Company or any of
      its subsidiaries or (c) supervises the activities of other employees of
      the Company or any of its subsidiaries as of the Date of Termination.

11.         Arkansas-- The following counties in the State of Arkansas:

      Saline, Pulaski, Hot Spring, Garland, Perry, Grant, Lonoke, White,
      Jefferson, Faulkner, Dallas, Clark, Montgomery, Van Buren, Cleburne,
      Conway

      as well as any other counties in the State of Arkansas in which the
      Employee regularly (a) makes contact with customers of the Company or any
      of its subsidiaries, (b) conducts the business of the Company or any of
      its subsidiaries or (c) supervises the activities of other employees of
      the Company or any of its subsidiaries as of the Date of Termination.

12.         Georgia-- The following counties in the State of Georgia:

      Cobb, Cherokee, Henry, Dekalb, Fulton, Douglas, Paulding, Bartow, Pickens,
      Forsyth, Dawson, Gordon, Clayton, Rockdale, Newton, Butts, Spalding,
      Gwinnett, Fayette, Coweta, Carroll

      as well as any other counties in the State of Georgia in which the
      Employee regularly (a) makes contact with customers of the Company or any
      of its subsidiaries, (b) conducts the business of the Company or any of
      its subsidiaries or (c) supervises the activities of other employees of
      the Company or any of its subsidiaries as of the Date of Termination.

13.         Alabama-- The following counties in the State of Alabama:

      Mobile, Madison, Baldwin, Monroe, Washington, Jackson, Marshall, Morgan,
      Limestone, Clarke, Elmore, Montgomery, Macon, Coosa, Tallapoosa, Autauga,
      Chilton, Walker, Jefferson, Blount, Cullman, Winston, Tuscaloosa, Fayette,
      Marion, Wilcox, Marengo, Choctaw, Bibb, Talladega, St. Clair, Shelby,
      Perry, Hale

      as well as any other counties in the State of Alabama in which the
      Employee regularly (a) makes contact with customers of the Company or any
      of its subsidiaries, (b) conducts the

                                              EMPLOYEE:

                                                 /s/ Lawrence B. Hawkins
                                              ----------------------------------
                                              EFFECTIVE DATE: NOVEMBER 1, 2004

                                      B-4
<PAGE>

      business of the Company or any of its subsidiaries or (c) supervises the
      activities of other employees of the Company or any of its subsidiaries as
      of the Date of Termination.

14.         Mississippi-- The following counties in the State of Mississippi:

      Hinds, Madison, Rankin, Simpson, Copiah, Claiborne, Warren, Yazoo

      as well as any other counties in the State of Mississippi in which the
      Employee regularly (a) makes contact with customers of the Company or any
      of its subsidiaries, (b) conducts the business of the Company or any of
      its subsidiaries or (c) supervises the activities of other employees of
      the Company or any of its subsidiaries as of the Date of Termination.

15.         Pennsylvania-- The following counties in the State of Pennsylvania:

      Montgomery, Philadelphia, Bucks, Delaware, Chester, Berks, Lehigh,
      Northampton

      as well as any other counties in the State of Pennsylvania in which the
      Employee regularly (a) makes contact with customers of the Company or any
      of its subsidiaries, (b) conducts the business of the Company or any of
      its subsidiaries or (c) supervises the activities of other employees of
      the Company or any of its subsidiaries as of the Date of Termination.

16.         Kentucky-- The following counties in the State of Kentucky:

      Pike, Martin, Floyd, Knott, Letcher

      as well as any other counties in the State of Kentucky in which the
      Employee regularly (a) makes contact with customers of the Company or any
      of its subsidiaries, (b) conducts the business of the Company or any of
      its subsidiaries or (c) supervises the activities of other employees of
      the Company or any of its subsidiaries as of the Date of Termination.

17.         The District of Columbia.

18.         Kansas-- The following counties in the State of Kansas:

      Douglas, Leavenworth, Johnson, Miami, Franklin, Wyandotte, Sedgwick,
      Cowley, Sumner, Butler, Harvey, Reno, Kingman

      as well as any other counties in the State of Kansas in which the Employee
      regularly (a) makes contact with customers of the Company or any of its
      subsidiaries, (b) conducts the business of the Company or any of its
      subsidiaries or (c) supervises the activities of other employees of the
      Company or any of its subsidiaries as of the Date of Termination.

                                              EMPLOYEE:

                                                 /s/ Lawrence B. Hawkins
                                              ----------------------------------
                                              EFFECTIVE DATE: NOVEMBER 1, 2004

                                      B-5
<PAGE>

19.         Missouri-- The following counties in the State of Missouri:

      Boone, Audrain, Callaway, Cole, Cooper, Howard, Moniteau, Randolph,
      Jackson, Lafayette, Johnson, Cass, Clay, Ray, Platte, Clinton, Morgan,
      Pettis, Saline

      as well as any other counties in the State of Missouri in which the
      Employee regularly (a) makes contact with customers of the Company or any
      of its subsidiaries, (b) conducts the business of the Company or any of
      its subsidiaries or (c) supervises the activities of other employees of
      the Company or any of its subsidiaries as of the Date of Termination.

20.         Nebraska-- The following counties in the State of Nebraska:

      Lancaster, Otoe, Sarpy, Gage, Saline, Seward, Saunders, Cass, Butler,
      Douglas, Washington, Dodge, Johnson

      as well as any other counties in the State of Nebraska in which the
      Employee regularly (a) makes contact with customers of the Company or any
      of its subsidiaries, (b) conducts the business of the Company or any of
      its subsidiaries or (c) supervises the activities of other employees of
      the Company or any of its subsidiaries as of the Date of Termination.

      Employee and the Company agree that, throughout the Employment Term,
      Employee shall comply with all of the requirements and restrictions set
      forth in Article V of the Agreement of which this Appendix A forms a part;
      however, Employee and the Company agree that, notwithstanding anything to
      the contrary contained in Article V, Section 3 of the Agreement, Employee
      shall be required to restrict his post-employment activities in the State
      of Nebraska only to: (i) complying with the restrictions set forth in
      Article V, Section 2 of the Agreement and (ii) refraining from calling
      upon any customer of the Company or its subsidiaries with whom Employee
      has done business and/or had personal contact for the purpose of
      soliciting, diverting or enticing away the business of such person or
      entity, or otherwise disrupting any previously established relationship
      existing between such person or entity and the Company or its
      subsidiaries. The parties hereby acknowledge and agree that this
      modification to the restrictions of Article V, Section 3 as they relate to
      post-employment competition in the State of Nebraska is being entered into
      solely to comply with the limitations provided in Nebraska law on the
      extent to which noncompetition agreements may be enforced. This
      modification does not reflect the parties' agreement as to the extent of
      the limitations upon competition necessary to protect the legitimate
      interests of the Company; rather, the provisions of Article V of the
      Agreement reflect such agreement.

21.         Iowa-- The following county in the State of Iowa:

      Polk, Jasper, Marion, Warren, Madison, Dallas, Story, Boone

                                              EMPLOYEE:

                                                 /s/ Lawrence B. Hawkins
                                              ----------------------------------
                                              EFFECTIVE DATE: NOVEMBER 1, 2004

                                      B-6
<PAGE>

      as well as any other counties in the State of Iowa in which the Employee
      regularly (a) makes contact with customers of the Company or any of its
      subsidiaries, (b) conducts the business of the Company or any of its
      subsidiaries or (c) supervises the activities of other employees of the
      Company or any of its subsidiaries as of the Date of Termination.

22.         Nevada-- The following counties in the State of Nevada:

      Clark, Lincoln, Nye

      as well as any other counties in the State of Nevada in which the Employee
      regularly (a) makes contact with customers of the Company or any of its
      subsidiaries, (b) conducts the business of the Company or any of its
      subsidiaries or (c) supervises the activities of other employees of the
      Company or any of its subsidiaries as of the Date of Termination.

23.         New Mexico-- The following counties in the State of New Mexico:

      Bernalillo, Sandoval, Sante Fe, Torrance, Los Alamos, Rio Arriba, Mora,
      San Miguel

      as well as any other counties in the State of New Mexico in which the
      Employee regularly (a) makes contact with customers of the Company or any
      of its subsidiaries, (b) conducts the business of the Company or any of
      its subsidiaries or (c) supervises the activities of other employees of
      the Company or any of its subsidiaries as of the Date of Termination.

24.         Oregon-- The following counties in the State of Oregon:

      Josephine, Washington, Douglas, Curry, Jackson, Klamath, Clatsop,
      Columbia, Multnomah, Clackamas, Yamhill, Tillamook

      as well as any other counties in the State of Oregon in which the Employee
      regularly (a) makes contact with customers of the Company or any of its
      subsidiaries, (b) conducts the business of the Company or any of its
      subsidiaries or (c) supervises the activities of other employees of the
      Company or any of its subsidiaries as of the Date of Termination.

25.         California-- The following counties in the State of California:

      Glenn, Plumas, Sutter, Yuba, Colusa, Tehama, Fresno, San Mateo, Contra
      Costa, San Joaquin, Stanislaus, Santa Clara, Mariposa, Orange, San
      Bernardino, Kern, Ventura, Inyo, Riverside, Los Angeles, Monterey, Kings,
      Santa Barbara, Madera, Tulare, San Benito, Merced, San Luis Obispo,
      Nevada, Alameda, Sacramento, El Dorado, Amador, Yolo, Solano, San Diego,
      Imperial, Sonoma, Napa, Lake, Marin, Santa Cruz, Calaveras, Placer, Butte,
      Mendocino, San Francisco

                                              EMPLOYEE:

                                                 /s/ Lawrence B. Hawkins
                                              ----------------------------------
                                              EFFECTIVE DATE: NOVEMBER 1, 2004

                                      B-7
<PAGE>

      as well as any other counties in the State of California in which the
      Employee regularly (a) makes contact with customers of the Company or any
      of its subsidiaries, (b) conducts the business of the Company or any of
      its subsidiaries or (c) supervises the activities of other employees of
      the Company or any of its subsidiaries as of the Date of Termination.

      Employee and the Company agree that, throughout the Employment Term,
      Employee shall comply with all of the requirements and restrictions set
      forth in Article V of the Agreement of which this Appendix A forms a part;
      however, Employee and the Company agree that, notwithstanding anything to
      the contrary contained in Article V, Section 2 or 3 of the Agreement,
      Employee shall be required to restrict his post-employment activities in
      the State of California only to: (i) complying with the restrictions set
      forth in Article V, Section 2 of the Agreement to the extent that
      Confidential Information constitutes a trade secret under California law
      and (ii) complying with the restrictions set forth in Article V, Sections
      3(c) and 3(d) of the Agreement. The parties hereby acknowledge and agree
      that these modifications to the restrictions of Article V, Sections 2 and
      3 as they relate to post-employment disclosure and competition in the
      State of California are being entered into solely to comply with the
      limitations provided in California law on the extent to which
      nondisclosure and noncompetition agreements may be enforced. These
      modifications do not reflect the parties' agreement as to the extent of
      the limitations upon disclosure and competition necessary to protect the
      legitimate interests of the Company; rather, the provisions of Article V
      of the Agreement reflect such agreement.

26.         Illinois-- The following counties in the State of Illinois:

      Cook, Lake, McHenry, Kane, DuPage, Will

      as well as any other counties in the State of Illinois in which the
      Employee regularly (a) makes contact with customers of the Company or any
      of its subsidiaries, (b) conducts the business of the Company or any of
      its subsidiaries or (c) supervises the activities of other employees of
      the Company or any of its subsidiaries as of the Date of Termination.

27.         Washington-- The following counties in the State of Washington:

      King, Snohomish, Kittitas, Pierce, Kitsap, Skagit, Chelan, Island

      as well as any other counties in the State of Washington in which the
      Employee regularly (a) makes contact with customers of the Company or any
      of its subsidiaries, (b) conducts the business of the Company or any of
      its subsidiaries or (c) supervises the activities of other employees of
      the Company or any of its subsidiaries as of the Date of Termination.

                                              EMPLOYEE:

                                                 /s/ Lawrence B. Hawkins
                                              ----------------------------------
                                              EFFECTIVE DATE: NOVEMBER 1, 2004

                                      B-8
<PAGE>

28.         Wisconsin-- The following counties in the State of Wisconsin:

      Waukesha, Dodge, Ozaukee, Jefferson, Washington, Racine, Walworth,
      Milwaukee, Winnebago, Fond du Lac, Green Lake, Calumet, Waushara,
      Outagamie, Waupaca, Kenosha

      as well as any other counties in the State of Wisconsin in which the
      Employee regularly (a) makes contact with customers of the Company or any
      of its subsidiaries, (b) conducts the business of the Company or any of
      its subsidiaries or (c) supervises the activities of other employees of
      the Company or any of its subsidiaries as of the Date of Termination.

B.    Acknowledgment

      The Company and Employee acknowledge that Employee's voluntary compliance
      with Article V, Sections 2 and 3 constitutes a significant part of the
      consideration for the Company's agreement to make the payments specified
      in Article IV. Therefore, the Company and Employee acknowledge that it is
      the intent of this Agreement that if Employee engages in conduct described
      as prohibited conduct in Article V Section 2 or 3, the Company may suspend
      or eliminate payments under Article IV, including Section 3 of Article IV,
      during the period of such conduct, even if the parties' contractual
      prohibitions on such conduct are determined to be invalid, illegal or
      unenforceable under applicable law.

      Furthermore, the parties acknowledge that any provision in this Appendix B
      that permits Employee to engage, after the Date of Termination, in a
      particular jurisdiction, in conduct otherwise prohibited by Article V
      Section 2 or 3 (for example, as in California and Nebraska) has been
      agreed to solely in order to comply with the limitations provided in the
      law of that jurisdiction on the extent to which nondisclosure and
      noncompetition agreements may be enforced. Therefore, the parties
      acknowledge that, although Employee may be permitted pursuant to this
      Appendix B to engage, after the Date of Termination, in certain
      jurisdictions (such as California and Nebraska), in conduct otherwise
      prohibited by Article V Section 2 or 3, if Employee does engage in conduct
      prohibited by the provisions of Article V Section 2 or 3 (as such
      provisions appear in the Agreement without giving effect to any
      modifications to such provisions made by this Appendix B), Employee will
      forfeit his or her right to payments under Article IV, including Section 3
      of Article IV, during the period of such conduct.

                                              EMPLOYEE:

                                                 /s/ Lawrence B. Hawkins
                                              ----------------------------------
                                              EFFECTIVE DATE: NOVEMBER 1, 2004

                                      B-9

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