Document:

EX-4.3

 Exhibit 4.3 

EXECUTION VERSION 
  

 
  

SECURITY AGREEMENT 

dated as of 

May 11, 2021 
 by
and among 
 STONEMOR INC., 

the other Grantors from time to time party hereto, 

and 
 WILMINGTON TRUST,
NATIONAL ASSOCIATION, 
 as Collateral Agent 
  

 
  

 TABLE OF CONTENTS 

 

							
		
	ARTICLE I	  			
		
	DEFINITIONS	  			
	1.1	  	Terms Defined in UCC	  	 	1	 
	1.2	  	Definitions of Certain Terms Used Herein	  	 	1	 
	1.3	  	Terms Generally	  	 	7	 
		
	ARTICLE II	  			
		
	INTERCREDITOR AGREEMENT	  			
			
	2.1	  	Intercreditor Agreement Controls	  	 	7	 
		
	ARTICLE III	  			
		
	GRANT OF SECURITY INTEREST	  			
		
	ARTICLE IV	  			
		
	REPRESENTATIONS AND WARRANTIES	  			
			
	4.1	  	Title, Authorization, Validity and Enforceability	  	 	8	 
	4.2	  	Conflicting Laws and Contracts	  	 	9	 
	4.3	  	Principal Location	  	 	9	 
	4.4	  	No Other Names; Etc.	  	 	9	 
	4.5	  	Federal Employer Identification Number; State Organization Number; Jurisdiction of Organization	  	 	9	 
	4.6	  	Property Locations	  	 	9	 
	4.7	  	Reserved	  	 	9	 
	4.8	  	Reserved	  	 	9	 
	4.9	  	Filing Requirements	  	 	10	 
	4.10	  	No Financing Statements, Security Agreements	  	 	10	 
	4.11	  	Pledged Securities and Other Investment Property	  	 	10	 
	4.12	  	Intellectual Property	  	 	10	 
	4.13	  	Deposit Accounts and Securities Accounts	  	 	11	 
	4.14	  	Commercial Tort Claims	  	 	11	 
	4.15	  	Specific Collateral	  	 	11	 
	4.16	  	Enforcement	  	 	11	 

  
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	ARTICLE V	  			
		
	COVENANTS	  			
			
	5.1	  	General	  	 	11	 
	5.2	  	Receivables	  	 	13	 
	5.3	  	Maintenance of Goods	  	 	14	 
	5.4	  	Instruments, Securities, Chattel Paper, Documents and Pledged Deposits	  	 	14	 
	5.5	  	Uncertificated Securities and Certain Other Investment Property	  	 	14	 
	5.6	  	Stock and Other Ownership Interests	  	 	15	 
	5.7	  	Deposit Accounts and Securities Accounts	  	 	15	 
	5.8	  	Letter-of-Credit Rights	  	 	17	 
	5.9	  	Federal, State or Municipal Claims	  	 	17	 
	5.10	  	No Interference	  	 	17	 
	5.11	  	Insurance	  	 	18	 
	5.12	  	Intellectual Property	  	 	19	 
	5.13	  	Commercial Tort Claims	  	 	20	 
	5.14	  	Landlord/Bailee Agreements	  	 	20	 
	5.15	  	Updating of Perfection Certificate	  	 	20	 
		
	ARTICLE VI	  			
		
	EVENT OF DEFAULT	  			
			
	6.1	  	Remedies	  	 	20	 
	6.2	  	Grantors’ Obligations Upon an Event of Default	  	 	22	 
	6.3	  	License	  	 	23	 
		
	ARTICLE VII	  			
		
	WAIVERS, AMENDMENTS AND REMEDIES	  			
		
	ARTICLE VIII	  			
		
	PROCEEDS; COLLECTION OF RECEIVABLES	  			
			
	8.1	  	Lockboxes	  	 	23	 
	8.2	  	Collection of Receivables	  	 	24	 
	8.3	  	Special Collateral Account	  	 	24	 
	8.4	  	Application of Proceeds	  	 	24	 
	8.5	  	Cemetery Laws	  	 	25	 
		
	ARTICLE IX	  			
		
	GENERAL PROVISIONS	  			
			
	9.1	  	Notice of Disposition of Collateral; Condition of Collateral	  	 	26	 

  
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	9.2	  	Limitation on Collateral Agent’s and other Secured Parties’ Duty with Respect to the Collateral	  	 	26	 
	9.3	  	Compromises and Collection of Collateral	  	 	27	 
	9.4	  	Collateral Agent Performance of Grantor’s Obligations	  	 	27	 
	9.5	  	Authorization for Collateral Agent to Take Certain Action	  	 	27	 
	9.6	  	Specific Performance of Certain Covenants	  	 	28	 
	9.7	  	Use and Possession of Certain Premises	  	 	28	 
	9.8	  	Cemetery Laws	  	 	29	 
	9.9	  	Reinstatement	  	 	29	 
	9.10	  	Benefit of Agreement	  	 	29	 
	9.11	  	Survival of Representations	  	 	29	 
	9.12	  	Expenses	  	 	29	 
	9.13	  	Headings	  	 	30	 
	9.14	  	Termination	  	 	30	 
	9.15	  	Entire Agreement	  	 	30	 
	9.16	  	Governing Law; Jurisdiction; Waiver of Jury Trial	  	 	30	 
	9.17	  	Indemnity	  	 	31	 
	9.18	  	Subordination of Intercompany Indebtedness	  	 	31	 
	9.19	  	Severability	  	 	32	 
	9.20	  	Counterparts	  	 	32	 
	9.21	  	Additional Grantors	  	 	32	 
	9.22	  	Other Second Priority Obligations	  	 	32	 
		
	ARTICLE X	  			
		
	NOTICES	  			
			
	10.1	  	Sending Notices	  	 	34	 
	10.2	  	Change in Address for Notices	  	 	34	 
		
	ARTICLE XI	  			
		
	THE COLLATERAL AGENT	  			

 EXHIBITS 
  

			
	Exhibit A	  	Form of Amendment
	Exhibit B	  	Form of Supplement
	Exhibit C	  	Form of Short-form Intellectual Property Security Agreement
	Exhibit D	  	Form of Intercompany Note
	Exhibit E	  	Form of Accession Agreement

  

  
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 THIS SECURITY AGREEMENT (this “Agreement”) is entered into as of
May 11, 2021 by and among StoneMor Inc., a Delaware corporation (the “Issuer”), the Grantors from time to time party hereto, and Wilmington Trust, National Association, a national banking association, not in its individual
capacity but solely as collateral agent under the Indenture (as defined below) (the “Collateral Agent”) for itself and for the other Secured Parties. 

WHEREAS, the Issuer, certain Subsidiaries of the Issuer, Wilmington Trust, National Association, not in its individual capacity but solely as
trustee (the “Trustee”) and the Collateral Agent, are entering into that certain Indenture, dated as of the date hereof (as the same may be amended, restated, supplemented or otherwise modified from time to time, the
“Indenture”), providing for the issuance of the Notes by the Issuer to the Holders; and 
 WHEREAS, it is a condition to
the effectiveness of the Indenture that the Grantors enter into this Agreement. 
 ACCORDINGLY, in order to induce the Collateral Agent to
enter into the Indenture and the initial purchasers to purchase the Notes under the Indenture, the Grantors hereby agree with the Collateral Agent, for the benefit of the Secured Parties, as follows: 

ARTICLE I 
 DEFINITIONS 

Terms Defined in the Indenture. All capitalized terms used herein and not otherwise defined shall have the meanings assigned to such
terms in the Indenture. All terms defined in Article 9 of the UCC and not defined in this Agreement or the Indenture have the meanings specified therein. 

1.1 Terms Defined in UCC. The following terms have the meanings given to them in the UCC: “Account”, “As-Extracted Collateral”, “Chattel Paper”, “Control”, “Deposit Account”, “Documents”, “Equipment”, “Farm Products”, “Financial
Assets”, “Fixture”, “General Intangible”, “Goods”, “Health-Care-Insurance Receivable”, “Instruments”, “Inventory”, “Investment Property”, “Letter-of-Credit Right”, “Securities Account”, “Security” and “Supporting Obligation”. 

1.2 Definitions of Certain Terms Used Herein. As used in this Agreement, the following terms shall have the following meanings: 

“Amendment” has the meaning assigned to such term in Section 5.4. 

“Accession Agreement” means an accession agreement, if any, to this Agreement, in substantially the form of Exhibit E
hereto, entered into by the Grantors, the Other Second Priority Representative for the holders of any Other Second Priority Obligations and the Collateral Agent from time to time. 

“Collateral” means all cash, Accounts, Chattel Paper, Commercial Tort Claims, Deposit Accounts, Documents, Equipment,
Fixtures, General Intangibles, Goods, Instruments, Intellectual 

 
Property, Inventory, Investment Property, letters of credit, Letter-of-Credit Rights, Material Real Property,
Pledged Collateral, Pledged Deposits, Securities and Supporting Obligations (including, without limitation, all cash on hand, letters of credit or any other deposits (general or special, time or demand, provisional or final) with any bank or other
financial institution), wherever located, in which any Grantor now has or hereafter acquires any right or interest, and the proceeds (including Pledged Collateral Rights), insurance proceeds and products thereof, and all collateral security and
guarantees given by any person with respect to any of the foregoing, together with all books and records, customer lists, credit files, computer files, programs, printouts and other computer materials and records related thereto, it being intended
that the Collateral include all real and personal property of the Issuer and any Guarantor; provided, however, that in no case shall “Collateral” include any Excluded Property. 

“Collateral Documents” means this Agreement, the Mortgages and any other agreement, document or instrument pursuant to which
a Lien is granted by the Issuer or a Guarantor to secure any Indenture Obligations or Other Second Priority Obligations or under which rights or remedies with respect to any such Lien are governed. 

“Commercial Tort Claims” means commercial tort claims, as defined in the UCC of any Grantor, including each commercial tort
claim specifically described in Schedule 13 of the Perfection Certificate. 
 “Control Agreement” means, with
respect to any Deposit Account or any Securities Account, an agreement among the Collateral Agent, the financial institution or other person at which such account is maintained and the Grantor maintaining such account, as applicable, effective to
grant Control over such account to the Collateral Agent. 
 “Controlled Accounts” means each Controlled Deposit Account and
each Controlled Securities Account. 
 “Controlled Deposit Account” means each Deposit Account (including all funds on
deposit therein) that is the subject of an effective Control Agreement and that is maintained by any Grantor. 
 “Controlled
Securities Account” means each Securities Account (including all Financial Assets held therein and all certificates and instruments, if any, representing or evidencing such Financial Assets) that is the subject of an effective Control
Agreement and that is maintained by any Grantor with a securities intermediary. 
 “Copyrights” means (a) all
copyrights, rights and interests in copyrights, works protectable by copyright, copyright registrations, and copyright applications; (b) all renewals of any of the foregoing; (c) all income, royalties, damages, and payments now or
hereafter due and/or payable under any of the foregoing, including, without limitation, damages or payments for past or future infringements for any of the foregoing; (d) the right to sue for past, present, and future infringements of any of
the foregoing; and (e) all rights corresponding to any of the foregoing throughout the world. 
 “Discharge of Indenture
Obligations” means the earliest to occur of: (A) the payment in full in cash of (a) the principal of and interest (including interest accruing on or after the 

  
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commencement of an insolvency or liquidation proceeding, whether or not such interest would be allowed in such proceeding) and premium, if any, on all Indenture Obligations outstanding under the
Indenture Documents, and (b) any other Indenture Obligations that are due and payable or otherwise accrued and owing at or prior to the time such principal and interest are paid (other than any indemnification obligations for which no claim or
demand for payment, whether oral or written, has been made at such time); (B) the Issuer’s exercise of its legal defeasance or covenant defeasance option as described in and in accordance with Article 9 of the Indenture (C) the
satisfaction and discharge of the Indenture in accordance with Article 4 of the Indenture. 
 “Event of Default”
means, until the Discharge of Indenture Obligations, an Event of Default as defined in the Indenture Documents and, after the Discharge of Indenture Obligations, an “event of default” or words of similar meaning as defined in any Other
Second Priority Documents. 
 “Excluded Accounts” has the meaning assigned to such term in
Section 5.7. 
 “Excluded Property” means (a) all Trust Accounts, together with any proceeds
of a Grantor’s Receivables that are required by law to be placed into a Trust Account for the benefit of the applicable account debtors and all such funds held in Trust Accounts from time to time (but excluding, in any case, such funds that any
Grantor has a right to demand payment of, or is otherwise entitled to a distribution, or any rights of any Grantor in respect thereof, whether the corpus, income or proceeds of a Trust Account, in each case, in accordance with applicable law, and
such right shall not be deemed to be Excluded Property, but shall instead be treated for all purposes hereunder as a General Intangible or Account, as applicable), (b) Excluded Securities, (c) assets (including rights) that may not be pledged
as a matter of law or without prior approval of any Governmental Authorities (unless such approval has been obtained and except to the extent such law would be rendered ineffective with respect to the creation of the security interest hereunder
pursuant to Sections 9-406, 9-407, 9-408 or 9-409 of the UCC (or any successor provision
or provisions)); provided, however, that the Collateral shall include (and such security interest shall attach) immediately at such time as the legal prohibitions described in this clause (c) shall no longer be applicable,
(d) motor vehicles and similar assets subject to a certificate of title in the United States, (e) Excluded Real Property, (f) United States intent-to-use
trademark applications to the extent that, and solely during the period in which, the grant of a security interest therein would impair the validity or enforceability of such
intent-to-use trademark application under applicable federal law, (g) any lease, license, contract, permit, authorization or agreement to which any Grantor is a
party or any of its rights or interests thereunder if and to the extent and for so long as the grant of a security interest therein or in any assets or rights which are the subject thereof, shall constitute or result in (1) the abandonment,
invalidation or unenforceability of any right, title or interest of any Grantor therein, or (2) a breach or termination pursuant to the terms of, or a default under, any such lease, license, contract, permit, authorization or agreement (unless
such law, rule, regulation, term, provision or condition would be rendered ineffective with respect to the creation of the security interest hereunder pursuant to Sections 9-406,
9-407, 9-408 or 9-409 of the UCC (or any successor provision or provisions) of any relevant jurisdiction or any other applicable
law); provided, however, that the Collateral shall include (and such security interest shall attach) immediately at such time as the contractual or legal prohibitions described in this clause (g) shall no longer be applicable and
to the extent severable, shall attach immediately to any 

  
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portion of such lease, license, contract, permit, authorization or agreement not subject to the prohibitions specified above without further action of any party, and (h) Excluded Accounts;
provided, that notwithstanding anything to the contrary, to the extent that the Issuer or a Grantor grants a Lien on any asset or right described in clauses (a) through (h) above to secure any obligations under any Credit Facility or any
other First Priority Obligations, such asset or right shall not constitute Excluded Property. 
 “Excluded Real Property”
means, unless encumbered by an existing mortgage, (a) owned and leased real property (including real property operated, or to be operated, as a cemetery, crematory or funeral home) that may not be pledged as a matter of law or without prior
approval of any Governmental Authorities or third person (unless such approval has been obtained), (b) all owned and leased real property that is not operated, and is not intended to be operated, as a cemetery, crematory or funeral home (including
corporate and sales offices that are not located at a cemetery, crematory or funeral home property) and (c) real property with a Fair Market Value of less than $3.0 million. 

“Excluded Securities” means any of the following: (a) any Equity Interests or Indebtedness to the extent the pledge
thereof would be prohibited by applicable law; (b) any Equity Interests of any Foreign Subsidiary that is a CFC (other than Equity Interests of Subsidiaries formed under the laws of or domiciled in Puerto Rico) or any FSHCO in excess of 65% of
the outstanding Equity Interests of such Foreign Subsidiary or FSHCO; (c) any Margin Stock; and (d) any Equity Interests of any person that is not a Wholly-Owned Subsidiary to the extent any organizational documents, constitutional
documents, joint venture agreement, shareholder agreement, or similar agreement prohibits such a pledge without the consent of any other party or would give any other party (other than the Issuer or any Guarantor or a Wholly-Owned Subsidiary) to any
organizational documents, constitutional documents, joint venture agreement, shareholder agreement or similar agreement governing such Equity Interests the right to terminate its obligations thereunder; provided that this clause (d) shall not
apply if (1) such other party is the Issuer or any Guarantor or a Wholly-Owned Subsidiary of the Issuer, (2) consent has been obtained to consummate such pledge (it being understood that the foregoing shall not be deemed to obligate the
Partnership or any Subsidiary to obtain any such consent) and for so long as such organizational documents, constitutional documents, joint venture agreement, shareholder agreement or similar agreement or replacement or renewal thereof is in effect,
or (3) such prohibition would be rendered ineffective pursuant to the UCC of any applicable jurisdiction or any other applicable law or principles of equity and shall not apply to any proceeds or receivables thereof, the assignment of which is
expressly deemed effective under the UCC of any applicable jurisdiction notwithstanding such prohibition. 
 “Exclusive Copyright
Licenses” means all exclusive licenses to third-party U.S. Copyrights to which a Grantor is the licensee. 

“Grantors” means the Issuer and each Guarantor, including any Subsidiary that becomes a party hereto pursuant to
Section 9.21. 
 “Instructing Group” has the meaning assigned to such term in
Section 9.22. 
 “Intellectual Property” means all Patents, Trademarks, Copyrights and any other
intellectual property, including any licenses thereto. 

  
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 “Intercompany Indebtedness” has the meaning assigned to such term in
Section 9.18. 
 “Intercompany Note” shall mean any intercompany note substantially in the form
of Exhibit D. 
 “Landlord/Bailee Agreement” means any landlord waiver or other agreement, in
form and substance reasonably satisfactory to the Collateral Agent (acting on behalf of the Secured Parties), between the Collateral Agent and any third party (including any bailee, consignee, customs broker, or other similar person) in possession
of any Collateral or any landlord of any real property where any Collateral is located, as such landlord waiver or other agreement may be amended, restated, or otherwise modified from time to time. 

“Notes Secured Parties” means, collectively, each Holder, the Trustee and the Collateral Agent. 

“Obligor” has the meaning assigned to such term in Section 9.18. 

“Other Second Priority Obligations” means any Indebtedness (1) that is permitted to be Incurred under the covenant
described in Section 5.09 of the Indenture, (2) that is secured on a pari passu (and for the avoidance of doubt, not a junior or subordinated) basis with the Notes and the Note Guarantees, as applicable, by a Permitted Lien described in
clauses (18) or (21) of the definition of Permitted Liens, and (3) the aggregate principal amount of which does not at any time exceed the Maximum Other Second Priority Obligations Amount; provided that (i) such Indebtedness is
so designated as Other Second Priority Obligations in an Officers’ Certificate delivered to the Collateral Agent and (ii) an authorized representative of the holders of such Indebtedness shall have executed and delivered a Supplement to
the Intercreditor Agreement and an Accession Agreement. 
 “Other Second Priority Documents” means any Accession Agreement
and any documents instruments or agreements governing or otherwise relating to the Other Second Priority Obligations identified in an Accession Agreement. 

“Other Second Priority Representative” has the meaning assigned to such term in Section 8.4. 

“Other Second Priority Secured Parties” means, collectively, the Collateral Agent, the holders of any Other Second Priority
Obligations and the Other Second Priority Representative for such holders. 
 “Patents” means (a) any and all patents
and patent applications; (b) all inventions and improvements described and claimed therein; (c) all reissues, divisions, continuations, renewals, extensions, and
continuations-in-part thereof; (d) all licenses of the foregoing whether as licensee or licensor; (e) all income, royalties, damages, claims, and payments now
or hereafter due or payable under and with respect thereto, including, without limitation, damages and payments for past and future infringements thereof; (f) all rights to sue for past, present, and future infringements thereof; and
(g) all rights corresponding to any of the foregoing throughout the world. 

  
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 “Payment in Full” or “Paid in Full” means (x) the
Discharge of Indenture Obligations and (y) that all other Secured Obligations (other than in respect of contingent indemnification and expense reimbursement claims not then due) have been paid in full in cash. 

“Permitted Liens” means, until the Discharge of Indenture Obligations, “Permitted Liens” as defined in the
Indenture, and, after the Discharge of Indenture Obligations, Liens permitted to be incurred under any Other Second Priority Documents. 

“Permitted Property Location” has the meaning assigned to such term in Section 4.6. 

“Pledged Collateral” means all Equity Interests, Indebtedness owed to any Grantor, promissory notes, other Instruments,
Securities and other Investment Property of the Grantors constituting Collateral, whether or not physically delivered to the Collateral Agent pursuant to this Agreement. 

“Pledged Collateral Rights” means any payments of principal or interest, securities, dividends, instruments or other
distributions and any other right or property which any Grantor shall receive or shall become entitled to receive for any reason whatsoever with respect to, in substitution for, in exchange for or on the conversion of, any Pledged Collateral, and
any right to receive an Equity Interest or earnings in which any Grantor now has or hereafter acquires any right, or any rights or privileges issued by an issuer, of such Pledged Collateral. 

“Pledged Deposits” means all time deposits of money (other than Deposit Accounts and Instruments), whether or not evidenced
by certificates, which a Grantor may from time to time designate as pledged to the Collateral Agent or to any Secured Party as security for any Secured Obligations, and all rights to receive interest on said deposits. 

“Pro Rata Share” has the meaning assigned to such term in Section 8.4.2. 

“Receivables” means the Accounts, Chattel Paper, Documents, Investment Property, Instruments or Pledged Deposits, or any
other rights or claims to receive money which are General Intangibles, which are included as Collateral. 
 “Secured
Obligations” means, collectively, the Indenture Obligations and the Other Second Priority Obligations, if any. 
 “Secured
Parties” means, collectively, the Notes Secured Parties and the Other Second Priority Secured Parties, if any. 

“Short-form Intellectual Property Security Agreement” has the meaning assigned to such term in
Section 5.12. 
 “Target Amount” means $250,000. 

“Trademarks” means (a) all trademarks (including service marks), trade names, trade dress, and trade styles and the
registrations and applications for registration thereof and the goodwill of the business symbolized by the foregoing; (b) all licenses of the foregoing, whether as licensee or 

  
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licensor; (c) all renewals of the foregoing; (d) all income, royalties, damages, and payments now or hereafter due or payable with respect thereto, including, without limitation,
damages, claims, and payments for past and future infringements thereof; (e) all rights to sue for past, present, and future infringements of the foregoing, including the right to settle suits involving claims and demands for royalties owing;
and (f) all rights corresponding to any of the foregoing throughout the world. 
 1.3 Terms Generally. The definitions of terms
herein shall apply equally to the singular and plural forms of the terms defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words “include”, “includes”
and “including” shall be deemed to be followed by the phrase “without limitation”. The word “will” shall be construed to have the same meaning and effect as the word “shall”. The word “law” shall be
construed as referring to all statutes, rules, regulations, codes and other laws (including official rulings and interpretations thereunder having the force of law or with which affected persons customarily comply), and all judgments, orders and
decrees, of all Governmental Authorities. Unless the context requires otherwise (a) any definition of or reference to any agreement, instrument or other document herein shall be construed as referring to such agreement, instrument or other
document as from time to time amended, restated, supplemented or otherwise modified (subject to any restrictions on such amendments, restatements, supplements or modifications set forth herein), (b) any definition of or reference to any statute,
rule or regulation shall be construed as referring thereto as from time to time amended, supplemented or otherwise modified (including by succession of comparable successor laws), (c) any reference herein to any person shall be construed to include
such person’s successors and assigns (subject to any restrictions on assignment set forth herein) and, in the case of any Governmental Authority, any other Governmental Authority that shall have succeeded to any or all functions thereof,
(d) the words “herein”, “hereof” and “hereunder”, and words of similar import, shall be construed to refer to this Agreement in its entirety and not to any particular provision hereof, (e) all references
herein to Articles, Sections and Exhibits shall be construed to refer to Articles and Sections of and Exhibits and to, this Agreement, (f) the words “asset” and “property” shall be construed to have the same meaning and
effect and to refer to any and all tangible and intangible assets and properties, including cash, securities, accounts and contract rights, and (g) all certificates and other required deliverables and submissions made by an officer of any
Grantor shall be deemed for all purposes to be made by such person solely in such person’s capacity as an officer of such Grantor and not in such person’s individual capacity. 

ARTICLE II 
 INTERCREDITOR
AGREEMENT 
 2.1 Intercreditor Agreement Controls. Notwithstanding anything herein to the contrary, the Lien and security
interest granted to the Collateral Agent pursuant to this Agreement, the exercise of any right or remedy by such Collateral Agent hereunder, the rights of the Holders hereunder (direct or indirect), and the obligations of the Grantors hereunder
(e.g., as to the delivery of Collateral) are subject to the provisions of the Intercreditor Agreement (if any). In the event of any conflict between the terms of the Intercreditor Agreement (if any) and this Agreement, the terms of the Intercreditor
Agreement shall govern and control. 

  
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 ARTICLE III 

GRANT OF SECURITY INTEREST 
 Each
Grantor, as collateral security for the prompt and complete payment in full and performance when due (whether at stated maturity, by acceleration or otherwise) in full of the Secured Obligations, hereby pledges, assigns and grants to the Collateral
Agent, for the benefit of the Secured Parties, a Lien on and security interest in, all of its right, title and interest in, to and under the Collateral of such Grantor, whether now owned or at any time hereafter acquired by such Grantor or in which
such Grantor now has or at any time in the future may acquire any right, title or interest, wheresoever located, including all accessions thereto and proceeds thereof, and whether now or hereafter existing or arising. 

ARTICLE IV 
 REPRESENTATIONS
AND WARRANTIES 
 Each of the Grantors represents and warrants to the Collateral Agent and the Secured Parties that: 

4.1 Title, Authorization, Validity and Enforceability. Such Grantor has good and valid rights in or the power to transfer the
Collateral owned by it and title to the Collateral with respect to which it has purported to grant a security interest hereunder, free and clear of all Liens except for Permitted Liens, and has full corporate, limited liability company or
partnership, as applicable, power and authority to grant to the Collateral Agent the security interest in such Collateral pursuant hereto. The execution and delivery by such Grantor of this Agreement and the performance by such Grantor of its
obligations in accordance with the terms of this Agreement have been duly authorized by proper corporate, limited liability company, limited partnership or partnership, as applicable, proceedings, and this Agreement constitutes a legal, valid and
binding obligation of such Grantor and creates a security interest which is enforceable against such Grantor in all Collateral it now owns or hereafter acquires, except as enforceability may be limited by (i) bankruptcy, insolvency,
receivership, moratorium, fraudulent conveyance, reorganization or similar laws relating to or affecting the enforcement of creditors’ rights generally, (ii) general equitable principles (whether considered in a proceeding in equity or at
law), and (iii) requirements of reasonableness, good faith and fair dealing. When financing statements have been filed in the appropriate offices against such Grantor in the locations listed in Schedule 6 of the Perfection
Certificate, the Collateral Agent will have a legal, valid and perfected first priority Lien on the Collateral (other than, as to priority, in respect of Permitted Liens which are the subject of any of clauses (1), (3)-(8), (10) (regarding
Indebtedness secured by a lien originally granted or existing pursuant to any First Priority Exception other than clause (10)), (11), (14), (16), (17), (20), and (25)-(33) of the definition thereof; collectively, the “First Priority
Exceptions”) owned by such Grantor in which a Lien may be perfected by the filing of a financing statement under the UCC, by the filing with the United States Patent and Trademark Office or United States Copyright Office and comparable
offices in foreign jurisdictions or by the equivalent filings in foreign jurisdictions, subject to Permitted Liens. When any Pledged Collateral are delivered to the Collateral Agent, for the benefit of the Secured Parties, in accordance with this
Agreement and a financing statement 

  
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naming the Collateral Agent as the secured party and covering the Pledged Collateral is filed in the appropriate filing office, the Collateral Agent will obtain, for the benefit of the Secured
Parties, a legal, valid and perfected first priority lien (other than, as to priority, in respect of the First Priority Exceptions) upon and security interest in such Pledged Collateral under the UCC, subject only to Permitted Liens, to the
extent such perfection is governed by the UCC. 
 4.2 Conflicting Laws and Contracts. Neither the execution and delivery by such
Grantor of this Agreement, the creation and perfection of the security interest in the Collateral granted hereunder, the performance by such Grantor of its obligations in accordance with the terms and provisions hereof, nor compliance with the terms
and provisions hereof will violate (i) any applicable law, rule, regulation, order, writ, judgment, injunction, decree or award binding on such Grantor or (ii) such Grantor’s charter, articles or certificate of incorporation,
partnership agreement or bylaws (or similar constitutive documents), or (iii) the provisions of any material indenture, instrument or agreement to which such Grantor is a party or is subject, or by which it, or its property may be bound or
affected, or conflict with or constitute a default thereunder, or result in or require the creation or imposition of any Lien in, of or on the property of such Grantor pursuant to the terms of any such indenture, instrument or agreement (other than
any Lien of the Collateral Agent on behalf of the Secured Parties). 
 4.3 Principal Location. Such Grantor’s location of its
place of business (if it has only one) or its chief executive office (if it has more than one place of business), are disclosed in Schedule 2(a) of the Perfection Certificate. As of the Issue Date, such Grantor has no other places of
business, and no Permitted Property Locations (as defined in Section 4.6), except those set forth in Schedule 7(a) of the Perfection Certificate. 

4.4 No Other Names; Etc. Within the five-year period ending as of the date such person becomes a Grantor hereunder, such Grantor has
not conducted business under any name, changed its jurisdiction of formation, merged with or into or consolidated with any other person, except as disclosed in Schedule 1(c) of the Perfection Certificate. The name in which such Grantor
has executed this Agreement is the exact name as it appears in such Grantor’s organizational documents, as amended, as filed with such Grantor’s jurisdiction of organization as of the date such person becomes a Grantor hereunder. 

4.5 Federal Employer Identification Number; State Organization Number; Jurisdiction of Organization. Such Grantor’s federal
employer identification number is, and if such Grantor is a registered organization, such Grantor’s State of organization, type of organization and State of organization identification number are, listed in Schedule 1(a) of the
Perfection Certificate. 
 4.6 Property Locations. Except with respect to Inventory, Equipment and Fixtures (i) having a value
individually less than $250,000 and $500,000 in the aggregate (for all Grantors), (ii) in transit or (iii) under repair, the Inventory, Equipment and Fixtures are located solely at the locations of such Grantor described in
Section 4.3 (each, a “Permitted Property Location”). 
 4.7 Reserved. 

4.8 Reserved. 

  
 9 

 4.9 Filing Requirements. None of the material Equipment owned by such Grantor is
covered by any certificate of title, except for motor vehicles. None of the Collateral owned by such Grantor is of a type for which security interests or liens may be perfected by filing under any federal statute except for (i) motor vehicles
and (ii) Patents, Trademarks, Copyrights and Exclusive Copyright Licenses held by such Grantor and described in Schedules 12(a) and 12(b) of the Perfection Certificate. 

4.10 No Financing Statements, Security Agreements. No effective financing statement or security agreement describing all or any portion
of the Collateral naming such Grantor as debtor has been filed or is of record in any jurisdiction except financing statements (i) naming the Collateral Agent on behalf of the Secured Parties as the secured party or (ii) in respect of
Permitted Liens; provided that nothing herein shall be deemed to constitute an agreement to subordinate any of the Liens of the Collateral Agent under the Indenture Documents or any Other Second Priority Documents to any Permitted Liens
(other than, as to priority, in respect of the First Priority Exceptions). 
 4.11 Pledged Securities and Other Investment Property.
Schedules 10, 11 and 12 of the Perfection Certificate set forth a complete and accurate list of the Pledged Collateral, including Instruments, Securities and other Investment Property constituting Collateral. Each Grantor is the
direct and beneficial owner of the Pledged Collateral, including Instrument, Security and other type of Investment Property listed in Schedules 10, 11 and 12 of the Perfection Certificate as being owned by it, free and clear of
any Liens, except for Permitted Liens. Each Grantor further represents and warrants that (i) all Pledged Collateral owned by it constituting an Equity Interest has been (to the extent such concepts are relevant with respect to such Pledged
Collateral) duly authorized and validly issued, are fully paid and non-assessable and constitute the percentage of the issued and outstanding shares of stock (or other Equity Interests) of the respective
issuers thereof indicated in Schedule 10 of the Perfection Certificate, (ii) with respect to any certificates delivered to the Collateral Agent representing an Equity Interest, either such certificates are Securities as defined in
Article 8 of the UCC of the applicable jurisdiction as a result of actions by the issuer or otherwise, or, if such certificates are not Securities, such Grantor has taken or, has so informed the Collateral Agent so that the Collateral Agent may
take, steps to perfect the Collateral Agent’s security interest therein as a General Intangible and (iii) all such Pledged Collateral held by a securities intermediary is held in one or more Controlled Securities Accounts. 

4.12 Intellectual Property. Schedules 12(a) and 12(b) of the Perfection Certificate contains a complete and accurate
listing as of the Issue Date of all Intellectual Property of each of the Grantors that is registered or the subject of an application for registration or issuance, as well as all Exclusive Copyright Licenses. Except where the failure could not
reasonably be expected to result in a Material Adverse Effect, all of the U.S. registrations, applications for registration or applications for issuance of the Intellectual Property are valid and subsisting, in good standing and are recorded or in
the process of being recorded in the name of the applicable Grantor. The consummation of the transactions contemplated by the Indenture Documents will not result in the termination or impairment of any of the Intellectual Property which could
reasonably be expected to result in a Material Adverse Effect. 

  
 10 

 4.13 Deposit Accounts and Securities Accounts. All of such Grantor’s Deposit
Accounts and Securities Accounts (other than Trust Accounts) are listed on Schedule 14 of the Perfection Certificate. 
 4.14
Commercial Tort Claims. The only existing Commercial Tort Claims of any Grantor with a value in excess of $250,000 are those listed on Schedule 13 of the Perfection Certificate, which sets forth such information separately for
each Grantor. 
 4.15 Specific Collateral. None of the Collateral is or is proceeds or products of Farm Products, As-Extracted Collateral, Health-Care-Insurance Receivables or timber to be cut. 
 4.16
Enforcement. No permit, consent, approval, authorization, license, registration, notice to or filing with any Governmental Authority or any other person is required for the exercise by the Collateral Agent of its rights (including voting
rights) provided for in this Agreement or the enforcement of remedies in respect of the Collateral pursuant to this Agreement, including the transfer of any Collateral, except as may be required in connection with the disposition of any portion of
the Pledged Collateral by laws affecting the offering and sale of securities generally, any approvals that may be required to be obtained from any bailees or landlords to collect the Collateral, or compliance with (or as may be required by)
applicable securities laws or Cemetery Laws, under which consent cannot be obtained prior to such exercise of rights or enforcement of remedies provided herein. 

ARTICLE V 
 COVENANTS 

Until this Agreement is terminated in accordance with Section 9.14, each Grantor hereby agrees to the following:

 5.1 General. 
 5.1.1
Reserved. 
 5.1.2 Reserved. 

5.1.3 Records and Reports. Each Grantor shall keep and maintain proper books and records with respect to the Collateral owned by such
Grantor. 
 5.1.4 Financing Statements and Other Actions; Defense of Title. Each Grantor will file or cause the filing of and hereby
authorizes the Collateral Agent to file, and if requested will execute and deliver to the Collateral Agent, all financing statements and amendments thereto describing the Collateral owned by such Grantor and other documents and take such other
actions as may from time to time as required, or as reasonably be requested by the Collateral Agent, in order to perfect or maintain a first priority (other than, as to priority, in respect of Permitted Liens securing First Priority
Obligation), perfected security interest in and, if applicable, Control of, the Collateral owned by such Grantor, subject to Permitted Liens; provided that nothing herein shall be deemed to constitute an agreement to subordinate any of the
Liens of the Collateral Agent under 

  
 11 

 
the Indenture Documents or any Other Second Priority Document to any Permitted Liens other than, as to priority, in respect of the First Priority Exceptions. Such financing statements and
amendments thereto may describe the Collateral in the same manner as described herein or may contain an indication or description of collateral that describes such property in any other manner as the Collateral Agent may determine, in its reasonable
discretion, is necessary, advisable or prudent to ensure that the perfection of the security interest in the Collateral granted to the Collateral Agent herein, including, without limitation, describing such property as “all assets of the debtor
whether now owned or hereafter acquired and wheresoever located, including all accessions thereto and proceeds thereof”, or words of similar effect or with greater detail. Each Grantor will take any and all actions necessary to defend title to
the Collateral owned by such Grantor against all persons and to defend the security interest of the Collateral Agent in such Collateral and the priority thereof against any Lien other than Permitted Liens. 

Notwithstanding the grant of authority to the Collateral Agent under this Section 5.1.4, each Grantor agrees to file or cause the
filing of any initial financing statement or amendment thereto necessary to perfect or maintain the perfection of the Collateral Agent’s first priority (other than, as to priority, in respect of the First Priority Exceptions) security
interest in the Collateral owned by such Grantor. 
 5.1.5 Disposition of Collateral. No Grantor will consummate any Asset Sale
involving the Collateral owned by such Grantor except Asset Sales permitted pursuant to the Indenture Documents or, after the Discharge of Indenture Obligations, the Other Second Priority Documents. 

5.1.6 Liens. No Grantor will create, incur, or suffer to exist any Lien on the Collateral owned by such Grantor except Permitted Liens;
provided that, nothing herein shall be deemed to constitute an agreement to subordinate any of the Liens of the Collateral Agent under the Indenture Documents or any Other Second Priority Documents to any Permitted Liens other than, as to
priority, in respect of the First Priority Exceptions. 
 5.1.7 Reserved. 

5.1.8 Further Assurances. 
 Each Grantor
shall furnish to the Collateral Agent from time to time statements and schedules further identifying and describing the Collateral and such other documents in connection with the Collateral as the Collateral Agent may reasonably request (acting at
the direction of the Instructing Group), all in reasonable detail and in form and substance reasonably satisfactory to the Collateral Agent (acting at the direction of the Instructing Group). In addition, at any time and from time to time, upon the
written request of the Collateral Agent (acting at the direction of the Instructing Group), such Grantor shall, for the purpose of the Collateral Agent obtaining or preserving the full benefits of this Agreement and of the rights, powers and
remedies herein granted, take such further action as the Collateral Agent may reasonably request (acting at the direction of the Instructing Group). 

5.1.9 Change in Corporate Existence, Type or Jurisdiction of Organization, Location, Name. Each Grantor will: 

  
 12 

 (i) preserve its existence and organizational structure as in effect on the
Issue Date; 
 (ii) not change its name or jurisdiction of organization; 

(iii) not maintain its place of business (if it has only one) or its chief executive office (if it has more than one place of
business) at a location other than a location specified in Schedule 2(a) of the Perfection Certificate; and 

(iv) (A) subject to Section 4.6, not have any Inventory, Equipment or Fixtures at a location other
than a Permitted Property Location or (B) not change its name or taxpayer identification number, 
 unless, in each such case, such Grantor shall have
given the Collateral Agent not less than ten (10) days’ (or such shorter period as the Collateral Agent (acting at the direction of the Instructing Group in their sole discretion) may agree to) prior written notice of such event or
occurrence and the Grantors shall have (unless the Instructing Group determine, with communication of such determination, if any, to be delivered to the Issuer, the Trustee and the Collateral Agent, that such event or occurrence will not adversely
affect the validity, perfection or priority of the Collateral Agent’s security interest in the Collateral), taken such steps (with the cooperation of such Grantor to the extent necessary or advisable) as are necessary or advisable to properly
maintain the validity, perfection and priority of the Collateral Agent’s security interest in the Collateral owned by such Grantor. Upon the reasonable request of the Collateral Agent (acting at the direction of the Instructing Group) from time
to time, such Grantor will provide a list of all Permitted Property Locations and each other location where any Inventory, Equipment, Fixtures or proceeds or products thereof are located. 

5.1.10 Other Financing Statements. No Grantor will suffer to exist or authorize the filing of any effective financing statement,
amendment or termination statement naming it as debtor covering all or any portion of the Collateral owned by such Grantor, except any financing statement, amendment or termination statement authorized under Section 5.1.4
and any financing statement, amendment or termination statement in respect of Permitted Liens. Each Grantor acknowledges that it is not authorized to file any financing statement, amendment or termination statement with respect to any financing
statement filed in connection herewith without the prior written consent of the Collateral Agent (acting at the direction of the Instructing Group), subject to such Grantor’s rights under
Section 9-509(d)(2) of the UCC. 
 5.2 Receivables. 

5.2.1 Deposit of Receivables in Trust Accounts. Such Grantor shall not deposit or cause to be deposited into any Trust Account any
Receivables or proceeds thereof unless required under applicable Cemetery Laws. 
 5.2.2 Collection of Receivables. Subject to
Section 9.3, except in the ordinary course of business of such Grantor and consistent with such Grantor’s reasonable and good faith business judgment, each Grantor will collect and enforce, at such Grantor’s sole
expense, all amounts due or hereafter due to such Grantor under the Receivables owned by such Grantor. 

  
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 5.2.3 Reserved. 

5.2.4 Reserved. 
 5.2.5
Electronic Chattel Paper. Each Grantor shall take all steps necessary to grant the Collateral Agent Control of all electronic chattel paper with a value individually of $250,000 or more in accordance with the UCC and all “transferable
records” as defined in each of the Uniform Electronic Transactions Act and the Electronic Signatures in Global and National Commerce Act. 

5.3 Maintenance of Goods. Each Grantor will do all things necessary to maintain, preserve, protect and keep the Inventory and the
Equipment owned by such Grantor in good repair, working order and saleable condition (ordinary wear and tear and casualty excepted) and make all necessary and proper repairs, renewals and replacements so that its business carried on in connection
therewith may be properly conducted at all times, except where the failure to do so, individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect. 

5.4 Instruments, Securities, Chattel Paper, Documents and Pledged Deposits. Each Grantor will (i) deliver to the Collateral Agent
immediately upon execution of this Agreement the originals of all Chattel Paper (with a value, individually, of $250,000 or more), Equity Interests and other Securities (to the extent certificated) and promissory notes or other Instruments
(including, for the avoidance of doubt, the Intercompany Note), in each case constituting Collateral, (ii) hold in trust for the Collateral Agent upon receipt and immediately thereafter deliver to the Collateral Agent any such Chattel Paper,
Equity Interests, Securities, promissory note, and Instruments constituting Collateral, (iii) upon the designation of any Pledged Deposits (as set forth in the definition thereof), deliver to the Collateral Agent such Pledged Deposits which are
evidenced by certificates included in the Collateral endorsed in blank, marked with such legends and assigned as the Collateral Agent shall specify, (iv) upon the Collateral Agent’s request, after the occurrence and during the continuance
of an Event of Default, deliver to the Collateral Agent (or hold in trust for the Collateral Agent upon receipt and immediately deliver to the Collateral Agent) any Document evidencing or constituting Collateral, and (v) concurrently with each
such delivery deliver to the Collateral Agent a duly executed amendment to this Agreement, in the form of Exhibit A hereto (the “Amendment”), pursuant to which such Grantor will pledge such additional Collateral,
and each such delivery shall be accompanied by stock powers or note powers, as applicable, duly executed in blank or other instruments of transfer as are necessary to grant the Collateral Agent control over such Collateral. Such Grantor hereby
authorizes the Collateral Agent to attach each Amendment to this Agreement and agrees that all additional Collateral owned by it set forth in such Amendments shall be considered to be part of the Collateral. Any intercompany Indebtedness shall be
subject to the Intercompany Note, and, in the case of (x) intercompany obligations owing to the Issuer or a Guarantor thereunder, pledged to the Collateral Agent, and (y) intercompany obligations owing to a Subsidiary that is not a
Guarantor, subordinated to the Secured Obligations in accordance therewith. 
 5.5 Uncertificated Securities and Certain Other Investment
Property. Each Grantor will use all commercially reasonable efforts to cause the appropriate issuers (and, if held with a securities intermediary, such securities intermediary) of uncertificated securities or other types of

  
 14 

 
Investment Property not represented by certificates which are Collateral owned by such Grantor to mark their books and records with the numbers and face amounts of all such uncertificated
securities or other types of Investment Property not represented by certificates and all rollovers and replacements therefor to reflect the Lien of the Collateral Agent granted pursuant to this Agreement. Except as set forth in
Section 5.7 below, each Grantor will use all commercially reasonable efforts, with respect to Investment Property constituting Collateral owned by such Grantor held with a financial intermediary, to cause such financial
intermediary to enter into a control agreement with the Collateral Agent in form and substance necessary to vest the Collateral Agent with control over such Investment Property. 

5.6 Stock and Other Ownership Interests. 

5.6.1 Changes in Capital Structure of Subsidiaries. Except as permitted in the Indenture, no Grantor will (i) permit or suffer any
Subsidiary of such Grantor to dissolve, liquidate, retire any of its capital stock or other Instruments or Securities evidencing ownership, reduce its capital or merge or consolidate with any other entity, or (ii) vote any of the Instruments,
Securities or other Investment Property in favor of any of the foregoing, except to the extent permitted under the Indenture. 
 5.6.2
Issuance of Additional Securities. Except as permitted under the Indenture, no Grantor will permit or suffer any Subsidiary to issue any securities or other ownership interests, any right to receive the same or any right to receive earnings,
except to such Grantor or ratably to the holders of the securities or other ownership interests of such Subsidiary. 
 5.6.3 Registration
of Pledged Securities and other Investment Property. Each Grantor will permit any registrable Collateral owned by such Grantor to be registered in the name of the Collateral Agent or its nominee at any time at the option of the Instructing Group
following the occurrence and during the continuance of an Event of Default and without any further consent of such Grantor. 
 5.6.4
Exercise of Rights in Pledged Securities and other Investment Property. Each Grantor will permit the Collateral Agent or its nominee at any time during the continuance of an Event of Default, upon notice as set forth in clause (v) of
Section 6.1, to exercise or refrain from exercising any and all voting and other consensual rights pertaining to the Pledged Collateral owned by such Grantor or any part thereof, and to receive all dividends and interest in
respect of such Pledged Collateral. 
 5.7 Deposit Accounts and Securities Accounts. 

5.7.1 On the Issue Date or, as applicable, within the time period set forth in Sections 5.16 or 5.22 of the Indenture (as applicable), or
within 60 days after any person becomes a Grantor after the Issue Date or the opening of any Deposit Account or Securities Account (other than an Excluded Account), the Issuer and each applicable Guarantor shall enter into Control Agreements with
respect to all cash and Permitted Investments maintained in Deposit Accounts and Securities Accounts of the Issuer and each Guarantor, in each case, other than cash and Permitted Investments maintained or permitted to be maintained in Excluded
Accounts, or comprised of Excluded Property. It is understood and agreed that the proceeds of the Notes shall 

  
 15 

 
be held in a Deposit Account subject to a Control Agreement pending application for any purpose not prohibited under the Indenture Documents. 

5.7.2 At any time after the occurrence and during the continuance of an Event of Default, the Collateral Agent (acting at the written
direction of the Instructing Group) shall have the right to deliver an “activation notice” (or similar term, as defined in each Control Agreement) with respect to each Controlled Account. After delivery of an “activation notice”
(or similar term, as defined in each Control Agreement), the Collateral Agent shall comply with the written instructions of the Instructing Group with respect to credits and transfers from the applicable Controlled Accounts. The Instructing Group
shall instruct the Collateral Agent to terminate any such activation notice, and the Collateral Agent shall provide notice of termination of any such activation notice (upon receipt of any such instruction), promptly after the date when the
applicable Event of Default is no longer continuing. 
 5.7.3 Each Grantor may close and/or open any account (including any Controlled
Account) maintained at any bank or other financial institution subject to the applicable requirements of Section 5.7.1; provided that no Grantor may grant Control over any Controlled Account to any Person other than
(i) the Collateral Agent or (ii) subject to any Intercreditor Agreement, the First Priority Agent. 
 5.7.4 So long as no Event of
Default has occurred and is continuing, each Grantor may direct the manner of disposition of funds in all Controlled Accounts. 
 5.7.5 The
Collateral Agent (acting at the written direction of the Instructing Group) shall promptly (a) furnish written notice to each person with whom a Controlled Account is maintained of any termination of an Event of Default or (b) take such
other action and execute such other documents as may be reasonably requested by the Issuer or the applicable Guarantor in connection with any termination of an Event of Default. 

5.7.6 Each Grantor shall, subject the other provisions of this Section 5.7 and to compliance with Cemetery Laws,
(i) deposit all of its cash in Controlled Deposit Accounts or Controlled Securities Accounts; provided, however, that each Grantor may separately maintain, and deposit cash in, (v) Trust Accounts, (w) zero-balance accounts for the purpose of managing local disbursements, (x) payroll, employee benefits, withholding tax and other fiduciary accounts, (y) Deposit Accounts and Securities Accounts
with a balance or value of less than or equal to $1,000,000 (based on the closing account balances of the end of each Business Day) in the aggregate for all Grantors and (z) segregated Deposit Accounts and segregated Securities Accounts solely
containing, in the case of Deposit Accounts, cash, or, in the case Securities Accounts, securities, in either case, constituting collateral supporting (I) letters of credit, surety bonds, cash management services, or, to the extent
collateralizing obligations incurred in the ordinary course of business and consistent with past practice (and that are permitted to be incurred under the Indenture), trust arrangements, (II) the performance of statutory obligations, surety or
appeal bonds, performance bonds, workmen’s compensation or unemployment obligations and (III) repurchase agreements constituting Permitted Investments, in each case for this clause (z), permitted by the Indenture for so long as such
accounts are solely supporting such obligations under any of sub-clauses (I)–(III) (the accounts described in clauses (v), (w), (x), (y), and (z) being referred to collectively as the
“Excluded Accounts”, such accounts not being required to be 

  
 16 

 
Controlled Deposit Accounts or Controlled Securities Accounts) and (ii) subject to compliance with applicable Cemetery Laws, (x) maintain all of its Pledged Collateral constituting
Collateral held by a securities intermediary in Controlled Securities Accounts. If the balance or value of the accounts described in clause (y) above exceeds $1,000,000 in the aggregate at any time (based on the closing account balances of the
end of each Business Day), or if an Event of Default has occurred and is then continuing, then the Grantors shall promptly (but no less frequently than weekly) cause such excess to be transferred to one or more of the Controlled Deposit Accounts or
Controlled Securities Accounts and (y) cause all cash or other assets distributed, withdrawn or otherwise removed from any Trust Account (whether principal, interest or other earnings), to the extent constituting Collateral, to be deposited
into Controlled Deposit Accounts or Controlled Securities Accounts, as applicable; provided that with respect to (a) Excluded Accounts excluded by virtue of clause (y) of the definition thereof, the Grantors shall use commercially
reasonable efforts to institute instructions to or otherwise cause the depository institution in respect of such accounts to automatically sweep the available balance thereof, and (b) any Deposit Account of a Cemetery Non-Profit, the Grantors shall use commercially reasonable efforts to collect amounts payable by any such Cemetery Non-Profit to such Grantors, and in this regard, the
Grantors may, to the extent permitted by the relevant Cemetery Non-Profit, institute instructions to or otherwise cause the depository institution in respect of any such account to automatically sweep the
available balance thereof with respect to funds that any Grantor has a right to demand payment of, for all such balances (described in clauses (a) or (b)) in the aggregate in excess of the Target Amount, to a Controlled Account, on a weekly
basis (but in no event less frequently than monthly). 
 5.8
Letter-of-Credit Rights. Each Grantor will use commercially reasonable efforts to cause each issuer of a letter of credit in an amount in excess of $125,000
individually for which such Grantor is the beneficiary to consent to the assignment of proceeds of such letter of credit in order to give the Collateral Agent Control of the
Letter-of-Credit Rights to such letter of credit. 
 5.9
Federal, State or Municipal Claims. Each Grantor will notify the Collateral Agent in writing of any Collateral owned by such Grantor which constitutes a claim involving an amount of $125,000 or more against the United States government or any
state or local government or any instrumentality or agency thereof, the assignment of which claim is restricted by federal, state or municipal law. Furthermore, each Grantor will execute and deliver to the Collateral Agent such documents, agreements
and instruments, and will take such further actions (including, without limitation, the taking of necessary actions under the Federal Assignment of Claims Act of 1940, as amended (31 U.S.C. § 3727 et seq. and 41 U.S.C. § 15 et seq.)),
which the Collateral Agent may, from time to time, reasonably request (acting at the direction of the Instructing Group), to ensure perfection and priority of the Liens hereunder in respect of Accounts and General Intangibles owing by any government
or instrumentality or agency thereof, all at the expense of the Issuer. 
 5.10 No Interference. Each Grantor agrees that it will not
interfere with any right, power and remedy of the Collateral Agent provided for in this Agreement or now or hereafter existing at law or in equity or by statute or otherwise, or the exercise or beginning of the exercise by the Collateral Agent of
any one or more of such rights, powers or remedies in accordance with this Agreement. 

  
 17 

 5.11 Insurance. 

5.11.1 Each Grantor agrees that on the Issue Date, it shall have delivered to the Collateral Agent certificates of an insurance broker with
respect to all liability, property and casualty insurance policies required pursuant to Section 5.13 of the Indenture. 
 5.11.2 Each
Grantor agrees that within 90 days of the Issue Date, or within 30 days of procuring any new or replacement policy of insurance, it shall (i) cause all liability, property and casualty insurance policies required pursuant to Section 5.13
of the Indenture to be endorsed or otherwise amended to include a “standard” or “New York” additional insured or lender’s loss payable endorsements, as applicable, in form and substance as necessary to adequately protect the
interests of the Secured Parties and (ii) use commercially reasonable efforts to cause each such policy covered by this Section 5.11.2 to provide that it shall not be cancelled or not renewed upon less than 30
days’ prior written notice thereof by the insurer to the Collateral Agent (provided that with respect to any successor or assign of the Collateral Agent, such insurer shall only be required to provide such written notice to the extent it has
been provided with such successor or assign’s notice information). Each Grantor further agrees that it shall deliver to the Collateral Agent, prior to or concurrently with the cancellation or nonrenewal of any such policy of insurance covered
by this Section 5.11.2, a copy of a renewal or replacement policy (or other evidence of renewal of a policy previously delivered to the Collateral Agent), or insurance certificate with respect thereto, together with
evidence delivered to the Issuer and the Collateral Agent in writing of payment of the premium therefor, in each case of the foregoing, to the extent customarily maintained, purchased or provided to, or at the request of, lenders by similarly
situated companies in connection with similar credit or notes facilities. 
 5.11.3 50 South Sixth Street, Suite 1290Minneapolis, MN 55402

 5.11.4 In connection with the covenants set forth in this Section 5.11, it is understood and agreed that: 

(i) the Secured Parties and their respective agents or employees shall not be liable for any loss or damage insured by the
insurance policies required to be maintained under this Section 5.11, it being understood that (A) the Issuer and each Guarantor shall look solely to their insurance companies or any other parties other than the
aforesaid parties for the recovery of such loss or damage and (B) such insurance companies shall have no rights of subrogation against the Secured Parties or their agents or employees. If, however, the insurance policies, as a matter of the
internal policy of such insurer, do not provide waiver of subrogation rights against such parties, as required above, then the Issuer, on behalf of itself and behalf of each of its Subsidiaries, hereby agrees, to the extent permitted by law, to
waive, and further agrees to cause each of their Subsidiaries to waive, its right of recovery, if any, against the Secured Parties and their agents and employees; 

(ii) the designation of any form, type or amount of insurance coverage by the Collateral Agent (including acting in the
capacity as the Collateral Agent) under this Section 5.11 shall in no event be deemed a representation, warranty or advice by the 

  
 18 

 
Secured Parties that such insurance is adequate for the purposes of the business of the Issuer and the Subsidiaries or the protection of their properties; and 

(iii) the amount and type of insurance that the Issuer and the Subsidiaries has in effect as of the Issue Date satisfies for
all purposes the requirements of this Section 5.11 and Section 5.13 of the Indenture. 
 5.12 Intellectual
Property. 
 5.12.1 If, after the Issue Date, any Subsidiary becomes a Grantor hereunder or any Grantor obtains rights to, including,
but not limited to, filing and acceptance of a statement of use or an amendment to allege use with the United States Patent and Trademark Office, or applies for or seeks registration of, any Patent, Trademark, Copyright or Exclusive Copyright
License in addition to the Patents, Trademarks, Copyrights and Exclusive Copyright Licenses described in Schedules 12(a) and 12(b) of the Perfection Certificate, which are all of such Grantor’s Patents,
Trademarks, Copyrights and Exclusive Copyright Licenses as of the Issue Date, then such Grantor shall give the Collateral Agent prompt written notice thereof. Each Grantor agrees to promptly on the Issue Date (or such later date as agreed by the
Instructing Group) and promptly following any notice delivered pursuant to the immediately preceding sentence, to execute and deliver to the Collateral Agent an intellectual property security agreement substantially in the form of
Exhibit C hereto (each, a “Short-form Intellectual Property Security Agreement”) or any other document necessary, in each case to evidence the security interest in, to and on such Grantor’s Patents,
Trademarks, Copyrights and Exclusive Copyright Licenses in a form appropriate for recording in the applicable office. Each Grantor also hereby authorizes the Collateral Agent to modify this Agreement unilaterally (i) by amending Schedules
12(a) and 12(b) of the Perfection Certificate to include any future Patents, Trademarks, Copyrights and/or Exclusive Copyright Licenses of which the Collateral Agent receives notification from such Grantor pursuant hereto and (ii) by
recording, in addition to and not in substitution for this Agreement, a Short-form Intellectual Property Security Agreement containing the information on Schedules 12(a) and 12(b) of the Perfection Certificate including a description
of such future Patents, Trademarks, Copyrights and/or Exclusive Copyright Licenses in the applicable office. Notwithstanding the grant of authority to the Collateral Agent under this Section 5.12.1, each Grantor agrees to
modify or cause the modification of this Agreement (i) by amending Schedules 12(a) and 12(b) of the Perfection Certificate as described above and (ii) by recording, in addition to and not in substitution for this Agreement, a
Short-form Intellectual Property Security Agreement as described above executed and delivered by such Grantor pursuant hereto in the applicable office. 

5.12.2 As of the Issue Date, no Grantor has any interest in, or title to, any Copyrights, Patents, Trademarks or Exclusive Copyright Licenses
except as set forth in Schedules 12(a) and 12(b) of the Perfection Certificate. This Agreement is effective to create a valid and continuing Lien on such Copyrights, Patents, Trademarks and Exclusive Copyright Licenses and, upon filing
of intellectual property security agreements substantially in the same form as the Short-form Intellectual Property Security Agreement with the United States Copyright Office and the United States Patent and Trademark Office and comparable offices
in foreign jurisdictions, and the filing of appropriate financing statements in the jurisdictions listed in Schedule 6 of the Perfection Certificate hereto, all action necessary or desirable to protect and perfect the security

  
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interest in, to and on each Grantor’s Patents, Trademarks, Copyrights and Exclusive Copyright Licenses has been taken and such perfected security interest is enforceable as such as against
any and all creditors of and purchasers from any Grantor. 
 5.13 Commercial Tort Claims. If, after the Issue Date, any Grantor
identifies the existence of a Commercial Tort Claim belonging to such Grantor that has arisen in the course of such Grantor’s business (with a value, individually, of $250,000 or more) in addition to the Commercial Tort Claims described in
Schedule 13 of the Perfection Certificate, then such Grantor shall give the Collateral Agent prompt written notice thereof and promptly execute and deliver to the Collateral Agent any supplement to this Agreement or any other document
necessary to evidence and perfect the grant of a security interest therein in favor of the Collateral Agent. 
 5.14 Landlord/Bailee
Agreements. Upon the request of the Collateral Agent (acting at the direction of the Instructing Group) during the existence of an Event of Default, each Grantor shall make commercially reasonable efforts to obtain a Landlord/Bailee Agreement,
from the lessor of each leased property or bailee or consignee with respect to any warehouse or other location where Collateral with a value in excess of $250,000 is stored or located, which agreement or letter shall provide access rights, contain a
waiver or subordination of all Liens or claims that the landlord, bailee or consignee may assert against the Collateral at that location, and shall otherwise be reasonably satisfactory in form and substance to the Collateral Agent (acting at the
direction of the Instructing Group) (it being understood that any such agreement purporting to impose individual liability on the Collateral Agent shall not be satisfactory to the Collateral Agent). 

5.15 Updating of Perfection Certificate. Promptly following the Collateral Agent’s request (acting at the direction of the
Instructing Group) made during the existence of an Event of Default, the Grantors will provide to the Collateral Agent (with a copy to the Trustee), an updated Perfection Certificate (or, to the extent such request relates to specified information
contained in the Perfection Certificate, such information) (provided that if there have been no changes to any Schedules of the Perfection Certificate since the previous updating thereof required hereby, the Grantors shall indicate that there
has been “no change” to the applicable schedule(s)) reflecting all changes since the date of the information most recently received pursuant to this Section 5.15 together with redline comparisons of all
such schedules contained in such updated Perfection Certificate marked against the last Perfection Certificate delivered pursuant to this Section 5.15. Notwithstanding anything to the contrary contained in this Agreement,
to the extent a representation and warranty contained in Article IV or a covenant contained in this Article V relates or is subject to the Perfection Certificate, such covenant shall be deemed
applicable as of the most recent date that is the later of (i) the Issue Date or (ii) the date upon which the Grantors have delivered the updated Perfection Certificate as described above. 

ARTICLE VI 
 EVENT OF DEFAULT

 6.1 Remedies. Upon the occurrence and during the continuance of an Event of Default, the Collateral Agent may (but shall have no
obligation to), subject to compliance with applicable Cemetery Laws, exercise any or all of the following rights and remedies: 

  
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 (i) Those rights and remedies provided in this Agreement, the Indenture, any
other Indenture Document or any Other Second Priority Document; provided that this clause (i) shall not be understood to limit any rights or remedies available to the Collateral Agent and the Secured Parties prior to an Event of Default.

 (ii) Those rights and remedies available to a secured party under the UCC or under any other applicable law (including,
without limitation, any law governing the exercise of a bank’s right of setoff or bankers’ lien) when a debtor is in default under a security agreement. 

(iii) Give notice of sole control or any other instruction under any Control Agreement and take any action therein with respect
to the Collateral covered thereby. 
 (iv) Without notice (except as specifically provided in
Section 9.1) enter the premises of any Grantor where any Collateral is located (through self-help and without judicial process) to collect, receive, assemble, process, appropriate, sell, lease, assign, grant an option or
options to purchase or otherwise dispose of, deliver, or realize upon, the Collateral or any part thereof in one or more parcels at public or private sale or sales (which sales may be adjourned or continued from time to time with or without notice
and may take place at any Grantor’s premises or elsewhere), for cash, on credit or for future delivery without assumption of any credit risk, and upon such other terms as the Collateral Agent may deem commercially reasonable. 

(v) Concurrently with written notice to the applicable Grantor, transfer and register in its name or in the name of its nominee
the whole or any part of the Pledged Collateral, to exchange certificates or instruments representing or evidencing Pledged Collateral for certificates or instruments of smaller or larger denominations, to exercise the voting and all other rights as
a holder with respect thereto, to collect and receive all cash dividends, interest, principal and other distributions made thereon and to otherwise act with respect to the Pledged Collateral as though the Collateral Agent was the outright owner
thereof. 
 6.1.1 The Collateral Agent, on behalf of the Secured Parties, may comply with any applicable state or federal law requirements
in connection with a disposition of the Collateral, and such compliance will not be considered to adversely affect the commercial reasonableness of any sale of the Collateral. 

6.1.2 The Collateral Agent shall have the right (but shall have no obligation) upon any such public sale or sales and, to the extent permitted
by law, upon any such private sale or sales, to purchase for the benefit of the Secured Parties, the whole or any part of the Collateral so sold, free of any right of equity redemption, which equity redemption each Grantor hereby expressly releases.

 6.1.3 Until the Collateral Agent is able to effect a sale, lease, or other disposition of Collateral, the Collateral Agent shall have the
right (but shall have no obligation) to hold or use Collateral, or any part thereof, to the extent that it deems appropriate for the purpose of preserving 

  
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Collateral or its value or for any other purpose deemed appropriate by the Collateral Agent. The Collateral Agent may, if it so elects, seek the appointment of a receiver or keeper to take
possession of Collateral and to enforce any of the Collateral Agent’s remedies (for the benefit of the Secured Parties), with respect to such appointment without prior notice or hearing as to such appointment. 

6.1.4 Reserved. 
 6.1.5
Notwithstanding the foregoing, neither the Collateral Agent nor any other Secured Party shall be required to (i) make any demand upon, or pursue or exhaust any of their rights or remedies against, any Grantor, any other obligor, any guarantor,
pledgor or any other person with respect to the payment of the Secured Obligations or to pursue or exhaust any of their rights or remedies with respect to any Collateral therefor or any direct or indirect guarantee thereof, (ii) marshal the
Collateral or any guarantee of the Secured Obligations or to resort to the Collateral or any such guarantee in any particular order, or (iii) effect a public sale of any Collateral. 

6.1.6 Each Grantor recognizes that the Collateral Agent may be unable to effect a public sale of any or all the Collateral and may be
compelled to resort to one or more private sales thereof in accordance with Section 6.1.1. Each Grantor also acknowledges that any private sale may result in prices and other terms less favorable to the seller than if such
sale were a public sale and, notwithstanding such circumstances, agrees that any such private sale shall not be deemed to have been made in a commercially unreasonable manner solely by virtue of such sale being private. The Collateral Agent shall be
under no obligation to delay a sale of any of the Pledged Collateral for the period of time necessary to permit any Grantor or the issuer of the Pledged Collateral to register such securities for public sale under the Securities Act, or under
applicable state securities laws, even if the applicable Grantor and the issuer would agree to do so. 
 6.2 Grantors’
Obligations Upon an Event of Default. Upon the request of the Collateral Agent after the occurrence and during the continuation of an Event of Default (it being understood that the Collateral Agent shall have no obligation to make
such request), subject to compliance with applicable Cemetery Laws, each Grantor will: 
 (i) assemble and make available to
the Collateral Agent the Collateral and all books and records relating thereto at any place or places specified by the Collateral Agent; 

(ii) permit the Collateral Agent, by the Collateral Agent’s representatives and agents, to enter, occupy and use any
premises where all or any part of the Collateral, or the books and records relating thereto, or both, are located, to take possession of all or any part of the Collateral, or the books and records relating thereto, or both, to remove all or any part
of the Collateral, or the books and records relating thereto, or both, and to conduct sales of the Collateral, without any obligation to pay the Grantor for such use and occupancy; and 

(iii) take, or cause an issuer of Pledged Collateral to take, any and all actions necessary to qualify the Collateral to enable
the Collateral Agent to consummate a public sale or other disposition of the Collateral. 

  
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 6.3 License. Subject to compliance with applicable Cemetery Laws, the Collateral
Agent is hereby granted a license or other right to use, following the occurrence and during the continuance of an Event of Default, without charge, each Grantor’s labels, Patents, Copyrights, rights of use of any name, trade secrets, trade
names, Trademarks, service marks, customer lists and advertising matter, or any other Intellectual Property, as it pertains to the Collateral, in completing production of, advertising for sale, and selling any Collateral, and, following the
occurrence and during the continuance of an Event of Default, such Grantor’s rights under all licenses and all franchise agreements shall inure to the Collateral Agent’s benefit, subject to any restrictions set forth therein. In addition,
subject to compliance with applicable Cemetery Laws, each Grantor hereby irrevocably agrees that the Collateral Agent may (but shall have no obligation to), following the occurrence and during the continuance of an Event of Default, sell any of such
Grantor’s Inventory directly to any person, including, without limitation, persons who have previously purchased such Grantor’s Inventory from such Grantor and in connection with any such sale or other enforcement of the Collateral
Agent’s rights under this Agreement, may (but shall have no obligation to) sell Inventory which bears any Trademark owned by or licensed to such Grantor and any Inventory that is covered by any Copyright owned by or licensed to such Grantor and
the Collateral Agent may (but shall have no obligation to) finish any work in process and affix any Trademark owned by or licensed to such Grantor and sell such Inventory as provided herein. 

ARTICLE VII 
 WAIVERS,
AMENDMENTS AND REMEDIES 
 No delay or omission of the Collateral Agent or any Secured Party to exercise any right, power or remedy granted
under this Agreement shall impair such right, power or remedy or be construed to be a waiver of any Event of Default or an acquiescence therein, and any single or partial exercise of any such right, power or remedy shall not preclude any other or
further exercise thereof or the exercise of any other right, power or remedy. No waiver, amendment or other variation of the terms, conditions or provisions of this Agreement whatsoever shall be valid unless in writing signed by the Collateral Agent
and each Grantor, and then only to the extent in such writing specifically set forth; provided that, the addition of any Subsidiary as a Grantor hereunder by execution of a Supplement shall not require receipt of any consent from or execution
of any documentation by any other Grantor party hereto. All rights, powers and remedies contained in this Agreement or by law afforded shall be cumulative and all shall be available to the Collateral Agent and the Secured Parties until the Secured
Obligations have been Paid in Full. 
 ARTICLE VIII 

PROCEEDS; COLLECTION OF RECEIVABLES 

8.1 Lockboxes. Upon request of the Collateral Agent (acting at the direction of the Instructing Group) after the occurrence and during
the continuation of an Event of Default, subject to compliance with applicable Cemetery Laws, each Grantor shall execute and deliver to the Collateral Agent an irrevocable lockbox agreement sufficient to grant the Collateral Agent Control over the
applicable lockbox in the form provided by or otherwise acceptable to the Collateral Agent (it being understood that any such agreement purporting to impose individual liability on the 

  
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Collateral Agent shall not be acceptable to the Collateral Agent), which agreement shall be accompanied by an acknowledgment by the bank where the lockbox is located of the Lien of the Collateral
Agent granted hereunder, of the bank’s agreement to comply with instructions from the Collateral Agent from time to time regarding the lockbox, without further consent by such Grantor, and of irrevocable instructions to wire all amounts
collected therein to a special collateral account at or otherwise under the Control of the Collateral Agent. 
 8.2 Collection of
Receivables. The Collateral Agent may (but shall have no obligation to) at any time after the occurrence and during the continuation of an Event of Default, by giving each Grantor written notice, elect to require that the Receivables be paid
directly to the Collateral Agent for the benefit of the Secured Parties. In such event, each Grantor shall, and shall permit the Collateral Agent to, promptly notify the account debtors or obligors under the Receivables owned by such Grantor of the
Collateral Agent’s interest therein and direct such account debtors or obligors to make payment of all amounts then or thereafter due under such Receivables directly to the Collateral Agent. Upon receipt of any such notice from the Collateral
Agent, each Grantor shall thereafter hold in trust for the Collateral Agent, on behalf of the Secured Parties, all amounts and proceeds received by it with respect to the Receivables and other Collateral and immediately and at all times thereafter
deliver to the Collateral Agent all such amounts and proceeds in the same form as so received, whether by cash, check, draft or otherwise, with any necessary endorsements. The Collateral Agent shall hold and apply funds so received as provided by
the terms of Section 8.3 and Section 8.4. 
 8.3 Special Collateral Account. Upon
request of the Collateral Agent after the occurrence and during the continuation of an Event of Default, the Collateral Agent may (but shall have no obligation to) require all cash proceeds of the Collateral to be deposited in a special non-interest bearing cash collateral account with or otherwise under the Control of the Collateral Agent and held there as security for the Secured Obligations. No Grantor shall have any control whatsoever over such
cash collateral account. If any Event of Default has occurred and is continuing, the Collateral Agent may (but shall have no obligation to) (and shall, at the direction of the Instructing Group), from time to time, distribute the collected balances
in such cash collateral in accordance with Section 8.4 hereof whether or not the Secured Obligations shall then be due. 
 8.4
Application of Proceeds. If no Other Second Priority Obligations are outstanding, the proceeds of the Collateral collected by the Collateral Agent shall be distributed to the Trustee for further distribution in accordance with
Section 7.10 of the Indenture. If any Other Second Priority Obligations are outstanding, the proceeds of the Collateral shall be distributed by the Collateral Agent, after payment of fees, indemnities or expense reimbursements to (including
reasonable attorneys’ fees and expenses) then due and owing to the Collateral Agent pursuant to the provisions of the Indenture Documents and the Other Second Priority Documents, then (x) in the case of the Indenture Obligations, to the
Trustee and (y) in the case of the Other Second Priority Obligations, if any, to the agent or representative for the holders of such obligations (each such agent or representative, the “Other Second Priority Representative”),
for application as payment of the Secured Obligations as follows: 

  
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 (i) first, an amount equal to the outstanding Secured Obligations
shall be paid to the Trustee and each Other Second Priority Representative, if any, as provided in Section 8.4.2 and 8.4.3 hereof, with each of the Trustee and each Other Second Priority Representative receiving an
amount equal to, (x) in the case of the Trustee, the Secured Obligations constituting Indenture Obligations for application by the Trustee in accordance with Section 7.10 (unless already paid in accordance with this
Section 8.4.2) of the Indenture and (y) in the case of each Other Second Priority Representative, the Secured Obligations constituting the Other Second Priority Obligations for which such Other Second Priority
Representative is a representative for application by such Other Second Priority Representative in accordance with the Other Second Priority Documents, or, if the proceeds are insufficient to pay in full all such Secured Obligations, the Pro Rata
Share (as defined below) of the amount remaining to be distributed; and 
 (ii) second, to the extent proceeds remain
after the application pursuant to the preceding clause (i), to the Grantors or to whomever may be lawfully entitled to receive such surplus. 

8.4.2 For purposes of this Agreement, “Pro Rata Share” shall mean, when calculating a portion of any distribution or amount
to be distributed to the Trustee and each Other Second Priority Representative, that amount (expressed as a percentage) equal to a fraction the numerator of which is the then unpaid amount of (x) in the case of the Trustee, Indenture
Obligations constituting Secured Obligations and (y) in the case of each Other Second Priority Representative, the Other Second Priority Obligations for which such Other Second Priority Representative is a representative constituting Secured
Obligations, and the denominator of which is the then outstanding amount of all Secured Obligations. 
 8.4.3 All payments required to be
made hereunder shall be made (x) to the Trustee for the account of the Holders, and (y) to each Other Second Priority Representative for the account of the holders of the Other Second Priority Obligations for which such Other Second
Priority Representative is a representative. 
 8.4.4 For purposes of applying payments received in accordance with this Section 8.4,
the Collateral Agent shall be entitled to rely upon (i) the Trustee, and (ii) each Other Second Priority Representative for a determination (which the Trustee and such Other Second Priority Representative agree (or shall agree) to provide)
of the outstanding Secured Obligations owed to the Holders or holders of the Other Second Priority Obligations, as the case may be. 
 8.4.5
It is understood that the Grantors shall remain jointly and severally liable to the extent of any deficiency between the amount of the proceeds of the Collateral and the aggregate amount of the Secured Obligations. 

8.5 Cemetery Laws. Notwithstanding anything to the contrary contained in this Article VIII, the Collateral
Agent’s rights under this Article VIII shall be subject to compliance with applicable Cemetery Laws, including requirements pertaining to the placement of proceeds of any Grantor’s Receivables into Trust Accounts
or the use of Perpetual Care Trust distributions. 

  
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 ARTICLE IX 

GENERAL PROVISIONS 
 9.1 Notice
of Disposition of Collateral; Condition of Collateral. To the fullest extent permitted under applicable law, each Grantor hereby waives notice of the time and place of any public sale or the time after which any private sale or other disposition
of all or any part of the Collateral may be made. To the extent such notice may not be waived under applicable law, any notice made shall be deemed reasonable if sent to the Issuer, addressed as set forth in Section 10.1
hereof, at least ten (10) days prior to (i) the date of any such public sale or (ii) the time after which any such private sale or other disposition may be made. The Collateral Agent shall have no obligation to clean-up or otherwise prepare the Collateral for sale. To the maximum extent permitted by applicable law, each Grantor waives all claims, damages, and demands against the Collateral Agent or any other Secured Party
arising out of the repossession, retention or sale of the Collateral, except such as arise solely out of the gross negligence or willful misconduct of the Collateral Agent or such other Secured Party as finally determined by a court of competent
jurisdiction. To the extent it may lawfully do so, each Grantor absolutely and irrevocably waives and relinquishes the benefit and advantage of, and covenants not to assert against the Collateral Agent or any other Secured Party, any valuation,
stay, appraisal, extension, moratorium, redemption or similar laws and any and all rights or defenses it may have as a surety now or hereafter existing which, but for this provision, might be applicable to the sale of any Collateral made under the
judgment, order or decree of any court, or privately under the power of sale conferred by this Agreement, or otherwise. Except as otherwise specifically provided herein, each Grantor hereby waives presentment, demand, protest or any notice (to the
maximum extent permitted by applicable law) of any kind in connection with this Agreement or any Collateral. 
 9.2 Limitation on
Collateral Agent’s and other Secured Parties’ Duty with Respect to the Collateral. The Collateral Agent shall have no obligation to clean-up or otherwise prepare the
Collateral for sale. The Collateral Agent and each other Secured Party shall use reasonable care with respect to the Collateral in its possession or under its control. Neither the Collateral Agent nor any other Secured Party shall have any other
duty, responsibility or obligation as to any Collateral in its possession or control or in the possession or control of any agent or nominee of the Collateral Agent or such other Secured Party, or any income thereon or as to the preservation of
rights against prior parties or any other rights pertaining thereto. To the extent that applicable law imposes duties on the Collateral Agent to exercise remedies in a commercially reasonable manner, each Grantor acknowledges and agrees that,
subject to compliance with applicable Cemetery Laws, it is commercially reasonable for the Collateral Agent (i) to fail to incur fees and expenses deemed significant by the Collateral Agent to prepare Collateral for disposition or otherwise to
transform raw material or work in process into finished goods or other finished products for disposition, (ii) to fail to obtain third party consents for access to Collateral to be disposed of, or to obtain or, if not required by other law, to
fail to obtain governmental or third party consents for the collection or disposition of Collateral to be collected or disposed of, (iii) to fail to exercise collection remedies against account debtors or other persons obligated on Collateral
or to remove Liens on or any adverse claims against Collateral, (iv) to exercise collection remedies against account debtors and other persons obligated on Collateral directly or through the use of collection agencies and other collection
specialists, (v) to advertise dispositions of Collateral 

  
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through publications or media of general circulation, whether or not the Collateral is of a specialized nature, (vi) to contact other persons, whether or not in the same business as such
Grantor, for expressions of interest in acquiring all or any portion of such Collateral, (vii) to hire one or more professional auctioneers to assist in the disposition of Collateral, whether or not the Collateral is of a specialized nature,
(viii) to dispose of Collateral by utilizing internet sites that provide for the auction of assets of the types included in the Collateral or that have the reasonable capacity of doing so, or that match buyers and sellers of assets,
(ix) to dispose of assets in wholesale rather than retail markets, (x) to disclaim disposition warranties, such as title, possession or quiet enjoyment, (xi) to purchase insurance or credit enhancements to insure the Collateral Agent
against risks of loss, collection or disposition of Collateral or to provide to the Collateral Agent a guaranteed return from the collection or disposition of Collateral, or (xii) to the extent deemed appropriate by the Collateral Agent, to
obtain the services of other brokers, investment bankers, consultants and other professionals to assist the Collateral Agent in the collection or disposition of any of the Collateral. Each Grantor acknowledges that the purpose of this
Section 9.2 is to provide non-exhaustive indications of what actions or omissions by the Collateral Agent would be commercially reasonable in the Collateral Agent’s exercise of
remedies against the Collateral and that other actions or omissions by the Collateral Agent shall not, subject to compliance with applicable Cemetery Laws, be deemed commercially unreasonable solely on account of not being indicated in this
Section 9.2. Without limitation upon the foregoing, nothing contained in this Section 9.2 shall be construed to grant any rights to any Grantor or to impose any duties, responsibility or obligation
on the Collateral Agent that would not have been granted or imposed by this Agreement or by applicable law in the absence of this Section 9.2. 

9.3 Compromises and Collection of Collateral. Each Grantor and the Collateral Agent recognize that setoffs, counterclaims, defenses and
other claims may be asserted by obligors with respect to certain of the Receivables, that certain of the Receivables may be or become uncollectible in whole or in part and that the expense and probability of success in litigating a disputed
Receivable may exceed the amount that reasonably may be expected to be recovered with respect to a Receivable. In view of the foregoing, each Grantor agrees that the Collateral Agent may (but shall have no obligation to), at any time and from time
to time, if an Event of Default has occurred and is continuing, compromise with the obligor on any Receivable, accept in full payment of any Receivable such amount as the Collateral Agent in its sole discretion shall determine or abandon any
Receivable, and any such action by the Collateral Agent shall be commercially reasonable so long as the Collateral Agent acts in good faith based on information known to it at the time it takes any such action. 

9.4 Collateral Agent Performance of Grantor’s Obligations. Without having any obligation to do so, during the
existence of an Event of Default, the Collateral Agent may perform or pay any obligation which any Grantor has agreed to perform or pay in this Agreement and such Grantor shall promptly reimburse the Collateral Agent for any reasonable amounts paid
by the Collateral Agent pursuant to this Section 9.4. Each Grantor’s obligation to reimburse the Collateral Agent pursuant to the preceding sentence shall be a Secured Obligation payable on demand. 

9.5 Authorization for Collateral Agent to Take Certain Action. Each Grantor irrevocably authorizes the Collateral Agent at any time and
from time to time in the sole discretion of the Collateral Agent to file financing statements or amendments necessary or desirable and that 

  
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describe the Collateral in any manner (including, without limitation, as “all assets of the Debtor, whether now owned or hereafter acquired” or words of similar effect or with greater
detail) as the Collateral Agent may determine in the Collateral Agent’s sole discretion to perfect and to maintain the perfection and priority of the Collateral Agent’s security interest in the Collateral. Each Grantor further irrevocably
authorizes the Collateral Agent at any time and from time to time (but, in the case of clauses (ii), (iv), (v) and (vii), solely during the existence of an Event of Default) in the sole discretion of the Collateral Agent and appoints the Collateral
Agent as its attorney in fact (i) to file financing statements necessary or desirable in the Collateral Agent’s sole discretion to perfect and to maintain the perfection and priority of the Collateral Agent’s security interest in the
Collateral, (ii) to indorse and collect any cash proceeds of the Collateral, (iii) to file any financing statement with respect to the Collateral and to file any other financing statement or amendment of a financing statement (which does
not add new collateral or add a debtor) in such offices as the Collateral Agent in its sole discretion deems necessary or desirable to perfect and to maintain the perfection and priority of the Collateral Agent’s security interest in the
Collateral, (iv) to contact and enter into one or more agreements with the issuers of uncertificated securities which are Collateral owned by such Grantor and which are Securities or with financial intermediaries holding other Investment
Property as may be necessary or advisable to give the Collateral Agent Control over such Securities or other Investment Property, (v) subject to the terms of Section 5.1.5 and subject to compliance with applicable
Cemetery Laws, to enforce payment of the Instruments, Accounts and Receivables in the name of the Collateral Agent or such Grantor, (vi) to distribute the proceeds of any Collateral received by the Collateral Agent to the Trustee to apply as
payment for the Secured Obligations as provided in Article VIII, and (vii) to discharge past due taxes, assessments, charges, fees or Liens on the Collateral (except for Permitted Liens), and each Grantor agrees to
reimburse the Collateral Agent on demand for any reasonable payment made or any reasonable fee or expense incurred by the Collateral Agent in connection therewith; provided that the authorization and power granted to the Collateral Agent
under this Section 9.5 or any other provision of any Indenture Document or Other Second Priority Document shall not relieve any Grantor of any of its obligations under this Agreement, the Indenture, any other Indenture
Document or any Other Second Priority Document and shall not impose any duty on the Collateral Agent to take any of the foregoing actions. For the avoidance of doubt, each Grantor agrees to file or cause the filing of financing statements and
amendments thereto and any other document or instrument necessary to perfect or maintain the perfection of the Collateral Agent’s first priority security interest (subject, as to priority, to the First Priority Exceptions) in the
Collateral of each Grantor in the appropriate filing offices. 
 9.6 Specific Performance of Certain Covenants. Each Grantor
acknowledges and agrees that a breach of any of the covenants contained in Sections 5.1.5, 5.1.6, 5.4, 6.2 or 9.8 or in Article VIII hereof will cause irreparable injury
to the Collateral Agent and the Secured Parties, that the Collateral Agent and Secured Parties have no adequate remedy at law in respect of such breaches and therefore agrees, without limiting the right of the Collateral Agent or the Secured Parties
to seek and obtain specific performance of other obligations of the Grantors contained in this Agreement, that the covenants of the Grantors contained in the Sections referred to in this Section 9.6 shall be specifically
enforceable against the Grantors. 
 9.7 Use and Possession of Certain Premises. Upon the occurrence and during the continuation of
an Event of Default, subject to compliance with applicable Cemetery Laws, the 

  
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Collateral Agent shall be entitled (but not obligated) to occupy and use any premises owned or leased by the Grantors where any of the Collateral or any records relating to the Collateral are
located until the Secured Obligations are paid or the Collateral is removed therefrom, whichever first occurs, without any obligation to pay any Grantor for such use and occupancy. 

9.8 Cemetery Laws. Notwithstanding anything to the contrary contained in this Agreement or the other Indenture Documents or any Other
Second Priority Documents, the Collateral Agent acknowledges and agrees that its rights and remedies (including the exercise of the same) with respect to the Collateral are subject to compliance with applicable Cemetery Laws and, among other things,
that the exercise of such rights and remedies may require the approval (including prior approval) of Governmental Authorities under applicable Cemetery Laws. 

9.9 Reinstatement. This Agreement shall remain in full force and effect and continue to be effective should any petition be filed by or
against any Grantor for liquidation or reorganization, should any Grantor become insolvent or make an assignment for the benefit of any creditor or creditors or should a receiver or trustee be appointed for all or any significant part of any
Grantor’s assets, and shall continue to be effective or be reinstated, as the case may be, if at any time payment and performance of the Secured Obligations, or any part thereof, is, pursuant to applicable law, rescinded or reduced in amount,
or must otherwise be restored or returned by any obligee of the Secured Obligations, whether as a “voidable preference,” “fraudulent conveyance,” or otherwise, all as though such payment or performance had not been made. In the
event that any payment, or any part thereof, is rescinded, reduced, restored or returned, the Secured Obligations shall be reinstated and deemed reduced only by such amount paid and not so rescinded, reduced, restored or returned. 

9.10 Benefit of Agreement. The terms and provisions of this Agreement shall be binding upon and inure to the benefit of the Grantors,
the Collateral Agent and the Secured Parties and their respective successors and assigns (including all persons who become bound as a debtor to this Agreement), except that the Grantors shall not have the right to assign their rights or delegate
their obligations under this Agreement or any interest herein, except in compliance with the Indenture. No assignments, transfers, exchanges or other dispositions of the Notes or any agreement governing the Secured Obligations or any portion thereof
or interest therein shall in any manner impair the Lien granted to the Collateral Agent, for the benefit of the Secured Parties, hereunder. 

9.11 Survival of Representations. All representations and warranties of the Grantors contained in this Agreement shall survive the
execution and delivery of this Agreement. 
 9.12 Expenses. The Grantors shall pay (i) all reasonable fees and reasonable and
documented out-of-pocket expenses incurred by the Collateral Agent, the Trustee and its Affiliates and the Instructing Group (including the reasonable fees, charges,
expenses and disbursements of counsel for the Collateral Agent and the Trustee and of counsel for the Instructing Group) in connection with the preparation, negotiation, execution, delivery and administration of this Agreement and the other
Indenture Documents and any Other Second Priority Documents or any amendments, modifications or waivers of the provisions hereof or thereof (whether or not the transactions contemplated hereby or thereby shall be consummated) and (ii) all out-of-pocket fees and expenses incurred by the Collateral Agent or any Secured Party (including the fees, charges, 

  
 29 

 
expenses and disbursements of any counsel for the Collateral Agent or any Secured Party) in connection with the enforcement or protection of its rights, powers or remedies (A) in connection
with this Agreement and any other Indenture Document or any Other Second Priority Document, including its rights under this Section 9.12, or (B) in connection with the Notes issued under the Indenture, including all
such fees and out-of-pocket expenses incurred during any workout, restructuring or negotiations in respect of the Indenture and the Notes. 

9.13 Headings. The title of and section headings in this Agreement are for convenience of reference only, and shall not govern the
interpretation of any of the terms and provisions of this Agreement. 
 9.14 Termination. This Agreement shall continue in effect
until the Payment in Full of all of the Secured Obligations. 
 9.15 Entire Agreement. This Agreement, the Indenture Documents and
the Other Second Priority Documents embody the entire agreement and understanding between the Grantors and the Collateral Agent relating to the Collateral and supersedes all prior agreements and understandings among the Grantors and the Collateral
Agent relating to the Collateral. 
 9.16 Governing Law; Jurisdiction; Waiver of Jury Trial. 

9.16.1 THIS AGREEMENT AND ANY CLAIMS, CONTROVERSY, DISPUTE OR CAUSES OF ACTION (WHETHER IN CONTRACT OR TORT OR OTHERWISE) BASED UPON, ARISING
OUT OF OR RELATING TO THIS AGREEMENT (OTHER THAN AS EXPRESSLY SET FORTH HEREIN) SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO ANY PRINCIPLE OF CONFLICTS OF LAW THAT COULD REQUIRE THE
APPLICATION OF ANY OTHER LAW. 
 9.16.2 Each Grantor irrevocably and unconditionally agrees that it will not commence any action, litigation
or proceeding of any kind or description, whether in law or equity, whether in contract or in tort or otherwise, against the Collateral Agent, any Secured Party, or any Affiliate of the foregoing in any way relating to this Agreement or the
transactions relating hereto, in any forum other than the courts of the State of New York sitting in New York County, and of the United States District Court of the Southern District of New York, and any appellate court from any thereof, each of the
parties hereto irrevocably and unconditionally submits to the jurisdiction of such courts, and agrees that all claims in respect of any such action, litigation or proceeding may be heard and determined in such New York State court or, to the fullest
extent permitted by applicable law, in such federal court. Each Grantor agrees that a final judgment in any such action, litigation or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other
manner provided by law. Nothing in this Agreement shall affect any right that the Collateral Agent or any Secured Party may otherwise have to bring any action or proceeding relating to this Agreement against any Grantor or its properties in the
courts of any jurisdiction. 
 9.16.3 Each Grantor hereby irrevocably and unconditionally waives, to the fullest extent it may legally and
effectively do so, any objection which it may now or hereafter have to 

  
 30 

 
the laying of venue of any suit, action or proceeding arising out of or relating to this Agreement in any New York State or federal court. Each Grantor hereby irrevocably waives, to the fullest
extent permitted by law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court. 
 9.16.4
Each party to this Agreement irrevocably consents to service of process in the manner provided for notices in Article X of this Agreement. Nothing in this Agreement will affect the right of any party to this Agreement to
serve process in any other manner permitted by law. 
 9.16.5 WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY OF THE OTHER INDENTURE DOCUMENTS (WHETHER BASED ON
CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO
ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER INDENTURE DOCUMENTS, AS APPLICABLE, BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND
CERTIFICATIONS IN THIS SECTION 9.16.5. 
 9.17 Indemnity. Each Grantor hereby agrees, jointly with the
other Grantors and severally, to indemnify and reimburse the Collateral Agent and the Secured Parties, and their respective successors, assigns, agents and employees in accordance with the terms of Section 13.11 of the Indenture applied
mutatis mutandis. 
 9.18 Subordination of Intercompany Indebtedness. Each Grantor agrees that any and all claims of such
Grantor against any other Grantor (each an “Obligor”) with respect to any Intercompany Indebtedness, any endorser, obligor or any other guarantor of all or any part of the Secured Obligations, or against any of its properties shall be
subordinate and subject in right of payment to the prior Payment in Full, of all Secured Obligations; provided that, and not in contravention of the foregoing, at all times prior to such Grantor’s receipt of written notice of the
Collateral Agent’s exercise of its rights under this Section 9.18 during the existence of an Event of Default, such Grantor may make loans to and receive payments in the ordinary course of business to or otherwise with
respect to such Intercompany Indebtedness from each such Obligor to the extent not prohibited by the terms of this Agreement, the other Indenture Documents and the Other Second Priority documents, if any. Notwithstanding any right of any Grantor to
ask, demand, sue for, take or receive any payment from any Obligor, all rights, liens and security interests of such Grantor, whether now or hereafter arising and howsoever existing, wheresoever located, in any assets of any other Obligor shall be
and are subordinated to the rights of the Secured Parties and the Collateral Agent in those assets. No Grantor shall have any right to possession of any such asset or to foreclose upon any such asset, whether by judicial action or otherwise, unless
and until this Agreement has terminated in accordance with Section 9.14. If all or any part of the 

  
 31 

 
assets of any Obligor, or the proceeds thereof, are subject to an Insolvency or Liquidation Proceeding, any payment or distribution of any kind or character, either in cash, securities or other
property, which shall be payable or deliverable upon or with respect to any indebtedness of any Obligor to any Grantor (“Intercompany Indebtedness”) shall be paid or delivered directly to the Collateral Agent for application on any of the
Secured Obligations, due or to become due, until such Secured Obligations shall have first been Paid in Full. Should any payment, distribution, security or instrument or proceeds thereof be received by the applicable Grantor upon or with respect to
the Intercompany Indebtedness after any Insolvency or Liquidation Proceeding and prior to the termination of this Agreement in accordance with Section 9.14, such Grantor shall receive and hold the same in trust for the
Collateral Agent for the benefit of the Secured Parties and shall forthwith deliver the same to the Collateral Agent, for the benefit of the Secured Parties, in precisely the form received (except for the endorsement or assignment of the Grantor
where necessary), for application to any of the Secured Obligations, due or not due, and, until so delivered, the same shall be held in trust by the Grantor as the property of the Collateral Agent for the benefit of the Secured Parties. If any such
Grantor fails to make any such endorsement or assignment to the Collateral Agent, the Collateral Agent or any of its officers or employees is irrevocably authorized to make the same. Each Grantor agrees that until the termination of this Agreement
in accordance with Section 9.14, except as permitted under any Indenture Document and any Other Second Priority Document, no Grantor will assign or transfer to any person (other than the Collateral Agent or another Grantor)
any claim any such Grantor has or may have against any Obligor. 
 9.19 Severability. Any provision in this Agreement that is held to
be inoperative, unenforceable, or invalid in any jurisdiction shall, as to that jurisdiction, be inoperative, unenforceable, or invalid without affecting the remaining provisions in that jurisdiction or the operation, enforceability, or validity of
that provision in any other jurisdiction, and to this end the provisions of this Agreement are declared to be severable. 
 9.20
Counterparts. This Agreement may be executed in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract.
Delivery of an executed counterpart of a signature page of this Agreement by telecopy or other electronic means shall be effective as delivery of a manually executed counterpart of this Agreement. 

9.21 Additional Grantors. Upon execution and delivery, by any Subsidiary that is required or permitted to become a party hereto by
Section 5.16 of the Indenture or any Other Second Priority Document of (a) a written supplement substantially in the form of Exhibit B hereto and (b) a joinder to the Intercompany Note, in each case
reasonably satisfactory to the Collateral Agent and the Issuer, such Subsidiary shall become a Grantor hereunder with the same force and effect as if originally named as a Grantor herein. The execution and delivery of any such instrument shall not
require the consent of any other party to this Agreement. The rights and obligations of each party to this Agreement shall remain in full force and effect notwithstanding the addition of any new party to this Agreement. 

9.22 Other Second Priority Obligations. If the Issuer or any Guarantor incurs any Other Second Priority Obligations, the Other Second
Priority Representative of the holders of such Other 

  
 32 

 
Second Priority Obligations, shall enter into an Accession Agreement, and thereafter the relationship between the Holders of the Notes and holders of the Other Second Priority Obligations will be
governed by this Agreement. 
 9.22.1 Each of the Holders of the Notes and each of the holders of the Other Second Priority Obligations
agree that: 
 (i) notwithstanding the date, time, method, manner or order of grant, attachment or perfection of any Liens on
the Collateral securing the Indenture Obligations and the Other Second Priority Obligations, the Liens securing all such obligations shall be of equal priority; and 

(ii) the Indenture Obligations and the Other Second Priority Obligations may be increased, extended, renewed, replaced,
restated, supplemented, restructured, refunded, refinanced or otherwise amended from time to time, in each case, to the extent permitted by the Intercreditor Agreement, if any, the Indenture and the Other Second Priority Documents. 

9.22.2 The Collateral Agent shall act in relation to the Collateral in accordance with the instructions of the majority in aggregate principal
amount of the then outstanding Indenture Obligations until the Discharge of Indenture Obligations and thereafter, the majority in aggregate amount of the then outstanding Other Second Priority Obligations, if any (the “Instructing
Group”); provided, however, any Notes held by the Issuer or an Affiliate of the Issuer and any Other Second Priority Obligations held by the Issuer or an Affiliate of the Issuer shall be deemed not to be outstanding for
purposes of the Instructing Group, except that in determining whether the Collateral Agent shall be protected in relying upon such direction, only those Notes and Other Second Priority Obligations that a Responsible Officer of the Collateral Agent
actually knows to be so owned shall be so disregarded. If the Collateral Agent shall not have received appropriate instruction within 10 days prior to a request therefor from the Instructing Group (or such shorter period as may be reasonably
requested) it may, but shall be under no duty, to take or refrain from taking such action as it shall determine in good faith; provided, that the Collateral Agent shall have no liability for such action or inaction. 

9.22.3 As between the Holders of the Notes and the holders of Other Second Priority Obligations, only the Instructing Group shall have the
right to direct the Collateral Agent in conducting foreclosures and in taking other actions with respect to the Collateral, and the authorized representatives of other Indebtedness have no right to take actions with respect to the Collateral. The
Instructing Group shall have the sole right to instruct the Collateral Agent to act or refrain from acting with respect to the Collateral, and the Collateral Agent shall not follow any instructions with respect to such Collateral from any other
Person. No authorized representative of any Indebtedness (other than the Instructing Group) will instruct the Collateral Agent to commence any judicial or non-judicial foreclosure proceedings with respect to,
seek to have a trustee, receiver, liquidator or similar official appointed for or over, attempt any action to take possession of, exercise any right, remedy or power with respect to, or otherwise take any action to enforce its interests in or
realize upon, or take any other action available to it in respect of, the Collateral. 

  
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 9.23 Releases of Collateral. Until the Discharge of Indenture Obligations, the
Collateral Agent shall release and/or subordinate the Liens on the Collateral securing the Secured Obligations only as provided in Section 13.03 of the Indenture, and, after the Discharge of Indenture Obligations, the Collateral Agent shall
release and/or subordinate the Liens on the Collateral securing the Secured Obligations only as provided in the Other Second Priority Documents. 

ARTICLE X 
 NOTICES 

10.1 Sending Notices. Any notice required or permitted to be given under this Agreement shall be sent (and deemed received) in the
manner and to the addresses set forth in Section 12.01 of the Indenture or any comparable provisions of any Other Second Priority Document. Any notice delivered to the Issuer shall be deemed to have been delivered to all of the Grantors. 

10.2 Change in Address for Notices. Each of the Grantors, the Collateral Agent and the Secured Parties may change the address for
service of notice upon it by a notice in writing to the other parties sent in accordance with Section 12.01 of the Indenture. 

ARTICLE XI 
 THE COLLATERAL
AGENT 
 Wilmington Trust, National Association has been appointed Collateral Agent for the Secured Parties hereunder pursuant to, in the
case of the Holders, Section 13.08 of the Indenture, and, in the case of the holders of the Other Second Priority Obligations, if any, the corresponding provision of such Other Second Priority Document, if any, and the applicable Accession
Agreement. It is expressly understood and agreed by the parties to this Agreement that any authority conferred upon the Collateral Agent hereunder is subject to the terms of the delegation of authority made by the Secured Parties to the Collateral
Agent pursuant to the Indenture, such Other Second Priority Document, if any, or the Accession Agreement, as applicable, and that the Collateral Agent has agreed to act (and any successor Collateral Agent shall act) as such hereunder only on the
express conditions contained in the Indenture and any Accession Agreement. Any successor Collateral Agent appointed in accordance with the terms of the Indenture Documents or the Other Second Priority Documents, as applicable, shall be entitled to
all the rights, interests and benefits of the Collateral Agent hereunder. 
 It is expressly understood and agreed that Wilmington Trust,
National Association is entering this Agreement solely in its capacity as Collateral Agent for the Secured Parties under the Indenture Documents and the Other Second Priority Documents, if any, and not in its individual or corporate capacity. In
acting hereunder, the Collateral Agent shall be entitled to all of the rights, privileges, immunities, indemnities and benefits granted to the Collateral Agent under the Indenture Documents, including, without limitation, those set forth in
Article 13 of the Indenture, and the corresponding provisions of the Other Second Priority Documents, if any, as if such rights, privileges, immunities, indemnities and benefits were expressly set forth herein. Whether or not expressly stated
therein, in executing, delivering and performing its obligations under any 

  
 34 

 
Indenture Document or Other Second Priority Document, if any, the Collateral Agent shall be entitled to the rights, privileges, immunities, indemnities and benefits granted to it under this
Agreement, the Indenture Documents and the Other Second Priority Documents, if any. 
 [remainder of page intentionally blank] 

  
 35 

 IN WITNESS WHEREOF, each of the Grantors and the Collateral Agent have executed this
Agreement as of the date first above written. 
  

			
	STONEMOR INC.
		
	By:	 	/s/ Jeffrey DiGiovanni
		 	Name: Jeffrey DiGiovanni
		 	Title: Chief Financial Officer, Treasurer

 Signature Page to Security Agreement 

 
	
	ALLEGHANY MEMORIAL PARK LLC
	ALTAVISTA MEMORIAL PARK LLC
	ARLINGTON DEVELOPMENT COMPANY
	AUGUSTA MEMORIAL PARK PERPETUAL CARE COMPANY
	BIRCHLAWN BURIAL PARK LLC
	BRONSWOOD CEMETERY, INC.
	CEDAR HILL FUNERAL HOME, INC.
	CEMETERY INVESTMENTS LLC
	CEMETERY MANAGEMENT SERVICES OF OHIO, L.L.C.
	CEMETERY MANAGEMENT SERVICES, L.L.C.
	CHAPEL HILL ASSOCIATES, INC.
	CHAPEL HILL FUNERAL HOME, INC.
	CMS WEST LLC
	CMS WEST SUBSIDIARY LLC
	COLUMBIA MEMORIAL PARK LLC
	CORNERSTONE FAMILY INSURANCE SERVICES, INC.
	CORNERSTONE FAMILY SERVICES OF NEW JERSEY, INC.
	CORNERSTONE FAMILY SERVICES OF WEST VIRGINIA LLC
	CORNERSTONE FAMILY SERVICES OF WEST VIRGINIA SUBSIDIARY, INC.
	CORNERSTONE FUNERAL AND CREMATION SERVICES LLC
	CORNERSTONE TRUST MANAGEMENT SERVICES LLC
	COVENANT ACQUISITION LLC
	COVINGTON MEMORIAL FUNERAL HOME, INC.
	COVINGTON MEMORIAL GARDENS, INC.
	ELOISE B. KYPER FUNERAL HOME, INC.
	FOREST LAWN GARDENS, INC.
	FOREST LAWN MEMORIAL CHAPEL, INC.
	FOREST LAWN MEMORY GARDENS, INC.
	GLEN HAVEN MEMORIAL PARK LLC
	HENLOPEN MEMORIAL PARK LLC
	HENLOPEN MEMORIAL PARK SUBSIDIARY LLC
	HENRY MEMORIAL PARK LLC
	JUNIATA MEMORIAL PARK LLC
	KIRIS LLC
	KIRIS SUBSIDIARY, INC.

 Signature Page to Security Agreement 

 
	
	KIRK & NICE SUBURBAN CHAPEL, INC.
	KIRK & NICE, INC.
	LAKEWOOD MEMORY GARDENS SOUTH LLC
	LAKEWOOD MEMORY GARDENS SOUTH SUBSIDIARY, INC.
	LAKEWOOD/HAMILTON CEMETERY LLC
	LAKEWOOD/HAMILTON CEMETERY SUBSIDIARY, INC.
	LAUREL HILL MEMORIAL PARK LLC
	LAURELWOOD HOLDING COMPANY
	LEGACY ESTATES, INC.
	LOEWEN [VIRGINIA] LLC
	LORRAINE PARK CEMETERY LLC
	MODERN PARK DEVELOPMENT LLC
	OAK HILL CEMETERY LLC
	OSIRIS HOLDING FINANCE COMPANY
	OSIRIS HOLDING OF MARYLAND LLC
	OSIRIS HOLDING OF PENNSYLVANIA LLC
	OSIRIS HOLDING OF RHODE ISLAND LLC
	OSIRIS HOLDING OF RHODE ISLAND SUBSIDIARY, INC.
	OSIRIS MANAGEMENT, INC.
	PERPETUAL GARDENS.COM, INC.
	PLYMOUTH WAREHOUSE FACILITIES LLC
	PRINCE GEORGE CEMETERY CORPORATION
	PVD ACQUISITIONS LLC
	ROCKBRIDGE MEMORIAL GARDENS LLC
	ROLLING GREEN MEMORIAL PARK LLC
	ROSE LAWN CEMETERIES LLC
	ROSELAWN DEVELOPMENT LLC
	RUSSELL MEMORIAL CEMETERY LLC
	SHENANDOAH MEMORIAL PARK LLC
	SOUTHERN MEMORIAL SALES LLC
	SPRINGHILL MEMORY GARDENS LLC
	STAR CITY MEMORIAL SALES LLC
	STEPHEN R. HAKY FUNERAL HOME, INC.
	STITHAM LLC
	STONEMOR ALABAMA LLC
	STONEMOR ALABAMA SUBSIDIARY, INC.
	STONEMOR CEMETERY PRODUCTS LLC
	STONEMOR COLORADO LLC
	STONEMOR COLORADO SUBSIDIARY LLC
	STONEMOR FLORIDA LLC
	STONEMOR FLORIDA SUBSIDIARY LLC

 Signature Page to Security Agreement 

 
	
	STONEMOR GEORGIA LLC
	STONEMOR GEORGIA SUBSIDIARY, INC.
	STONEMOR HOLDING OF PENNSYLVANIA LLC
	STONEMOR ILLINOIS LLC
	STONEMOR ILLINOIS SUBSIDIARY LLC
	STONEMOR INDIANA LLC
	STONEMOR INDIANA SUBSIDIARY LLC
	STONEMOR IOWA LLC
	STONEMOR IOWA SUBSIDIARY LLC
	STONEMOR KANSAS LLC
	STONEMOR KANSAS SUBSIDIARY LLC
	STONEMOR KENTUCKY LLC
	STONEMOR KENTUCKY SUBSIDIARY LLC
	STONEMOR LP HOLDINGS LLC
	STONEMOR MICHIGAN LLC
	STONEMOR MICHIGAN SUBSIDIARY LLC
	STONEMOR MISSISSIPPI LLC
	STONEMOR MISSISSIPPI SUBSIDIARY LLC
	STONEMOR MISSOURI LLC
	STONEMOR MISSOURI SUBSIDIARY LLC
	STONEMOR NORTH CAROLINA FUNERAL SERVICES, INC.
	STONEMOR NORTH CAROLINA LLC
	STONEMOR NORTH CAROLINA SUBSIDIARY LLC
	STONEMOR OHIO LLC
	STONEMOR OHIO SUBSIDIARY, INC.
	STONEMOR OPERATING LLC
	STONEMOR PARTNERS L.P.
	STONEMOR PENNSYLVANIA LLC
	STONEMOR PENNSYLVANIA SUBSIDIARY LLC
	STONEMOR PUERTO RICO CEMETERY AND FUNERAL, INC.
	STONEMOR PUERTO RICO LLC
	STONEMOR PUERTO RICO SUBSIDIARY LLC
	STONEMOR SOUTH CAROLINA LLC
	STONEMOR SOUTH CAROLINA SUBSIDIARY LLC
	STONEMOR TENNESSEE SUBSIDIARY, INC.
	STONEMOR WISCONSIN LLC
	STONEMOR WISCONSIN SUBSIDIARY LLC
	SUNSET MEMORIAL GARDENS LLC
	SUNSET MEMORIAL PARK LLC

 Signature Page to Security Agreement 

 
	
	TEMPLE HILL LLC
	THE VALHALLA CEMETERY COMPANY LLC
	THE VALHALLA CEMETERY SUBSIDIARY CORPORATION
	TIOGA COUNTY MEMORIAL GARDENS LLC
	VIRGINIA MEMORIAL SERVICE LLC
	WICOMICO MEMORIAL PARKS LLC
	WNCI LLC
	WOODLAWN MEMORIAL PARK SUBSIDIARY LLC

  

			
		
	By:	 	/s/ Jeffrey DiGiovanni
		 	Name: Jeffrey DiGiovanni
		 	Title: Chief Financial Officer, Treasurer

 Signature Page to Security Agreement 

 WILMINGTON TRUST, NATIONAL ASSOCIATION, 

as Collateral Agent 

			
		
	By:	 	/s/ Hallie E. Field
		 	Name: Hallie E. Field
		 	Title: Vice President

 Signature Page to Security Agreement 

 EXHIBIT A 

FORM OF AMENDMENT 
 This
Amendment, dated [_______], 20[__] is delivered pursuant to Section 5.4 of the Agreement referred to below. All defined terms herein shall have the meanings ascribed thereto or incorporated by reference in the Agreement.
The undersigned hereby certifies that the representations and warranties in Article IV of the Agreement are and continue to be true and correct in all material respects (without duplication of any materiality or Material Adverse Effect
qualifier). The undersigned further agrees that this Amendment may be attached to that certain Security Agreement, dated as of May 11, 2021 (as previously amended, restated, supplemented or otherwise modified, the “Agreement”),
among the undersigned, as a Grantor, the other Grantors from time to time party thereto, and Wilmington Trust, National Association, as the Collateral Agent, and that the Collateral listed on Schedule I
to this Amendment shall be and become a part of the Collateral referred to in said Agreement and hereby pledges, assigns and grants to the Collateral Agent, for the benefit of the Secured Parties, a Lien on and security interest in, all of its
right, title and interest in, to and under the Collateral listed on Schedule I to this Amendment to secure all Secured Obligations referred to in said Agreement. 

This Agreement may be executed in one or more counterparts (including by facsimile or other electronic transmission), each of which will be
deemed an original, but all of which together constitute one and the same original. 
 THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE
WITH AND GOVERNED BY THE LAW OF THE STATE OF NEW YORK. 
  

			
	[GRANTOR]
		
	By:	 	 
		 	Name:
		 	Title:

  
 1 

 EXHIBIT B 

FORM OF SUPPLEMENT 

Reference is hereby made to the Security Agreement (as amended, restated, supplemented or otherwise modified from time to time, the
“Agreement”), dated as of May 11, 2021, made by each of StoneMor Inc., a Delaware corporation (the “Issuer”), the other Grantors from time to time party thereto, and Wilmington Trust, National Association, as
the Collateral Agent for itself and the other Secured Parties. Capitalized terms used herein and not defined herein shall have the meanings given to them in the Agreement. 

Section 9.21 of the Agreement provides that an Additional Grantor may become a Grantor under the Agreement by the execution and delivery
of a written supplement to the Agreement substantially in the form of this Supplement to become an Additional Grantor in accordance with the terms of the Indenture. 

By its execution below, the undersigned, [NAME OF NEW GRANTOR], a [_________] [corporation/limited liability company/limited partnership] (the
“New Grantor”) agrees to become, and does hereby become, a Grantor under the Agreement and agrees to be bound by the Agreement as if originally a party thereto. The New Grantor, as collateral security for the prompt and complete
payment in full and performance when due (whether at stated maturity, by acceleration or otherwise) in full of the Secured Obligations, hereby pledges, assigns and grants to the Collateral Agent, for the benefit of the Secured Parties, a Lien on and
security interest in, all of its right, title and interest in, to and under the Collateral of New Grantor, whether now owned or at any time hereafter acquired by New Grantor or in which New Grantor now has or at any time in the future may acquire
any right, title or interest, wheresoever located, including all accessions thereto and proceeds thereof, and whether now or hereafter existing or arising. The New Grantor irrevocably authorizes the Collateral Agent at any time and from time to time
in the discretion of the Collateral Agent to file financing statements or amendments necessary or desirable and that describe the Collateral in any manner (including, without limitation, as “all assets of the Debtor, whether now owned or
hereafter acquired” or words of similar effect or with greater detail) as the Collateral Agent may determine in the Collateral Agent’s discretion to perfect and to maintain the perfection and priority of the Collateral Agent’s
security interest in the Collateral in accordance with the provisions of the Agreement. Notwithstanding the foregoing grant of authority to the Collateral Agent, the New Grantor agrees to file or cause the filing of financing statements or
amendments thereto necessary to perfect or maintain the perfection and priority of the Collateral Agent’s security interest in the Collateral owned by New Grantor in accordance with the provisions of the Agreement. 

By its execution below, the undersigned represents and warrants as to itself that all of the representations and warranties contained in the
Agreement are true and correct in all material respects (without duplication of any materiality or Material Adverse Effect qualifier) as of the date hereof. The New Grantor represents and warrants that the supplements to the Perfection Certificate
attached hereto as Annex I are true and correct in all material respects (without duplication of any materiality or Material Adverse Effect qualifier) and that such supplements set forth all information required to be scheduled under the
Perfection Certificate with respect to the New Grantor. The New Grantor shall take all steps necessary and required under the Agreement to 

  
 1 

 
perfect, in favor of the Collateral Agent, a first priority Lien (subject, as to priority, to the First Priority Exceptions) against the New Grantor’s Collateral, subject to Permitted
Liens. 
 This Agreement may be executed in one or more counterparts (including by facsimile or other electronic transmission), each of
which will be deemed an original, but all of which together constitute one and the same original. 
 THIS AGREEMENT SHALL BE CONSTRUED IN
ACCORDANCE WITH AND GOVERNED BY THE LAW OF THE STATE OF NEW YORK. 
 IN WITNESS WHEREOF, the New Grantor has executed and delivered this
Supplement as of this ______ day of _______, 20__. 
  

			
	[NAME OF NEW GRANTOR]
		
	By:	 	 
		
		 	Name:                                     
                                         
     
		
		 	Title:                                    
                                         
        

  
 2 

 EXHIBIT C 

FORM OF SHORT-FORM INTELLECTUAL PROPERTY SECURITY AGREEMENT 

GRANT OF 
 SECURITY
INTEREST IN [TRADEMARK/PATENT/COPYRIGHT] RIGHTS 
 This GRANT OF SECURITY INTEREST IN [TRADEMARK/ PATENT/ COPYRIGHT] RIGHTS (this
“Agreement”), dated as of [•], 20[•], is made by and among the Grantors listed on the signature pages hereof (each, a “Grantor” and collectively, the “Grantors”), in favor of Wilmington
Trust, National Association, as collateral agent (in such capacity, the “Collateral Agent”) for the benefit of itself and the other Secured Parties in connection with that certain Indenture, dated as of May 11, 2021 (as
amended, restated, supplemented or otherwise modified from time to time, the “Indenture”), by and among StoneMor Inc., a Delaware corporation (the “Issuer”), the other Grantors, the Collateral Agent and Wilmington
Trust, National Association, as Trustee. 
 W I T N E S S E T H: 

WHEREAS, pursuant to the Indenture the Issuer has issued the Notes upon the terms and subject to the conditions set forth therein; 

WHEREAS, in connection with the Indenture, each Grantor and any Subsidiaries that become a party thereto, have executed and delivered the
Security Agreement, dated as of May 11, 2021, in favor of the Collateral Agent, acting for the benefit of the Secured Parties (together with all amendments, restatements, supplements and modifications, if any, from time to time thereafter made
thereto, the “Security Agreement”); 
 WHEREAS, pursuant to the Security Agreement, each Grantor has granted to the
Collateral Agent, for the benefit of the Secured Parties, a lien on and security interest in, all of its right, title and interest in, to and under certain Intellectual Property, including the [Trademarks/Patents/Copyrights], that is not Excluded
Property; and 
 NOW THEREFORE, in consideration of the premises and to induce the Collateral Agent and the Secured Parties to enter into
the Indenture and to induce the Noteholder Parties to purchase the Notes under the Indenture, the Grantors hereby agree with the Collateral Agent, for the benefit of the Secured Parties, as follows: 

1. Definitions. Unless otherwise defined herein or the context otherwise requires, terms used in this Agreement, including its preamble
and recitals, shall have the meanings assigned to such terms in the Indenture and the Security Agreement, as applicable. 
 2. Grant of
Security Interest. Each Grantor, as collateral security for the prompt and complete payment in full and performance when due (whether at the stated maturity, by acceleration or otherwise) in full of the Secured Obligations, hereby grants to the
Collateral Agent, for the benefit of the Secured Parties, a Lien on and security interest in all of such Grantor’s right, title and interest in, to and under its [Trademarks/Patents/Copyrights and Exclusive Copyright

  
 1 

 
Licenses] (including, without limitation, those items listed on Schedule A hereto) that are not Excluded Property, including [the goodwill
associated with such Trademarks and]1 the right to receive all proceeds therefrom (collectively, the “Collateral”). 

3. Purpose. This Agreement has been executed and delivered by each Grantor for the purpose of recording the grant of security interest
herein with the United States [Patent and Trademark] [Copyright] Office. Each Grantor authorizes and requests that the [Commissioner for Trademarks/Patents/ Register of Copyrights] record this Agreement. The security interest granted hereby has been
granted to the Secured Parties in connection with the Security Agreement and is expressly subject to the terms and conditions thereof. The Security Agreement (and all rights, powers and remedies of the Collateral Agent for the benefit of the Secured
Parties thereunder) shall remain in full force and effect in accordance with its terms. 
 4. Acknowledgment. Each Grantor does
hereby further acknowledge and affirm that the rights, powers and remedies of the Collateral Agent for the benefit of the Secured Parties with respect to the security interest in the Collateral granted hereby are more fully set forth in the
Indenture, any Other Second Priority Documents and the Security Agreement, the terms and provisions of which (including the remedies provided for therein) are incorporated by reference herein as if fully set forth herein. In the event of any
conflict between the terms of this Agreement and the terms of the Security Agreement, the terms of the Security Agreement shall govern. In the event of any conflict between the terms of this Agreement and the terms of the Indenture or any Other
Second Priority Documents, the terms of the Indenture or such Other Second Priority Documents shall govern. 
 5. Counterparts. This
Agreement may be executed in one or more counterparts (including by facsimile or other electronic transmission), each of which will be deemed an original, but all of which together constitute one and the same original. 

6. Governing Law: THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. 

7. Wilmington Trust, National Association is entering this Agreement solely in its capacity as Collateral Agent for the Secured Parties under
the Indenture and any Other Second Priority Documents and not in its individual or corporate capacity. In acting hereunder and under the Security Agreement, the Collateral Agent shall be entitled to all of the rights, privileges, immunities,
indemnities and benefits granted to the Collateral Agent under the Indenture, including, without limitation, those set forth in Article 13 of the Indenture, and any Other Second Priority Documents, as if such rights, privileges, immunities,
indemnities and benefits were expressly set forth herein. 
  

	1 	 Language applicable to Grant of Security Interest in Trademark Rights. 

  
 2 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and
delivered by their respective officers thereunto duly authorized as of the day and year first above written. 
  

			
	[•],
	as a Grantor
		
	By:	 	 
		 	Name:
		 	Title:

  
 [Signature Page to
Grant of Security Interest in [Trademark/Patent/Copyright] Rights] 

 
			
	WILMINGTON TRUST, NATIONAL ASSOCIATION, as the Collateral Agent
		
	By:	 	 
		 	Name:
		 	Title:

  
 [Signature Page to
Grant of Security Interest in [Trademark/Patent/Copyright] Rights] 

 SCHEDULE A 

[PATENT/TRADEMARK/COPYRIGHT] REGISTRATIONS AND APPLICATIONS 

[For Patents:] 
  

							
	 OWNER
	 	 APPLICATION NUMBER
	 	 PATENT NUMBER
	  	 TITLE

[For Trademarks:] 
  

							
	 OWNER
	 	 APPLICATION NUMBER
	 	 REGISTRATION NUMBER
	  	 TRADEMARK

[For Copyrights:] 

Copyright Registrations 
  

					
	 OWNER
	 	 REGISTRATION NUMBER
	 	 TITLE

Exclusive Copyright Licenses 
  

							
	 OWNER / LICENSOR
	 	 LICENSEE
	 	 REGISTRATION NUMBER
	  	 TITLE

 EXHIBIT D 

FORM OF INTERCOMPANY NOTE 

New York, New York 
 May 11,
2021 
 FOR VALUE RECEIVED, each of the undersigned (and its successors), to the extent a borrower from time to time with respect to any
loan or advance constituting Indebtedness (a “Loan”) from any other entity listed on the signature pages hereto (each, in such capacity, a “Payor”), hereby promises to pay such other entity listed below (each, in
such capacity, a “Payee”) or its registered assigns, at the time specified on the Schedule attached hereto with respect to such Loan (or if there is no such disclosure on such Schedule, on demand or as otherwise agreed by such Payor
and such Payee), and in lawful money of the United States of America, or in such other currency as agreed to by such Payor and such Payee, in immediately available or same day funds, as applicable, at such location as the applicable Payee shall from
time to time designate, the unpaid principal amount of all Loans made by such Payee to such Payor. Each Payor promises also to pay interest, if any, on the unpaid principal amount of all such Loans in like money at said location from the date of
such Loans until paid at such rate per annum as shall be reflected on the Schedule or as otherwise agreed upon from time to time by such Payor and such Payee. The terms and conditions of one or more Loans may (but are not required to) be set forth
on the Schedule attached to this note (as amended, restated, amended and restated, supplemented or otherwise modified from time to time, this “Note”) to memorialize the agreement of the Payor and Payee with respect to such Loan(s),
in which case the terms and conditions specified in the Schedule shall govern as between the Payor and Payee unless otherwise agreed in writing between them. 

This Note is an Intercompany Note referred to in the Security Agreement, dated as of May 11, 2021 (as amended, restated, amended and
restated, supplemented or otherwise modified from time to time, the “Security Agreement”), among, inter alios, StoneMor Partners L.P., a Delaware limited partnership (the “Partnership”), StoneMor Inc., a
Delaware corporation (the “Issuer”), the other Grantors and each other Subsidiary of the Partnership (other than Cemetery Non-Profits, Archdiocese Holdco and certain non-Wholly Owned Subsidiaries to the extent the Issuer reasonably determines in good faith that execution and delivery of this Note by such Subsidiary would violate any Requirement of Law (including any fiduciary
duties) or any organizational documents, constitutional documents, joint venture agreement, shareholder agreement, or similar agreement of such Subsidiary prohibits the execution and delivery of this Note or the obligations required of such
Subsidiary hereunder without the consent of any other party or would give any other party (other than the Issuer, any Guarantor or a Wholly Owned Subsidiary) to any organizational documents, constitutional documents, joint venture agreement,
shareholder agreement or similar agreement governing such Subsidiary the right to terminate its obligations thereunder; provided that such limitation shall not apply if (1) such other party is the Issuer, a Guarantor or a Wholly Owned
Subsidiary, (2) consent has been obtained to execute and deliver this Note and perform the obligations hereunder (it being understood that the foregoing shall not be deemed to obligate the Partnership or any Subsidiary to obtain any such
consent) and for so long as such organizational documents, constitutional documents, joint venture agreement, shareholder agreement or similar agreement or replacement or renewal thereof is in effect (the

  
 1 

 
“Specified Subsidiaries”)) from time to time party thereto, and Wilmington Trust, National Association, a national banking association, not in its individual capacity but solely
as collateral agent (the “Collateral Agent”). Unless otherwise specified, capitalized terms used in this Note and not otherwise defined herein have the meanings specified in the Security Agreement or the Indenture, dated as of
May 11, 2021 (as amended, restated, supplemented or otherwise modified from time to time, the “Indenture”), among the Issuer, the Guarantors party thereto, the Collateral Agent, and Wilmington Trust, National Association, as
Trustee, as applicable. 
 Each Payee that is the Issuer or a Guarantor hereby acknowledges and agrees that after the occurrence and during
the continuance of an Event of Default under the Indenture or any Other Second Priority Document, if any, and after notice from the Collateral Agent to such Payee, the Collateral Agent may exercise all rights provided in the Indenture, the Security
Agreement and any other applicable Indenture Document or Other Second Priority Document, if any, with respect to this Note. 
 Each Payee is
hereby authorized (but not required) to record all Loans made by it to any Payor (all of which shall be evidenced by this Note), and all repayments or prepayments thereof, in its books and records, such books and records constituting prima facie
evidence of the accuracy of the information contained therein. 
 Anything in this Note to the contrary notwithstanding, the Indebtedness
evidenced by this Note owed by any Payor that is the Issuer or a Guarantor (an “Affected Payor”) to any Payee that is not the Issuer or a Guarantor (an “Affected Payee”) shall be subordinate and junior in right of
payment, to the extent and in the manner hereinafter set forth, to all Secured Obligations of such Affected Payor, including, without limitation, where applicable, under such Affected Payor’s guarantee of the Indenture Obligations under the
Indenture and any Other Second Priority Obligations (such obligations and the guarantee of the foregoing obligations are hereinafter collectively referred to as “Senior Indebtedness”): 

In the event of any Insolvency or Liquidation Proceeding, then (x) the holders of Senior Indebtedness shall be paid in full in cash in
respect of all amounts constituting Senior Indebtedness (excluding contingent indemnification and expense reimbursement claims not then due) before any Affected Payee is entitled to receive (whether directly or indirectly), or make any demands for,
any payment on account of this Note and (y) until the holders of Senior Indebtedness are paid in full (excluding contingent indemnification and expense reimbursement claims not then due) in cash in respect of all amounts constituting Senior
Indebtedness, any payment or distribution to which such Affected Payee would otherwise be entitled (other than (A) equity securities or (B) debt securities of such Affected Payor that are subordinated, to at least the same extent as this
Note, to the payment of Senior Indebtedness (excluding contingent indemnification and expense reimbursement claims not then due) then outstanding (such securities hereinafter referred to as “Restructured Debt Securities”)) in
respect of this Note shall be made to the holders of Senior Indebtedness; 
 (i) (x) if any Event of Default occurs and is continuing with
respect to any Senior Indebtedness and (y) the Collateral Agent delivers notice to the Issuer instructing the Issuer and the Guarantors that the Collateral Agent is exercising its rights pursuant to this clause (i) then, unless agreed by
such Collateral Agent, no payment or distribution of any kind or character shall 

  
 2 

 
be made by or on behalf of the Affected Payor or any other person on its behalf, and no payment or distribution of any kind or character shall be received by or on behalf of the Affected Payee or
any other person on its behalf, with respect to this Note unless and until the holders of Senior Indebtedness have been paid in full in cash in respect of all amounts constituting Senior Indebtedness (excluding contingent indemnification and expense
reimbursement claims not then due); and 
 (ii) if any payment or distribution of any character, whether in cash, securities or other
property, in respect of this Note shall (despite these subordination provisions) be received by any Affected Payee in violation of the foregoing clause (i) before all Senior Indebtedness shall have been paid in full in cash (excluding
contingent indemnification and expense reimbursement claims not then due), such payment or distribution shall be held in trust for the benefit of, and shall be paid over or delivered to, the holders of Senior Indebtedness (or their representatives),
in accordance with the relevant Indenture Documents or Other Second Priority Document, as applicable, ratably according to the respective aggregate amounts remaining unpaid thereon, to the extent necessary to pay such Senior Indebtedness in full in
cash. 
 To the fullest extent permitted by law, no present or future holder of Senior Indebtedness shall be prejudiced in its right to
enforce the subordination of this Note by any act or failure to act on the part of any Affected Payor or by any act or failure to act on the part of such holder or any trustee or agent for such holder. Each Affected Payee and each Affected Payor
hereby agrees that the subordination of this Note is for the benefit of the Collateral Agent and the Secured Parties and that the Collateral Agent may, on behalf of the Secured Parties, proceed to enforce the subordination provisions herein to the
extent applicable. 
 Nothing contained in the subordination provisions set forth above is intended to or will impair, as between each Payor
and each Payee, the obligations of such Payor, which are absolute and unconditional, to pay to such Payee the principal of and interest, if any, on this Note as and when due and payable in accordance with its terms, or is intended to or will affect
the relative rights of such Payee and other creditors of such Payor other than the holders of Senior Indebtedness. Each Payee is hereby authorized (but not required) to record all Loans made by it to any Payor (all of which shall be evidenced by
this Note), and all repayments or prepayments thereof, in its books and records, such books and records constituting prima facie evidence of the accuracy of the information contained therein. For the avoidance of doubt, this Note shall not in any
way replace, or affect the principal amount of, any intercompany loan outstanding between any Payor and any Payee prior to the execution hereof, and to the extent permitted by applicable law, from and after the date hereof, each such intercompany
loan shall be deemed to incorporate the terms set forth in this Note to the extent applicable and shall be deemed to be evidenced by this Note together with any documents and instruments executed prior to the date hereof in connection with such
intercompany Indebtedness. 
 To the fullest extent permitted by law, each Payor hereby waives presentment, demand, protest or notice of any
kind in connection with this Note. Except to the extent of any taxes required by law to be withheld, all payments under this Note shall be made without offset, counterclaim or deduction of any kind. 

  
 3 

 This Note shall be binding upon each Payor and its successors and assigns, and the terms and
provisions of this Note shall inure to the benefit of each Payee and its successors and assigns, including subsequent holders hereof. 
 It
is understood that this Note shall evidence only Indebtedness and not amounts owing in respect of accounts payable incurred in connection with goods sold or services rendered in the ordinary course of business and not in connection with the
borrowing of money. 
 From time to time after the date hereof, and as may be reflected on the Schedule, if desired, additional Subsidiaries
of any Issuer (other than Archdiocese Holdco, any Cemetery Non-Profits, any Specified Subsidiaries or any other Excluded Subsidiary described in clause (d) of such definition) may become parties hereto
(as Payor and/or Payee, as the case may be) by executing a counterpart signature page to this Note (each additional Subsidiary, an “Additional Party”). Upon delivery of such counterpart signature page to the Payees, which shall
automatically be incorporated into this Note, notice of which is hereby waived by the other Payors and Payees, each Additional Party shall be a Payor and/or a Payee, as the case may be, and shall be as fully a party hereto as if such Additional
Party were an original signatory hereof. Each Payor expressly agrees that its obligations arising hereunder shall not be affected or diminished by the addition or release of any other Payor or Payee hereunder. This Note shall be fully effective as
to any Payor or Payee that is or becomes a party hereto regardless of whether any other person becomes or fails to become or ceases to be a Payor or Payee hereunder. 

Indebtedness governed by this Note shall be maintained in “registered form” within the meaning of Section 163(f) of the
Internal Revenue Code of 1986, as amended, if required. The Payor or its designee (which shall, at the Collateral Agent’s request, be the Collateral Agent, acting solely for these purposes as agent of the Payor) shall record the transfer of the
right to payments of principal and interest on the Indebtedness governed by this Note to holders of the Senior Indebtedness in a register (the “Register”), and no such transfer shall be effective until entered in the Register. 

THIS NOTE AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE
LAW OF THE STATE OF NEW YORK. 
 For the avoidance of doubt, notwithstanding anything herein to the contrary, the exercise of any right or
remedy by the Collateral Agent hereunder is subject to the limitations and provisions of the Security Agreement, any Indenture Document or any Other Second Priority Document. In the event of any conflict between the terms of (i) the Security
Agreement and the terms of this Note governing the exercise of any right or remedy by the Collateral Agent, the terms of the Security Agreement shall govern and control, (ii) any Indenture Document and the terms of this Note governing the
exercise of any right or remedy by the Collateral Agent, the terms of such Indenture Document shall govern and control and (iii) any Other Second Priority Document and the terms of this Note governing the exercise of any right or remedy by the
Collateral Agent, the terms of such Other Second Priority Document shall govern and control. 

  
 4 

 [Signature Pages Follow] 

  
 5 

 
			
	[NAME OF ENTITY], as Payee and Payor
		
	By:	 	 
		 	Name:
		 	Title:

  
 6 

 Schedule to Intercompany Note 

 EXHIBIT E 

FORM OF ACCESSION AGREEMENT 

THIS ACCESSION AGREEMENT (this “Agreement”), [•], 20[•], is made by and among [_________________________] (the
“New Other Second Priority Representative”), StoneMor Inc., a Delaware corporation (the “Issuer”), and the subsidiaries of the Issuer signatory hereto as a “Guarantor” (each a “Guarantor”,
and together with the Issuer and any other entity that becomes a Grantor hereunder pursuant to Section 9.21 of the Security Agreement (as defined below), collectively, the “Grantors” and each, a “Grantor”) and
Wilmington Trust, National Association, as collateral agent (together with any successor thereto, the “Collateral Agent”) for the benefit of itself and the other Secured Parties (as defined in the Security Agreement referred to
below). 
 WHEREAS, the Issuer is party to that certain Security Agreement (as amended, restated, supplemented or otherwise modified from time to time, the
“Security Agreement”), dated as of May 11, 2021, made by the Issuer and each of the other Grantors from time to time party thereto, and the Collateral Agent for itself and the other Secured Parties. Capitalized terms used
herein and not defined herein shall have the meanings given to them in the Security Agreement; and 
 WHEREAS, the New Other Second Priority Representative
wishes to become an “Other Second Priority Representative” under the Security Agreement and the other Collateral Documents as contemplated under Section 9.22 of the Security Agreement. 

NOW, THEREFORE, in respect of the mutual promises herein contained and other consideration the sufficiency of which is hereby acknowledged, the New Other
Second Priority Representative and the other parties hereto hereby agree as follows: 
 1. Effective Date. The effective date for this
Agreement shall be [_____________] (the “Effective Date”). 
 2. Accession. The New Other Second Priority
Representative, as [agent][trustee] under that certain [Loan Agreement][Indenture], dated as of [•], 20[•] (the “New Loan Document”), among the Issuer, the Guarantors[, any other parties] and the New Other Second
Priority Representative, hereby agrees to become party as an Other Second Priority Representative under the Security Agreement and the other Collateral Documents for all purposes thereof on the terms set forth therein, and to be bound by the terms
of the Security Agreement and the other Collateral Documents as fully as if the New Other Second Priority Representative had executed and delivered the Security Agreement and the other Collateral Documents as of the date thereof. 

3. Rights and Obligations under Security Agreement. Upon the execution and delivery of this Agreement by the New Other Second Priority
Representative, from and after the Effective Date, the New Other Second Priority Representative shall be a party to the Security Agreement and the other Collateral Documents and have the obligations and rights of an Other Second Priority
Representative under the Security Agreement and the other Collateral Documents. In furtherance of the foregoing, each Grantor shall duly authorize, prepare, execute and deliver an amendment to the Collateral Documents as may be necessary to give
effect to this Section 3 and Section 4, 

 
including by adding the Other Second Priority Obligations for which the New Other Second Priority Representative is a representative as Secured Obligations secured by each such Collateral
Document. The Collateral Agent shall, to the extent necessary for any such amendment to be effective, execute such amendment presented to it and as reasonably requested in writing by the relevant Grantor. To the extent that any Collateral (or
proceeds thereof) comes into the possession or under the control of the Collateral Agent or any other Secured Party after the date hereof in connection with any Collateral (whether arising out of action taken to enforce, collect or realize upon any
such Collateral or otherwise) that is attributable to the Indenture Obligations or the Other Second Priority Obligations, the Collateral Agent or such Secured Party shall hold the same as agent and bailee for the New Other Second Priority
Representative and the Grantors to give effect to Section 4 hereof, and the proceeds of such Collateral shall be applied in accordance with Section 8.4 of the Security Agreement. 

4. Lien Sharing and Priority Confirmation. The New Other Second Priority Representative, on behalf of itself and each holder of the
Other Second Priority Obligations under the New Loan Document for which the New Other Second Priority Representative is acting as [agent][trustee] hereby agrees, for the enforceable benefit of all holders of each existing and future Indenture
Obligations and Other Second Priority Obligations and as a condition to being treated as Secured Obligations under the Security Agreement that: 

(a) all Indenture Obligations and Other Second Priority Obligations will be and are secured equally and ratably by all Liens at
any time granted by the Issuer or the Guarantor or any successor company to secure any Indenture Obligations and Other Second Priority Obligations on the Collateral for such Indenture Obligations and Other Second Priority Obligations, and that all
such Liens will be enforceable by the Collateral Agent for the benefit of all holders of Indenture Obligations and Other Second Priority Obligations equally and ratably; and 

(b) the New Other Second Priority Representative and each holder of the Other Second Priority Obligations for which the New
Other Second Priority Representative is acting as [agent][trustee] are bound by the provisions of the Security Agreement and the other Collateral Documents, including the provisions relating to the ranking of Liens and the order of application of
proceeds from the enforcement of Liens. 
 5. Appointment of Collateral Agent. The New Other Second Priority Representative, by its
execution and delivery hereof and each holder of the Other Second Priority Obligations, by its acceptance of the New Loan Document, consent and agree to the terms of the Collateral Documents (including, without limitation, the provisions providing
for foreclosure and release of Collateral) as the same may be in effect or may be amended from time to time in accordance with their terms, and authorize and appoint Wilmington Trust, National Association, as the Collateral Agent, and the New Other
Second Priority Representative and each holder of Other Second Priority Obligations direct the Collateral Agent to enter into the Collateral Documents and to perform its obligations and exercise its rights thereunder in accordance therewith. 

6. Representations and Warranties. Each of the Grantors represents and warrants for the benefit of each of the parties hereto and the
Secured Parties as of the Effective Date that the Indebtedness being provided under the New Loan Document (i) is permitted to be incurred under 

 
Section 5.09 of the Indenture (ii) is secured by a Permitted Lien described in clauses (18) or (21) of the definition of Permitted Liens, and (iii) has been designated as
Other Second Priority Obligations in an Officers’ Certificate delivered to the Collateral Agent on or before the Effective Date, and (iv) the aggregate principal amount of such Indebtedness does not and will not at any time exceed the
Maximum Other Second Priority Obligations Amount. 
 7. Collateral Provisions. 

(a) Not in limitation of the grant included in Article III of the Security Agreement, but in furtherance thereof, each
Grantor hereby reaffirms for the benefit of the New Other Second Priority Representative the grant of security interest set forth in Article III of the Security Agreement and pledges, assigns and grants to the Collateral Agent, for the benefit
of the Secured Parties (including, without limitation, the New Other Second Priority Representative and each holder of the new Other Second Priority Obligations), a Lien on and security interest in, all of its right, title and interest in, to and
under the Collateral of such Grantor, whether now owned or at any time hereafter acquired by such Grantor or in which such Grantor now has or at any time in the future may acquire any right, title or interest, wheresoever located, including all
accessions thereto and proceeds thereof, and whether now or hereafter existing or arising, as collateral security for the prompt and complete payment in full and performance when due (whether at stated maturity, by acceleration or otherwise) in full
of the Secured Obligations (including, without limitation, the Other Second Priority Obligations owing to the holders of the new Other Second Priority Obligations). 

(b) By its signature hereto, each Grantor hereby authorizes the Collateral Agent (but the Collateral Agent is not obligated) to
file against such Grantor one or more financing, continuation or amendment statements pursuant to the UCC as may be necessary to establish and maintain the security interests created under the Security Agreement (which statements may describe the
Collateral as “all assets of the debtor whether now owned or hereafter acquired and wheresoever located, including all accessions thereto and proceeds thereof” or by using words of similar effect); provided, however, such
authorization shall not relieve any Grantor from its respective obligations to take actions, including to file such financing, continuation or amendment statements pursuant to the UCC, necessary to perfect and maintain the perfection of the
Collateral Agent’s Lien on the Collateral. All charges, expenses and fees that the Collateral Agent may incur in doing any of the foregoing, and any local taxes relating thereto, shall be paid by the Grantors to the Collateral Agent immediately
upon demand. 
 8. GOVERNING LAW. THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAW OF THE STATE
OF NEW YORK. 
 10. Notices. The address of the New Other Second Priority Representative for purposes of
Section 10.1 of the Security Agreement is: 
 [______________________] 

[______________________] 

[______________________] 
 Attn:
[_________________] 
 Tel: [_________________] 

Fax: [_________________] 
 unless changed in
accordance with the terms thereof. 

 11. Counterparts. This Agreement may be executed in counterparts (and by different
parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract. Delivery of an executed counterpart of a signature page of this Agreement by telecopy or
other electronic means shall be effective as delivery of a manually executed counterpart of this Agreement. 
 12. Third Party
Beneficiary. The Holders of the Notes and the other Notes Secured Parties are intended third party beneficiaries of this Agreement. 

13. Concerning the Collateral Agent. Wilmington Trust, National Association is entering this Agreement solely in its capacity as
Collateral Agent for the Secured Parties under the Indenture Documents and the Other Second Priority Documents and not in its individual or corporate capacity. In acting hereunder, the Collateral Agent shall be entitled to all of the rights,
privileges, immunities, indemnities and benefits granted to the Collateral Agent under the Indenture Documents, including, without limitation, those set forth in [Article 13] of the Indenture, and the corresponding provisions of such Other
Second Priority Documents, as if such rights, privileges, immunities, indemnities and benefits were expressly set forth herein. Whether or not expressly stated therein, in executing, delivering and performing its obligations under any Indenture
Document or Other Second Priority Document, the Collateral Agent shall be entitled to the rights, privileges, immunities, indemnities and benefits granted to it under this Agreement, the Security Agreement, the Indenture Documents and the Other
Second Priority Documents. 
 [remainder of page intentionally blank] 

 IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date first above
written. 
  

			
	[NAME OF NEW OTHER SECOND PRIORITY REPRESENTATIVE], as New Other Second Priority Representative

 
			
		
	By:	 	 
		 	Name:
		 	Title:
	
	WILMINGTON TRUST, NATIONAL ASSOCIATION, as Collateral Agent
		
	By:	 	 
		 	Name:
		 	Title:
	
	STONEMOR INC., as a Grantor
		
	By:	 	 
		 	Name:
		 	Title:
	
	[THE OTHER GRANTORS], as Grantors
		
	By:	 	 
		 	Name:
		 	Title:Document

Exhibit 10.1

Certain account details on page 15 and certain other information in Appendix A to this Exhibit have been redacted as they are both 1) immaterial and 2) the type of information that the Registrant customarily treats as private and confidential. Redacted information is indicated with [***].

FIXED $$ DISCOUNTED SHARE BUYBACK
WITH INITIAL DELIVERY    
Date:        May 10, 2021
To:        Sonoco Products Company
Attention:    Julie Albrecht
VP, Chief Financial Officer 
Phone:        (843) 383-7638
From:        Wells Fargo Bank, National Association
    
The purpose of this communication (this “Confirmation”) is to confirm the terms and conditions of the transaction entered into between Wells Fargo Bank, National Association (“Wells Fargo”) and Sonoco Products Company (“Counterparty”) on the Trade Date specified below (the “Transaction”).  This Confirmation constitutes a “Confirmation” as referred to in the Agreement specified below.
This Confirmation is subject to, and incorporates, the definitions and provisions contained in the 2002 ISDA Equity Derivatives Definitions (the “Equity Definitions”), as published by the International Swaps and Derivatives Association, Inc. (“ISDA”).  The Transaction is a Share Forward Transaction for purposes of the Equity Definitions.
1.    This Confirmation evidences a complete and binding agreement between Wells Fargo and Counterparty as to the terms of the Transaction to which this Confirmation relates and shall supersede all prior or contemporaneous written or oral communications with respect thereto.  This Confirmation shall supplement, form a part of, and be subject to an agreement in the form of the 2002 ISDA Master Agreement (the “Agreement”) as if Wells Fargo and Counterparty had executed an agreement in such form (but without any Schedule except for the elections set forth in Section 21 of this Confirmation.  The parties hereby agree that no Transaction other than the Transaction to which this Confirmation relates shall be governed by the Agreement.  If there exists any other ISDA Master Agreement between Wells Fargo and Counterparty or any other confirmation or other agreement between Wells Fargo and Counterparty pursuant to which an ISDA Master Agreement is deemed to exist between Wells Fargo and Counterparty, then notwithstanding anything to the contrary in such other ISDA Master Agreement, such other confirmation or agreement or any other agreement to which Wells Fargo and Counterparty are parties, the Transaction shall not be considered a Transaction under, or otherwise governed by, such other ISDA Master Agreement. For the avoidance of doubt, the Transaction shall not be a Transaction under, or otherwise governed by, the ISDA Master Agreement dated as of August 6, 2009 between Wells Fargo and Counterparty.

If, in relation to the Transaction, there is any inconsistency between the Agreement, this Confirmation and the Equity Definitions, the following will prevail for purposes of the Transaction in the order of precedence indicated: (i) this Confirmation; (ii) the Equity Definitions; and (iii) the Agreement.

2.    The terms of the particular Transaction to which this Confirmation relates are as follows:

												
	General Terms:		
		Trade Date:		May 10, 2021
				
		Seller:		Wells Fargo
				
		Buyer:		Counterparty
				
		Shares:		The common stock of Counterparty (the “Issuer”), no par value per share (Exchange ticker symbol: “SON”)

				
		Variable Obligation:		Applicable
				
		VWAP Price:		For any Trading Day, a price per Share equal to the 10b-18 volume-weighted average price per Share at which the Shares trade for the entire (subject to “Valuation Disruption” below) Trading Day (including any extensions thereof) of the Exchange on such Trading Day (without regard to pre-open or after hours trading outside of such regular trading session), as reported by Bloomberg at 4:15 p.m. (New York City time) (or 15 minutes following the end of any extension of the regular trading session) on such Trading Day, on Bloomberg Page “SON <Equity> AQR_SEC” (or any successor thereto).  If such price is not reported on such Trading Day for any reason or is, in the Calculation Agent’s good faith and commercially reasonable discretion, clearly erroneous, such VWAP Price shall be determined by the Calculation Agent in good faith and in a commercially reasonable manner based solely on trades that are Rule 10-18 eligible trades.
				As used herein, "Rule 10b-18 eligible trades" means transactions on the Exchange that are reported during the period of time during which Issuer could purchase its own shares under Rule 10b-18(b)(2) under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and are 

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				effected in accordance with the conditions of Rule 10b-18(b)(3) under the Exchange Act.
				
		Trading Day:		Any Exchange Business Day that is not a Disrupted Day in whole.
				
		Exchange:		The New York Stock Exchange
				
		Related Exchange(s):		All Exchanges
				
		Prepayment:		Applicable
				
		Prepayment Date:		As specified in Appendix A.
				
		Prepayment Amount:		As specified in Appendix A.
				
		Initial Shares:		As specified in Appendix A.
				
		Initial Share Delivery Date:		The Prepayment Date.
				
				On the Initial Share Delivery Date, Seller shall deliver a number of Shares equal to the Initial Shares to Buyer in accordance with Section 9.4 of the Equity Definitions, with the Initial Share Delivery Date deemed to be a “Settlement Date” for purposes of such Section 9.4. Seller shall effect such delivery by posting a deposit request in relation to a number of Shares equal to the Initial Shares through the Deposit or Withdrawal at Custodian ("DWAC") settlement system of DTC for delivery of such Shares to the Issuer's transfer agent, which is Continental Transfer and Trust Company.  This paragraph shall be subject to appropriate adjustment to reflect any delivery of Shares to Buyer after the Prepayment Date pursuant to the proviso opposite "Initial Shares" in Appendix A. 
	Valuation Terms:		
		Valuation Date:		As specified in Appendix A.
				
		Scheduled Earliest Acceleration Date:		As specified in Appendix A.
				
		Averaging		Applicable

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		Averaging Dates:		For any Valuation Date, each Scheduled Trading Day in the Averaging Period for such Valuation Date.
				
		Averaging Period:		For any Valuation Date, the period from, and including, the Averaging Period Start Date to, and including, such Valuation Date.
				
		Averaging Period Start Date:	As specified in Appendix A.
				
		Settlement Price:		For any Valuation Date, the arithmetic average of the VWAP Price on each Averaging Date for such Valuation Date minus the Settlement Price Adjustment.

				
		Settlement Price Adjustment:	As specified in Appendix A.
				
		Valuation Disruption:		The definition of “Market Disruption Event” in Section 6.3(a) of the Equity Definitions is hereby amended by replacing the words “at any time during the one-hour period that ends at the relevant Valuation Time, Latest Exercise Time, Knock-in Valuation Time or Knock-out Valuation Time, as the case may be” with “at any time on any Scheduled Trading Day during the Averaging Period or Settlement Valuation Period” in the third line thereof.
				
				Section 6.3(d) of the Equity Definitions is hereby amended by deleting the remainder of the provision following the term “Scheduled Closing Time” in the fourth line thereof.
				
				Notwithstanding anything to the contrary in the Equity Definitions, if a Disrupted Day occurs in the Averaging Period or Settlement Valuation Period, the Calculation Agent shall have the option in its commercially reasonable discretion to (i) elect to extend the Averaging Period or Settlement Valuation Period, as the case may be, by a number of Scheduled Trading Days equal to the number of Disrupted Days during the Averaging Period or Settlement Valuation Period, as applicable, and/or (ii) if such Disrupted Day is a Disrupted Day only in part, (x) determine the VWAP Price for such Disrupted Day based solely on trades that are Rule 10b-18 eligible trades and (y) determine the 

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				Settlement Price or Cash Settlement Price, as the case may be, based on an appropriately weighted average instead of an arithmetic average, with such adjustments based on, among other factors, the duration of any Market Disruption Event and the volume, historical trading patterns and price of the Shares. Any Exchange Business Day on which, as of the date hereof, the Exchange is scheduled to close prior to its normal close of trading shall be deemed not to be an Exchange Business Day (nor an Averaging Date); if a closure of the Exchange prior to its normal close of trading on any Exchange Business Day is scheduled following the date hereof, then such Exchange Business Day shall be deemed to be a Disrupted Day in full.
				
				If a Disrupted Day occurs during the Averaging Period or Settlement Valuation Period, and each of the nine immediately following Scheduled Trading Days is a Disrupted Day (a “Disruption Event”), then such Disruption Event shall be an Additional Disruption Event in respect of the Transaction with the consequence of such Additional Disruption Event being Cancellation and Payment.

				
			The Calculation Agent shall notify the parties of any determination pursuant to these Valuation Disruption provisions as promptly as practicable and in any event no later than the Exchange Business Day immediately following the affected Exchange Business Day.
				
	Settlement Terms:		
		Settlement Currency:	USD
				
		Settlement Procedures:		If the Number of Shares to be Delivered is positive, Physical Settlement shall be applicable to the Transaction. If the Number of Shares to be Delivered is negative, then the Buyer Settlement Provisions in Annex A hereto shall apply to the Transaction.
				
		Number of Shares to be Delivered:		A number of Shares (rounded down to the nearest whole number) equal to (a) (i) the Prepayment Amount divided by (ii) the Settlement Price as 

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				determined on the relevant Valuation Date, minus (b) the Initial Shares.

				
		Excess Dividend Amount:		For the avoidance of doubt, all references to the Excess Dividend Amount shall be deleted from Section 9.2(a)(iii) of the Equity Definitions.
				
		Settlement Date:		The date that follows the relevant Valuation Date by one Settlement Cycle.
				
		Representation and Agreement:	Seller does not, and shall not, make the agreement or the representations set forth in Section 9.11 of the Equity Definitions by excluding any representations therein relating to restrictions, obligations, limitations or requirements under applicable securities laws arising as a result of the fact that Buyer is the issuer of the Shares.
				
	Share Adjustments:		
		Potential Adjustment Event:	It shall constitute an additional Potential Adjustment Event if (x) a Disrupted Day has been deemed to have occurred or if the Exchange otherwise suspends trading in the Shares for all or any portion of a Scheduled Trading Day within the Averaging Period, (y) a Regulatory Disruption occurs or (z) a Disruption Event occurs.
				
				Notwithstanding anything to the contrary in Section 11.2(e) of the Equity Definitions, an Extraordinary Dividend shall not constitute a Potential Adjustment Event.
				
		Method of Adjustment:		Calculation Agent Adjustment
				
		Excess Dividend:		For any fiscal quarter, any dividend or distribution on the Shares with an ex-dividend date occurring during such fiscal quarter (other than any dividend or distribution of the type described in Section 11.2(e)(i) or Section 11.2(e)(ii)(A) of the Equity Definitions or any Extraordinary Dividend) (a “Dividend”) the amount or value of which (as determined by the Calculation Agent), when aggregated with the amount or value of any and all previous Dividends with ex-dividend dates occurring in the same fiscal quarter, exceeds the Ordinary Dividend Amount. For the avoidance of doubt, the Calculation Agent shall not make any 

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				adjustment for an Excess Dividend or for a Dividend that does not exceed the Ordinary Dividend Amount.
				
		Extraordinary Dividend:		The cash dividend or distribution per Share, or a portion thereof, declared by Buyer on the Shares that is classified by the board of directors of Buyer as an “extraordinary” dividend.  For the avoidance of doubt, an Extraordinary Dividend shall not be deemed to be an Excess Dividend.
				
		Ordinary Dividend Amount:	As specified in Appendix A
				
		Early Ordinary Dividend Payment:	If an ex-dividend date for any Dividend that is not an Excess Dividend occurs during any fiscal quarter (in whole or in part) during the Relevant Dividend Period and is prior to the Expected Ex-Dividend Date for the relevant fiscal quarter (as determined by the Calculation Agent), the Calculation Agent shall make such adjustment to the exercise, settlement, payment or any other terms of the Transaction as the Calculation Agent determines appropriate to account for the economic effect on the Transaction of such event.
				
		Expected Ex-Dividend Dates:	As specified in Appendix A
				
		Relevant Dividend Period:		The period from and including the Trade Date to and including the Relevant Dividend Period End Date.
				
		Relevant Dividend Period End Date:		If the Number of Shares to be Delivered is negative, the last day of the Settlement Valuation Period (as defined in Annex A) (if any); otherwise, the final Valuation Date.
				
	Extraordinary Events:		
				
		Alternative Termination Settlement:		Upon (x) the occurrence or effective designation of an Early Termination Date in respect of the Transaction or (y) the occurrence of an Extraordinary Event that results in the cancellation or termination of the Transaction pursuant to Section 12.2, 12.3, 12.6 or 12.9 of the Equity Definitions (except as a result of (i) an Extraordinary Event that is a Nationalization, Insolvency, Merger Event or Tender Offer, in each case, in which the consideration or proceeds to be 

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				paid to holders of Shares consists solely of cash, (ii) a Merger Event or Tender Offer that is within Buyer’s control, or (iii) an Event of Default in which Buyer is the Defaulting Party or a Termination Event in which Buyer is the Affected Party other than an Event of Default of the type described in Section 5(a)(iii), (v), (vi), (vii) or (viii) of the Agreement or a Termination Event of the type described in Section 5(b) of the Agreement, in each case that resulted from an event or events outside Buyer’s control), if one party would owe to the other party (1) any amount pursuant to Section 6(d)(ii) of the Agreement or (2) any Cancellation Amount pursuant to Article 12 of the Equity Definitions (either such amount, a “Payment Amount”), then (unless Buyer makes an election to the contrary no later than the Early Termination Date or the date on which such Transaction is terminated or cancelled by prior written notice to Seller as provided in the succeeding paragraph) on the date on which any Payment Amount is due, in lieu of any payment of such Payment Amount, the party owing such Payment Amount shall instead deliver to the other party a number of Shares (or, in the case of a Merger Event, Tender Offer, Nationalization or Insolvency, a number of units, each comprising the number or amount of the securities or property that a hypothetical holder of one Share would receive in such Extraordinary Event (each such unit, an “Alternative Termination Delivery Unit” and, the securities or property comprising such unit, “Alternative Termination Property”)) with a value equal to the Payment Amount, as determined as set forth in the second and third immediately succeeding paragraphs. In determining the composition of any Alternative Termination Delivery Unit, if the relevant Extraordinary Event involves a choice of consideration to be received by holders, such holder shall be deemed to have elected to receive the maximum possible amount of cash.

				
				In order for Buyer to validly elect for a Payment Amount to not be settled in Shares or Alternative Termination Property, Buyer must deliver written notice of such election to Seller no later than the 

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				Early Termination Date or the date on which the Transaction is terminated or cancelled, and such written notice must include a representation and warranty by Buyer to Seller that, as of the date of such notice, Buyer is not aware of any material non-public information regarding the Issuer or the Shares and is making such election in good faith and not as part of a plan or scheme to evade compliance with the federal securities laws.
				
				If Buyer elects for Seller to settle any Payment Amount owed by Seller to it in Shares or Alternative Termination Property, then on the date such Payment Amount is due, a settlement balance (the “Payment Amount Settlement Balance”) shall be established with an initial balance equal to the Payment Amount.  On such date, Seller shall commence purchasing Shares or Alternative Termination Property over a commercially reasonable period for delivery to Buyer and in a commercially reasonable manner to unwind a commercially reasonable hedge position.  At the end of each Scheduled Trading Day on which Seller purchases Shares or Alternative Termination Property pursuant to this paragraph, Seller shall reduce the Payment Amount Settlement Balance by the amount paid by Seller to purchase the Shares or Alternative Termination Property purchased on such Scheduled Trading Day. Seller shall deliver any Shares or Alternative Termination Property purchased on a Scheduled Trading Day to Buyer on the third Clearance System Business Day following the relevant Scheduled Trading Day.  Seller shall continue purchasing Shares or Alternative Termination Property over a commercially reasonable period until the Payment Amount Settlement Balance has been reduced to zero. If delivery of Shares or Alternative Termination Property is to be made by Seller pursuant to this paragraph, the period during which Seller purchases Shares or Alternative Termination Property to fulfil its delivery obligations under this paragraph shall be referred to as the “Termination Purchase Period.”

				
			If Buyer elects to settle any Payment Amount owed to Seller in Shares or Alternative Termination 

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				Property pursuant to this “Alternative Termination Settlement” provision, paragraphs 2 through 7 of Annex A hereto shall apply as if (A) such delivery were a settlement of the Transaction to which Net Share Settlement applied, (B) the Cash Settlement Payment Date were the Early Termination Date or the date of early cancellation or termination, as the case may be, and (C) the Forward Cash Settlement Amount were equal to (x) zero minus (y) the Payment Amount owed by Buyer.
				
				For the avoidance of doubt, notwithstanding anything to the contrary in the Equity Definitions or this Confirmation, the Payment Amount will not reflect the value associated with any Excess Dividend declared or paid by Buyer to holders of record of any Shares as of any date occurring on or after the Trade Date and prior to the date on which the Payment Amount is received.
				
		Cancellation and Payment (Calculation Agent Determination):	Sections 12.2(e) and 12.3(d) and the first paragraph of Section 12.7(b) of the Equity Definitions shall be amended by inserting the words “or Share Forward Transaction” after the words “Option Transaction” in each place where such words appear therein.  Section 12.7(c) shall be deleted from the Equity Definitions, and each reference in the Equity Definitions to “Section 12.7(c)” shall be replaced with a reference to “Section 12.7(b)”.
				
		Acknowledgement Regarding Adjustments:	Any adjustment to the terms of the Transaction, or the determination of any amounts due upon termination of the Transaction as a result of a Merger Event or Tender Offer shall take into account, and shall not duplicate the economic effects of, any extension or other adjustment hereunder (including, without limitation, any adjustment in Section 8 below).
				
	Consequences of Merger Events:		
				
		Share-for-Share:	Modified Calculation Agent Adjustment
				
		Share-for-Other:		Cancellation and Payment 
				
		Share-for-Combined:		Component Adjustment

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		New Shares:		In the definition of “New Shares” in Section 12.1(i) of the Equity Definitions, the text in clause (i) thereof shall be deleted in its entirety and replaced with “publicly quoted, traded or listed on any of the New York Stock Exchange, The NASDAQ Global Select Market or The NASDAQ Global Market (or their respective successors).”
				
	Tender Offer:		Applicable
				
	Consequences of Tender Offers:	
				
		Share-for-Share:	Modified Calculation Agent Adjustment
				
		Share-for-Other:		Cancellation and Payment 
				
		Share-for-Combined:		Component Adjustment
				
		Determining Party:		Wells Fargo
				
		Composition of Combined Consideration:		Not Applicable; provided that notwithstanding Sections 12.1(f) and 12.5(b) of the Equity Definitions, to the extent that the composition of the consideration for the relevant Shares in connection with a Merger Event or Tender Offer could be determined by a holder of the Shares, the Calculation Agent shall, in its sole discretion, determine the composition of such consideration for purposes of determining the consequences of such Merger Event or Tender Offer under the Transaction.

				
		Limitations as to Certain Adjustments:		For the avoidance of doubt, any adjustments to the terms of any Transaction and any determination of any amounts due upon termination of any Transaction hereunder (including, without limitation, as a result of a Merger Event, Tender Offer, Acquisition Transaction or Merger Transaction, or any announcement with respect to any of the foregoing) shall be made without duplication in respect of any prior adjustment under this Confirmation.
				
		Nationalization, Insolvency or Delisting:		Cancellation and Payment (Calculation Agent Determination) In addition to the provisions of Section 12.6(a)(iii) of the Equity Definitions, it shall also constitute a Delisting if the Exchange is located in the United States and the Shares are not 

11

												
				immediately re-listed, re-traded or re-quoted on any of the New York Stock Exchange, The NASDAQ Global Select Market or The NASDAQ Global Market (or their respective successors); if the Shares are immediately re-listed, re-traded or re-quoted on any such exchange or quotation system, such exchange or quotation system shall thereafter be the Exchange.
				
	Additional Disruption Events:		
				
		Change in Law:	Applicable; provided that Section 12.9(a)(ii) of the Equity Definitions is hereby amended by (i) replacing the phrase “the interpretation” in the third line thereof with the phrase “, or public announcement of, the formal or informal interpretation”, (ii) replacing the word “Shares” where it appears in clause (X) thereof with the words “Shares or Hedge Positions” and (iii) immediately following the word “Transaction” in clause (X) thereof, adding the phrase “in the manner contemplated by the Hedging Party on the Trade Date”; provided, further, that Section 12.9(a)(ii) of the Equity Definitions is hereby amended by replacing the parenthetical beginning after the word “regulation” in the second line thereof the words “(including, for the avoidance of doubt and without limitation, (x) any tax law or (y) adoption or promulgation of new regulations authorized or mandated by existing statute)”.

				
				No Increased Cost of Stock Borrow (whether or not in excess of the Initial Stock Loan Rate) resulting from a Change in Law (as defined in the Equity Definitions) shall constitute (solely for the purpose of the immediately preceding paragraph) an event described in clause (Y) of the definition of Change in Law in the Equity Definitions.
				
		Failure to Deliver:		Applicable
				
		Insolvency Filing:		Applicable
				
		Hedging Disruption:		Applicable; provided that:  (i) Section 12.9(a)(v) of the Equity Definitions is hereby amended by inserting the following two sentences at the end of 

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				such Section:  “For the avoidance of doubt, the term “equity price risk” shall be deemed to include, but shall not be limited to, stock price and volatility risk.  And, for the further avoidance of doubt, any such transactions or assets referred to in phrases (A) or (B) above must be available on commercially reasonable pricing terms and trade with sufficient liquidity to support a commercially reasonable Hedge Position in respect of the Transaction.”; and (ii) Section 12.9(b)(iii) of the Equity Definitions is hereby amended by (x) deleting in the third line thereof the words “to terminate the Transaction”, and replacing them with the words “(A) to terminate the Transaction or a portion of the Transaction affected by such Hedging Disruption” and by (y) inserting in the last line thereof after the word “other”, the words “, (B) that such occurrence be a Potential Adjustment Event and/or (C) to deem that a Market Disruption Event has occurred and will be continuing at any time following the occurrence and during the continuance of such an event”; provided, further, that it shall not constitute a Hedging Disruption if such is solely due to the deterioration of the creditworthiness of the Hedging Party.
				
		Increased Cost of Hedging:	Applicable; provided that it shall not constitute an Increased Cost of Hedging if such is solely due to the deterioration of the creditworthiness of the Hedging Party. 

				
		Hedging Party:		Wells Fargo
				
		Loss of Stock Borrow:		Applicable
				
		Maximum Stock Loan Rate:	As specified in Appendix A.
				
		Hedging Party:		Wells Fargo
				
		Increased Cost of Stock Borrow:	Applicable; provided that it shall not constitute an Increased Cost of Stock Borrow if such is solely due to the deterioration of the creditworthiness of the Hedging Party.

				
		Initial Stock Loan Rate:		As specified in Appendix A.
				
		Hedging Party:		Wells Fargo

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		Determining Party for all Extraordinary Events:		Wells Fargo
				
	Miscellaneous:	
				
		Non-Reliance:		Applicable
				
		Agreements and Acknowledgments Regarding Hedging Activities:		Applicable
				
		Additional Acknowledgments:	Applicable
				
	3.	Calculation Agent:		Wells Fargo; provided that, if an Event of Default described in Section 5(a)(i), 5(a)(iii)(1) (with respect to any required payment or delivery) or 5(a)(vii) of the Agreement has occurred and is continuing with respect to Wells Fargo as Defaulting Party and no Event of Default has occurred and is continuing with respect to Counterparty as Defaulting Party, then Counterparty may designate any of Bank of America, NA, Barclays Bank plc, Citibank, N.A., Credit Suisse, Deutsche Bank AG, Goldman Sachs & Co., JPMorgan Chase Bank, N.A., Morgan Stanley and UBS AG (or any of their principal broker dealer affiliates) as Calculation Agent, which designation shall be effective only (a) if such designated entity accepts such appointment and agrees to perform the duties of the Calculation Agent hereunder and (b) so long as such Event of Default with respect to Wells Fargo as Defaulting Party continues.  Unless otherwise specified, the Calculation Agent shall make all determinations, calculations and adjustments required under this Confirmation in good faith and on a commercially reasonable basis.  Promptly following written request by Counterparty, the Calculation Agent will promptly provide to Counterparty, by email to the email address provided by Counterparty in such written request, a report (in a commonly used file format for the storage and manipulation of financial data) displaying, in reasonable detail, the basis for such determination or calculation, it being understood that the Calculation Agent shall not be obligated to disclose any confidential or proprietary models or other confidential or proprietary 

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				information used by it for such determination or calculation.
				
	4.	Account Details:		
				
		Wells Fargo’s USD payment instructions:		[***]
				
		Wells Fargo’s delivery instructions:	[***]
				
		Counterparty’s payment and delivery instructions:		To be advised.
				
	5.	Offices.
		

(a)    The Office of Wells Fargo for the Transaction is: Charlotte, NC

(b)    The Office of Counterparty for the Transaction is:  Inapplicable, Counterparty is not a Multibranch Party.
For notices with respect to the Transaction:
Sonoco Products Company
1 N. Second St
Hartsville, South Carolina 29550
Attention:  Treasurer
Telephone: (843) 383-7000

6.             Additional Provisions.

(a)        Counterparty Representations and Agreements.  Counterparty represents and warrants to, and agrees with, Wells Fargo as follows:
(i)       Public Reports.  As of the Trade Date, Counterparty is in compliance with its reporting obligations under the Exchange Act, and all reports and other documents filed by Counterparty with the Securities and Exchange Commission pursuant to the Exchange Act, when considered as a whole (with the most recent such reports and documents deemed to amend inconsistent statements contained in any earlier such reports and documents), do not contain any untrue statement of a material fact or any omission of a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances in which they were 
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        made, not misleading.  Without limiting the generality of the foregoing, as of the Trade Date and as of any date that Counterparty elects to deliver or receive Shares under this Confirmation as contemplated opposite the caption “Settlement Method Election” in Annex A or “Alternative Termination Settlement” above, Counterparty is not aware of any material non-public information regarding the Issuer or the Shares and is making such election in good faith and not as part of a plan or scheme to evade compliance with the federal securities laws.
(ii)      Regulation M.  Neither Counterparty nor any affiliates shall take any action that would cause a restricted period (as defined in Regulation M under the Exchange Act (“Regulation M”)) to be applicable to any purchases of Shares, or of any security for which Shares is a reference security (as defined in Regulation M), by Counterparty or any affiliated purchasers (as defined in Regulation M) of Counterparty on any day prior to the second Scheduled Trading Day immediately following the latest of the (i) the final Valuation Date, (ii) the last day of the Settlement Valuation Period, and (iii) the last day of the Termination Purchase Period, as applicable.  Counterparty acknowledges that any such action could cause the occurrence (or deemed occurrence) of a Market Disruption Event (and, accordingly, a Potential Adjustment Event).  Accordingly, Counterparty acknowledges that its actions in relation to any such notice must comply with the standards set forth in Section 6(b) below.
(iii)    No Manipulation.  Counterparty is not entering into the Transaction to create actual or apparent trading activity in the Shares (or any security convertible into or exchangeable for the Shares) or to raise or depress or otherwise manipulate the price of the Shares (or any security convertible into or exchangeable for the Shares) or otherwise in violation of the Exchange Act.
(iv)    No Distribution.  Counterparty is not entering into the Transaction to facilitate a distribution of the Shares (or any security that may be converted into or exercised or exchanged for Shares, or whose value under its terms may in whole or in significant part be determined by the value of the Shares) or in connection with any future issuance of securities.
 (v)  Solvency.  As of the Trade Date, (a) the aggregate fair market value of Counterparty’s assets will exceed its liabilities (including contingent, subordinated, unmatured and unliquidated liabilities), (b) it has not engaged in and will not engage in any business or transaction after which the property remaining with it will be unreasonably small in relation to its business, (c) it has not incurred and does not intend to incur debts beyond its ability to pay as they mature, and (d) as a result of entering into and performing its obligations under the Transaction, (x) it has not violated and will not violate any relevant state law provision applicable to the acquisition or redemption by an issuer of its own securities and (y) it would not be nor  
16

would it be rendered “insolvent” (as such term is defined under Section 101(32) of the U.S. Bankruptcy Code (Title 11 of the United States Code) (the “Bankruptcy Code”)).
(vi)  Eligible Contract Participant.  It is an “eligible contract participant,” as defined under the Commodity Exchange Act (7 U.S.C. § 1a(18)) and CFTC regulations (17 CFR § 1.3) because it is a corporation, partnership, organization, trust, or other entity (other than a commodity pool or a proprietorship) that has total assets exceeding $10,000,000.
(vii)    Tender Offers.  The purchase or writing of the Transaction by Counterparty will not violate Rule 13e-1 or Rule 13e-4 under the Exchange Act.
(viii)  Investment Company.  Counterparty is not, and after giving effect to the transactions contemplated hereby will not be, required to register as an “investment company” as such term is defined in the Investment Company Act of 1940, as amended.
 (ix)   Accounting Treatment.  Without limiting the generality of Section 13.1 of the Equity Definitions, Counterparty acknowledges that neither Wells Fargo nor any of its Affiliates is making any representations or warranties or taking any position or expressing any view with respect to the treatment of the Transaction under any accounting standards including ASC Topic 260, Earnings Per Share, ASC Topic 815, Derivatives and Hedging, or ASC Topic 480, Distinguishing Liabilities from Equity and ASC 815-40, Derivatives and Hedging – Contracts in Entity’s Own Equity.
(x)     Authorization and Disclosure.  The Transaction is being entered into pursuant to a publicly disclosed Share buy-back program, which Counterparty publicly disclosed on April 21, 2021.
(ix)     Counterparty’s Actions.  Counterparty will not make any election or take any other action (other than an election or action expressly contemplated by this Confirmation) in connection with the Transaction while aware of any material nonpublic information regarding Issuer or the Shares.
(xii)   No Overlapping Transactions.  Counterparty has not and, without the prior approval of Wells Fargo, will not enter into agreements similar to the Transaction where any initial hedge period, averaging period, termination purchase period or settlement valuation period (each as defined in a manner analogous to that set forth in this Confirmation) in such other transaction will or could overlap at any time (including as a result of extensions in such initial hedge period, averaging period, termination purchase period or settlement valuation period as provided in the relevant agreements) with any Averaging Period, Termination Purchase Period or Settlement Valuation Period under this Confirmation. 

17

(xiii)  Rule 10b-18 purchases.  Counterparty represents and warrants to Wells Fargo that neither it nor any “affiliated purchaser” (as defined in Rule 10b-18 under the Exchange Act, “Rule 10b-18”) has made any purchases of blocks pursuant to the proviso in Rule 10b-18(b)(4) during either (i) the four full calendar weeks immediately preceding the Trade Date or (ii) during the calendar week in which the Trade Date occurs.
(b)        Rule 10b5-1.
(i)       It is the intent of the parties that the Transaction comply with the requirements of Rule 10b5-1(c) of the Exchange Act, and the parties agree that this Confirmation shall be interpreted to comply with the requirements of such Rule, and Counterparty shall not take any action that results in the Transaction not so complying with such requirements.  Counterparty represents that it is entering into the Transaction in good faith and not as part of a plan or scheme to evade the antifraud or anti-manipulation provisions of the federal or applicable state securities laws and that it has not entered into or altered any hedging transaction relating to the Shares corresponding to or offsetting the Transaction.  Counterparty represents and warrants that it has consulted with its own advisors as to the legal aspects of its adoption and implementation of the Transaction under Rule 10b5-1 under the Exchange Act.
(ii)      Counterparty shall not, at any time during any Averaging Period, Settlement Valuation Period or Termination Purchase Period, communicate, directly or indirectly, any material nonpublic information concerning itself or the Shares or purchases or sales of Shares by Wells Fargo (or its agent or affiliate) to any Relevant Bank Personnel, except for communications made under or pursuant to this Confirmation.  “Relevant Bank Personnel” means any employees or agents of Wells Fargo or any affiliate of Wells Fargo that Wells Fargo has notified Counterparty in writing are “Relevant Bank Personnel”; provided that Wells Fargo may amend the list of Relevant Bank Personnel at any time by delivering a revised list to Counterparty. “Relevant Bank Personnel” shall initially mean any personnel of the equity derivatives trading group of Wells Fargo or its affiliates who are responsible for, or have the ability to influence, the execution of the Transaction and of Wells Fargo’s hedge in relation thereto. 
(iii)    Counterparty agrees that Counterparty shall not enter into or alter any hedging transaction relating to the Shares corresponding to or offsetting the Transaction.  Counterparty also acknowledges and agrees that any amendment, modification, waiver or termination of this Confirmation must be effected in accordance with the requirements for the amendment or termination of a “plan” as defined in Rule 10b5-1(c) under the Exchange Act.  Without limiting the generality of the foregoing, any such amendment, modification, waiver or termination shall be made in good faith and not as part of a plan or scheme to evade the prohibitions of Rule 10b-5, and no 
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such amendment, modification, waiver or termination shall be made at any time at which Counterparty or any officer, director, manager or similar person of Counterparty is aware of any material non-public information regarding Counterparty or the Shares.
(iv)   Counterparty acknowledges and agrees that it does not have, and shall not attempt to exercise, any influence over how, when or whether Wells Fargo effects any purchases of Shares in connection with the Transaction.  
(c)        Wells Fargo Representations and Agreements.  Wells Fargo represents and warrants to, and agrees with, Counterparty as follows:
(i)     Wells Fargo shall, during any Averaging Period, Termination Purchase Period or Settlement Valuation Period under this Confirmation, use commercially reasonable efforts to make all purchases of Shares in connection with the Transaction in a manner that would comply with the limitations set forth in clauses (b)(2), (b)(3) and (b)(4) and (c) of Rule 10b-18, as if such rule were applicable to such purchases and taking into account any applicable Securities and Exchange Commission no-action letters as appropriate, and subject to any delays between the execution and reporting of a trade of the Shares on the Exchange and other circumstances beyond Wells Fargo’s control; provided that, during the Calculation Period, the foregoing agreement shall not apply to purchases made to dynamically hedge for Wells Fargo’s own account or the account of its affiliate(s) the optionality arising under a Transaction (including, for the avoidance of doubt, timing optionality); and provided further that, without limiting the generality of the first sentence of this Section 6(c)(i), Wells Fargo shall not be responsible for any failure to comply with Rule 10b-18(b)(3) to the extent any transaction that was executed (or deemed to be executed) by or on behalf of Issuer or an “affiliated purchaser” (as defined under Rule 10b-18) pursuant to a separate agreement is not deemed to be an “independent bid” or an “independent transaction” for purposes of Rule 10b-18(b)(3).
(ii)         In connection with the Transaction, Wells Fargo has not, at any time prior to execution of the Confirmation for such Transaction, discussed any offsetting transaction(s) in respect of the Transaction with any third party.
(iii) Wells Fargo has implemented policies and procedures, taking into consideration the nature of its business, reasonably designed to ensure that individuals making investment decisions related to the Transaction do not have access to material nonpublic information regarding Issuer or the Shares.
(d)        U.S. Private Placement and Other Representations.  
Each party acknowledges that the offer and sale of the Transaction to it is intended to be exempt from registration under the Securities Act of 1933, as amended (the 

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“Securities Act”). Accordingly, each party hereby represents and warrants to the other party as of the date hereof that:
(i)    It is an “accredited investor” (as defined in Regulation D under the Securities Act) and has such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of the Transaction, and it is able to bear the economic risk of the Transaction.
(ii)    It is entering into the Transaction for its own account and not with a view to the distribution or resale of the Transaction or its rights thereunder.
(iii)    It is duly organized and validly existing under the laws of the jurisdiction of its organization or incorporation and, if relevant under such laws, in good standing.
(iv)    It has the power to execute this Confirmation and any other documentation relating to this Confirmation to which it is a party, to deliver this Confirmation and any other documentation relating to this Confirmation that it is required by this Confirmation to deliver and to perform its obligations under this Confirmation and has taken all necessary action to authorize such execution, delivery and performance.
(v)    Such execution, delivery and performance do not violate or conflict with any law applicable to it, any provision of its constitutional documents, any order or judgment of any court or other agency of government applicable to it or any of its assets or any contractual restriction binding on or affecting it or any of its assets.

(e)    Securities Contract; Swap Agreement.  The parties hereto agree and acknowledge that Wells Fargo is a “financial participant” within the meaning of Sections 101(22), 101(53C) and 101(22A) of the Bankruptcy Code. The parties hereto further agree and acknowledge that the Transaction is (i) a “securities contract” as such term is defined in Section 741(7) of the Bankruptcy Code, in which case each payment and delivery made pursuant to the Transaction is a “termination value,” “payment amount” or “other transfer obligation” within the meaning of Section 362 of the Bankruptcy Code and a “settlement payment,” within the meaning of Section 546 of the Bankruptcy Code and (ii) a “swap agreement,” as such term is defined in Section 101(53B) of the Bankruptcy Code, with respect to which each payment and delivery hereunder or in connection herewith is a “termination value,” “payment amount” or “other transfer obligation” within the meaning of Section 362 of the Bankruptcy Code and a “transfer,” as such term is defined in Section 101(54) of the Bankruptcy Code and a “payment or other transfer of property” within the meaning of Sections 362 and 546 of the Bankruptcy Code, and that Wells Fargo is entitled to the protections afforded by, among other sections, Sections 362(b)(6), 362(b)(17), 362(o), 546(e), 546(g), 548(d)(2), 555, 560 and 561 of the Bankruptcy Code.

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(f)    Bankruptcy Status.  Wells Fargo acknowledges and agrees that this Confirmation is not intended to convey to it rights with respect to the transactions contemplated hereby that are senior to the claims of Counterparty’s common stockholders in the event of Counterparty’s bankruptcy; provided, that nothing herein shall be deemed to limit Wells Fargo’s right to pursue remedies in the event of a breach by Counterparty of its obligations and agreements with respect to this Confirmation and the Agreement; and provided, further, that nothing in this paragraph shall limit or shall be deemed to limit Wells Fargo’s rights in respect of any transaction other than the Transaction.
(g)    No Collateral or Setoff.  Notwithstanding any provision of this Confirmation, the Agreement, or any other agreement between the parties to the contrary, the obligations of Counterparty under the Transaction are not secured by any collateral.  Wells Fargo agrees not to set off or net amounts due from Counterparty with respect to the Transaction against amounts due from Wells Fargo to Counterparty under obligations other than Equity Contracts.  “Equity Contract” means any transaction relating to Shares between the parties (or any of their affiliates) that qualifies as ‘equity’ under applicable accounting rules.
(h)    Additional Termination Events.  Notwithstanding any other provision hereof, an Additional Termination Event shall occur and Counterparty shall be the sole Affected Party pursuant to such Additional Termination Event if: (i) at any time on or prior to the final Valuation Date, the price per Share on the Exchange, as determined by the Calculation Agent, is at or below the Threshold Price as specified in Appendix A; or (ii) Counterparty declares an Excess Dividend or an Extraordinary Dividend, in either case, with an ex-dividend date that occurs or is scheduled to occur during the Relevant Dividend Period.  For the avoidance of doubt, no such Excess Dividend or Extraordinary Dividend shall constitute a Potential Adjustment Event.
(i)    Maximum Share Delivery.  Notwithstanding anything to the contrary in this Confirmation, in no event shall Wells Fargo be required to deliver any Shares, or any Shares or other securities comprising Alternative Termination Delivery Units, in respect of the Transaction in excess of 50,285,392 Shares.
(j)    Agreements to Deliver Documents.  Counterparty agrees to complete, execute, and deliver to Wells Fargo, United States Internal Revenue Service Form W-9, or any successor of such form, (i) upon execution of this Confirmation, (ii) promptly upon reasonable demand by Wells Fargo, and (iii) promptly upon learning that any such form previously provided by it has become obsolete or incorrect.
(k)    Counterparty Purchases.  Without the prior written consent of Wells Fargo, Counterparty shall not, and shall cause its “affiliates” and “affiliated purchasers” (each as defined in Rule 10b-18) not to, directly or indirectly (including, without limitation, by means of a derivative) purchase, offer to purchase, place any bid or limit order that would effect a purchase of, or commence any tender offer relating to, any Shares (or an equivalent interest, including a unit of beneficial interest in a 
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trust or limited partnership or a depository share) or any security convertible into or exchangeable for Shares during the Averaging Period, Settlement Valuation Period or Termination Purchase Period.
(l)    Merger-related Transactions.  During the Averaging Period, Settlement Valuation Period and Termination Purchase Period, as applicable, Counterparty shall (i) not make, or permit to be made, any public announcement (as defined in Rule 165(f) under the Securities Act) of any Merger Transaction or potential Merger Transaction (a “Merger Announcement”) unless such Merger Announcement is made prior to the opening or after the close of the regular trading session on the Exchange for the Shares, (ii) notify Wells Fargo prior to the opening of trading in the Shares on any day on which Counterparty makes, or expects to be made, any Merger Announcement, (iii) promptly notify Wells Fargo following any such Merger Announcement that such Merger Announcement has been made, and (iv) promptly deliver to Wells Fargo following the making of any such Merger Announcement a certificate indicating (A) Counterparty’s average daily Rule 10b-18 purchases (as defined in Rule 10b-18) during the three full calendar months preceding the date of the Merger Announcement and (B) Counterparty’s block purchases (as defined in Rule 10b-18) effected pursuant to paragraph (b)(4) of Rule 10b-18 during the three full calendar months preceding the date of the Merger Announcement.  In addition, Counterparty shall promptly notify Wells Fargo of the earlier to occur of the completion of any Merger Transaction and the completion of the vote by target shareholders.  Accordingly, Counterparty acknowledges that its actions in relation to any Merger Announcement or Merger Transaction must comply with the standards set forth in Section 6(b) above.  Upon the occurrence of any Merger Announcement, the Calculation Agent may (i) make adjustments to the terms of the Transaction, including, without limitation, the Settlement Price Adjustment, with quantitative adjustments being made solely to account for changes in the price of shares, volatility and other commercially reasonable option pricing inputs and/or the effects of the merger announcement on Wells Fargo's commercially reasonable market activity, and/or suspend the Averaging Period, Settlement Valuation Period and/or Termination Purchase Period or (ii) treat the occurrence of such Merger Announcement as an Additional Termination Event with Counterparty as the sole Affected Party and the Transaction hereunder as the Affected Transaction and with the amount under Section 6(e) of the Agreement determined taking into account the fact that the Averaging Period, Settlement Valuation Period and/or Termination Purchase Period, as the case may be, had fewer Scheduled Trading Days than originally anticipated. “Merger Transaction” means any merger, acquisition, or similar transaction involving a recapitalization relating to Counterparty, other than, solely for purposes of this clause (l), any such transaction in which the consideration consists solely of cash and there is no valuation period.
(m)    Acknowledgments and Agreements Regarding Hedging.  Counterparty acknowledges and agrees that (i) during the Averaging Period, Wells Fargo and its affiliates may (x) buy or sell Shares or other securities or buy or sell options or futures contracts or enter into swaps or other derivative securities in order to 
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adjust its hedge position with respect to the Transaction and (y) be active in the market for Shares other than in connection with hedging activities in relation to the Transaction, (ii) Wells Fargo shall make its own determination as to whether, when or in what manner any hedging or market activities in Counterparty’s securities shall be conducted and shall do so in a manner that it deems appropriate to hedge its price and market risk with respect to the Settlement Price and/or the VWAP Price and (iii) any market activities of Wells Fargo and its affiliates with respect to Shares may affect the market price and volatility of Shares, as well as the Settlement Price, the Cash Settlement Price and/or the VWAP Price, each in a manner that may be adverse to Counterparty.
7.          Regulatory Disruption.
In the event that Wells Fargo reasonably determines, in good faith and based on the advice of counsel, that it is appropriate with regard to any legal, regulatory or self-regulatory requirements or related policies and procedures (whether or not such requirements, policies or procedures are imposed by law or have been voluntarily adopted by Wells Fargo) that are generally applicable to accelerated repurchase share transactions, consistently applied, and imposed by, or related to its compliance with, applicable law (including, without limitation, Rule 10b-18, Rule 10b-5, Regulation 13D-G and Regulation 14E), to refrain from purchasing Shares or to purchase fewer than the number of Shares than would otherwise be expected to be purchased in a commercially reasonable manner on any Scheduled Trading Day during the duration of the Transaction, then Wells Fargo may, in its reasonable discretion, elect to deem that a Market Disruption Event has occurred and will be continuing on such Scheduled Trading Day or Days. Wells Fargo shall notify Counterparty upon the exercise of Wells Fargo’s rights pursuant to this Section 7 and shall subsequently notify Counterparty on the day Wells Fargo believes that the circumstances giving rise to such exercise have changed.  If the Averaging Period is suspended pursuant to this Section 7, at the end of such suspension Wells Fargo shall determine the number of Scheduled Trading Days remaining in the Averaging Period, as appropriate, and the terms of the Transaction shall be adjusted by the Calculation Agent.  
8.          Special Provisions regarding Acquisition Transaction Announcements.
(a)    If an Acquisition Transaction Announcement occurs on or prior to the final Settlement Date, then the Calculation Agent shall make such adjustments to the exercise, settlement, payment or any other terms of the Transaction (including, without limitation, the Number of Shares to be Delivered and the Settlement Price Adjustment) as the Calculation Agent determines appropriate, at such time or at multiple times as the Calculation Agent determines appropriate, to account for the economic effect on the Transaction of such Acquisition Transaction Announcement (including adjustments to account solely for changes in stock price, volatility, expected dividends and stock loan rate relative to the relevant Shares, to the Transaction or to commercially reasonable hedge positions in respect of the Transaction).  If an Acquisition Transaction Announcement occurs after the Trade Date, but prior to the Scheduled Earliest Acceleration Date, the Scheduled Earliest Acceleration Date shall be the date of such Acquisition Transaction 
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Announcement. If, after giving effect to any such adjustment, the Number of Shares to be Delivered for any settlement of the Transaction is a negative number, then the terms of the Counterparty Settlement Provisions in Annex A shall apply.
(b)    “Acquisition Transaction Announcement” means (i) the announcement of an Acquisition Transaction or an event that, if consummated, would result in an Acquisition Transaction, (ii) an announcement that Counterparty or any of its subsidiaries has entered into an agreement, a letter of intent or an understanding designed to result in an Acquisition Transaction, (iii) the announcement of the intention to solicit or enter into, or to explore strategic alternatives or other similar undertaking that may include, an Acquisition Transaction, (iv) any other announcement that in the commercially reasonable judgment of the Calculation Agent may result in an Acquisition Transaction, or (v) any announcement of any change or amendment to any previous Acquisition Transaction Announcement (including any announcement of the abandonment of any such previously announced Acquisition Transaction, agreement, letter of intent, understanding or intention). For the avoidance of doubt, announcements as used in the definition of Acquisition Transaction Announcement refer to any public announcement whether made by Counterparty or a third party.
(c)    “Acquisition Transaction” means (i) any Merger Event (for purposes of this definition the definition of Merger Event shall be read with the references therein to “100%” being replaced by “25%” and to “50%” by “75%” and without reference to the clause beginning immediately following the definition of Reverse Merger therein to the end of such definition), Tender Offer or Merger Transaction or any other transaction involving the merger of Counterparty with or into any third party, (ii) the sale or transfer of all or substantially all of the assets of Counterparty, (iii) a recapitalization, reclassification, binding share exchange or other similar transaction with respect to Counterparty, (iv) any acquisition, lease, exchange, transfer, disposition (including by way of spin-off or distribution) of assets (including any capital stock or other ownership interests in subsidiaries) or other similar event by Counterparty or any of its subsidiaries where the aggregate consideration transferable or receivable by or to Counterparty or its subsidiaries exceeds 15% of the market capitalization of Counterparty and (v) any transaction in which Counterparty or its board of directors has a legal obligation to make a recommendation to its shareholders in respect of such transaction (whether pursuant to Rule 14e-2 under the Exchange Act or otherwise).
9.          Staggered Settlement.
Notwithstanding anything to the contrary herein, Wells Fargo may, by prior notice to Counterparty, satisfy its obligation to deliver any Shares or other securities on any date due (an “Original Delivery Date”) by making separate deliveries of Shares or such securities, as the case may be, at more than one time on or prior to such Original Delivery Date, so long as the aggregate number of Shares and other securities so delivered at more than one time on or prior to such Original Delivery Date is equal to the number otherwise required to be delivered on such Original Delivery Date.

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10.    Transfer and Assignment.
Notwithstanding anything in Section 7 of the Agreement to the contrary, Wells Fargo may transfer in whole but not in part its rights and obligations under the Agreement as supplemented by this Confirmation to any Affiliate of Wells Fargo upon three Local Business Days' prior notice to Counterparty, provided that (i) such notice is accompanied by a written instrument pursuant to which for the benefit of Counterparty the transferee acquires and assumes the rights and obligations of Wells Fargo so transferred, (ii) such notice is accompanied by an unconditional guarantee of payment by Wells Fargo in favor of Counterparty of the transferee's obligations so acquired and assumed in form and substance reasonably satisfactory to Counterparty, (iii) Counterparty will not as a result of such transfer be required on the next Scheduled Settlement Date to pay to the transferee an additional amount in respect of an Indemnifiable Tax under Section 2(d)(i)(4) (except in respect of interest under Section 9(h)) greater than the amount that Counterparty would have been required to pay to Wells Fargo absent such transfer, (iv) Counterparty will not as a result of such transfer receive on the next Scheduled Settlement Date, by reason of any deduction or withholding for or on account of a Tax (except in respect of interest under Section 9(h), but after giving effect to the payment of any additional amount required to be paid under Section 2(d)(i)(4)), a payment from the transferee in an amount less than it would have received had such transfer not occurred, (v) no Event of Default or Termination Event occurs as a result of such transfer and (vi) such transfer is made to a transferee that is organized under the law of a jurisdiction as to which an opinion has been rendered to ISDA to the effect that the provisions of Section 6 of this Agreement are enforceable against such transferee, including following the occurrence of an Event of Default specified in Section 5(a)(vii)(1), (3), (4), (5), (6) or, to the extent analogous thereto, (8) with respect to such transferee. 

11.    Limit on Beneficial Ownership.  
Notwithstanding anything to the contrary in this Confirmation, Counterparty acknowledges and agrees that, on any day, Wells Fargo shall not be obligated or entitled to receive from Counterparty any Shares, and Counterparty shall not be entitled to deliver to Wells Fargo any Shares, to the extent (but only to the extent) that, after such receipt of any Shares hereunder, (i) the Section 16 Percentage would exceed 8.0%, or (ii) the Share Amount would exceed the Applicable Share Limit.  Any purported delivery hereunder shall be void and have no effect to the extent (but only to the extent) that, after such delivery, (i) the Section 16 Percentage would exceed 8.0%, or (ii) the Share Amount would exceed the Applicable Share Limit.  If any delivery owed to Wells Fargo hereunder is not made, in whole or in part, as a result of this provision, Counterparty’s obligation to make such delivery shall not be extinguished and Counterparty shall make such delivery as promptly as practicable after, but in no event later than one Exchange Business Day after, Wells Fargo gives notice to Counterparty that, after such delivery, (i) the Section 16 Percentage would not exceed 8.0%, and (ii) the Share Amount would not exceed the Applicable Share Limit.  The “Section 16 Percentage” as of any day is the fraction, expressed as a percentage, (A) the numerator of which is the number of Shares that Wells Fargo and any of its affiliates or any other person subject to aggregation with Wells Fargo for purposes of the “beneficial ownership” test under Section 13 of the Exchange Act, or any “group” 

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(within the meaning of Section 13 of the Exchange Act) of which Wells Fargo is or may be deemed to be a part beneficially owns (within the meaning of Section 13 of the Exchange Act), without duplication, on such day (or, to the extent that for any reason the equivalent calculation under Section 16 of the Exchange Act and the rules and regulations thereunder results in a higher number, such higher number) and (B) the denominator of which is the number of Shares outstanding on such day.  The “Share Amount” as of any day is the number of Shares that Wells Fargo and any person whose ownership position would be aggregated with that of Wells Fargo (Wells Fargo or any such person, a “Wells Fargo Person”) under any law, rule, regulation, regulatory order or organizational documents or contracts of Counterparty that are, in each case, applicable to ownership of Shares (“Applicable Restrictions”), owns, beneficially owns, constructively owns, controls, holds the power to vote or otherwise meets a relevant definition of ownership under any Applicable Restriction, as determined by Wells Fargo in its commercially reasonable discretion.  The “Applicable Share Limit” means a number of Shares equal to (A) the minimum number of Shares that could give rise to reporting or registration obligations or other requirements (including obtaining prior approval from any person or entity) of a Wells Fargo Person, or could result in an adverse effect on a Wells Fargo Person, under any Applicable Restriction, as determined by Wells Fargo in its commercially reasonable discretion, minus (B) 1% of the number of Shares outstanding.

12.    Registration Provisions.  
Counterparty hereby agrees that if, in the good faith and commercially reasonable judgment of Wells Fargo, any Shares acquired by Wells Fargo for the purpose of hedging its obligations pursuant to the Transaction cannot be sold in the public market by Wells Fargo without registration under the Securities Act, Counterparty shall, at its election: (i) in order to allow Wells Fargo to sell such Shares in a registered offering, make available to Wells Fargo an effective registration statement under the Securities Act to cover the resale of such Shares and (A) enter into an agreement, in form and substance satisfactory to Wells Fargo, substantially in the form of an underwriting agreement for a registered offering of similar size, (B) provide accountant’s “comfort” letters in customary form for registered offerings of equity securities of similar size, (C) provide disclosure opinions of nationally recognized outside counsel to Counterparty reasonably acceptable to Wells Fargo, (D) provide other customary opinions, certificates and closing documents customary in form for registered offerings of equity securities of similar size and (E) afford Wells Fargo a reasonable opportunity to conduct a “due diligence” investigation with respect to Counterparty customary in scope for underwritten offerings of equity securities of similar size; provided that if Wells Fargo, in its good faith discretion, is not satisfied with access to due diligence materials, the results of its due diligence investigation, or the procedures and documentation for the registered offering referred to above, then clause (ii) or clause (iii) of this Section 12 shall apply at the election of Counterparty; (ii) in order to allow Wells Fargo to sell such Shares in a private placement, enter into a private placement agreement substantially similar to private placement purchase agreements customary for private placements of equity securities of similar size, in form and substance satisfactory to Wells Fargo, including customary representations, covenants, blue sky and other governmental filings and/or registrations, indemnities to Wells Fargo, due diligence rights (for Wells Fargo or any designated buyer or buyers of the Shares from Wells Fargo), 
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opinions and certificates and such other documentation as is customary for private placements agreements, all commercially reasonably acceptable to Wells Fargo (in which case, the Calculation Agent shall make any adjustments to the terms of the Transaction that are necessary, using commercially reasonable judgment, to compensate Wells Fargo for any discount from the public market price of the Shares incurred on the sale of such Shares in a private placement); or (iii) purchase the Shares from Wells Fargo at the then-current market price on such Exchange Business Days, and in the amount(s) and at such time(s), requested by Wells Fargo.

13.    Calculations and Payment Date upon Early Termination.  
The parties acknowledge and agree that in calculating (a) the Close-Out Amount pursuant to Section 6 of the Agreement and (b) the amount due upon cancellation or termination of the Transaction (whether in whole or in part) pursuant to Article 12 of the Equity Definitions as a result of an Extraordinary Event, Wells Fargo may (but need not) determine such amount based on (i) expected losses assuming a commercially reasonable (including, without limitation, with regard to reasonable legal and regulatory guidelines) risk bid were used to determine loss or (ii) the price at which one or more market participants would offer to sell to Wells Fargo a block of Shares equal in number to Wells Fargo’s hedge position in relation to the Transaction.  Any such determination shall be made in good faith and on a commercially reasonable basis.  Notwithstanding anything to the contrary in Section 6(d)(ii) of the Agreement or Article 12 of the Equity Definitions, all amounts calculated as being due in respect of an Early Termination Date under Section 6(e) of the Agreement or upon cancellation or termination of the Transaction under Article 12 of the Equity Definitions will be payable on the day that notice of the amount payable is effective; provided that if Counterparty elects to receive or deliver Shares or Alternative Termination Property in accordance with the language opposite the caption “Alternative Termination Settlement” above, such Shares or Alternative Termination Property shall be delivered by Wells Fargo as promptly as practicable.

14.    Counterparts.  
This Confirmation may be executed in any number of counterparts, all of which shall constitute one and the same instrument, and any party hereto may execute this Confirmation by signing and delivering one or more counterparts.

15.    Waiver of Trial by Jury.  
EACH PARTY HEREBY IRREVOCABLY WAIVES (ON ITS OWN BEHALF AND, TO THE EXTENT PERMITTED BY APPLICABLE LAW, ON BEHALF OF ITS STOCKHOLDERS) ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO THE TRANSACTION OR THE ACTIONS OF WELLS FARGO OR ITS AFFILIATES IN THE NEGOTIATION, PERFORMANCE OR ENFORCEMENT HEREOF.

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16.    Adjustments.  
For the avoidance of doubt, whenever Wells Fargo, the Calculation Agent or the Determining Party is called upon to make an adjustment or determination pursuant to the terms of this Confirmation or the Equity Definitions to take into account the effect of an event, Wells Fargo, the Calculation Agent or the Determining Party, as the case may be, shall make such adjustment or determination by reference to the effect of such event on the Hedging Party, assuming that the Hedging Party maintains a commercially reasonable Hedge Position at the time of the event.
17.    Amendments to the Equity Definitions.  
(a)    Section 11.2(a) of the Equity Definitions is hereby amended by deleting the words “a diluting or concentrative effect on the theoretical value of the relevant Shares” and replacing them with the words “a material effect on economic benefit afforded to the Buyer or Seller under the relevant Transaction”.
(b)    Section 11.2(c) of the Equity Definitions is hereby amended by (i) replacing the words “a diluting or concentrative” with “a material” in the fifth line thereof, (ii) adding the phrase “or such Transaction” after the words “the relevant Shares” in the same sentence, (iii) deleting the words “dilutive or concentrative” in the sixth to last line thereof and inserting the word "material", and (iv) deleting the phrase “(provided that no adjustments will be made to account solely for changes in volatility, expected dividends or stock loan rate relative to the relevant Shares)” and replacing it with the phrase “(and, for the avoidance of doubt, adjustments may be made to account solely for changes in volatility, expected dividends and stock loan rate relative to the relevant Shares).”
(c)    Section 11.2(e)(vii) of the Equity Definitions is hereby amended by deleting the words “a diluting or concentrative” and replacing them with the word “a material”; and adding the phrase “or the relevant Transaction” at the end of the sentence.
(d)    Section 12.6(c)(ii) of the Equity Definitions is hereby amended by replacing the words “the Transaction will be cancelled,” in the first line with the words “Seller will have the right to cancel the Transaction,”.
(e)    Section 12.9(b)(iv) of the Equity Definitions is hereby amended by (A) deleting (1) subsection (A) in its entirety, (2) the phrase “or (B)” following subsection (A) and (3) the phrase “in each case” in subsection (B); and (B) deleting the phrase “neither the Non-Hedging Party nor the Lending Party lends Shares in the amount of the Hedging Shares or” in the penultimate sentence.
(f)    Section 12.9(b)(v) of the Equity Definitions is hereby amended by:
(i)    adding the word “or” immediately before subsection “(B)” and deleting the comma at the end of subsection (A); and

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(ii)    (1) deleting subsection (C) in its entirety, (2) deleting the word “or” immediately preceding subsection (C), (3) deleting the penultimate sentence in its entirety and replacing it with the sentence “The Hedging Party will determine the Cancellation Amount payable by one party to the other” and (4) deleting clause (X) in the final sentence.

18.    Wall Street Transparency and Accountability Act.  In connection with Section 739 of the Wall Street Transparency and Accountability Act of 2010 (“WSTAA”), the parties hereby agree that neither the enactment of WSTAA or any regulation under the WSTAA, nor any requirement under WSTAA or an amendment made by WSTAA, nor any similar legal certainty provision in any legislation enacted, or rule or regulation promulgated, on or after the date of this Confirmation, shall limit or otherwise impair either party’s otherwise applicable rights to terminate, renegotiate, modify, amend or supplement this Confirmation or the Agreement, as applicable, arising from a termination event, force majeure, illegality, increased costs, regulatory change or similar event under this Confirmation, the Equity Definitions incorporated herein, or the Agreement (including, without limitation, rights arising from Change in Law, Loss of Stock Borrow, Increased Cost of Stock Borrow, Hedging Disruption, Increased Cost of Hedging, or Illegality).

19.    US QFC Stay Rules
The parties agree that (i) to the extent that prior to the date hereof all parties have adhered to the 2018 ISDA U.S. Resolution Stay Protocol (the “Protocol”), the terms of the Protocol are incorporated into and form a part of this Agreement, and for such purposes this Agreement shall be deemed a Protocol Covered Agreement and each party shall be deemed to have the same status as Regulated Entity and/or Adhering Party as applicable to it under the Protocol; (ii) to the extent that prior to the date hereof the parties have executed a separate agreement the effect of which is to amend the qualified financial contracts between them to conform with the requirements of the QFC Stay Rules (the “Bilateral Agreement”), the terms of the Bilateral Agreement are incorporated into and form a part of this Agreement and each party shall be deemed to have the status of “Covered Entity” or “Counterparty Entity” (or other similar term) as applicable to it under the Bilateral Agreement; or (iii) if clause (i) and clause (ii) do not apply, the terms of Section 1 and Section 2 and the related defined terms (together, the “Bilateral Terms”) of the form of bilateral template entitled “Full-Length Omnibus (for use between U.S. G-SIBs and Corporate Groups)” published by ISDA on November 2, 2018 (currently available on the 2018 ISDA U.S. Resolution Stay Protocol page at www.isda.org and, a copy of which is available upon request), the effect of which is to amend the qualified financial contracts between the parties thereto to conform with the requirements of the QFC Stay Rules, are hereby incorporated into and form a part of this Agreement, and for such purposes this Agreement shall be deemed a “Covered Agreement,” Wells Fargo Bank, National Association shall be deemed “Covered Entity” and Sonoco Products Company shall be deemed a “Counterparty Entity.” In the event that, after the date of this Agreement, all parties hereto become adhering parties to the Protocol, the terms of the Protocol will replace the terms of this paragraph . In the event of any inconsistencies between this Agreement and the terms of the Protocol, the Bilateral Agreement or the Bilateral Terms (each, the “QFC Stay Terms”), as applicable, the QFC Stay Terms will govern. Terms used in this paragraph without definition shall have the meanings assigned to them under the QFC Stay Rules. 
29

For purposes of this paragraph, references to “this Agreement” include any related credit enhancements entered into between the parties or provided by one to the other.

“QFC Stay Rules” means the regulations codified at 12 C.F.R. 252.2, 252.81–8, 12 C.F.R. 382.1-7 and 12 C.F.R. 47.1-8, which, subject to limited exceptions, require an express recognition of the stay-and-transfer powers of the FDIC under the Federal Deposit Insurance Act and the Orderly Liquidation Authority under Title II of the Dodd Frank Wall Street Reform and Consumer Protection Act and the override of default rights related directly or indirectly to the entry of an affiliate into certain insolvency proceedings and any restrictions on the transfer of any covered affiliate credit enhancements.   

20.    CARES Act

Counterparty (x) represents and warrants that it has not, as of the Trade Date, applied for or received a loan, loan guarantee, direct loan (as that term is defined in the Coronavirus Aid, Relief and Economic Security Act (the "CARES Act")) and is not in material breach of any Material Governmental Restrictions (as hereinafter defined) under any or other investment, or any financial assistance or relief under any program or facility (collectively "Financial Assistance") that (a) is established under applicable law (whether in existence as of the Trade Date or subsequently enacted, adopted or amended), including without limitation the CARES Act and the Federal Reserve Act, as amended, and (b) (i) requires under applicable law (or any regulation, guidance, interpretation or other pronouncement of a governmental authority with jurisdiction for such program or facility) as a condition of such Financial Assistance, that Counterparty comply with certain a requirements (the "Material Governmental Restrictions") not to, or otherwise agree, attest, certify or warrant that it has not, as of the date specified in such condition, repurchased, or will not repurchase, any equity security of Counterparty, and that it has not, as of the date specified in the condition, made a capital distribution or will make a capital distribution, or (ii) for which the terms of the Transaction would cause Counterparty to fail to satisfy any condition for application for or receipt or retention of the Financial Assistance and (y) acknowledges that entering into the Transaction may limit its ability to receive such loan, loan guarantee, or direct loan Financial Assistance.

21.     Elections in respect of the Agreement

(a)    The "Cross Default" provisions of Section 5(a)(vi) of the Agreement, modified as provided below, will apply to each party:

(i)  With respect to Wells Fargo:
"Specified Indebtedness" will have the meaning specified in Section 14 of the Agreement; provided that a "Cross Default" under Section 5(a)(vi) of the Agreement shall not occur in the event that, with respect to deposits made with Wells Fargo, such deposits have become due, but the repayment or release thereof has been prevented as a result of any decree, regulation, law or other action taken by any governmental body, agency or other such authority, which action is unrelated to such party's ability to pay deposits when 
30

due in the ordinary course of business and other than any such action resulting from the bankruptcy of such party.
"Threshold Amount" means 3% of the stockholders' equity of Wells Fargo (determined in accordance with generally accepted accounting principles in effect in the United States) as of the last day of its most recent financial statements (or the equivalent USD amount).
(ii)  With respect to Counterparty:

A "Cross Default" under Section 5(a)(vi) of the Agreement shall only occur if there is a default under the agreement relating to Specified Indebtedness which has resulted in such Specified Indebtedness being declared due and payable before it would otherwise have been due and payable.
"Specified Indebtedness" shall have the meaning given to such term in Section 14 of the Agreement.
"Threshold Amount" means with respect to Counterparty, $50,000,000.00 or the equivalent thereof in other currency.  

(b)    "Credit Event Upon Merger" will apply to each party.

(c)    Section 10(a) of the Agreement applies.

(d)    Neither party is a "Multibranch Party".

(e)    Neither party shall be a party to any Credit Support Document.

(f)    Neither party will have any Specified Entity or Credit Support Provider.

(g)    The "Termination Currency" shall be USD

(h)     The governing law for purposes of the Agreement and the Transaction shall be the law of the State of New York (without giving effect to any conflicts of law principles that would result in the application of the law of any other jurisdiction).

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Please confirm that the foregoing correctly sets forth the terms of our agreement by executing a copy of this Confirmation and returning it to CorporateDerivativeNotifications@wellsfargo.com.

									
	WELLS FARGO BANK, NATIONAL		SONOCO PRODUCTS COMPANY
	ASSOCIATION		
			
	By:  /s/Thomas Yates                                                                
		By:  /s/Julie Albrecht                                                                

			
	Name:  Thomas Yates		Name:  Julie Albrecht
	Title:     Managing Director		Title:      VP, CFO
			
			
			

Appendix A

						
	Prepayment Date:	One Exchange Business Day following the Trade Date.
		
	Prepayment Amount:	USD[***]
		
	Initial Shares:	[***] Shares; provided that, if Seller is unable to borrow or otherwise acquire a number of Shares equal to the Initial Shares for delivery to Buyer on the Initial Share Delivery Date, the Initial Shares delivered on the Initial Share Delivery Date shall be reduced to such number of Shares that Seller is able to so borrow or otherwise acquire and thereafter Seller shall continue to use commercially reasonable efforts to borrow or otherwise acquire a number of Shares, at a stock borrow cost no greater than the Initial Stock Loan Rate, equal to the shortfall in the Initial Shares and to deliver such additional Shares as soon as reasonably practicable (it being understood, for the avoidance of doubt, that in using such commercially reasonable efforts Seller shall act in good faith and in accordance with its then current policies, practices and procedures (including without limitation any policies, practices or procedures relating to counterparty risk, market risk, reputational risk, credit, documentation, legal, regulatory capital, compliance and collateral), and shall not be required to enter into any securities lending transaction or transact with any potential securities lender if such transaction would not be in accordance with such policies, practices and procedures). For the avoidance of doubt, the aggregate of all Shares delivered to Buyer in respect of the Transaction pursuant to this paragraph shall be the “Initial Shares” for purposes of “Number of Shares to be Delivered” in the Confirmation. 
		
	Valuation Date:	[***] (or if such date is not an Exchange Business Day, the next following Exchange Business Day); provided that Seller shall have the right in its absolute discretion, to accelerate the Valuation Date for all or any part of the Transaction (each, an “Accelerated Valuation Date”) to any date that is on or after the Scheduled Earliest Acceleration Date, by giving notice prior to 7:00 p.m. (New York City time) on the Exchange Business Day following such date (each, an “Acceleration Notice”).  Seller shall specify in each Acceleration Notice the portion of the Prepayment Amount that is subject to acceleration (which may be less than the full Prepayment Amount). If the portion of the Prepayment Amount that is subject to acceleration is less than the full Prepayment Amount, then the Calculation Agent shall adjust the terms of the Transaction as appropriate in order to take into account the occurrence of such Accelerated Valuation Date (including cumulative adjustments to take into 

Appendix A - Page 1

Appendix A

						
		account the occurrence of such Accelerated Valuation Date (including cumulative adjustments to take into account all prior Accelerated Valuation Dates).
		
	Scheduled Earliest Acceleration Date:	[***]
		
	Averaging Period Start  Date:	[***]
		
	Settlement Price        Adjustment:	USD[***]
		
	Ordinary Dividend       Amount:	USD 0.45
		
	Expected Ex-Dividend   Date:	[***]
		
	Maximum Stock Loan        Rate:	[***] bps
		
	Initial Stock Loan Rate:	[***] bps
		
	Threshold Price:	USD[***] per Share

Annex A

Buyer Settlement Provisions

1.    The following Buyer Settlement Provisions shall apply to the Transaction to the extent indicated under the Confirmation: 
						
	Settlement Currency:	USD
		
	Settlement Method Election:	Applicable; provided that (i) Section 7.1 of the Equity Definitions is hereby amended by deleting the word “Physical” in the sixth line thereof and replacing it with the words “Net Share” and (ii) the Electing Party may make a settlement method election only if the Electing Party represents and warrants to Wells Fargo in writing on the date it notifies Wells Fargo of its election that, as of such date, the Electing Party is not aware of any material non-public information regarding the Issuer or the Shares and is making such election in good faith and not as part of a plan or scheme to evade compliance with the federal securities laws.

		
	Electing Party:	Counterparty
		
	Settlement Method Election Date:	The earlier of (i) the scheduled Valuation Date and (ii) the second Exchange Business Day immediately following the Accelerated Valuation Date (in which case the election under Section 7.1 of the Equity Definitions shall be made no later than 10 minutes prior to the open of trading on the Exchange on such second Exchange Business Day), as the case may be.
		
	Default Settlement Method:	Cash Settlement
		
	Forward Cash Settlement Amount:	An amount equal to (a) the Number of Shares to be Delivered, multiplied by (b) the Cash Settlement Price.

		
	Cash Settlement Price:	An amount equal to the arithmetic average of the VWAP Prices for the Exchange Business Days in the Settlement Valuation Period, subject to Valuation Disruption as specified in the Confirmation. 
		
	Settlement Valuation Period:	A number of Scheduled Trading Days over a commercially reasonable period (and selected by Wells Fargo in a commercially reasonable manner) to unwind a commercially reasonable hedge position, beginning on the Scheduled Trading Day 

Annex A - Page 1

						
		immediately following the earlier of (i) the scheduled Valuation Date or (ii) the Exchange Business Day immediately following the Valuation Date. 
		
	Cash Settlement:	If Cash Settlement is applicable, then Counterparty shall pay to Wells Fargo the absolute value of the Forward Cash Settlement Amount on the Cash Settlement Payment Date.
		
	Cash Settlement Payment Date:	The Exchange Business Day immediately following the last day of the Settlement Valuation Period.
		
	Net Share Settlement Procedures:	If Net Share Settlement is applicable, Net Share Settlement shall be made in accordance with paragraphs 2 through 7 below.

2.    Net Share Settlement shall be made by delivery on the Cash Settlement Payment Date of a number of Shares satisfying the conditions set forth in paragraph 3 below (the “Registered Settlement Shares”), or a number of Shares not satisfying such conditions (the “Unregistered Settlement Shares”), in either case with a value equal to the absolute value of the Forward Cash Settlement Amount, with such Shares’ value based on the value thereof to Wells Fargo (which value shall, in the case of Unregistered Settlement Shares, take into account a commercially reasonable illiquidity discount), in each case as determined by the Calculation Agent.  If all of the conditions for delivery of either Registered Settlement Shares or Unregistered Settlement Shares have not been satisfied, Cash Settlement shall be applicable in accordance with paragraph 1 above notwithstanding Counterparty’s election of Net Share Settlement.

3.    Counterparty may only deliver Registered Settlement Shares pursuant to paragraph 2 above if: 
(a)    a registration statement covering public resale of the Registered Settlement Shares by Wells Fargo (the “Registration Statement”) shall have been filed with the Securities and Exchange Commission under the Securities Act and been declared or otherwise become effective on or prior to the date of delivery, and no stop order shall be in effect with respect to the Registration Statement; a printed prospectus relating to the Registered Settlement Shares (including, without limitation, any prospectus supplement thereto, the “Prospectus”) shall have been delivered to Wells Fargo, in such quantities as Wells Fargo shall reasonably have requested, on or prior to the date of delivery; 
(b)    the form and content of the Registration Statement and the Prospectus (including, without limitation, any sections describing the plan of distribution) shall be satisfactory to Wells Fargo; 
(c)    as of or prior to the date of delivery, Wells Fargo and its agents shall have been afforded a reasonable opportunity to conduct a due diligence investigation with respect to Counterparty customary in scope for underwritten offerings of equity securities and the results of such investigation are satisfactory to Wells Fargo, in its discretion; and 
Annex A - Page 2

(d)    as of the date of delivery, an agreement (the “Underwriting Agreement”) shall have been entered into with Wells Fargo in connection with the public resale of the Registered Settlement Shares by Wells Fargo substantially similar to underwriting agreements customary for underwritten offerings of equity securities, in form and substance satisfactory to Wells Fargo, which Underwriting Agreement shall include, without limitation, provisions substantially similar to those contained in such underwriting agreements relating, without limitation, to the indemnification of, and contribution in connection with the liability of, Wells Fargo and its affiliates and the provision of customary opinions, accountants’ comfort letters and lawyers’ negative assurance letters.

4.    If Counterparty delivers Unregistered Settlement Shares pursuant to paragraph 2 above: 
(a)    all Unregistered Settlement Shares shall be delivered to Wells Fargo (or any affiliate of Wells Fargo designated by Wells Fargo) pursuant to the exemption from the registration requirements of the Securities Act provided by Section 4(a)(2) thereof; 
(b)    as of or prior to the date of delivery, Wells Fargo and any potential purchaser of any such shares from Wells Fargo (or any affiliate of Wells Fargo designated by Wells Fargo) identified by Wells Fargo shall be afforded a commercially reasonable opportunity to conduct a due diligence investigation with respect to Counterparty customary in scope for private placements of equity securities (including, without limitation, the right to have made available to them for inspection all financial and other records, pertinent corporate documents and other information reasonably requested by them);
(c)    as of the date of delivery, Counterparty shall enter into an agreement (a “Private Placement Agreement”) with Wells Fargo (or any affiliate of Wells Fargo designated by Wells Fargo) in connection with the private placement of such shares by Counterparty to Wells Fargo (or any such affiliate) and the private resale of such shares by Wells Fargo (or any such affiliate), substantially similar to private placement purchase agreements customary for private placements of equity securities, in form and substance commercially reasonably satisfactory to Wells Fargo, which Private Placement Agreement shall include, without limitation, provisions substantially similar to those contained in such private placement purchase agreements relating, without limitation, to the indemnification of, and contribution in connection with the liability of, Wells Fargo and its affiliates and the provision of customary opinions, accountants’ comfort letters and lawyers’ negative assurance letters, and shall provide for the payment by Counterparty of all reasonable and documented fees and expenses of Wells Fargo (and any such affiliate) in connection with such resale, including, without limitation, all reasonable and documented fees and expenses of counsel for Wells Fargo, and shall contain representations, warranties, covenants and agreements of Counterparty reasonably necessary or advisable to establish and maintain the availability of an exemption from the registration requirements of the Securities Act for such resales; and 
(d)    in connection with the private placement of such shares by Counterparty to Wells Fargo (or any such affiliate) and the private resale of such shares by Wells Fargo (or any such affiliate), Counterparty shall, if so requested by Wells Fargo, prepare, in cooperation with Wells Fargo, a private placement memorandum in form and substance reasonably satisfactory to Wells Fargo.
Annex A - Page 3

5.    Wells Fargo, itself or through an affiliate (the “Selling Agent”) or any underwriter(s), will sell all, or such lesser portion as may be required hereunder, of the Registered Settlement Shares or Unregistered Settlement Shares and any Makewhole Shares (as defined below) (together, the “Settlement Shares”) delivered by Counterparty to Wells Fargo pursuant to paragraph 6 below commencing on the Cash Settlement Payment Date and continuing until the date on which the aggregate Net Proceeds (as such term is defined below) of such sales, as determined by Wells Fargo, is equal to the absolute value of the Forward Cash Settlement Amount (such date, the “Final Resale Date”).  If the proceeds of any sale(s) made by Wells Fargo, the Selling Agent or any underwriter(s), net of any fees and commissions (including, without limitation, underwriting or placement fees) customary for similar transactions under the circumstances at the time of the offering, together with reasonable and documented carrying charges and expenses incurred in connection with the offer and sale of the Shares (including, without limitation, the covering of any over-allotment or short position (syndicate or otherwise)) (the “Net Proceeds”) exceed the absolute value of the Forward Cash Settlement Amount, Wells Fargo will refund, in USD, such excess to Counterparty on the date that is three (3) Currency Business Days following the Final Resale Date, and, if any portion of the Settlement Shares remains unsold, Wells Fargo shall return to Counterparty on that date such unsold Shares.
6.    If the Calculation Agent determines that the Net Proceeds received from the sale of the Registered Settlement Shares or Unregistered Settlement Shares or any Makewhole Shares, if any, pursuant to this paragraph 6 are less than the absolute value of the Forward Cash Settlement Amount (the amount in USD by which the Net Proceeds are less than the absolute value of the Forward Cash Settlement Amount being the “Shortfall” and the date on which such determination is made, the “Deficiency Determination Date”), Counterparty shall on the Exchange Business Day next succeeding the Deficiency Determination Date (the “Makewhole Notice Date”) deliver to Wells Fargo, through the Selling Agent, a notice of Counterparty’s election that Counterparty shall either (i) pay an amount in cash equal to the Shortfall on the day that is one Currency Business Day after the Makewhole Notice Date, or (ii) deliver additional Shares.  If Counterparty elects to deliver to Wells Fargo additional Shares, then Counterparty shall deliver additional Shares in compliance with the terms and conditions of paragraph 3 or paragraph 4 above, as the case may be (the “Makewhole Shares”), on the first Clearance System Business Day which is also an Exchange Business Day following the Makewhole Notice Date in such number as the Calculation Agent reasonably believes would have a market value on that Exchange Business Day equal to the Shortfall.  Such Makewhole Shares shall be sold by Wells Fargo in accordance with the provisions above; provided that if the sum of the Net Proceeds from the sale of the originally delivered Shares and the Net Proceeds from the sale of any Makewhole Shares is less than the absolute value of the Forward Cash Settlement Amount then Counterparty shall, at its election, either make such cash payment or deliver to Wells Fargo further Makewhole Shares until such Shortfall has been reduced to zero.
7.    Notwithstanding the foregoing, in no event shall the aggregate number of Settlement Shares for the Transaction be greater than the Reserved Shares (such number, the “Capped Number”).  Counterparty represents and warrants (which shall be deemed to be repeated on each day that the Transaction is outstanding) that the Capped Number is equal to or less than the number of Shares determined according to the following formula: 
A - B
Annex A - Page 4

									
	Where A	=	the number of authorized but unissued shares of Counterparty that are not reserved for future issuance on the date of the determination of the Capped Number; and
			
	            B	=	the maximum number of Shares required to be delivered to third parties if Counterparty elected Net Share Settlement of all transactions in the Shares (other than the Transaction under this Confirmation) with all third parties that are then currently outstanding and unexercised.

“Reserved Shares” means 4,379,562 Shares.  

If at any time, as a result of this paragraph 7, Counterparty fails to deliver to Wells Fargo any Settlement Shares, Counterparty shall, to the extent that Counterparty has at such time authorized but unissued Shares not reserved for other purposes, promptly notify Wells Fargo thereof and deliver to Wells Fargo a number of Shares not previously delivered as a result of this paragraph 7.  Counterparty agrees to use its best efforts to cause the number of authorized but unissued Shares to be increased, if necessary, to an amount sufficient to permit Counterparty to fulfill its obligation to deliver any Settlement Shares.

Annex A - Page 5

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