Document:

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                                                                   EXHIBIT 10.10

                           CHANGE OF CONTROL AGREEMENT

      This Change of Control Agreement ("Agreement") between Stewart
Enterprises, Inc., a Louisiana corporation (the "Company"), and _____________
(the "Employee") is effective as of November 1, 2004 (the "Change of Control
Agreement Date").

                                    ARTICLE I
                                   DEFINITIONS

      1.1   EMPLOYMENT AGREEMENT. After a Change of Control (defined below),
this Agreement supersedes the Employment Agreement effective as of November 1,
2004 between Employee and the Company (the "Employment Agreement") except to the
extent that certain provisions of the Employment Agreement are expressly
incorporated by reference herein. After a Change of Control, the definitions in
this Agreement supersede definitions in the Employment Agreement, but
capitalized terms used herein that are not defined in this Agreement have the
meanings given to them in the Employment Agreement.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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      1.5   CAUSE. "Cause" shall mean:

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

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

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

      1.6   GOOD REASON. "Good Reason" shall mean:

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

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

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

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

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

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

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

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

                                   ARTICLE II
                            CHANGE OF CONTROL BENEFIT

      2.1   EMPLOYMENT TERM AND CAPACITY AFTER CHANGE OF CONTROL.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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      2.4   OBLIGATIONS UPON TERMINATION AFTER A CHANGE OF CONTROL.

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

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

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

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

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

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

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

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

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

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

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

      2.10  SET-OFF; MITIGATION. After a Change of Control, the Company's and
its affiliates' obligations to make the payments provided for in this Agreement
and otherwise to perform its

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

                                   ARTICLE III
                                  MISCELLANEOUS

      3.1   BINDING EFFECT; SUCCESSORS.

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

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

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

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

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

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      If to the Company, to:

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

      If to the Employee, to:

      _________________________
      _________________________
      _________________________

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

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

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

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

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

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

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

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

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

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

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

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

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

                                    STEWART ENTERPRISES, INC.

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

                                    EMPLOYEE:

Dated: __________, 200__            ____________________________________________
                                               _____________________

                                      -11-<PAGE>
                              EMPLOYMENT AGREEMENT

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

                                   WITNESSETH:

         WHEREAS, Employee currently is employed by the Company;

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

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

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

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

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

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

<PAGE>

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

                                    ARTICLE I
                          EMPLOYMENT CAPACITY AND TERM

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

         2. EMPLOYMENT TERM. The term of this Agreement (the "Employment Term")
shall commence on the Agreement Date and shall continue through October 31,
2007, subject to any earlier termination of Employee's status as an employee
pursuant to this Agreement.

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

                                      -2-
<PAGE>

                                   ARTICLE II
                            COMPENSATION AND BENEFITS

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

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

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

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

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

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

         4. SUPPLEMENTAL EXECUTIVE RETIREMENT AGREEMENT. In lieu of
participating in the Company's Supplemental Executive Retirement Plan, the
executive shall be entitled to earn a supplemental retirement benefit on the
terms and subject to the conditions set forth in Appendix C hereto.

                                   ARTICLE III
                            TERMINATION OF EMPLOYMENT

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

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

                                      -3-
<PAGE>

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

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

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

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

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

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

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

                                      -4-
<PAGE>

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

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

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

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

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

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

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

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

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

                                      -5-
<PAGE>

Disability or Cause, the Date of Termination shall be the date on which the
Company notifies the Employee of such termination or any later date specified
therein, and (d) if the Employee's employment is terminated voluntarily by the
Employee for reasons other than Good Reason, the Date of Termination shall be
the date on which the Employee notifies the Company of such termination or any
later date specified therein (which date shall not be later than 30 days after
the giving of such notice) as the case may be.

                                   ARTICLE IV
                          OBLIGATIONS UPON TERMINATION

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

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

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

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

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

----------

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

                                      -6-
<PAGE>

                                    ARTICLE V
              NONDISCLOSURE, NONCOMPETITION AND PROPRIETARY RIGHTS

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

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

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

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

                                      -7-
<PAGE>

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

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

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

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

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

                                      -8-
<PAGE>

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

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

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

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

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

                                      -9-
<PAGE>

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

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

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

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

                                      -10-
<PAGE>

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

                                   ARTICLE VI
                                   ARBITRATION

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

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

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

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

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

                                  ARTICLE VII
                                 MISCELLANEOUS

         1. BINDING EFFECT.

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

                                      -11-
<PAGE>

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

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

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

         If to the Company, to:

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

         If to the Employee, to:

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

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

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

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

                                      -12-
<PAGE>

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

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

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

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

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

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

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

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

                                      -13-
<PAGE>

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

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

                                           STEWART ENTERPRISES, INC.

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

                                           EMPLOYEE:

Dated: January 7, 2005                         /s/ THOMAS M. KITCHEN
                                           -------------------------------------
                                                   Thomas M. Kitchen

                                      -14-
<PAGE>

                       APPENDIX A TO EMPLOYMENT AGREEMENT
                        BETWEEN STEWART ENTERPRISES, INC.
                                       AND
                                THOMAS M. KITCHEN

                  BASE SALARY, BONUS COMPENSATION AND BENEFITS

1.       Effective December 2, 2004, Employee's titles shall be Executive Vice
         President and Chief Financial Officer, and Employee's Base Salary shall
         be $300,000. Employee's principal work location shall be the New
         Orleans, Louisiana metropolitan area.

2.       For Fiscal Year 2005 ("FY 2005"), the Employee shall be eligible to
         receive a maximum Bonus of up to 100% of Base Salary.

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

<Table>
<Caption>

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

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

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

              (1)  75% of the Bonus available ($225,000) for FY 2005 will be
                   determined based on the achievement of the following reported
                   EPS levels (i.e., that EPS level, rounded to the nearest
                   whole cent, reported in the Company's year-end earnings
                   release, adjusted as appropriate pursuant to 2(c) hereof):

<Table>
<Caption>

                                                      % of 75% of         Bonus Award
                  FY 2005 Diluted Reported EPS      Bonus Potential       Based on EPS
                  ----------------------------      ---------------       ------------
<S>                                       <C>       <C>                   <C>
                  Equals or exceeds       $.46           20.00%            $  45,000
                  Equals or exceeds       $.47           35.00%            $  78,750
                  Equals or exceeds       $.48           50.00%            $ 112,500
                  Equals or exceeds       $.49           66.67%            $ 150,000
                  Equals or exceeds       $.50           83.33%            $ 187,500
                  Equals or exceeds       $.51          100.00%            $ 225,000
</Table>

              (2)  25% of the Bonus available ($75,000) will be discretionary,
                   based on Qualitative Factors established by the Compensation
                   Committee.

                                      A-1
<PAGE>

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

                                          Agreed to and accepted:

                                          STEWART ENTERPRISES, INC.

Effective date: December 2, 2004          By:  /s/ JAMES W. MCFARLAND
                                              -------------------------------
                                                 James W. McFarland
                                              Compensation Committee Chairman

                                          EMPLOYEE

Effective date: December 2, 2004          /s/ THOMAS M. KITCHEN
                                          ------------------------------------
                                               Thomas M. Kitchen

                                      A-2
<PAGE>

                       APPENDIX B TO EMPLOYMENT AGREEMENT
                        BETWEEN STEWART ENTERPRISES, INC.
                                       AND
                                THOMAS M. KITCHEN

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

A.       States and Territories of the United States:

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

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

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

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

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

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

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

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

AGREED TO AND ACCEPTED:

STEWART ENTERPRISES, INC.                      EMPLOYEE

BY:
    --------------------------------           --------------------------------
    JAMES W. MCFARLAND                         EFFECTIVE DATE: DECEMBER 2, 2004
    COMPENSATION COMMITTEE CHAIRMAN
    EFFECTIVE DATE: DECEMBER 2, 2004

                                      B-1
<PAGE>

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

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

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

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

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

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

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

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

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

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

                                               EMPLOYEE

                                               /s/ THOMAS M. KITCHEN
                                               --------------------------------
                                               EFFECTIVE DATE: DECEMBER 2, 2004

                                      B-2
<PAGE>

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

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

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

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

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

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

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

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

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

                                               EMPLOYEE

                                               /s/ THOMAS M. KITCHEN
                                               --------------------------------
                                               EFFECTIVE DATE: DECEMBER 2, 2004

                                      B-3
<PAGE>

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

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

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

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

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

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

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

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

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

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

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

                                               EMPLOYEE

                                               /s/ THOMAS M. KITCHEN
                                               --------------------------------
                                               EFFECTIVE DATE: DECEMBER 2, 2004

                                      B-4
<PAGE>

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

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

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

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

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

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

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

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

         Pike, Martin, Floyd, Knott, Letcher

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

17.           The District of Columbia

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

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

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

                                               EMPLOYEE

                                               /s/ THOMAS M. KITCHEN
                                               --------------------------------
                                               EFFECTIVE DATE: DECEMBER 2, 2004

                                      B-5
<PAGE>

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

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

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

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

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

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

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

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

                                               EMPLOYEE

                                               /s/ THOMAS M. KITCHEN
                                               --------------------------------
                                               EFFECTIVE DATE: DECEMBER 2, 2004

                                      B-6
<PAGE>

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

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

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

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

         Clark, Lincoln, Nye

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

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

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

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

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

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

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

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

         Glenn, Plumas, Sutter, Yuba, Colusa, Tehama, Fresno, San Mateo, Contra
         Costa, San Joaquin, Stanislaus, Santa Clara, Mariposa, Orange, San
         Bernardino, Kern, Ventura,

                                               EMPLOYEE

                                               /s/ THOMAS M. KITCHEN
                                               --------------------------------
                                               EFFECTIVE DATE: DECEMBER 2, 2004

                                      B-7
<PAGE>

         Inyo, Riverside, Los Angeles, Monterey, Kings, Santa Barbara, Madera,
         Tulare, San Benito, Merced, San Luis Obispo, Nevada, Alameda,
         Sacramento, El Dorado, Amador, Yolo, Solano, San Diego, Imperial,
         Sonoma, Napa, Lake, Marin, Santa Cruz, Calaveras, Placer, Butte,
         Mendocino, San Francisco

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

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

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

         Cook, Lake, McHenry, Kane, DuPage, Will

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

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

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

                                               EMPLOYEE

                                               /s/ THOMAS M. KITCHEN
                                               --------------------------------
                                               EFFECTIVE DATE: DECEMBER 2, 2004

                                      B-8
<PAGE>

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

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

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

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

B.       Acknowledgment

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

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

                                               EMPLOYEE

                                               /s/ THOMAS M. KITCHEN
                                               --------------------------------
                                               EFFECTIVE DATE: DECEMBER 2, 2004

                                      B-9
<PAGE>

                       APPENDIX C TO EMPLOYMENT AGREEMENT
                        BETWEEN STEWART ENTERPRISES, INC.
                                       AND
                                THOMAS M. KITCHEN

                   Supplemental Executive Retirement Agreement
                      as provided in Article II, Section 4

                   SUPPLEMENTAL EXECUTIVE RETIREMENT AGREEMENT

         THIS AGREEMENT (the "Agreement") is effective as of December 2, 2004 by
and between Stewart Enterprises, Inc., a Louisiana corporation (the "Employer"),
and Thomas M. Kitchen ("Employee").

         WHEREAS, in connection with Employer's entering into an Employment
Agreement with the Employee pursuant to which Employee will serve as Executive
Vice President and Chief Financial Officer of the Employer, Employer wishes to
provide Employee with certain unfunded retirement benefits

         NOW, THEREFORE, in consideration of the premises, it is agreed by and
between the parties as follows:

                                    ARTICLE 1
                                   DEFINITIONS

         1.1 An ACTUARIALLY EQUIVALENT benefit means a benefit having the same
value as the benefit to which it is compared. Actuarial equivalence shall be
determined using a mortality table and an interest rate that are selected from
time to time by the Compensation Committee and that meet the requirements for
valuing a lump sum distribution under Internal Revenue Code Section 417(e), as
elaborated by IRS regulations and other applicable rules. Pursuant to current
Treasury Regulation Section 1.417(e)-1(d), the interest rate shall be the annual
interest rate on 30-year Treasury securities (or a replacement basket of
securities identified by the IRS for use under Code Section 417(e)) for the
month prior to the calendar year for which the determination is to be made.

         1.2 ANNUITY STARTING DATE means the first day of the second month
immediately following the month in which occurs the Employee's Termination of
Employment. The Compensation Committee has the discretion to defer the Annuity
Starting Date for up to two months, if it determines that extra time is needed
to determine the benefit or the form of the benefit.

         1.3 BENEFICIARY means any of the following;

                  (a) In the case of a 10-Years-Certain-and-Life Annuity
         (including a pre-retirement death benefit under Paragraph 4.1(b) of
         Article 4), the person or persons designated by the Employee (on his or
         her Benefit Election Form) to receive the

                                      C-1
<PAGE>

         remainder of the 120 guaranteed monthly payments if the Employee dies
         before the 120th month. If no person is effectively named by the
         Employee as the Beneficiary, the Beneficiary shall be the Employee's
         surviving spouse, if any, and otherwise the Employee's heirs or
         legatees. If a Beneficiary dies after the Employee but before full
         payment has been made, the share of the remaining payments that would
         have been paid to the Beneficiary if he had survived shall be paid to
         the person or persons who would have received that share of the benefit
         if the Beneficiary had predeceased the Employee.

                  (b) In the case of a Joint-and-Survivor Annuity, the person
         named by the Employee (on his Benefit Election Form) as his joint
         annuitant, if that person survives the Employee.

         1.4 BENEFIT ELECTION FORM means the form set forth as Exhibit A, or any
successor form provided by the Compensation Committee, on which the Employee
elects the manner in which his benefit under this Agreement will be paid.

         1.5 FINAL AVERAGE PAY means the Employee's average monthly base salary
for the 36 full months immediately preceding the Employee's Termination of
Employment.

         1.6 NORMAL FORM of benefit means a monthly pension commencing on the
Employee's Annuity Starting Date, and paid on the first day of each following
month, terminating with the payment made in the month of the Employee's death.
No death benefit is payable under the Normal Form.

         1.7 OPTIONAL FORM of benefit means either the 10-Years-Certain-and-Life
Annuity or the Joint-and-Survivor Annuity, described in Paragraph 2.3 of Article
2, below.

         1.8 TERMINATION OF EMPLOYMENT means the termination of the employment
of the Employee with the Employer, unless the Employee is transferred to an
affiliate of the Employer and the Compensation Committee determines that
employment by the affiliate is to be treated the same as employment by the
Employer.

                                    ARTICLE 2
                               RETIREMENT BENEFIT

         2.1 Upon the Termination of Employment of the Employee, the Employee
shall be entitled to the vested portion of his retirement benefit commencing on
his Annuity Starting Date.

         2.2 The Employee's fully vested retirement benefit paid in the Normal
Form shall be 40% of Final Average Pay.

         2.3 Instead of payment in the Normal Form, if the Employee's
Termination of Employment occurs on or after his 65th birthday, the Employee may
elect to receive the benefit in either of the following two Optional Forms:

                  (a) As a Joint-and-Survivor Annuity, as follows: a monthly
         pension is paid to the Employee, commencing on his or her Annuity
         Starting Date, continuing on the first day of each following month, and
         terminating with the payment for the month of the

                                      C-2
<PAGE>

         Employee's death; and if the joint annuitant named by the Employee as
         of the Annuity Starting Date survives the Employee, the amount paid
         monthly to the Employee will be continued and paid to the joint
         annuitant on the first day of each following month, terminating with
         the payment for the month of the joint annuitant's death.

                  (b) As a 10-Years-Certain-and-Life Annuity, as follows: a
         monthly benefit is paid to the Employee, commencing on his or her
         Annuity Starting Date, continuing on the first day of each following
         month, and terminating with the later of the payment for the month of
         the Employee's death or the month for which the 120th monthly payment
         has been made. If the Employee dies prior to receiving 120 monthly
         payments, the remainder of the 120 payments are made to the Employee's
         Beneficiary, determined under Paragraph 1.3(a) of Article 1, above.

         2.4 In every case the form of pension must be elected by the Employee
prior to his or her Annuity Starting Date and may not be changed thereafter. If
the Employee makes no election prior to the Annuity Starting Date, the benefit
shall be paid in the Normal Form.

         2.5 The Employee's pension paid in an Optional Form shall be
Actuarially Equivalent to the pension paid in the Normal Form.

                                    ARTICLE 3
                          VESTING OF RETIREMENT BENEFIT

         3.1 The Employee's retirement benefit, commencing at the Annuity
Starting Date, shall be a percentage of his Final Average Pay, which shall be
calculated according to the following schedule:

<Table>
<Caption>
                Years of Service         % of Final Average Pay
                ----------------         ----------------------
<S>                                      <C>
                   0 - 5                          0
                     5                           20%
                     6                           24%
                     7                           28%
                     8                           32%
                     9                           36%
                    10 or more                   40%
</Table>

         3.2 If the Employee terminates employment prior to the five-year
anniversary of the date of this Agreement, he is not eligible to receive a
benefit under this Agreement, except as otherwise provided in Article 9 hereof.

                                    ARTICLE 4
                                      DEATH

         4.1 Upon the death of the Employee prior to his Termination of
Employment for any other reason, if the Employee had a vested retirement benefit
on such date of death, the Employee's Beneficiary shall receive a death benefit
that shall commence as of the month following the month of death, and shall be
determined as follows:

                                      C-3
<PAGE>

                  (a) If the Employee is survived by his spouse, and the
         surviving spouse is the only Beneficiary, the surviving spouse shall be
         entitled to a monthly benefit for her life, equal to the pension the
         surviving spouse would have received if the Employee had retired on the
         date of his death and had elected a Joint-and-Survivor Annuity with the
         surviving spouse as the Beneficiary, and had died before his Annuity
         Starting Date.

                  (b) If Paragraph 4.1(a) of this Article 4 does not apply, the
         death benefit shall be paid to the Employee's Beneficiary for 120
         months, determined as if the Employee had retired on the date of his
         death and had elected to receive his or her benefit in the form of a
         10-Years-Certain-and-Life Annuity but died before his or her Annuity
         Starting Date.

         4.2 Upon the death of the Employee after his Annuity Starting Date, a
benefit will be paid only if the Employee elected an Optional Form of benefit
under which a benefit is due to a Beneficiary.

                                    ARTICLE 5
                          AMENDMENT AND DISCONTINUANCE

         5.1 The Employer expects to continue this Agreement indefinitely but
reserves the right, acting through the Compensation Committee, to amend or
discontinue it, except as provided in Section 9.3 hereof and provided, however,
that a vested benefit can be affected without the Employee's consent only as set
forth below, and subject to Article 8 hereof.

         5.2 If the Compensation Committee should discontinue this Agreement,
the Employer shall be obligated to pay all benefits that have already commenced.

         5.3 The Compensation Committee can terminate this Agreement at any time
in its discretion without the Employee's consent, if the Employee has not had a
Termination of Employment. In that event a benefit shall be paid, as set forth
in Paragraph 5.4 below, to the Employee only if he is vested with respect to all
or a portion of his benefits hereunder as of the date such action is taken.

         5.4 In the event of the termination of this Agreement, the benefit
under Paragraph 5.3 of this Article 5 shall be based on the Employee's Final
Average Pay determined as of the date of termination of this Agreement.
Nevertheless, the Annuity Starting Date, the retirement benefit, the discount
(if any), and the form of the benefit, shall be determined in the normal way
upon the Employee's Termination of Employment.

         5.5 Except as otherwise provided in Article 9 in the event of a Change
of Control, if as of the date the Agreement is terminated, the Employee's
benefits hereunder have not vested, the Employee shall receive no benefit under
this Agreement.

                                    ARTICLE 6
                           RESTRICTIONS ON ASSIGNMENT

         The interest of the Employee or a Beneficiary hereunder may not be
sold, transferred, assigned, or encumbered in any manner, either voluntarily or
involuntarily. Neither shall the

                                      C-4
<PAGE>

benefits hereunder be liable for or subject to the claims of the creditors of
any person to whom such benefits or funds are payable, except that (i) no amount
shall be payable hereunder until and unless any and all amounts representing
debts or other obligations owed to the Employer or any affiliate of the Employer
by the Employee with respect to whom such amounts would otherwise be payable
shall have been fully paid and satisfied, and (ii) no amounts shall be payable
hereunder to any Employee (or the Employee's Beneficiary) if the Employee
engages in any of the activities described in Article 7 hereof.

                                    ARTICLE 7
                          CONDITION OF NON-COMPETITION

         7.1 The Employee (and the Employee's Beneficiary) will lose the right
to any unpaid benefits under the Agreement if the Employee engages in any
Restricted Activities following his Termination of Employment.

         7.2 The term "Restricted Activities" means any one or more of the
following activities:

                  (a) Employee, directly or indirectly, for himself or others,
         owns, manages, operates, controls, is employed in an executive,
         managerial or supervisory capacity by, consults with, or otherwise
         engages or participates in or allows his skill, knowledge, experience
         or reputation to be used in connection with, the ownership, management,
         operation or control of, any company or other business enterprise
         engaged in the Death Care Business within any of the Subject Areas;
         provided, however, a passive investment by the Employee is not a
         Restricted Activity s as long as Employee does not beneficially own
         more than 2% of the equity interests of a business enterprise engaged
         in the Death Care Business within any of the Subject Areas. For
         purposes of this paragraph, "beneficially own" shall have the same
         meaning ascribed to that term in Rule 13d-3 under the Securities
         Exchange Act of 1934.

                  (b) Employee calls upon any customer of the Company or its
         subsidiaries for the purpose of soliciting, diverting or enticing away
         the business of such person or entity, or otherwise disrupting any
         previously established relationship existing between such person or
         entity and the Company or its subsidiaries.

                  (c) Employee solicits, induces, influences or attempts to
         influence any supplier, lessor, lessee, licensor, partner, joint
         venturer, potential acquiree or any other person who has a business
         relationship with the Company or its subsidiaries, or who on the date
         of Termination of Employment is engaged in discussions or negotiations
         to enter into a business relationship with the Company or its
         subsidiaries, to discontinue or reduce or limit the extent of such
         relationship with the Company or its subsidiaries.

                  (d) Employee makes contact with any of the employees of the
         Company or its subsidiaries with whom he had contact during the course
         of his employment with the Company for the purpose of soliciting such
         employee for hire, whether as an employee or independent contractor, or
         otherwise disrupting such employee's relationship with the Company or
         its subsidiaries.

                                      C-5
<PAGE>

         7.3 The following terms used in this Article 7 are defined as follows:

                  (a) "Subject Areas" means each State of the United States or
         other jurisdiction in which Employee regularly (a) makes contact with
         customers of the Company or any of its subsidiaries, (b) conducts the
         business of the Company or any of its subsidiaries or (c) supervises
         the activities of other employees of the Company or any of its
         subsidiaries, and in which the Company or any of its subsidiaries
         engages in the Death Care Business (as hereinafter defined) on the date
         of Termination of Employment.

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

                                    ARTICLE 8
                               NATURE OF AGREEMENT

         The Employee and Beneficiaries under this Agreement have only an
unsecured right to receive benefits from the Employer as general creditors of
the Employer. The Agreement constitutes a mere promise to make payments in the
future. The Employer may set aside funds, in a trust or otherwise, for the
purpose of satisfying its obligations under this Agreement. The setting aside of
amounts by the Employer with which to discharge its obligations hereunder shall
not create any security for the payment of benefits, however. Any and all funds
so set aside shall remain subject to the claims of the general creditors of the
Employer, present and future. This provision shall not require the Employer to
set aside any funds, but the Employer may set aside such funds if it chooses to
do so.

                                    ARTICLE 9
                                CHANGE OF CONTROL

         9.1 Notwithstanding the provisions of Article 5, Article 8 or any other
provisions of this Agreement to the contrary, if the Employee has a Termination
of Employment within five years of the date hereof and following a Change of
Control (as such term is defined in the Change of Control Agreement between the
Employee and the Employer), the Employee shall

                                      C-6
<PAGE>

receive the same benefits hereunder that the Employee would have received if the
Employee had completed five years of service to the Employer hereunder.

         9.2 If the Employee's Termination of Employment occurs during the
two-year period beginning with the Change of Control, the Employee shall receive
as his only benefit under the Plan a lump sum that is Actuarially Equivalent to
the Normal Form of benefit that the Employee otherwise would have been entitled
to under the Plan (including, if applicable, Paragraph 9.1 of this Article 9).
In computing the Normal Form for the purpose of this benefit, however, Final
Average Pay shall be determined immediately before the Change of Control or
immediately before the Termination of Employment, whichever produces the larger
amount.

         9.3 During the two-year period following a Change of Control, the
Employer shall have no right to terminate this Agreement.

                                   ARTICLE 10
                                 ADMINISTRATION

         The Compensation Committee of the Board of Directors of the Employer
shall have full power and authority to interpret, construe and administer this
Agreement, and its interpretations and constructions hereof and actions
hereunder, including the timing, form, amount or receipt of any payment to be
made hereunder, within the scope of its authority, shall be binding and
conclusive for all purposes. The Compensation Committee may delegate its
responsibilities hereunder to one or more employees of the Employer.

                                   ARTICLE 11
                                  MISCELLANEOUS

         11.1 If the Employee anticipates a Termination of Employment, the
Employee should apply for a benefit using the Benefit Election Form provided by
the Compensation Committee. Upon the death of the Employee when a benefit is
payable to a Beneficiary, the Beneficiary should notify the Compensation
Committee of the death. All claims for benefit shall be addressed to the
Chairman of the Compensation Committee, Stewart Enterprises, Inc., 1333 South
Clearview Parkway, Jefferson, Louisiana 70121. The procedures of making a claim,
and for appealing from a partial or complete denial, are attached hereto as
Exhibit B. The remedy of an employee who is unsatisfied after completing the
appeal process is to enter binding arbitration with the Employer.

         11.2 If the Employer, through a mistake of law or fact, pays to the
Employee or other person a benefit hereunder that the recipient is not entitled
to, the recipient shall repay the mistaken amount to the Employer. The Employer
may offset the future benefits of any recipient who refuses to return an
erroneous payment, in addition to pursuing other remedies provided by law.

         11.3 Nothing contained herein shall be construed as conferring upon the
Employee the right to continue in the employ of the Employer in any capacity.

                                      C-7
<PAGE>

         11.4 This Agreement shall be binding upon and inure to the benefit of
the Employer, its successors and assigns and the Employee and his or her heirs,
executors, administrators and legal representatives.

         11.5 The Employee is being offered the benefits of this Agreement in
consideration of agreeing to become an employee of the Employer and the
non-competition covenant contained in Article 7 hereto, to which such Employee
explicitly agrees by executing this Agreement.

         11.6 This Agreement shall be construed in accordance with and governed
by the laws of the State of Louisiana, except to the extent that the Agreement
is governed by the Employee Retirement Income Security Act of 1974 ("ERISA"). It
is the Employer's intent that the Agreement shall be exempt from ERISA's
provisions to the maximum extent permitted by law. The Agreement is intended to
be unfunded for federal income tax purposes and for the purposes of Title I of
ERISA, and is intended to provide a pension benefit only for a select group of
management or highly compensated employees, so as to be exempt from Parts 2, 3
and 4 of Title I of ERISA, pursuant to Sections 201(2), 301(a)(3), and 401(a)(1)
of ERISA.

         11.7 This Agreement, and any amendment hereto, shall also serve as the
Agreement's Summary Plan Description. A copy of this Agreement and each
amendment hereto shall be provided to the Employee.

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

         Executed in duplicate originals in__________________, Louisiana, this
_____ day of _____________, 200__.

WITNESSES:                                    STEWART ENTERPRISES, INC.

                                              By: The Compensation Committee
                                                  of the Board of Directors
-----------------------------

                                    By:         /s/ JAMES W. MCFARLAND
                                              ----------------------------------
                                                James W. McFarland,
                                                Chairman

                                      C-8
<PAGE>

WITNESSES:

                                             /s/ THOMAS M. KITCHEN
----------------------------                 ------------------------
                                                 Thomas M. Kitchen

----------------------------

                                      C-9
<PAGE>

                            STEWART ENTERPRISES, INC.
                         EXECUTIVE RETIREMENT AGREEMENT

                        EXHIBIT A - BENEFIT ELECTION FORM

Name:                                             SSN:
      ------------------------------------             -------------------------

Address:
         -----------------------------------------------------------------------

Date of Termination of Employment:
                                    ------------------------------

Form of Benefit (Elect One):

[ ]      For my life only

[ ]      For my life, but no less than 120 months

         In the event of my death before 120 payments have been made, the
         beneficiary or beneficiaries of the remaining payments shall be:

         -----------------------------------------------------------------------

[ ]      For my life, and at my death to the following individual for his or her
         life, if he or she survives me:

         -----------------------------------------------------------------------

                                                  ------------------------------
                                                       Thomas M. Kitchen

                                                  ------------------------------
                                                             Date

                                      C-10
<PAGE>

                            STEWART ENTERPRISES, INC.
                   SUPPLEMENTAL EXECUTIVE RETIREMENT AGREEMENT

         EXHIBIT B - CLAIMS PROCEDURES

         (a) FILING OF A CLAIM FOR BENEFITS

                  Claims for benefits under the Agreement are to be presented in
         writing by the claimant or an authorized representative to the Chairman
         of the Compensation Committee of the Board of Directors of Stewart
         Enterprises, Inc.

         (b) NOTIFICATION TO CLAIMANT OF DECISION

                  If a claim is wholly or partially denied, a notice of the
         decision rendered in accordance with the rules set forth below will be
         furnished to the claimant not later than 90 days after receipt of the
         claim by the Chairman of the Compensation Committee.

                  If special circumstances require an extension of time for
         processing the claim, the Chairman of the Compensation Committee will
         give the claimant a written notice of the extension prior to the end of
         the initial 90 day period. In no event will the extension exceed an
         additional 90 days. The extension notice will indicate the special
         circumstances requiring an extension of time and the date by which the
         Chairman of the Compensation Committee expects to render its final
         decision.

                  If the notice of the denial of claim is not furnished in
         accordance with the procedure set out herein, the claim will be deemed
         denied and the claimant will be permitted to proceed to the review
         stage.

         (c) CONTENT OF NOTICE

                  The Chairman of the Compensation Committee will provide to a
         claimant who is denied a claim for benefits written or electronic
         notice setting forth in a clear and simple manner:

                  (1) The specific reason or reasons for denial;

                  (2) Specific reference to pertinent plan provisions on which
                  denial is based;

                  (3) A description of any additional material or information
                  necessary for the claimant to perfect the claim and an
                  explanation of why such materials or information are
                  necessary; and

                  (4) Appropriate information as to the steps to be taken if the
                  claimant wishes to submit his or her claim for review,
                  including the right to bring a civil action under ERISA
                  Section 502(a) following an adverse determination on review.

                                      C-11
<PAGE>

         d) REVIEW PROCEDURE

                  After the claimant has received written notification of the
         denial of the claim, the claimant or a duly authorized representative
         will have 60 days within which to appeal, in writing, a denied claim to
         the full Compensation Committee. The Compensation Committee will afford
         the claimant a full and fair review of the denial of the claim. The
         claimant should include in his written appeal the following information
         to support his claim for benefits:

                  (1) A list of the issues in the claim denial that he chooses
                  to contest, if any, and that he wishes the Compensation
                  Committee to review on appeal;

                  (2) His position on each issue;

                  (3) Any additional facts that he believes support his position
                  on each issue; and

                  (4) Any legal or other arguments he believes support his
                  position on each issue.

                  The claimant or a duly authorized representative will be
                  permitted to submit issues and comments relevant to the claim.
                  Upon request, the claimant will be given reasonable access to,
                  and copies of, all documents and information relevant to the
                  claim for benefits, at no charge.

                  The review will consider all items submitted by the claimant,
                  regardless of whether such information was submitted or
                  considered in the initial benefit determination.

         (e) DECISION ON REVIEW

                  The decision on review by the Compensation Committee will be
         rendered as promptly as is feasible, but not later than 60 days after
         the receipt of a request for review unless the Compensation Committee
         in its sole discretion, determines that special circumstances require
         an extension of time for processing, in which case a decision will be
         rendered as promptly as is feasible, but not later than 120 days after
         receipt of a request for review.

                  If an extension of time for review is required because of
         special circumstances, written notice of the extension will be
         furnished to the claimant before termination of the initial 60-day
         review period.

                  The decision on review will be in written or electronic form.
         In the event of a claim denial, the decision shall contain: (1)
         specific reasons for the decision, written in a clear and simple
         manner; (2) specific references to the pertinent plan provisions on
         which the decision is based; (3) a statement that the claimant may
         request, at no charge,

                                      C-12
<PAGE>

         reasonable access to and copies of all documents, records and other
         information relevant to the claim for benefits; and (4) a description
         of the Agreement's appeal and arbitration procedures (if any), and the
         claimant's right to bring an action under ERISA Section 502(a).

                  If the decision on review is not furnished within the time
         period(s) set out in this section, the claim will be deemed denied on
         review.

If the claimant wishes to contest the Compensation Committee's decision on
review, the claimant's claim shall be submitted to binding arbitration in
accordance with the following procedures:

         (f) ARBITRATION

              (1) BINDING AGREEMENT TO ARBITRATE. Any claim or controversy
              arising out of any provision of this Agreement that cannot be
              resolved through the claims procedures provided above, shall be
              settled by arbitration administered by the American Arbitration
              Association (the "AAA") under its National Rules for the
              Resolution of Employment Disputes (the "Rules"), and judgment on
              the award rendered by the arbitrator(s) may be entered in any
              court having jurisdiction thereof.

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

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

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

                                      C-13
<PAGE>

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

AGREED TO AND ACCEPTED:

STEWART ENTERPRISES, INC.                EMPLOYEE

BY:
     -----------------------------       ---------------------------------

                                         DATE:                 , 200
                                               ----------------     --

                                      C-14

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