Document:

exv4w01

Exhibit 4.01

Execution Copy

AMENDMENT NO. 1 TO RIGHTS AGREEMENT

     This First Amendment (“Amendment”) effective as of April 5, 2011 is to the Rights Agreement,
dated as of April 29, 2005 (the “Rights Agreement”), by and between Diamond Foods, Inc., a Delaware
corporation (the “Company”), and Computershare Trust Company, N.A., a federally chartered trust
company (f/k/a EquiServe Trust Company, N.A.), as Rights Agent (the “Rights Agent”)

     WHEREAS, the Company, by resolution adopted by its Board of Directors, hereby directs the
Rights Agent to amend the Rights Agreement as set forth herein; and

     NOW THEREFORE, in consideration of the premises and mutual agreements set forth herein, the
Company and the Rights Agent agree as follows:

     1. Amendment of Section 1. Section 1 of the Rights Agreement is hereby supplemented
and amended to add the following definitions in the appropriate alphabetical locations:

“MERGER SUB” shall mean Wimbledon Acquisition LLC, a Delaware limited liability
company.

“P&G” shall mean The Procter & Gamble Company, an Ohio corporation.

“TRANSACTION AGREEMENT” shall mean that certain Transaction Agreement, dated as of
April 5, 2011, by and among the Company, P&G, Wimbledon, and Merger Sub, as amended
or supplemented from time to time.

“TRANSACTIONS” shall mean the “Transactions” as such term is defined in the
Transaction Agreement.

“WIMBLEDON” shall mean The Wimble Company, a Delaware corporation.

     2. Amendment of Definition of “Acquiring Person.” The definition of “Acquiring
Person” in Section 1(a) of the Rights Agreement is hereby supplemented and amended by adding the
following as Section 1(a)(iii):

“(iii) Neither P&G, Wimbledon, Merger Sub nor any of their respective Affiliates,
Associates, permitted assignees or permitted transferees shall be deemed to be an
Acquiring Person as a result of the approval, execution, delivery or performance of
the Transaction Agreement, the consummation of any of the Transactions or the
announcement of any of the foregoing.”

     3. Amendment of Definition of “Shares Acquisition Date.” The definition of “Shares
Acquisition Date” in Section 1(p) of the Rights Agreement is supplemented and amended by inserting
the following sentence at the end of such definition:

“Notwithstanding anything in this Agreement to the contrary, a Shares Acquisition
Date shall not be deemed to have occurred as the result of the public announcement,
approval, execution, delivery or performance of the Transaction Agreement, the
consummation of any of the Transactions or the announcement of any of the
foregoing.”

 

 

     4. Amendment to Section 3(a). Section 3(a) of the Rights Agreement is hereby
supplemented and amended by inserting the following sentence immediately after the last sentence
thereof:

“Notwithstanding anything in this Agreement to the contrary, a Distribution Date
shall not be deemed to have occurred, and the Rights will not become separable,
distributable, unredeemable, triggered or exercisable, in each case as the result
of the public announcement, approval, execution, delivery or performance of the
Transaction Agreement, the consummation of any of the Transactions or the
announcement of any of the foregoing.”

     5. Amendment to Section 25(a). Section 25(a) of the Rights Agreement is hereby
supplemented and amended by inserting the following sentence immediately after the last sentence
thereof:

“Notwithstanding anything in this Agreement to the contrary, in no event shall the
provisions of this Section 25 apply to the public announcement, approval,
execution, delivery or performance of the Transaction Agreement or the
consummation of the Transactions.”

     6. Waiver of Notice(s). The Rights Agent and the Company hereby waive any notice
requirement(s) under the Rights Agreement pertaining to the matters covered by this Amendment.

     7. Exhibits. Exhibit B to the Rights Agreement shall be deemed amended in a manner
consistent with this Amendment.

     8. Other Provisions Unaffected. This Amendment shall be deemed to be in full force
and effect immediately prior to the execution and delivery of the Transaction Agreement, and the
Company or its agent shall notify the Rights Agent promptly after such execution and delivery.
Except as expressly modified hereby, all arrangements, agreements, terms, conditions and provisions
of the Rights Agreement remain in full force and effect, and this Amendment and the Rights
Agreement, as hereby modified, shall constitute one and the same instrument.

     9. Miscellaneous.

          (a) Severability. If any term, provision, covenant or restriction of this Amendment
is held by a court of competent jurisdiction or other authority to be invalid, void or
unenforceable, then such term, provision, covenant or restriction shall be enforced to the maximum
extent permissible, and the remainder of the terms, provisions, covenants and restrictions of this
Amendment shall remain in full force and effect and shall in no way be affected, impaired or
invalidated.

          (b) Governing Law. This Amendment, the Rights Agreement and each Right Certificate
issued hereunder or thereunder shall be deemed to be a contract made under the laws of the State of
Delaware and for all purposes shall be governed by and construed in accordance with the laws of
such State applicable to contracts to be made and performed entirely within such State.

          (c) Counterparts. This Amendment may be executed in any number of counterparts and
each of such counterparts shall for all purposes be deemed to be an original, and all such
counterparts shall together constitute but one and the same instrument. A signature to this
Amendment transmitted electronically shall have the same authority, effect, and enforceability as an
original signature.

 

 

          (d) Descriptive Headings. Descriptive headings of the several sections of this
Amendment and the Rights Agreement are inserted for convenience only and shall not control or
affect the meaning or construction of any of the provisions hereof or thereof.

          (e) Entire Agreement. This Amendment and the Rights Agreement, and all of the
provisions hereof and thereof, shall be binding upon and inure to the benefit of the Company and
the Rights Agent and their respective successors and permitted assigns and executors,
administrators and heirs. This Amendment, together with the Rights Agreement, sets forth the entire
agreement and understanding between the parties hereto as to the subject matter hereof and thereof
and merges with and supercedes all prior discussions and understandings of any and every nature
among them. Without limiting the foregoing, the Rights Agent shall not be subject to, nor required
to interpret or comply with, or determine if any person has complied with, the Transaction
Agreement even though reference thereto may be made in this Amendment and the Rights Agreement.

          (f) Further Assurances. The Company and the Rights Agent shall cooperate and take
such action as may be reasonably requested by the other party in order to carry out the
transactions and purposes of this Amendment, the Rights Agreement, and the transactions
contemplated hereunder and/or thereunder.

          (g) Effective Time. This Amendment shall be effective as of, and immediately prior
to, the execution and delivery of the Transaction Agreement.

[Signature page follows]

 

 

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed, all as of
the effective time specified above.

	 	 	 	 	 
	 	DIAMOND FOODS, INC.

 	 
	 	By:  	/s/ Steven M. Neil
 	 
	 	 	Name:  	Steven M. Neil, 	 
	 	 	Title:  	Executive Vice President and Chief Financial

and Administrative Officer 	 
	 

	 	 	 	 	 
	COMPUTERSHARE TRUST COMPANY, N.A.

 	 	 
	By:  	/s/ Dennis Moccia
 	 	 
	 	Name:  	Dennis Moccia 	 	 
	 	Title:  	Manager, Contract Administration 	 	 
	 

[Signature Page to Amendment No. 1 to the Rights Agreement]exv10w1

Exhibit 10.1

EXECUTION COPY

PURCHASE AGREEMENT

April 4, 2011

Merrill Lynch, Pierce, Fenner & Smith Incorporated

      As Representative of the Initial Purchasers

c/o Merrill Lynch, Pierce, Fenner & Smith Incorporated

One Bryant Park

New York, New York 10036

Ladies and Gentlemen:

     Introductory. Stewart Enterprises, Inc., a Louisiana corporation (the “Company”), proposes to
issue and sell to Merrill Lynch, Pierce, Fenner & Smith Incorporated (“Merrill Lynch”) and the
other several Initial Purchasers named in Schedule B (the “Initial Purchasers”), acting
severally and not jointly, the respective amounts set forth in such Schedule B of
$200,000,000 aggregate principal amount of the Company’s 6.50% Senior Notes due 2019 (the “Notes”).
Merrill Lynch has agreed to act as the representative of the Initial Purchasers (the
“Representative”) in connection with the offering and sale of the Notes.

     The Securities (as defined below) will be issued pursuant to an indenture, to be dated as of
April 18, 2011, (the “Indenture”), among the Company, the Guarantors (as defined below) and U.S.
Bank National Association, as trustee (the “Trustee”). Notes will be issued only in book-entry
form in the name of Cede & Co., as nominee of The Depository Trust Company (the “Depositary”)
pursuant to a letter of representations, to be dated on or before the Closing Date (as defined in
Section 2 hereof) (the “DTC Agreement”), among the Company, the Trustee and the Depositary.

     The holders of the Notes will be entitled to the benefits of a registration rights agreement,
to be dated as of April 18, 2011 (the “Registration Rights Agreement”), among the Company, the
Guarantors and the Initial Purchasers, pursuant to which the Company and the Guarantors will be
required to file with the Commission (as defined below), under the circumstances set forth therein,
(i) a registration statement under the Securities Act (as defined below) relating to another series
of debt securities of the Company with terms substantially identical to the Notes (the “Exchange
Notes”) to be offered in exchange for the Notes (the “Exchange Offer”) and (ii) a shelf
registration statement pursuant to Rule 415 of the Securities Act relating to the resale by certain
holders of the Notes, and in each case, to use its reasonable best efforts to cause such
registration statements to be declared effective. All references herein to the Exchange Notes and
the Exchange Offer are only applicable if the Company and the Guarantors are in fact required to
consummate the Exchange Offer pursuant to the terms of the Registration Rights Agreement.

     The payment of principal of premium, if any, and interest on the Notes will be fully and
unconditionally guaranteed on a senior unsecured basis, jointly and severally by (i) the entities
listed on the signature pages hereof as “Guarantors” and (ii) any subsidiary of the Company

 

 

formed or acquired after the Closing Date that executes an additional guarantee in accordance
with the terms of the Indenture, and their respective successors and assigns (collectively, the
“Guarantors”), pursuant to their guarantees (the “Guarantees”). Each of the Guarantors as of the
date of this Agreement is listed in Schedule A attached hereto. The Notes and the
Guarantees attached thereto are herein collectively referred to as the “Securities”; and the
Exchange Notes and the Guarantees attached thereto are herein collectively referred to as the
“Exchange Securities.”

     The proceeds from the offering of the Notes, together with cash from the Company’s balance
sheet, will be used for the repurchase of the Company’s $200.0 million 6.25% senior notes due 2013
pursuant to a tender offer and consent solicitation and to pay related tender premiums, accrued
interest, fees and expenses and/or to redeem any such notes not tendered (collectively, the
“Refinancing Transactions”). The issuance and sale of the Notes, the issuance of the Guarantees
and the Refinancing Transactions as described in the Pricing Disclosure Package (as defined below)
and the payment of transaction costs are referred to herein collectively, as the “Transactions.”

     This Agreement, the Registration Rights Agreement, the DTC Agreement, the Securities, the
Exchange Securities, and the Indenture are referred to herein as the “Transaction Documents.”

     The Company understands that the Initial Purchasers propose to make an offering of the
Securities on the terms and in the manner set forth herein and in the Pricing Disclosure Package
(as defined below) and agrees that the Initial Purchasers may resell, subject to the conditions set
forth herein, all or a portion of the Securities to purchasers (the “Subsequent Purchasers”) on the
terms set forth in the Pricing Disclosure Package (the first time when sales of the Securities are
made is referred to as the “Time of Sale” and shall be deemed to be 4:27 p.m. (Eastern time) on the
date hereof). The Securities are to be offered and sold to or through the Initial Purchasers
without being registered with the Securities and Exchange Commission (the “Commission”) under the
Securities Act of 1933 (as amended, the “Securities Act,” which term, as used herein, includes the
rules and regulations of the Commission promulgated thereunder), in reliance upon exemptions
therefrom. Pursuant to the terms of the Securities and the Indenture, investors who acquire
Securities shall be deemed to have agreed that Securities may only be resold or otherwise
transferred, after the date hereof, if such Securities are registered for sale under the Securities
Act or if an exemption from the registration requirements of the Securities Act is available
(including the exemptions afforded by Rule 144A under the Securities Act (“Rule 144A”) or
Regulation S under the Securities Act (“Regulation S”)).

     The Company has prepared and delivered to each Initial Purchaser copies of a Preliminary
Offering Memorandum, dated April 4, 2011 (the “Preliminary Offering Memorandum”), and has prepared
and delivered to each Initial Purchaser copies of a Pricing Supplement, dated April 4, 2011 (the
“Pricing Supplement”), as set forth on Schedule C hereto, describing the terms of the
Securities, each for use by such Initial Purchaser in connection with its solicitation of offers to
purchase the Securities. The Preliminary Offering Memorandum and the Pricing Supplement are herein
referred to as the “Pricing Disclosure Package.” Promptly after this Agreement is executed and
delivered, the Company will prepare and deliver to each Initial

2

 

 Purchaser a final offering memorandum dated the date hereof (the “Final Offering Memorandum”).

     All references herein to the terms “Pricing Disclosure Package” and “Final Offering
Memorandum” shall be deemed to mean and include all information filed under the Securities Exchange
Act of 1934 (as amended, the “Exchange Act,” which term, as used herein, includes the rules and
regulations of the Commission promulgated thereunder) prior to the Time of Sale and incorporated by
reference in the Pricing Disclosure Package (including the Preliminary Offering Memorandum) or the
Final Offering Memorandum (as the case may be), and all references herein to the terms “amend,”
“amendment” or “supplement” with respect to the Final Offering Memorandum shall be deemed to mean
and include all information filed under the Exchange Act after the Time of Sale and incorporated by
reference in the Final Offering Memorandum.

     The Company hereby confirms its agreements with the Initial Purchasers as follows:

     SECTION 1. Representations and Warranties. Each of the Company and the Guarantors, jointly
and severally, hereby represents, warrants and covenants to each Initial Purchaser that, as of the
date hereof and as of the Closing Date (references in this Section 1 to the “Offering Memorandum”
are to (x) the Pricing Disclosure Package in the case of representations and warranties made as of
the date hereof and (y) the Pricing Disclosure Package and the Final Offering Memorandum in the
case of representations and warranties made as of the Closing Date):

     (a) No Registration Required. Subject to compliance by the Initial Purchasers with the
representations and warranties set forth in Section 2 hereof and with the procedures set
forth in Section 7 hereof, it is not necessary in connection with the offer, sale and
delivery of the Securities to the Initial Purchasers and to each Subsequent Purchaser in the
manner contemplated by this Agreement and the Offering Memorandum to register the Securities
under the Securities Act or, until such time as the Exchange Securities are issued pursuant
to an effective registration statement, to qualify the Indenture under the Trust Indenture
Act of 1939 (the “Trust Indenture Act,” which term, as used herein, includes the rules and
regulations of the Commission promulgated thereunder).

     (b) No Integration of Offerings or General Solicitation. None of the Company, its
affiliates (as such term is defined in Rule 501 under the Securities Act) (each, an
“Affiliate”), or any person acting on its or any of their behalf (other than the Initial
Purchasers, as to whom the Company makes no representation or warranty) has, directly or
indirectly, solicited any offer to buy or offered to sell, or will, directly or indirectly,
solicit any offer to buy or offer to sell, in the United States or to any United States
citizen or resident, any security which is or would be integrated with the sale of the
Securities in a manner that would require the Securities to be registered under the
Securities Act. None of the Company, its Affiliates, or any person acting on its or any of
their behalf (other than the Initial Purchasers, as to whom the Company and the Guarantors
make no representation or warranty) has engaged or will engage, in connection with the
offering of the Securities, in any form of general solicitation or general advertising
within the meaning of Rule 502 under the Securities Act. With respect to those Securities
sold in reliance upon Regulation S, (i) none of the Company, its Affiliates or any person
acting on its or their behalf (other than the Initial Purchasers, as to whom the Company and
the

3

 

Guarantors make no representation or warranty) has engaged or will engage in any directed
selling efforts within the meaning of Regulation S and (ii) each of the Company and its
Affiliates and any person acting on its or their behalf (other than the Initial Purchasers,
as to whom the Company and the Guarantors make no representation or warranty) has complied
and will comply with the offering restrictions set forth in Regulation S.

     (c) Eligibility for Resale under Rule 144A. The Securities are eligible for resale
pursuant to Rule 144A and will not be, at the Closing Date, of the same class as securities
of the Company or any subsidiary of the Company listed on a national securities exchange
registered under Section 6 of the Exchange Act or quoted in a U.S. automated interdealer
quotation system.

     (d) The Pricing Disclosure Package and Offering Memorandum. Neither the Pricing
Disclosure Package, as of the Time of Sale and at the Closing Date, nor the Final Offering
Memorandum, as of its date or (as amended or supplemented in accordance with Section 3(a),
as applicable) as of the Closing Date, contains or represents an untrue statement of a
material fact or omits to state a material fact necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not misleading;
provided that this representation, warranty and agreement shall not apply to statements in
or omissions from the Pricing Disclosure Package, the Final Offering Memorandum or any
amendment or supplement thereto made in reliance upon and in conformity with information
furnished to the Company in writing by any Initial Purchaser through the Representative
expressly for use in the Pricing Disclosure Package, the Final Offering Memorandum or
amendment or supplement thereto, as the case may be. The Pricing Disclosure Package
contains, and the Final Offering Memorandum will contain, all the information specified in,
and meeting the requirements of, Rule 144A(d)(4). Neither the Company nor any Guarantor has
distributed and will not distribute, prior to the later of the Closing Date and the
completion of the Initial Purchasers’ distribution of the Securities, any offering material
in connection with the offering and sale of the Securities other than the Pricing Disclosure
Package and the Final Offering Memorandum, and any Company Additional Written Communication
(defined in Section 1(e)).

     (e) Company Additional Written Communications. The Company has not prepared, made,
used, authorized, approved or distributed and will not prepare, make, use, authorize,
approve or distribute any written communication that constitutes an offer to sell or
solicitation of an offer to buy the Securities other than (i) the Pricing Disclosure
Package, (ii) the Final Offering Memorandum and (iii) any electronic road show or other
written communications, in each case used in accordance with Section 3(a). Each such
communication by the Company or its agents and representatives pursuant to clause (iii) of
the preceding sentence (each, a “Company Additional Written Communication”), when taken
together with the Pricing Disclosure Package, did not as of the Time of Sale, and at the
Closing Date will not, contain any untrue statement of a material fact or omit to state a
material fact necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading; provided that this representation,
warranty and agreement shall not apply to statements in or omissions from each such Company
Additional Written Communication made in reliance upon and in confor
mity with information furnished to the Company in writing by any Initial Purchaser

4

 

through the Representative expressly for use in any Company Additional Written
Communication.

     (f) Incorporated Documents. The documents incorporated or deemed to be incorporated by
reference in the Offering Memorandum at the time they were or hereafter are filed with the
Commission (collectively, the “Incorporated Documents”) complied and will comply in all
material respects with the requirements of the Exchange Act. Each such Incorporated
Document, when taken together with the Offering Memorandum, did not as of the Time of Sale,
and at the Closing Date will not, contain any untrue statement of a material fact or omit to
state a material fact necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading.

     (g) The Purchase Agreement. This Agreement has been duly authorized, executed and
delivered by the Company and the Guarantors.

     (h) The Registration Rights Agreement and DTC Agreement. The Registration Rights
Agreement has been duly authorized and, on the Closing Date, will have been duly executed
and delivered by, and will constitute a valid and binding agreement of, the Company and the
Guarantors, enforceable against the Company and each Guarantor in accordance with its terms,
except as the enforcement thereof may be limited by bankruptcy, insolvency, reorganization,
moratorium or other similar laws relating to or affecting the rights and remedies of
creditors or by general equitable principles and except as rights to indemnification may be
limited by applicable law. The DTC Agreement has been duly authorized and, on the Closing
Date, will have been duly executed and delivered by, and will constitute a valid and binding
agreement of, the Company, enforceable against the Company in accordance with its terms,
except as the enforcement thereof may be limited by bankruptcy, insolvency, reorganization,
moratorium or other similar laws relating to or affecting the rights and remedies of
creditors or by general equitable principles.

     (i) Authorization of the Notes, the Guarantees and the Exchange Notes. The Notes to be
purchased by the Initial Purchasers from the Company will on the Closing Date be in the form
contemplated by the Indenture, have been duly authorized for issuance and sale pursuant to
this Agreement and the Indenture and, at the Closing Date, will have been duly executed by
the Company and, when authenticated in the manner provided for in the Indenture and
delivered against payment of the purchase price therefor, will constitute valid and binding
obligations of the Company, enforceable against the Company in accordance with their terms,
except as the enforcement thereof may be limited by bankruptcy, insolvency, reorganization,
moratorium or other similar laws relating to or affecting the rights and remedies of
creditors or by general equitable principles and will be entitled to the benefits of the
Indenture. The Exchange Notes have been duly and validly authorized for issuance by the
Company, and when issued and authenticated in accordance with the terms of the Indenture,
the Registration Rights Agreement and the Exchange Offer, will constitute valid and binding
obligations of the Company, enforceable against the Company in accordance with their terms,
except as the enforcement thereof may be limited by bankruptcy, insolvency, reorganization,
moratorium, or similar
laws relating to or affecting enforcement of the rights and remedies of creditors or by

5

 

general principles of equity and will be entitled to the benefits of the Indenture. The
Guarantees of the Notes on the Closing Date and the Guarantees of the Exchange Notes when
issued will be in the respective forms contemplated by the Indenture and have been duly
authorized for issuance pursuant to this Agreement and the Indenture; the Guarantees of the
Notes, at the Closing Date, will have been duly executed by each of the Guarantors and, when
the Notes have been authenticated in the manner provided for in the Indenture and issued and
delivered against payment of the purchase price therefor, the Guarantees of the Notes will
constitute valid and binding agreements of the Guarantors; and, when the Exchange Notes have
been authenticated in the manner provided for in the Indenture and issued and delivered in
accordance with the Registration Rights Agreement, the Guarantees of the Exchange Notes will
constitute valid and binding agreements of the Guarantors, in each case, enforceable against
each Guarantor in accordance with their terms, except as the enforcement thereof may be
limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws relating
to or affecting the rights and remedies of creditors or by general equitable principles and
will be entitled to the benefits of the Indenture.

     (j) Authorization of the Indenture. The Indenture has been duly authorized by the
Company and each Guarantor and, at the Closing Date, will have been duly executed and
delivered by the Company and each Guarantor and will constitute a valid and binding
agreement of the Company and each Guarantor, enforceable against the Company and each
Guarantor in accordance with its terms, except as the enforcement thereof may be limited by
bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to or
affecting the rights and remedies of creditors or by general equitable principles. On the
Closing Date, the Indenture will conform in all material respects to the Trust Indenture Act
and the rules and regulations of the SEC applicable to an indenture which is qualified
thereunder.

     (k) Description of the Transaction Documents. The Transaction Documents will conform
in all material respects to the respective statements relating thereto contained in the
Offering Memorandum.

     (l) No Material Adverse Change. Except as otherwise disclosed in the Offering
Memorandum (exclusive of any amendment or supplement thereto), subsequent to the respective
dates as of which information is given in the Offering Memorandum (exclusive of any
amendment or supplement thereto): (i) there has been no material adverse change, or any
development that could reasonably be expected to result in a material adverse change, in the
condition, financial or otherwise, or in the earnings, business, operations or prospects,
whether or not arising from transactions in the ordinary course of business, of the Company
and its subsidiaries, considered as one entity (any such change is called a “Material
Adverse Change”); (ii) the Company and its subsidiaries, considered as one entity, have not
incurred any material liability or obligation, indirect, direct or contingent, not in the
ordinary course of business nor entered into any material transaction or agreement not in
the ordinary course of business; and (iii) there has been no dividend or distribution of any
kind declared, paid or made on any class of capital stock, nor any repurchases or
redemptions of capital stock by the Company or any of its subsidiaries
except for dividends paid by a subsidiary to the Company or other subsidiaries, or

6

 

redemptions or repurchases of capital stock by subsidiaries of the Company that were wholly
owned before and after such redemptions or repurchases.

     (m) Independent Accountants. PricewaterhouseCoopers LLP, which expressed its opinion
with respect to the financial statements (which term as used in this Agreement includes the
related notes thereto) and supporting schedules filed with the Commission and included or
incorporated by reference in the Offering Memorandum is an independent registered public
accounting firm within the meaning of the Securities Act, the Exchange Act and the rules of
the Public Company Accounting Oversight Board, and any non-audit services provided by
PricewaterhouseCoopers LLP to the Company or any of the Guarantors, have been approved by
the Audit Committee of the Board of Directors of the Company.

     (n) Preparation of the Financial Statements. The financial statements of the Company,
together with the related schedules and notes, included or incorporated by reference in the
Offering Memorandum present fairly the consolidated financial position of the Company and
its subsidiaries as of and at the dates indicated and the results of their operations and
cash flows for the periods specified and comply as to form with the applicable requirements
of the Securities Act. Such financial statements have been prepared in conformity with
generally accepted accounting principles as applied in the United States (“GAAP”) and
applied on a consistent basis throughout the periods involved, except as may be expressly
stated in the related notes thereto. The financial data set forth in the Offering
Memorandum under the caption “Offering Memorandum Summary—Summary Consolidated Financial
and Operating Data” fairly present the information set forth therein on a basis consistent
with that of the audited financial statements contained or incorporated by reference in the
Offering Memorandum, except as may be stated in the Offering Memorandum. The statistical
and market-related data included in the Offering Memorandum are based on or derived from
sources that the Company and its subsidiaries believe to be reliable and accurate in all
material respects and forward-looking statements were made with a reasonable basis and in
good faith.

     (o) Incorporation and Good Standing of the Company and its Subsidiaries. Each of the
Company, the Guarantors and the Significant Subsidiaries has been duly incorporated or
organized and is validly existing as a corporation or other organization in good standing
under the laws of the jurisdiction of its incorporation or organization and has corporate or
organizational power and authority to own, lease and operate its properties and to conduct
its business as described in the Offering Memorandum and, in the case of the Company and the
Guarantors, to enter into and perform its obligations under each of the Transaction
Documents to which it is a party. Each subsidiary of the Company that is not a Guarantor or
a Significant Subsidiary has been duly incorporated or organized and is validly existing as
a corporation or organization in good standing under the laws of the jurisdiction of its
incorporation or organization and has corporate or organizational power and authority to
own, lease and operate its properties and to conduct its business as described in the
Offering Memorandum, except for such instances as would not individually or in the aggregate
result in a Material Adverse Change. Each of the Company and each subsidiary is duly
qualified as a foreign corporation, limited part
nership or limited liability company, as applicable, to transact business and is in
good

7

 

 standing in each jurisdiction in which such qualification is required, whether by
reason of the ownership or leasing of property or the conduct of business, except for such
jurisdictions where the failure to so qualify or to be in good standing would not,
individually or in the aggregate, result in a Material Adverse Change. All of the issued
and outstanding capital stock or other ownership interest of each subsidiary has been duly
authorized and validly issued, is fully paid and nonassessable and is owned by the Company,
directly or through subsidiaries, free and clear of any security interest, mortgage, pledge,
lien, encumbrance or claim, except as described in Schedule D hereto. The Company
does not own or control, directly or indirectly, any corporation, association or other
entity other than the subsidiaries listed in Schedule D hereto and other than its
funeral and cemetery merchandise and services and perpetual care trust funds. As used in
this Agreement, “Signification Subsidiary” means any subsidiary of the Company that would
constitute a “significant subsidiary” within the meaning of Article I of Regulation S-X of
the Securities Act; provided, however, that for the purposes of this definition, 5% shall be
substituted for 10% in each place that it appears in such definition.

     (p) Capitalization and Other Capital Stock Matters. At January 31, 2011, on a
consolidated basis, after giving pro forma effect to the issuance and sale of the Securities
pursuant hereto, the Company would have an authorized and outstanding capitalization as set
forth in the Offering Memorandum under the caption “Capitalization” (other than for
subsequent issuances of capital stock, if any, pursuant to employee benefit plans described
in the Offering Memorandum or upon exercise of outstanding options or warrants described in
the Offering Memorandum). All of the outstanding shares of Common Stock have been duly
authorized and validly issued, are fully paid and nonassessable and have been issued in
compliance with federal and state securities laws. None of the outstanding shares of Class
A and Class B Common Stock were issued in violation of any preemptive rights, rights of
first refusal or other similar rights to subscribe for or purchase securities of the
Company. There are no authorized or outstanding options, warrants, preemptive rights,
rights of first refusal or other rights to purchase, or equity or debt securities
convertible into or exchangeable or exercisable for, any capital stock of the Company or any
of its subsidiaries other than those accurately described in the Offering Memorandum and the
documents incorporated by reference.

     (q) Stock Exchange Listing. The Class A Common Stock is registered pursuant to Section
12(g) of the Exchange Act and is listed on the NASDAQ Global Select Market, and the Company
has taken no action designed to, or likely to have the effect of, terminating the
registration of the Class A Common Stock under the Exchange Act or delisting the Class A
Common Stock from the NASDAQ National Global Select Market, nor has the Company received any
notification that the Commission or the Financial Industry Regulatory Authority (the
“FINRA”) is contemplating terminating such registration or listing.

     (r) Non-Contravention of Existing Instruments; No Further Authorizations or Approvals
Required. Neither the Company nor any of its subsidiaries is (i) in violation of its
charter, bylaws or other constitutive document or (ii) in default (or, with the giving of
notice or lapse of time, would be in default) (“Default”) under any inden
ture, mortgage, loan or credit agreement, note, contract, franchise, lease or other

8

 

instrument to which the Company or any of its subsidiaries is a party or by which it or any
of them may be bound (including, without limitation, the Company’s senior secured revolving
credit facility, the indenture governing the Company’s 6.25% senior notes due 2013, the
indenture governing the Company’s 3.125% senior convertible notes due 2014 and the indenture
governing the Company’s 3.375% senior convertible notes due 2016), or to which any of the
property or assets of the Company or any of its subsidiaries is subject (each, an “Existing
Instrument”), except, in the case of clause (ii) above, for such Defaults as would not,
individually or in the aggregate, result in a Material Adverse Change. The execution,
delivery and performance of the Transaction Documents by the Company and the Guarantors
party thereto, and the issuance and delivery of the Securities and the Exchange Securities,
and consummation of the transactions contemplated hereby and thereby and by the Offering
Memorandum (i) have been duly authorized by all necessary corporate action and will not
result in any violation of the provisions of the charter, bylaws or other constitutive
document of the Company or any subsidiary, (ii) will not conflict with or constitute a
breach of, or Default or a Debt Repayment Triggering Event (as defined below) under, or
result in the creation or imposition of any lien, charge or encumbrance upon any property or
assets of the Company or any of its subsidiaries pursuant to, or require the consent of any
other party to, any Existing Instrument, except for such conflicts, breaches, Defaults,
liens, charges or encumbrances as would not, individually or in the aggregate, result in a
Material Adverse Change and (iii) will not result in any violation of any law,
administrative regulation or administrative or court decree applicable to the Company or any
subsidiary. No consent, approval, authorization or other order of, or registration or
filing with, any court or other governmental or regulatory authority or agency is required
for the execution, delivery and performance of the Transaction Documents by the Company and
the Guarantors to the extent a party thereto, or the issuance and delivery of the Securities
or the Exchange Securities, or consummation of the transactions contemplated hereby and
thereby and by the Offering Memorandum, except such as have been obtained or made by the
Company or the Guarantors and are in full force and effect under the Securities Act,
applicable securities laws of the several states of the United States or provinces in Canada
and except such as may be required by the securities laws of the several states of the
United States or provinces in Canada or the Trust Indenture Act with respect to the
Company’s obligations under the Registration Rights Agreement. As used herein, a “Debt
Repayment Triggering Event” means any event or condition which gives, or with the giving of
notice or lapse of time would give, the holder of any note, debenture or other evidence of
indebtedness (or any person acting on such holder’s behalf) the right to require the
repurchase, redemption or repayment of all or a portion of such indebtedness by the Company
or any of its subsidiaries.

     (s) No Material Actions or Proceedings. Except as otherwise disclosed in the Offering
Memorandum, there are no legal or governmental actions, suits or proceedings pending or, to
the best of the Company’s or any Guarantor’s knowledge, threatened (i) against or affecting
the Company or any of its subsidiaries or (ii) which has as the subject thereof any property
owned or leased by, the Company or any of its subsidiaries where in any such case described
in clause (i) or (ii) (A) there is a reasonable possibility that such action, suit or
proceeding might be determined adversely to the Company or such subsidiary and (B) any such
action, suit or proceeding, if so determined adversely,
would reasonably be expected to result in a Material Adverse Change or adversely affect

9

 

the consummation of the transactions contemplated by this Agreement and by the Offering
Memorandum in the “Use of Proceeds” section. Except as otherwise disclosed in the Offering
Memorandum, no material labor dispute with the employees of the Company or any of its
subsidiaries, or, to the best of the Company’s or any Guarantor’s knowledge, with the
employees of any principal supplier of the Company, exists or, to the best of the Company’s
or any Guarantor’s knowledge, is threatened or imminent.

     (t) Intellectual Property Rights. The Company and its subsidiaries own, possess or
license sufficient trademarks, trade names, patent rights, copyrights, licenses, approvals,
trade secrets and other similar rights (collectively, “Intellectual Property Rights”)
reasonably necessary to conduct their businesses as now conducted; and the expected
expiration of any of such Intellectual Property Rights would not result in a Material
Adverse Change. Neither the Company nor any of its subsidiaries has received any notice of
infringement or conflict with asserted Intellectual Property Rights of others, which
infringement or conflict, if the subject of an unfavorable decision, would result in a
Material Adverse Change.

     (u) All Necessary Permits, etc. The Company and each subsidiary possess such valid and
current certificates, authorizations or permits issued by the appropriate municipal, state,
federal or foreign regulatory agencies or bodies necessary to own, lease and operate its
properties and to conduct their respective businesses, except where their failure to possess
them would not, individually or in the aggregate, result in a Material Adverse Change, and
neither the Company nor any subsidiary has received any notice of proceedings relating to
the revocation or modification of, or non-compliance with, any such certificate,
authorization or permit which, singly or in the aggregate, if the subject of an unfavorable
decision, ruling or finding, would result in a Material Adverse Change.

     (v) Title to Properties. The Company and each of its subsidiaries has good and
marketable title to all their real and personal properties and assets reflected as owned in
the financial statements referred to in Section 1(o) hereof (or elsewhere in the Offering
Memorandum), in each case free and clear of any security interests, mortgages, liens,
encumbrances, equities, claims and other defects, except as disclosed in the Offering
Memorandum and such as would not individually or in the aggregate result in a Material
Adverse Change. The real property, improvements, equipment and personal property held under
lease by the Company or any subsidiary are held under valid and enforceable leases, except
as would not individually or in the aggregate result in a Material Adverse Change.

     (w) Tax Law Compliance. The Company and its subsidiaries have filed all necessary
federal, state and foreign income and franchise tax returns and have paid all taxes required
to be paid by any of them and, if due and payable, any related or similar assessment, fine
or penalty levied against any of them except for immaterial filings, taxes, assessments,
fines and penalties. The Company and each Guarantor has made adequate charges, accruals and
reserves in accordance with GAAP in the applicable financial statements referred to in
Section 1(o) hereof in respect of all federal, state and foreign income and franchise taxes for all periods as to which the tax liability of the Company
or any of its subsidiaries has not been finally determined.

10

 

     (x) Company and Guarantors Not an “Investment Company.” The Company has been advised
of the rules and requirements under the Investment Company Act of 1940, as amended (the
“Investment Company Act,” which term, as used herein, includes the rules and regulations of
the Commission promulgated thereunder). Neither the Company nor any Guarantors is, or after
receipt of payment for the Securities will be, an “investment company” within the meaning of
the Investment Company Act and will conduct its business in a manner so that it will not
become subject to the Investment Company Act.

     (y) Insurance. Each of the Company and its subsidiaries are insured by recognized,
financially sound institutions with policies in such amounts and with such deductibles and
covering such risks as are generally deemed adequate and customary for their businesses
including, without limitation, policies covering real and personal property owned or leased
by the Company and its subsidiaries against theft, damage, destruction, acts of vandalism,
flood and earthquakes, except as would not result in a Material Adverse Change. Neither the
Company nor any Guarantor has any reason to believe that it or any subsidiary will not be
able (i) to renew its existing insurance coverage as and when such policies expire or (ii)
to obtain comparable coverage from similar institutions as may be necessary or appropriate
to conduct its business as now conducted and at a cost that would not result in a Material
Adverse Change. Neither of the Company nor any subsidiary has been denied any material
insurance coverage which it has sought or for which it has applied.

     (z) No Price Stabilization or Manipulation. None of the Company or any of the
Guarantors has taken or will take, directly or indirectly, any action designed to or that
might be reasonably expected to cause or result in stabilization or manipulation of the
price of any security of the Company or any Guarantor to facilitate the sale or resale of
the Securities.

     (aa) Solvency. The Company and each Guarantor is, and after giving effect to the
transactions contemplated hereby or in the Offering Memorandum will be, Solvent. As used
herein, the term “Solvent” means, with respect to the Company and each Guarantor on a
particular date, that on such date: (1) the fair value of its assets (both at fair market
value and at present fair saleable value on an orderly basis) is in excess of the total
amount of its probable liabilities, including, without duplication, contingent obligations
of the Company or such Guarantor, as appropriate; and (2) it is then able and expects to be
able to pay its debts and liabilities, including its contingent liabilities, as they mature;
and (3) it has capital not unreasonably small to carry on its business as conducted and as
proposed to be conducted.

     (bb) Compliance with Sarbanes-Oxley. The Company and its subsidiaries and their
respective officers and directors are in compliance with the applicable provisions of the
Sarbanes-Oxley Act of 2002 (the “Sarbanes-Oxley Act,” which term, as
used herein, includes the rules and regulations of the Commission promulgated
thereunder).

11

 

     (cc) Company’s Accounting System. The Company and its subsidiaries maintain a system
of accounting controls that is in compliance with the Sarbanes-Oxley Act and is sufficient
to provide reasonable assurances that: (i) transactions are executed in accordance with
management’s general or specific authorization; (ii) transactions are recorded as necessary
to permit preparation of financial statements in conformity with GAAP and to maintain
accountability for assets; (iii) access to assets is permitted only in accordance with
management’s general or specific authorization; and (iv) the recorded accountability for
assets is compared with existing assets at reasonable intervals and appropriate action is
taken with respect to any differences.

     (dd) Disclosure Controls and Procedures. The Company has established and maintains
disclosure controls and procedures (as such term is defined in Rules 13a-15 and 15d-15 under
the Exchange Act); such disclosure controls and procedures are designed to ensure that
material information relating to the Company and its subsidiaries is made known to the chief
executive officer and chief financial officer of the Company by others within the Company or
any of its subsidiaries, and such disclosure controls and procedures are reasonably
effective to perform the functions for which they were established subject to the
limitations of any such control system; the Company’s auditors and the Audit Committee of
the Board of Directors of the Company have been advised of: (i) any significant
deficiencies or material weaknesses in the design or operation of internal control over
financial reporting which are reasonably likely to adversely affect the Company’s ability to
record, process, summarize, and report financial information; and (ii) any fraud, whether or
not material, that involves management or other employees who have a significant role in the
Company’s internal control over financial reporting; and since the date of the most recent
evaluation of such disclosure controls and procedures, there have been no significant
changes in internal control over financial reporting that have materially affected, or are
reasonably likely to materially affect, the Company’s internal control over financial
reporting.

     (ee) Regulations T, U, X. Neither the Company nor any Guarantor nor any of their
respective subsidiaries nor any agent thereof acting on their behalf has taken, and none of
them will take, any action that might cause this Agreement or the issuance or sale of the
Securities to violate Regulation T, Regulation U or Regulation X of the Board of Governors
of the Federal Reserve System.

     (ff) Compliance with and Liability Under Environmental Laws. Except as would not,
individually or in the aggregate, result in a Material Adverse Change (i) neither the
Company nor any of its subsidiaries is in violation of any applicable federal, state, local
or foreign law or regulation relating to pollution or protection of human health or the
environment (including, without limitation, ambient air, surface water, groundwater, land
surface or subsurface strata) or wildlife, including without limitation, laws and
regulations relating to emissions, discharges, releases or threatened releases of chemicals,
pollutants, contaminants, wastes, toxic substances, hazardous substances, petroleum and
petroleum products (collectively, “Materials of Environmental Concern”), or otherwise
relating to the manufacture, processing, distribution, use, treatment, storage,
disposal, transport or handling of Materials of Environmental Concern (collectively,
“Environmental Laws”), which violation includes, but is not limited to, noncompliance

12

 

with
any permits or other governmental authorizations required for the operation of the business
of the Company or its subsidiaries under applicable Environmental Laws, or noncompliance
with the terms and conditions thereof, nor has the Company or any of its subsidiaries
received any written communication, whether from a governmental authority responsible for
enforcing applicable Environmental Laws, citizens’ group, employee or otherwise, that
alleges that the Company or any of its subsidiaries is in violation of any Environmental
Law; (ii) there is no claim, action or cause of action filed with a court or governmental
authority, no investigation with respect to which the Company or any Guarantor has received
written notice, and no written notice by any person or entity alleging potential liability
for investigatory costs, cleanup costs, governmental responses costs, natural resources
damages, property damages, personal injuries, attorneys’ fees or penalties arising out of,
based on or resulting from the presence, or release into the environment, of any Material of
Environmental Concern at any location owned, leased or operated by the Company or any of its
subsidiaries, now or in the past (collectively, “Environmental Claims”), pending or, to the
Company’s or any Guarantor’s knowledge, threatened against the Company or any of its
subsidiaries or any person or entity whose liability for any Environmental Claim the Company
or any of its subsidiaries has retained or assumed either contractually or by operation of
law; (iii) to the Company’s or any Guarantor’s knowledge, there are no past or present
actions, activities, circumstances, conditions, events or incidents, including, without
limitation, the release, emission, discharge, presence or disposal of any Material of
Environmental Concern, that could reasonably be expected to result in a violation of any
applicable Environmental Law or form the basis of a potential Environmental Claim against
the Company or any of its subsidiaries or against any person or entity whose liability for
any Environmental Claim the Company or any of its subsidiaries has retained or assumed
either contractually or by operation of law; (iv) neither the Company nor any of its
subsidiaries is conducting or paying for, in whole or in part, any investigation, response
or other corrective action pursuant to any Environmental Law at any site or facility, nor is
any of them subject or a party to any order, judgment, decree, contract or agreement which
imposes any obligation or liability under any Environmental Law; and (v) no lien, charge,
encumbrance or restriction has been recorded pursuant to any Environmental Law with respect
to any assets, facility or property owned, operated or leased by the Company or any of its
subsidiaries.

     (gg) Costs of Environmental Compliance. There are no costs and liabilities associated
with Environmental Laws (including, without limitation, any capital or operating
expenditures required for clean-up, closure of properties or compliance with Environmental
Laws or any permit, license or approval, any related constraints on operating activities and
any potential liabilities to third parties), which could, individually or in the aggregate,
reasonably be expected to result in a Material Adverse Change.

     (hh) ERISA Compliance. The Company and its subsidiaries and any “employee benefit
plan” (as defined under the Employee Retirement Income Security Act of 1974 (as amended,
“ERISA,” which term, as used herein, includes the regulations and published interpretations
thereunder) established or maintained by the Company, its subsidiaries or their ERISA Affiliates (as defined below) are in compliance in all
material respects with ERISA and, to the knowledge of the Company, each “multiemployer plan”
(as defined in Section 4001 of ERISA) to which the Company, its subsidiaries or an

13

 

ERISA
Affiliate contributes (a “Multiemployer Plan”) is in compliance in all material respects
with ERISA, except as would not individually or in the aggregate result in a Material
Adverse Change. “ERISA Affiliate” means, with respect to the Company or a subsidiary, any
member of any group of organizations described in Section 414 of the Internal Revenue Code
of 1986 (as amended, the “Code,” which term, as used herein, includes the regulations and
published interpretations thereunder) of which the Company or such subsidiary is a member.
No “reportable event” (as defined under ERISA) has occurred or is reasonably expected to
occur with respect to any “employee benefit plan” established or maintained by the Company,
its subsidiaries or any of their ERISA Affiliates. No “single employer plan” (as defined in
Section 4001 of ERISA) established or maintained by the Company, its subsidiaries or any of
their ERISA Affiliates, if such “employee benefit plan” were terminated, would have any
“amount of unfunded benefit liabilities” (as defined under ERISA). Except as would not
individually or in the aggregate result in a Material Adverse Change, neither the Company,
its subsidiaries nor any of their ERISA Affiliates has incurred or reasonably expects to
incur any liability under (i) Title IV of ERISA with respect to termination of, or
withdrawal from, any “employee benefit plan” or (ii) Sections 412, 4971, 4975 or 4980B of
the Code. Each “employee benefit plan” established or maintained by the Company, its
subsidiaries or any of their ERISA Affiliates that is intended to be qualified under Section
401 of the Code is so qualified and nothing has occurred, whether by action or failure to
act, which would reasonably be expected to cause the loss of such qualification.

     (ii) Compliance with Labor Laws. Except as otherwise disclosed in the Offering
Memorandum or as would not, individually or in the aggregate, result in a Material Adverse
Change, (i) there is (A) no unfair labor practice complaint pending or, to the Company’s or
any Guarantor’s knowledge, threatened against the Company or any of its subsidiaries before
the National Labor Relations Board, and no grievance or arbitration proceeding arising out
of or under collective bargaining agreements pending, or to the Company’s or any Guarantor’s
knowledge, threatened, against the Company or any of its subsidiaries, (B) no strike, labor
dispute, slowdown or stoppage pending or, to the Company’s or any Guarantor’s knowledge,
threatened against the Company or any of its subsidiaries and (C) no union representation
question existing with respect to the employees of the Company or any of its subsidiaries
and, to the Company’s or any Guarantor’s knowledge, no union organizing activities taking
place and (ii) there has been no violation of any federal, state or local law relating to
discrimination in hiring, promotion or pay of employees or of any applicable wage or hour
laws.

     (jj) Related Party Transactions. No relationship, direct or indirect, exists between
or among any of the Company or any affiliate of the Company, on the one hand, and any
director, officer, member, stockholder, customer or supplier of the Company or any affiliate
of the Company, on the other hand, which is required by the Securities Act to be disclosed
in a registration statement on Form S-4 which is not so disclosed in the Offering
Memorandum. Except as otherwise disclosed in the Offering Memorandum, there are no
outstanding loans, advances (except advances for business expenses in the
ordinary course of business) or guarantees of indebtedness by the Company or any
affiliate of the Company to or for the benefit of any of the officers or directors of the
Company or any affiliate of the Company or any of their respective family members.

14

 

     (kk) No Unlawful Contributions or Other Payments. Neither the Company nor any of
its subsidiaries nor, to the knowledge of the Company or any Guarantor, any director,
officer, agent, employee or affiliate of the Company or any of its subsidiaries is aware of
or has taken any action, directly or indirectly, that would result in a violation by such
persons of the FCPA, including, without limitation, making use of the mails or any means or
instrumentality of interstate commerce corruptly in furtherance of an offer, payment,
promise to pay or authorization of the payment of any money, or other property, gift,
promise to give, or authorization of the giving of anything of value to any “foreign
official” (as such term is defined in the FCPA) or any foreign political party or official
thereof or any candidate for foreign political office, in contravention of the FCPA and the
Company, its subsidiaries and, to the knowledge of the Company and each Guarantor, its
affiliates have conducted their businesses in compliance with the FCPA and have instituted
and maintain policies and procedures designed to ensure, and which are reasonably expected
to continue to ensure, continued compliance therewith. “FCPA” means Foreign Corrupt
Practices Act of 1977, as amended, and the rules and regulations thereunder.

     (ll) No Conflict with Money Laundering Laws. The operations of the Company and its
subsidiaries are and have been conducted at all times in compliance with applicable
financial recordkeeping and reporting requirements of the Currency and Foreign Transactions
Reporting Act of 1970, as amended, the money laundering statutes of all applicable
jurisdictions, the rules and regulations thereunder and any related or similar rules,
regulations or guidelines issued, administered or enforced by any governmental agency
(collectively, the “Money Laundering Laws”) and no action, suit or proceeding by or before
any court or governmental agency, authority or body or any arbitrator involving the Company
or any of its subsidiaries with respect to the Money Laundering Laws is pending or, to the
best knowledge of the Company and each Guarantor, threatened.

     (mm) No Conflict with OFAC Laws. Neither the Company nor any of its subsidiaries nor,
to the knowledge of the Company or any Guarantor, any director, officer, agent, employee or
affiliate of the Company or any of its subsidiaries is currently subject to any U.S.
sanctions administered by the Office of Foreign Assets Control of the U.S. Treasury
Department (“OFAC”); and the Company will not directly or indirectly use the proceeds of the
offering, or lend, contribute or otherwise make available such proceeds to any subsidiary,
joint venture partner or other person or entity, for the purpose of financing the activities
of any person currently subject to any U.S. sanctions administered by OFAC.

     (nn) Regulation S. The Company, the Guarantors and their respective affiliates and all
persons acting on their behalf (other than the Initial Purchasers, as to whom the Company
and the Guarantors make no representation) have complied with and will comply with the
offering restrictions requirements of Regulation S in connection with the offering of the
Securities outside the United States and, in connection therewith, the Offering Memorandum
will contain the disclosure required by Rule 902. Each of the Company and the Guarantors is
a “reporting issuer”, as defined in Rule 902 under the Securities Act.

15

 

     (oo) Excluded Domestic Subsidiaries. Each of the domestic subsidiaries of the Company
in existence on the date hereof that is not a Guarantor in respect of the Securities, is
listed on Schedule E, and individually and in the aggregate constituted less than 5%
of the Company’s consolidated assets and less than 5% of the Company’s consolidated revenue
in fiscal 2010.

     (pp) Dividends and Distributions. Except as disclosed in the Offering Memorandum, and
for restrictions contained in general corporate, limited liability company and partnership
laws, no subsidiary of the Company is currently prohibited, directly or indirectly, from
paying any dividends to the Company, from making any other distribution on such subsidiary’s
capital stock, from repaying to the Company any loans or advances to such subsidiary from
the Company or from transferring any of such subsidiary’s property or assets to the Company
or any other subsidiary of the Company, in each case, individually or in the aggregate, in
any manner that could reasonably be expected to have a material adverse effect on the
Company’s ability to meet its payment obligations under the Indenture.

     Any certificate signed by an officer of the Company or any Guarantor and delivered to the
Initial Purchasers or to counsel for the Initial Purchasers shall be deemed to be a representation
and warranty by the Company or such Guarantor to each Initial Purchaser as to the matters set forth
therein.

     SECTION 2. Purchase, Sale and Delivery of the Securities.

     (a) The Securities. Each of the Company and the Guarantors agrees to issue and sell to the
Initial Purchasers, severally and not jointly, all of the Securities, and subject to the conditions
set forth herein, the Initial Purchasers agree, severally and not jointly, to purchase from the
Company and the Guarantors the aggregate principal amount of Securities set forth opposite their
names on Schedule B, at a purchase price of 98.25% of the principal amount thereof payable
on the Closing Date, in each case, on the basis of the representations, warranties and agreements
herein contained, and upon the terms herein set forth.

     (b) The Closing Date. Delivery of certificates for the Securities in definitive form to be
purchased by the Initial Purchasers and payment therefor shall be made at the offices of Shearman &
Sterling LLP (or such other place as may be agreed to by the Company and Merrill Lynch) at 9:00
a.m. New York City time, on April 18, 2011, or such other time and date as Merrill Lynch shall
designate by notice to the Company (the time and date of such closing are called the “Closing
Date”). The Company hereby acknowledges that circumstances under which Merrill Lynch may provide
notice to postpone the Closing Date as originally scheduled include, but are in no way limited to,
any determination by the Company or the Initial Purchasers to recirculate to investors copies of an
amended or supplemented Offering Memorandum or a delay as contemplated by the provisions of Section
17 hereof.

     (c) Delivery of the Securities. The Company shall deliver, or cause to be delivered, to
Merrill Lynch for the accounts of the several Initial Purchasers global certificates for the Notes
at the Closing Date against the irrevocable release of a wire transfer of immediately available
funds for the amount of the purchase price therefor. The certificates for the Notes shall be

16

 

in such denominations and registered in the name of Cede & Co., as nominee of the Depositary,
pursuant to the DTC Agreement, and shall be made available for inspection on the business day
preceding the Closing Date at a location in New York City, as Merrill Lynch may designate. Time
shall be of the essence, and delivery at the time and place specified in this Agreement is a
further condition to the obligations of the Initial Purchasers.

     (d) Initial Purchasers as Qualified Institutional Buyers. Each Initial Purchaser severally
and not jointly represents and warrants to, and agrees with, the Company that:

     (i) it will offer and sell Securities only to (a) persons who it reasonably believes
are “qualified institutional buyers” within the meaning of Rule 144A (“Qualified
Institutional Buyers”) in transactions meeting the requirements of Rule 144A or (b) upon the
terms and conditions set forth in Annex I to this Agreement;

     (ii) it is a Qualified Institutional Buyer and an institutional “accredited investor”
within the meaning of Rule 501(a)(1), (2), (3) or (7) under the Securities Act; and

     (iii) it will not offer or sell Securities by, any form of general solicitation or
general advertising, including but not limited to the methods described in Rule 502(c) under
the Securities Act.

     SECTION 3. Additional Covenants. Each of the Company and the Guarantors further jointly and
severally covenants and agrees with each Initial Purchaser as follows:

     (a) Preparation of Final Offering Memorandum; Initial Purchasers’ Review of Proposed
Amendments and Supplements and Company Additional Written Communications. As promptly as
practicable following the Time of Sale and in any event not later than the second business
day following the date hereof, the Company will prepare and deliver to the Initial
Purchasers the Final Offering Memorandum, which shall consist of the Preliminary Offering
Memorandum as modified only by the information contained in the Pricing Supplement. The
Company will not amend or supplement the Preliminary Offering Memorandum or the Pricing
Supplement without the prior consent of the Representative. The Company will not amend or
supplement the Final Offering Memorandum prior to the Closing Date unless the Representative
shall previously have been furnished a copy of the proposed amendment or supplement at least
one business day prior to the proposed use or filing, and shall not have objected to such
amendment or supplement. Before making, preparing, using, authorizing, approving or
distributing any Company Additional Written Communication, the Company will furnish to the
Representative a copy of such written communication for review and will not make, prepare,
use, authorize, approve or distribute any such written communication to which the
Representative reasonably objects.

     (b) Amendments and Supplements to the Final Offering Memorandum and Other Securities
Act Matters. If at any time prior to the Closing Date (i) any event shall occur or
condition shall exist as a result of which any of the Pricing Disclosure Package as then
amended or supplemented would include any untrue statement of a material fact or omit to
state any material fact necessary in order to make the statements

17

 

therein, in the light of the circumstances under which they were made, not misleading
or (ii) it is necessary to amend or supplement any of the Pricing Disclosure Package to
comply with law, the Company and the Guarantors will immediately notify the Initial
Purchasers thereof and forthwith prepare and (subject to Section 3(a) hereof) furnish to the
Initial Purchasers such amendments or supplements to any of the Pricing Disclosure Package
as may be necessary so that the statements in any of the Pricing Disclosure Package as so
amended or supplemented will not, in the light of the circumstances under which they were
made, be misleading or so that any of the Pricing Disclosure Package will comply with all
applicable law. If, prior to the completion of the placement of the Securities by the
Initial Purchasers with the Subsequent Purchasers, any event shall occur or condition exist
as a result of which it is necessary to amend or supplement the Final Offering Memorandum,
as then amended or supplemented, in order to make the statements therein, in the light of
the circumstances when the Final Offering Memorandum is delivered to a Subsequent Purchaser,
not misleading, or if in the judgment of the Representative or counsel for the Initial
Purchasers it is otherwise necessary to amend or supplement the Final Offering Memorandum to
comply with law, the Company and the Guarantors agree to promptly prepare (subject to
Section 3 hereof), file with the Commission and furnish at its own expense to the Initial
Purchasers, amendments or supplements to the Final Offering Memorandum so that the
statements in the Final Offering Memorandum as so amended or supplemented will not, in the
light of the circumstances at the Closing Date and at the time of sale of Securities, be
misleading or so that the Final Offering Memorandum, as amended or supplemented, will comply
with all applicable law.

     Following the consummation of the Exchange Offer or the effectiveness of an applicable
shelf registration statement and for so long as required by the Registration Rights
Agreement, if, in the judgment of the Representative, the Initial Purchasers or any of their
affiliates (as such term is defined in the Securities Act) are required to deliver a
prospectus in connection with sales of, or market-making activities with respect to, the
Securities, the Company and the Guarantors agree to periodically amend the applicable
registration statement so that the information contained therein complies with the
requirements of Section 10 of the Securities Act, to amend the applicable registration
statement or supplement the related prospectus or the documents incorporated therein when
necessary to reflect any material changes in the information provided therein so that the
registration statement and the prospectus will not contain any untrue statement of a
material fact or omit to state any material fact necessary in order to make the statements
therein, in the light of the circumstances existing as of the date the prospectus is so
delivered, not misleading and to provide the Initial Purchasers with copies of each
amendment or supplement filed and such other documents as the Initial Purchasers may
reasonably request.

     The Company and each Guarantor hereby expressly acknowledges that the indemnification
and contribution provisions of Sections 8 and 9 hereof are specifically applicable and
relate to each offering memorandum, registration statement, prospectus, amendment or
supplement referred to in this Section 3.

     (c) Copies of the Offering Memorandum. The Company agrees to furnish the Initial
Purchasers, without charge, as many copies of the Pricing Disclosure Package

18

 

and the Final Offering Memorandum and any amendments and supplements thereto as they
shall reasonably request.

     (d) Blue Sky Compliance. Each of the Company and the Guarantors shall cooperate with
the Representative and counsel for the Initial Purchasers to qualify or register (or to
obtain exemptions from qualifying or registering) all or any part of the Securities for
offer and sale under the securities laws of the several states of the United States, the
provinces of Canada or any other jurisdictions designated by the Representative and
reasonably acceptable to the Company, shall comply with such laws and shall continue such
qualifications, registrations and exemptions in effect so long as required for the
distribution of the Securities. None of the Company or any of the Guarantors shall be
required to qualify as a foreign corporation or to take any action that would subject it to
general service of process in any such jurisdiction where it is not presently qualified or
where it would be subject to taxation as a foreign corporation. The Company will advise the
Representative promptly of the suspension of the qualification or registration of (or any
such exemption relating to) the Securities for offering, sale or trading in any jurisdiction
or any initiation or threat of any proceeding for any such purpose, and in the event of the
issuance of any order suspending such qualification, registration or exemption, each of the
Company and the Guarantors shall use its reasonable best efforts to obtain the withdrawal
thereof at the earliest possible moment.

     (e) Use of Proceeds. The Company shall apply the net proceeds from the sale of the
Securities sold by it in the manner described under the caption “Use of Proceeds” in the
Pricing Disclosure Package.

     (f) The Depositary. The Company will cooperate with the Initial Purchasers and use its
reasonable best efforts to permit the Securities to be eligible for clearance and settlement
through the facilities of the Depositary.

     (g) Additional Issuer Information. Prior to the completion of the placement of the
Securities by the Initial Purchasers with the Subsequent Purchasers, the Company shall file,
on a timely basis, with the Commission and the NASDAQ Global Select Market all reports and
documents required to be filed under Section 13 or 15 of the Exchange Act. Additionally, at
any time when the Company is not subject to Section 13 or 15 of the Exchange Act, for the
benefit of holders and beneficial owners from time to time of the Securities, the Company
shall furnish, at its expense, upon request, to holders and beneficial owners of Securities
and prospective purchasers of Securities information (“Additional Issuer Information”)
satisfying the requirements of Rule 144A(d).

     (h) Agreement Not To Offer or Sell Additional Securities. During the period of 180
days following the date hereof, the Company and each Guarantor will not, without the prior
written consent of Merrill Lynch (which consent may be withheld at the sole discretion of
Merrill Lynch), directly or indirectly, sell, offer, contract or grant any option to sell,
pledge, transfer or establish an open “put equivalent position” within the meaning of Rule
16a-1 under the Exchange Act, or otherwise dispose of or transfer, or announce the offering
of, or file any registration statement under the Securities Act in respect of, any debt
securities of the Company or any Guarantor or securities exchangeable

19

 

for or convertible into debt securities of the Company or any Guarantor (other than as
contemplated by this Agreement and to register the Exchange Securities).

     (i) Future Reports to the Initial Purchasers. At any time when the Company is not
subject to Section 13 or 15 of the Exchange Act and any Securities or Exchange Securities
remain outstanding, the Company will furnish to the Representative and, upon request, to
each of the other Initial Purchasers: (i) as soon as practicable after the end of each
fiscal year, copies of the Annual Report of the Company containing the balance sheet of the
Company as of the close of such fiscal year and statements of income, stockholders’ equity
and cash flows for the year then ended and the opinion thereon of the Company’s independent
public or certified public accountants; (ii) as soon as practicable after the filing
thereof, copies of each proxy statement, Annual Report on Form 10-K, Quarterly Report on
Form 10-Q, Current Report on Form 8-K or other report filed by the Company with the
Commission, the Financial Industry Regulatory Authority (“FINRA”) or any securities
exchange; and (iii) as soon as available, copies of any report or communication of the
Company mailed generally to holders of its capital stock or debt securities (including the
holders of the Securities), if, in each case, such documents are not filed with the
Commission within the time periods specified by the Commission’s rules and regulations under
Section 13 or 15 of the Exchange Act.

     (j) No Integration. The Company and each Guarantor agree that they will not and will
cause their Affiliates not to make any offer or sale of securities of the Company of any
class if, as a result of the doctrine of “integration” referred to in Rule 502 under the
Securities Act, such offer or sale would render invalid (for the purpose of (i) the sale of
the Securities by the Company to the Initial Purchasers, (ii) the resale of the Securities
by the Initial Purchasers to Subsequent Purchasers or (iii) the resale of the Securities by
such Subsequent Purchasers to others) the exemption from the registration requirements of
the Securities Act provided by Section 4(2) thereof or by Rule 144A or by Regulation S
thereunder or otherwise.

     (k) No General Solicitation or Directed Selling Efforts. The Company and each
Guarantor agree that they will not and will not permit any of their Affiliates or any other
person acting on its or their behalf (other than the Initial Purchasers, as to which no
covenant is given) to (i) solicit offers for, or offer or sell, the Securities by means of
any form of general solicitation or general advertising within the meaning of Rule 502(c) of
Regulation D or in any manner involving a public offering within the meaning of Section 4(2)
of the Securities Act or (ii) engage in any directed selling efforts with respect to the
Securities within the meaning of Regulation S, and the Company and each Guarantor will and
will cause all such persons to comply with the offering restrictions requirement of
Regulation S with respect to the Securities.

     (l) No Restricted Resales. Until the earlier of the consummation of the Exchange Offer
and one year after the Closing Date, the Company and each Guarantor will not, and will not
permit any of its affiliates (as defined in Rule 144 under the Securities Act) to resell any
of the Notes that have been reacquired by any of them.

20

 

     (m) Legended Securities. Each certificate for a Note will bear the legend contained in
“Transfer Restrictions” in the Pricing Disclosure Package for the time period and upon the
other terms stated in the Pricing Disclosure Package.

     The Representative on behalf of the several Initial Purchasers, may, in their sole discretion,
waive in writing the performance by the Company or any Guarantor of any one or more of the
foregoing covenants or extend the time for their performance.

     SECTION 4. Payment of Expenses. Each of the Company and the Guarantors jointly and severally
agrees to pay all costs, fees and expenses incurred in connection with the performance of its
obligations hereunder and in connection with the transactions contemplated hereby, including,
without limitation, (i) all expenses incident to the issuance and delivery of the Securities
(including all printing and engraving costs), (ii) all necessary issue, transfer and other stamp
taxes in connection with the issuance and sale of the Securities to the Initial Purchasers, (iii)
all fees and expenses of the Company’s and the Guarantors’ counsel, independent public or certified
public accountants and other advisors, (iv) all costs and expenses incurred in connection with the
preparation, printing, filing, shipping and distribution of the Pricing Disclosure Package and the
Final Offering Memorandum (including financial statements and exhibits), and all amendments and
supplements thereto, and the Transaction Documents, (v) all filing fees, attorneys’ fees and
expenses incurred by the Company, the Guarantors or the Initial Purchasers in connection with
qualifying or registering (or obtaining exemptions from the qualification or registration of) all
or any part of the Securities for offer and sale under the securities laws of the several states of
the United States, the provinces of Canada or other jurisdictions designated by the Initial
Purchasers and reasonably acceptable to the Company (including, without limitation, the cost of
preparing, printing and mailing preliminary and final blue sky or legal investment memoranda and
any related supplements to the Pricing Disclosure Package or the Final Offering Memorandum), (vi)
the fees and expenses of the Trustee, including the fees and disbursements of counsel for the
Trustee in connection with the Indenture, the Securities and the Exchange Securities, (vii) any
fees payable in connection with the rating of the Securities or the Exchange Securities with the
ratings agencies, (viii) any filing fees incident to, and any reasonable fees and disbursements of
counsel to the Initial Purchasers in connection with the review by FINRA, if any, of the terms of
the sale of the Securities or the Exchange Securities and (ix) all fees and expenses (including
reasonable fees and expenses of counsel) of the Company and the Guarantors in connection with
approval of the Securities by the Depositary for “book-entry” transfer, and the performance by the
Company and the Guarantors of its their respective other obligations under this Agreement. Except
as provided in this Section 4 and Sections 6, 8 and 9 hereof, the Initial Purchasers shall pay
their own expenses, including the fees and disbursements of their counsel.

     SECTION 5. Conditions of the Obligations of the Initial Purchasers. The obligations of the
several Initial Purchasers to purchase and pay for the Securities as provided herein on the Closing
Date shall be subject to the accuracy of the representations and warranties on the part of the
Company and the Guarantors set forth in Section 1 hereof as of the date hereof and as of the
Closing Date as though then made and to the timely performance by the Company and each Guarantor of
their covenants and other obligations hereunder, and to each of the following additional
conditions:

21

 

     (a) Accountants’ Comfort Letter. On the date hereof, the Initial Purchasers shall have
received from PricewaterhouseCoopers LLP, the independent registered public accounting firm
for the Company, a “comfort letter” dated the date hereof addressed to the Initial
Purchasers, in form and substance satisfactory to the Representatives, covering the
financial information in the Pricing Disclosure Package and other customary matters. In
addition, on the Closing Date, the Initial Purchasers shall have received from such
accountants a “bring-down comfort letter” dated the Closing Date addressed to the Initial
Purchasers, in form and substance satisfactory to the Representative, in the form of the
“comfort letter” delivered on the date hereof, except that (i) it shall cover the financial
information in the Final Offering Memorandum and any amendment or supplement thereto and
(ii) procedures shall be brought down to a date no more than 3 days prior to the Closing
Date.

     (b) No Material Adverse Change or Ratings Agency Change. For the period from and after
the date of this Agreement and prior to the Closing Date:

     (i) in the reasonable judgment of the Representative there shall not have
occurred any Material Adverse Change; and

     (ii) there shall not have occurred any downgrading, nor shall any notice have
been given of any intended or potential downgrading or of any review for a possible
change that does not indicate the direction of the possible change, in the rating
accorded the Company or any of its subsidiaries or any of their securities or
indebtedness by any “nationally recognized statistical rating organization” as such
term is defined for purposes of Rule 436 under the Securities Act.

     (c) Opinion of Counsel for the Company. On the Closing Date the Initial Purchasers
shall have received the favorable opinion of Jones, Walker, Waechter, Poitevent, Carrere and
Denegre L.L.P., counsel for the Company, dated as of such Closing Date, the form of which is
attached as Exhibit A.

     (d) Opinion of Local Counsel for the Material Jurisdiction Guarantors. On the Closing
Date the Initial Purchasers shall have received the favorable opinion of those local counsel
for the Guarantors listed on Schedule F, collectively representing approximately 81%
of the Company’s total revenues for the fiscal year ended October 31, 2010 (the “Material
Jurisdiction Guarantors”), dated as of such Closing Date, the form of which is attached as
Exhibit B.

     (e) Opinion of Counsel for the Initial Purchasers. On the Closing Date the Initial
Purchasers shall have received the favorable opinion of Shearman & Sterling LLP, counsel for
the Initial Purchasers, dated as of such Closing Date, with respect to such matters as may
be reasonably requested by the Initial Purchasers.

     (f) Officers’ Certificate. On the Closing Date the Initial Purchasers shall have
received a written certificate executed by the Chairman of the Board, Chief Executive
Officer, President, Chief Financial Officer or Senior Vice President—Finance of the Company
and an authorized signatory of each Guarantor and a second officer who shall

22

 

be either the Chief Financial Officer, Senior Vice President—Finance or Chief
Accounting Officer of the Company and an authorized signatory of each Guarantor, dated as of
the Closing Date, to the effect set forth in Section 5(b)(ii) hereof, and further to the
effect that:

     (i) for the period from and after the date of this Agreement and prior to the
Closing Date there has not occurred any Material Adverse Change;

     (ii) the representations, warranties and covenants of the Company and the
Guarantors set forth in Section 1 hereof were true and correct as of the date hereof
and are true and correct as of the Closing Date with the same force and effect as
though expressly made on and as of the Closing Date; and

     (iii) the Company and each Guarantor has complied with all the agreements and
satisfied all the conditions on their parts to be performed or satisfied at or prior
to the Closing Date.

     (g) Indenture; Registration Rights Agreement; DTC Agreement. The Company and the
Guarantors shall have executed and delivered the Indenture, in form and substance reasonably
satisfactory to the Initial Purchasers, and the Initial Purchasers shall have received
executed copies thereof. The Company and the Guarantors shall have executed and delivered
the Registration Rights Agreement, in form and substance reasonably satisfactory to the
Initial Purchasers, and the Initial Purchasers shall have received such executed
counterparts. The Company shall have executed and delivered the DTC Agreement, if required
by DTC, in form and substance reasonably satisfactory to the Initial Purchasers, and the
Initial Purchasers shall have received executed copies thereof.

     (h) Additional Documents. On or before the Closing Date, the Initial Purchasers and
counsel for the Initial Purchasers shall have received such information, documents and
opinions as they may reasonably require for the purposes of enabling them to pass upon the
issuance and sale of the Securities as contemplated herein, or in order to evidence the
accuracy of any of the representations and warranties, or the satisfaction of any of the
conditions or agreements, herein contained.

     If any condition specified in this Section 5 is not satisfied when and as required to be
satisfied, this Agreement may be terminated by the Representative by notice to the Company at any
time on or prior to the Closing Date, which termination shall be without liability on the part of
any party to any other party, except that Sections 4, 6, 8 and 9 hereof shall at all times be
effective and shall survive such termination.

     SECTION 6. Reimbursement of Initial Purchasers’ Expenses. If this Agreement is terminated by
the Representative pursuant to Section 5 or 10(i) hereof, including if the sale to the Initial
Purchasers of the Securities on the Closing Date is not consummated because of any refusal,
inability or failure on the part of the Company or any Guarantor to perform any agreement herein or
to comply with any provision hereof, the Company and each Guarantor, jointly and severally, agree
to reimburse the Initial Purchasers, severally, upon demand for all out-of-pocket
expenses that shall have been reasonably incurred by the Initial Purchasers in connection with

23

 

the proposed purchase and the offering and sale of the Securities, including, without limitation,
fees and disbursements of counsel, printing expenses, travel expenses, postage, facsimile and
telephone charges.

     SECTION 7. Offer, Sale and Resale Procedures. Each of the Initial Purchasers, on the one
hand, and the Company and each of the Guarantors, on the other hand, hereby agree to observe the
following procedures in connection with the offer and sale of the Securities:

     (a) Offers and sales of the Securities will be made only by the Initial Purchasers or
Affiliates thereof qualified to do so in the jurisdictions in which such offers or sales are
made. Each such offer or sale shall only be made to persons whom the offeror or seller
reasonably believes to be Qualified Institutional Buyers or non-U.S. persons outside the
United States to whom the offeror or seller reasonably believes offers and sales of the
Securities may be made in reliance upon Regulation S upon the terms and conditions set forth
in Annex I hereto, which Annex I is hereby expressly made a part hereof.

     (b) No general solicitation or general advertising (within the meaning of Rule 502
under the Securities Act) will be used in the United States in connection with the offering
of the Securities.

     (c) Upon original issuance by the Company, and until such time as the same is no longer
required under the applicable requirements of the Securities Act, the Notes (and all
securities issued in exchange therefor or in substitution thereof, other than the Exchange
Notes) shall bear the legend substantially as described in the Offering Memorandum.

     Following the sale of the Securities by the Initial Purchasers to Subsequent Purchasers
pursuant to the terms hereof, the Initial Purchasers shall not be liable or responsible to the
Company or any Guarantor for any losses, damages or liabilities suffered or incurred by the Company
or any Guarantor, including any losses, damages or liabilities under the Securities Act, arising
from or relating to any resale or transfer of any Security by such Subsequent Purchaser or
subsequent transferee.

     SECTION 8. Indemnification.

     (a) Indemnification of the Initial Purchasers. Each of the Company and the Guarantors,
jointly and severally, agrees to indemnify and hold harmless each Initial Purchaser, its
affiliates, directors, officers and employees, and each person, if any, who controls any Initial
Purchaser within the meaning of the Securities Act and the Exchange Act against any loss, claim,
damage, liability or expense, as incurred, to which such Initial Purchaser, affiliate, director,
officer, employee or controlling person may become subject, under the Securities Act, the Exchange
Act or other federal or state statutory law or regulation, or at common law or otherwise (including
in settlement of any litigation, if such settlement is effected with the written consent of the
Company unless otherwise permitted by paragraph (d)), insofar as such loss, claim, damage,
liability or expense (or actions in respect thereof as contemplated below) arises out of or is
based: (i) upon any untrue statement or alleged untrue statement of a material fact contained in
the Preliminary Offering Memorandum, the Pricing Supplement, any Company Additional Written

24

 

Communication or the Final Offering Memorandum (or any amendment or supplement thereto), or the
omission or alleged omission therefrom of a material fact necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not misleading; or (ii) in
whole or in part upon any inaccuracy in the representations and warranties of the Company contained
herein; or (iii) in whole or in part upon any failure of the Company to perform its obligations
hereunder or under law; or (iv) any act or failure to act or any alleged act or failure to act by
any Initial Purchaser in connection with, or relating in any manner to, the offering contemplated
hereby, and which is included as part of or referred to in any loss, claim, damage, liability or
action arising out of or based upon any matter covered by clause (i) above, provided that the
Company shall not be liable under this clause (iv) to the extent that a court of competent
jurisdiction shall have determined by a final judgment that such loss, claim, damage, liability or
action resulted directly from any such acts or failures to act undertaken or omitted to be taken by
such Initial Purchaser through its gross negligence or willful misconduct; and to reimburse each
Initial Purchaser and each such affiliate, director, officer, employee or controlling person for
any and all expenses (including the fees and disbursements of counsel chosen by Merrill Lynch) as
such expenses are reasonably incurred by such Initial Purchaser or such affiliate, director,
officer, employee or controlling person in connection with investigating, defending, settling,
compromising or paying any such loss, claim, damage, liability, expense or action; provided,
however, that the foregoing indemnity agreement shall not apply, with respect to an Initial
Purchaser, to any loss, claim, damage, liability or expense to the extent, but only to the extent,
arising out of or based upon any untrue statement or alleged untrue statement or omission or
alleged omission made in reliance upon and in conformity with written information furnished to the
Company by such Initial Purchaser through the Representative expressly for use in the Preliminary
Offering Memorandum, the Pricing Supplement, any Company Additional Written Communication or the
Final Offering Memorandum (or any amendment or supplement thereto). The indemnity agreement set
forth in this Section 8(a) shall be in addition to any liabilities that the Company may otherwise
have.

     (b) Indemnification of the Company and the Guarantors. Each Initial Purchaser agrees,
severally and not jointly, to indemnify and hold harmless the Company, each Guarantor, each of
their respective directors, officers, employees and each person, if any, who controls the Company
or any Guarantor within the meaning of the Securities Act or the Exchange Act, against any loss,
claim, damage, liability or expense, as incurred, to which the Company, any Guarantor or any such
director, officer, employee or controlling person may become subject, under the Securities Act, the
Exchange Act, or other federal or state statutory law or regulation, or at common law or otherwise
(including in settlement of any litigation, if such settlement is effected with the written consent
of such Initial Purchaser unless otherwise permitted by paragraph (d)), insofar as such loss,
claim, damage, liability or expense (or actions in respect thereof as contemplated below) arises
out of or is based upon any untrue statement or alleged untrue statement of a material fact
contained in the Preliminary Offering Memorandum, the Pricing Supplement, any Company Additional
Written Communication or the Final Offering Memorandum (or any amendment or supplement thereto), or
the omission or alleged omission therefrom of a material fact necessary in order to make the
statements therein, in the light of the circumstances under which they were made, not misleading,
in each case to the extent, but only to the extent, that such untrue statement or alleged untrue
statement or omission or alleged omission was made in the Preliminary Offering Memorandum, the
Pricing Supplement, any Company Additional Written Communication or the Final Offering Memorandum (or any amendment or supplement thereto),

25

 

in reliance upon and in conformity with written information furnished to the Company by such
Initial Purchaser through the Representative expressly for use therein; and to reimburse the
Company, any Guarantor and each such director, officer, employee or controlling person for any and
all expenses (including the fees and disbursements of counsel) as such expenses are reasonably
incurred by the Company, any Guarantor or such director, officer, employee or controlling person in
connection with investigating, defending, settling, compromising or paying any such loss, claim,
damage, liability, expense or action. Each of the Company and the Guarantors hereby acknowledges
that the only information that the Initial Purchasers through the Representative have furnished to
the Company expressly for use in the Preliminary Offering Memorandum, the Pricing Supplement, any
Company Additional Written Communication or the Final Offering Memorandum (or any amendment or
supplement thereto) are the statements set forth in the third and fourth sentences of the seventh
paragraph and eleventh paragraph under the caption “Plan of Distribution” in the Pricing Disclosure
Package and the Final Offering Memorandum. The indemnity agreement set forth in this Section 8(b)
shall be in addition to any liabilities that each Initial Purchaser may otherwise have.

     (c) Notifications and Other Indemnification Procedures. Promptly after receipt by an
indemnified party under this Section 8 of notice of the commencement of any action, such
indemnified party will, if a claim in respect thereof is to be made against an indemnifying party
under this Section 8, notify the indemnifying party in writing of the commencement thereof;
provided that the failure to so notify the indemnifying party will not relieve it from any
liability which it may have to any indemnified party under this Section 8 except to the extent that
it has been materially prejudiced by such failure (through the forfeiture of substantive rights and
defenses) and shall not relieve the indemnifying party from any liability that the indemnifying
party may have to an indemnified party other than under this Section 8. In case any such action is
brought against any indemnified party and such indemnified party seeks or intends to seek indemnity
from an indemnifying party, the indemnifying party will be entitled to participate in and, to the
extent that it shall elect, jointly with all other indemnifying parties similarly notified, by
written notice delivered to the indemnified party promptly after receiving the aforesaid notice
from such indemnified party, to assume the defense thereof with counsel reasonably satisfactory to
such indemnified party; provided, however, if the defendants in any such action include both the
indemnified party and the indemnifying party and the indemnified party shall have reasonably
concluded that a conflict may arise between the positions of the indemnifying party and the
indemnified party in conducting the defense of any such action or that there may be legal defenses
available to it and/or other indemnified parties which are different from or additional to those
available to the indemnifying party, the indemnified party or parties shall have the right to
select separate counsel to assume such legal defenses and to otherwise participate in the defense
of such action on behalf of such indemnified party or parties. Upon receipt of notice from the
indemnifying party to such indemnified party of such indemnifying party’s election so to assume the
defense of such action and approval by the indemnified party of counsel, the indemnifying party
will not be liable to such indemnified party under this Section 8 for any legal or other expenses
subsequently incurred by such indemnified party in connection with the defense thereof unless (i)
the indemnified party shall have employed separate counsel in accordance with the proviso to the
immediately preceding sentence (it being understood, however, that the indemnifying party shall not
be liable for the expenses of more than one separate counsel (together with local counsel (in each
jurisdiction)), which shall be selected by Merrill Lynch (in the case of
counsel representing the Initial Purchasers or their related persons), representing the
indemnified

26

 

parties who are parties to such action) or (ii) the indemnifying party shall not have
employed counsel satisfactory to the indemnified party to represent the indemnified party within a
reasonable time after notice of commencement of the action, in each of which cases the fees and
expenses of counsel shall be at the expense of the indemnifying party.

     (d) Settlements. The indemnifying party under this Section 8 shall not be liable for any
settlement of any proceeding effected without its written consent, which will not be unreasonably
withheld, but if settled with such consent or if there be a final judgment for the plaintiff, the
indemnifying party agrees to indemnify the indemnified party against any loss, claim, damage,
liability or expense by reason of such settlement or judgment. Notwithstanding the foregoing
sentence, if at any time an indemnified party shall have requested an indemnifying party to
reimburse the indemnified party for fees and expenses of counsel as contemplated by this Section 8,
the indemnifying party agrees that it shall be liable for any settlement of any proceeding effected
without its written consent if (i) such settlement is entered into more than 30 days after receipt
by such indemnifying party of the aforesaid request and (ii) such indemnifying party shall not have
reimbursed the indemnified party in accordance with such request or disputed in good faith the
indemnified party’s entitlement to such reimbursement prior to the date of such settlement. No
indemnifying party shall, without the prior written consent of the indemnified party, effect any
settlement, compromise or consent to the entry of judgment in any pending or threatened action,
suit or proceeding in respect of which any indemnified party is or could have been a party and
indemnity was or could have been sought hereunder by such indemnified party, unless such
settlement, compromise or consent (i) includes an unconditional release of such indemnified party
from all liability on claims that are the subject matter of such action, suit or proceeding and
(ii) does not include any statements as to or any findings of fault, culpability or failure to act
by or on behalf of any indemnified party.

     SECTION 9. Contribution. If the indemnification provided for in Section 8 hereof is for any
reason held to be unavailable to or otherwise insufficient to hold harmless an indemnified party in
respect of any losses, claims, damages, liabilities or expenses referred to therein, then each
indemnifying party shall contribute to the aggregate amount paid or payable by such indemnified
party, as incurred, as a result of any losses, claims, damages, liabilities or expenses referred to
therein (i) in such proportion as is appropriate to reflect the relative benefits received by the
Company and the Guarantors, on the one hand, and the Initial Purchasers, on the other hand, from
the offering of the Securities pursuant to this Agreement or (ii) if the allocation provided by
clause (i) above is not permitted by applicable law, in such proportion as is appropriate to
reflect not only the relative benefits referred to in clause (i) above but also the relative fault
of the Company and the Guarantors, on the one hand, and the Initial Purchasers, on the other hand,
in connection with the statements or omissions or inaccuracies in the representations and
warranties herein which resulted in such losses, claims, damages, liabilities or expenses, as well
as any other relevant equitable considerations. The relative benefits received by the Company and
the Guarantors, on the one hand, and the Initial Purchasers, on the other hand, in connection with
the offering of the Securities pursuant to this Agreement shall be deemed to be in the same
respective proportions as the total net proceeds from the offering of the Securities pursuant to
this Agreement (before deducting expenses) received by the Company, and the total discount received
by the Initial Purchasers bear to the aggregate initial offering price of the Securities. The
relative fault of the Company and the Guarantors, on the one hand, and the Initial Purchasers, on
the other hand, shall be determined by reference to, among other things, whether any such
untrue

27

 

or alleged untrue statement of a material fact or omission or alleged omission to state a
material fact or any such inaccurate or alleged inaccurate representation or warranty relates to
information supplied by the Company and the Guarantors, on the one hand, or the Initial Purchasers,
on the other hand, and the parties’ relative intent, knowledge, access to information and
opportunity to correct or prevent such statement or omission or inaccuracy.

     The amount paid or payable by a party as a result of the losses, claims, damages, liabilities
and expenses referred to above shall be deemed to include, subject to the limitations set forth in
Section 8 hereof, any legal or other fees or expenses reasonably incurred by such party in
connection with investigating or defending any action or claim. The provisions set forth in
Section 8 hereof with respect to notice of commencement of any action shall apply if a claim for
contribution is to be made under this Section 9; provided, however, that no additional notice shall
be required with respect to any action for which notice has been given under Section 8 hereof for
purposes of indemnification.

     The Company, the Guarantors and the Initial Purchasers agree that it would not be just and
equitable if contribution pursuant to this Section 9 were determined by pro rata allocation (even
if the Initial Purchasers were treated as one entity for such purpose) or by any other method of
allocation which does not take account of the equitable considerations referred to in this Section
9.

     Notwithstanding the provisions of this Section 9, no Initial Purchaser shall be required to
contribute any amount in excess of the discount received by such Initial Purchaser in connection
with the Securities distributed by it. No person guilty of fraudulent misrepresentation (within
the meaning of Section 11 of the Securities Act) shall be entitled to contribution from any person
who was not guilty of such fraudulent misrepresentation. The Initial Purchasers’ obligations to
contribute pursuant to this Section 9 are several, and not joint, in proportion to their respective
commitments as set forth opposite their names in Schedule B. For purposes of this Section
9, each affiliate, director, officer and employee of an Initial Purchaser and each person, if any,
who controls an Initial Purchaser within the meaning of the Securities Act and the Exchange Act
shall have the same rights to contribution as such Initial Purchaser, and each director, officer or
employee of the Company or any Guarantor, and each person, if any, who controls the Company or any
Guarantor with the meaning of the Securities Act and the Exchange Act shall have the same rights to
contribution as the Company and the Guarantors.

     SECTION 10. Termination of this Agreement. Prior to the Closing Date, this Agreement may be
terminated by the Representative by notice given to the Company if at any time: (i) trading or
quotation in any of the Company’s securities shall have been suspended or limited by the Commission
or by the NASDAQ Global Select Market, (ii) trading in securities generally on either the NASDAQ
Global Select Market or the New York Stock Exchange (the “NYSE”) shall have been suspended or
limited, or minimum or maximum prices shall have been generally established on any of such
quotation system or stock exchange by the Commission or FINRA; (iii) a general banking moratorium
shall have been declared by any of federal, New York or Louisiana authorities; (iv) there shall
have occurred any outbreak or escalation of national or international hostilities or any crisis or
calamity, or any change in the United States or international financial markets, or any substantial
change or development involving a prospective substantial
change in United States’ or international political, financial or economic conditions, as in
the

28

 

judgment of the Representative is material and adverse and makes it impracticable or
inadvisable to proceed with the offering sale or delivery of the Securities in the manner and on
the terms described in the Pricing Disclosure Package or to enforce contracts for the sale of
securities; (v) in the reasonable judgment of the Representative there shall have occurred any
Material Adverse Change; or (vi) the Company shall have sustained a loss by strike, fire, flood,
earthquake, accident or other calamity of such character as in the reasonable judgment of the
Representative may interfere materially with the conduct of the business and operations of the
Company regardless of whether or not such loss shall have been insured. Any termination pursuant
to this Section 10 shall be without liability on the part of (i) the Company or any Guarantor to
any Initial Purchaser, except that the Company and the Guarantors shall be obligated to reimburse
the expenses of the Initial Purchasers pursuant to Section 4 and to the extent applicable Section 6
hereof, (ii) any Initial Purchaser to the Company or any Guarantor, or (iii) any party hereto to
any other party except that the provisions of Sections 8 and 9 hereof shall at all times be
effective and shall survive such termination.

     SECTION 11. Representations and Indemnities to Survive Delivery. The respective indemnities,
agreements, representations, warranties and other statements of the Company, the Guarantors, their
respective officers and the several Initial Purchasers set forth in or made pursuant to this
Agreement will remain in full force and effect, regardless of any investigation made by or on
behalf of any Initial Purchaser, the Company, any Guarantor or any of their partners, officers or
directors or any controlling person, as the case may be, and will survive delivery of and payment
for the Securities sold hereunder and any termination of this Agreement.

     SECTION 12. Notices. All communications hereunder shall be in writing and shall be mailed,
hand delivered, couriered or facsimiled and confirmed to the parties hereto as follows:

     If to the Initial Purchasers:

Merrill Lynch, Pierce, Fenner & Smith Incorporated

One Bryant Park

New York, New York 10036

Facsimile: (212) 901-7897

Attention: HY Legal Department

     with a copy to:

Shearman & Sterling LLP

599 Lexington Avenue

New York, New York 10022

Facsimile: (646) 848-7974

Attention: Jason Lehner

     If to the Company or the Guarantors:

Stewart Enterprises, Inc.

1333 S. Clearview Parkway

Jefferson, LA 70121

29

 

Facsimile: (504) 729-1407

Attention: Chief Financial Officer

     Any party hereto may change the address or facsimile number for receipt of communications by
giving written notice to the others.

     SECTION 13. Successors. This Agreement will inure to the benefit of and be binding upon the
parties hereto, and to the benefit of the indemnified parties referred to in Sections 8 and 9
hereof, and in each case their respective successors, and no other person will have any right or
obligation hereunder. The term “successors” shall not include any Subsequent Purchaser or other
purchaser of the Securities as such from any of the Initial Purchasers merely by reason of such
purchase.

     SECTION 14. Authority of the Representative. Any action by the Initial Purchasers hereunder
may be taken by Merrill Lynch on behalf of the Initial Purchasers, and any such action taken by
Merrill Lynch shall be binding upon the Initial Purchasers.

     SECTION 15. Partial Unenforceability. The invalidity or unenforceability of any section,
paragraph or provision of this Agreement shall not affect the validity or enforceability of any
other section, paragraph or provision hereof. If any section, paragraph or provision of this
Agreement is for any reason determined to be invalid or unenforceable, there shall be deemed to be
made such minor changes (and only such minor changes) as are necessary to make it valid and
enforceable.

     SECTION 16. Governing Law Provisions. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE
PERFORMED IN SUCH STATE WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES THEREOF.

     (a) Consent to Jurisdiction. Any legal suit, action or proceeding arising out of or based
upon this Agreement or the transactions contemplated hereby (“Related Proceedings”) may be
instituted in the federal courts of the United States of America located in the City and County of
New York or the courts of the State of New York in each case located in the City and County of New
York (collectively, the “Specified Courts”), and each party irrevocably submits to the exclusive
jurisdiction (except for suits, actions, or proceedings instituted in regard to the enforcement of
a judgment of any Specified Court in a Related Proceeding a (“Related Judgment”), as to which such
jurisdiction is non-exclusive) of the Specified Courts in any Related Proceeding. Service of any
process, summons, notice or document by mail to such party’s address set forth above shall be
effective service of process for any Related Proceeding brought in any Specified Court. The
parties irrevocably and unconditionally waive any objection to the laying of venue of any Specified
Proceeding in the Specified Courts and irrevocably and unconditionally waive and agree not to plead
or claim in any Specified Court that any Related Proceeding brought in any Specified Court has been
brought in an inconvenient forum. Each party not located in the United States irrevocably appoints
CT Corporation System as its agent to receive service of process or other legal summons for
purposes of any Related Proceeding that may be instituted in any Specified Court.

30

 

     SECTION 17. Default of One or More of the Several Initial Purchasers. If any one or more of
the several Initial Purchasers shall fail or refuse to purchase Securities that it or they have
agreed to purchase hereunder on the Closing Date, and the aggregate number of Securities which such
defaulting Initial Purchaser or Initial Purchasers agreed but failed or refused to purchase does
not exceed 10% of the aggregate number of the Securities to be purchased on such date, the other
Initial Purchasers shall be obligated, severally, in the proportions that the number of Securities
set forth opposite their respective names on Schedule B bears to the aggregate number of
Securities set forth opposite the names of all such non-defaulting Initial Purchasers, or in such
other proportions as may be specified by the Initial Purchasers with the consent of the
non-defaulting Initial Purchasers, to purchase the Securities which such defaulting Initial
Purchaser or Initial Purchasers agreed but failed or refused to purchase on the Closing Date. If
any one or more of the Initial Purchasers shall fail or refuse to purchase Securities and the
aggregate number of Securities with respect to which such default occurs exceeds 10% of the
aggregate number of Securities to be purchased on the Closing Date, and arrangements satisfactory
to the Initial Purchasers and the Company for the purchase of such Securities are not made within
48 hours after such default, this Agreement shall terminate without liability of any party to any
other party except that the provisions of Sections 4, 6, 8 and 9 hereof shall at all times be
effective and shall survive such termination. In any such case either the Initial Purchasers or
the Company shall have the right to postpone the Closing Date, as the case may be, but in no event
for longer than seven days in order that the required changes, if any, to the Final Offering
Memorandum or any other documents or arrangements may be effected.

     As used in this Agreement, the term “Initial Purchaser” shall be deemed to include any person
substituted for a defaulting Initial Purchaser under this Section 17. Any action taken under this
Section 17 shall not relieve any defaulting Initial Purchaser from liability in respect of any
default of such Initial Purchaser under this Agreement.

     SECTION 18. No Advisory or Fiduciary Responsibility. Each of the Company and the Guarantors
acknowledges and agrees that: (i) the purchase and sale of the Securities pursuant to this
Agreement, including the determination of the offering price of the Securities and any related
discounts and commissions, is an arm’s-length commercial transaction between the Company and the
Guarantors, on the one hand, and the several Initial Purchasers, on the other hand, and the Company
and the Guarantors are capable of evaluating and understanding and understand and accept the terms,
risks and conditions of the transactions contemplated by this Agreement; (ii) in connection with
each transaction contemplated hereby and the process leading to such transaction each Initial
Purchaser is and has been acting solely as a principal and is not the agent or fiduciary of the
Company, and the Guarantors or their respective affiliates, stockholders, creditors or employees or
any other party; (iii) no Initial Purchaser has assumed or will assume an advisory or fiduciary
responsibility in favor of the Company and the Guarantors with respect to any of the transactions
contemplated hereby or the process leading thereto (irrespective of whether such Initial Purchaser
has advised or is currently advising the Company and the Guarantors on other matters) or any other
obligation to the Company and the Guarantors except the obligations expressly set forth in this
Agreement; (iv) the several Initial Purchasers and their respective affiliates may be engaged in a
broad range of transactions that involve interests that differ from those of the Company and the
Guarantors, and the several Initial Purchasers have no obligation to disclose any of such interests
by virtue of any fiduciary or advisory relationship; and (v) the Initial Purchasers have not
provided any legal, accounting, regulatory or tax advice

31

 

with respect to the offering contemplated hereby, and the Company and the Guarantors have
consulted their own legal, accounting, regulatory and tax advisors to the extent they deemed
appropriate.

     This Agreement supersedes all prior agreements and understandings (whether written or oral)
between the Company, the Guarantors and the several Initial Purchasers, or any of them, with
respect to the subject matter hereof. The Company and the Guarantors hereby waive and release, to
the fullest extent permitted by law, any claims that the Company and the Guarantors may have
against the several Initial Purchasers with respect to any breach or alleged breach of fiduciary
duty.

     SECTION 19. General Provisions. This Agreement constitutes the entire agreement of the
parties to this Agreement and supersedes all prior written or oral and all contemporaneous oral
agreements, understandings and negotiations with respect to the subject matter hereof. This
Agreement may be executed in two or more counterparts, each one of which shall be an original, with
the same effect as if the signatures thereto and hereto were upon the same instrument. Delivery of
an executed counterpart of a signature page to this Agreement by telecopier, facsimile or other
electronic transmission (i.e., a “pdf” or “tif”) shall be effective as delivery of a manually
executed counterpart thereof. This Agreement may not be amended or modified unless in writing by
all of the parties hereto, and no condition herein (express or implied) may be waived unless waived
in writing by each party whom the condition is meant to benefit. The section headings herein are
for the convenience of the parties only and shall not affect the construction or interpretation of
this Agreement.

32

 

     If the foregoing is in accordance with your understanding of our agreement, kindly sign and
return to the Company the enclosed copies hereof, whereupon this instrument, along with all
counterparts hereof, shall become a binding agreement in accordance with its terms.

	 	 	 	 	 
	 	Very truly yours,

STEWART ENTERPRISES, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

GUARANTORS:

FOREST HILLS CEMETERY, INC.

GRIFFIN-LEGGETT INSURANCE AGENCY, INC.

GROSS FUNERAL HOME, INC.

S. E. FUNERAL HOMES OF ARKANSAS, INC.

ALL SOULS MORTUARY, INC.

BARSTOW FUNERAL HOMES, INC.

BUCHHEIM FAMILY, INC.

CALVARY MORTUARY OF LOS ANGELES, CALIFORNIA, INC.

CATHOLIC MORTUARY SERVICES, INC.

DeYOUNG MEMORIAL CHAPEL, INC.

HOLY CROSS MORTUARY OF CULVER CITY, CALIFORNIA, INC.

LOMBARD & CO.

N.D. DAVIS & ASSOCIATES, INC.

QUEEN OF HEAVEN MORTUARY, INC.

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

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

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

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

SAN FERNANDO MISSION MORTUARY, INC.

SANTA CLARA MORTUARY, INC.

SDCA HOLDINGS, INC.

SIMPLICITY PLAN OF CALIFORNIA, INC.

STEWART PRE-NEED SERVICES, INC.

STRICKLIN/SNIVELY MORTUARY

SENTINEL CREMATION SOCIETIES, INC.

CREMATION SOCIETY NORTHWEST, INC.

E.R. BUTTERWORTH & SONS

33

 

SAN DIEGO CEMETERY ASSOCIATION

CHEATHAM HILL MEMORIAL PARK, INC.

THE SIMPLICITY PLAN, INC.

KILGORE-GREEN FUNERAL HOME, INC.

S.E. CEMETERIES OF ALABAMA, INC.

S.E. COMBINED SERVICES OF ALABAMA, INC.

S.E. FUNERAL HOMES OF ALABAMA, INC.

ROSE HAVEN FUNERAL HOME AND CEMETERY, INC.

S.E. FUNERAL HOMES OF ILLINOIS, INC.

KNUTSON FUNERAL HOMES, INC.

PAULEY FUNERAL HOME, INC.

D.W. NEWCOMER’S SONS, INC.

DWN PROPERTIES, INC.

THE LINCOLN MEMORIAL PARK CEMETERY ASSOCIATION

S.E. FUNERAL HOMES OF TENNESSEE, INC.

PASADENA FUNERAL HOME, INC.

S.E. FUNERAL HOMES OF TEXAS, INC.

S.E. CEMETERIES OF TEXAS, INC.

S.E. CEMETERIES OF WISCONSIN, INC.

FUNERAL SECURITY PLANS, INC.

HAISTEN FUNERAL HOME OF HENRY COUNTY, INC.

BOUNDS FUNERAL HOME, INC.

CEDAR HILL CEMETERY COMPANY, INC.

CREST LAWN MEMORIAL GARDENS, INC.

FORT LINCOLN CEMETERY, INC.

FORT LINCOLN FUNERAL HOME, INC.

HILLCREST MEMORIAL CEMETERY, INC.

HINES-RINALDI FUNERAL HOME, INC.

JOHN M. TAYLOR FUNERAL HOME, INC.

LOUDON PARK CEMETERY COMPANY

LOUDON PARK FUNERAL HOME, INC.

NATIONAL HARMONY MEMORIAL PARK, INC.

PARKLAWN, INC.

SIMPLE TRIBUTE OF MARYLAND, INC.

THE PARKWOOD CEMETERY COMPANY

WILLIAM W. CHAMBERS, INC.

CATAWBA MEMORIAL PARK, INC.

GARRETT — HILLCREST, INC.

McLAURIN’S FUNERAL HOME, INC.

S.E. CEMETERIES OF NORTH CAROLINA, INC.

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

GEORGE WASHINGTON MEMORIAL PARK, INC.

KIRK & NICE SUBURBAN CHAPEL, INC.

KIRK & NICE, INC.

S.E. ACQUISITION OF PENNSYLVANIA, INC.

SUNSET MEMORIAL PARK COMPANY

34

 

DUNBAR FUNERAL HOME

S.E. CEMETERIES OF SOUTH CAROLINA, INC.

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

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

MONTE VISTA BURIAL PARK, INC.

S.E. COMBINED SERVICES OF TENNESSEE, INC.

CLINCH VALLEY MEMORIAL CEMETERY, INC.

EVERLY PFP, INC.

BARTLETT-BURDETTE-COX FUNERAL HOME, INC.

CASDORPH & CURRY FUNERAL HOME, INC.

EASTERN CEMETERY ASSOCIATES, INC.

KLINGEL-CARPENTER MORTUARY, INC.

LOI CHARLESTON, INC.

NATIONAL EXCHANGE TRUST, LTD

NATIONAL FUNERAL SERVICES, INCORPORATED

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

S.E. CEMETERIES OF WEST VIRGINIA, INC.

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

WILSON FUNERAL HOME, INC.

DRUID RIDGE CEMETERY COMPANY

PARKWOOD MANAGEMENT COMPANY

CHAPEL OF THE ROSES, INC.

CHAPEL OF THE VALLEY FUNERAL HOME, INC.

J.P. FINLEY AND SON MORTUARY, INC.

SUNSET HILLS MEMORIAL PARK

ABBY PLAN OF TEXAS, INC.

EMERALD HILLS FUNERAL CORPORATION

GUARDIAN CREMATION SOCIETY, INC.

SIMPLICITY PLAN OF TEXAS, INC.

S.E. COMBINED SERVICES OF TEXAS, INC.

S.E. FUNERAL HOME OF COPPELL, TEXAS, INC.

GRIFFIN-LEGGETT, INC.

DBM-HUNTINGTON, INC.

LASSILA FUNERAL CHAPELS, INC.

S.E. ACQUISITION OF CALIFORNIA, INC.

VICTOR V. DESROSIER, INC.

CEMETERY MANAGEMENT, INC.

EASTLAWN CORPORATION

HOLLY HILL MEMORIAL PARK, INC.

BALLYHOO INNOVATIONS, INC.

STEWART ENTERPRISES (EUROPE), INC.

S.E. MID-ATLANTIC, INC.

LAKEWOOD MEMORIAL PARK, INC.

MONTLAWN MEMORIAL PARK, INC.

S.E. ACQUISITION OF OREGON, INC.

THE NASHVILLE HISTORIC CEMETERY ASSOCIATION, INC.

35

 

LAKE LAWN METAIRIE FUNERAL HOME

S.E. FUNERAL HOMES OF FLORIDA, LLC

S.E. CEMETERIES OF FLORIDA, LLC

S.E. COMBINED SERVICES OF FLORIDA, LLC

EMPRESAS STEWART-FUNERARIAS, INC.

ENDURING MEMORIES, INC.

HAWTHORNE & WREN, INC.

NAILKNOT, LLC

S.E. CEMETERIES OF VIRGINIA, LLC

S.E. FUNERAL HOMES OF VIRGINIA, LLC

STEWART RESOURCE CENTER, LLC

ACME MAUSOLEUM, LLC

S.E. CEMETERIES OF LOUISIANA, LLC

S.E. FUNERAL HOMES OF LOUISIANA, LLC

STEWART SERVICES, LLC

SYMPATHYSHOP.COM, L.L.C.

S.E. SOUTH-CENTRAL, LLC

KANAWHA PLAZA PARTNERSHIP

	 	 	 	 	 
	 	 
	By:  	 	 
	 	Name:  	Lewis J. Derbes, Jr. 	 
	 	Title:  	Authorized Signatory 	 
	 

36

 

     The foregoing Purchase Agreement is hereby confirmed and accepted by the Initial Purchasers as
of the date first above written.

Merrill Lynch, Pierce, Fenner & Smith Incorporated

Acting on behalf of itself

and as the Representative of

the several Initial Purchasers

By: Merrill Lynch, Pierce, Fenner & Smith Incorporated

	 	 	 	 
	 	 
	By:  	
 	 	 
	 	Managing Director 	 
	 	 	 

37

 

	 	 	 	 	 

SCHEDULE A

LIST OF GUARANTORS

FOREST HILLS CEMETERY, INC.

GRIFFIN-LEGGETT INSURANCE AGENCY, INC.

GROSS FUNERAL HOME, INC.

S. E. FUNERAL HOMES OF ARKANSAS, INC.

ALL SOULS MORTUARY, INC.

BARSTOW FUNERAL HOMES, INC.

BUCHHEIM FAMILY, INC.

CALVARY MORTUARY OF LOS ANGELES, CALIFORNIA, INC.

CATHOLIC MORTUARY SERVICES, INC.

DeYOUNG MEMORIAL CHAPEL, INC.

HOLY CROSS MORTUARY OF CULVER CITY, CALIFORNIA, INC.

LOMBARD & CO.

N.D. DAVIS & ASSOCIATES, INC.

QUEEN OF HEAVEN MORTUARY, INC.

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

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

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

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

SAN FERNANDO MISSION MORTUARY, INC.

SANTA CLARA MORTUARY, INC.

SDCA HOLDINGS, INC.

SIMPLICITY PLAN OF CALIFORNIA, INC.

STEWART PRE-NEED SERVICES, INC.

STRICKLIN/SNIVELY MORTUARY

SENTINEL CREMATION SOCIETIES, INC.

CREMATION SOCIETY NORTHWEST, INC.

E.R. BUTTERWORTH & SONS

SAN DIEGO CEMETERY ASSOCIATION

CHEATHAM HILL MEMORIAL PARK, INC.

THE SIMPLICITY PLAN, INC.

KILGORE-GREEN FUNERAL HOME, INC.

S.E. CEMETERIES OF ALABAMA, INC.

S.E. COMBINED SERVICES OF ALABAMA, INC.

S.E. FUNERAL HOMES OF ALABAMA, INC.

ROSE HAVEN FUNERAL HOME AND CEMETERY, INC.

S.E. FUNERAL HOMES OF ILLINOIS, INC.

KNUTSON FUNERAL HOMES, INC.

PAULEY FUNERAL HOME, INC.

D.W. NEWCOMER’S SONS, INC.

DWN PROPERTIES, INC.

Schedule A-1

 

THE LINCOLN MEMORIAL PARK CEMETERY ASSOCIATION

S.E. FUNERAL HOMES OF TENNESSEE, INC.

PASADENA FUNERAL HOME, INC.

S.E. FUNERAL HOMES OF TEXAS, INC.

S.E. CEMETERIES OF TEXAS, INC.

S.E. CEMETERIES OF WISCONSIN, INC.

FUNERAL SECURITY PLANS, INC.

HAISTEN FUNERAL HOME OF HENRY COUNTY, INC.

BOUNDS FUNERAL HOME, INC.

CEDAR HILL CEMETERY COMPANY, INC.

CREST LAWN MEMORIAL GARDENS, INC.

FORT LINCOLN CEMETERY, INC.

FORT LINCOLN FUNERAL HOME, INC.

HILLCREST MEMORIAL CEMETERY, INC.

HINES-RINALDI FUNERAL HOME, INC.

JOHN M. TAYLOR FUNERAL HOME, INC.

LOUDON PARK CEMETERY COMPANY

LOUDON PARK FUNERAL HOME, INC.

NATIONAL HARMONY MEMORIAL PARK, INC.

PARKLAWN, INC.

SIMPLE TRIBUTE OF MARYLAND, INC.

THE PARKWOOD CEMETERY COMPANY

WILLIAM W. CHAMBERS, INC.

CATAWBA MEMORIAL PARK, INC.

GARRETT — HILLCREST, INC.

McLAURIN’S FUNERAL HOME, INC.

S.E. CEMETERIES OF NORTH CAROLINA, INC.

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

GEORGE WASHINGTON MEMORIAL PARK, INC.

KIRK & NICE SUBURBAN CHAPEL, INC.

KIRK & NICE, INC.

S.E. ACQUISITION OF PENNSYLVANIA, INC.

SUNSET MEMORIAL PARK COMPANY

DUNBAR FUNERAL HOME

S.E. CEMETERIES OF SOUTH CAROLINA, INC.

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

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

MONTE VISTA BURIAL PARK, INC.

S.E. COMBINED SERVICES OF TENNESSEE, INC.

CLINCH VALLEY MEMORIAL CEMETERY, INC.

EVERLY PFP, INC.

BARTLETT-BURDETTE-COX FUNERAL HOME, INC.

CASDORPH & CURRY FUNERAL HOME, INC.

EASTERN CEMETERY ASSOCIATES, INC.

KLINGEL-CARPENTER MORTUARY, INC.

LOI CHARLESTON, INC.

A-2

 

NATIONAL EXCHANGE TRUST, LTD

NATIONAL FUNERAL SERVICES, INCORPORATED

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

S.E. CEMETERIES OF WEST VIRGINIA, INC.

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

WILSON FUNERAL HOME, INC.

DRUID RIDGE CEMETERY COMPANY

PARKWOOD MANAGEMENT COMPANY

CHAPEL OF THE ROSES, INC.

CHAPEL OF THE VALLEY FUNERAL HOME, INC.

J.P. FINLEY AND SON MORTUARY, INC.

SUNSET HILLS MEMORIAL PARK

ABBY PLAN OF TEXAS, INC.

EMERALD HILLS FUNERAL CORPORATION

GUARDIAN CREMATION SOCIETY, INC.

SIMPLICITY PLAN OF TEXAS, INC.

S.E. COMBINED SERVICES OF TEXAS, INC.

S.E. FUNERAL HOME OF COPPELL, TEXAS, INC.

GRIFFIN-LEGGETT, INC.

DBM-HUNTINGTON, INC.

LASSILA FUNERAL CHAPELS, INC.

S.E. ACQUISITION OF CALIFORNIA, INC.

VICTOR V. DESROSIER, INC.

CEMETERY MANAGEMENT, INC.

EASTLAWN CORPORATION

HOLLY HILL MEMORIAL PARK, INC.

BALLYHOO INNOVATIONS, INC.

STEWART ENTERPRISES (EUROPE), INC.

S.E. MID-ATLANTIC, INC.

LAKEWOOD MEMORIAL PARK, INC.

MONTLAWN MEMORIAL PARK, INC.

S.E. ACQUISITION OF OREGON, INC.

THE NASHVILLE HISTORIC CEMETERY ASSOCIATION, INC.

LAKE LAWN METAIRIE FUNERAL HOME

S.E. FUNERAL HOMES OF FLORIDA, LLC

S.E. CEMETERIES OF FLORIDA, LLC

S.E. COMBINED SERVICES OF FLORIDA, LLC

EMPRESAS STEWART-FUNERARIAS, INC.

ENDURING MEMORIES, INC.

HAWTHORNE & WREN, INC.

NAILKNOT, LLC

S.E. CEMETERIES OF VIRGINIA, LLC

S.E. FUNERAL HOMES OF VIRGINIA, LLC

STEWART RESOURCE CENTER, LLC

ACME MAUSOLEUM, LLC

S.E. CEMETERIES OF LOUISIANA, LLC

A-3

 

S.E. FUNERAL HOMES OF LOUISIANA, LLC

STEWART SERVICES, LLC

SYMPATHYSHOP.COM, L.L.C.

S.E. SOUTH-CENTRAL, LLC

KANAWHA PLAZA PARTNERSHIP

A-4

 

SCHEDULE B

	 	 	 	 	 
	 	 	Aggregate Principal	 
	 	 	Amount of	 
	 	 	Securities to be	 
	Initial Purchasers	 	Purchased	 
	Merrill Lynch, Pierce, Fenner & Smith Incorporated
	 	$	110,000,000	 
	J.P. Morgan Securities LLC
	 	 	70,000,000	 
	SunTrust Robinson Humphrey, Inc.
	 	 	10,000,000	 
	BBVA Securities, Inc.
	 	 	5,000,000	 
	Morgan Keegan & Company, Inc.
	 	 	5,000,000	 
	 
	 	 	 	 
	Total
	 	$	200,000,000	 

Schedule B-1

 

SCHEDULE C

			
	PRICING SUPPLEMENT
	 	STRICTLY CONFIDENTIAL

STEWART ENTERPRISES, INC.

6.50% Senior Notes due 2019

April 4, 2011

This Pricing Supplement is qualified in its entirety by reference to the Preliminary Offering
Memorandum dated April 4, 2011 (the “Preliminary Offering Memorandum”). The information in this
Pricing Supplement supplements the Preliminary Offering Memorandum and supersedes the information
in the Preliminary Offering Memorandum to the extent this information is inconsistent with the
information in the Preliminary Offering Memorandum. This Pricing Supplement is otherwise qualified
in its entirety by reference to the Preliminary Offering Memorandum and should be read together
with the Preliminary Offering Memorandum. Capitalized terms used in this Pricing Supplement but
not defined have the meanings given to them in the Preliminary Offering Memorandum.

The Notes have not been registered under the Securities Act of 1933, as amended (the “Securities
Act”), and may not be offered or sold, except pursuant to an exemption from, or in a transaction
not subject to, the registration requirements of the Securities Act. Accordingly, the Notes are
being offered and sold (1) only to “qualified institutional buyers” (as defined in Rule 144A under
the Securities Act) and (2) outside the United States to non-U.S. persons in compliance with
Regulation S under the Securities Act.

	 	 	 

	Issuer:
	 	Stewart Enterprises, Inc. (the
“Issuer”)
	 
	 	 
	Aggregate Principal Amount:
	 	US$200,000,000
	 
	 	 
	Gross Proceeds:
	 	US$200,000,000, before initial
purchasers’ discounts and
	 
	 	estimated offering expenses.
	 
	 	 
	Title of Securities:
	 	6.500% Senior Notes due 2019 (the “Notes”)
	 
	 	 
	Final Maturity Date:
	 	April 15, 2019
	 
	 	 
	Issue Price:
	 	100% plus accrued interest, if any, from April 18, 2011
	 
	 	 
	Coupon:
	 	6.500%
	 
	 	 
	Yield to Maturity:
	 	6.500%
	 
	 	 
	Interest Payment Dates:
	 	April 15 and October 15, beginning on October 15, 2011
	 
	 	 
	Record Dates:
	 	April 1 and October 1
	 
	 	 
	Optional Redemption:
	 	On or after April 15, 2014, the Issuer may redeem all or a
	 
	 	part of the Notes upon not less than 30 nor more than 60
	 
	 	days’ notice, at the redemption prices (expressed as
	 
	 	percentages of principal amount) set forth below, plus
	 
	 	accrued and unpaid interest and Additional Interest, if any,
	 
	 	thereon, to the applicable redemption date, subject to the
	 
	 	rights of the Holders of Notes on the relevant record date
	 
	 	to receive interest on the relevant interest payment date,
	 
	 	if redeemed during the twelve-month period beginning on
	 
	 	April 15 of the years indicated below:

Schedule C-1

 

	 	 	 	 	 
	Year	 	Percentage	 
	2014	 	 	104.875	%
	2015	 	 	103.250	%
	2016	 	 	101.625	%
	2017 and thereafter	 	 	100.000	%

	 	 	 

	 

	 	Prior to
April 15, 2014, the Issuer may redeem all or a part of the
Notes, upon not less than 30 nor more than 60 days’ notice,
at a redemption price equal to the sum of (i) 100% of the
principal amount thereof, plus (ii) the Applicable Premium
as of the date of redemption, plus (iii) accrued and unpaid
interest and Additional Interest, if any, thereon, to the
applicable redemption date, subject to the rights of the
Holders of Notes on the relevant record date to receive
interest due on the relevant interest payment date.
	 
	 	 
	Joint Book-Running Managers:

	 	Merrill Lynch, Pierce, Fenner & Smith Incorporated
	 

	 	J.P. Morgan Securities LLC
	 
	 	 
	Lead Manager:

	 	SunTrust Robinson Humphrey, Inc.
	 
	 	 
	Co-Managers:

	 	BBVA Securities, Inc.
	 

	 	Morgan Keegan & Company, Inc.
	 
	 	 
	Trade Date:

	 	April 4, 2011
	 
	 	 
	Settlement Date:

	 	April 18, 2011 (T+10)
	 
	 	 
	Denominations:

	 	US$2,000 and integral multiples of US$1,000 in excess thereof
	 
	 	 
	Distribution:

	 	144A and Regulation S with registration rights as set forth
in the Preliminary Offering Memorandum
	 
	 	 
	144A CUSIP/ISIN Numbers:

	 	860370 AL9/ US860370AL95
	 
	 	 
	REG S CUSIP/ISIN Numbers:

	 	U85949 AC6 / USU85949AC61

Other information (including financial information) presented in the Preliminary Offering
Memorandum is deemed to have changed to the extent effected by the changes described herein.

This material is confidential and is for your information only and is not intended to be used by
anyone other than you. This information does not purport to be a complete description of these
Notes or the offering. Please refer to the Preliminary Offering Memorandum for a complete
description.

This communication does not constitute an offer to sell or the solicitation of an offer to buy any
securities in any jurisdiction to any person to whom it is unlawful to make such offer or
solicitation in such jurisdiction.

Any disclaimers or other notices that may appear below are not applicable to this communication and
should be disregarded. Such disclaimers or other notices were automatically generated as a result
of this communication being sent via Bloomberg email or another communication system.

C-2

 

SCHEDULE D

SUBSIDIARIES OF STEWART ENTERPRISES, INC.

	 	 	 

	KILGORE-GREEN FUNERAL HOME, INC.

	 	ALABAMA
	S.E. CEMETERIES OF ALABAMA, INC.

	 	ALABAMA
	S.E. COMBINED SERVICES OF ALABAMA, INC.

	 	ALABAMA
	S.E. FUNERAL HOMES OF ALABAMA, INC.

	 	ALABAMA
	FOREST HILLS CEMETERY, INC.

	 	ARKANSAS
	GRIFFIN-LEGGETT INSURANCE AGENCY, INC.

	 	ARKANSAS
	GRIFFIN-LEGGETT, INC.

	 	ARKANSAS
	GROSS FUNERAL HOME, INC.

	 	ARKANSAS
	REST HILLS MEMORIAL PARK, INC.

	 	ARKANSAS
	S.E. FUNERAL HOMES OF ARKANSAS, INC.

	 	ARKANSAS
	ALL SOULS MORTUARY, INC.

	 	CALIFORNIA
	BARSTOW FUNERAL HOMES, INC.

	 	CALIFORNIA
	BUCHHEIM FAMILY, INC.

	 	CALIFORNIA
	CALVARY MORTUARY OF LOS ANGELES, CALIFORNIA, INC.

	 	CALIFORNIA
	CATHOLIC MORTUARY SERVICES, INC.

	 	CALIFORNIA
	DBM-HUNTINGTON, INC.

	 	CALIFORNIA
	DeYOUNG MEMORIAL CHAPEL, INC.

	 	CALIFORNIA
	HOLY CROSS MORTUARY OF CULVER CITY, CALIFORNIA, INC.

	 	CALIFORNIA
	LASSILA FUNERAL CHAPELS, INC.

	 	CALIFORNIA
	LOMBARD & CO.

	 	CALIFORNIA
	N.D. DAVIS & ASSOCIATES, INC.

	 	CALIFORNIA
	QUEEN OF HEAVEN MORTUARY, INC.

	 	CALIFORNIA
	S.E. ACQUISITION OF CALIFORNIA, INC.

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

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

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

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

	 	CALIFORNIA
	SAN DIEGO CEMETERY ASSOCIATION

	 	CALIFORNIA
	SAN FERNANDO MISSION MORTUARY, INC.

	 	CALIFORNIA
	SANTA CLARA MORTUARY, INC.

	 	CALIFORNIA
	SDCA HOLDINGS, INC.

	 	CALIFORNIA
	SIMPLICITY PLAN OF CALIFORNIA, INC.

	 	CALIFORNIA

Schedule D-1

 

	 	 	 

	STEWART PRE-NEED SERVICES, INC.

	 	CALIFORNIA
	STRICKLIN/SNIVELY MORTUARY

	 	CALIFORNIA
	VICTOR V. DESROSIER, INC.

	 	CALIFORNIA
	SENTINEL CREMATION SOCIETIES, INC.

	 	DELAWARE
	CEMETERY MANAGEMENT, INC.

	 	FLORIDA
	S.E. CEMETERIES OF FLORIDA, LLC

	 	FLORIDA
	S.E. COMBINED SERVICES OF FLORIDA, LLC

	 	FLORIDA
	S.E. FUNERAL HOMES OF FLORIDA, LLC

	 	FLORIDA
	THE SIMPLICITY PLAN, INC.

	 	FLORIDA
	CHEATHAM HILL MEMORIAL PARK, INC.

	 	GEORGIA
	EASTLAWN CORPORATION

	 	GEORGIA
	HAISTEN FUNERAL HOME OF HENRY COUNTY, INC.

	 	GEORGIA
	HOLLY HILL MEMORIAL PARK, INC.

	 	GEORGIA
	ROSE HAVEN FUNERAL HOME & CEMETERY, INC.

	 	GEORGIA
	S.E. FUNERAL HOMES OF ILLINOIS, INC.

	 	ILLINOIS
	KNUTSON FUNERAL HOMES, INC.

	 	IOWA
	PAULEY FUNERAL HOME, INC.

	 	IOWA
	ACME MAUSOLEUM, LLC

	 	LOUISIANA
	BALLYHOO INNOVATIONS, INC.

	 	LOUISIANA
	EMPRESAS STEWART — FUNERARIAS, INC.

	 	LOUISIANA
	ENDURING MEMORIES, INC.

	 	LOUISIANA
	HAWTHORNE & WREN, INC.

	 	LOUISIANA
	HEAVEN’S PETS AT LAKELAWN METAIRIE, LLC (JOINT
VENTURE)

	 	LOUISIANA
	LAKE LAWN METAIRIE FUNERAL HOME (JOINT VENTURE)

	 	LOUISIANA
	LAKE LAWN PARK, LLC

	 	LOUISIANA
	S.E. CEMETERIES OF LOUISIANA, LLC

	 	LOUISIANA
	S.E. FUNERAL HOMES OF LOUISIANA, LLC

	 	LOUISIANA
	S.E. SOUTH-CENTRAL, LLC

	 	LOUISIANA
	STEWART ENTERPRISES (EUROPE) INC.

	 	LOUISIANA
	STEWART RESOURCE CENTER, LLC

	 	LOUISIANA
	STEWART SERVICES, LLC

	 	LOUISIANA
	SYMPATHYSHOP.COM, L.L.C.

	 	LOUISIANA
	BOUNDS FUNERAL HOME, INC.

	 	MARYLAND
	CEDAR HILL CEMETERY COMPANY, INC.

	 	MARYLAND
	CREST LAWN MEMORIAL GARDENS, INC.

	 	MARYLAND
	DRUID RIDGE CEMETERY COMPANY

	 	MARYLAND
	FORT LINCOLN CEMETERY, INC.

	 	MARYLAND
	FORT LINCOLN FUNERAL HOME, INC.

	 	MARYLAND
	HILLCREST MEMORIAL CEMETERY, INC.

	 	MARYLAND

D-2

 

	 	 	 

	HINES-RINALDI FUNERAL HOME, INC.

	 	MARYLAND
	JOHN M. TAYLOR FUNERAL HOME, INC.

	 	MARYLAND
	LOUDON PARK CEMETERY COMPANY

	 	MARYLAND
	LOUDON PARK FUNERAL HOME, INC.

	 	MARYLAND
	NAILKNOT, LLC

	 	MARYLAND
	NATIONAL HARMONY MEMORIAL PARK, INC.

	 	MARYLAND
	PARKLAWN, INC.

	 	MARYLAND
	PARKWOOD MANAGEMENT COMPANY

	 	MARYLAND
	S.E. MID-ATLANTIC, INC.

	 	MARYLAND
	SIMPLE TRIBUTE OF MARYLAND, INC.

	 	MARYLAND
	THE PARKWOOD CEMETERY COMPANY

	 	MARYLAND
	WILLIAM W. CHAMBERS, INC.

	 	MARYLAND
	LAKEWOOD MEMORIAL PARK, INC.

	 	MISSISSIPPI
	D.W. NEWCOMER’S SONS, INC.

	 	MISSOURI
	DWN PROPERTIES, INC.

	 	MISSOURI
	FUNERAL SECURITY PLANS, INC.

	 	MISSOURI
	THE LINCOLN MEMORIAL PARK CEMETERY ASSOCIATION

	 	NEBRASKA
	WEST LAWN CEMETERY

	 	NEBRASKA
	STEWART CEMENTERIOS PUERTO RICO HOLDING I B.V.

	 	NETHERLANDS
	STEWART CEMENTERIOS PUERTO RICO HOLDING II B.V.

	 	NETHERLANDS
	STEWART FUNERARIAS PUERTO RICO HOLDING I B.V.

	 	NETHERLANDS
	STEWART FUNERARIAS PUERTO RICO HOLDING II B.V.

	 	NETHERLANDS
	STEWART INTERNATIONAL (NETHERLANDS) B.V.

	 	NETHERLANDS
	STEWART SIMPLICITY PLAN OF PUERTO RICO HOLDING I B.V.

	 	NETHERLANDS
	STEWART SIMPLICITY PLAN OF PUERTO RICO HOLDING II B.V.

	 	NETHERLANDS
	STEWART WORLDWIDE N.V.

	 	NETHERLANDS ANTILLES
	CATAWBA MEMORIAL PARK, INC.

	 	NORTH CAROLINA
	FINE FINISHES, INC.

	 	NORTH CAROLINA
	GARRETT — HILLCREST, INC.

	 	NORTH CAROLINA
	MCLAURIN’S FUNERAL HOME, INC.

	 	NORTH CAROLINA
	MONTLAWN MEMORIAL PARK, INC.

	 	NORTH CAROLINA
	S.E. CEMETERIES OF NORTH CAROLINA, INC.

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

	 	NORTH CAROLINA
	TAYLOR M. SIMPSON CO.

	 	NORTH CAROLINA
	CHAPEL OF THE ROSES, INC.

	 	OREGON
	CHAPEL OF THE VALLEY FUNERAL HOME, INC.

	 	OREGON
	J.P. FINLEY AND SON MORTUARY, INC.

	 	OREGON
	S.E. ACQUISITION OF OREGON, INC.

	 	OREGON
	SUNSET HILLS MEMORIAL PARK

	 	OREGON
	GEORGE WASHINGTON MEMORIAL PARK, INC.

	 	PENNSYLVANIA

D-3

 

	 	 	 

	KIRK & NICE SUBURBAN CHAPEL, INC.

	 	PENNSYLVANIA
	KIRK & NICE, INC.

	 	PENNSYLVANIA
	S.E. ACQUISITION OF PENNSYLVANIA, INC.

	 	PENNSYLVANIA
	SUNSET MEMORIAL PARK COMPANY

	 	PENNSYLVANIA
	EMPRESAS STEWART — CEMENTERIOS

	 	PUERTO RICO
	EMPRESAS STEWART — FUNERARIAS

	 	PUERTO RICO
	THE SIMPLICITY PLAN OF PUERTO RICO

	 	PUERTO RICO
	DUNBAR FUNERAL HOME

	 	SOUTH CAROLINA
	S.E. CEMETERIES OF SOUTH CAROLINA, INC.

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

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

	 	SOUTH CAROLINA
	MONTE VISTA BURIAL PARK, INC.

	 	TENNESSEE
	S.E. COMBINED SERVICES OF TENNESSEE, INC.

	 	TENNESSEE
	S.E. FUNERAL HOMES OF TENNESSEE, INC.

	 	TENNESSEE
	THE NASHVILLE HISTORIC CEMETERY ASSOCIATION, INC.

	 	TENNESSEE
	ABBEY PLAN OF TEXAS, INC.

	 	TEXAS
	EMERALD HILLS FUNERAL CORPORATION

	 	TEXAS
	GUARDIAN CREMATION SOCIETY, INC.

	 	TEXAS
	INVESTORS TRUST, INC.

	 	TEXAS
	PASADENA FUNERAL HOME, INC.

	 	TEXAS
	S.E. CEMETERIES OF TEXAS, INC.

	 	TEXAS
	S.E. COMBINED SERVICES OF TEXAS, INC.

	 	TEXAS
	S.E. FUNERAL HOME OF COPPELL, TEXAS, INC.

	 	TEXAS
	S.E. FUNERAL HOMES OF TEXAS, INC.

	 	TEXAS
	SIMPLICITY PLAN OF TEXAS, INC.

	 	TEXAS
	CLINCH VALLEY MEMORIAL CEMETERY, INC.

	 	VIRGINIA
	EVERLY PFP, INC.

	 	VIRGINIA
	S.E. CEMETERIES OF VIRGINIA, LLC

	 	VIRGINIA
	S.E. FUNERAL HOMES OF VIRGINIA, LLC

	 	VIRGINIA
	CREMATION SOCIETY NORTHWEST, INC.

	 	WASHINGTON
	E.R. BUTTERWORTH & SONS

	 	WASHINGTON
	BARTLETT-BURDETTE-COX FUNERAL HOME, INC.

	 	WEST VIRGINIA
	CASDORPH & CURRY FUNERAL HOME, INC.

	 	WEST VIRGINIA
	EASTERN CEMETERY ASSOCIATES, INC.

	 	WEST VIRGINIA
	KANAWHA PLAZA PARTNERSHIP

	 	WEST VIRGINIA
	KLINGEL-CARPENTER MORTUARY, INC.

	 	WEST VIRGINIA
	LOI CHARLESTON, INC.

	 	WEST VIRGINIA

D-4

 

	 	 	 

	NATIONAL EXCHANGE TRUST, LTD.

	 	WEST VIRGINIA
	NATIONAL FUNERAL SERVICES, INCORPORATED

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

	 	WEST VIRGINIA
	S.E. CEMETERIES OF WEST VIRGINIA, INC.

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

	 	WEST VIRGINIA
	WILSON FUNERAL HOME, INC.

	 	WEST VIRGINIA
	S.E. CEMETERIES OF WISCONSIN, INC.

	 	WISCONSIN

Part II. NON-WHOLLY OWNED SUBSIDIARIES

1. Lake Lawn Park, LLC

2. Rest Hills Memorial Park, Inc.

3. Heaven’s Pets at Lakelawn Metairie, LLC

PART III. SUBSIDIARY STOCK SUBJECT TO LIENS, ETC.

     The capital stock of all domestic subsidiaries of the Company (except as indicated below) and
65% of Stewart Worldwide N.V. is subject to a security interest, mortgage, pledge, lien,
encumbrance or claim under that certain Second Amended and Restated Credit Agreement, among the
Company, Empresas Stewart-Cementerios, and Empresas Stewart-Funerarias, as Borrowers, Bank of
America, N.A., as Administrative Agent, Collateral Agent, Swing Line Lender and L/C Issuer, BBVA
Compass Bank, Industriel et Commercial, JPMorgan Chase Bank, N.A. and Regions Bank, as Co-Arrangers
and Co-Documentation Agents and the other lenders party thereto, dated as of June 2, 2009 (the
“Senior Secured Credit Facility”).

     The capital stock of Simple Tribute of Maryland, Inc. is subject to a security interest,
mortgage, pledge, lien, encumbrance or claim under the Senior Secured Credit Facility as well as a
previous stock pledge.

     The following subsidiaries outstanding capital stock is subject to a security interest,
mortgage, pledge, lien, encumbrance or claim under the Senior Secured Credit Facility but certain
minority ownership cannot be pledged: (i) Lake Lawn Park, LLC (1.6% minority ownership, 98.4%
pledged), (ii) Rest Hills Memorial Park, Inc. (0.5% minority ownership, 99.5% pledged) and (iii)
Heaven’s Pets at Lakelawn Metairie, LLC (40% minority ownership, 60% pledged).

D-5

 

SCHEDULE E

EXCLUDED DOMESTIC SUBSIDIARIES

REST HILLS MEMORIAL PARK, INC.

HEAVEN’S PETS AT LAKELAWN METAIRIE, LLC

LAKE LAWN PARK, LLC

WEST LAWN CEMETERY

FINE FINISHES, INC.

TAYLOR M. SIMPSON CO.

INVESTORS TRUST, INC.

Schedule E-1

 

SCHEDULE F

LOCAL COUNSEL FOR GUARANTORS

California (2)

(Sheppard Mullin Richter & Hampton LLP)

(Law Offices of Douglas O. Meyer)

Florida

(Gray Robinson, P.A.)

Louisiana

(Jones, Walker, Waechter, Poitevent, Carrere and Denegre L.L.P.)

(Chaffe McCall, Phillips, Toler & Sarpy, L.L.P.)

Maryland

(Ober, Kaler, Grimes & Shriver, a Profession Corporation)

Missouri

(Blackwell Sanders Peper Martin LLP)

North Carolina

(Robinson Bradshaw & Hinson, P.A.)

South Carolina

(Haynsworth Sinkler Boyd, P.A.)

Tennessee

(Woolf, McClane, Bright, Allen & Carpenter, PLLC)

Texas

(Crouch & Ramey, LLP)

Virginia

(Ober, Kaler, Grimes & Shriver, a Profession Corporation)

Schedule F-1

 

EXHIBIT A

FORM OF OPINION OF COUNSEL FOR THE COMPANY

     Opinion of counsel for the Company to be delivered pursuant to Section 5 of the Purchase
Agreement.

     (i) The Company has been duly incorporated and is validly existing as a corporation in good
standing under the laws of the State of Louisiana.

     (ii) The Company has corporate power and authority to own, lease and operate its properties
and to conduct its business as described in the Pricing Disclosure Package and the Final Offering
Memorandum and to enter into and perform its obligations under the Transaction Documents to which
it is a party.

     (iii) To such counsel’s best knowledge and following due inquiry of appropriate
representatives of the Company, the Company is duly qualified as a foreign corporation to transact
business and is in good standing in each other jurisdiction in which such qualification is
required, whether by reason of the ownership or leasing of property or the conduct of business,
except for such jurisdictions where the failure to so qualify or to be in good standing would not,
individually or in the aggregate, result in a Material Adverse Change.

     (iv) Each Material Jurisdiction Guarantor has been duly incorporated or organized and is
validly existing as a corporation, limited liability company or other entity, as the case may be,
in good standing under the laws of the jurisdiction of its incorporation or organization, has
corporate or organizational power and authority to own, lease and operate its properties and to
conduct its business as described in the Pricing Disclosure Package and the Final Offering
Memorandum and to enter into and perform its obligations under the Transaction Documents to which
it is a party. To the best knowledge of such counsel and following due inquiry of appropriate
representatives of the Company, each Material Jurisdiction Guarantor is duly qualified as a foreign
corporation or other entity to transact business and is in good standing in each jurisdiction in
which such qualification is required, whether by reason of the ownership or leasing of property or
the conduct of business, except for such jurisdictions where the failure to so qualify or to be in
good standing would not, individually or in the aggregate, result in a Material Adverse Change.

     (v) Each of Empresas Stewart-Cementerios and Empresas Stewart-Funerarias, foreign Subsidiaries
of the Company, is a civil partnership duly organized, and validly existing under the laws of
Puerto Rico, has full power and authority to own, lease and operate its properties and to conduct
its business as described in the Pricing Disclosure Package and the Final Offering Memorandum, and,
to our best knowledge following due inquiry of appropriate representatives of the Company, is duly
qualified as a foreign corporation to transact business and is in good standing in each
jurisdiction in which such qualification is required, whether by reason of the ownership or leasing
of property or the conduct of business, except for such jurisdictions where the failure to so
qualify or to be in good standing would not, individually or in the aggregate, result in a Material
Adverse Change.

Exhibit A-1

 

     (vi) All of the issued and outstanding capital stock, membership interests or partnership
interests, as the case may be, of each Material Jurisdiction Guarantor has been duly authorized and
validly issued, is fully paid and non-assessable and is owned by the Company, directly or through
subsidiaries, free and clear of any security interest, mortgage, pledge, lien, encumbrance or, to
the best knowledge of such counsel, any pending or threatened claim, except as disclosed by the
Company on Schedule D of the Purchase Agreement.

     (vii) All of the outstanding shares of Class A and Class B Common Stock of the Company have
been duly authorized and validly issued, are fully paid and nonassessable and, to the best of such
counsel’s knowledge, have been issued in compliance with the registration and qualification
requirements of federal and state securities laws.

     (viii) No stockholder of the Company or any other person has any preemptive right, right of
first refusal or other similar right to subscribe for or purchase securities of the Company arising
(i) by operation of the charter or by-laws of the Company or the Louisiana Business Corporation Law
or (ii) to the best knowledge of such counsel and following due inquiry of appropriate
representatives of the Company, otherwise.

     (ix) The Purchase Agreement has been duly authorized, executed and delivered by the Company
and each Material Jurisdiction Guarantor.

     (x) The Registration Rights Agreement has been duly authorized, executed and delivered by the
Company and each Material Jurisdiction Guarantor and (assuming the due authorization, execution and
delivery thereof by the Trustee and each Guarantor that is not a Material Jurisdiction Guarantor)
is a valid and binding agreement of, the Company and each Guarantor, enforceable against the
Company and each Guarantor in accordance with its terms, except as the enforcement thereof may be
limited by bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or other
similar laws relating to or affecting the rights and remedies of creditors or by general equitable
principles and except as rights to indemnification may be limited by applicable law. If required
by DTC, the DTC Agreement has been duly authorized, executed and delivered by, and is a valid and
binding agreement of, the Company, enforceable against the Company in accordance with its terms,
except as the enforcement thereof may be limited by bankruptcy, insolvency, reorganization,
moratorium, fraudulent conveyance or other similar laws relating to or affecting the rights and
remedies of creditors or by general equitable principles.

     (xi) The Indenture has been duly authorized, executed and delivered by the Company and each
Material Jurisdiction Guarantor and (assuming the due authorization, execution and delivery thereof
by the Trustee and each Guarantor that is not a Material Jurisdiction Guarantor) is a valid and
binding agreement of the Company and each Guarantor, enforceable against the Company and each
Guarantor in accordance with its terms, except as the enforcement thereof may be limited by
bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or other similar laws
relating to or affecting the rights and remedies of creditors or by general equitable principles.

     (xii) The Notes are in the form contemplated by the Indenture, have been duly authorized by
the Company for issuance and sale pursuant to the Purchase Agreement and the Inden-

Exhibit A-2

 

ture and, when executed by the Company and authenticated by the Trustee in the manner provided
in the Indenture (assuming the due authorization, execution and delivery of the Indenture by the
Trustee) and delivered against payment of the purchase price therefor, will constitute valid and
binding obligations of the Company, enforceable against the Company in accordance with their terms,
except as the enforcement thereof may be limited by bankruptcy, insolvency, reorganization,
moratorium, fraudulent conveyance or other similar laws relating to or affecting enforcement of the
rights and remedies of creditors or by general equitable principles and will be entitled to the
benefits of the Indenture.

     (xiii) The Exchange Notes have been duly and validly authorized for issuance by the Company,
and when issued and authenticated in accordance with the terms of the Indenture, the Registration
Rights Agreement and the Exchange Offer, will constitute valid and binding obligations of the
Company, enforceable against the Company in accordance with their terms, except as the enforcement
thereof may be limited by bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance
or similar laws relating to or affecting enforcement of the rights and remedies of creditors or by
general principles of equity and will be entitled to the benefits of the Indenture.

     (xiv) The Guarantees of the Notes are, and the Guarantees of the Exchange Notes when issued
will be, in the respective forms contemplated by the Indenture, and have been duly authorized by
the Material Jurisdiction Guarantors for issuance pursuant to the Purchase Agreement and the
Indenture. The Guarantees of the Notes have been duly executed by each of the Material
Jurisdiction Guarantors and, when the Notes have been authenticated in the manner provided for in
the Indenture and delivered against payment of the purchase price therefor (assuming the due
authorization, execution and delivery thereof by each Guarantor that is not a Material Jurisdiction
Guarantor), will constitute valid and binding agreements of the Guarantors, enforceable against the
Guarantors in accordance with their terms, except as the enforcement thereof may be limited by
bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or other similar laws
relating to or affecting the rights and remedies of creditors or by general equitable principles
and will be entitled to the benefits of the Indenture. The Guarantees of the Exchange Notes have
been duly authorized by the Material Jurisdiction Guarantors for issuance pursuant to this
Agreement and the Indenture and, upon issuance of the Exchange Notes (assuming due execution and
delivery and due authorization by each Guarantor that is not a Material Jurisdiction Guarantor),
will constitute valid and binding agreements of the Guarantors, enforceable against the Guarantors
in accordance with their terms, except as the enforcement thereof may be limited by bankruptcy,
insolvency, reorganization, moratorium, fraudulent conveyance or other similar laws relating to or
affecting the rights and remedies of creditors or by general equitable principles and will be
entitled to the benefits of the Indenture.

     (xv) The Transaction Documents conform in all material respects to the descriptions thereof
contained in the Pricing Disclosure Package and the Final Offering Memorandum.

     (xvi) The documents incorporated by reference in the Pricing Disclosure Package and the Final
Offering Memorandum (other than the financial statements and financial schedules therein, as to
which no opinion need be rendered), when they were filed with the Commission, complied as to form
in all material respects with the requirements of the Exchange Act.

Exhibit A-3

 

     (xvii) The statements in the Pricing Disclosure Package and the Final Offering Memorandum
under the captions “Risk Factors,” “Description of Other Indebtedness,” “Description of the Notes,”
“Material U.S. Federal Income Tax Considerations” and “Notice to Investors,” insofar as such
statements constitute matters of law, summaries of legal matters, the Company’s charter or by-law
provisions, documents or legal proceedings, or legal conclusions, have been reviewed by such
counsel and fairly present and summarize, in all material respects, the matters referred to
therein.

     (xviii) No consent, approval, authorization or other order of, or registration or filing with,
any court or other governmental or regulatory authority or agency, is required for the execution,
delivery and performance of the Transaction Documents by the Company, or the issuance and delivery
of the Securities or the Exchange Securities, or consummation of the transactions contemplated
hereby and thereby and by the Pricing Disclosure Package and the Final Offering Memorandum, except
such as have been obtained or made by the Company and are in full force and effect under the
Securities Act, applicable state securities or blue sky laws and except such as may be required by
federal and state securities laws with respect to the obligations of the Company under the
Registration Rights Agreement.

     (xix) No consent, approval, authorization or other order of, or registration or filing with,
any court or other governmental or regulatory authority or agency, is required for the Material
Jurisdiction Guarantor’s execution, delivery and performance of any of the Transaction Documents
under any laws, rules or regulations of the State generally applicable to (x) the operations of the
Material Jurisdiction Guarantor in the State relating to the operation of funeral homes, cemeteries
and crematoria and the provision of related goods and services (the “Operations”) or (y)
transactions of the type contemplated by the Guarantee entered into by the Material Jurisdiction
Guarantor, except such as have been obtained or made by the Material Jurisdiction Guarantor and are
in full force and effect.

     (xx) The execution and delivery of the Transaction Documents by the Company and the
performance by the Company of its obligations thereunder (other than performance under the
indemnification section of the Purchase Agreement, as to which no opinion need be rendered): (i)
have been duly authorized by all necessary corporate action on the part of the Company; (ii) will
not result in any violation of the provisions of the charter or by-laws of the Company; (iii)
assuming the application of proceeds as described in the “Use of Proceeds” in the Offering
Memorandum, will not constitute a breach of, or Default or a Debt Repayment Triggering Event under,
or result in the creation or imposition of any lien, charge or encumbrance upon any property or
assets of the Company or any of its subsidiaries pursuant to the Company’s senior secured revolving
credit facility, the Company’s 6.25% senior notes due 2013, the Company’s 3.125% senior convertible
notes due 2014 and the Company’s 3.375% senior convertible notes due 2016, or to the best knowledge
of such counsel, any other material Existing Instrument, except in each such case for such
violations or Defaults as would not, individually or in the aggregate, result in a Material Adverse
Change; or (iv) to our best knowledge, will not result in any violation of any law, administrative
regulation or administrative or court decree applicable to the Company.

     (xxi) The execution and delivery of each of the Transaction Documents and the performance by
each Material Jurisdiction Guarantor of its obligations thereunder (i) have been duly

Exhibit A-4

 

authorized by all necessary corporate, limited liability company or other entity action on the
part of each Material Jurisdiction Guarantor; (ii) will not result in any violation of the
provisions of the charter or by-laws or other applicable organizational document of each Material
Jurisdiction Guarantor; (iii) will not result in the creation or imposition of any lien, charge or
encumbrance upon any property or assets of each Material Jurisdiction Guarantor under, and, to the
best knowledge of such counsel, will not result in any violation of, in each case, any laws, rules
or regulations of the State generally applicable to (x) the Operations or (y) transactions of the
type contemplated by the Transaction Documents.

     (xxii) Neither the Company nor any Guarantor is, or after receipt of payment for the
Securities will be, an “investment company” within the meaning of Investment Company Act.

     (xxiii) To the best knowledge of counsel and following due inquiry of appropriate
representatives of the Company, the Company is not in violation of its charter or by-laws or any
law, administrative regulation or administrative or court decree applicable to the Company, nor is
the Company in Default in the performance or observance of any obligation, agreement, covenant or
condition contained in any material Existing Instrument, except in each such case for such
violations or Defaults as would not, individually or in the aggregate, result in a Material Adverse
Change.

     (xxiv) Assuming the accuracy of the representations, warranties and covenants of the Company
and the Initial Purchasers contained in the Transaction Documents, no registration of the Notes or
the Guarantees under the Securities Act, and no qualification of an indenture under the Trust
Indenture Act with respect thereto, is required in connection with the purchase of the Securities
by the Initial Purchasers or the initial resale of the Securities by the Initial Purchasers in the
manner contemplated by this Agreement and the Pricing Disclosure Package and the Final Offering
Memorandum other than any registration or qualification that may be required in connection with the
Exchange Offer contemplated by the Pricing Disclosure Package and the Final Offering Memorandum or
in connection with the Registration Rights Agreement. Such counsel need express no opinion,
however, as to when or under what circumstances any Initial Notes initially sold by the Initial
Purchasers may be reoffered or resold.

     In rendering such opinion, such counsel may rely as to matters involving the application of
laws of any jurisdiction other than the laws of the State of Louisiana or the federal law of the
United States, to the extent they deem proper and specified in such opinion, upon the opinion
(which shall be dated the Closing Date shall be satisfactory in form and substance to the Initial
Purchasers, shall expressly state that the Initial Purchasers may rely on such opinion as if it
were addressed to them and shall be furnished to the Initial Purchasers) of other counsel of good
standing whom they believe to be reliable and who are satisfactory to counsel for the Initial
Purchasers; provided, however, that such counsel shall further state that they believe that they
and the Initial Purchasers are justified in relying upon such opinion of other counsel, and as to
matters of fact, to the extent they deem proper, on certificates of responsible officers of the
Company and public officials. With respect to opinions relating to Material Jurisdiction
Guarantors, such counsel shall be entitled to rely on the opinion of the firms set forth in
Schedule F to the Purchase Agreement, which may be the opinion of such counsel itself if so
indicated in Schedule F to the Purchase Agreement.

Exhibit A-5

 

     In addition, such counsel shall state that they have participated in conferences with officers
and other representatives of the Company, representatives of the independent public or certified
public accountants for the Company and with representatives of the Initial Purchasers at which the
contents of the Pricing Disclosure Package and the Final Offering Memorandum and related matters
were discussed and, although such counsel is not passing upon and does not assume any
responsibility for the accuracy, completeness or fairness of the statements contained in the
Pricing Disclosure Package or the Final Offering Memorandum (other than as specified above), on the
basis of the foregoing, nothing has come to their attention which would lead them to believe that
the Pricing Disclosure Package, as of the Time of Sale, or that the Final Offering Memorandum, as
of its date or at the Closing Date, contained or contains an untrue statement of a material fact or
omitted or omits to state a material fact necessary in order to make the statements therein, in the
light of the circumstances under which they were made, not misleading (it being understood that
such counsel need express no belief as to the financial statements or other financial data derived
therefrom, included in the Pricing Disclosure Package or the Final Offering Memorandum or any
amendments or supplements thereto).

     Such counsel may also state that whenever such counsel’s opinion is given with respect to the
existence or absence of facts (or legal conclusions which necessarily are based upon the existence
or absence of facts) and is indicated to be based on such counsel’s knowledge, it is intended to
signify that, during the course of such counsel’s representation of the Company in connection with
the offering of the Notes, no information has come to the conscious awareness of any attorney in
such counsel’s firm who has had active involvement with such representations, after any such
attorney’s inquiry to other members of firm as the attorney deems appropriate, that would give any
such person actual knowledge of the existence or absence of such facts, and that except to the
extent expressly set forth, such counsel has not undertaken any independent investigation to
determine or verify the existence or absence of facts, and no inference as to such counsel’s
knowledge or the existence or absence of such facts should be drawn from its representation of the
Company. Such counsel may also include customary assumptions, qualifications and exceptions but
may not include definitions of knowledge limited solely to the deal team working on the
transaction.

Exhibit A-6

 

EXHIBIT B

FORM OF OPINION OF LOCAL COUNSEL FOR THE MATERIAL JURISDICTION GUARANTORS

     Opinion of counsel for the Material Jurisdiction Guarantors to be delivered pursuant to
Section 5 of the Purchase Agreement.

     (i) The Guarantor is a [corporation] [limited liability company] [limited partnership] and is
validly existing as a [corporation] [limited liability company] [limited partnership] in good
standing under the laws of the state of [___] (the “State”).

     (ii) The Guarantor has full [corporate] [limited liability company] [limited partnership]
power and authority to own, lease and operate its properties and to conduct its business as
described in the Pricing Disclosure Package and the Final Offering Memorandum and to enter into and
perform its obligations under the Indenture, the Purchase Agreement, the Registration Rights
Agreement and the documents evidencing the Guarantee entered into by the Guarantor (collectively,
the “Guarantor Transaction Documents”).

     (iii) Each of the Guarantor Transaction Documents has been duly authorized by the Guarantor.

     (iv) The Guarantees entered into by the Guarantor have been duly authorized for issuance and
sale pursuant to the Purchase Agreement and the Indenture.

     (v) No consent, approval, authorization or other order of, or registration or filing with, any
court or other governmental or regulatory authority or agency, is required for the Guarantor’s
execution, delivery and performance of any of the Guarantor Transaction Documents under any laws,
rules or regulations of the State generally applicable to (x) the operations of the Guarantor in
the State relating to the operation of funeral homes, cemeteries and crematoria and the provision
of related goods and services (the “Operations”) or (y) transactions of the type
contemplated by the Guarantee entered into by the Guarantor, except such as have been obtained or
made by the Guarantor and are in full force and effect.

     (vi) The execution and delivery of each of the Guarantor Transaction Documents and the
performance by the Guarantor of its obligations thereunder (i) have been duly authorized by all
necessary [corporate] [limited liability company] [limited partnership] action on the part of the
Guarantor; (ii) will not result in any violation of the provisions of the articles or certificate
of incorporaton, by-laws or operating agreement (as applicable) of the Guarantor; (iii) will not
result in the creation or imposition of any lien, charge or encumbrance upon any property or assets
of the Guarantor under, and, to the best knowledge of such counsel, will not result in any
violation of, in each case, any laws, rules or regulations of the State generally applicable to (x)
the Operations or (y) transactions of the type contemplated by the Guarantor Transaction Documents.

Exhibit B-1

 

     Counsel may state that its opinion does not address federal or state securities laws and may
include customary assumptions, qualifications and exceptions.

Exhibit B-2

 

     ANNEX I

     Resale Pursuant to Regulation S or Rule 144A. Each Initial Purchaser understands that:

     Such Initial Purchaser agrees that it has not offered or sold and will not offer or sell the
Securities in the United States or to, or for the benefit or account of, a U.S. Person (other than
a distributor), in each case, as defined in Rule 902 of Regulation S (i) as part of its
distribution at any time and (ii) otherwise until 40 days after the later of the commencement of
the offering of the Securities pursuant hereto and the Closing Date, other than in accordance with
Regulation S or another exemption from the registration requirements of the Securities Act. Such
Initial Purchaser agrees that, during such 40-day restricted period, it will not cause any
advertisement with respect to the Securities (including any “tombstone” advertisement) to be
published in any newspaper or periodical or posted in any public place and will not issue any
circular relating to the Securities, except such advertisements as are permitted by and include the
statements required by Regulation S.

     Such Initial Purchaser agrees that, at or prior to confirmation of a sale of Securities by it
to any distributor, dealer or person receiving a selling concession, fee or other remuneration
during the 40-day restricted period referred to in Rule 903 of Regulation S, it will send to such
distributor, dealer or person receiving a selling concession, fee or other remuneration a
confirmation or notice to substantially the following effect:

“The Securities covered hereby have not been registered under the U.S.
Securities Act of 1933, as amended (the “Securities Act”), and may not be
offered and sold within the United States or to, or for the account or
benefit of, U.S. persons (i) as part of your distribution at any time or
(ii) otherwise until 40 days after the later of the date the Securities were
first offered to persons other than distributors in reliance upon Regulation
S and the Closing Date, except in either case in accordance with Regulation
S under the Securities Act (or in accordance with Rule 144A under the
Securities Act or to accredited investors in transactions that are exempt
from the registration requirements of the Securities Act), and in connection
with any subsequent sale by you of the Securities covered hereby in reliance
on Regulation S under the Securities Act during the period referred to above
to any distributor, dealer or person receiving a selling concession, fee or
other remuneration, you must deliver a notice to substantially the foregoing
effect. Terms used above have the meanings assigned to them in Regulation S
under the Securities Act.”

Annex I-1

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