Document:

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                                                                   EXHIBIT 10.35

                              EMPLOYMENT AGREEMENT

         This Employment Agreement ("Agreement") between Stewart Enterprises,
Inc., a Louisiana corporation (the "Company"), and Randall L. Stricklin (the
"Employee") is dated as of November 1, 2001 (the "Agreement Date").

                              W I T N E S S E T H:

         WHEREAS, Employee currently is employed by the Company;

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

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

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

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

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

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

                                    ARTICLE I
                          EMPLOYMENT CAPACITY AND TERM

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

         2. EMPLOYMENT TERM. The term of this Agreement (the "Employment Term")
shall commence on the Agreement Date and shall continue through October 31,
2004, subject to any earlier termination of Employee's status as an employee
pursuant to this Agreement.

         3. DEVOTION TO RESPONSIBILITIES.

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

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                                   ARTICLE II
                            COMPENSATION AND BENEFITS

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

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

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

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

         2. BENEFITS. The Employee shall be eligible to participate in all
benefit programs provided to other employees of the Company, including without
limitation a fully-paid insurance benefit package similar to that provided other
employees of the Company. In addition, the Company shall provide the Employee
with any fringe benefits and perquisites that are set forth in Appendix A to
this Agreement, as so supplemented, amended, restated or otherwise modified from
time to time.

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

                                   ARTICLE III
                            TERMINATION OF EMPLOYMENT

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

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

                  (a) The Employee's status as an employee shall terminate if
the Employee has a disability that would entitle him to receive benefits under
the Company's long-term disability

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insurance policy in effect at the time either because he is Totally Disabled or
Partially Disabled, as such terms are defined in such policy. Any such
termination shall become effective on the first day on which the Employee is
eligible to receive payments under such policy (or on the first day that he
would be so eligible, if he had applied timely for such payments).

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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                                   ARTICLE IV
                          OBLIGATIONS UPON TERMINATION

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

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

         3. TERMINATION BY THE COMPANY FOR REASONS OTHER THAN DEATH, DISABILITY
OR CAUSE; TERMINATION BY THE EMPLOYEE FOR GOOD REASON. If the Company terminates
the Employee's status as an employee for reasons other than death, Disability or
Cause, or the Employee terminates his employment for Good Reason, then:

                  (a) the Company shall pay to the Employee an amount equal to
two times the amount of Base Salary in effect at the Date of Termination,
payable in equal installments over a two-year period at such intervals as other
salaried employees of the Company are paid; and

                  (b) with respect to all performance-based options held by the
Employee:

                           (i) if the performance goals have been met as of the
         Date of Termination, then such options shall become exercisable as of
         the Date of Termination (if not already exercisable) and shall expire
         on the date that is the later of:

                                    (A) 30 days after the Date of Termination,
                  or

                                    (B) 30 days after the first date on which
                  the sale of the securities underlying the options will not (1)
                  be matched with purchases of the Company's common stock prior
                  to such Date of Termination such as to cause the Employee to
                  incur a liability to the Company under Section 16 of the
                  Exchange Act and (2) destroy the Section 16 exemption for the
                  grant of the options;

                           (ii) if the performance goals have not been met as of
         the Date of Termination, then:

                                    (A) if the performance goals are not met by
                  the close of business on the day that is 180 days after the
                  Date of Termination, the options shall expire on such day; and

                                    (B) if the performance goals are met by the
                  close of business on the day that is 180 days after the Date
                  of Termination, the options shall

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                           become exercisable as of the date such performance
                           goals are met (the "Vesting Date") and shall expire
                           on the date that is the later of:

                                            (1) 30 days after the Vesting Date,
                            or

                                            (2) 30 days after the first date on
                            which the sale of the securities underlying the
                            options will not (i) be matched with purchases of
                            the Company's common stock prior to such Date of
                            Termination such as to cause the Employee to incur a
                            liability to the Company under Section 16 of the
                            Exchange Act and (ii) destroy the Section 16
                            exemption for the grant of the options.

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

         5. VOLUNTARY TERMINATION BY EMPLOYEE FOR REASONS OTHER THAN GOOD
REASON. If the Employee voluntarily terminates his status as an employee for
reasons other than Good Reason, then the Company shall pay to the Employee an
amount equal to a single year's Base Salary in effect at the Date of
Termination, payable in equal installments over a two-year period at such
intervals as other salaried employees of the Company are paid.

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

                                    ARTICLE V
              NONDISCLOSURE, NONCOMPETITION AND PROPRIETARY RIGHTS

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

                  (a) "Confidential Information" means any information,
knowledge or data of any nature and in any form (including information that is
electronically transmitted or stored on any form of magnetic or electronic
storage media) relating to the past, current or prospective business or
operations of the Company and its subsidiaries, that at the time or times
concerned is not generally known to persons engaged in businesses similar to
those conducted or contemplated by the Company and its subsidiaries (other than
information known by such persons through a violation of an obligation of
confidentiality to the Company), whether produced by the Company and its
subsidiaries or any of their consultants, agents or independent contractors or
by Employee, and whether or not marked confidential, including without
limitation information relating to the Company's or its subsidiaries' products
and services, business plans, business acquisitions, joint ventures, processes,
product or service research and development ideas, methods or techniques,
training methods and

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materials, and other operational methods or techniques, quality assurance
procedures or standards, operating procedures, files, plans, specifications,
proposals, drawings, charts, graphs, support data, trade secrets, supplier
lists, supplier information, purchasing methods or practices, distribution and
selling activities, consultants' reports, marketing and engineering or other
technical studies, maintenance records, employment or personnel data, marketing
data, strategies or techniques, financial reports, budgets, projections, cost
analyses, price lists, formulae and analyses, employee lists, customer records,
customer lists, customer source lists, proprietary computer software, and
internal notes and memoranda relating to any of the foregoing.

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

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

         3. LIMITED COVENANT NOT TO COMPETE. During the Employment Term and for
a period of two years thereafter, commencing with the Date of Termination,
Employee agrees that, with respect to each State of the United States or other
jurisdiction, or specified portions thereof, in which the Employee regularly (a)
makes contact with customers of the Company or any of its subsidiaries, (b)
conducts the business of the Company or any of its subsidiaries or (c)
supervises the activities

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of other employees of the Company or any of its subsidiaries, as identified in
Appendix B attached hereto and forming a part of this Agreement, and in which
the Company or any of its subsidiaries engages in the Death Care Business on the
Date of Termination (collectively, the "Subject Areas"), Employee will restrict
his activities within the Subject Areas as follows:

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

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

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

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

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

         Employee agrees that he will from time to time upon the Company's
request promptly execute any supplement, amendment, restatement or other
modification of Appendix B as may be necessary or appropriate to correctly
reflect the jurisdictions which, at the time of such modification, should be
covered by Appendix B and this Article V Section 3. Furthermore, Employee agrees
that

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all references to Appendix B in this Agreement shall be deemed to refer to
Appendix B as so supplemented, amended, restated or otherwise modified from time
to time.

         4. INJUNCTIVE RELIEF; OTHER REMEDIES. Employee acknowledges that a
breach by Employee of Section 2 or 3 of this Article V would cause immediate and
irreparable harm to the Company for which an adequate monetary remedy does not
exist; hence, Employee agrees that, in the event of a breach or threatened
breach by Employee of the provisions of Section 2 or 3 of this Article V during
or after the Employment Term, the Company shall be entitled to injunctive relief
restraining Employee from such violation without the necessity of proof of
actual damage or the posting of any bond, except as required by non-waivable,
applicable law. Nothing herein, however, shall be construed as prohibiting the
Company from pursuing any other remedy at law or in equity to which the Company
may be entitled under applicable law in the event of a breach or threatened
breach of this Agreement by Employee, including without limitation the recovery
of damages and/or costs and expenses, such as reasonable attorneys' fees,
incurred by the Company as a result of any such breach or threatened breach. In
addition to the exercise of the foregoing remedies, the Company shall have the
right upon the occurrence of any such breach or threatened breach to cancel any
unpaid salary, bonus, commissions or reimbursements otherwise outstanding at the
Date of Termination. In particular, Employee acknowledges that the payments
provided under Article IV Sections 3 and 5 are conditioned upon Employee
fulfilling any noncompetition and nondisclosure agreements contained in this
Article V. In the event Employee shall at any time materially breach or threaten
to breach any noncompetition or nondisclosure agreements contained in this
Article V, the Company may suspend or eliminate payments under Article IV during
the period of such breach or threatened breach. Employee acknowledges that any
such suspension or elimination of payments would be an exercise of the Company's
right to suspend or terminate its performance hereunder upon Employee's breach
of this Agreement; such suspension or elimination of payments would not
constitute, and should not be characterized as, the imposition of liquidated
damages.

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

         6. GOVERNING LAW OF THIS ARTICLE V; CONSENT TO JURISDICTION. Any
dispute regarding the reasonableness of the covenants and agreements set forth
in this Article V (including Appendix B hereto), or the territorial scope or
duration thereof, or the remedies available to the Company upon any breach of
such covenants and agreements, shall be governed by and interpreted in
accordance with the laws of the State of the United States or other jurisdiction
in which the alleged prohibited competing activity or disclosure occurs, and,
with respect to each such dispute, the Company and Employee each hereby
irrevocably consent to the exclusive jurisdiction of the state and federal
courts sitting in the relevant State (or, in the case of any jurisdiction
outside the United States, the relevant courts of such jurisdiction) for
resolution of such dispute, and agree to be irrevocably bound by any

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judgment rendered thereby in connection with such dispute, and further agree
that service of process may be made upon him or it in any legal proceeding
relating to this Article V and/or Appendix B by any means allowed under the laws
of such jurisdiction. Each party irrevocably waives any objection he or it may
have as to the venue of any such suit, action or proceeding brought in such a
court or that such a court is an inconvenient forum.

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

                                   ARTICLE VI
                                   ARBITRATION

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

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

                                      -11-
<PAGE>
         3. LOCATION OF PROCEEDINGS. The place of arbitration shall be New
Orleans, Louisiana.

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

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

                                   ARTICLE VII
                                  MISCELLANEOUS

         1.       BINDING EFFECT.

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

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

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

                                      -12-
<PAGE>
         2. NOTICES. All notices hereunder must be in writing and shall be
deemed to have been given upon receipt of delivery by: (a) hand (against a
receipt therefor), (b) certified or registered mail, postage prepaid, return
receipt requested, (c) a nationally recognized overnight courier service
(against a receipt therefor) or (d) telecopy transmission with confirmation of
receipt. All such notices must be addressed as follows:

         If to the Company, to:

         Stewart Enterprises, Inc.
         110 Veterans Memorial Boulevard
         Metairie, Louisiana  70005
         Attn:  Chief Executive Officer

         If to the Employee, to:

         Randall L. Stricklin
         19412 Woodlands Lane

         Huntington Beach, California 92648

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

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

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

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

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

                                      -13-
<PAGE>
         7. REMEDIES NOT EXCLUSIVE. Except as provided in Article VI hereof, no
remedy specified herein shall be deemed to be such party's exclusive remedy, and
accordingly, in addition to all of the rights and remedies provided for in this
Agreement, the parties shall have all other rights and remedies provided to them
by applicable law, rule or regulation.

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

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

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

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

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

         IN WITNESS WHEREOF, the Company and the Employee have caused this
Agreement to be executed as of the Agreement Date.

                                             STEWART ENTERPRISES, INC.

                                             By:
                                                       James W. McFarland
                                                 Compensation Committee Chairman

                                             EMPLOYEE:

                                                      Randall L. Stricklin

                                      -14-
<PAGE>
                       APPENDIX A TO EMPLOYMENT AGREEMENT
                        BETWEEN STEWART ENTERPRISES, INC.
                                       AND
                              RANDALL L. STRICKLIN

                  BASE SALARY, BONUS COMPENSATION AND BENEFITS

1.       Effective November 1, 2001, Employee's title(s) shall be Senior Vice
         President and President - Western Division, Employee's Base Salary
         shall be $250,000, and Employee's principal work location shall be the
         Los Angeles, California metropolitan area.

2.       For Fiscal Year 2002 ("FY 2002"), the Employee shall be eligible to
         receive a Bonus of up to $250,000.

         (a) Maximum Bonus for FY 2002 will be determined based on the following
EPS levels:

                  FY 2002 Diluted EPS Goal                  Maximum Bonus

                          <  $.--                                 $0
                             $.--                                 $-------
                             $.--                                 $-------
                             $.--                                 $-------
                             $.--                                 $[maximum]

         (1)      [25]% of the Maximum Bonus will be awarded based on the
                  achievement of the EPS level;

         (2)      [50]% of the Maximum Bonus will be awarded based on the
                  following Quantitative Factors:

                                [FACTORS TO COME]

         (3)      [25]% of the Maximum Bonus will be discretionary, based on
                  Qualitative Factors determined by the [EXECUTIVE OFFICER TO
                  WHOM EMPLOYEE REPORTS].

(b)      Cumulative effects of changes in accounting methods, stock option
         charges and other items approved for exclusion by the Compensation
         Committee shall be excluded from diluted earnings per share for
         purposes of this calculation. Diluted earnings per share shall be
         calculated by the Company's Chief Financial Officer and shall be
         binding on all Employees absent manifest error.

(c)      If earnings per share fall between the levels identified above, the
         Maximum Bonus will be prorated so that the Maximum Bonus is equal to
         (a) the Maximum Bonus awarded at the lower level, plus (b) the product
         of (1) the excess of the Maximum Bonus awarded at the higher level over
         the Maximum Bonus awarded at the lower level, and (2) the quotient of
         (i) the excess of the diluted earnings per share over the lower
         earnings per share level, and (ii) the excess of the higher earnings
         per share level over the lower earnings per share level.

                                       A-1
<PAGE>
3.       The Company shall provide the Employee with the following fringe
         benefits and perquisites:

         (a)      an automobile allowance of $720 per month. In addition, the
                  Company will reimburse the Employee for all gasoline,
                  maintenance, repairs and insurance for Employee's personal
                  car, as if it were a Company-owned vehicle;

         (b)      reimbursement for membership dues, including assessments and
                  similar charges, in one or more clubs deemed useful for
                  business purposes in an amount not to exceed $8,000 or such
                  additional amounts as may be approved by the President; and

         (c)      first class air travel while on Company business.

                                             Agreed to and accepted:

                                             STEWART ENTERPRISES, INC.

Date: November 1, 2001                       By:
                                                       James W. McFarland
                                                 Compensation Committee Chairman

                                             EMPLOYEE:

  Date: November 1, 2001                     ___________________________________
                                                     Randall L. Stricklin

                                       A-2
<PAGE>
                       APPENDIX B TO EMPLOYMENT AGREEMENT
                        BETWEEN STEWART ENTERPRISES, INC.
                                       AND
                              RANDALL L. STRICKLIN

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

A.       States and Territories of the United States:

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

         Clark, Washoe, Douglas, Lincoln, Nye, Humbolot, Pershing, Churchill,
         Storey

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

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

         Josephine, Deschutes, Washington, Douglas, Curry, Jackson, Jefferson,
         Crook, Harney, Lake, Klamath, Lane, Linn, Clatsop, Columbia, Multnomah,
         Clackamas, Yamhill, Tillamook, Coos

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

  AGREED TO AND ACCEPTED:

  STEWART ENTERPRISES, INC.                            EMPLOYEE

  BY:    _______________________________               _________________________
         JAMES W. MCFARLAND                            DATE: NOVEMBER 1, 2001
         COMPENSATION COMMITTEE CHAIRMAN
  DATE: NOVEMBER 1, 2001

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

                                       B-1
<PAGE>
         Glenn, Plumas, Sutter, Yuba, Colusa, Tehama, Sierra, Fresno, San Mateo,
         Contra Costa, San Joaquin, Stanislaus, Santa Clara, Mariposa,
         Tuolumine, Mono, Orange, San Brenardino, Kern, Ventura, Inyo,
         Riverside, Los Angeles, Monterey, Kings, Santa Barbara, Madera, Tulare,
         San Benito, Merced, San Luis Obispo, Nevada, Del Norte, Siskiyou,
         Alameda, Sacramento, El Dorado, Amador, Yolo, Solano, San Diego,
         Imperial, Sonoma, Napa, Lake, Marin, Santa Cruz, Calaveras, Placer,
         Butte

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

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

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

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

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

5.       Acknowledgment

                                                       AGREED TO AND ACCEPTED:

                                                       EMPLOYEE

                                                       -------------------------
                                                       DATE: NOVEMBER 1, 2001

                                       B-2
<PAGE>
         The Company and Employee acknowledge that Employee's voluntary
         compliance with Article V, Sections 2 and 3 constitutes a significant
         part of the consideration for the Company's agreement to make the
         payments specified in Article IV. Therefore, the Company and Employee
         acknowledge that it is the intent of this Agreement that if Employee
         engages in conduct described as prohibited conduct in Article V Section
         2 or 3, the Company may suspend or eliminate payments under Article IV,
         including Sections 3 and 5 of Article IV, during the period of such
         conduct, even if the parties' contractual prohibitions on such conduct
         are determined to be invalid, illegal or unenforceable under applicable
         law.

         Furthermore, the parties acknowledge that any provision in this
         Appendix B that permits Employee to engage, after the Date of
         Termination, in a particular jurisdiction, in conduct otherwise
         prohibited by Article V Section 2 or 3 (for example, as in California
         and Nebraska) has been agreed to solely in order to comply with the
         limitations provided in the law of that jurisdiction on the extent to
         which nondisclosure and noncompetition agreements may be enforced.
         Therefore, the parties acknowledge that, although Employee may be
         permitted pursuant to this Appendix B to engage, after the Date of
         Termination, in certain jurisdictions (such as California and
         Nebraska), in conduct otherwise prohibited by Article V Section 2 or 3,
         if Employee does engage in conduct prohibited by the provisions of
         Article V Section 2 or 3 (as such provisions appear in the Agreement
         without giving effect to any modifications to such provisions made by
         this Appendix B), Employee will forfeit his or her right to payments
         under Article IV, including Sections 3 and 5 of Article IV, during the
         period of such conduct.

                                                       AGREED TO AND ACCEPTED:

                                                       EMPLOYEE

                                                       -------------------------
                                                       DATE: NOVEMBER 1, 2001

                                       B-3<PAGE>
                                                                   EXHIBIT 10.37

                           CHANGE OF CONTROL AGREEMENT

         This Change of Control Agreement ("Agreement") between Stewart
Enterprises, Inc., a Louisiana corporation (the "Company"), and Randall L.
Stricklin (the "Employee") is dated as of November 1, 2001 (the "Change of
Control Agreement Date").

                                    ARTICLE I
                                   DEFINITIONS

         1.1 EMPLOYMENT AGREEMENT. After a Change of Control (defined below),
this Agreement supersedes the Employment Agreement dated as of November 1, 2001
between Employee and the Company (the "Employment Agreement") except to the
extent that certain provisions of the Employment Agreement are expressly
incorporated by reference herein. After a Change of Control, the definitions in
this Agreement supersede definitions in the Employment Agreement, but
capitalized terms used herein that are not defined in this Agreement have the
meanings given to them in the Employment Agreement.

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

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

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

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

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

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

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

                  (b) individuals who, as of the Change of Control Agreement
         Date, constitute the Board (the "Incumbent Board") cease for any reason
         to constitute at least a majority of the Board; provided, however, that
         any individual becoming a director subsequent to the Change of Control
         Agreement Date whose election, or nomination for election by the
         Company's

<PAGE>

         shareholders, was approved by a vote of at least a majority of the
         directors then comprising the Incumbent Board shall be considered a
         member of the Incumbent Board, unless such individual's initial
         assumption of office occurs as a result of an actual or threatened
         election contest with respect to the election or removal of directors
         or other actual or threatened solicitation of proxies or consents by or
         on behalf of a person other than the Incumbent Board; or

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

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

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

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

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

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

         1.5 CAUSE. "Cause" shall mean:

                                        2

<PAGE>

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

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

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

         1.6 GOOD REASON. "Good Reason" shall mean:

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

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

                                        3

<PAGE>

         not taken in bad faith that is remedied within 10 days after receipt of
         written notice thereof from the Employee to the Company;

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

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

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

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

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

                                   ARTICLE II
                            CHANGE OF CONTROL BENEFIT

         2.1 EMPLOYMENT TERM AND CAPACITY AFTER CHANGE OF CONTROL. (a) If a
Change of Control occurs on or before October 31, 2004, then the Employee's
employment term (the "Employment Term") shall continue through the later of (i)
the second anniversary of the Change of Control or (ii) October 31, 2004,
subject to any earlier termination of Employee's status as an employee pursuant
to this Agreement.

         (b) After a Change of Control and during the Employment Term, (i) the
Employee's position (including status, offices, titles and reporting
requirements), authority, duties and responsibilities shall be at least
commensurate in all material respects with the most significant of those held,
exercised and assigned at any time during the 120-day period immediately
preceding the Change of Control and (ii) the Employee's service shall be
performed at the location where the Employee was employed immediately preceding
the Change of Control or any office or location less than 35 miles from such
location. Employee's position, authority, duties and responsibilities after a
Change of Control shall not be considered commensurate in all material respects
with Employee's position, authority, duties and responsibilities prior to a
Change of Control unless after the Change of Control Employee holds (x) an
equivalent position in the Company or, (y) if the Company is controlled or will
after the transaction be controlled by another company (directly or indirectly),
an equivalent position in the ultimate parent company. Employee shall devote
himself to his

                                        4

<PAGE>

employment responsibilities with the Company (or, if applicable, the ultimate
parent entity) as provided in Article I Section 3 of the Employment Agreement.

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

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

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

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

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

                  (e) Incentive, Savings and Retirement Plans. The Employee
         shall be entitled to participate in all incentive, savings and
         retirement plans, practices, policies and programs applicable generally
         to other peer employees of the Company and its affiliated companies,
         but in no event shall such plans, practices, policies and programs
         provide the Employee with incentive opportunities (measured with
         respect to both regular and special incentive opportunities, to the
         extent, if any, that such distinction is applicable), savings
         opportunities and retirement benefit opportunities, in each case, less
         favorable than the most favorable of those provided by the Company and
         its affiliated companies for the Employee under any agreements, plans,
         practices, policies and programs as in effect at any time during the
         120- day period immediately preceding the Change of Control or, if more
         favorable to the

                                        5

<PAGE>

         Employee, those provided generally at any time after the Change of
         Control to other peer employees of the Company and its affiliated
         companies.

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

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

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

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

         2.4 OBLIGATIONS UPON TERMINATION AFTER A CHANGE OF CONTROL.

                  (a) Termination by Company for Reasons other than Death,
         Disability or Cause; by Employee for Good Reason. If, after a Change of
         Control and during the Employment Term, the Company (or, if applicable
         the ultimate parent company), terminates the Employee's employment
         other than for Cause, death or Disability, or the Employee terminates
         employment for Good Reason, the Company shall pay to the Employee in a
         lump sum in cash within 30 days of the Date of Termination an amount
         equal to three times the

                                        6

<PAGE>

         sum of (i) the amount of Base Salary in effect at the Date of
         Termination, plus (ii) the maximum Bonus for which the Employee is
         eligible for the 12-month period in which the Date of Termination
         occurs.

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

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

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

                  (e) Termination by Employee for Reasons other than Good
         Reason. If, after a Change of Control and during the Employment Term,
         the Employee's status as an employee is terminated by the Employee for
         reasons other than Good Reason, then the Company shall pay to the
         Employee an amount equal to a single year's Base Salary in effect at
         the Date of Termination, payable in equal installments over a two-year
         period at such intervals as other salaried employees of the Company are
         paid.

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

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

         2.6 STOCK OPTIONS. The foregoing benefits are intended to be in
addition to the value of any options to acquire Common Stock of the Company the
exercisability of which is accelerated

                                        7

<PAGE>

pursuant to the terms of any stock option, incentive or other similar plan
heretofore or hereafter adopted by the Company.

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

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

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

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

                                        8

<PAGE>

                                   ARTICLE III
                                  MISCELLANEOUS

         3.1 BINDING EFFECT; SUCCESSORS.

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

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

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

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

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

         If to the Company, to:

         Stewart Enterprises, Inc.
         110 Veterans Memorial Boulevard
         Metairie, Louisiana  70005
         Attn:  Chief Executive Officer

         If to the Employee, to:

         Randall L. Stricklin
         19412 Woodlands Lane
         Huntington Beach, California 92648

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

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

                                        9

<PAGE>

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

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

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

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

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

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

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

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

                                       10

<PAGE>

         IN WITNESS WHEREOF, the Company and the Employee have caused this
Agreement to be executed as of the Change of Control Agreement Date.

                                         STEWART ENTERPRISES, INC.

                                         By:
                                              ----------------------------------
                                                    James W. McFarland
                                              Compensation Committee Chairman

                                         EMPLOYEE:

                                         ---------------------------------------
                                                 Randall L. Stricklin

                                       11

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