Document:

<PAGE>

                                                                    EXHIBIT 10.7

                                FOURTH AMENDMENT
                                       TO

                                CREDIT AGREEMENT
                                ----------------

          THIS FOURTH AMENDMENT, dated as of May 31, 2001 ("Fourth Amendment"),
is by and among CHANNELL COMMERCIAL CORPORATION ("Borrower"), a Delaware
corporation, the financial institutions signatory hereto (collectively, the
"Lenders") and FLEET NATIONAL BANK, as Administrative Agent for the Lenders (in
such capacity, together with its successors in such capacity, the
"Administrative Agent").

PRELIMINARY STATEMENTS

          (A) The Borrower, the Lenders and the Administrative Agent are parties
to the Credit Agreement, dated as of May 1, 1998 and as amended by Amendment No.
1 to Credit Agreement, dated as of September 3, 1998 and Amendment No. 2 to
Credit Agreement, dated as of December 29, 1999 and Amendment No. 3 to Credit
Agreement, dated as of July 20, 2000 (as heretofore amended, the "Original
Credit Agreement" and as it is hereby and as it may hereafter from time to time
be amended, modified and supplemented, the "Credit Agreement");

          (B) An Event of Default has occurred and is continuing under the
Credit Agreement as described in Article V hereof (the "Current Event of
Default");

          (C) Notwithstanding the entitlement of the Administrative Agent and
the Lenders to enforce their rights and remedies pursuant to the Credit
Agreement and other Loan Documents as a result of the Current Event of Default,
the Administrative Agent and the Lenders are willing to waive the Current Event
of Default on and subject to the terms and conditions set forth herein; and

          (D) Each capitalized term used but not otherwise defined herein shall
have the meaning ascribed thereto in the Credit Agreement.

          NOW, THEREFORE, in consideration of the premises and of the mutual
covenants and agreements contained herein, the parties hereby agree as follows:

Article I.  Amendments to Credit Agreement.
            -------------------------------

          This Fourth Amendment shall be deemed to be an amendment to the Credit
Agreement, and shall not be construed in any way as a replacement therefor.  All
of the terms and provisions of this Fourth Amendment, including, without
limitation, the representations and warranties set forth herein, are hereby
incorporated by reference into the Credit Agreement as if such terms and
provisions were set forth in full therein.  Capitalized terms used herein and
not otherwise defined shall have the meaning ascribed to them in the Credit
Agreement.  The Credit Agreement is hereby amended in the following respects:
<PAGE>

     1.1  Notwithstanding any provision to the contrary contained in the Loan
Documents, from and after the Fourth Amendment Effective Date, the Revolving
Facility shall be limited to $25,000,000 in the aggregate, reduced from
$30,000,000 as heretofore in effect, and the aggregate outstanding amount of all
Revolving Advances and Letter of Credit Advances and face amount of outstanding
Letters of Credit shall not exceed the existing outstanding amount of
$23,500,000.  The unused portion of the Revolving Facility shall be reserved for
(i) payment of actual costs relating to foreign exchange differences and based
on the applicable conversion rate (as quoted by or as determined by the
Administrative Agent) resulting from the conversion of Alternative Currency
Revolving Advances into Revolving Loans denominated in U.S. Dollars pursuant to
Section 1.2 herein, and Revolving Loans for such purpose shall be made in
accordance with the terms of the Credit Agreement, with detail in writing
satisfactory to the Administrative Agent evidencing such costs, and/or (b)
borrowings for other purposes if and to the extent approved by the Required
Lenders in the exercise of their sole discretion.

     1.2  Notwithstanding any provision to the contrary contained in the Loan
Documents, from and after the Fourth Amendment Effective Date, the Borrower
shall be prohibited from borrowing any Alternative Currency Revolving Advances
or requesting any Alternative Currency Letters of Credit under the Credit
Agreement.  The existing outstanding Alternative Currency Revolving Advances
shall convert into Revolving Loans denominated in U.S. Dollars effective upon
the expiration of the applicable Interest Period relating to each such
respective outstanding Alternative Currency Revolving Advance, at the applicable
conversion rate (as quoted by or as determined by the Administrative Agent), all
costs of each such conversion to be at the expense of the Borrower and due and
payable on the date of each such conversion.

     1.3  Notwithstanding any provision to the contrary contained in the Loan
Documents, from and after the Fourth Amendment Effective Date, all outstanding
Advances shall bear interest as Base Rate Advances and the Borrower shall not be
permitted to select or maintain LIBOR Rate Advances, except that LIBOR Rate
Advances existing as of the Fourth Amendment Effective Date shall not be
required to be converted to Base Rate Advances until the expiration of the then
current Interest Period applicable thereto, whereupon each such LIBOR Rate
Advance shall automatically be deemed converted into a Base Rate Advance.

     1.4  Section 1.01, Certain Defined Terms, is amended as follows:
                        ---------------------

     (a)  The definition of "Applicable Margin" is amended by restating the
                             -----------------
final sentence in such definition as follows:

     "Notwithstanding any provision or implication to the contrary contained in
the Loan Documents (A) all Revolving Advances made from and after the Fourth
Amendment Effective Date, and all conversions from and after the Fourth
Amendment Effective Date of an outstanding LIBOR Rate Advance (whether a Term A
Advance, a Revolving Advance, or an Alternative Currency Revolving Advance)
shall bear interest exclusively as a Base Rate Advance and the Applicable Margin
therefor shall be 2.50% and (B) the Applicable Margin for all Base Rate Advances
existing as of the Fourth Amendment Effective Date shall be 2.50%. No Advances,
in any event, shall be based on or in any way affected or changed by the ratio
of Total Consolidated Debt to Consolidated EBITDA".

                                      -2-
<PAGE>

     (b)  The following definitions are inserted in proper alphabetical order:

     "Fourth Amendment" means the Fourth Amendment to the Credit Agreement dated
      ----------------
as of May __, 2001.

     "Fourth Amendment Effective Date" shall have the meaning as set forth in
      -------------------------------
the preamble to Article III of the Fourth Amendment, i.e., the date on which all
                                                     ----
of the conditions precedent to effectiveness of the Fourth Amendment shall have
occurred to the satisfaction of the Required Lenders and Administrative Agent.

     1.5  Article VIII is amended by adding the following at the conclusion of
Section 8.13:

     "the Borrower shall fail by June 30, 2001 to obtain and have in effect a
fully executed commitment (subject only to due diligence and customary closing
conditions as determined in the reasonable judgment of the Administrative Agent)
from a lender or lenders to refinance and repay in full the Obligations owing to
the Lenders and the Agent on or before August 31, 2001 or such refinancing and
repayment shall fail to have been consummated or shall have been terminated or
abandoned on or before August 31, 2001."

Article II.  Representations and Warranties; Confirmations
             ---------------------------------------------

     In order to induce the Lenders and the Administrative Agent to enter into
this Fourth Amendment, the Borrower and each of the other Loan Parties, jointly
and severally, represent and warrant to the Lenders and the Administrative Agent
that:

     2.1  As of the date hereof, and after giving effect to this Fourth
Amendment, no Default or Event of Default exists under the Credit Agreement,
other than the Current Event of Default, and no event exists which, with the
giving of notice or lapse of time, or both, would constitute a Default or Event
of Default.

     2.2  As of the date hereof and after giving effect to this Fourth
Amendment, each and every one of the representations and warranties set forth in
the Loan Documents shall be true, accurate and complete in all respects and with
the same effect as though made on the date hereof, and each shall hereby be
incorporated herein in full by reference as if restated herein in its entirety,
except for any representation or warranty limited by its terms to a specific
date and except for changes in the ordinary course of business which are not
prohibited by the Credit Agreement (as amended hereby) and which shall not,
either singly or in the aggregate, have a Material Adverse Effect.

     2.3  The execution, delivery and performance by (i) the Borrower of this
Fourth Amendment and any other Loan Document delivered pursuant hereto, and (ii)
each other Loan Party of any Loan Document to which it is a Party, are within
each such Loan Party's organizational powers and have been duly authorized by
all necessary corporate action on the part of each such Loan Party. This Fourth
Amendment is the legal, valid and binding obligation of the Borrower enforceable
against the Borrower in accordance with its terms and this Fourth

                                      -3-
<PAGE>

Amendment is the legal, valid and binding obligation of each Guarantor,
enforceable against each Guarantor in accordance with its terms.

     2.4  The execution, delivery and performance by the Borrower and each other
Loan Party of any Loan Document and consummation by the Borrower and each other
Loan Party of the transactions contemplated hereby and thereby does not and
shall not (a) conflict with or result in any breach or violation of any
provision of the certificate of incorporation or by-laws of the Borrower or any
other Loan Party, (b) result in any breach or violation of, or constitute a
default, other than the Current Event of Default (or an event which, with notice
or lapse of time or both, would constitute a default), under, or result in the
termination of, or accelerate the performance required by, or result in the
creation of a Lien upon any of the properties or assets of the Borrower or any
other Loan Party under any of the terms, conditions or provisions of any note,
bond, mortgage, indenture, deed of trust, license, lease agreement or other
instrument or obligation to which the Borrower or any other Loan Party is a
party or to which any of its properties or assets are subject, (c) require any
consent, approval, authorization or permit of, or filing with or notification
to, any third party or any governmental, judicial, administrative or regulatory
authority of the United States or of any state, local or foreign government or
subdivision thereof (a "Governmental Entity") or (d) violate any order, writ,
                        -------------------
injunction, decree, judgment, ruling, law, statute, rule or regulation of any
Governmental Entity.

     2.5  The Borrower hereby acknowledges and confirms that all of the liens
and security interests granted pursuant to the Loan Documents secure, without
limitation, the due payment and performance of all indebtedness, liabilities and
obligations of the Borrower to the Lenders under the Credit Agreement as amended
hereby, and that the term "obligations" as used in the Loan Documents (or any
other term used therein to describe or refer to the indebtedness, liabilities,
and obligations of the Borrower to the Lenders and the Administrative Agent)
includes, without limitation, the indebtedness, liabilities and obligations of
the Borrower and the Administrative Agent to the Lenders under the Credit
Agreement as amended hereby.

     2.6  Each of the Guarantors hereby acknowledges and confirms that the terms
"Obligations" , "Guaranteed Obligations" and "Guaranteed Liabilities" as used in
each Guaranty includes, without limitation, all of the indebtedness, obligations
and liabilities of the Borrower to the Lenders and the Administrative Agent
under the Credit Agreement as amended hereby.

     2.7  Each of the Guarantors hereby acknowledges and confirms that:

     (a)  all of the liens and security interests granted pursuant to the
Security Agreement and any Collateral Document secure, without limitation, all
of the indebtedness, liabilities and obligations of such Guarantor to the
Lenders and the Administrative Agent under its Guaranty, as confirmed hereby,
and that the term "Obligations" as used in the Security Agreement and any
Collateral Document (or any other term used therein to describe or refer to the
indebtedness, liabilities and obligations of each Guarantor to the Lenders),
includes without limitation, the indebtedness, liabilities and obligations of
such Guarantor under its Guaranty, as confirmed hereby; and

     (b)  all of the representations and warranties set forth in the Security
Agreement and each other Collateral Document, as confirmed hereby, are true and
correct as of

                                      -4-
<PAGE>

the date hereof, except for any representation or warranty limited by its terms
to a specific date and except for changes in the ordinary course of business
which are not prohibited by the Security Agreement or such other Collateral
Document and which shall not, either singly or in the aggregate, have a Material
Adverse Effect.

Article III.  Conditions Precedent to the Effectiveness of this Fourth
              --------------------------------------------------------
Amendment.
----------

     The Amendments contemplated by Section 1 hereof are subject to the
                                    ---------
satisfaction of each of the following conditions precedent.  The date on which
all such conditions shall have been fulfilled to the satisfaction of the
Administrative Agent and the Required Lenders, and the date on which this Fourth
Amendment shall have become effective, shall be herein called the "Fourth
Amendment Effective Date".

     The Administrative Agent shall have received on or before the Fourth
Amendment Effective Date the following, and the following documents each of
shall be dated as of the Fourth Amendment Effective Date (unless otherwise
specified), in form and substance satisfactory to the Administrative Agent and
the Lenders, and in sufficient copies, for each Lender:

     3.1  Original, executed counterparts of this Fourth Amendment.

     3.2  Certified copies of resolutions of the Board of Directors of the
Borrower, A.C. Egerton (Holdings) Limited and each other Loan Party approving
this Fourth Amendment, the Guaranty Confirmation and each other Loan Document to
which it is or is to be a party, and of all documents evidencing other necessary
corporate action and governmental and other third party approvals and consents,
if any, with respect to this Fourth Amendment, and each other Loan Document.

     3.3  A copy of a certificate of the Secretary of State of the jurisdiction
of incorporation of the Borrower, dated reasonably near the date hereof, stating
that the Borrower has paid all franchise taxes to the date of such certificate
and the Borrower is duly incorporated and in good standing under the laws of the
State of the jurisdiction of its incorporation.

     3.4  A certificate of the Borrower and each other Loan Party signed on
behalf of the Borrower or such other Loan Party, as the case may be, by a
Responsible Officer and the Secretary or an Assistant Secretary of the Borrower
or such other Loan Party, as the case may be, dated the date hereof (the
statements made in such certificate shall be true on and as of the date hereof),
certifying as to (1) the absence of any amendments to the charter of the
Borrower or such other Loan Party since the date of the Secretary of State's
certificate referred to above, or in the case of A.C. Egerton (Holdings)
Limited, since the copies of its Memorandum and Articles of Association as in
effect on the date delivered to the Administrative Agent in connection with the
Third Amendment to Credit Agreement, (2) the absence of any amendments to the
bylaws of the Borrower and each other Loan Party since the last date of delivery
thereof to the Administrative Agent, (3) the due incorporation and good standing
of the Borrower and each other Loan Party as a corporation organized under the
laws of the jurisdiction of its incorporation, and the absence of any proceeding
for the dissolution or liquidation of the Borrower or any other Loan Party, (4)
the truth of the representations and warranties contained

                                      -5-
<PAGE>

herein, (5) the satisfaction of the conditions precedent required of the
Borrower and its Subsidiaries as set forth in this Article III, and (6) the
absence of any event occurring and continuing, or resulting from the
transactions contemplated by this Fourth Amendment, that constitutes a Default,
other than the Current Event of Default.

     3.5  A certificate of the Secretary or an Assistant Secretary of the
Borrower and each other Loan Party certifying the names and true signatures of
the officers of the Borrower and each other Loan Party authorized to sign this
Fourth Amendment, the Guaranty Confirmation and each other Loan Document to
which they are or are to be parties and the other documents to be delivered
hereunder and thereunder.

     3.6  The first $50,000 installment of an amendment fee in the full amount
of $100,000.00 shall have been paid to the Administrative Agent, for the pro
rata account of each Lender, the full amount of which $100,000 fee the Borrower
hereby acknowledges has been fully earned as of the date of execution and
delivery hereof by the Lenders and the Administrative Agent, provided that the
$50,000 balance of such fee shall be delivered as set forth in Section 4.1
below.

     3.7  All accrued fees and expenses of the Administrative Agent and if and
as appropriate, among the Lenders (including, without limitation, the reasonable
fees and expenses of counsel for the Administrative Agent, syndication,
collateral examination appraisal, and other direct out-of-pocket expenses) shall
have been paid.

     3.8  The Administrative Agent shall have received, in form and substance
reasonably satisfactory to it, such other documents, agreements and instruments
as the Administrative Agent may reasonably request for a transaction of the
nature contemplated by this Fourth Amendment and all proceedings (including,
without limitation, under applicable foreign law) in connection with the
transactions contemplated by this Fourth Amendment, and all documents incidental
thereto shall be satisfactory to the Administrative Agent.

Article IV.  Conditions Subsequent.
             ----------------------

     4.1  The Borrower shall deliver to the Administrative Agent, for the pro
rata account of each Lender, the balance of the amendment fee in the amount of
$50,000.00, as provided for in Section 3.8 hereof, on June 30, 2001, and failure
to make payment thereof on such date shall constitute an immediate Event of
Default under the Credit Agreement (notwithstanding any other provision
contained in the Credit Agreement), provided that, if the Borrower shall have
delivered to the Lenders and the Administrative Agent by such date the
commitment letter required to avoid the occurrence of an Event of Default under
Section 8.13 of the Credit Agreement (as amended hereby), the Lenders shall
waive the second and final installment of the amendment fee.

Article V.  Waiver
            ------

     5.1  Waiver.  The Borrower was in violation of (i) the ratio of Total
          ------
Consolidated Debt to EBITDA under Section 6.18(b) of the Credit Agreement as of
December

                                      -6-
<PAGE>

31, 2000 and March 31, 2001 and (ii) the Fixed Charge Coverage Ratio under
Section 6.18 (c) of the Credit Agreement as of December 31, 2000 and March 31,
2001. Effective on the Fourth Amendment Effective Date, the Lenders and the
Administrative Agent hereby waive the Event of Default under Section 8.03 caused
by the above-described violations of Section 6.18, provided that such waiver
shall be effective only with respect to the specific default described in the
preceding sentence and shall not be applicable to any subsequent or other
failure by the Borrower to comply with the terms of the Credit Agreement.

Article VI.  Reference to and Effect Upon the Credit Agreement.
             --------------------------------------------------

     6.1  Effect.  The Credit Agreement, the Collateral Documents and all
          ------
agreements, instruments and documents executed and delivered in connection with
any of the foregoing, shall each be deemed amended hereby to the extent
necessary, if any, to give effect to the provisions of this Fourth Amendment.

     6.2  No Waiver; References.  The execution, delivery and effectiveness of
          ---------------------
this Fourth Amendment shall not operate as a waiver of any right, power or
remedy of the Administrative Agent or any Lender under the Credit Agreement, nor
constitute a waiver of any provision of the Credit Agreement, except as
specifically set forth herein. Upon the effectiveness of this Fourth Amendment,
each reference in:

          (i)   the Credit Agreement to "this Agreement", "hereunder", "hereof",
"herein" or words of similar import shall mean and be a reference to the Credit
Agreement as amended hereby;

          (ii)  the other Loan Documents to the "Credit Agreement" shall mean
and be a reference to the Credit Agreement as amended hereby;

          (iii) the Loan Documents to the "Loan Documents" shall be deemed to
include this Fourth Amendment, and each of the other Loan Documents;

Article VII.  Miscellaneous.
              --------------

     7.1  Payment of Expenses.  The Borrower shall pay to the Administrative
          -------------------
Agent, for the pro rata accounts of each Lender, all documentation expenses
including, but not limited to, any payment or prepayment in connection with any
Alternative Currency conversion as set forth herein pursuant to Section 1.2.

     7.2  Continuing Effectiveness of Credit Agreement.  Except as specifically
          --------------------------------------------
amended hereby, the Credit Agreement and the other Loan Documents shall remain
in full force and effect in accordance with the terms and are hereby ratified
and confirmed.

     7.3  Headings.  Section headings in this Fourth Amendment are included
          --------
herein for convenience of reference only and shall not constitute a part of this
Fourth Amendment for any other purposes.

                                      -7-
<PAGE>

     7.4  Law.  THIS FOURTH AMENDMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND
          ---
GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK.

     7.5  Successors.  This Fourth Amendment shall be binding upon the Borrower,
          ----------
the other Loan Parties, the Lenders and the Administrative Agent and their
respective successors and assigns, and shall inure to the benefit of the
Borrower, the other Loan Parties, the Lenders and the Administrative Agent and
the successors and assigns of the Lenders and the Administrative Agent.

     7.6  Modification.  No modification or waiver of or with respect to any
          ------------
provisions of this Fourth Amendment and all other agreements, instruments and
documents delivered pursuant hereto or thereto, nor consent to any departure by
the Administrative Agent or the Lenders from any of the terms or conditions
thereof, shall in any event be effective unless it shall be in writing and
executed in accordance with the provisions of the Credit Agreement, and then
such waiver or consent shall be effective only in the specific instance and for
the specific purpose for which given.  No consent to or demand on the Borrower
in any case shall, of itself, entitle it to any other or further notice or
demand in similar or other circumstances.  This Fourth Amendment, together with
the Credit Agreement, as amended, embodies the entire agreement and
understanding among the Borrower, the Administrative Agent and the Lenders and
supersedes all prior agreements and understandings relating to the subject
matter hereof.

     7.7  Severability.  The provisions of this Fourth Amendment are severable,
          ------------
and if any clause or provision shall be held invalid or unenforceable in whole
or in part in any jurisdiction, then such invalidity or unenforceability shall
affect only such clause or provision, or part thereof, in such jurisdiction and
shall not in any manner affect such clause or provision in any other
jurisdiction, or any other clause or provision of this Fourth Amendment in any
jurisdiction.

     7.8  Execution in Counterparts.  This Fourth Amendment may be executed in
          -------------------------
any number of counterparts and by different parties hereto in separate
counterparts, each of which when so executed and delivered shall be deemed to be
an original and all of which taken together shall constitute one and the same
instrument. Transmission of signatures by facsimile shall be deemed effective as
if original manually executed counterparts had been delivered.

                            [Signature Page Follows]

                                      -8-
<PAGE>

          IN WITNESS WHEREOF, each of the parties hereto has caused this Fourth
Amendment to the Credit Agreement to be duly executed as of the date first above
written.

                         CHANNELL COMMERCIAL CORPORATION

                         By
                           ----------------------------------------
                              Name:
                              Title:

                         FLEET NATIONAL BANK
                         as Administrative Agent, Issuing Bank and a Lender

                         By
                           ----------------------------------------
                              Name:
                              Title:

                         WELLS FARGO BANK, NATIONAL ASSOCIATION
                         as  a Lender

                         By
                           ----------------------------------------
                         Name:
                         Title:<PAGE>

                                                                   EXHIBIT 10.29

                             EMPLOYMENT AGREEMENT
                             --------------------

     This Employment Agreement (the "Agreement") is entered into by and between
Rose Hills Company (the "Company") and Gregg Williamson ("Executive"), as of the
11/th/ day of May 2001.

I.   EMPLOYMENT.
     ----------

     The Company hereby employs Executive and Executive hereby accepts such
employment, upon the terms and conditions hereinafter set forth.  This Agreement
shall continue in effect without interruption until 12/31/02 or until earlier
termination by its terms (See Article IV).

II.  DUTIES.
     ------

     A.  Executive shall serve during the course of Executive's employment as
Executive Vice-President, Sales and Marketing, and shall have such other duties
and responsibilities, as the President of the Company shall determine from time
to time.

     B.  Executive agrees to devote substantially all of Executive's time,
energy and ability to the business of the Company (which shall include in
addition to items under paragraph II.A, participation in memorial industry trade
association activities).

     C.  For the term of this Agreement, Executive shall report to the Chief
Executive Officer of the Company or designee.

III. COMPENSATION.
     ------------

     A. Base Salary. The Company will pay to Executive a base salary at the rate
        -----------
of $200,000 per year. Such salary shall be earned monthly and shall be payable
in periodic installments no less frequently than monthly in accordance with the
Company's customary practices. Amounts payable shall be reduced by standard
withholding and other authorized deductions. The Company will review Executive's
salary at least annually. The Company may in its discretion increase Executive's
salary but it may not reduce it during the term of this Agreement.

     B. Incentive Compensation. The Company will pay to the Executive the
        ----------------------
following additional compensation as follows:

          1.  Executive shall be paid an annual EBITDA bonus (the "EBITDA
Bonus") based upon the Company's performance in each fiscal year as measured
against EBITDA targets established for the Board. The amount of the Bonus will
be in the range of 4%-20% of the Base Salary. The Board shall determine the
EBITDA targets and corresponding bonus levels annually, in its sole discretion.
For 2001, the bonus, if any, will be prorated based on the percentage derived
from the number of days employed of what the full annual bonus would be, taking
the Company's EBITDA from January 1,
<PAGE>

2001 through December 31, 2001 into account. See Exhibit A for an illustration
of the annual bonus compensation.

          2.  Executive shall be paid an annual sales bonus (the "Sales Bonus ')
based on the on the percent achieved of the annual budget for net pre-need
cemetery and funeral sales. The amount of the Incentive shall range from 16% to
80% base salary. The Board shall determine the sales targets and corresponding
incentive levels annually, in its sole discretion, however for the initial
period of this agreement the targets are as set forth in Exhibit A. The
incentive will be paid monthly. See Exhibit A for an illustration of the
incentive compensation.

     C.  Relocation Allowance.  The Company will pay promptly to Executive, upon
         --------------------
receipt of appropriate documentation as defined in Internal Revenue Service
regulations, all relocation expenses up to $25,000.

     D.  Savings and Retirement Plans. Executive shall be entitled to
         ----------------------------
participate in all savings and retirement plans, practices, policies and
programs applicable generally to other peer executives of the Company.

     E.  Welfare Benefit Plans. Executive and/or his 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
(including, without limitation, medical, prescription, dental, disability,
salary continuance, employee life, group life, accidental death and travel
accident insurance plans and programs) to the extent applicable generally to
other peer executives of the Company.

     F.  Expenses. Executive shall be entitled to receive prompt reimbursement
         --------
for all reasonable employment expenses incurred by him in accordance with the
policies, practices and procedures as in effect generally with respect to other
peer executives of the Company.

     G.  Fringe Benefits. Executive shall be entitled to fringe benefits in
         ---------------
accordance with the plans, practices, programs and policies as in effect
generally with respect to other peer executives of the Company.  In addition,
Executive shall be paid $500 per month automobile allowance.

     H.  Vacation. Executive shall be entitled to take twenty business days
         --------
vacation in each calendar year, which shall be taken at such time as is
consistent with Executive's responsibilities hereunder.

     I.  Modifications in Benefits Plans. The Company reserves the right to
         -------------------------------
modify, suspend or discontinue any and all of the above plans, practices,
policies and programs at any time without recourse by Executive so long as such
action is taken generally with respect to other similarly situated peer
executives and does not single out Executive.

IV.  TERMINATION.
     -----------

     A.  Termination By The Company.
         --------------------------
<PAGE>

          1.  Termination For Cause. The Company may, by providing written
              ---------------------
notice to Executive, terminate Executive's employment hereunder for Cause at any
time. The term "Cause" for purpose of this Agreement shall mean:

                    a.  willful malfeasance or willful misconduct by Executive
                    in connection with his employment; or

                    b.  fraudulent conduct by Executive in connection with the
                    business affairs of the Company, which causes material
                    injury to the Company; or

                    c.  intentional refusal or intentional failure to act in
                    accordance with any lawful and proper direction or order of
                    the President or the Board;

                    d.  any material breach of material duties under this
                    agreement; provided however, that before Executive may be
                    terminated for Cause by virtue of the subparagraph A (1)
                    (d), the Company shall provide to Executive written notice
                    describing the actions or omissions giving rise to such
                    alleged breach with reasonable particularity and giving a
                    reasonable time in which to demonstrate to the Company's
                    reasonable satisfaction that Executive is able to perform in
                    the manner set forth in this Agreement; or

                    e.  theft, embezzlement, or other criminal misappropriation
                    of funds by Executive from the Company; or

                    f.  Executive's conviction of or entrance of a plea of
                    guilty or nolo contendere to a felony.

     If Executive's employment is terminated for Cause, the termination shall
take effect on the effective date of written notice of such termination to
Executive.

     In the event of the termination of Executive's employment hereunder due to
a termination by the Company for Cause, then Executive shall be entitled to
receive a lump sum cash payment equal to the sum of (i) accrued but unpaid Base
Salary as of the date of termination of Executive's employment hereunder and
(ii) accrued vacation. If Executive's employment hereunder is terminated by the
Company for Cause, Executive shall not be entitled to receive any payment,
benefit, or compensation, except as expressly set forth in this paragraph IV. A.
1.
     If the Company attempts to terminate Executive's employment pursuant to
Section IV. A. 1. and it is ultimately determined that the Company lacked Cause,
the provisions of Section IV. A. 2. ("Termination by the Company--Termination
Without Cause") will apply, and the Company shall pay interest on any past due
payments at the
<PAGE>

rate of ten percent (10%) per year from the date on which the applicable payment
would have been made pursuant to Section IV. A. 1.

          2.  Termination Without Cause. The Company may, with or without
              -------------------------
reason, terminate the Period of Employment and Executive's employment hereunder
without Cause at any time, by providing Executive written notice of such
termination. In the event of the termination of the Period of Employment and
Executive's employment hereunder due to a termination by the Company without
Cause (other than due to Executive's death or Permanent Disability), then
Executive shall be entitled to receive a lump sum cash payment equal to the sum
of (i) accrued but unpaid Base Salary as of the date of termination of
Executive's employment hereunder; (ii) Cobra payments by the company for 12
months from the date of termination; and (iii) a cash bonus of $100,000 if such
termination occurs prior to December 31, 2001 and equal to one year's base
salary if such termination occurs for any period thereafter.

          3.  Exclusive Remedy. Executive agrees that the payments contemplated
              ----------------
by this Agreement shall constitute the exclusive and sole remedy for any
termination of his employment and Executive covenants not to assert or pursue
any other remedies, at law or in equity, with respect to any termination of
employment.

     B.  Termination By Executive. Executive shall have the right to terminate
         ------------------------
this Agreement at any time upon 90 days notice to the Company. In the event that
Executive so terminates, he shall be entitled, at the time the termination
becomes effective, to a lump sum payment from the Company (i) in respect of
vacation accrued, but not used; and (ii) for compensation earned under the terms
of paragraph III. A. hereof ("Compensation Payment"), but not paid as of the
effective date of the termination. Said Compensation Payment shall not include
all or any part of any EBITDA or Sales Bonus compensation in respect of the year
in which said termination occurs.

V.   ARBITRATION.
     -----------

     Any controversy arising out of or relating to this Agreement, its
enforcement or interpretation, or because of an alleged breach, default, or
misrepresentation in connection with any of its provisions, or any other
controversy arising out of Executive's employment, including, but not limited
to, any state or federal statutory claims, shall be submitted to arbitration in
Los Angeles County, California, before a sole arbitrator selected from Judicial
Arbitration and Mediation Services, Inc., Los Angeles County, California, or its
successor ("JAMS"), or if JAMS is no longer able to supply the arbitrator, such
arbitrator shall be selected from the American Arbitration Association, and
shall be conducted in accordance with the provisions of California Code of Civil
Procedure (S)(S) 1280 et seq. as the exclusive forum for the resolution of such
                      ------
dispute; provided, however, that provisional injunctive relief may, but need
         --------  -------
not, be sought by either party to this Agreement in a court of law while
arbitration proceedings are pending, and any provisional injunctive relief
granted by such court shall remain effective until the matter is finally
determined by the Arbitrator. Final resolution of any dispute through
arbitration may include any remedy or relief which the Arbitrator deems just and
equitable, including any and all remedies provided by applicable state or
federal statutes.
<PAGE>

At the conclusion of the arbitration, the Arbitrator shall issue a written
decision that sets forth the essential findings and conclusions upon which the
Arbitrator's award or decision is based. Any award or relief granted by the
Arbitrator hereunder shall be final and binding on the parties hereto and may be
enforced by any court of competent jurisdiction. The parties acknowledge and
agree that they are hereby waiving any rights to trial by jury in any action,
proceeding or counterclaim brought by either of the parties against the other in
connection with any matter whatsoever arising out of or in any way connected
with this Agreement or Executive's employment. The parties agree that Company
shall be responsible for payment of the forum costs of any arbitration
hereunder, including the Arbitrator's fee. Executive and Company further agree
that in any proceeding to enforce the terms of this Agreement, the prevailing
party shall be entitled to its or his reasonable attorneys' fees and costs
(other than forum costs associated with the arbitration) incurred by it or him
in connection with resolution of the dispute in addition to any other relief
granted.

VI.    NONCOMPETITION.
       --------------

       A.  Executive agrees that, during the term of this Agreement, he will
not, directly or indirectly, without the prior written consent of the Board of
Directors of the Company, provide consultative service with or without pay, own,
manage, operate, join, control, participate in, or be connected as a
stockholder, partner, or otherwise with, any business, individual, partner,
firm, corporation, or other entity which is then in competition with the
business of the Company or any present affiliate of the Company.

       B.  It is expressly agreed that the Company will or would suffer
irreparable injury if Executive were to compete with the business of the Company
or any subsidiary or affiliate of the Company in violation of this Agreement and
that the Company would by reason of such competition be entitled to injunctive
relief in a court of appropriate jurisdiction. Executive consents and stipulates
to the entry of such injunctive relief in such a court prohibiting him from
competing with the Company or any subsidiary or affiliate of the Company in
violation of this Agreement.

VII.   ANTISOLICITATION.
       ----------------

       Executive promises and agrees that he will not, during his employment and
for a period of one year following termination of his employment he will not
influence or attempt to influence customers of the Company or any of its present
or future subsidiaries or affiliates, either directly or indirectly, to divert
their business to any individual, partnership, firm, corporation or other entity
then in competition with the business of the Company, or any subsidiary or
affiliate of the Company.

VIII.  SOLICITING EMPLOYEES.
       --------------------

       Executive promises and agrees that he will not, during his employment and
for a period of one year following termination of his employment, directly or
indirectly solicit any of the Company employees who earned annually $25,000 or
more as a Company employee during the last six months of his or her own
employment to work for any
<PAGE>

business, individual, partnership, firm, corporation, or other entity then in
competition with the business of the Company or any subsidiary or affiliate of
the Company.

IX.  CONFIDENTIAL INFORMATION.
     ------------------------

     A.  Executive shall hold in a fiduciary capacity for the benefit of the
Company all secret or confidential information, knowledge or data relating to
the Company or any of its affiliated companies, and their respective businesses,
which shall have been obtained by Executive during his employment by the Company
or any of its affiliated companies and which shall not be or become public
knowledge (other than by acts by Executive or his representatives in violation
of this Agreement). After termination of Executive's employment with the
Company, he shall not, without the prior written consent of the Company, or as
may otherwise be required by law or legal process, communicate or divulge any
such information, knowledge or data to anyone other than the Company and those
designated by it.

     B.  Executive agrees that all styles, designs, lists, materials, books,
files, reports, correspondence, records, and other documents ("Company
material") used, prepared, or made available to Executive, shall be and shall
remain the property of the Company. Upon the termination of employment, all
Company materials shall be returned immediately to the Company, and Executive
shall not make or retain any copies thereof.

X.   SUCCESSORS.
     ----------

     A.  This Agreement is personal to Executive and shall not, without the
prior written consent of the Company, be assignable by Executive.

     B.  This Agreement shall inure to the benefit of and be binding upon the
Company and its successors and assigns and any such successor or assignee shall
be deemed substituted for the Company under the terms of this Agreement for all
purposes. As used herein, "successor" and "assignee" shall include any person,
firm, corporation or other business entity which at any time, whether by
purchase, merger or otherwise, directly or indirectly acquires the stock of the
Company or to which the Company assigns this Agreement by operation of law or
otherwise.

XI.  WAIVER.
     ------

     No waiver of any breach of any term or provision of this Agreement shall be
construed to be, nor shall be, a waiver of any other breach of this Agreement.
No waiver shall be binding unless in writing and signed by the party waiving the
breach.

XII. MODIFICATION.
     ------------

     This Agreement may not be amended or modified other than by a written
agreement executed by Executive and the President or his successor.
<PAGE>

XIII.  SAVINGS CLAUSE.
       --------------

       If any provision of this Agreement or the application thereof is held
invalid, the invalidity shall not affect other provisions or applications of the
Agreement which can be given effect without the invalid provisions or
applications and to this end the provisions of this Agreement are declared to be
severable.

XVI.   COMPLETE AGREEMENT.
       ------------------

       This Agreement constitutes and contains the entire agreement and final
understanding concerning Executive's employment with the Company and the other
subject matters addressed herein between the parties.  It is intended by the
parties as a complete and exclusive statement of the terms of their agreement.
It supersedes and replaces all prior negotiations and all agreements proposed or
otherwise, whether written or oral, concerning the subject matter hereof.  Any
representation, promise or agreement not specifically included in this Agreement
shall not be binding upon or enforceable against either party.  This is a fully
integrated agreement.

XIV.   GOVERNING LAW.
       -------------

       This Agreement shall be deemed to have been executed and delivered within
the State of California, and the rights and obligations of the parties hereunder
shall be construed and enforced in accordance with, and governed by, by the laws
of the State of California without regard to principles of conflict of laws.

XV.    COMMUNICATIONS.
       --------------

       All notices, requests, demands and other communications hereunder shall
be in writing and shall be deemed to have been duly given if delivered or if
mailed by registered or certified mail, postage prepaid, addressed to Executive
at: 8101 Pacific Cove Drive, Las Vegas, Nevada 89128 or addressed to the Company
at 3888 S. Workman Road, Whittier, California 90601. Either party may change the
address at which notice shall be given by written notice given in the above
manner.
<PAGE>

XVI. EXECUTION.
     ---------

     This Agreement is being executed in one or more counterparts, each of which
shall be deemed an original, but all of which together shall constitute one and
the same instrument.  Photographic copies of such signed counterparts may be
used in lieu of the originals for any purpose.

     In witness whereof, the parties hereto have executed this Agreement as of
the date first above written.

ROSE HILLS COMPANY

By: /s/ Dennis Poulsen                         /s/ Gregg Williamson
   -----------------------------              --------------------------------
        Dennis Poulsen                              Mr. Gregg Williamson
Its:    Chairman                                    Executive Vice President,
                                                    Sales and Marketing

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