STEWART ENTERPRISES INC
EMPLOYMENT/CHANGE OF CONTROL AGREEMENT
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<TYPE>EX-10.18
<SEQUENCE>5
<FILENAME>buddea5.htm
<DESCRIPTION>EMPLOYMENT/CHANGE OF CONTROL AGREEMENT
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<p ALIGN="CENTER">AMENDMENT NO. 5 TO<br>
EMPLOYMENT AGREEMENT AND<br>
AMENDMENT NO. 4 TO CHANGE OF CONTROL AGREEMENT</p>
<p>&nbsp;&nbsp; </b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
This Amendment No. 5 to Employment Agreement and Amendment No. 4 to Change of
Control Agreement is made as of the 31st day of October, 2000, by and between
Stewart Enterprises, Inc., a Louisiana corporation (the "Company"),
and Kenneth C. Budde (the "Employee").</p>
<b>
<p ALIGN="CENTER">W I T N E S S E T H:</p>
</b>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
WHEREAS, the Company has entered into an Employment Agreement with the Employee
dated as of August 1, 1995, which has been previously amended four times (as
amended, the "Employment Agreement");</p>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
WHEREAS, the Company has entered into a Change of Control Agreement with the
Employee dated as of December 5, 1995, which has been previously amended three
times (as amended, the "Change of Control Agreement"); and</p>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
WHEREAS, the Company and the Employee have agreed to an extension of the terms
of the Employment Agreement and the Change of Control Agreement, as set forth
herein.</p>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
NOW, THEREFORE, for and in consideration of the continued employment of Employee
by the Company and the payment of wages, salary and other compensation to
Employee by the Company, the parties hereto agree as follows, effective
October&nbsp;31, 2000;</p>
<p><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Section 1.&nbsp;&nbsp;&nbsp;&nbsp; </b>Except as expressly amended herein, all
of the terms and provisions of the Employment Agreement and Change of Control
Agreement shall remain in full force and effect.</p>
<p><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Section 2.&nbsp;&nbsp;&nbsp;&nbsp; </b>Article I, Section 2 of the Employment
Agreement is hereby amended to read in its entirety as follows:</p>
<blockquote>
  <blockquote>
    <p><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    Employment Term</b>. The term of this Agreement (the "Employment
    Term") shall commence on the Agreement Date and shall continue through
    October&nbsp;31, 2001, subject to any earlier termination of Employee's
    status as an employee pursuant to this Agreement.</p>
  </blockquote>
</blockquote>
<p><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Section 3.</b>&nbsp;&nbsp;&nbsp;&nbsp; Article II, Section 2.1(a) of the Change of Control Agreement is
hereby amended to read in its entirety as follows:</p>
<blockquote>
  <blockquote>
    <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>2.1 </b>&nbsp;&nbsp;
    <b>Employment Term and Capacity after Change of Control. </b>(a) If a
    Change of Control occurs on or before October 31, 2001, then the Employee's
    employment term (the "Employment Term") shall continue through the
    second anniversary of the Change of Control, subject to any earlier
    termination of Employee's status as an employee pursuant to this
    Agreement.</p>
  </blockquote>
</blockquote>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly
executed and signed as of the date indicated above.</p>
<table border="1" width="100%" bordercolorlight="#FFFFFF" bordercolordark="#FFFFFF" bordercolor="#FFFFFF">
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    <td width="50%" bgcolor="#FFFFFF" bordercolor="#FFFFFF" bordercolorlight="#FFFFFF" bordercolordark="#FFFFFF">&nbsp;</td>
    <td width="50%" bgcolor="#FFFFFF" bordercolor="#FFFFFF" bordercolorlight="#FFFFFF" bordercolordark="#FFFFFF">STEWART ENTERPRISES, INC.
      <p>By:<u>&nbsp; /s/ James W. McFarland&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u><br>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;James W. McFarland<br>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Compensation Committee Chairman</td>
  </tr>
  <tr>
    <td width="50%" bgcolor="#FFFFFF" bordercolor="#FFFFFF" bordercolorlight="#FFFFFF" bordercolordark="#FFFFFF">&nbsp;</td>
    <td width="50%" bgcolor="#FFFFFF" bordercolor="#FFFFFF" bordercolorlight="#FFFFFF" bordercolordark="#FFFFFF">&nbsp;
      <p>EMPLOYEE:</p>
      <p><u>&nbsp; /s/&nbsp;&nbsp; Kenneth C. Budde&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u><br>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Kenneth C.Budde</td>
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