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EXHIBIT
10.2
J OINDER T
O A MENDED A ND R
ESTATED N OTE P
URCHASE A GREEMENT A
ND F INANCE D
OCUMENTS
This JOINDER TO AMENDED AND
RESTATED NOTE PURCHASE AGREEMENT AND FINANCE DOCUMENTS (this
“Joinder”), is dated this 21 st day of December, 2007, by and among
StoneMor Arkansas Subsidiary LLC, an Arkansas limited liability
company, StoneMor California, Inc., a California corporation,
StoneMor California Subsidiary, Inc., a California corporation,
StoneMor Florida Subsidiary LLC, a Florida limited liability
company, StoneMor Hawaii LLC, a Hawaii limited liability company,
StoneMor Hawaii Subsidiary LLC, a Hawaii limited liability company,
StoneMor Iowa LLC, an Iowa limited liability company, StoneMor Iowa
Subsidiary LLC, an Iowa limited liability company, StoneMor Puerto
Rico LLC, a Puerto Rico limited liability company, StoneMor Puerto
Rico Subsidiary LLC, a Puerto Rico limited liability company,
StoneMor South Carolina LLC, a South Carolina limited liability
company, StoneMor South Carolina Subsidiary LLC, a South Carolina
limited liability company and StoneMor Tennessee Subsidiary, Inc.,
a Tennessee corporation, Alderwoods (Ohio) Cemetery Holdings, Inc.,
an Ohio nonprofit corporation, Highland Memorial Park, Inc., an
Ohio nonprofit corporation, Hillside Memorial Park Association,
Inc., an Ohio nonprofit corporation, Northlawn Memorial Gardens, an
Ohio nonprofit corporation and Sierra View Memorial Park, a
California non-profit corporation (each a “ New Issuer
”, and collectively, the “ New Issuers ”),
the other Issuers (as defined below), and the Purchasers (as
defined below).
BACKGROUND
A. Pursuant to that certain
Amended and Restated Note Purchase Agreement entered into on
August 15, 2007, by and among StoneMor GP LLC, a Delaware
limited liability company (the “ General Partner
”), StoneMor Partners L.P., a Delaware limited partnership
(the “ Parent ”), StoneMor Operating LLC, a
Delaware limited liability company (the “ Company
”), the Subsidiaries of the Parent set forth on the signature
pages thereto (together with the Company, the “ Existing
Issuers ” and collectively with the New Issuers, the
“ Issuers ” and together with the General
Partner and the Parent, collectively the “ Credit
Parties ”), and the purchasers of notes issued thereunder
(the “ Purchasers ”) (as so amended, and as
amended, modified or otherwise supplemented from time to time, the
“ Note Purchase Agreement ”), the Purchasers
agreed, inter alia , to purchase $35,000,000 of the Existing
Issuers’ 9.34% Series B Senior Secured Notes due 2012 and to
provide additional credit facilities on a secured basis.
B. Pursuant to the Note
Purchase Agreement and the Finance Documents, the Existing Issuers
have granted to the Collateral Agent, for the benefit of the
Purchasers and other Secured Creditors, a lien on and security
interest in substantially all of their property and assets to
secure all Secured Obligations.
C. The Company and certain of
its subsidiaries (collectively, the “ Buyers ”)
entered into an Asset Purchase and Sale Agreement (the “
Purchase Agreement ”), dated December 4, 2007,
with SCI Funeral Services, Inc., an Iowa corporation, and certain
of its subsidiaries
(collectively, the “
Sellers ”), pursuant to which, as of the closing
thereunder the Buyers will purchase certain cemeteries, funeral
homes and other assets of the Sellers (the “ Acquired
Assets ”) for an aggregate consideration of Sixty-Eight
Million Dollars ($68,000,000), subject to adjustment, as described
and set forth in the Purchase Agreement.
D. Each New Issuer will
benefit, directly and indirectly, from credit and other financial
accommodations extended by the Purchasers to the
Issuers.
Now, therefore, for value
received, and in consideration of the purchase of the Series B
Notes, and other credit accommodations given or to be given to the
Issuers by the Purchasers from time to time, each New Issuer and
each other Credit Party hereby agrees as follows:
1. Except as expressly set
forth herein, all capitalized terms used and not defined herein
shall have the respective meanings ascribed thereto in the Note
Purchase Agreement or the Intercreditor Agreement (as defined in
the Note Purchase Agreement), as applicable.
2. Each Issuer represents and
warrants that the purchase of the Acquired Assets pursuant to the
Purchase Agreement conforms, or will conform at the time of the
related acquisition, in all respects with all the requirements of
the Note Purchase Agreement.
3. Each New Issuer
acknowledges and agrees that it hereby agrees to join as an
“Issuer” under the Note Purchase Agreement, and to
join, in the same capacity as the Existing Issuers, in the Series A
Notes and the Series B Notes, the Intercreditor Agreement, the
Security Agreement, the Pledge Agreement, and the other Security
Documents and Finance Documents.
4. This Joinder is effective
upon the date of the New Issuers’ execution and delivery
hereof to the Purchasers and upon such execution and delivery, all
references in: (a) the Note Purchase Agreement and other
Finance Documents to the terms “Issuer” or
“Issuers”; (b) the Pledge Agreement to the terms
“Pledgor” or “Pledgors”; and (c) the
Security Agreement to the terms “Debtor” and
“Debtors”, shall be deemed to include the New Issuers.
Without limiting the generality of the foregoing, each New Issuer
hereby affirms all grants (including the grant of a lien and
security interest), covenants, agreements, representations, and
warranties (except to the extent expressly relating to an earlier
date) contained in the Note Purchase Agreement, the Pledge
Agreement, and the Security Agreement, as amended hereby, each and
all of which are and shall remain applicable to the Collateral from
time to time owned by the New Issuers or in which any New Issuer
from time to time has any rights. Without limiting the foregoing,
the New Issuers acknowledge that they have granted to Collateral
Agent, for the benefit of the Secured Creditors, a Lien on, among
other things, substantially all of the New Issuers’ property
and assets, constituting Collateral of the New Issuers. Nothing
contained herein, or in the Joinder to Amended and Restated Credit
Agreement and Credit Documents, dated as the date hereof (the
“ Credit Agreement Joinder ”), shall in any
manner impair the priority of the liens and security interests
heretofore granted in favor of Collateral Agent under the Security
Agreement, the Pledge Agreement or any other Credit
Document.
5. The information set forth
on Schedule A hereto shall be added to various Annexes to
the Pledge Agreement and the Security Agreement, and such Annexes
shall be amended thereby, as provided in the Credit Agreement
Joinder.
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6. In connection with the
execution and delivery of this Joinder and the Credit Agreement
Joinder, the Existing Issuers and the New Issuers have delivered to
the Noteholders or the Collateral Agent, as appropriate, such
deliveries as are required by the Note Purchase Agreement,
including, without limitation: (a) certificates representing
the Equity Interest in each New Issuer, together with assignments
in blank (or such other similar deliveries as may be appropriate in
the reasonable discretion of the Required Holders);
(b) allonges joining each New Issuer to each Series A Note and
each Series B Note; (c) a master secretary’s certificate
attaching the organizational documents and authorizing resolutions
for each New Issuer and any other applicable Credit Party;
(d) mortgages, deeds of trust and other real estate related
documentation; (e) the complete executed Purchase Agreement,
certified by the Company; and (f) legal opinions with respect
to the above deliveries.
7. Each New Issuer represents
and warrants that upon becoming an Issuer, such New Issuer, as
applicable, is in compliance in all material respects, with all
representations and warranties, and is and shall be bound by and
agrees to comply with the covenants, contained in the Note Purchase
Agreement and other Finance Documents, and is not in default in the
performance or observation of any covenant or condition under the
Note Purchase Agreement or any Finance Document.
8. Each New Issuer hereby
acknowledges and agrees that the Secured Obligations are secured by
all of its assets constituting Collateral according to, and
otherwise on and subject to, the terms and conditions of the
Security Agreement and the Pledge Agreement to the same extent and
with the same force and effect as if such New Issuer had originally
been one of the Issuers under the Note Purchase Agreement and had
originally executed the same as such an Issuer.
9. Except as specifically
modified hereby, all of the terms and conditions of the Note
Purchase Agreement and other Finance Documents shall remain
unchanged and in full force and effect.
10. Each New Issuer agrees to
execute and deliver such further instruments and documents and do
such further acts and things as the Required Holders, or the
Collateral Agent, may reasonably deem necessary or proper to carry
out more effectively the purposes of this Joinder and the Finance
Documents.
11. No reference to this
Joinder need be made in the Note Purchase Agreement or in any other
Finance Document, and any reference to any Finance Document in any
Finance Document shall be deemed a reference to the Finance
Documents as modified hereby, and to include this Joinder, allonges
and all other documents executed and delivered in connection
herewith.
12. This Joinder shall be
binding upon and inure to the benefit of the parties hereto and
their respective successors and assigns.
13. This Joinder shall be
governed by and construed in accordance with the laws of the State
of New York without reference to the choice of law doctrine of the
State of New York.
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14. This Joinder may be
executed in any number of counterparts with the same affect as if
all of the signatures on such counterparts appeared on one document
and each counterpart shall be deemed an original.
15. Each New Issuer hereby
waives acceptance of this Joinder by any of the Secured
Creditors.
16. The last sentence of
Section 23.1 of the Note Purchase Agreement shall be
applicable to all New Issuers that are Controlled Non-Profits and
nothing contained in this Joinder is intended to modify the
limitations set forth in such last sentence with respect to the
liability of such New Issuers or the Obligations secured by the
Collateral of such New Issuers.
[Remainder of page
intentionally left blank]
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This Joinder to Amended and
Restated Note Purchase Agreement and Finance Documents is hereby
delivered, acknowledged and agreed to as of the date first above
written.
New Issuers
StoneMor Arkansas Subsidiary
LLC
StoneMor California, Inc.
StoneMor California Subsidiary,
Inc.
StoneMor Florida Subsidiary
LLC
StoneMor Hawaii LLC
StoneMor Hawaii Subsidiary
LLC
StoneMor Iowa LLC
StoneMor Iowa Subsidiary LLC
StoneMor Puerto Rico LLC
StoneMor Puerto Rico Subsidiary
LLC
StoneMor South Carolina LLC
StoneMor South Carolina Subsidiary
LLC
StoneMor Tennessee Subsidiary,
Inc.
Alderwoods (Ohio) Cemetery Holdings,
Inc.
Highland Memorial Park, Inc.
Hillside Memorial Park Association,
Inc.
Northlawn Memorial Gardens
Sierra View Memorial Park
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/s/ Paul Waimberg
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Paul Waimberg, as Vice President of
Finance
for each of the above-named New
Issuers
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| Credit Parties |
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STONEMOR GP LLC |
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By: |
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/s/ Paul Waimberg
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Paul Waimberg, Vice President and Assistant
Secretary |
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STONEMOR PARTNERS L.P. |
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By: |
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STONEMOR GP LLC |
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its General Partner |
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By: |
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/s/ Paul Waimberg
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Paul Waimberg, Vice President and Assistant
Secretary |
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STONEMOR OPERATING LLC |
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By: |
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/s/ Paul Waimberg
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