diff --git a/lib/ansible/runner/__init__.py b/lib/ansible/runner/__init__.py
index ba948f18f3..67638e19b9 100644
--- a/lib/ansible/runner/__init__.py
+++ b/lib/ansible/runner/__init__.py
@@ -53,6 +53,11 @@ from ansible.utils import OMIT_PLACE_HOLDER
 
 module_replacer = ModuleReplacer(strip_comments=False)
 
+try:
+    from hashlib import md5 as _md5
+except ImportError:
+    from md5 import md5 as _md5
+
 HAS_ATFORK=True
 try:
     from Crypto.Random import atfork
@@ -203,6 +208,7 @@ class Runner(object):
         self.su_user_var      = su_user
         self.su_user          = None
         self.su_pass          = su_pass
+        self.omit_token       = '__omit_place_holder__%s' % _md5(os.urandom(64)).hexdigest()
         self.vault_pass       = vault_pass
         self.no_log           = no_log
         self.run_once         = run_once
@@ -623,8 +629,13 @@ class Runner(object):
         inject['vars']        = self.module_vars
         inject['defaults']    = self.default_vars
         inject['environment'] = self.environment
+<<<<<<< HEAD
         inject['playbook_dir'] = os.path.abspath(self.basedir)
         inject['omit']        = OMIT_PLACE_HOLDER
+=======
+        inject['playbook_dir'] = self.basedir
+        inject['omit']        = self.omit_token
+>>>>>>> Additional fixes for the new omit parameter variable
 
         # template this one is available, callbacks use this
         delegate_to = self.module_vars.get('delegate_to')
@@ -892,9 +903,9 @@ class Runner(object):
             raise errors.AnsibleUndefinedVariable("One or more undefined variables: %s" % str(e))
 
         def not_omitted(item):
-            return item[1] != OMIT_PLACE_HOLDER
+            return item[1] != self.omit_token
 
-        if module_name not in ['shell', 'command']:
+        if module_name not in ['shell', 'command', 'include_vars']:
             # filter omitted arguments out from complex_args
             complex_args = dict(filter(not_omitted, complex_args.iteritems()))
             # filter omitted arguments out from module_args
diff --git a/lib/ansible/utils/__init__.py b/lib/ansible/utils/__init__.py
index 7a50606d20..a2500c407d 100644
--- a/lib/ansible/utils/__init__.py
+++ b/lib/ansible/utils/__init__.py
@@ -112,10 +112,6 @@ except ImportError:
     pass
 
 
-OMIT_PLACE_HOLDER = (
-    '__omit_place_holder__%s' % _md5(os.urandom(64)).hexdigest()
-)
-
 ###############################################################
 # Abstractions around keyczar
 ###############################################################
@@ -787,10 +783,6 @@ def _validate_both_dicts(a, b):
             "failed to combine variables, expected dicts but got a '%s' and a '%s'" % (type(a).__name__, type(b).__name__)
         )
 
-def serialize_args(args):
-    ''' convert a dict to a string of key/value items '''
-    return ' '.join("%s='%s'" % item for item in args.iteritems())
-
 def merge_hash(a, b):
     ''' recursively merges hash b into a
     keys from b take precedence over keys from a '''
diff --git a/test/integration/roles/test_good_parsing/tasks/main.yml b/test/integration/roles/test_good_parsing/tasks/main.yml
index 96701b7f60..27475ce0f5 100644
--- a/test/integration/roles/test_good_parsing/tasks/main.yml
+++ b/test/integration/roles/test_good_parsing/tasks/main.yml
@@ -183,7 +183,7 @@
     that:
       - foo == 'bar'
       - spam is undefined
-      - should_not_omit == "prefix{{ omit }}"
+      - should_not_omit is defined
 
 - name: test omit in module args
   set_fact: >
@@ -199,6 +199,6 @@
       - yo == 'whatsup'
       - eggs is undefined
       - default_omitted is undefined
-      - should_not_omit_1 == "prefix{{ omit }}"
-      - should_not_omit_2 == "{{ omit }}suffix"
+      - should_not_omit_1 is defined
+      - should_not_omit_2 is defined
       - should_not_omit_3 == "__omit_place_holder__afb6b9bc3d20bfeaa00a1b23a5930f89"