<SEC-DOCUMENT>0001016281-13-000081.txt : 20130731
<SEC-HEADER>0001016281-13-000081.hdr.sgml : 20130731
<ACCEPTANCE-DATETIME>20130731171455
ACCESSION NUMBER:		0001016281-13-000081
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20130731
ITEM INFORMATION:		Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20130731
DATE AS OF CHANGE:		20130731

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			CARRIAGE SERVICES INC
		CENTRAL INDEX KEY:			0001016281
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-PERSONAL SERVICES [7200]
		IRS NUMBER:				760423828
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-11961
		FILM NUMBER:		13999909

	BUSINESS ADDRESS:	
		STREET 1:		3040 POST OAK BOULEVARD
		STREET 2:		SUITE 300
		CITY:			HOUSTON
		STATE:			TX
		ZIP:			77056
		BUSINESS PHONE:		713-332-8475

	MAIL ADDRESS:	
		STREET 1:		3040 POST OAK BOULEVARD
		STREET 2:		SUITE 300
		CITY:			HOUSTON
		STATE:			TX
		ZIP:			77056
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>departureofofficer-skipklug.htm
<DESCRIPTION>8-K
<TEXT>
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		<title>Departure of Officer - Skip Klug</title>
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<a name="s51e35df339c34338ac8f9806a48fe78a"></a><div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div></div><br><div style="line-height:120%;font-size:10pt;"><div style="padding-left:0px;text-indent:0px;line-height:normal;padding-top:10px;"><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman;font-size:10pt;width:100%;border-collapse:collapse;text-align:left;"><tr><td colspan="5"></td></tr><tr><td width="32%"></td><td width="3%"></td><td width="31%"></td><td width="3%"></td><td width="31%"></td></tr><tr><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;height:5px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;height:5px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;height:5px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;height:5px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;height:5px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td></tr></table></div></div><div style="line-height:120%;padding-top:4px;text-align:center;font-size:18pt;"><font style="font-family:inherit;font-size:18pt;font-weight:bold;">UNITED STATES</font></div><div style="line-height:120%;text-align:center;font-size:18pt;"><font style="font-family:inherit;font-size:18pt;font-weight:bold;">SECURITIES AND EXCHANGE COMMISSION</font></div><div style="line-height:120%;text-align:center;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Washington, D.C. 20549</font></div><div style="line-height:120%;font-size:10pt;"><div style="padding-left:0px;text-indent:0px;line-height:normal;padding-top:10px;"><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman;font-size:10pt;width:100%;border-collapse:collapse;text-align:left;"><tr><td colspan="5"></td></tr><tr><td width="32%"></td><td width="3%"></td><td width="31%"></td><td width="3%"></td><td width="31%"></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;height:5px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;height:5px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;height:5px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;height:5px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;height:5px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td></tr></table></div></div><div style="line-height:120%;padding-top:6px;text-align:center;font-size:18pt;"><font style="font-family:inherit;font-size:18pt;font-weight:bold;">FORM 8-K</font></div><div style="line-height:120%;padding-top:5px;text-align:center;font-size:10pt;"><div style="padding-left:0px;text-indent:0px;line-height:normal;padding-top:10px;"><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman;font-size:10pt;margin-left:auto;margin-right:auto;width:100%;border-collapse:collapse;text-align:left;"><tr><td colspan="5"></td></tr><tr><td width="32%"></td><td width="3%"></td><td width="31%"></td><td width="3%"></td><td width="31%"></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;height:5px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;height:5px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;height:5px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;height:5px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;height:5px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td></tr></table></div></div><div style="line-height:120%;padding-top:6px;text-align:center;font-size:14pt;"><font style="font-family:inherit;font-size:14pt;font-weight:bold;">CURRENT REPORT</font></div><div style="line-height:120%;padding-top:12px;text-align:center;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Pursuant to Section&#160;13 or 15(d) of the</font></div><div style="line-height:120%;text-align:center;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Securities Exchange Act of 1934</font></div><div style="line-height:120%;padding-top:12px;text-align:center;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Date of Report (Date of earliest event reported): July 30, 2013</font></div><div style="line-height:120%;padding-top:5px;text-align:center;font-size:10pt;"><div style="padding-left:0px;text-indent:0px;line-height:normal;padding-top:10px;"><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman;font-size:10pt;margin-left:auto;margin-right:auto;width:100%;border-collapse:collapse;text-align:left;"><tr><td colspan="5"></td></tr><tr><td width="32%"></td><td width="3%"></td><td width="31%"></td><td width="3%"></td><td width="31%"></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;height:5px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;height:5px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;height:5px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;height:5px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;height:5px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td></tr></table></div></div><div style="line-height:120%;padding-top:6px;text-align:center;font-size:24pt;"><font style="font-family:inherit;font-size:24pt;font-weight:bold;">Carriage Services, Inc.</font></div><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">(Exact name of registrant as specified in is charter)</font></div><div style="line-height:120%;padding-top:5px;text-align:center;font-size:10pt;"><div style="padding-left:0px;text-indent:0px;line-height:normal;padding-top:10px;"><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman;font-size:10pt;margin-left:auto;margin-right:auto;width:100%;border-collapse:collapse;text-align:left;"><tr><td colspan="5"></td></tr><tr><td width="32%"></td><td width="3%"></td><td width="31%"></td><td width="3%"></td><td width="31%"></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;height:5px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td 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style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;height:9px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;height:9px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;height:9px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td></tr><tr><td style="vertical-align:top;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Delaware</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:left;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;">&#160;</font></div></td><td style="vertical-align:top;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">1-11961</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:left;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;">&#160;</font></div></td><td style="vertical-align:top;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">76-0423828</font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:center;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;font-weight:bold;">(State or other jurisdiction</font></div><div style="text-align:center;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;font-weight:bold;">of incorporation)</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:left;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:center;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;font-weight:bold;">(Commission</font></div><div style="text-align:center;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;font-weight:bold;">File Number)</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:left;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:center;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;font-weight:bold;">(IRS Employer</font></div><div style="text-align:center;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;font-weight:bold;">Identification No.)</font></div></td></tr></table></div></div><div style="line-height:120%;padding-top:12px;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">3040 Post Oak Boulevard, Suite 300</font></div><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Houston, Texas 77056</font></div><div style="line-height:120%;text-align:center;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;font-weight:bold;">(Address, including zip code, of principal executive offices)</font></div><div style="line-height:120%;padding-top:12px;text-align:center;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;font-weight:bold;">Registrant&#8217;s telephone number, including area code: (713) 332-8400</font></div><div style="line-height:120%;padding-top:5px;text-align:center;font-size:10pt;"><div style="padding-left:0px;text-indent:0px;line-height:normal;padding-top:10px;"><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman;font-size:10pt;margin-left:auto;margin-right:auto;width:100%;border-collapse:collapse;text-align:left;"><tr><td colspan="5"></td></tr><tr><td width="32%"></td><td width="3%"></td><td width="31%"></td><td width="3%"></td><td width="31%"></td></tr><tr><td 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style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</font></div></td></tr></table><div style="line-height:120%;text-align:justify;padding-left:24px;text-indent:-24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:24px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:10pt;padding-left:0px;"><font style="font-family:Wingdings;font-size:10pt;">&#168;</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</font></div></td></tr></table><div style="line-height:120%;text-align:justify;padding-left:24px;text-indent:-24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:24px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:10pt;padding-left:0px;"><font style="font-family:Wingdings;font-size:10pt;">&#168;</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</font></div></td></tr></table><div style="line-height:120%;text-align:justify;padding-left:24px;text-indent:-24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:24px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:10pt;padding-left:0px;"><font style="font-family:Wingdings;font-size:10pt;">&#168;</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</font></div></td></tr></table><div style="line-height:120%;font-size:10pt;"><div style="padding-left:0px;text-indent:0px;line-height:normal;padding-top:10px;"><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman;font-size:10pt;width:100%;border-collapse:collapse;text-align:left;"><tr><td colspan="5"></td></tr><tr><td width="32%"></td><td width="3%"></td><td width="31%"></td><td width="3%"></td><td width="31%"></td></tr><tr><td style="vertical-align:bottom;border-bottom:1px solid 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Certain Officers; Election of Directors; Appointment of Certain</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">&#32;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Officers; Compensatory Arrangements of Certain Officers</font><font style="font-family:inherit;font-size:10pt;">.</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div><div style="line-height:120%;padding-bottom:13px;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">On July 30, 2013, George J. Klug, Senior Vice President and Chief Information Officer of Carriage Services, Inc. (the &#8220;Company&#8221;), informed the management of the Company of his intent to retire from the Company effective as of August 9, 2013 (the &#8220;Separation Date&#8221;).  On July 31, 2013, Mr. Klug and the Company entered into a Separation and Consulting Agreement and General Release (the &#8220;Separation Agreement&#8221;), pursuant to which Mr. Klug will continue to provide services to the Company on a full-time basis and be paid his annualized base salary of $240,000 through the Separation Date.  Following the Separation Date, in exchange for a general release of claims from Mr. Klug and subject to Mr. Klug's compliance with the terms of the Separation Agreement, the Company agreed to (1) cause (a)&#160;Mr. Klug's outstanding options to purchase 22,288 shares of the Company's common stock to become immediately fully vested and exercisable and (b) 10,329 shares of restricted stock held by Mr. Klug to become fully vested, (2) reimburse Mr. Klug on a monthly basis for a portion of the premiums he pays to continue group health plan coverage under the Company's group health plan for himself and his spouse and eligible dependents (the &#8220;Monthly Premium Subsidy&#8221;) until the earlier of 18 months following the Separation Date or the date Mr. Klug becomes eligible for reasonably similar group health coverage from another employer, and (3)&#160;pay Mr. Klug an amount equal to six months' worth of the Monthly Premium Subsidy in a lump sum cash payment on January 15, 2014.  The Separation Agreement also provides that, following the Separation Date, Mr. Klug will provide, when reasonably requested by the Company, consulting services to the Company with regard to the Company's information technology and related services for a period of up to two years following the Separation Date.  In exchange for providing such services and for making himself available to do so, the Company will pay Mr. Klug a consulting fee equal to $10,000 per complete calendar month. </font></div><div style="line-height:120%;padding-bottom:13px;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The foregoing is only a summary of the material terms of the Separation Agreement, does not purport to be a complete description of the rights and obligations of the parties thereunder and is qualified in its entirety by reference to the full text of the Separation Agreement, a copy of which is filed as Exhibit 10.1 to this Current Report on Form 8-K and is incorporated herein by reference.</font></div><div style="line-height:120%;padding-bottom:13px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div><div style="line-height:120%;padding-bottom:16px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Item 9.01 </font><font style="font-family:inherit;font-size:10pt;">&#160;&#160;&#160;&#160;</font><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Financial Statements and Exhibits.</font></div><div style="line-height:120%;text-align:justify;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"></font><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">(d) Exhibits</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div><div style="line-height:120%;text-align:center;font-size:10pt;"><div style="padding-left:0px;text-indent:0px;line-height:normal;padding-top:10px;"><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman;font-size:10pt;margin-left:auto;margin-right:auto;width:94.7265625%;border-collapse:collapse;text-align:left;"><tr><td colspan="3"></td></tr><tr><td width="15%"></td><td width="4%"></td><td width="81%"></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Exhibit No.</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Description of Exhibit</font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;height:12px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;height:12px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;height:12px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">10.1</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Separation and Consulting Agreement and General Release, dated July 31, 2013, by and between the Company and George J. 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style="overflow:hidden;height:20px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;height:20px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:left;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;font-size:10pt;"><font 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style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;height:20px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;height:20px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td></tr><tr><td style="vertical-align:top;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Dated: July 31, 2013</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:left;font-size:8pt;"><font 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solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">/s/ Melvin C. Payne</font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:left;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:left;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:left;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;">&#160;</font></div></td><td style="vertical-align:top;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Melvin C. Payne</font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:left;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:left;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:left;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Chairman of the Board and Chief Executive Officer</font></div></td></tr></table></div></div><br><div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div></div><hr style="page-break-after:always"><a name="s51e35df339c34338ac8f9806a48fe78a"></a><div><div style="line-height:120%;font-size:10pt;"><font 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style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;height:12px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;height:12px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">10.1</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Separation and Consulting Agreement and General Release, dated July 31, 2013, by and between the Company and George J. Klug.</font></div></td></tr></table></div></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div><br><div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div></div>	</body>
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<TYPE>EX-10.1
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<FILENAME>a101departureofofficer-ski.htm
<DESCRIPTION>EXHIBIT
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		<title>10.1 Departure of Officer - Skip Klug</title>
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<a name="sfe438f77444f414f98c11dfb0c3dd749"></a><div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div></div><br><div style="line-height:120%;text-align:center;font-size:12.2pt;"><font style="font-family:inherit;font-size:12.2pt;font-weight:bold;">SEPARATION AND CONSULTING AGREEMENT AND GENERAL RELEASE</font></div><div style="line-height:120%;text-align:center;font-size:12.2pt;"><font style="font-family:inherit;font-size:12.2pt;"><br></font></div><div style="line-height:120%;text-align:justify;text-indent:48px;font-size:12.2pt;"><font style="font-family:inherit;font-size:12.2pt;"><br></font></div><div style="line-height:120%;padding-bottom:16px;text-align:justify;text-indent:48px;font-size:12.2pt;"><font style="font-family:inherit;font-size:12.2pt;">This</font><font style="font-family:inherit;font-size:12.2pt;font-weight:bold;">&#32;</font><font style="font-family:inherit;font-size:12.2pt;">SEPARATION AND CONSULTING AGREEMENT AND GENERAL RELEASE (this &#8220;</font><font style="font-family:inherit;font-size:12.2pt;font-style:italic;font-weight:bold;">Agreement</font><font style="font-family:inherit;font-size:12.2pt;">&#8221;) is entered into by and between Carriage Services, Inc. (the </font><font style="font-family:inherit;font-size:12.2pt;font-style:italic;font-weight:bold;">&#8220;Company</font><font style="font-family:inherit;font-size:12.2pt;">&#8221;), and George J. Klug</font><font style="font-family:inherit;font-size:12.2pt;font-weight:bold;">&#32;</font><font style="font-family:inherit;font-size:12.2pt;">(&#8220;</font><font style="font-family:inherit;font-size:12.2pt;font-style:italic;font-weight:bold;">Klug</font><font style="font-family:inherit;font-size:12.2pt;">&#8221;).   The Company and Klug are each referred to herein individually as a &#8220;</font><font style="font-family:inherit;font-size:12.2pt;font-style:italic;font-weight:bold;">Party</font><font style="font-family:inherit;font-size:12.2pt;">&#8221; and collectively as the &#8220;</font><font style="font-family:inherit;font-size:12.2pt;font-style:italic;font-weight:bold;">Parties</font><font style="font-family:inherit;font-size:12.2pt;">&#8221;.</font></div><div style="line-height:120%;padding-bottom:16px;text-align:justify;text-indent:48px;font-size:12.2pt;"><font style="font-family:inherit;font-size:12.2pt;">WHEREAS, Klug and the Company are parties to that certain Second Amended and Restated Employment Agreement effective as of March 14, 2012 (the &#8220;</font><font style="font-family:inherit;font-size:12.2pt;font-style:italic;font-weight:bold;text-decoration:underline;">Employment Agreement</font><font style="font-family:inherit;font-size:12.2pt;">&#8221;); </font></div><div style="line-height:120%;padding-bottom:16px;text-align:justify;text-indent:48px;font-size:12.2pt;"><font style="font-family:inherit;font-size:12.2pt;">WHEREAS, Klug wishes to resign from his employment with the Company, effective as of the Separation Date (as defined below); </font></div><div style="line-height:120%;padding-bottom:16px;text-align:justify;text-indent:48px;font-size:12.2pt;"><font style="font-family:inherit;font-size:12.2pt;">WHEREAS, the Parties wish for Klug to receive certain separation benefits from the Company, which such benefits are conditioned upon Klug's entry into (and non-revocation of) this Agreement; and</font></div><div style="line-height:120%;padding-bottom:16px;text-align:justify;text-indent:48px;font-size:12.2pt;"><font style="font-family:inherit;font-size:12.2pt;">WHEREAS, the Company and Klug wish for Klug to provide certain consulting services to the Company after the Separation Date, and Klug wishes to provide, and be available to provide, services as a consultant to the Company after the Separation Date.</font></div><div style="line-height:120%;padding-bottom:16px;text-align:justify;text-indent:48px;font-size:12.2pt;"><font style="font-family:inherit;font-size:12.2pt;">NOW, THEREFORE, in consideration of the promises and benefits set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the Parties, the Parties agree as follows:</font></div><div style="line-height:120%;text-align:justify;text-indent:48px;font-size:12.2pt;"><font style="font-family:inherit;font-size:12.2pt;"></font><font style="font-family:inherit;font-size:12.2pt;font-weight:bold;">1.</font><font style="font-family:inherit;font-size:12.2pt;">&#160;&#160;&#160;&#160;</font><font style="font-family:inherit;font-size:12.2pt;font-weight:bold;">Separation from Employment</font><font style="font-family:inherit;font-size:12.2pt;font-style:italic;font-weight:bold;">.  </font><font style="font-family:inherit;font-size:12.2pt;">The Parties acknowledge and agree that the last day of Klug's employment with the Company will be August 9, 2013 (the &#8220;</font><font style="font-family:inherit;font-size:12.2pt;font-style:italic;font-weight:bold;">Separation Date</font><font style="font-family:inherit;font-size:12.2pt;">&#8221;) and that Klug's employment will end on the Separation Date due to his voluntary resignation from the Company and not during a Corporate Change Period (as defined in the Employment Agreement).  Until the Separation Date, Klug shall: </font></div><div style="line-height:120%;text-align:justify;font-size:12.2pt;"><font style="font-family:inherit;font-size:12.2pt;"><br></font></div><div style="line-height:120%;text-align:justify;padding-left:48px;text-indent:48px;font-size:12.2pt;"><font style="font-family:inherit;font-size:12.2pt;">(a)</font><font style="font-family:inherit;font-size:12.2pt;">&#160;&#160;&#160;&#160;</font><font style="font-family:inherit;font-size:12.2pt;">continue to be paid his annualized base salary of $240,000 (less applicable taxes and other withholdings) which shall be paid in biweekly installments in accordance with the Company's regular payroll practices; and</font></div><div style="line-height:120%;text-align:justify;padding-left:48px;text-indent:48px;font-size:12.2pt;"><font style="font-family:inherit;font-size:12.2pt;"><br></font></div><div style="line-height:120%;text-align:justify;padding-left:48px;text-indent:48px;font-size:12.2pt;"><font style="font-family:inherit;font-size:12.2pt;">(b)</font><font style="font-family:inherit;font-size:12.2pt;">&#160;&#160;&#160;&#160;</font><font style="font-family:inherit;font-size:12.2pt;">continue to provide services to the Company on a full-time basis and shall assist with the selection and recruitment of a new IT senior leader and the transition of Klug's role and responsibilities to his replacement.</font></div><div style="line-height:120%;text-align:justify;font-size:12.2pt;"><font style="font-family:inherit;font-size:12.2pt;"><br></font></div><div style="line-height:120%;text-align:justify;text-indent:48px;font-size:12.2pt;"><font style="font-family:inherit;font-size:12.2pt;"></font><font style="font-family:inherit;font-size:12.2pt;font-weight:bold;">2.</font><font style="font-family:inherit;font-size:12.2pt;">&#160;&#160;&#160;&#160;</font><font style="font-family:inherit;font-size:12.2pt;font-weight:bold;">Separation Benefits.</font><font style="font-family:inherit;font-size:12.2pt;font-style:italic;font-weight:bold;">&#32;&#32;</font><font style="font-family:inherit;font-size:12.2pt;">If Klug returns a copy of this Agreement that has been executed by him to the Company at any time before 12:00 p.m. Houston, Texas time on August 30, 2013, then, provided that Klug satisfies the other terms and conditions set forth in this Agreement, the Company will:</font></div><div style="line-height:120%;text-align:justify;text-indent:48px;font-size:12.2pt;"><font style="font-family:inherit;font-size:12.2pt;"><br></font></div><div style="line-height:120%;text-align:justify;padding-left:48px;text-indent:48px;font-size:12.2pt;"><font style="font-family:inherit;font-size:12.2pt;">(a)</font><font style="font-family:inherit;font-size:12.2pt;">&#160;&#160;&#160;&#160;</font><font style="font-family:inherit;font-size:12.2pt;">On the 20</font><font style="font-family:inherit;font-size:12.2pt;"><sup style="vertical-align:top;line-height:120%;font-size:pt">th</sup></font><font style="font-family:inherit;font-size:12.2pt;">&#32;day following Klug's return of this Agreement, provided that Klug has not revoked his delivery of this Agreement in accordance with Section 17, cause all outstanding unvested stock options and restricted stock awards granted to Klug under the </font></div><br><div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div></div><hr style="page-break-after:always"><a name="sfe438f77444f414f98c11dfb0c3dd749"></a><div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div></div><br><div style="line-height:120%;text-align:justify;padding-left:48px;font-size:12.2pt;"><font style="font-family:inherit;font-size:12.2pt;">Carriage Services, Inc. Second Amended and Restated 2006 Long-Term Incentive Plan (the &#8220;</font><font style="font-family:inherit;font-size:12.2pt;font-style:italic;font-weight:bold;">LTIP</font><font style="font-family:inherit;font-size:12.2pt;">&#8221;) pursuant to the award agreements that are identified on Exhibit&#160;B attached hereto (collectively, the </font><font style="font-family:inherit;font-size:12.2pt;font-style:italic;font-weight:bold;">&#8220;Specified </font><font style="font-family:inherit;font-size:12.2pt;font-style:italic;font-weight:bold;text-decoration:underline;">Award Agreements</font><font style="font-family:inherit;font-size:12.2pt;font-style:italic;font-weight:bold;">&#8221;</font><font style="font-family:inherit;font-size:12.2pt;">) to become fully vested and such stock options to remain exercisable for the remainder of their full term; and</font></div><div style="line-height:120%;text-align:justify;padding-left:144px;text-indent:-48px;font-size:12.2pt;"><font style="font-family:inherit;font-size:12.2pt;"><br></font></div><div style="line-height:120%;text-align:justify;padding-left:48px;text-indent:48px;font-size:12.2pt;"><font style="font-family:inherit;font-size:12.2pt;">(b)</font><font style="font-family:inherit;font-size:12.2pt;">&#160;&#160;&#160;&#160;</font><font style="font-family:inherit;font-size:12.2pt;">Reimburse Klug for up to 18 months following the Separation Date an amount equal to the difference between the monthly premium amounts that Klug is required to pay in order to obtain group health plan continuation coverage provisions of Section 4980 of the Internal Revenue Code of 1986, as amended (and the regulations promulgated thereunder), or Part 6 of Subtitle B of Title I of the Employee Retirement Income Security Act of 1974, as amended (&#8220;</font><font style="font-family:inherit;font-size:12.2pt;font-style:italic;font-weight:bold;">COBRA</font><font style="font-family:inherit;font-size:12.2pt;">&#8221;), for himself and his spouse and eligible dependents, if any, and the monthly amount Klug pays for such coverage as of the Separation Date (the&#160;&#8220;</font><font style="font-family:inherit;font-size:12.2pt;font-style:italic;font-weight:bold;">Monthly COBRA Premium Subsidy</font><font style="font-family:inherit;font-size:12.2pt;">&#8221;), provided: (i) Klug makes the appropriate timely written election, pursuant to COBRA, to effect and continue such coverage under the Company's group health plans; (ii) Klug is otherwise qualified to elect and receive continuation coverage under the terms of said group health plans; and (iii) said group health plans continue in effect.  The Company's obligations under this Section 2(b) will cease if and when Klug accepts full-time employment with another employer and becomes eligible for reasonably similar group health coverage from such employer.  Klug agrees and understands that the payment of any premiums due with respect to such continuation coverage will remain Klug's sole responsibility, and the Company will assume no obligation for payment of any such premium relating to continuation coverage under said group health plan; and</font></div><div style="line-height:120%;text-align:justify;padding-left:48px;text-indent:48px;font-size:12.2pt;"><font style="font-family:inherit;font-size:12.2pt;"><br></font></div><div style="line-height:120%;text-align:justify;padding-left:48px;text-indent:48px;font-size:12.2pt;"><font style="font-family:inherit;font-size:12.2pt;">(c)</font><font style="font-family:inherit;font-size:12.2pt;">&#160;&#160;&#160;&#160;</font><font style="font-family:inherit;font-size:12.2pt;">Pay to Klug an amount equal to six months' worth of the Monthly COBRA Premium Subsidy (less applicable taxes and other withholdings), which amount shall be paid to Klug in a lump sum cash payment on January 15, 2014.</font></div><div style="line-height:120%;text-align:justify;font-size:12.2pt;"><font style="font-family:inherit;font-size:12.2pt;"><br></font></div><div style="line-height:120%;text-align:justify;text-indent:48px;font-size:12.2pt;"><font style="font-family:inherit;font-size:12.2pt;font-weight:bold;">3.</font><font style="font-family:inherit;font-size:12.2pt;">&#160;&#160;&#160;&#160;</font><font style="font-family:inherit;font-size:12.2pt;font-weight:bold;">Satisfaction of All Leaves and Payment Amounts; Prior Rights and Obligations.  </font><font style="font-family:inherit;font-size:12.2pt;">In entering into this Agreement, Klug expressly acknowledges and agrees that Klug has received all leaves (paid and unpaid) to which Klug has been entitled during Klug's employment and, as of the date that Klug executes this Agreement, Klug has received all wages and been paid all sums that Klug is owed by the Company and its affiliates (which does not include any future sums that may be owed pursuant to Sections 1 or 2 above).  Klug further acknowledges and agrees that, with the exception of any amounts owed to him pursuant to this Agreement, he has no entitlement to any further sums from the Company or its affiliates, including, but not limited to, any bonuses or other payments.  This Agreement extinguishes all rights, if any, that Klug may have, contractual or otherwise, relating to or arising out of the Employment Agreement, as Klug acknowledges that, in entering this Agreement, all of the Company's obligations thereunder are deemed satisfied in full.  In entering into this Agreement, Klug expressly acknowledges, agrees and represents that the awards granted to Klug pursuant to the Specified Award Agreements represent the entirety of the outstanding equity awards that Klug holds pursuant to the LTIP or any predecessor equity compensation plan of the Company.  </font></div><div style="line-height:120%;text-align:justify;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div><div style="line-height:120%;text-align:justify;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div><br><div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div></div><hr style="page-break-after:always"><a name="sfe438f77444f414f98c11dfb0c3dd749"></a><div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div></div><br><div style="line-height:120%;text-align:justify;text-indent:48px;font-size:12.2pt;"><font style="font-family:inherit;font-size:12.2pt;font-weight:bold;">4.</font><font style="font-family:inherit;font-size:12.2pt;">&#160;&#160;&#160;&#160;</font><font style="font-family:inherit;font-size:12.2pt;font-weight:bold;">Release of Liability for Claims.  </font></div><div style="line-height:120%;text-align:justify;text-indent:48px;font-size:12.2pt;"><font style="font-family:inherit;font-size:12.2pt;"><br></font></div><div style="line-height:120%;text-align:justify;text-indent:48px;font-size:12.2pt;"><font style="font-family:inherit;font-size:12.2pt;">(a)</font><font style="font-family:inherit;font-size:12.2pt;">&#160;&#160;&#160;&#160;</font><font style="font-family:inherit;font-size:12.2pt;">For good and valuable consideration, including the Company's agreement to provide the consideration set forth in Section&#160;2 of this Agreement, Klug hereby releases, discharges and forever acquits the Company, its affiliates and their respective past, present and future subsidiaries, affiliates, stockholders, members, partners, directors, officers, managers, employees, agents, attorneys, heirs, successors and representatives, in their personal and representative capacities as well as all employee benefit plans maintained by the Company or any of its affiliates or subsidiaries and all fiduciaries and administrators of any such plans, in their personal and representative capacities (collectively, the &#8220;</font><font style="font-family:inherit;font-size:12.2pt;font-style:italic;font-weight:bold;">Company Parties</font><font style="font-family:inherit;font-size:12.2pt;">&#8221;), from liability for, and hereby waives, any and all claims, damages, or causes of action of any kind that Klug has, or could have, whether known or unknown, related to Klug's employment with any Company Party, the termination of such employment, and any other acts or omissions related to any matter on or prior to the date that Klug executes this Agreement, including, without limitation, any alleged violation through such date of: (i) the Age Discrimination in Employment Act of 1967, as amended (including as amended by the Older Workers Benefit Protection Act); (ii)&#160;Title VII of the Civil Rights Act of 1964, as amended; (iii)&#160;the Civil Rights Act of 1991; (iv)&#160;Sections 1981 through 1988 of Title 42 of the United States Code, as amended; (v)&#160;the Employee Retirement Income Security Act of 1974, as amended (&#8220;</font><font style="font-family:inherit;font-size:12.2pt;font-style:italic;font-weight:bold;">ERISA</font><font style="font-family:inherit;font-size:12.2pt;">&#8221;); (vi)&#160;the Immigration Reform Control Act, as amended; (vii)&#160;the Americans with Disabilities Act of 1990, as amended; (viii)&#160;the National Labor Relations Act, as amended; (ix)&#160;the Occupational Safety and Health Act, as amended; (x)&#160;the Family and Medical Leave Act of 1993; (xii)&#160;any federal, state or local anti-discrimination or anti-retaliation law; (xiii)&#160;any federal, state or local wage and hour law; (xiv)&#160;any other local, state or federal law, regulation or ordinance; (xv)&#160;any public policy, contract, tort, or common law claim; (xvi)&#160;any allegation for costs, fees, or other expenses including attorneys' fees incurred in or with respect to a Released Claim (as defined below); (xvii)&#160;any and all rights, benefits or claims Klug may have under any employment contract (including, without limitation, the Employment Agreement), incentive compensation plan or equity-based plan with any Company Party or to any ownership interest in any Company Party except as expressly provided in this Agreement or the Specified Award Agreements; and (xviii)&#160;any claim for compensation or benefits of any kind not expressly set forth in this Agreement (collectively, the </font><font style="font-family:inherit;font-size:12.2pt;font-style:italic;font-weight:bold;">&#8220;Released Claims&#8221;</font><font style="font-family:inherit;font-size:12.2pt;">).  </font></div><div style="line-height:120%;text-align:justify;text-indent:48px;font-size:12.2pt;"><font style="font-family:inherit;font-size:12.2pt;"><br></font></div><div style="line-height:120%;text-align:justify;text-indent:48px;font-size:12.2pt;"><font style="font-family:inherit;font-size:12.2pt;">(b)</font><font style="font-family:inherit;font-size:12.2pt;">&#160;&#160;&#160;&#160;</font><font style="font-family:inherit;font-size:12.2pt;">In no event shall the Released Claims include any claim which arises after the date that Klug signs this Agreement or any claim to vested benefits under an employee benefit plan of the Company that is subject to ERISA.  Further notwithstanding this release of liability, nothing in this Agreement prevents Klug from filing any non-legally waivable claim (including a challenge to the validity of this Agreement) with the Equal Employment Opportunity Commission (</font><font style="font-family:inherit;font-size:12.2pt;font-style:italic;font-weight:bold;">&#8220;EEOC&#8221;</font><font style="font-family:inherit;font-size:12.2pt;">)</font><font style="font-family:inherit;font-size:12.2pt;font-style:italic;font-weight:bold;">&#32;</font><font style="font-family:inherit;font-size:12.2pt;">or comparable state or local agency or participating in any investigation or proceeding conducted by the EEOC or comparable state or local agency; however, Klug understands and agrees that Klug is waiving any and all rights to recover any monetary or personal relief or recover as a result of such EEOC or comparable state or local agency or proceeding or subsequent legal actions.</font><font style="font-family:inherit;font-size:12.2pt;font-weight:bold;">&#32;THIS RELEASE INCLUDES MATTERS ATTRIBUTABLE TO THE SOLE OR PARTIAL NEGLIGENCE (WHETHER GROSS OR SIMPLE) OR OTHER FAULT, INCLUDING STRICT LIABILITY, OF ANY OF THE COMPANY PARTIES</font><font style="font-family:inherit;font-size:12.2pt;">.</font></div><div style="line-height:120%;text-align:justify;font-size:12.2pt;"><font style="font-family:inherit;font-size:12.2pt;"><br></font></div><div style="line-height:120%;text-align:justify;text-indent:48px;font-size:12.2pt;"><font style="font-family:inherit;font-size:12.2pt;font-weight:bold;">5.</font><font style="font-family:inherit;font-size:12.2pt;">&#160;&#160;&#160;&#160;</font><font style="font-family:inherit;font-size:12.2pt;font-weight:bold;">Representation About Claims.</font><font style="font-family:inherit;font-size:12.2pt;">&#32;&#32;Klug represents and warrants that as of the date on which Klug signed this Agreement, he has not filed any claims, complaints, charges, or lawsuits </font></div><br><div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div></div><hr style="page-break-after:always"><a name="sfe438f77444f414f98c11dfb0c3dd749"></a><div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div></div><br><div style="line-height:120%;text-align:justify;font-size:12.2pt;"><font style="font-family:inherit;font-size:12.2pt;">against any of the Company Parties with any governmental agency or with any state or federal court or arbitrator for or with respect to a matter, claim, or incident that occurred or arose out of one or more occurrences that took place on or prior to the date on which Klug signed this Agreement.  Klug further represents and warrants that he has made no assignment, sale, delivery, transfer or conveyance of any rights Klug has asserted or may have against any of the Company Parties with respect to any Released Claim.</font></div><div style="line-height:120%;text-align:left;font-size:12.2pt;"><font style="font-family:inherit;font-size:12.2pt;"><br></font></div><div style="line-height:120%;text-align:justify;text-indent:48px;font-size:12.2pt;"><font style="font-family:inherit;font-size:12.2pt;font-weight:bold;">6.</font><font style="font-family:inherit;font-size:12.2pt;">&#160;&#160;&#160;&#160;</font><font style="font-family:inherit;font-size:12.2pt;font-weight:bold;">Provision of Consulting Services to the Company.    </font></div><div style="line-height:120%;text-align:justify;text-indent:48px;font-size:12.2pt;"><font style="font-family:inherit;font-size:12.2pt;"><br></font></div><div style="line-height:120%;text-align:justify;text-indent:48px;font-size:12.2pt;"><font style="font-family:inherit;font-size:12.2pt;">(a)</font><font style="font-family:inherit;font-size:12.2pt;">&#160;&#160;&#160;&#160;</font><font style="font-family:inherit;font-size:12.2pt;">During the Consulting Period (as defined below), Klug agrees to provide, when reasonably requested by the Company, services in the capacity of an independent contractor and, in such capacity (and when requested by the Company), provide consultation to the Company with regard to the Company's information systems and related technology (the </font><font style="font-family:inherit;font-size:12.2pt;font-style:italic;font-weight:bold;">&#8220;Services&#8221;</font><font style="font-family:inherit;font-size:12.2pt;">).  In providing the Services, Klug shall provide the Company with such of his assessments and evaluations as the Company may deem necessary from time to time.  Klug agrees to attend such meetings as the Company may reasonably require for proper communication of his advice and consultation.  Klug shall coordinate the furnishing of the Services with representatives of the Company in order that such services can be provided in such a way as to generally conform to the business schedules of the Company, but the method of performance, time of performance, place of performance, hours utilized in such performance, and other details of the manner of performance of Klug's provision of the Services shall be within the sole control of Klug.   Subject to Section 8, during the Consulting Period, (i) Klug shall have the right to devote his business time and working efforts to other business and professional opportunities as do not interfere with his rendering of the Services to the Company and (ii) Klug shall not be deemed to be an agent of the Company or have any power to bind or commit the Company or otherwise act on its behalf. </font></div><div style="line-height:120%;text-align:justify;font-size:12.2pt;"><font style="font-family:inherit;font-size:12.2pt;"><br></font></div><div style="line-height:120%;text-align:justify;text-indent:48px;font-size:12.2pt;"><font style="font-family:inherit;font-size:12.2pt;">(b)</font><font style="font-family:inherit;font-size:12.2pt;">&#160;&#160;&#160;&#160;</font><font style="font-family:inherit;font-size:12.2pt;">As of the Separation Date, Klug shall no longer be an employee of the Company or any of its affiliates, and nothing in this Agreement or elsewhere shall change that status.  During the Consulting Period, Klug shall be an independent contractor and shall not participate in any pension or welfare benefit plans, programs or arrangements of the Company or any of its affiliates unless such benefits are made available to Klug by operation of law and due to Klug's former employment status with the Company.  As an independent contractor, Klug shall be solely responsible for all taxes on the sums received by him pursuant to this Section 6 and Klug expressly agrees to pay and be responsible for making all applicable tax filings and remittances with respect to amounts paid to Klug pursuant to this Section 6 and to hold harmless the Company Parties for all claims, damages, costs and liabilities arising from Klug's failure to do so. </font></div><div style="line-height:120%;text-align:justify;text-indent:48px;font-size:12.2pt;"><font style="font-family:inherit;font-size:12.2pt;"><br></font></div><div style="line-height:120%;padding-bottom:8px;text-align:justify;text-indent:48px;font-size:12.2pt;"><font style="font-family:inherit;font-size:12.2pt;">(c)</font><font style="font-family:inherit;font-size:12.2pt;">&#160;&#160;&#160;&#160;</font><font style="font-family:inherit;font-size:12.2pt;">In exchange for providing the Services set forth in Section 6(a), and for making himself available to do so, the Company shall pay Klug a consulting fee at the rate of $10,000 per complete calendar month during the Consulting Period such that if the Consulting Period lasts for the period between the August 10, 2013 and August 9, 2015, the Company shall pay Klug an aggregate amount equal to $240,000 for his services under this Section 6.  Such payments shall be made in arrears on the 15</font><font style="font-family:inherit;font-size:12.2pt;"><sup style="vertical-align:top;line-height:120%;font-size:pt">th</sup></font><font style="font-family:inherit;font-size:12.2pt;">&#32;day (or the next following business day, if the 15</font><font style="font-family:inherit;font-size:12.2pt;"><sup style="vertical-align:top;line-height:120%;font-size:pt">th</sup></font><font style="font-family:inherit;font-size:12.2pt;">&#32;is not a business day) of the calendar month that follows the applicable calendar month and shall be pro-rated (based on the number of days Klug provides or is available to provide the Services in the applicable month) for any partial calendar month during the Consulting Period. </font></div><br><div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div></div><hr style="page-break-after:always"><a name="sfe438f77444f414f98c11dfb0c3dd749"></a><div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div></div><br><div style="line-height:120%;padding-bottom:8px;text-align:justify;text-indent:48px;font-size:12.2pt;"><font style="font-family:inherit;font-size:12.2pt;">The Company shall have the right to deduct from any payment of compensation hereunder (i) any federal, state or local taxes required by law to be withheld and (ii) any other amounts specifically authorized to be withheld or deducted by Consultant.  All installments of compensation shall be paid in lawful money of the United States of America payable at ACH or other electronic means to Consultant's account as follows:</font></div><div style="line-height:120%;padding-bottom:8px;text-align:justify;text-indent:48px;font-size:12.2pt;"><font style="font-family:inherit;font-size:12.2pt;"><br></font></div><div style="line-height:120%;padding-bottom:8px;text-align:justify;padding-left:48px;text-indent:48px;font-size:12.2pt;"><font style="font-family:inherit;font-size:12.2pt;">Consultant's Bank Name: </font><font style="font-family:inherit;font-size:12.2pt;">&#160;&#160;&#160;&#160;</font><font style="font-family:inherit;font-size:12.2pt;">______________________</font></div><div style="line-height:120%;padding-bottom:8px;text-align:justify;padding-left:48px;text-indent:48px;font-size:12.2pt;"><font style="font-family:inherit;font-size:12.2pt;">Consultant's Bank City/State: _____________________</font></div><div style="line-height:120%;padding-bottom:8px;text-align:justify;padding-left:48px;text-indent:48px;font-size:12.2pt;"><font style="font-family:inherit;font-size:12.2pt;">Consultant's Bank ABA:  ________________________</font></div><div style="line-height:120%;padding-bottom:8px;text-align:justify;padding-left:48px;text-indent:48px;font-size:12.2pt;"><font style="font-family:inherit;font-size:12.2pt;">Consultant's Bank Account: ______________________</font></div><div style="line-height:120%;padding-bottom:8px;text-align:justify;padding-left:48px;text-indent:48px;font-size:12.2pt;"><font style="font-family:inherit;font-size:12.2pt;">Consultant's Tax ID#: ___________________________</font></div><div style="line-height:120%;padding-bottom:8px;text-align:justify;padding-left:48px;text-indent:48px;font-size:12.2pt;"><font style="font-family:inherit;font-size:12.2pt;"><br></font></div><div style="line-height:120%;padding-bottom:16px;text-align:justify;text-indent:48px;font-size:12.2pt;"><font style="font-family:inherit;font-size:12.2pt;">&#32;(d)</font><font style="font-family:inherit;font-size:12.2pt;">&#160;&#160;&#160;&#160;</font><font style="font-family:inherit;font-size:12.2pt;">Unless earlier terminated as provided hereunder, the &#8220;</font><font style="font-family:inherit;font-size:12.2pt;font-style:italic;font-weight:bold;">Consulting Period</font><font style="font-family:inherit;font-size:12.2pt;">&#8221;</font><font style="font-family:inherit;font-size:12.2pt;font-style:italic;font-weight:bold;">&#32;</font><font style="font-family:inherit;font-size:12.2pt;">shall be that period commencing on August 10, 2013 and ending on August 9, 2015.  Notwithstanding the foregoing, the Consulting Period, and Klug's and the Company's respective obligations under this Section 6, shall be terminated prior to August 9, 2015 upon any of the following: (i) the death or disability of Klug; (ii) the termination of the Consulting Period by the Company for Cause (as defined below); or (iii) the termination of the Consulting Period by mutual agreement of the Parties, as evidenced by a writing signed by Klug and the Company. </font></div><div style="line-height:120%;padding-bottom:16px;text-align:justify;text-indent:48px;font-size:12.2pt;"><font style="font-family:inherit;font-size:12.2pt;">(e)</font><font style="font-family:inherit;font-size:12.2pt;">&#160;&#160;&#160;&#160;</font><font style="font-family:inherit;font-size:12.2pt;">&#8220;</font><font style="font-family:inherit;font-size:12.2pt;font-style:italic;font-weight:bold;">Cause</font><font style="font-family:inherit;font-size:12.2pt;">&#8221;</font><font style="font-family:inherit;font-size:12.2pt;font-style:italic;font-weight:bold;">&#32;</font><font style="font-family:inherit;font-size:12.2pt;">shall mean (i) a material breach by Klug of his obligations under this Agreement, including, without limitation, any material failure or inability to provide the Services as requested by the Company, (ii) commission by Klug of an act of fraud, embezzlement, misappropriation, misconduct or any other conduct that is materially harmful or potentially materially harmful to the Company's best interests, (iii) a breach by Klug of any of his continuing obligations set forth in Sections 7 or 8 of this Agreement, (iv) Klug's conviction, plea of no contest or </font><font style="font-family:inherit;font-size:12.2pt;font-style:italic;">nolo contendere</font><font style="font-family:inherit;font-size:12.2pt;">, deferred adjudication or unadjudicated probation for any felony or any crime involving moral turpitude, or (v) Klug's failure to execute the Confirming Release in accordance with Section 9 of this Agreement or Klug's revocation of the Confirming Release in the time provided to do so.</font></div><div style="line-height:120%;text-align:justify;text-indent:48px;font-size:12.2pt;"><font style="font-family:inherit;font-size:12.2pt;font-weight:bold;">7.</font><font style="font-family:inherit;font-size:12.2pt;">&#160;&#160;&#160;&#160;</font><font style="font-family:inherit;font-size:12.2pt;font-weight:bold;">Confidential Information. </font></div><div style="line-height:120%;text-align:justify;text-indent:48px;font-size:12.2pt;"><font style="font-family:inherit;font-size:12.2pt;font-weight:bold;">&#160;</font></div><div style="line-height:120%;text-align:justify;text-indent:48px;font-size:12.2pt;"><font style="font-family:inherit;font-size:12.2pt;">(a)</font><font style="font-family:inherit;font-size:12.2pt;">&#160;&#160;&#160;&#160;</font><font style="font-family:inherit;font-size:12.2pt;">Klug acknowledges that Klug has obtained and, in the future will obtain, additional Confidential Information.  As used in this Agreement, &#8220;</font><font style="font-family:inherit;font-size:12.2pt;font-style:italic;font-weight:bold;">Confidential Information</font><font style="font-family:inherit;font-size:12.2pt;">&#8221; means confidential information of the Company or its affiliates, which such information includes (regardless of whether or not marked &#8220;confidential,&#8221; and whether or not patented), without limitation: unique concepts, practices, sales presentations, marketing programs, marketing strategies, business practices, methods of operations, pricing information, computer software programs, tapes and discs concerning operations systems, customer lists, customer leads, documents identifying past, present and future customers, customer profiles and preference data, hiring and training methods, investment policies, strategic information, financial and other confidential, proprietary and/or trade secret information concerning operations, business and expansion plans.  Confidential Information includes without limitation any non-public information relating to the Company's or its affiliates' businesses, including without limitation information and technical data contained in the Company's manuals, booklets, publications </font></div><br><div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div></div><hr style="page-break-after:always"><a name="sfe438f77444f414f98c11dfb0c3dd749"></a><div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div></div><br><div style="line-height:120%;text-align:justify;font-size:12.2pt;"><font style="font-family:inherit;font-size:12.2pt;">and materials and equipment of every kind and character, as well as documents, prototypes, samples, prospects, inventions, product ideas, technical information, know how, processes, plans (including without limitation, marketing plans and strategies), specifications, designs, techniques, technology, formulas, software, improvements, forecasts and research.  Confidential Information does not include any information which (i) was publicly known and made generally available in the public domain prior to the time of its disclosure to Klug; (ii) becomes publicly known and made generally available after disclosure to Klug other than through an action or inaction of Klug; or (iii) is required by law to be disclosed by Klug; provided, however, that Klug shall give the Company prompt written notice of such requirement prior to disclosure and Klug shall provide the Company with assistance in obtaining an order protecting or limiting the disclosure of such information.</font></div><div style="line-height:120%;text-align:justify;text-indent:48px;font-size:12.2pt;"><font style="font-family:inherit;font-size:12.2pt;"><br></font></div><div style="line-height:120%;text-align:justify;text-indent:48px;font-size:12.2pt;"><font style="font-family:inherit;font-size:12.2pt;">(b)</font><font style="font-family:inherit;font-size:12.2pt;">&#160;&#160;&#160;&#160;</font><font style="font-family:inherit;font-size:12.2pt;">At all times Klug will keep in confidence and trust all Confidential Information, and will not use or disclose any such Confidential Information without the written consent of the Company, except as may be necessary in the ordinary course of performing Klug's duties to the Company or any of its affiliates.  All documents, records, data, apparatus, equipment and other physical property, whether or not pertaining to Confidential Information, which are furnished to Klug by the Company or any of its affiliates or are produced by Klug in connection with his providing Services to the Company or any of its affiliates will be and remain the sole property of the Company or its applicable affiliate.  Klug will return to the Company or its applicable affiliate all such materials and property as and when requested by the Company.  In any event, Klug will return all such materials and property immediately upon termination of the Consulting Period.  Klug will not retain any such material or property or any copies thereof after such termination.</font></div><div style="line-height:120%;text-align:justify;text-indent:48px;font-size:12.2pt;"><font style="font-family:inherit;font-size:12.2pt;"><br></font></div><div style="line-height:120%;text-align:justify;text-indent:48px;font-size:12.2pt;"><font style="font-family:inherit;font-size:12.2pt;font-weight:bold;">8.</font><font style="font-family:inherit;font-size:12.2pt;">&#160;&#160;&#160;&#160;</font><font style="font-family:inherit;font-size:12.2pt;font-weight:bold;">Non-Competition; Non-Solicitation.  </font></div><div style="line-height:120%;text-align:justify;text-indent:48px;font-size:12.2pt;"><font style="font-family:inherit;font-size:12.2pt;"><br></font></div><div style="line-height:120%;text-align:justify;text-indent:48px;font-size:12.2pt;"><font style="font-family:inherit;font-size:12.2pt;">(a)</font><font style="font-family:inherit;font-size:12.2pt;">&#160;&#160;&#160;&#160;</font><font style="font-family:inherit;font-size:12.2pt;">In order to protect the Confidential Information and the significant goodwill of the Company and its affiliates with which Klug is, and will continue to be, associated, Klug expressly agrees and promises that during the period beginning on the Separation Date and ending on the second anniversary of the termination of the Consulting Period (the &#8220;</font><font style="font-family:inherit;font-size:12.2pt;font-style:italic;font-weight:bold;">Prohibited Period</font><font style="font-family:inherit;font-size:12.2pt;">&#8221;), Klug will not, directly or indirectly, for himself or in conjunction with any other person or entity of whatever nature:</font></div><div style="line-height:120%;text-align:justify;text-indent:48px;font-size:12.2pt;"><font style="font-family:inherit;font-size:12.2pt;"><br></font></div><div style="line-height:120%;text-align:justify;padding-left:48px;text-indent:48px;font-size:12.2pt;"><font style="font-family:inherit;font-size:12.2pt;">(i)</font><font style="font-family:inherit;font-size:12.2pt;">&#160;&#160;&#160;&#160;</font><font style="font-family:inherit;font-size:12.2pt;">Other than on behalf of the Company or any of its affiliates, Klug shall not own, manage, advise, encourage, support, finance, operate, join, control or participate in the ownership, management, operation or control of, or be connected in any manner with any business which is in the Death Care Business (whether as a principal, funeral director, managing partner, agent, trustee, employee, consultant or otherwise) (i) as part of any of the companies or entities listed on Exhibit C hereto; or (ii) anywhere within a 25-mile radius of any business owned or operated by the Company or its affiliates (the &#8220;</font><font style="font-family:inherit;font-size:12.2pt;font-style:italic;font-weight:bold;">Territory</font><font style="font-family:inherit;font-size:12.2pt;">&#8221;);</font></div><div style="line-height:120%;text-align:justify;padding-left:48px;text-indent:48px;font-size:12.2pt;"><font style="font-family:inherit;font-size:12.2pt;"><br></font></div><div style="line-height:120%;text-align:justify;padding-left:48px;text-indent:48px;font-size:12.2pt;"><font style="font-family:inherit;font-size:12.2pt;">(ii)</font><font style="font-family:inherit;font-size:12.2pt;">&#160;&#160;&#160;&#160;</font><font style="font-family:inherit;font-size:12.2pt;">Appropriate any Business Opportunity of, or relating to, the Company or its affiliates in the Territory;</font></div><div style="line-height:120%;text-align:justify;text-indent:48px;font-size:12.2pt;"><font style="font-family:inherit;font-size:12.2pt;"><br></font></div><br><div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div></div><hr style="page-break-after:always"><a name="sfe438f77444f414f98c11dfb0c3dd749"></a><div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div></div><br><div style="line-height:120%;text-align:justify;padding-left:48px;text-indent:48px;font-size:12.2pt;"><font style="font-family:inherit;font-size:12.2pt;">(iii)</font><font style="font-family:inherit;font-size:12.2pt;">&#160;&#160;&#160;&#160;</font><font style="font-family:inherit;font-size:12.2pt;">Solicit, canvass, approach, entice or induce any customer or supplier of the Company or any of its affiliates to cease or lessen such customer's or supplier's business with the Company or any of its affiliates; 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In the event of a breach by Klug of any covenant set forth in this Section 8, the term of such covenant will be extended by the period of such breach.</font></div><div style="line-height:120%;text-align:justify;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div><div style="line-height:120%;text-align:justify;text-indent:48px;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">(e)</font><font style="font-family:inherit;font-size:10pt;">&#160;&#160;&#160;&#160;</font><font style="font-family:inherit;font-size:12pt;">Klug agrees and acknowledges that he has occupied and will occupy a position of trust and confidence with respect to the Company and its affiliates and: (i) the business of the Company and its affiliates is conducted throughout the Territory; (ii) the limitations as to time, geographical area and scope of activity to be restrained as set forth in this Section 8 are reasonable in all respects, will not cause him undue hardship, and do not impose any greater restraint than is necessary to protect the legitimate business interests of the Company and its affiliates, including the protection of Confidential Information and the preservation of the significant amount of goodwill with which Klug is and will be materially affiliated; and (iii) the limitations of this Section 8 are intended to comply with the provisions of all applicable laws.  Klug understands that the foregoing restrictions limit his ability to engage in the Death Care Business in the Territory during the Prohibited Period, but acknowledges that he has received and/or will receive sufficient consideration to justify such restrictions.</font></div><div style="line-height:120%;text-align:justify;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div><br><div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div></div><hr style="page-break-after:always"><a name="sfe438f77444f414f98c11dfb0c3dd749"></a><div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div></div><br><div style="line-height:120%;text-align:justify;text-indent:48px;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">(f)</font><font style="font-family:inherit;font-size:10pt;">&#160;&#160;&#160;&#160;</font><font style="font-family:inherit;font-size:12pt;">The covenants in this Section 8 are severable and separate, and the unenforceability of any specific covenant shall not affect the provisions of any other covenant.  Moreover, in the event any arbitrator or court of competent jurisdiction shall determine that the scope, time or territorial restrictions set forth are unreasonable, then it is the intention of the Parties that such restrictions be enforced to the fullest extent which the arbitrator or court deems reasonable, and this Agreement shall thereby be reformed and, as so modified, shall be fully enforced.  By agreeing to this contractual modification prospectively at this time, the Parties intend to make this Section 8 enforceable under all applicable laws so that this section as prospectively modified shall remain in full force and effect and shall not be rendered void or illegal.</font></div><div style="line-height:120%;text-align:justify;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div><div style="line-height:120%;text-align:justify;text-indent:48px;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">9.</font><font style="font-family:inherit;font-size:10pt;">&#160;&#160;&#160;&#160;</font><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Reaffirmation of Release.  </font><font style="font-family:inherit;font-size:12pt;">On the Separation Date or within twenty-one (21) days thereafter, Klug shall execute the Release Agreement that is attached as </font><font style="font-family:inherit;font-size:12pt;text-decoration:underline;">Exhibit A</font><font style="font-family:inherit;font-size:12pt;">&#32;(the&#160;&#8220;</font><font style="font-family:inherit;font-size:12pt;font-style:italic;font-weight:bold;">Confirming Release</font><font style="font-family:inherit;font-size:12pt;">&#8221;).  Provided that Klug executes this Confirming Release in a timely fashion and does not revoke his acceptance of the Confirming Release in the time provided to do so, Klug shall receive the benefits owed to him pursuant to Section 2 above and those additional payments that may be owed to him pursuant to Section 6 above.</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div><div style="line-height:120%;text-align:justify;text-indent:48px;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">10.</font><font style="font-family:inherit;font-size:10pt;">&#160;&#160;&#160;&#160;</font><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Applicable Law</font><font style="font-family:inherit;font-size:12pt;font-style:italic;font-weight:bold;">.  </font><font style="font-family:inherit;font-size:12pt;">This Agreement is entered into under, and shall be governed for all purposes by, the laws of the State of Texas without reference to the principles of conflicts of law thereof.  </font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div><div style="line-height:120%;text-align:justify;text-indent:48px;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">11.</font><font style="font-family:inherit;font-size:10pt;">&#160;&#160;&#160;&#160;</font><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Counterparts</font><font style="font-family:inherit;font-size:12pt;font-style:italic;font-weight:bold;">.  </font><font style="font-family:inherit;font-size:12pt;">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 will constitute one and the same Agreement.  </font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div><div style="line-height:120%;text-align:justify;text-indent:48px;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">12.</font><font style="font-family:inherit;font-size:10pt;">&#160;&#160;&#160;&#160;</font><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Amendment; Entire Agreement</font><font style="font-family:inherit;font-size:12pt;font-style:italic;font-weight:bold;">.</font><font style="font-family:inherit;font-size:12pt;">&#32;&#32;This Agreement may not be changed orally but only by an agreement in writing agreed to and signed by the party to be charged.  This Agreement constitutes the entire agreement of the Parties with regard to the subject matter hereof; provided, however, that the Parties acknowledge and agree that nothing in this Agreement supersedes or replaces the provisions of Article IV or Article VI of the Employment Agreement, which such provisions shall continue in full force and effect and are in addition to all confidentiality, non-competition, non-solicitation and other obligations on Klug hereunder.  .  </font></div><div style="line-height:120%;text-align:justify;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div><div style="line-height:120%;text-align:justify;text-indent:48px;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">13.</font><font style="font-family:inherit;font-size:10pt;">&#160;&#160;&#160;&#160;</font><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Klug's Representations.</font><font style="font-family:inherit;font-size:12pt;">&#32;&#32;By executing and delivering this Agreement, Klug acknowledges that:</font></div><div style="line-height:120%;text-align:justify;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div><div style="line-height:120%;text-align:justify;text-indent:48px;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">(a) </font><font style="font-family:inherit;font-size:10pt;">&#160;&#160;&#160;&#160;</font><font style="font-family:inherit;font-size:12pt;">He has carefully read this Agreement and had sufficient opportunity to consider it; 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Furthermore, Klug agrees that he will not issue any public comment or statement directly or indirectly regarding or in any way relating to the end of his employment or service relationship with the Company unless such comment or statement has received prior written approval of the Company.  </font></div><div style="line-height:120%;text-align:justify;text-indent:48px;font-size:12.3pt;"><font style="font-family:inherit;font-size:12.3pt;"><br></font></div><div style="line-height:120%;text-align:justify;text-indent:48px;font-size:12.3pt;"><font style="font-family:inherit;font-size:12.3pt;font-weight:bold;">15.</font><font style="font-family:inherit;font-size:12.3pt;">&#160;&#160;&#160;&#160;</font><font style="font-family:inherit;font-size:12.3pt;font-weight:bold;">Third-Party Beneficiaries.</font><font style="font-family:inherit;font-size:12.3pt;">&#32;&#32;Klug expressly acknowledges and agrees that each Company Party shall be a third-party beneficiary of Section 4 of this Agreement and that each of the Company's affiliates shall be entitled to enforce Klug's obligations hereunder as if a party hereto.</font></div><div style="line-height:120%;text-align:justify;text-indent:48px;font-size:12.3pt;"><font style="font-family:inherit;font-size:12.3pt;"><br></font></div><div style="line-height:120%;text-align:justify;text-indent:48px;font-size:12.3pt;"><font style="font-family:inherit;font-size:12.3pt;font-weight:bold;">16.</font><font style="font-family:inherit;font-size:12.3pt;">&#160;&#160;&#160;&#160;</font><font style="font-family:inherit;font-size:12.3pt;font-weight:bold;">Severability.</font><font style="font-family:inherit;font-size:12.3pt;">&#32;&#32;Any term or provision of this Agreement that renders such term or provision or any other term or provision hereof invalid or unenforceable in any respect shall be modified to the extent necessary to avoid rendering such term or provision invalid or unenforceable, and such modification shall be accomplished in the manner that most nearly preserves the benefit of the Parties' bargain hereunder.</font></div><div style="line-height:120%;text-align:justify;text-indent:48px;font-size:12.3pt;"><font style="font-family:inherit;font-size:12.3pt;"><br></font></div><div style="line-height:120%;text-align:justify;text-indent:48px;font-size:12.3pt;"><font style="font-family:inherit;font-size:12.3pt;font-weight:bold;">17.</font><font style="font-family:inherit;font-size:12.3pt;">&#160;&#160;&#160;&#160;</font><font style="font-family:inherit;font-size:12.3pt;font-weight:bold;">Revocation Right.</font><font style="font-family:inherit;font-size:12.3pt;">&#32;&#32;Notwithstanding the initial effectiveness of this Agreement, Klug may revoke the delivery (and therefore the effectiveness) of this Agreement within the seven-day period beginning on the date Klug executes this Agreement (such seven-day period being referred to herein as the &#8220;</font><font style="font-family:inherit;font-size:12.3pt;font-style:italic;font-weight:bold;">Release Revocation Period</font><font style="font-family:inherit;font-size:12.3pt;">&#8221;).&#160; 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Payne____________________</font></div><div style="line-height:120%;text-align:left;text-indent:288px;font-size:12pt;"><font style="font-family:inherit;font-size:10pt;"></font><font style="font-family:inherit;font-size:12pt;">Name: Melvin C. 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KLUG</font></div><div style="line-height:120%;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div><div style="line-height:120%;text-align:left;text-indent:192px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></div><div style="line-height:120%;padding-bottom:16px;text-align:left;padding-left:144px;text-indent:96px;font-size:12pt;"><font style="font-family:inherit;font-size:10pt;"></font><font style="font-family:inherit;font-size:12pt;">___/s/ George J. Klug_________________________</font></div><div style="line-height:120%;padding-bottom:16px;text-align:left;padding-left:144px;text-indent:144px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></div><div style="line-height:120%;padding-bottom:16px;text-align:left;padding-left:144px;text-indent:96px;font-size:12pt;"><font style="font-family:inherit;font-size:10pt;"></font><font style="font-family:inherit;font-size:12pt;">Date: ____7/31/13____________</font></div><div style="line-height:120%;padding-bottom:16px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div><br><div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div></div><hr style="page-break-after:always"><a name="sfe438f77444f414f98c11dfb0c3dd749"></a><div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div></div><br><div style="line-height:120%;text-align:center;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">EXHIBIT A</font></div><div style="line-height:120%;text-align:center;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">RELEASE AGREEMENT</font></div><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div><div style="line-height:120%;text-align:justify;text-indent:48px;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">This Release Agreement (the &#8220;</font><font style="font-family:inherit;font-size:12pt;font-style:italic;font-weight:bold;">Confirming Release</font><font style="font-family:inherit;font-size:12pt;">&#8221;) is that certain Confirming Release referenced in Section 9 of the Separation and Consulting Agreement and General Release (the &#8220;</font><font style="font-family:inherit;font-size:12pt;font-style:italic;font-weight:bold;">Separation Agreement</font><font style="font-family:inherit;font-size:12pt;">&#8221;), entered into by and between Carriage Services, Inc. (the &#8220;</font><font style="font-family:inherit;font-size:12pt;font-style:italic;font-weight:bold;">Company</font><font style="font-family:inherit;font-size:12pt;">&#8221;) and George J. Klug (&#8220;</font><font style="font-family:inherit;font-size:12pt;font-style:italic;font-weight:bold;">Klug</font><font style="font-family:inherit;font-size:12pt;">&#8221;).  Unless sooner revoked by Klug pursuant to the terms of Section 5 below, Klug's acceptance becomes irrevocable and this Confirming Release becomes effective on the eighth (8th) day after Klug signs it (the &#8220;</font><font style="font-family:inherit;font-size:12pt;font-style:italic;font-weight:bold;">Confirming Release Effective Date</font><font style="font-family:inherit;font-size:12pt;">&#8221;).  Capitalized terms used herein that are not otherwise defined have the meanings assigned to them in the Separation Agreement.  In consideration of the promises, mutual releases, and additional consideration herein, the sufficiency of which is hereby acknowledged, Klug agrees as follows:</font></div><div style="line-height:120%;text-align:justify;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div><div style="line-height:120%;text-align:justify;text-indent:48px;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">1.</font><font style="font-family:inherit;font-size:10pt;">&#160;&#160;&#160;&#160;</font><font style="font-family:inherit;font-size:12pt;font-weight:bold;">General Release.</font><font style="font-family:inherit;font-size:12pt;">&#32;&#32;As part of the consideration of the Company's provision of payments and benefits to Klug after the Separation Date in accordance with Sections 2 and 6 of the Separation Agreement, which such payments and benefits Klug was not entitled to but for his entry into (and non-revocation of) the Separation Agreement and this Confirming Release, Klug hereby releases, discharges, and forever acquits the Company Parties from liability for, and hereby waives, any and all claims, rights, damages, or causes of action of any kind that Klug has, or could have, whether known or unknown, against any Company Party, including but not limited to those related to Klug's employment or other relationship with any Company Party, the termination of such employment or other relationship, and any other acts or omissions related to any matter on or prior to the time Klug signs this Confirming Release, including without limitation any alleged violation through the Confirming Release Effective Date of the following: (i) the Age Discrimination in Employment Act of 1967, as amended (including as amended by the Older Workers Benefit Protection Act); (ii) Title VII of the Civil Rights Act of 1964, as amended; (iii) the Civil Rights Act of 1991; (iv) sections 1981 through 1988 of Title 42 of the United States Code, as amended; (v) the Employee Retirement Income Security Act of 1974 (&#8220;</font><font style="font-family:inherit;font-size:12pt;font-style:italic;font-weight:bold;">ERISA</font><font style="font-family:inherit;font-size:12pt;">&#8221;); (vi) the Immigration Reform Control Act, as amended; (vii) the Americans with Disabilities Act of 1990, as amended; (viii) the National Labor Relations Act, as amended; (ix) the Occupational Safety and Health Act, as amended; (x) the Family and Medical Leave Act of 1993, as amended; (xi) any federal, state, or local anti-discrimination or anti-retaliation law; (xii) any federal, state, or local wage and hour law; (xiii) any other federal, state, or local law, regulation, or ordinance; (xiv) any public policy, contract, tort, or common law; (xv) any right to costs, fees, or other expenses including attorneys' fees incurred in, or with respect to, a Released Claim; (xvi) any and all rights, benefits or claims Klug may have under any employment contract (including, without limitation, the Employment Agreement), incentive compensation plan or equity-based plan with any Company Party or to any ownership interest in any Company Party except as expressly provided in the Separation Agreement or the Specified Award Agreements; and (xviii)&#160;any claim for compensation or benefits of any kind not expressly set forth in the Separation Agreement (collectively, the &#8220;</font><font style="font-family:inherit;font-size:12pt;font-style:italic;font-weight:bold;">Further Released Claims</font><font style="font-family:inherit;font-size:12pt;">&#8221;).  This Confirming Release is not intended to indicate that any such claims exist or that, if they do exist, they are meritorious.  Rather, Klug is simply agreeing that, in exchange for the consideration recited above, any and all potential claims of any nature that Klug may have against the Company Parties, regardless of whether they actually exist, are expressly settled, compromised, and waived.</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div><div style="line-height:120%;text-align:justify;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">Notwithstanding the foregoing, in no event shall the Further Released Claims include (a) any claim which arises after the time Klug signs this Confirming Release, (b) any claims for the payments and benefits payable to Klug pursuant to the terms of Section 2 or Section 6 of the Separation Agreement, or (c) any claim to vested benefits under an employee benefit plan that is subject to ERISA.  For the </font></div><br><div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div></div><hr style="page-break-after:always"><a name="sfe438f77444f414f98c11dfb0c3dd749"></a><div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div></div><br><div style="line-height:120%;text-align:justify;font-size:12.2pt;"><font style="font-family:inherit;font-size:12.2pt;">avoidance of doubt, the Further Released Claims shall include any claim or cause of action which accrued prior to the time that Klug executes this Confirming Release.</font></div><div style="line-height:120%;text-align:justify;font-size:12.2pt;"><font style="font-family:inherit;font-size:12.2pt;"><br></font></div><div style="line-height:120%;text-align:justify;font-size:12.2pt;"><font style="font-family:inherit;font-size:12.2pt;">Nothing in this Confirming Release prevents Klug from filing any non-legally waivable claim (including a challenge to the validity of this Confirming Release) with the EEOC (as defined in the Separation Agreement) or comparable state or local agency or participating in any investigation or proceeding conducted by the EEOC or comparable state or local agency; however, Klug understands and agrees that he is waiving any and all rights to recover any monetary or personal relief or recovery as a result of such EEOC or comparable state or local agency proceeding or subsequent legal actions.</font></div><div style="line-height:120%;text-align:justify;font-size:12.2pt;"><font style="font-family:inherit;font-size:12.2pt;"><br></font></div><div style="line-height:120%;text-align:justify;font-size:12.2pt;"><font style="font-family:inherit;font-size:12.2pt;">By signing this Confirming Release, Klug is bound by it.  Anyone who succeeds to Klug's rights and responsibilities, such as heirs or the executor of Klug's estate, is also bound by this Confirming Release.  This release also applies to any claims brought by any person or agency on behalf of any class with respect to which Klug may have a right or benefit.  </font><font style="font-family:inherit;font-size:12.2pt;font-weight:bold;">THIS RELEASE INCLUDES MATTERS ATTRIBUTABLE TO THE SOLE OR PARTIAL NEGLIGENCE (WHETHER GROSS OR SIMPLE) OR OTHER FAULT, INCLUDING STRICT LIABILITY, OF ANY OF THE RELEASED PARTIES. </font><font style="font-family:inherit;font-size:12.2pt;">&#32;&#32;</font></div><div style="line-height:120%;text-align:justify;font-size:12.2pt;"><font style="font-family:inherit;font-size:12.2pt;"><br></font></div><div style="line-height:120%;text-align:justify;text-indent:48px;font-size:12.2pt;"><font style="font-family:inherit;font-size:12.2pt;font-weight:bold;">2.</font><font style="font-family:inherit;font-size:12.2pt;">&#160;&#160;&#160;&#160;</font><font style="font-family:inherit;font-size:12.2pt;font-weight:bold;">Representation About Claims.</font><font style="font-family:inherit;font-size:12.2pt;">&#32;&#32;Klug represents and warrants that as of the time that Klug signs this Confirming Release, he has not filed any claims, complaints, charges, or lawsuits against any of the Company Parties with any governmental agency or arbitration authority or with any state or federal court for or with respect to any matter, claim, or incident, which occurred or arose out of one or more occurrences that took place on or prior to the date on which Klug signed this Confirming Release.  Klug further represents and warrants that he has made no assignment, sale, delivery, transfer, or conveyance of any rights Klug has asserted or may have against any of the Company Parties with respect to any Further Released Claim.</font></div><div style="line-height:120%;text-align:justify;font-size:12.2pt;"><font style="font-family:inherit;font-size:12.2pt;"><br></font></div><div style="line-height:120%;text-align:justify;text-indent:48px;font-size:12.2pt;"><font style="font-family:inherit;font-size:12.2pt;font-weight:bold;">3.</font><font style="font-family:inherit;font-size:12.2pt;">&#160;&#160;&#160;&#160;</font><font style="font-family:inherit;font-size:12.2pt;font-weight:bold;">Klug's Acknowledgements.</font><font style="font-family:inherit;font-size:12.2pt;">&#32;&#32;By executing and delivering this Confirming Release, Klug makes the following representations, acknowledgements, and explicit statements of agreement:</font></div><div style="line-height:120%;text-align:justify;font-size:12.2pt;"><font style="font-family:inherit;font-size:12.2pt;"><br></font></div><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:144px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:12.2pt;padding-left:96px;"><font style="font-family:inherit;font-size:12.2pt;">(i)</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:justify;font-size:12.2pt;"><font style="font-family:inherit;font-size:12.2pt;">He has carefully read this Confirming Release and had sufficient opportunity to consider it; </font></div></td></tr></table><div style="line-height:120%;text-align:justify;padding-left:48px;font-size:12.2pt;"><font style="font-family:inherit;font-size:12.2pt;"><br></font></div><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:144px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:12.2pt;padding-left:96px;"><font style="font-family:inherit;font-size:12.2pt;">(ii)</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:justify;font-size:12.2pt;"><font style="font-family:inherit;font-size:12.2pt;">He would not otherwise have been entitled to the consideration described in Sections 2 and 6 of the Separation Agreement and that the Company agreed to provide such consideration in return for his agreement to be bound by the terms of the Separation Agreement and the Confirming Release;</font></div></td></tr></table><div style="line-height:120%;text-align:justify;padding-left:144px;text-indent:-48px;font-size:12.2pt;"><font style="font-family:inherit;font-size:12.2pt;"><br></font></div><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:144px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:12.2pt;padding-left:96px;"><font style="font-family:inherit;font-size:12.2pt;">(iii)</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:justify;font-size:12.2pt;"><font style="font-family:inherit;font-size:12.2pt;">He has had at least 21 days to consider this Confirming Release before executing it; </font></div></td></tr></table><div style="line-height:120%;text-align:justify;padding-left:48px;font-size:12.2pt;"><font style="font-family:inherit;font-size:12.2pt;"><br></font></div><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:144px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:12.2pt;padding-left:96px;"><font style="font-family:inherit;font-size:12.2pt;">(iv)</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:justify;font-size:12.2pt;"><font style="font-family:inherit;font-size:12.2pt;">He has been and hereby is advised in writing to discuss this Confirming Release with an attorney of his choice and that he has had adequate opportunity to do so; </font></div></td></tr></table><div style="line-height:120%;text-align:justify;padding-left:48px;font-size:12.2pt;"><font style="font-family:inherit;font-size:12.2pt;"><br></font></div><br><div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div></div><hr style="page-break-after:always"><a name="sfe438f77444f414f98c11dfb0c3dd749"></a><div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div></div><br><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:144px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:12.2pt;padding-left:96px;"><font style="font-family:inherit;font-size:12.2pt;">(v)</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:justify;font-size:12.2pt;"><font style="font-family:inherit;font-size:12.2pt;">He fully understands the final and binding effect of this Confirming Release; he is signing this Confirming Release voluntarily and of his own free will, and he understands and agrees to each of the terms of this Confirming Release; </font></div></td></tr></table><div style="line-height:120%;text-align:justify;padding-left:48px;font-size:12.2pt;"><font style="font-family:inherit;font-size:12.2pt;"><br></font></div><table cellpadding="0" cellspacing="0" style="padding-bottom:16px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:144px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:12.2pt;padding-left:96px;"><font style="font-family:inherit;font-size:12.2pt;">(vi)</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:justify;font-size:12.2pt;"><font style="font-family:inherit;font-size:12.2pt;">The only matters relied upon by him and causing him to sign this Confirming Release are the provisions set forth in writing within the four corners of this Confirming Release and the Separation Agreement; </font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:144px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:12.2pt;padding-left:96px;"><font style="font-family:inherit;font-size:12.2pt;">(vii)</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:justify;font-size:12.2pt;"><font style="font-family:inherit;font-size:12.2pt;">Klug also acknowledges that, other than the benefits set forth in Sections 2 and 6 of the Separation Agreement, he has no further rights to any bonuses, deferred compensation, or other payments from any Company Party; and</font></div></td></tr></table><div style="line-height:120%;text-align:justify;font-size:12.2pt;"><font style="font-family:inherit;font-size:12.2pt;"><br></font></div><div style="line-height:120%;text-align:justify;font-size:12.2pt;"><font style="font-family:inherit;font-size:12.2pt;">(viii)</font><font style="font-family:inherit;font-size:12.2pt;">&#160;&#160;&#160;&#160;</font><font style="font-family:inherit;font-size:12.2pt;">No Company Party has provided any tax advice to Klug regarding this Agreement and Klug has had the opportunity to receive sufficient tax advice from advisors of his own choosing.</font></div><div style="line-height:120%;text-align:justify;font-size:12.2pt;"><font style="font-family:inherit;font-size:12.2pt;"><br></font></div><div style="line-height:120%;text-align:justify;text-indent:48px;font-size:12.2pt;"><font style="font-family:inherit;font-size:12.2pt;font-weight:bold;">4.</font><font style="font-family:inherit;font-size:12.2pt;">&#160;&#160;&#160;&#160;</font><font style="font-family:inherit;font-size:12.2pt;font-weight:bold;">Satisfaction of All Leaves and Payment Amounts; Prior Rights and Obligations.  </font><font style="font-family:inherit;font-size:12.2pt;">In entering into this Confirming Release, Klug expressly acknowledges and agrees that Klug has received all leaves (paid and unpaid) to which Klug was entitled through the date that he executes this Agreement and, as of the date that Klug executes this Agreement, Klug has received all wages, bonuses, and other compensation, and been paid all sums, that Klug is owed or has been owed or could be owed by the Company and the other Company Parties (other than those amounts specifically set forth in Sections 2 and 6 of the Separation Agreement).  Without limiting the foregoing, Klug expressly acknowledges and agrees that all of the Company's obligations under the Employment Agreement are deemed to be satisfied in full.  </font></div><div style="line-height:120%;text-align:justify;font-size:12.2pt;"><font style="font-family:inherit;font-size:12.2pt;"><br></font></div><div style="line-height:120%;text-align:justify;text-indent:48px;font-size:12.2pt;"><font style="font-family:inherit;font-size:12.2pt;font-weight:bold;">5.</font><font style="font-family:inherit;font-size:12.2pt;">&#160;&#160;&#160;&#160;</font><font style="font-family:inherit;font-size:12.2pt;font-weight:bold;">Revocation Right.</font><font style="font-family:inherit;font-size:12.2pt;">&#32;&#32;Klug may revoke this Confirming Release within the seven-day period beginning on the date Klug signs this Confirming Release (such seven-day period being referred to herein as the &#8220;</font><font style="font-family:inherit;font-size:12.2pt;font-style:italic;font-weight:bold;">Confirming Release Revocation Period</font><font style="font-family:inherit;font-size:12.2pt;">&#8221;).  To be effective, such revocation must be in writing signed by Klug and must be received by Legal Counsel at 3040 Post Oak Boulevard, Suite 300, Houston, Texas 77056 or by email at </font><font style="font-family:inherit;font-size:12.2pt;color:#0000ff;text-decoration:underline;">legal@carriageservices.com</font><font style="font-family:inherit;font-size:12.2pt;">&#32;before 11:59 p.m. Houston, Texas time on the last day of the Confirming Release Revocation Period.  This Confirming Release is not effective, and no consideration shall be paid or provided to Klug on or after the Separation Date, until the expiration of the Confirming Release Revocation Period without Klug's revocation.  If an effective revocation is delivered in the foregoing manner and timeframe, this Confirming Release shall be of no force or effect and shall be null and void </font><font style="font-family:inherit;font-size:12.2pt;text-decoration:underline;">ab initio</font><font style="font-family:inherit;font-size:12.2pt;">.</font></div><div style="line-height:120%;text-align:justify;font-size:12.2pt;"><font style="font-family:inherit;font-size:12.2pt;"><br></font></div><div style="line-height:120%;text-align:justify;font-size:12.2pt;"><font style="font-family:inherit;font-size:12.2pt;font-weight:bold;">I HAVE CAREFULLY READ THIS CONFIRMING RELEASE, FULLY UNDERSTAND THIS AGREEMENT, AND SIGNS IT AS MY OWN FREE ACT.</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div><div style="line-height:120%;text-align:left;text-indent:240px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></div><div style="line-height:120%;text-align:left;padding-left:240px;text-indent:48px;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">GEORGE J. KLUG</font></div><div style="line-height:120%;text-align:left;padding-left:192px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div><div style="line-height:120%;text-align:left;padding-left:192px;text-indent:192px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></div><div style="line-height:120%;padding-bottom:16px;text-align:left;padding-left:240px;text-indent:48px;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">__________________________________________</font></div><div style="line-height:120%;padding-bottom:16px;text-align:left;padding-left:240px;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div><div style="line-height:120%;padding-bottom:16px;text-align:left;padding-left:240px;text-indent:48px;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">Date: ___________________</font></div><br><div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div></div><hr style="page-break-after:always"><a name="sfe438f77444f414f98c11dfb0c3dd749"></a><div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div></div><br><div style="line-height:120%;padding-bottom:16px;text-align:center;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;text-decoration:underline;">EXHIBIT B</font></div><div style="line-height:120%;padding-bottom:16px;text-align:center;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">SPECIFIED AWARD AGREEMENTS</font></div><div style="line-height:120%;padding-bottom:16px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div><div style="line-height:120%;padding-bottom:16px;text-align:justify;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;text-decoration:underline;">Stock Options</font></div><div style="line-height:120%;padding-bottom:16px;text-align:justify;font-size:12pt;"><div style="padding-left:0px;text-indent:0px;line-height:normal;padding-top:10px;"><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman;font-size:10pt;width:75.92592592592592%;border-collapse:collapse;text-align:left;"><tr><td colspan="3"></td></tr><tr><td width="24%"></td><td width="43%"></td><td width="33%"></td></tr><tr><td style="vertical-align:top;border-bottom:1px solid #000000;background-color:#d9d9d9;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-left:1px solid #000000;border-right:1px solid #000000;border-top:1px solid #000000;"><div style="text-align:center;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Grant Date</font></div></td><td style="vertical-align:top;border-bottom:1px solid #000000;background-color:#d9d9d9;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-left:1px solid #000000;border-right:1px solid #000000;border-top:1px solid #000000;"><div style="text-align:center;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Number of Shares of Common Stock Underlying Unexercised Options</font></div></td><td style="vertical-align:top;border-bottom:1px solid #000000;background-color:#d9d9d9;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-left:1px solid #000000;border-right:1px solid #000000;border-top:1px solid #000000;"><div style="text-align:center;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Option Expiration Date</font></div></td></tr><tr><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-left:1px solid #000000;border-right:1px solid #000000;border-top:1px solid #000000;"><div style="text-align:center;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">2/28/2011</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-left:1px solid #000000;border-right:1px solid #000000;border-top:1px solid #000000;"><div style="text-align:center;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">6,514</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-left:1px solid #000000;border-right:1px solid #000000;border-top:1px solid #000000;"><div style="text-align:center;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">2/28/2021</font></div></td></tr><tr><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-left:1px solid #000000;border-right:1px solid #000000;border-top:1px solid #000000;"><div style="text-align:center;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">3/5/2012</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-left:1px solid #000000;border-right:1px solid #000000;border-top:1px solid #000000;"><div style="text-align:center;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">15,774</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-left:1px solid #000000;border-right:1px solid #000000;border-top:1px solid #000000;"><div style="text-align:center;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">3/5/2022</font></div></td></tr></table></div></div><div style="line-height:120%;padding-bottom:16px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div><div style="line-height:120%;padding-bottom:16px;text-align:justify;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;text-decoration:underline;">Restricted Stock</font></div><div style="line-height:120%;padding-bottom:16px;text-align:justify;font-size:12pt;"><div style="padding-left:0px;text-indent:0px;line-height:normal;padding-top:10px;"><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman;font-size:10pt;width:50.82304526748971%;border-collapse:collapse;text-align:left;"><tr><td colspan="2"></td></tr><tr><td width="36%"></td><td width="64%"></td></tr><tr><td style="vertical-align:top;border-bottom:1px solid #000000;background-color:#d9d9d9;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-left:1px solid #000000;border-right:1px solid #000000;border-top:1px solid #000000;"><div style="text-align:center;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Grant Date</font></div></td><td style="vertical-align:top;border-bottom:1px solid #000000;background-color:#d9d9d9;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-left:1px solid #000000;border-right:1px solid #000000;border-top:1px solid #000000;"><div style="text-align:center;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Number of Shares of Common Stock Subject to Award</font></div></td></tr><tr><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-left:1px solid #000000;border-right:1px solid #000000;border-top:1px solid #000000;"><div style="text-align:center;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">2/28/2011</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-left:1px solid #000000;border-right:1px solid #000000;border-top:1px solid #000000;"><div style="text-align:center;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">4,269</font></div></td></tr><tr><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-left:1px solid #000000;border-right:1px solid #000000;border-top:1px solid #000000;"><div style="text-align:center;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">3/5/2012</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-left:1px solid #000000;border-right:1px solid #000000;border-top:1px solid #000000;"><div style="text-align:center;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">6,060</font></div></td></tr></table></div></div><div style="line-height:120%;padding-bottom:16px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div><br><div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div></div><hr style="page-break-after:always"><a name="sfe438f77444f414f98c11dfb0c3dd749"></a><div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div></div><br><div style="line-height:120%;padding-bottom:16px;text-align:center;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;text-decoration:underline;">EXHIBIT C</font></div><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div><div style="line-height:120%;text-align:justify;text-indent:48px;font-size:12pt;"><font style="font-family:inherit;font-size:10pt;"></font><font style="font-family:inherit;font-size:12pt;">1.</font><font style="font-family:inherit;font-size:10pt;">&#160;&#160;&#160;&#160;</font><font style="font-family:inherit;font-size:12pt;">The following entities, together with all Affiliates thereof:</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div><div style="line-height:120%;text-align:justify;text-indent:96px;font-size:12pt;"><font style="font-family:inherit;font-size:10pt;"></font><font style="font-family:inherit;font-size:12pt;">Service Corporation International</font></div><div style="line-height:120%;text-align:justify;text-indent:96px;font-size:12pt;"><font style="font-family:inherit;font-size:10pt;"></font><font style="font-family:inherit;font-size:12pt;">Alderwoods Group, Inc.</font></div><div style="line-height:120%;text-align:justify;text-indent:96px;font-size:12pt;"><font style="font-family:inherit;font-size:10pt;"></font><font style="font-family:inherit;font-size:12pt;">Stewart Enterprises, Inc.</font></div><div style="line-height:120%;text-align:justify;text-indent:96px;font-size:12pt;"><font style="font-family:inherit;font-size:10pt;"></font><font style="font-family:inherit;font-size:12pt;">Keystone North America, Inc.</font></div><div style="line-height:120%;text-align:justify;text-indent:96px;font-size:12pt;"><font style="font-family:inherit;font-size:10pt;"></font><font style="font-family:inherit;font-size:12pt;">Meridian Mortuary Group, Inc.</font></div><div style="line-height:120%;text-align:justify;text-indent:96px;font-size:12pt;"><font style="font-family:inherit;font-size:10pt;"></font><font style="font-family:inherit;font-size:12pt;">StoneMor Partners LP</font></div><div style="line-height:120%;text-align:justify;text-indent:96px;font-size:12pt;"><font style="font-family:inherit;font-size:10pt;"></font><font style="font-family:inherit;font-size:12pt;">Saber Management LLC</font></div><div style="line-height:120%;text-align:justify;text-indent:96px;font-size:12pt;"><font style="font-family:inherit;font-size:10pt;"></font><font style="font-family:inherit;font-size:12pt;">Thomas Pierce &amp; Co.</font></div><div style="line-height:120%;text-align:justify;text-indent:96px;font-size:12pt;"><font style="font-family:inherit;font-size:10pt;"></font><font style="font-family:inherit;font-size:12pt;">Legacy Funeral Holdings, LLC</font></div><div style="line-height:120%;text-align:justify;text-indent:96px;font-size:12pt;"><font style="font-family:inherit;font-size:10pt;"></font><font style="font-family:inherit;font-size:12pt;">Northstar Memorial Group, LLC</font></div><div style="line-height:120%;text-align:justify;text-indent:96px;font-size:12pt;"><font style="font-family:inherit;font-size:10pt;"></font><font style="font-family:inherit;font-size:12pt;">Foundation Partners</font></div><div style="line-height:120%;text-align:justify;text-indent:96px;font-size:12pt;"><font style="font-family:inherit;font-size:10pt;"></font><font style="font-family:inherit;font-size:12pt;">The Signature Group</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div><div style="line-height:120%;text-align:justify;padding-left:48px;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">For purposes of the Agreement (and Exhibit C hereto), an &#8220;Affiliate&#8221; of an entity is a person that directly or indirectly controls, is under the control of or is under common control with such entity.</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:96px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:12pt;padding-left:48px;"><font style="font-family:inherit;font-size:12pt;">2.</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:justify;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">Any new entity which may hereafter be established which acquires any combination of five or more funeral homes and/or cemeteries.</font></div></td></tr></table><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:96px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:12pt;padding-left:48px;"><font style="font-family:inherit;font-size:12pt;">3.</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:justify;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">Any funeral home, cemetery or other death care enterprise which is managed by any entity described in 1 or 2 above.</font></div></td></tr></table><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div><br><div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div></div>	</body>
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