Document:

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                                                                   Exhibit 10.25

February 17, 2005

Larry Stapleton
1827 5th Avenue West
Seattle, Washington 98119

Dear Larry,

BSQUARE CORPORATION is pleased to extend to you an offer for employment as Vice
President of North America Sales. You will be paid bi-weekly at a rate
equivalent to an annual salary of $135,000. Your job classification is
Executive. You will be hired as an exempt employee, so you will not be entitled
to overtime. You will earn additional compensation through commissions and
bonus. Your commission rate will be equal to 10% of the commissions of the sales
executives that report to you. You will be eligible for an additional $12,500
bonus each quarter, based upon meeting certain goals and objectives mutually
agreed upon between you and your supervisor. Your bonus for calendar Q2 is
guaranteed.

BSQUARE CORPORATION extends the following benefits:

     -    medical, dental, vision, life and disability insurance,

     -    contributions to your Section 125 Unreimbursed Medical account,

     -    a 401(k) retirement plan,

     -    10 paid holidays and 15 days of paid time off, and

     -    Options to purchase 100,000 shares of company common stock. Such
          shares shall be Incentive Stock Options (ISOs), which vest 25%
          annually over four years in four equal installments. The strike price
          shall be the closing price of BSQUARE stock on your first day of
          employment. Stock options shall expire after 5 years. The award of
          these options is subject to approval by BSQUARE's Board of Directors.

Additionally, we have agreed that after one year of service to BSQUARE, you will
be eligible for a three month severance in the event that your employment with
BSQUARE is terminated by BSQUARE or its successor. Such severance will not be
payable if you are terminated for cause, neglect of duty or poor job
performance, all of which are defined in Attachment A.

BSQUARE CORPORATION is an established product development and engineering
contracting company with a promising outlook. Your meaningful participation will
greatly enhance our ability to retain our current contracting obligations and,
in the future, will enable BSQUARE CORPORATION to pursue and secure other
contracts. YOUR EMPLOYMENT IS AT-WILL AND ACCORDINGLY, YOU OR BSQUARE
CORPORATION MAY TERMINATE THIS EMPLOYMENT RELATIONSHIP AT ANY TIME WITH OR
WITHOUT NOTICE OR CAUSE.

This offer is contingent upon compliance with the Immigration Reform and Control
Act of 1986. The Act requires you to establish your identity and employment
eligibility. To do so, on your start date you will be required to complete
Section I of the Employment Eligibility Verification Form, I-9.

Please signify your acceptance of this offer by signing a copy of this letter
and the attached Proprietary Rights Agreement and returning both within 5
business days of receipt.

On behalf of BSQUARE CORPORATION, I hope to welcome you aboard. If you have any
questions or concerns, please feel free to contact me.

Sincerely,                              Accepted By:

-------------------------------------   ----------------------------------------
Scott Mahan                      Date   Larry Stapleton                     Date
Vice President of Finance, CFO
BSQUARE Corporation

<PAGE>

                                  ATTACHMENT A

     For purposes of this agreement "cause" means and is limited to dishonesty,
fraud, commission of a felony or of a crime involving moral turpitude,
destruction or theft of Company property, physical attack to a fellow employee,
intoxication at work, use of controlled substances or alcohol to an extent that
materially impairs Employee's performance of his or her duties, willful
malfeasance or gross negligence in the performance of Employee's duties,
violation of law in the course of employment that has a material adverse impact
on Company or its employees, Employee's failure or refusal to perform Employee's
duties, Employee's failure or refusal to follow reasonable instructions or
directions, misconduct materially injurious to Company, neglect of duty, poor
job performance, or any material breach of Employee's duties or obligations to
Company that results in material harm to Company.

     For purposes of this agreement, "neglect of duty" means and is limited to
the following circumstances: (i) Employee has, in one or more material respects,
failed or refused to perform Employee's job duties in a reasonable and
appropriate manner (including failure to follow reasonable directives), (ii) the
supervisor, or a duly appointed representative of the supervisor, has counseled
Employee in writing about the neglect of duty and given Employee a reasonable
opportunity to improve, and (iii) Employee's neglect of duty either has
continued at a material level after a reasonable opportunity to improve or has
reoccurred at a material level within one year after Employee was last
counseled.

     For purposes of this agreement, "poor job performance" means and is limited
to the following circumstances: (i) Employee has, in one or more material
respects, failed to perform Employee's job duties in a reasonable and
appropriate manner, (ii) the supervisor, or a duly appointed representative of
the supervisor, has counseled Employee in writing about the performance problems
and given Employee a reasonable opportunity to improve, and (iii) Employee's
performance problems either have continued at a material level after a
reasonable opportunity to improve or the same or similar performance problems
have reoccurred at a material level within one year after Employee was last
counseled.

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February 2, 2006

Mr. Larry Stapleton
1827 5th Ave W
Seattle, WA 98119

Dear Larry,

I am please to provide you with the following update to your employment contract
with BSQUARE Corporation.

If BSQUARE Corporation terminates your employment when neither cause (as defined
in Attachment A to this letter) nor permanent disability exists, and provided
that you release BSQUARE Corporation and its agents from any and all claims in a
signed, written release satisfactory in form and substance to BSQUARE
Corporation, BSQUARE Corporation shall pay you an amount equal to four months of
your base salary in severance. Any severance payment shall be paid out at your
normal salary rate in a lump sum, and will be subject to normal payout
deductions, subject to and following your execution of the written release.

If you have any concerns or questions, please feel free to contact me.

Sincerely,

Brian T. Crowley
President and CEO
BSQUARE CORPORATION

<PAGE>

                                  ATTACHMENT A

     For purposes of this agreement "cause" means and is limited to dishonesty,
fraud, commission of a felony or of a crime involving moral turpitude,
destruction or theft of Company property, physical attack to a fellow employee,
intoxication at work, use of narcotics or alcohol to an extent that materially
impairs Employee's performance of his or her duties, willful malfeasance or
gross negligence in the performance of Employee's duties, violation of law in
the course of employment that has a material adverse impact on Company or its
employees, Employee's failure or refusal to perform Employee's duties,
Employee's failure or refusal to follow reasonable instructions or directions,
misconduct materially injurious to Company, neglect of duty, poor job
performance, or any material breach of Employee's duties or obligations to
Company that results in material harm to Company.

     For purposes of this agreement, "neglect of duty" means and is limited to
the following circumstances: (i) Employee has, in one or more material respects,
failed or refused to perform Employee's job duties in a reasonable and
appropriate manner (including failure to follow reasonable directives), (ii) the
President has counseled Employee in writing about the neglect of duty and given
Employee a reasonable opportunity to improve, and (iii) Employee's neglect of
duty either has continued at a material level after a reasonable opportunity to
improve or has reoccurred at a material level within one year after Employee was
last counseled.

     For purposes of this agreement, "poor job performance" means and is limited
to the following circumstances: (i) Employee has, in one or more material
respects, failed to perform Employee's job duties in a reasonable and
appropriate manner, (ii) the President has counseled Employee in writing about
the performance problems and given Employee a reasonable opportunity to improve,
and (iii) Employee's performance problems either have continued at a material
level after a reasonable opportunity to improve or the same or similar
performance problems have reoccurred at a material level within one year after
Employee was last counseled.exv10w19

 

Exhibit 10.19

EMPLOYMENT AGREEMENT

     THIS AGREEMENT, dated November 4, 2005, is between CARRIAGE SERVICES, INC., a Delaware
corporation (the “Company”), and JOSEPH SAPORITO, a resident of Harris County, Texas (the
“Employee”).

     1. Employment Term. The Company hereby continues the employment of the Employee for a
term commencing as of the date first above written and, subject to earlier termination as provided
in Section 7 hereof, continuing until September 30, 2010 (such term being herein referred to as the
“term of this Agreement”). The Employee agrees to accept such employment and to perform the
services specified herein, all upon the terms and conditions hereinafter stated.

     2. Duties. The Employee shall serve the Company and shall report to, and be subject
to the general direction and control of the Chief Executive Officer of the Company. The Employee
shall perform the management and administrative duties of Executive Vice President and Chief
Financial Officer of the Company. The Employee shall also serve as Executive Vice President and
Chief Financial Officer of any subsidiary of the Company as requested by the Company, and the
Employee shall perform such other duties as are from time to time assigned to him by the Chief
Executive Officer as are not inconsistent with the provisions hereof.

     3. Extent of Service. The Employee shall devote his full business time and attention
to the business of the Company, and, except as may be specifically permitted by the Company, shall
not be engaged in any other business activity during the term of this Agreement. The foregoing
shall not be construed as preventing the Employee from making passive investments in other
businesses or enterprises, provided, however, that such investments will not require services on
the part of the Employee which would in any way impair the performance of his duties under this
Agreement.

     4. Compensation. During the term of this Agreement, the Company shall pay the
Employee a salary of $22,500.00 per full calendar month of service completed, appropriately
prorated for partial months at the commencement and end of the term of this Agreement. The
Employee’s salary and benefits will be reviewed annually, but any change therein shall remain in
the sole discretion of the Company, acting through the Compensation Committee of its Board of
Directors. The salary set forth herein shall be payable in bi-weekly installments in accordance
with the payroll policies of the Company in effect from time to time during the term of this
Agreement. The Company shall have the right to deduct from any payment of all compensation to the
Employee hereunder (x) any federal, state or local taxes required by law to be withheld with
respect to such payments, and (y) any other amounts specifically authorized to be withheld or
deducted by the Employee.

     5. Benefits. In addition to the base salary under Section 4, the Employee shall be
entitled to participate in the following benefits during the term of this Agreement:

     (i) Consideration for an annual performance-based bonus within the sole discretion of
the Company, as may be recommended by the Chief Executive Officer and

 

 

approved by the Compensation Committee of the Company’s Board of Directors, with a
maximum bonus target of 50% of base salary.

     (ii) Eligibility for consideration of incentive stock options or stock grants under the
terms of one or more of the Company’s incentive plans.

     (iii) Four weeks of paid vacation in each calendar year, subject to the Company’s
personnel policies respecting such matters.

     (iv) Participation in the Company’s group health and hospitalization program, and
inclusion in such other employee benefits, as are available generally to executive-level
employees of the Company.

     6. Certain Additional Matters. The Employee agrees that at all times during the term
of this Agreement and for a period of two years following any cessation of employment with the
Company:

     (a) The Employee will not knowingly or intentionally do or say any act or thing which
will or may impair, damage or destroy the goodwill and esteem for the Company of its
suppliers, employees, patrons, customers and others who may at any time have or have had
business relations with the Company.

     (b) The Employee will not reveal to any third person any difference of opinion, if
there be such at any time, between him and the management of the Company as to its
personnel, policies or practices.

     (c) The Employee will not knowingly or intentionally do any act or thing detrimental to
the Company or its business.

     7. Termination.

     (a) Death. If the Employee dies during the term of this Agreement and while in
the employ of the Company, this Agreement shall automatically terminate and the Company
shall have no further obligation to the Employee or his estate except that the Company shall
pay the Employee’s estate that portion of the Employee’s base salary under Section 4 accrued
through the date on which the Employee’s death occurred. Such payment of base salary to the
Employee’s estate shall be made in the same manner and at the same times as they would have
been paid to the Employee had he not died.

     (b) Disability. If during the term of this Agreement, the Employee shall be
prevented from performing his duties hereunder by reason of disability, and such disability
shall continue for a period of six months, then the Company may terminate this Agreement at
any time after the expiration of such six-month period. For purposes of this Agreement, the
Employee shall be deemed to have become disabled when the Company, upon the advice of a
qualified physician, shall have determined that the Employee has become physically or

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mentally incapable (excluding infrequent and temporary absences due to ordinary illness)
of performing his duties under this Agreement. In the event of a termination pursuant to
this paragraph (b), the Company shall be relieved of all its obligations under this
Agreement, except that the Company shall pay to the Employee (or his estate in the event of
his subsequent death) the Employee’s base salary under Section 4 through the date on which
such termination shall have occurred, reduced during such period by the amount of any
benefits received under any disability policy maintained by the Company. All such payments
to the Employee or his estate shall be made in the same manner and at the same times as they
would have been paid to the Employee had he not become disabled.

     (c) Discharge for Cause. Prior to the end of the term of this Agreement, the
Company may discharge the Employee for Cause and terminate this Agreement. In such case
this Agreement shall automatically terminate and the Company shall have no further
obligation to the Employee or his estate other than to pay to the Employee (or his estate in
the event of his subsequent death) that portion of the Employee’s salary accrued through the
date of termination. For purposes of this Agreement, the Company shall have “Cause” to
discharge the Employee or terminate the Employee’s employment hereunder upon (i) the
Employee’s commission of any felony or any other crime involving moral turpitude, (ii) the
Employee’s failure or refusal to perform all of his duties, obligations and agreements
herein contained or imposed by law, including his fiduciary duties, to the reasonable
satisfaction of the Company, (iii) the Employee’s commission of acts amounting to gross
negligence or willful misconduct to the material detriment of the Company, or (iv) the
Employee’s breach of any provision of this Agreement or uniformly applied provisions of the
Company’s employee handbook or other personnel policies, including without limitation, its
Code of Business Conduct and Ethics.

     (d) Discharge Without Cause. Prior to the end of the term of this Agreement,
the Company may discharge the Employee without Cause (as defined in paragraph (c) above) and
terminate this Agreement. In such case this Agreement shall automatically terminate and the
Company shall have no further obligation to the Employee or his estate, except that the
Company shall continue to pay to the Employee (or his estate in the event of his subsequent
death) the Employee’s base salary under Section 4, and shall (if Employee is then eligible
to elect continuation coverage under the Consolidated Omnibus Budget Reconciliation Act
(“COBRA”) and properly elects such coverage) pay on the Employee’s behalf the premiums under
COBRA for the Company’s group health and hospitalization insurance coverage then in effect,
in each case for a period of twelve months following the date of discharge, except as
otherwise provided in paragraph (e) below. All such payments to the Employee or his estate
shall be made in the same manner and at the same times as they would have been paid to the
Employee had he not been discharged.

     (e) Corporate Change. If there occurs a Corporate Change (as defined in the
Company’s 1996 Stock Option Plan), then the Employee may thereafter voluntarily resign his
employment hereunder, and in such event, or in case of a discharge without Cause following a
Corporate Change, in either case during the term of this Agreement, then this Agreement
shall automatically terminate and the Company shall have no further obligation to

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the Employee or his estate, except that the Company shall continue to pay to the
Employee (or his estate in the event of his subsequent death) the Employee’s base salary
under Section 4, and shall (if Employee is then eligible to elect continuation coverage
under COBRA and properly elects such coverage) pay on the Employee’s behalf the premiums
under COBRA for the Company’s group health and hospitalization insurance coverage then in
effect, in each case for a period of twelve months following the date of discharge, or until
expiration of the term of this Agreement (whichever is longer). All such payments to the
Employee or his estate shall be made in the same manner and at the same times as they would
have been paid to the Employee had he not resigned or been discharged. As a condition to
making any such payments under this paragraph (e) or paragraph (d) above, the Employee shall
execute and deliver to the Company the Employee’s release of all claims against the Company
and its affiliates, other than the right to receive such payments, in form and substance
reasonably acceptable to the Company. No such voluntary resignation, nor any discharge
hereunder, whether or not following a Corporate Change, will relieve the Employee of his
obligations under Sections 6, 8 and 9 hereunder.

     8. Restrictive Covenants. The Employee acknowledges that in the course of his
employment with the Company as a member of the Company’s senior executive and management team, he
will have access to confidential and proprietary business information of the Company and its
affiliates, and will develop through such employment business systems, methods of doing business,
and contacts within the death care industry, all of which will help to identify him with the
business and goodwill of the Company. Consequently, it is important that the Company protect its
interests in regard to such matters from unfair competition. The parties therefore agree that for
so long as the Employee shall remain employed by the Company and, if the employment of the Employee
ceases for any reason (including voluntary resignation), then for a period of two (2) years
thereafter, the Employee shall not, directly or indirectly:

     (i) alone or for his own account, or as a officer, director, shareholder, partner,
member, trustee, employee, consultant, advisor, agent or any other capacity of any
corporation, partnership, joint venture, trust, or other business organization or entity,
encourage, support, finance, be engaged in, interested in, or concerned with (x) any of the
companies and entities described on Schedule I hereto, except to the extent that any
activities in connection therewith are confined exclusively outside the Continental United
States, or (y) any other business within the death care industry having an office or being
conducted within a radius of fifty (50) miles of any funeral home, cemetery or other death
care business owned or operated by the Company or any of its subsidiaries at the time of
such termination;

     (ii) induce or assist anyone in inducing in any way any employee of the Company or any
of its subsidiaries to resign or sever his or her employment or to breach an employment
contract with the Company or any such subsidiary; or

     (iii) 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 or may be in the funeral, mortuary, crematory, cemetery or
burial insurance business or in any business related thereto (x) as part of any of the

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companies or entities listed on Schedule I, or (y) otherwise within a radius of fifty
(50) miles of any funeral home, cemetery or other death care business owned or operated by
the Company or any of its subsidiaries at the time of such termination.

     Notwithstanding the foregoing, the above covenants shall not prohibit the passive ownership of
not more than one percent (1%) of the outstanding voting securities of any entity within the death
care industry. The foregoing covenants shall not be held invalid or unenforceable because of the
scope of the territory or actions subject hereto or restricted hereby, or the period of time within
which such covenants respectively are operative, but the maximum territory, the action subject to
such covenants and the period of time they are enforceable are subject to any determination by a
final judgment of any court which has jurisdiction over the parties and subject matter.

     9. Confidential Information. The Employee acknowledges that in the course of his
employment by the Company he will receive certain trade secrets, management methods, financial and
accounting data (including but not limited to reports, studies, analyses, spreadsheets and other
materials and information), operating techniques, prospective acquisitions, employee lists,
training manuals and procedures, personnel evaluation procedures, and other confidential
information and knowledge concerning the business of the Company and its affiliates (hereinafter
collectively referred to as “Information”) which the Company desires to protect. The Employee
understands that the Information is confidential and he agrees not to reveal the Information to
anyone outside the Company so long as the confidential or secret nature of the Information shall
continue. The Employee further agrees that he will at no time use the Information in competing
with the Company. Upon termination of this Agreement, the Employee shall surrender to the Company
all papers, documents, writings and other property produced by his or coming into his possession by
or through his employment or relating to the Information and the Employee agrees that all such
materials will at all times remain the property of the Company.

     10. Remedies. The parties recognize that the services to be rendered under this
Agreement by the Employee are special, unique, and of extraordinary character, and that in the
event of the breach by the Employee of the covenants contained in Section 8 or Section 9 hereof,
the Company may suffer irreparable harm as a result. The parties therefore agree that, in the
event of any breach or threatened breach of any of such covenants, the Company shall be entitled to
specific performance or injunctive relief, or both, and may, in addition to and not in lieu of any
claim or proceeding for damages, institute and prosecute proceedings in any court of competent
jurisdiction to enforce through injunctive relief such covenants. In addition, the Company may, if
it so elects, suspend (if applicable) any payments due under this Agreement pending any such breach
and offset against any future payments the amount of the Company’s damages arising from any such
breach. The Employee agrees to waive and hereby waives any requirement for the Company to secure
any bond in connection with the obtaining of such injunction or other equitable relief.

     11. Notices. All notices, requests, consents and other communications under this
Agreement shall be in writing and shall be deemed to have been delivered on the date personally
delivered or three business days after the date mailed, postage prepaid, by certified mail, return
receipt requested, or when sent by telex or telecopy and receipt is confirmed, if addressed to the
respective parties as follows:

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	If to the Employee:

	 	Mr. Joseph Saporito
	 

	 	P. O. Box 27591

Houston, TX 77227-7591
	 
	 	 
	If to the Company:

	 	Carriage Services, Inc.
	 

	 	3040 Post Oak Blvd, Suite 300
	 

	 	Houston, Texas 77056
	 

	 	Attn: Chief Executive Officer

Either party hereto may designate a different address by providing written notice of such new
address to the other party hereto.

     12. Severability. Whenever possible, each provision of this Agreement shall be
interpreted in such manner as to be effective and valid under applicable law but if any provision
of this Agreement shall be prohibited by or invalid under applicable law, such provision shall be
ineffective to the extent of such provision or invalidity, without invalidating the remainder of
such provision or the remaining provisions of this Agreement.

     13. Assignment. This Agreement may not be assigned by the Employee. Neither the
Employee nor his estate shall have any right to commute, encumber or dispose of any right to
receive payments hereunder, it being agreed that such payments and the right thereto are
nonassignable and nontransferable.

     14. Binding Effect. Subject to the provisions of Section 13 of this Agreement, this
Agreement shall be binding upon and inure to the benefit of the parties hereto, the Employee’s
heirs and personal representatives, and the successors and assigns of the Company.

     15. Captions. The section and paragraph headings in this Agreement are for reference
purposes only and shall not affect in any way the meaning or interpretation of this Agreement.

     16. Complete Agreement. This Agreement represents the entire agreement between the
parties concerning the subject hereof and supersedes all prior agreements and arrangements between
the parties concerning the subject thereof. Without limiting the generality of the foregoing, this
Agreement supersedes and replaces the Employment Agreement between the parties dated September 16,
2002. This Agreement does not affect or impair any provisions of the Company’s employee handbook,
personnel policies or Code of Business Conduct and Ethics, all of which shall remain binding on the
Employee.

     17. Governing Law; Venue. A substantial portion of the Employee’s duties under this
Agreement shall be performed at the Company’s corporate headquarters in Houston, Texas, and this
Agreement has been substantially negotiated and is being executed and delivered in the State of
Texas. This Agreement shall be construed and enforced in accordance with and governed by the laws
of the State of Texas. Any suit, claim or proceeding arising under or in connection with this
Agreement or the employment relationship evidenced hereby must be brought, if at all, in a state

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district court in Harris County, Texas or federal district court in the Southern District of
Texas, Houston Division. Each party submits to the jurisdiction of such courts and agrees not to
raise any objection to such jurisdiction.

     18. Counterparts. This Agreement may be executed in multiple original counterparts,
each of which shall be deemed an original, but all of which together shall constitute one and the
same instrument.

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date and year
first above written.

	 	 	 	 	 	 	 
	 	 	CARRIAGE SERVICES, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Melvin C. Payne	 	 
	 

	 	 	 	 	 	 
	 	 	 	 	MELVIN C. PAYNE, Chief Executive Officer
	 
	 	 	 	 	 	 
	 	 	  /s/ Joseph Saporito	 	 
	 	 	 	 	 
	 	 	JOSEPH SAPORITO	 	 

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SCHEDULE I

TO

EMPLOYMENT AGREEMENT

(JOSEPH SAPORITO, III)

	1.	 	The following entities, together with all Affiliates thereof:

Service Corporation International

Alderwoods Group, Inc.

Stewart Enterprises, Inc.

Keystone North America, Inc.

Meridian Mortuary Group, Inc.

StoneMor Partners LP

Saber Management LLC

Thomas Pierce & Co.

	 	 	For purposes of the foregoing, an “Affiliate” of an entity is a person that directly or
indirectly controls, is under the control of or is under common control with such entity.
	 
	2.	 	Any new entity which may hereafter be established which acquires any combination of ten or
more funeral homes and/or cemeteries from any of the entities described in 1 above.
	 
	3.	 	Any funeral home, cemetery or other death care enterprise which is managed by any entity
described in 1 or 2 above.

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