Document:

EXHIBIT 10.1

                                 AMENDMENT NO. 3

      This  Amendment No. 3 dated as of September 15, 2000  ("Agreement"),  is
among Carriage Services,  Inc., a Delaware  corporation (the "Borrower"),  the
lenders  signatory to the Credit  Agreement  described below (the  "Lenders"),
and Bank of  America,  N.A.,  as  administrative  agent  (the  "Administrative
Agent") for the Lenders.

                                 INTRODUCTION

      Reference is made to the Credit Agreement dated as of June 14, 1999 (as
modified, the "Credit Agreement"), among the Borrower, the Lenders, and
NationsBank, N.A. d/b/a Bank of America, N.A., predecessor in interest to the
Administrative Agent. The Borrower, the Lenders, and the Administrative Agent
have agreed to modify certain financial covenants, decrease the amount of the
Commitments under the Credit Agreement to $100,000,000 by ratably decreasing the
Commitment of each Lender, and to make other amendments to the Credit Agreement
as set forth herein in connection therewith.

      THEREFORE, in connection with the foregoing and for other good and
valuable consideration, the Borrower, the Administrative Agent, and the Lenders
hereby agree as follows:

Section 1. AMENDMENT.

   (a)      The following definition of "Amendment No. 3" is added to Section
1.01 of the Credit Agreement in the appropriate alphabetical order:

            "AMENDMENT NO. 3" means the Amendment No. 3 dated as of
      September 15, 2000, among the Borrower,  the Administrative Agent, and the
      Lenders amending the terms of this Agreement.

            (b) The definition of "APPLICABLE MARGIN" is modified by replacing
the paragraph immediately following the pricing grid in its entirety with the
following:

      The foregoing ratio shall be deemed to be equal to or greater than 50%,
      but less than 55% from the effective date of Amendment No. 3 until
      redetermination by the Administrative Agent. The Administrative Agent
      shall thereafter calculate the foregoing ratio and the resulting
      Applicable Margin based upon the most recent financial statements dated as
      of the end of a fiscal quarter delivered to the Administrative Agent
      pursuant to Section 5.06(c); PROVIDED that the foregoing ratio shall be
      deemed to be the greater of (y) the actual ratio so calculated and (z)
      50%. Any adjustments to the Applicable Margin shall become effective on
      the first day of the month following the month during which such financial
      statements are required to be delivered to the Administrative Agent, but
      not before, provided, however, that if such financial statements are not
      delivered when required

<PAGE>
      hereunder, the foregoing ratio shall be deemed to be greater than 55% and
      the Applicable Margin shall increase to the maximum percentage amount set
      forth in the table above from the date when such financial statements are
      due until three days after the date such financial statements are actually
      delivered, when the Administrative Agent shall recalculate the foregoing
      ratio, based upon such delivered financial statements, and the resulting
      Applicable Margin and the same shall become effective.

      (c) The definition of "EBITDA" is modified by replacing such definition in
its entirety with the following:

            "EBITDA" means, with respect to the Borrower and for any period of
      determination, (a) Net Income for such period PLUS (b) to the extent
      deducted in determining Net Income, without duplication, Interest Expense,
      income taxes and other taxes measured by Net Income, depreciation and
      amortization and payments by the Borrower in respect of Deferred Purchase
      Price, in each case, for such period, PLUS (c) Restructuring Charges for
      such period, in an aggregate amount not to exceed $161,000,000 on a
      pre-tax basis.

      (d) The definition of "ELIGIBLE ASSIGNEE" is modified by replacing
subsection (c) of such definition in its entirety with the following:

            (c) Service  Corporation  International  (or its Affiliates)
      or Southwest Bank of Texas, N.A.,

      (e) The definition of "FIXED CHARGE COVERAGE RATIO" is modified by
replacing such definition in its entirety with the following:

            "FIXED CHARGE COVERAGE RATIO" means, with respect to the Borrower
      and for any period of determination, the ratio of (i) EBITDA for such
      period MINUS the Borrower's cash taxes paid during such period and PLUS
      any cash tax refunds received by the Borrower during such period to (ii)
      the sum of (A) Interest Expense during such period, PLUS (B) scheduled and
      required principal payments during such period in respect of Total Funded
      Debt PLUS, (C) to the extent not included in clause (A) or (B) above in
      this definition, scheduled and required payments made by the Borrower in
      respect of Deferred Purchase Price for such period.

      (f) The following definition of "RESTRUCTURING CHARGES" is inserted into
Section 1.01 of the Credit Agreement in the appropriate alphabetical order:

            "RESTRUCTURING CHARGES" means, with respect to the Borrower,
      non-recurring restructuring charges related to the cumulative effect of
      changes in accounting in connection with the implementation of Securities
      and Exchange Commission Staff Accounting Bulletin No. 101-Revenue
      Recognition in Financial Statements, organizational changes, sales of
      assets, and write-down of

                                       -2-
<PAGE>
      assets, in each case, to the extent the same are recognized for financial
      reporting purposes for periods through June 30, 2001 (or, as to up to
      $5,000,000 of such charges, through June 30, 2002).

      (g) The definition of "SUBSIDIARY" is modified by replacing such
definition in its entirety with the following:

            "SUBSIDIARY" means, with respect to any Person, any other Person
      (other than an Unrestricted Subsidiary), a majority of whose outstanding
      Voting Securities (other than director's qualifying shares) shall at any
      time be owned by such Person or one or more Subsidiaries of such Person.

      (h) The following definition of "UNRESTRICTED SUBSIDIARY" is inserted into
Section 1.01 of the Credit Agreement in the appropriate alphabetical order:

            "UNRESTRICTED SUBSIDIARY" means any Person so designated by the
      Borrower in writing to the Administrative Agent, PROVIDED that a majority
      of such Person's outstanding Voting Securities, but less than 100% of such
      outstanding Voting Securities, are owned by the Borrower or one or more of
      its Subsidiaries.

      (i)   Section 2.01 is replaced in its entirety with the following:

      Section 2.01. COMMITMENT TO MAKE ADVANCES. Each Lender severally agrees,
      on the terms and conditions set forth in this Agreement, to make Advances
      to the Borrower from time-to-time on any Business Day during the period
      from the date of this Agreement until the Maturity Date in an aggregate
      amount not to exceed at any time outstanding (a) the amount set opposite
      such Lender's name on the signature pages of Amendment No. 3 as its
      Commitment, or if such Lender has entered into any Assignment and
      Acceptance, the amount set forth for such Lender as its Commitment in the
      Register maintained by the Administrative Agent pursuant to Section
      9.06(c), as such amount may be reduced pursuant to Section 2.05 (such
      Lender's "Commitment") LESS (b) such Lender's Pro Rata Share of the Letter
      of Credit Exposure at such time LESS (c) such Lender's Pro Rata Share of
      the Swing Line Loan at such time. Up to two Borrowings outstanding at any
      given time may, in the case of Borrowings consisting of Base Rate Advances
      or of Eurodollar Rate Advances, be in an aggregate amount of not less than
      $1,000,000 each and in integral multiples of $1,000,000 in excess thereof
      (including additions thereto by a continuation or Conversion pursuant to
      Section 2.02(b)). Each other Borrowing shall, in the case of Borrowings
      consisting of Base Rate Advances or of Eurodollar Rate Advances, be in an
      aggregate amount not less than $5,000,000 and in integral multiples of
      $1,000,000 in excess thereof (including additions thereto by a
      continuation or Conversion pursuant to Section 2.02(b)). In each case,
      Borrowings shall consist of Advances of the same Type made (or continued
      or Converted pursuant to Section 2.02(b), as applicable) on the same day
      by the Lenders ratably according to their respective Commitments. Within
      the limits of each Lender's Commitment and subject to the other terms and

                                       -3-
<PAGE>
      conditions of this Agreement, the Borrower may from time to time borrow,
      prepay pursuant to Section 2.08 and reborrow under this Section 2.01.

      (j) Section 2.14 (a)(i)(A)(1) of the Credit Agreement is amended by
replacing the reference therein to $10,000,000 with a reference to $20,000,000.

      (k) Sections 5.01, 5.06(p), and 7.01 (d), (e), and (f) of the Credit
Agreement are amended by (i) deleting therefrom each reference to "Subsidiary"
and replacing each with a reference to "Subsidiary or Unrestricted Subsidiary"
or "Subsidiary and Unrestricted Subsidiary," as appropriate, and (ii) deleting
therefrom each reference to "Subsidiaries" and replacing each with a reference
to "Subsidiaries or Unrestricted Subsidiaries" or "Subsidiary and Unrestricted
Subsidiaries," as appropriate.

      (l) Section 5.04 of the Credit Agreement is amended by replacing such
Section in its entirety with the following:

            5.04 PAYMENT OF TAXES, ETC. The Borrower will pay and discharge, and
      cause each of its Subsidiaries and Unrestricted Subsidiaries to pay and
      discharge, before the same shall become delinquent, (a) all taxes,
      assessments and governmental charges or levies imposed upon it or upon its
      income or profits or Property that are material in amount prior to the
      date on which penalties attach thereto and (b) all lawful claims that are
      material in amount which, if unpaid, might by law become a Lien upon any
      Property of the Borrower or any Subsidiary; PROVIDED, HOWEVER, that
      neither the Borrower nor any such Subsidiary or Unrestricted Subsidiary
      shall be required to pay or discharge any such tax, assessment, charge,
      levy, or claim which is being contested in good faith and by appropriate
      proceedings, and with respect to which reserves in conformity with GAAP
      have been provided.

      (m) Section 5.08 of the Credit Agreement is amended by renumbering the
existing Section 5.08 as subsection 5.08(a) and adding the following subsection
5.08(b):

            (b) Upon the occurrence of any Event of Default, the Borrower shall
      cause all Unrestricted Subsidiaries to promptly execute and deliver to the
      Administrative Agent a Joinder Agreement with such modifications thereto
      as the Administrative Agent may reasonably request for the purpose of
      joining such Persons as parties to the Guaranty. In connection therewith,
      the Borrower shall provide, contemporaneously with the execution and
      delivery of each such Joinder Agreement, corporate documentation (to the
      extent not previously provided to the Administrative Agent) and, if
      requested by the Administrative Agent, opinion letters reasonably
      satisfactory to the Administrative Agent reflecting the corporate status
      of each such Unrestricted Subsidiary and the enforceability of such
      Joinder Agreement.

      (n) Section 6.06(a) of the Credit Agreement is amended by adding, in
appropriate numerical order, the following subsection (viii):

                                       -4-
<PAGE>
            (viii) investments in Unrestricted Subsidiaries, provided that (A)
      the business and activities thereof are directly or indirectly reasonably
      related in whole or in material part to the death care industry, and (B)
      the total amount of investments by Borrower and its Subsidiaries in
      Unrestricted Subsidiaries shall not exceed $5,000,000.

      (o) Section 6.07(c) of the Credit Agreement is amended by replacing such
Section in its entirety with the following:

            (c) (i) the amount of the consideration paid or contributed for such
      Acquisition (including all cash paid and Property contributed for such
      Acquisition, the amount of any liabilities (including unfunded Pre-need
      Obligations) assumed, and Deferred Purchase Price, but excluding the value
      of any Common Stock or any preferred stock (including, but not limited to,
      Redeemable Preferred Stock) that is not prohibited by Section 6.05 of this
      Agreement, of the Borrower or its Subsidiaries transferred or issued as
      consideration for such Acquisition), does not, at the time of the making
      of such Acquisition, exceed 5% of the Borrower's Net Worth as reflected on
      (A) the most recent financial statements of the Borrower delivered to the
      Lenders pursuant to Section 5.06(c) or (B) any certificate delivered by
      the Borrower to the Administrative Agent setting forth, in reasonable
      detail, a calculation of the Borrower's Net Worth as of time of making
      such Acquisition, and (ii) the aggregate of all such consideration paid or
      contributed in connection with all Acquisitions (determined as set forth
      above) during the preceding four fiscal quarters does not, at the time of
      the making of such Acquisition, exceed 10% of the Borrower's Net Worth as
      reflected on such financial statements or certificate; and

      (p) Clause (a) of Section 6.09 of the Credit Agreement is amended by
replacing such clause in its entirety with the following:

            (a) any investment in any Affiliate (other than a Subsidiary of the
      Borrower, and except as permitted in Section 6.06(a)(viii));

      (q) Section 6.15 of the Credit Agreement is amended by replacing such
Section in its entirety with the following:

            Section 6.15 [Intentionally Deleted]

      (r) Section 6.16 of the Credit Agreement is amended by replacing such
Section in its entirety with the following:

            Section 6.16 NET WORTH The Borrower will not permit at any time its
      Net Worth to be less than an amount equal to the difference of (y) the sum
      of (a) $275,000,000, PLUS (b) 50% of the Borrower's Net Income for each
      fiscal quarter

                                       -5-
<PAGE>
      ending on or after June 30, 1999, during which Borrower had positive Net
      Income PLUS (c) 100% of the increases in Net Worth from any sale or
      issuance of any equity securities, including Qualified Preferred Stock
      (other than the Trust Preferred Stock), of, or any other additions to
      capital by, the Borrower or its Subsidiaries during each fiscal quarter
      ending on or after March 31, 1999, MINUS (z) for each fiscal quarter
      ending after June 30, 2000, the sum of (a) Restructuring Charges, in an
      aggregate amount not to exceed $137,000,000 on an after-tax basis PLUS (b)
      payments made to sellers in connection with Acquisitions pursuant to
      guaranties by the Borrower that the stock component of the purchase price
      would achieve certain agreed-upon minimum levels of market price, in an
      aggregate amount not to exceed $11,700,000. The foregoing calculation
      shall be made without giving effect to any unrealized holding gain or loss
      related to the mark-to-market of the Borrower's "available for sale"
      securities pursuant to Financial Accounting Standards Board Bulletin
      No.115 or any change in the fair value of any interest rate swap that
      qualifies as a cash flow hedge pursuant to Financial Accounting Standards
      Board Bulletin No 133.

      (s) The Credit Agreement is amended by adding, in appropriate numerical
order, the following Section 6.17:

            6.17 TOTAL FUNDED DEBT TO EBITDA. As of the last day of each fiscal
      quarter set forth below, the Borrower will not permit the ratio of its
      Total Funded Debt (excluding the Trust Notes) to its EBITDA (plus, without
      duplication, the EBITDA for such period of any Person or assets acquired
      by the Borrower by Acquisition during such period, if so requested by the
      Borrower, as provided below) for the preceding four fiscal quarters then
      ended to be greater than the applicable ratio set forth below:

            FISCAL QUARTER(S) ENDED:                  MAXIMUM RATIO:
            -----------------------                   --------------
            9/30/00 -- 12/31/00                       4.75 to 1.00
            3/31/01                                   4.60 to 1.00
            6/30/01                                   4.45 to 1.00
            9/30/01 - 9/30/02                         4.35 to 1.00
            12/31/02 - 9/30/03                        4.00 to 1.00
            12/31/03 and thereafter                   3.75 to 1.00

      For purposes of this Section 6.17, whether or not the Acquisition is not
      treated as a pooling transaction, the financial results of the acquired
      Person or assets shall, if requested in writing by the Borrower to the
      Administrative Agent, be added to the applicable financial results of the
      Borrower in the same manner as if such transaction were a pooling
      transaction with such adjustments thereto as are required to reflect
      nonrecurring items (both positive and negative) that are permitted to be
      adjusted in accordance with the pro forma financial statement guidelines
      established by the Securities and Exchange Commission for acquisition
      accounting for reported acquisitions by public companies or as approved by
      the Administrative Agent, including addbacks to reflect contractual salary
      and other compensation adjustments related to the applicable sellers and
      related parties, contractual lease payment adjustments, and other
      non-recurring expenses approved by the

                                       -6-
<PAGE>
      Administrative Agent which are related to the Acquisition, such as broker
      commissions and advisory fees. With respect to any such Acquisition in
      which the Borrower so requests adjustments to reflect such nonrecurring
      items, the Borrower shall deliver to the Agent (promptly, but in any event
      together with the Compliance Certificate calculating the inclusion of the
      financial results of such Person or assets with the financial results of
      the Borrower) the financial reports of the acquired Person or assets,
      which reports must be (A) audited or reviewed financial reports prepared
      by an independent certified public accounting firm, or (B) otherwise
      approved by the Administrative Agent.

      (t) Section 9.02 of the Credit Agreement is amended by replacing the
notice information for the Borrower and its counsel set forth therein in its
entirety with the following:

      if to the Borrower, at its address at 1900 St. James Place, 4th Floor,
      Houston, Texas 77056, Attention: Chief Financial Officer (telecopy: (713)
      332-8401; telephone: (713) 332-8400), with a copy to Mr. W. Christopher
      Schaeper, Thompson Knight Brown Parker & Leahy L.L.P., Two Allen Center,
      1200 Smith, Suite 3600, Houston, Texas, 77002 (telecopy: (713) 654-1871;
      telephone: (713) 654-8111);

      (u) EXHIBIT H to the Credit Agreement is hereby replaced with the EXHIBIT
H attached hereto.

      Section 2. CONSENT. Pursuant to Section 7.01(k)(iii)(B) of the Credit
Agreement it is an Event of Default if, without the prior written consent of the
Majority Lenders, any modification shall be made to any Debt Document which
renders the economic terms of the Senior Notes materially more favorable to the
holders of the Senior Notes or materially less favorable to the Borrower. In
connection with the modifications proposed to be made to the Debt Documents in
connection with this Agreement, the Lenders hereby consent (to the extent such
consent is required) to such modifications PROVIDED that the agreement effecting
the same is reasonably acceptable, in form and substance, to the Administrative
Agent.

      Section 3. AMENDMENT FEE. The Borrower shall pay to the Administrative
Agent for the ratable benefit of each Lender that executes and delivers this
Agreement on or before September 15, 2000, an amendment fee in an amount equal
to 0.375% of such Lender's Commitment (as modified pursuant to this Agreement).

      Section 4. REPRESENTATIONS AND WARRANTIES. The Borrower represents and
warrants that (a) the execution, delivery and performance of this Agreement are
within the corporate power and authority of the Borrower and that by the
effective date specified in Section 6 will have been duly authorized by
appropriate proceedings, (b) this Agreement constitutes legal, valid, and
binding obligation of the Borrower enforceable against the Borrower in
accordance with its terms, except as limited by applicable bankruptcy,
insolvency, reorganization,

                                       -7-
<PAGE>
moratorium, or similar laws affecting the rights of creditors generally and
general principles of equity, and (c) upon the effectiveness of this Agreement
and the amendment of the Credit Documents as provided for herein, no Event of
Default shall exist under the Credit Documents and there shall have occurred no
event which with notice or lapse of time would become an Event of Default under
the Credit Documents, as amended.

      Section 5. EFFECT ON CREDIT DOCUMENTS. Except as amended herein, the
Credit Agreement and all other Credit Documents remain in full force and effect
as originally executed. Nothing herein shall act as a waiver of the
Administrative Agent's or any Lender's rights under the Credit Documents as
amended, including the waiver of any default or event of default, however
denominated. The Borrower must continue to comply with the terms of the Credit
Documents, as amended. This Agreement is a Credit Document for the purposes of
the provisions of the other Credit Documents. Without limiting the foregoing,
any breach of representations, warranties, and covenants under this Agreement
may be a default or event of default under the other Credit Documents.

      Section 6. EFFECTIVENESS. This Agreement shall become binding on Borrower,
the Administrative Agent and each Lender upon its execution of a counterpart
hereof, subject to the condition that the Administrative Agent shall have
received the following on or before November 7, 2000: (a) duly and validly
executed counterparts hereof signed by the Borrower, the Administrative Agent,
and the Majority Lenders, (b) the Reaffirmation of Guaranty dated as of even
date herewith, duly and validly executed by the Guarantors, (c) the amendment
fee described above, (d) evidence reasonably acceptable to the Administrative
Agent that Borrower's execution, delivery and performance of this Agreement have
been duly authorized by appropriate proceedings, and (e) such evidence as the
Administrative Agent may reasonably require as to the modifications to the Debt
Documents described in Section 2, which modifications shall be approved by the
Administrative Agent, such approval not to be unreasonably withheld. No such
party may revoke its execution of this Agreement prior to such date, but this
Agreement shall not be deemed effective until all of the foregoing conditions
have been satisfied.

      Section 7. MISCELLANEOUS. The miscellaneous provisions of the Credit
Agreement apply to this Agreement. This Agreement may be signed in any number of
counterparts, each of which shall be an original, and may be executed and
delivered by telecopier.

      THIS WRITTEN AGREEMENT AND THE CREDIT DOCUMENTS REPRESENT THE FINAL
AGREEMENT AMONG THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR,
CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.

      THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG THE PARTIES.

                                       -8-
<PAGE>
      EXECUTED as of the date first above written.

                                  BORROWER:

                                  CARRIAGE SERVICES, INC.

                                  By:___________________________________________
                                         Thomas C. Livengood, Executive Vice
                                         President and Chief Financial Officer

                                    ADMINISTRATIVE AGENT:

                                    BANK OF AMERICA, N.A.

                                  By:___________________________________________
                                         Craig S. Wall
                                         Senior Vice President

                                    LENDERS:

                                    BANK OF AMERICA, N.A.

      COMMITMENT:                   By:_________________________________________
      -----------                        Craig S. Wall
      $15,385,000                        Senior Vice President

                                    SCI LOAN SERVICES, LLC, successor in
                                    interest to PROVIDENT SERVICES,  INC. as a
                                    result of a conversion dated 7-20-00

      COMMITMENT:                   By:_________________________________________
      -----------                   Name:_______________________________________
      $19,231,000                   Title:______________________________________

                                       -9-
<PAGE>
                                    BANK ONE, TEXAS, NA

      COMMITMENT:                   By:_________________________________________
      -----------                   Name:_______________________________________
      $15,385,000                   Title:______________________________________

                                    FIRST UNION NATIONAL BANK

      COMMITMENT:                   By:_________________________________________
      -----------                   Name:_______________________________________
      $7,692,000                    Title:______________________________________

                                    CHASE BANK TEXAS, N.A.

      COMMITMENT:                   By:_________________________________________
      -----------                   Name:_______________________________________
      $13,462,000                   Title:______________________________________

                                    WELLS FARGO BANK (TEXAS), NATIONAL
                                    ASSOCIATION

      COMMITMENT:                   By:_________________________________________
      -----------                   Name:_______________________________________
      $9,615,000                    Title:______________________________________

                                    UNION BANK OF CALIFORNIA, N.A.

      COMMITMENT:                   By:_________________________________________
      -----------                   Name:_______________________________________
      $5,769,000                    Title:______________________________________

                                      -10-
<PAGE>
                                    SUNTRUST BANK, ATLANTA

      COMMITMENT:                   By:_________________________________________
      -----------                   Name:_______________________________________
      $9,615,000                    Title:______________________________________

                                    SOUTHWEST BANK OF TEXAS, N.A.

      COMMITMENT:                   By:_________________________________________
      -----------                   Name:_______________________________________
      $3,846,000                    Title:______________________________________

                                      -11-EXHIBIT 10.2

                   AMENDMENT NO. 1 TO NOTE PURCHASE AGREEMENT

      THIS AMENDMENT NO. 1 TO NOTE PURCHASE AGREEMENT, dated as of November 6,
2000 (this "AMENDMENT"), is entered into by and between Carriage Services, Inc.,
a Delaware corporation (the "COMPANY"), and each of the holders (the "HOLDERS")
of the Notes of the Company referred to in Recital B below who have executed and
delivered this Amendment as described in Section 2.1(a) hereof.

                                    RECITALS

      A. The Company and the Holders (or their predecessors in interest) are
parties to that certain Note Purchase Agreement, dated as of July 1, 1999, (as
the same hereafter may be amended, supplemented or otherwise modified from time
to time, the "AGREEMENT"; capitalized terms used herein that are not defined
herein and that are defined in the Agreement shall have the same meanings as
therein defined).

      B. The Holders constitute the registered or beneficial holders of at least
a majority in principal amount of those certain 7.73% Senior Notes, Series
1999-A, of the Company, due July 30, 2004, those certain 7.96% Senior Notes,
Series 1999-B, of the Company due July 30, 2006, and those certain 8.06% Senior
Notes, Series 1999-C, of the Company due July 30, 2008 (collectively, the
"NOTES").

      C. The Company and the Holders have agreed, subject to the terms and
conditions set forth herein, to modify certain financial covenants and to make
certain other amendments to the Agreement and the Notes as set forth herein.

      NOW, THEREFORE, in consideration of the foregoing and for other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Company and the Holders hereby agree as follows:

SECTION 1.  AMENDMENTS.

      1.1 Section 10.1 of the Agreement is hereby amended in its entirety to
read as follows:

            10.1. ADJUSTED CONSOLIDATED NET WORTH.

                  The Company will not permit Adjusted Consolidated Net Worth at
            any time to be less than the sum of (a) $275,000,000, PLUS (b) the
            cumulative sum of 50% of Consolidated Net Income, (but only if a
            positive number) for each completed fiscal quarter, or portion
            thereof, ending on or after June 30, 1999, PLUS (c) 100% of the
            increases in Adjusted Consolidated Net Worth resulting from any sale
            or issuance of any equity securities (other than the Trust
            Convertible Preferred Securities), of, or any other additions to
            capital by, the Company or its Restricted Subsidiaries during each
            completed fiscal quarter, or portion thereof, ending after March 31,
            1999, MINUS (d) for each fiscal quarter ending after June 30, 2000,
            the sum of (i) Restructuring Charges, in an aggregate amount for all
            fiscal quarters not to exceed $137,000,000 on an after-tax basis and
            (ii) payments made to sellers in connection

                                       -1-
<PAGE>
            with Acquisitions pursuant to guaranties by the Company that the
            stock component of the purchase price would achieve certain
            agreed-upon minimum levels of market price, in an aggregate amount
            for all fiscal quarters not to exceed $11,700,000. The foregoing
            calculation shall be made without giving effect to any unrealized
            holding gain or loss related to the mark-to-market of the Company's
            "available for sale" securities pursuant to Financial Accounting
            Standards Board Bulletin No. 115 or any change in the fair value of
            any interest rate swap that qualifies as a cash flow hedge pursuant
            to Financial Accounting Standards Board Bulletin No. 133. For
            purposes of this Section 10.1 and Sections 10.2(b) and 10.4 below,
            "RESTRUCTURING CHARGES" means the non-recurring restructuring
            charges related to the cumulative effect of changes in accounting
            with respect to the Company and its Restricted Subsidiaries in
            connection with the implementation of Securities and Exchange
            Commission Staff Accounting Bulletin No. 101-Revenue Recognition in
            Financial Statements, organizational changes, sales of assets, and
            write-down of assets, in each case, to the extent the same are
            recognized for financial reporting purposes for periods through June
            30, 2001 (or, as to up to $5,000,000 of such charges, through June
            30, 2002).

      1.2 Section 10.2 of the Agreement is hereby amended in its entirety to
read as follows:

                  10.2. CONSOLIDATED INDEBTEDNESS.

                        (a) The Company will not permit the ratio of
            Consolidated Indebtedness to Consolidated Total Capitalization to be
            greater than 60% at any time. For avoidance of doubt, the Trust
            Debentures shall not be included in Consolidated Indebtedness for
            purposes of this paragraph (a) or paragraph (b) below, nor in the
            Consolidated Indebtedness component of Consolidated Total
            Capitalization under this paragraph (a).

                        (b) The Company will not permit the ratio (calculated as
            of the end of each fiscal quarter) of Consolidated Indebtedness to
            Consolidated Income Available for Fixed Charges (plus, without
            duplication, (x) the consolidated income available for fixed charges
            (which shall be determined in the same manner as Consolidated Income
            Available for Fixed Charges) for such period of any Person and its
            consolidated subsidiaries, or any assets, acquired by the Company
            through an Acquisition during such period, if so requested by the
            Company, as provided below, and (y) Restructuring Charges for such
            period in an aggregate amount for all such periods not to exceed
            $161,000,000 on a pre-tax basis) for the period of four fiscal
            quarters ending as of each fiscal quarter to be more than the
            respective ratios set forth below:

Fiscal Quarter Ending           Maximum Ratio
---------------------------     -------------
September 30, 2000               4.75 to 1.00
December 31, 2000                4.75 to 1.00
March 31, 2001                   4.60 to 1.00

                                       -2-
<PAGE>
June 30, 2001                    4.45 to 1.00
September 30, 2001               4.35 to 1.00
December 31, 2001                4.35 to 1.00
March 31, 2002                   4.35 to 1.00
June 30, 2002                    4.35 to 1.00
September 30, 2002               4.35 to 1.00
December 31, 2002                4.00 to 1.00
March 31, 2003                   4.00 to 1.00
June 30, 2003                    4.00 to 1.00
September 30, 2003               4.00 to 1.00
December 31, 2003                3.75 to 1.00
      and thereafter

            For purposes of this Section 10.2(b), whether or not the Acquisition
            is treated as a pooling transaction, the financial results of the
            acquired Person or assets shall, if requested in writing by the
            Company to the holders of the Notes, be added to the applicable
            financial results of the Company in the same manner as if such
            transaction were a pooling transaction with such adjustments thereto
            as are required to reflect nonrecurring items (both positive and
            negative) that are permitted to be adjusted in accordance with the
            pro forma financial statement guidelines established by the
            Securities and Exchange Commission for acquisition accounting for
            reported acquisitions by public companies (the "SEC GUIDELINES") or
            as otherwise approved by the Required Holders, including add backs
            to reflect contractual salary and other compensation adjustments
            related to the applicable sellers and related parties, contractual
            lease payment adjustments, and other non-recurring expenses that are
            related to the Acquisition, such as broker commissions and advisory
            fees. With respect to any such Acquisition in which the Company so
            requests adjustments to reflect such nonrecurring items, the Company
            shall deliver to the holders of the Notes the financial reports of
            the acquired Person or assets, which reports must be (A) audited or
            reviewed financial reports prepared by an independent certified
            public accounting firm, or (B) otherwise approved by the Required
            Holders. Such reports must be delivered promptly, but in any event
            together with the Officer's Certificate delivered pursuant to
            Section 7.2, which Officer's Certificate shall include (i)
            calculations of the inclusion of the financial results of such
            Person or assets with the financial results of the Company, and (ii)
            a statement that such addition of financial results is in accordance
            with the SEC Guidelines, unless the Required Holders have otherwise
            given their approval as aforesaid. For purposes of this Section
            10.2(b) and Section 10.1 above, "ACQUISITION" means the direct or
            indirect acquisition, whether in one or more related transactions
            and whether by purchase, assignment, merger, consolidation, share
            exchange or other acquisition transaction, of any Person, any group
            of Persons, or any related group of assets, liabilities or
            securities of any Person or any group of Persons.

      1.3 Section 10.4 of the Agreement is hereby amended in its entirety to
read as follows:

                                       -3-
<PAGE>
            10.4. FIXED CHARGE COVERAGE RATIO.

                  The Company will not permit the ratio (calculated as of the
            end of each fiscal quarter) of Consolidated Income Available for
            Fixed Charges (plus Restructuring Charges for such period in an
            aggregate amount for all such periods not to exceed $161,000,000 on
            a pre-tax basis) to Consolidated Fixed Charges for the period of
            four fiscal quarters ending as of each fiscal quarter to be less
            than the respective ratios set forth below:

Fiscal Quarter Ending               Minimum Ratio
--------------------------          -------------
September 30, 2000                   1.65 to 1.00
December 31, 2000                    1.65 to 1.00
March 31, 2001                       1.65 to 1.00
June 30, 2001                        1.70 to 1.00
September 30, 2001                   1.70 to 1.00
December 31, 2001                    1.75 to 1.00
and thereafter

      1.4 Section 10.7 of the Agreement is hereby amended in its entirety to
read as follows:

            10.7. SALE OF ASSETS.

                  The Company will not, and will not permit any Restricted
            Subsidiary to, sell, lease, transfer or otherwise dispose of,
            including by way of merger (collectively, a "DISPOSITION"), any
            assets, including capital stock of Restricted Subsidiaries, in one
            or a series of transactions, to any Person, other than (a)
            Dispositions in the ordinary course of business, (b) Dispositions by
            a Restricted Subsidiary to the Company or another Restricted
            Subsidiary, (c) Dispositions permitted by Section 10.8, or (d)
            Dispositions not otherwise permitted by this Section 10.7, provided
            that the net cash proceeds from each such Disposition covered by
            this clause (d) (a "COVERED DISPOSITION") are offered by the Company
            to be applied to the prepayment of the Notes in the manner hereafter
            provided. For each fiscal quarter commencing after September 30,
            2000 in which the Company makes any Covered Dispositions, the
            Company shall offer to apply an amount equal to the Pro Rata
            Percentage of the net cash proceeds from all such Covered
            Dispositions in such fiscal quarter toward the prepayment of the
            Notes at a price equal to 100% of the principal amount of the Notes
            to be prepaid together with interest accrued to the date of
            prepayment, without payment of any Make-Whole Amount. For purposes
            of the foregoing, "NET CASH PROCEEDS" includes all cash and cash
            equivalents actually received by the Company or any Restricted
            Subsidiary in respect of a Covered Disposition during the fiscal
            quarter in question, after deduction for all out-of-pocket expenses
            incurred by the Company or such Restricted Subsidiary that are
            directly attributable to such Covered

                                       -4-
<PAGE>
            Disposition. In the case of consideration received by the Company or
            a Restricted Subsidiary in the form of notes or deferred purchase
            price in connection with a Covered Disposition, net cash proceeds
            therefrom shall be deemed to be included in the fiscal quarter when
            actually received by the Company or such Restricted Subsidiary. For
            purposes of the foregoing, a "PRO RATA PERCENTAGE" means, for any
            fiscal quarter, the percentage obtained by dividing the outstanding
            principal balance of the Notes as of the last day of such fiscal
            quarter by the sum of such outstanding balance plus the outstanding
            principal balance due under the Credit Agreement as of the last day
            of such fiscal quarter. Each such offer of prepayment under clause
            (d) shall be allocated among all of the Notes at the time
            outstanding in proportion, as nearly as practicable, to the
            respective unpaid principal amounts thereof which have not
            theretofore been called for prepayment. Within 30 days after the
            expiration of each fiscal quarter while the Notes are outstanding,
            commencing with the fiscal quarter ending December 31, 2000, the
            Company shall deliver an Officer's Certificate to the holders of the
            Notes setting forth in reasonable detail the Covered Dispositions
            completed during such fiscal quarter and offering to apply the net
            cash proceeds received during such fiscal quarter toward the
            prepayment of the Notes in the manner described above. Each such
            notice by the Company shall specify (A) the aggregate principal
            amount of Notes offered to be prepaid, (B) the date fixed for
            prepayment which shall not be less than fifteen (15) or more than
            thirty (30) calendar days after the date of such notice, (C) the
            interest to be paid on the prepayment date with respect to such
            principal amount being prepaid, and (D) the date by which any holder
            of a Note that wishes to accept such offer must deliver notice
            thereof to the Company, which shall not be sooner than ten (10) days
            after receipt by a holder of such notice. Except as provided in the
            proviso to this sentence, failure by a holder of Notes to respond
            timely to an offer made pursuant to this Section 10.7 shall be
            deemed to constitute a rejection of such offer by such holder;
            provided, that in the case of offers made to Massachusetts Mutual
            Life Insurance Company, C.M. Life Insurance Company and Baystate
            Health Systems, Inc., failure by any such holder to respond timely
            shall be deemed to constitute an acceptance of such offer by such
            holder. If any holder of the Notes rejects (or is deemed to have
            rejected) such offer, the proceeds that would have been paid to such
            holder shall be paid to the other holders of the Notes that have
            accepted (or are deemed to have accepted)the offer, ratably in
            accordance with the outstanding principal balances of the Notes held
            by the accepting holders. Any holder accepting an offer for a given
            fiscal quarter retains the right to decline an offer in any future
            fiscal quarter, and any holder declining an offer in any fiscal
            quarter retains the right to accept an offer in any future fiscal
            quarter. The Company shall not be required to extend an offer under
            clause (d) for any fiscal quarter in which net cash proceeds are
            less than $1,000,000, but in such event the amount of net cash
            proceeds received during such fiscal quarter shall be carried
            forward for purposes of calculating net cash proceeds in future
            fiscal quarters.

      1.5 Section 10.14 of the Agreement is hereby amended in its entirety to
read as follows:

                                       -5-
<PAGE>
            10.14.      SUBSIDIARY GUARANTIES; CREDIT AGREEMENT MODIFICATIONS.

                  The Company will not permit any Subsidiary that is not a
            Subsidiary Guarantor to become a signatory to the Bank Guaranty (or
            otherwise guarantee bank obligations) unless, concurrently
            therewith, such Subsidiary becomes a signatory to the Subsidiary
            Guaranty. The Company will not permit any Restricted Subsidiary that
            is not a Subsidiary Guarantor to become a signatory to another
            Guaranty of Indebtedness of the Company or another Restricted
            Subsidiary unless, concurrently therewith, such Restricted
            Subsidiary becomes a signatory to the Subsidiary Guaranty. The
            Company will not, without the prior written consent of the Required
            Holders, cause or permit any modification to be made to the Credit
            Agreement (as in existence on the date hereof or as hereafter
            amended, modified or restated, but excluding any refinancing thereof
            or any successor or replacement credit agreement) that renders the
            economic terms of the Indebtedness thereunder materially more
            favorable to the holders of such Indebtedness or materially less
            favorable to the Company.

      1.6 Clause (iii) of Section 18 of the Agreement is hereby amended in its
entirety to read as follows:

            (iii) if to the Company, to the Company at 1900 St. James Place,
      Fourth Floor, Houston, Texas, 77056, to the attention of Chief Financial
      Officer, or at such other address as the Company shall have specified to
      the holder of each Note in writing.

      SECTION 2.  EFFECTIVE DATE.

      2.1 EFFECTIVE DATE. This Amendment shall become binding upon the Company
and each Holder upon its execution of a counterpart hereof, subject to the
condition that the following shall have been received by each Holder or, in the
case of items (a), (b), (c), (d), (e), (f), (h) and (i)(ii) below, by its
special counsel, Baker Botts, L.L.P., on or before November 15, 2000:

            (a) counterparts of this Amendment executed by the Company and the
      Required Holders;

            (b) counterparts of the Ratification of Subsidiary Guaranty, in the
      form attached hereto as EXHIBIT A (the "RATIFICATION"), executed by each
      Subsidiary Guarantor set forth on the signature pages thereto;

            (c) a copy of Amendment No. 3 to the Credit Agreement entered into
      by the Company and the "Administrative Agent" (as defined in the Credit
      Agreement) and at least the "Majority Lenders" (as defined in the Credit
      Agreement), in the form attached hereto as EXHIBIT B;

                                       -6-
<PAGE>
            (d) a copy of a letter to the Company signed by the Administrative
      Agent, on behalf of the Majority Lenders under the Credit Agreement,
      consenting to the terms of this Amendment;

            (e) (1) a favorable opinion of Thompson & Knight L.L.P., counsel to
      the Company, as to (i) the due authorization, execution and delivery of
      this Amendment, (ii) the validity and enforceability of this Amendment and
      of the Agreement, as amended by this Amendment, and (iii) the execution
      and delivery of this Amendment, and the performance of the Agreement, as
      amended by this Amendment, not constituting a breach or violation of the
      Credit Agreement, and (2) a favorable opinion of D'Ancona & Pflaum, LLC,
      special Illinois counsel to the Company, upon which Thompson & Knight
      L.L.P. are relying as to matters of Illinois law in rendering their
      opinion described in clause (1) above;

            (f) written evidence that the execution, delivery and performance by
      the Company of the Amendment Documents referred to in Section 3.1 below
      have been duly authorized by all requisite corporate action on the part of
      the Company;

            (g) without limiting the provisions of Section 15.1 of the
      Agreement, the fees, charges and disbursements of its special counsel
      referred to above, to the extent reflected in a statement of such counsel
      rendered to the Company at least one Business Day prior to the Effective
      Date;

            (h) an amendment fee in the amount equal to 2.50% of the aggregate
      principal amount of the Notes held by, or by a nominee of, such Holder on
      such date, which shall be paid to such Holder as provided in Section 14.2
      of the Agreement; and

            (i) (i) from June 30, 2000 until all of the foregoing conditions and
      the condition specified in subclause (ii) below have been satisfied, there
      shall have been no change in the financial condition, operations, business
      or properties of the Company and its Restricted Subsidiaries which,
      individually or in the aggregate, could reasonably be expected to result
      in a Material Adverse Effect, and (ii) the Company shall have delivered an
      Officer's Certificate to such effect.

      No party to this Amendment may revoke its execution of this Amendment
prior to November 15, 2000, but this Amendment shall not be deemed effective
until all of the foregoing conditions have been satisfied (the date on which
such conditions are satisfied being herein referred to as the "EFFECTIVE DATE").

SECTION 3.  REPRESENTATIONS AND WARRANTIES.

      The Company represents and warrants, both on and as of the date hereof and
on and as of the Effective Date, to the Holders that:

      3.1 The Company has all requisite corporate power to execute, deliver and
perform its obligations under this Amendment and under the Agreement, as amended
(collectively, the

                                       -7-
<PAGE>
"AMENDMENT DOCUMENTS"). The Company has duly executed and delivered each of the
Amendment Documents, and each of the Amendment Documents constitutes the legal,
valid and binding obligation of the Company, enforceable against the Company in
accordance with its respective terms.

      3.2 Neither the execution and delivery of the Amendment Documents by the
Company, nor the consummation of the transactions contemplated hereby or
thereby, nor fulfillment of nor compliance with the terms and provisions hereof
or thereof will conflict with, or result in a breach of the terms, conditions or
provisions of, or constitute a default under, or result in any violation of, or
result in the creation of any security interest, lien or other encumbrance upon
any of the properties or assets of the Company or any of its Subsidiaries
pursuant to, the charter or bylaws of the Company or any of its Subsidiaries,
any award of any arbitrator or any agreement, instrument, order, judgment,
decree, statute, law, rule or regulation to which the Company or any of its
Subsidiaries is subject.

      3.3 Neither the nature of the business conducted by the Company, nor any
of its properties, nor any relationship between the Company and any other
Person, nor any circumstance in connection with the transactions contemplated by
the Amendment Documents is such as to require any authorization, consent,
approval, exemption or other action by or notice to or filing with any court or
administrative or governmental body or any other Person in connection with the
execution and delivery of any Amendment Document or the fulfillment of or
compliance with the terms and provisions hereof or thereof.

      3.4 Upon the effectiveness of this Amendment, no Event of Default or
Default shall exist under the Agreement.

      3.5 The signatories to the Ratification constitute all Subsidiaries of the
Company that are required by the terms of the Agreement, as amended by this
Amendment, to be signatories to the Subsidiary Guaranty.

      3.6 The banks that are signatories to Amendment No. 3 to the Credit
Agreement constitute at least the "Majority Lenders," and Bank of America, N.A.,
constitutes the "Administrative Agent," under the Credit Agreement.

      3.7 Amendment No. 3 to the Credit Agreement and the consent letter
described in Section 2.1(d) of this Amendment on the Effective Date will be in
full force and effect.

SECTION 4.  MISCELLANEOUS.

      4.1 This Amendment shall be construed in connection with and as part of
each of the Agreement and the Notes, and except as modified and expressly
amended by this Amendment, all terms, conditions and covenants contained in the
Agreement and the Notes are hereby ratified and shall be and remain in full
force and effect.

      4.2 Any and all notices, requests, certificates and other instruments
executed and delivered after the execution and delivery of this Amendment may
refer to the Agreement and Notes

                                       -8-
<PAGE>
without making specific reference to this Amendment but, nevertheless, all such
references shall include this Amendment unless the context otherwise requires.

      4.3 Other than as expressly set forth herein, the execution, delivery and
effectiveness of this Amendment shall not operate as a waiver of any right,
power or remedy of any Holder nor constitute a waiver of any provision of the
Agreement, the Notes or any other document, instrument or agreement executed and
delivered in connection with the Agreement.

      4.4 The Company confirms its agreement, pursuant to Section 15.1 of the
Agreement, to pay all costs and expenses of the Holders related to this
Amendment and all matters contemplated by the Amendment Documents, including
without limitation the reasonable fees and expenses of the Holders' special
counsel.

      4.5 This Amendment shall be construed and enforced in accordance with, and
the rights of the parties shall be governed by, the law of the State of
Illinois, excluding choice-of-law principles of the law of such State that would
require the application of the laws of a jurisdiction other than such State.

      4.6 This Amendment may be executed in any number of counterparts, each of
which shall be deemed an original and all of which taken together shall
constitute one and the same document. Delivery of this Amendment may be made by
telecopy of a duly executed counterpart copy hereof.

      [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK; SIGNATURE PAGE FOLLOWS]

                                       -9-
<PAGE>
      IN WITNESS WHEREOF, the parties hereto have caused their duly authorized
officers to execute this Amendment as of the day and year first above written.

                                 CARRIAGE SERVICES, INC.

                                 By:___________________________________
                                 Name: Thomas C. Livengood
                                 Title: Executive Vice President and Chief
                                        Financial Officer

                                 AMERICAN GENERAL ANNUITY INSURANCE COMPANY

                                 MERIT LIFE INSURANCE CO.

                                 THE FRANKLIN LIFE INSURANCE COMPANY

                                 By:____________________________________________
                                 Name:__________________________________________
                                 Title:_________________________________________

                                 MASSACHUSETTS MUTUAL LIFE INSURANCE COMPANY

                                 By:____________________________________________
                                 Name:__________________________________________
                                 Title:_________________________________________

                                 C.M. LIFE INSURANCE COMPANY

                                 By:____________________________________________
                                 Name:__________________________________________
                                 Title:_________________________________________

                                       S-1
<PAGE>
                                 BAYSTATE HEALTH SYSTEMS INC.

                                 By:____________________________________________
                                 Name:__________________________________________
                                 Title:_________________________________________

                                 MINNESOTA LIFE INSURANCE COMPANY

                                 By:  ADVANTUS CAPITAL MANAGEMENT, INC.

                                 By:____________________________________________
                                 Name:__________________________________________
                                 Title:_________________________________________

                                 GREAT WESTERN INSURANCE COMPANY

                                 By:  ADVANTUS CAPITAL MANAGEMENT, INC.

                                 By:____________________________________________
                                 Name:__________________________________________
                                 Title:_________________________________________

                                 THE CATHOLIC AID ASSOCIATION

                                 By:  ADVANTUS CAPITAL MANAGEMENT, INC.

                                 By:____________________________________________
                                 Name:__________________________________________
                                 Title:_________________________________________

                                 PROTECTED HOME MUTUAL LIFE INSURANCE COMPANY

                                 By:  ADVANTUS CAPITAL MANAGEMENT, INC.

                                 By:____________________________________________
                                 Name:__________________________________________
                                 Title:_________________________________________

                                       S-2
<PAGE>
                                 GUARANTEE RESERVE LIFE INSURANCE COMPANY

                                 By:  ADVANTUS CAPITAL MANAGEMENT, INC.

                                 By:____________________________________________
                                 Name:__________________________________________
                                 Title:_________________________________________

                                 NATIONAL TRAVELERS LIFE COMPANY

                                 By:  ADVANTUS CAPITAL MANAGEMENT, INC.

                                 By:____________________________________________
                                 Name:__________________________________________
                                 Title:_________________________________________

                                 MUTUAL TRUST LIFE INSURANCE COMPANY

                                 By:  ADVANTUS CAPITAL MANAGEMENT, INC.

                                 By:____________________________________________
                                 Name:__________________________________________
                                 Title:_________________________________________

                                 FARM BUREAU LIFE INSURANCE COMPANY OF MICHIGAN

                                 By:  ADVANTUS CAPITAL MANAGEMENT, INC.

                                 By:____________________________________________
                                 Name:__________________________________________
                                 Title:_________________________________________

                                       S-3
<PAGE>
                                 FARM BUREAU MUTUAL INSURANCE COMPANY OF
                                 MICHIGAN

                                 By:  ADVANTUS CAPITAL MANAGEMENT, INC.

                                 By:____________________________________________
                                 Name:__________________________________________
                                 Title:_________________________________________

                                 FARM BUREAU GENERAL INSURANCE COMPANY OF
                                 MICHIGAN

                                 By:  ADVANTUS CAPITAL MANAGEMENT, INC.

                                 By:____________________________________________
                                 Name:__________________________________________
                                 Title:_________________________________________

                                 UNITY MUTUAL LIFE INSURANCE COMPANY --
                                 ANNUITY PORTFOLIO

                                 By:  ADVANTUS CAPITAL MANAGEMENT, INC.

                                 By:____________________________________________
                                 Name:__________________________________________
                                 Title:_________________________________________

                                 J. ROMEO & CO.

                                 By:____________________________________________
                                 Name:__________________________________________
                                 Title:_________________________________________

                                 THE TRAVELERS INSURANCE COMPANY,  for itself
                                 and for one of its separate accounts

                                 By:____________________________________________
                                 Name:__________________________________________
                                 Title:_________________________________________

                                       S-4
<PAGE>
                                 THE CANADA LIFE ASSURANCE COMPANY,  as
                                 beneficial owner of Note number AR-9

                                 By:____________________________________________
                                 Name:__________________________________________
                                 Title:_________________________________________

                                 CANADA LIFE INSURANCE COMPANY OF AMERICA, as
                                 beneficial owner of Note number AR-10

                                 By:____________________________________________
                                 Name:__________________________________________
                                 Title:_________________________________________

                                 CANADA LIFE INSURANCE COMPANY OF NEW YORK, as
                                 beneficial owner of Note number AR-11

                                 By:____________________________________________
                                 Name:__________________________________________
                                 Title:_________________________________________

                                 By:____________________________________________
                                 Name:__________________________________________
                                 Title:_________________________________________

                                 GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY

                                 By:____________________________________________
                                 Name:__________________________________________
                                 Title:_________________________________________

                                 By:____________________________________________
                                 Name:__________________________________________
                                 Title:_________________________________________

                                       S-5
<PAGE>
                                    EXHIBIT A

                             [FORM OF RATIFICATION]

<PAGE>
                       RATIFICATION OF SUBSIDIARY GUARANTY

      Each of the undersigned, as Guarantors under that certain Subsidiary
Guaranty dated as of July 27, 1999 (the "GUARANTY"), in favor of the holders of
the Notes (as defined in the Guaranty) issued pursuant to the Note Purchase
Agreement dated as of July 1, 1999 (the "NOTE PURCHASE AGREEMENT") between
Carriage Services, Inc., a Delaware corporation(the "COMPANY"), and the holders
of the Notes (as defined in the Note Purchase Agreement) that are parties
thereto, hereby (1) consents to that certain Amendment No. 1 to Note Purchase
Agreement, dated as of November 6, 2000 (the "AMENDMENT"), between the Company
and the holders of the Notes, (2) represents that it has no defenses to the
enforcement of the Guaranty, (3) confirms and agrees that the Guaranty is, and
shall continue to be, in full force and effect and is hereby confirmed, and (4)
ratifies the Guaranty in all respects except that, upon the effectiveness of,
and on and after the date of, the Amendment, all references to the "Note
Purchase Agreement" in the Guaranty and the use of the words "thereunder",
"thereof" or words of similar import when referring to the Note Purchase
Agreement, shall mean the Note Purchase Agreement, as amended by the Amendment.
The delivery of this Ratification of Subsidiary Guaranty does not indicate or
establish a requirement that the Guaranty requires any Guarantor's approval of
amendments to the Note Purchase Agreement, but has been furnished to the holders
of the Notes as a courtesy at the request of such holders.

      [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK; SIGNATURE PAGE FOLLOWS]

                                       A-1
<PAGE>
      IN WITNESS WHEREOF, each of the undersigned has caused its duly authorized
officer to execute this Ratification of Subsidiary Guaranty as of November 6,
2000.

CARRIAGE FUNERAL HOLDINGS, INC.
CFS FUNERAL SERVICES, INC.
CARRIAGE HOLDING COMPANY, INC.
CARRIAGE FUNERAL SERVICES OF MICHIGAN, INC.
CARRIAGE FUNERAL SERVICES OF KENTUCKY, INC.
CARRIAGE FUNERAL SERVICES OF CALIFORNIA, INC.
CARRIAGE CEMETERY SERVICES OF IDAHO, INC.
WILSON & KRATZER MORTUARIES
ROLLING HILLS MEMORIAL PARK
CARRIAGE SERVICES OF CONNECTICUT, INC.
CHC INSURANCE AGENCY OF OHIO, INC.
BARNETT, DEMROW & ERNST, INC.
CARRIAGE SERVICES OF NEW MEXICO, INC.
CARRIAGE CEMETERY SERVICES, INC.
CARRIAGE SERVICES OF OKLAHOMA, L.L.C.
CARRIAGE SERVICES OF MASSACHUSETTS, INC.
CARRIAGE SERVICES OF NEVADA, INC.
HUBBARD FUNERAL HOME, INC.
CARRIAGE INTERNET STRATEGIES, INC.
CARRIAGE INSURANCE AGENCY OF MASSACHUSETTS, INC.
CARRIAGE CEMETERY SERVICES, INC. OF CALIFORNIA, INC.
CARRIAGE MUNICIPAL CEMETERY SERVICES OF NEVADA, INC.
CARRIAGE SERVICES OF NEW YORK, INC.
CARRIAGE TEAM OHIO, LLC
CARRIAGE TEAM KANSAS, LLC
CARRIAGE TEAM CALIFORNIA (FUNERAL), LLC
CARRIAGE TEAM CALIFORNIA (CEMETERY), LLC
CARRIAGE TEAM FLORIDA (FUNERAL), LLC
CARRIAGE TEAM FLORIDA (CEMETERY), LLC

By:____________________________________________
Name: Thomas C. Livengood
Title:  Executive Vice President and Chief Financial Officer,
for and on behalf of each of the foregoing

CARRIAGE INVESTMENTS, INC. FOR ITSELF AND AS
GENERAL PARTNER FOR CARRIAGE MANAGEMENT, L.P.

By:____________________________________________
Name: Wendy Wilson Boyer, President of COCHRANE'S CHAPEL OF THE ROSES, INC.

                                       A-2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00017-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00017-of-00352.parquet"}]]