Document:

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EXHIBIT 10.5

AMENDED AND RESTATED

CENTEX CORPORATION LONG TERM INCENTIVE PLAN

Effective October 1, 2001

(Last Amended on October 11, 2006)

1. Objectives

     The Centex Corporation Long Term Incentive Plan (the “Plan”) is designed to retain selected
employees of Centex Corporation and all subsidiaries, partnerships and affiliates of Centex
Corporation with regard to which Centex Corporation owns, directly or indirectly, at least 80% of
the ownership interest therein, and reward them for making significant contributions to the success
of Centex Corporation. These objectives are to be accomplished by making awards under the Plan and
thereby providing participants with a financial interest in the growth and performance of Centex
Corporation. The Plan shall not constitute a “qualified plan” subject to the limitations of
Section 401(a) of the Internal Revenue Code of 1986, as amended, nor shall it constitute a “funded
plan” for purposes of such requirements. This Plan shall be exempt from the participation and
vesting requirements of Part 2 of Title I of ERISA, the funding requirements of Part 3 of Title I
of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), and the fiduciary
requirements of Part 4 of Title I of ERISA by reason of the exclusions afforded to plans which are
unfunded and maintained by an employer primarily for the purpose of providing deferred compensation
for a select group of highly compensated employees.

2. Definitions

     As used herein, the terms set forth below shall have the following respective meanings:

     “Act” means the Securities Exchange Act of 1934, as amended.

     “Administrator” means the Compensation and Management Development Committee of the Board.

     “Affiliate” means any direct or indirect subsidiary or parent of Centex Corporation and any
partnership, joint venture, limited liability company or other business venture or entity in which
Centex Corporation owns directly or indirectly at least 80% of the ownership interest in such
entity, as determined by the Administrator in its sole and absolute discretion (such determination
by the Administrator to be conclusively established by the grant of an Award by the Administrator
to an officer or employee of such an entity).

     “Award” means an award of Deferred Stock granted to a Participant pursuant to any applicable
terms, conditions and limitations as the Administrator may establish in order to fulfill the
objectives of the Plan.

     “Award Agreement” means a written agreement between Centex Corporation and a Participant that
sets forth the terms, conditions and limitations applicable to an Award.

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     “Beneficiary” means such person or persons, or the trustee of an inter vivos trust for the
benefit of natural persons, designated by the Participant in a written election filed with the
Administrator as entitled to receive the Participant’s Award(s) in the event of the Participant’s
death, or if no such election shall have been so filed, or if no designated Beneficiary survives
the Participant or can be located by the Administrator, the person or persons entitled thereto
under the last will of such deceased Participant, or if such decedent left no will, to the legal
heirs of such decedent determined in accordance with the laws of intestate succession of the state
of the decedent’s domicile.

     “Board” means the Board of Directors of Centex Corporation as the same may be constituted from
time to time.

     “Centex Corporation” means Centex Corporation, a Nevada corporation, or any successor thereto.

     “Code” means the Internal Revenue Code of 1986, as amended.

     “Company” means each of Centex Corporation and every Affiliate.

     “Deferred Stock” means a right to receive at Payout the number of Shares covered by an Award,
subject to the terms of this Plan and the Award Agreement. Deferred Stock does not represent any
actual legal or beneficial interest in Centex Corporation.

     “Disability” means a disability that entitles the Participant to benefits under the long-term
disability plan sponsored by the Company which covers the Participant.

     “Employment” means employment with a Company.

     “Expiration Date” means, as to an Award, that date which is seven years past the Grant Date of
such Award or such other period as the Administrator may determine.

     “Fair Market Value” means, as of a particular date, (A) if Shares are listed on a national
securities exchange, the closing price per Share, as reported on the consolidated transaction
reporting system for the New York Stock Exchange or such other national securities exchange on
which Shares are listed that is at the applicable time the principal market for the Shares, or any
other source selected by the Administrator, or, if there shall have been no such sales so reported
on that date, on the last preceding date on which such a sale was so reported, (B) if Shares are
not so listed, the mean between the closing bid and asked price of Shares on that date, or, if
there are no quotations available for such date, on the last preceding date on which such a
quotation was reported, as reported on a recognized quotation system selected by the Administrator,
or, if not so reported, then as reported by The Pink Sheets LLC (or a similar organization or
agency succeeding to its functions of reporting prices), or (C) at the discretion of the
Administrator, the value of Shares determined in good faith by the Administrator.

     “Full Time Employee” means a person actively and regularly engaged in work at least 40 hours a
week.

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     “Grant Date” means the date an Award is made to a Participant hereunder, which will be April 1
of the year in which such Award is made, or any other date selected by the Administrator.

     “Participant” means an employee of a Company to whom an Award has been made under this Plan.

     “Payout” means the distribution of vested Deferred Stock under the Plan.

     “Payout Date” means the date an Award becomes payable pursuant to Section 8.

     “Plan” means this Centex Corporation Long Term Incentive Plan, as set forth herein and as may
be amended from time to time.

     “Share” means a share of Centex Corporation’s present twenty-five cents ($0.25) par value
common stock and any share or shares of capital stock or other securities of Centex Corporation
hereafter issued or issuable upon, in respect of or in substitution or in exchange for each present
share. Such Shares may be unissued or reacquired Shares, as the Board, in its sole and absolute
discretion, shall from time to time determine.

     “Termination Date” means the last date on which the Participant is carried on a Company’s
payroll as an employee.

     “Vested Retirement” means the voluntary termination by a Participant who is a Full Time
Employee of all Employment at any time after the Participant is age 55 or older, completes at least
10 Years of Service and the sum of age and Years of Service with one or more Companies equals at
least 70. In no event will the Plan’s Vested Retirement provisions apply to Awards made on or
after April 1, 2006.

     “Years of Service” means the Participant’s years of employment with a Company. A Participant
shall be credited with a Year of Service on each anniversary of the date on which he or she was
first employed with a Company, provided that the Participant continues to be employed by a Company
on such anniversary date.

3. Eligibility

     Only highly compensated employees of a Company are eligible for Awards under this Plan, as
determined in the sole discretion of the Administrator. The Administrator shall select the
Participants in the Plan from time to time as evidenced by the grant of Awards under the Plan.

4. Plan Administration

     The Plan shall be administered by the Administrator, which shall have full and exclusive power
to interpret this Plan and to adopt such rules, regulations and guidelines for carrying out this
Plan as it may deem necessary or appropriate in its sole discretion. The Administrator shall
determine all terms and conditions of the Awards. The Administrator may, in its discretion,
accelerate the vesting or Payout of an Award, eliminate or make less restrictive any restrictions

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contained in an Award
Agreement, waive any restriction or other provision of this Plan or an Award Agreement or
otherwise amend or modify an Award in any manner that is either (i) not materially adverse to the
Participant holding the Award or (ii) consented to by such Participant. The Administrator may
delegate to one or more employees of Centex Corporation the performance of non-discretionary
functions under this Plan, including distributions of Payouts.

5. Awards

     (a) The granting of Awards under this Plan shall be entirely discretionary, and nothing in
this Plan shall be deemed to give any employee of a Company any right to participate in this Plan
or to be granted an Award.

     (b) Awards shall be granted to Participants at such times, and subject to paragraph 5(d)
below, in such amounts as the Administrator, in its sole and absolute discretion, shall determine.
No credit for cash dividends on Deferred Stock will be allowed (or accrued) prior to Payout.

     (c) The term of an Award shall run from the Grant Date to the Expiration Date, subject to
early Payout as described in Section 8 below or forfeiture as described in Section 7 below.

     (d) The maximum number of Shares that may be awarded under this Plan, subject to Section 13
below, is 1,220,991. As of March 31, 2006 a total of 123,379 shares are available to be awarded.

     (e) If an Award is forfeited, the number of Shares with respect to which such Award shall not
have been exercised prior to its forfeiture may again be awarded pursuant to the provisions hereof.

6. Vesting of Awards

     (a) Unless different terms are set by the Administrator, an Award shall be immediately 25%
vested on its Grant Date and shall become vested in cumulative 25% increments on each of the first
through third anniversaries of such Grant Date, so that on the third anniversary of the Grant Date
the Award will be 100% vested; provided, however, that the Participant must be in continuous
Employment from the Grant Date through the date of the applicable anniversary in order for the
Award to vest.

     (b) A Participant’s Award shall be fully vested, irrespective of the limitations set forth in
subparagraph (a) above, in the event of (i) a change in control, as provided for in Section 13
below, provided that the Participant has been in continuous Employment from the Grant Date until
the date of such change in control or (ii) for Awards granted prior to April 1, 2006, Vested
Retirement of the Participant.

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7. Forfeiture of Awards

     If a Participant’s Employment is terminated other than through Vested Retirement with respect
to Awards granted prior to April 1, 2006, the Participant shall forfeit his or her Award(s) with
respect to any portion that is not vested as of such Participant’s Termination Date.

8. Payouts of Awards

     Payouts will occur as follows:

     (a) Automatic Payout on Expiration Date. To the extent that a Participant’s Award has
vested, such Award shall have an automatic Payout on the Expiration Date of such Award.

     (b) Early Payouts. In addition to automatic Payout on the Expiration Date, there may
be an early Payout of the vested portion of an Award as follows:

     (i) Termination of Employment (whether voluntary or involuntary). The vested
portion of each Award shall have an automatic Payout on the Participant’s Termination Date.

     (ii) Death. If a Participant dies prior to the Expiration Date, such
Participant’s Award, to the extent vested, shall have an automatic Payout as of the date of
the Participant’s death and be made to the Participant’s Beneficiary.

     (iii) Disability. Prior to the Expiration Date, an Award, with the approval of
the Administrator, shall both be fully vested and have an automatic Payout on the date the
Participant satisfies the definition of Disability.

     (iv) Early Payout Request. At or subsequent to the time an Award is made, a
Participant may elect, in the form and manner prescribed by the Administrator in its sole
discretion, that the Payout Date for such Award shall be when each portion of the Award
vests pursuant to paragraph 6(a). Thereafter, such election of timing of distribution for
an Award may be revoked and a new election substituted therefor during any subsequent
calendar year at such times as designated by the Administrator in its sole discretion;
provided, however, that such new election (i) shall only be effective with respect to
distributions during a calendar year subsequent to the calendar year during which the new
election is made and (ii) the new distribution date shall not exceed the applicable
Expiration Date with respect to the amounts to be distributed.

9. Form of Payout

     As soon as practicable following a determination that Payout of a Participant’s Award shall be
made as described in Section 8, but not later than five business days after the required Payout
Date, Centex Corporation shall make a Payout to the Participant. Payouts shall be made in Shares
except that no fractional shares will be issued and in lieu thereof cash will be paid to the
Participant.

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10. Delivery of Share Certificates

     As promptly as may be administratively practicable following a Payout, Centex Corporation
shall make delivery of one or more Share certificates, and, at the election of the Participant,
either by delivery of a physical certificate or an electronic transfer to a broker, for the
appropriate number of Shares.

11. Tax Withholding

     Centex Corporation shall deduct applicable taxes with respect to any Award or Payout and
withhold, at the time of Award or Payout, as appropriate, a number of Shares, based on the Fair
Market Value on such date, for payment of taxes required by law.

12. Non-Assignability

     Unless otherwise determined by the Administrator, no Award or Payout or any other benefit
under this Plan shall be assignable or otherwise transferable except to a Beneficiary or by will,
the laws of descent and distribution or a domestic relations order. The Administrator may prescribe
other restrictions on transfer. Any attempted assignment of an Award or any other benefit under
this Plan in violation of this Section 12 shall be null and void.

13. Changes in Shares and Certain Corporate Transactions

     (a) In the event of any subdivision or consolidation of outstanding Shares, declaration of a
dividend payable in Shares or other stock split, then (i) the number of Shares available for Awards
under this Plan, and (ii) the number of Shares covered by outstanding Awards, shall each be
proportionately adjusted by the Board as appropriate to reflect such transaction. In the event of
any other recapitalization or capital reorganization of the Centex Corporation, any consolidation
or merger of the Centex Corporation with another corporation or entity, the adoption by the Centex
Corporation of any plan of exchange affecting Shares or any distribution to holders of Shares of
securities or property (other than normal cash dividends or dividends payable in Shares), the Board
shall make appropriate adjustments to (i) the number of Shares available for Awards under this
Plan, and (ii) the number of Shares covered by outstanding Deferred Awards, to reflect such
transaction; provided that such adjustment under (ii) shall only be such as are necessary to
maintain the proportionate interest of the holders of the Awards and preserve, without increasing,
the value of such Awards.

     Except as is otherwise expressly provided herein, the issuance by Centex Corporation of shares
of its capital stock of any class, or securities convertible into shares of capital stock of any
class, either in connection with a direct sale or upon the exercise of rights or warrants to
subscribe therefor, or upon conversion of shares or obligations of Centex Corporation convertible
into such shares or other securities, shall not affect, and no adjustment by reason thereof shall
be made with respect to, the number of Shares then subject to outstanding Awards granted under the
Plan. Furthermore, the presence of outstanding Awards granted under the Plan shall not affect in
any manner the right or power of Centex Corporation to make, authorize or consummate (i) any or all
adjustments, recapitalizations, reorganizations or other changes in Centex Corporation’s
capital

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structure or its business, including the issuance of capital stock; (ii) any merger or
consolidation of Centex Corporation; (iii) any issuance by Centex Corporation of debt securities or
preferred or preference stock which would rank above the Shares subject to outstanding Awards
granted under the Plan; (iv) the dissolution or liquidation of Centex Corporation; (v) any sale,
transfer or assignment of all or any part of the assets or business of Centex Corporation; or (vi)
any other corporate act or proceeding, whether of a similar character or otherwise.

     (b) Notwithstanding anything to the contrary above, a dissolution or liquidation of Centex
Corporation, a merger (other than a merger effecting a reincorporation of Centex Corporation in
another state) or consolidation in which Centex Corporation is not the surviving corporation (or
survives only as a subsidiary of another corporation in a transaction in which the stockholders of
the parent of Centex Corporation and their proportionate interests therein immediately after the
transaction are not substantially identical to the stockholders of Centex Corporation and their
proportionate interests therein immediately prior to the transaction), a transaction in which
another corporation becomes the owner of 50% or more of the total combined voting power of all
classes of stock of Centex Corporation, or a change in control (as specified below), shall cause
every Award then outstanding to become fully vested immediately prior to such dissolution,
liquidation, merger, consolidation, transaction, or change in control, to the extent not
theretofore exercised, without regard to the determination as to the periods and installments of
vesting contained in the Agreements if (and only if) such Awards have not at that time expired or
been terminated. For purposes of this Section 13, a change in control shall be deemed to have
taken place if:

     (i) a third person, including a “Group” as defined in Section 13(d)(3) of the Act,
becomes the beneficial owner of Shares of Centex Corporation having 50% or more of total
number of votes that may be cast for the election of directors of Centex Corporation; or

     (ii) as a result of, or in connection with, a contested election for directors, persons
who were directors of Centex Corporation immediately before such election shall cease to
constitute a majority of the Board.

     Notwithstanding the foregoing provisions of this paragraph, in the event of any such
dissolution, merger, consolidation, transaction or change in control, the Board may completely
satisfy all obligations of Centex Corporation and its Affiliates with respect to any Award
outstanding on the date of such event by delivering to the Participant cash in an amount equal to
the Fair Market Value of such Shares on the date of such event, such payment to be made within
reasonable time after such event.

14. Plan Year

     The Plan, as amended and restated, shall be effective as of October 1, 2001 and will continue
in effect until the Administrator terminates the same. The Plan year will be April 1 through March
31 while this Plan is in effect.

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15. Requirements of Law

     Notwithstanding anything herein to the contrary, Centex Corporation shall not be required to
issue Shares under any Award if the issuance thereof would constitute a violation by the
Participant or Centex Corporation of any provisions of any law or regulation of any governmental
authority or any national securities exchange; and as a condition of any issuance of Shares under
any Award, Centex Corporation may require such agreements or undertakings, if any, as Centex
Corporation may deem necessary or advisable to ensure compliance with any such law or regulation.

16. Amendment, Suspension or Termination

     The Board may amend, suspend or terminate the Plan at any time for the purpose of meeting or
addressing any changes in legal requirements or for any other purpose permitted by law, except that
no amendment, suspension or termination shall be made that would impair the rights of any
Participant as to a vested Award previously granted to such Participant without his or her written
consent.

17. Unfunded Plan

     This Plan shall be unfunded. Although bookkeeping accounts may be established with respect to
Participants representing Awards, any such accounts shall be used merely as a bookkeeping
convenience. Centex Corporation shall not be required to segregate any assets that may at any time
be represented by Awards, nor shall this Plan be construed as providing for such segregation, nor
shall Centex Corporation, the Board or the Administrator (or any delegate thereof) be
deemed to be a trustee of any Awards to be granted under this Plan. Any liability or obligation of
Centex Corporation to any Participant with respect to a grant of Awards under this Plan shall be
based solely upon any contractual obligations that may be created under this Plan, and no such
liability or obligation of Centex Corporation shall be deemed to be secured by any pledge or other
encumbrance on any property of Centex Corporation. None of Centex Corporation or any other
Company, the Board or the Administrator (or any delegate thereof) shall be required to give any
security or bond for the performance of any obligation that may be created by this Plan.

     Notwithstanding the foregoing, upon the occurrence of a change in control, as described in
Section 13(b), each Company whose employees are Participants shall, as soon as possible, but in no
event longer than 15 days following the change in control, make an irrevocable contribution to a
trust established by Centex Corporation in an amount sufficient to fully pay the entire benefit to
which each Participant employed by such Company would be entitled pursuant to the terms of this
Plan as of the date on which such change in control occurs. In its sole discretion, Centex
Corporation may establish such a trust at any time prior to a change in control and may make
contributions to such trust in Shares or in cash which would be used to acquire Shares to transfer
to Participant. Any such trust shall be designed to assist Centex Corporation in satisfying its
obligations under this Plan; but it shall remain subject to the claims of its creditors.

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18. No Employment Guaranteed

     No provision of this Plan or any Award Agreement hereunder shall confer any right upon any
employee to continued employment with a Company.

19. No Stockholder Rights

     A Participant shall have no rights as a holder of Shares with respect to Awards granted
hereunder. In particular, no Award shall entitle a Participant to be considered a holder of Shares
or to have any rights to dividends or other distributions made to holders of Shares prior to the
Payout of such Award.

20. Governing Law

     This Plan and all determinations made and actions taken pursuant hereto, to the extent not
otherwise governed by mandatory provisions of the Act or other securities laws of the United
States, shall be governed by and construed in accordance with the laws of the State of Texas,
without reference to any conflicts of law principles thereof that would require the application of
the laws of another jurisdiction.

21. Indemnification

     Neither the members of the Board, any member of the Compensation and Management Development
Committee, acting in the capacity of Administrator, nor any delegates of the Administrator, shall
be liable for any act, omission or determination taken or made in good faith with respect to the
Plan or any Award granted under it, and the members of the Board and the Compensation and Stock
Option Committee (or its delegate) shall be entitled to indemnification and reimbursement by Centex
Corporation in respect of any claim, loss, damage or expense (including counsel fees) arising
therefrom to the full extent permitted by law and under any directors and officers liability or
similar insurance coverage that may be in effect from time to time.

22. Release

     Any issuance or transfer of Shares to a Participant or to his legal representative, heir,
legatee or distributee in accordance with the provisions hereof shall, to the extent thereof, be in
full satisfaction of all claims of such persons hereunder. The Board or Administrator may require
any Participant or legal representative, heir, legatee or distributee, as a condition precedent to
such payment, to execute a release and receipt therefor in such form as it shall determine.

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August 1, 2006

Via E-Mail

To: Alan G. Shuler

Re: Separation Agreement and Release

Dear Alan:

As you know, your employment with MakeMusic, Inc. (“MakeMusic”) ended effective at the close of
business on July 31, 2006. On July 31, 2006, MakeMusic gave you a Separation Agreement and Release
letter for your review and execution. On July 31, 2006, you requested that certain changes be made
to the Agreement and MakeMusic agreed to make certain changes. This Separation Agreement and
Release letter dated August 1, 2006 is the revised Agreement which includes the agreed upon
changes. You acknowledge and agree that MakeMusic need not restart the 21-day consideration period
noted below on account of the changes reflected herein.

Although not required to do so, MakeMusic would like to offer you separation pay and benefits to
ease your transition to new employment. The purpose of this Separation Agreement and Release
letter (“Agreement”) is to set forth the specific separation pay and benefits that MakeMusic will
provide you in exchange for your agreement to the terms and conditions of this Agreement.

By your signature below, you agree to the following terms and conditions:

     1. End of Employment. Your employment with MakeMusic ended effective at the close of
business on July 31, 2006. Upon your receipt of your final paycheck which includes payment for
services through July 31, 2006, you will have received all wages owed to you by virtue of your
employment with MakeMusic or termination thereof. Upon your receipt of payment from MakeMusic in
the amount of $7,896.00, less applicable deductions and withholding, which represents payment for
your prorated calendar year 2006 bonus, you will have received all compensation owed to you by
virtue of your employment with MakeMusic or termination thereof. Upon your receipt of payment from
MakeMusic in the amount of $6,890.96, less applicable deductions and withholding, which represents
payment for 102.38 hours of accrued and unused Paid Time Off (PTO) at your regular rate, you will
have received all benefits owed to you by virtue of your employment with MakeMusic or termination
thereof. The COBRA period for continuation of your insurance coverage under MakeMusic’s group plans
will begin on August 1, 2006. Information regarding your right to elect COBRA coverage will be
sent to you via separate letter.

     You are not eligible for any other payments or benefits by virtue of your employment with
MakeMusic or termination thereof except for those expressly described in this Agreement. You will
not receive the payments described in Section 2 and subsequent sections of this Agreement if you
(i) do not sign this Agreement, (ii) rescind this Agreement after signing it, or (iii) violate any
of the terms and conditions set forth in this Agreement.

 

 

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     2. Separation Pay and Benefits. Specifically in consideration of your signing this
Agreement and subject to the limitations, obligations, and other provisions contained in this
Agreement, MakeMusic agrees as follows:

          a. To pay you five months of separation pay for the period from August 1, 2006 through
December 31, 2006 in the gross amount of Fifty Eight Thousand Three Hundred Thirty Three and 33/100
Dollars ($58,333.33), less applicable deductions and withholding. Such separation pay will be paid
to you in installments on MakeMusic’s normal payroll schedule beginning with the first pay day
following the expiration of the rescission periods described in Section 5 below, with the first
such payment to include any retroactive payments to August 1, 2006.

          b. Provided you timely elect COBRA, to pay $816.74 of your COBRA premiums for health insurance
for the months of August, September, October, November and December 2006. Beginning August 1,
2006, you will be responsible for paying $140 of your COBRA premiums for health insurance for the
months of August, September, October, November and December 2006. Beginning January 1, 2007, you
will be responsible for paying your entire COBRA premiums for health insurance. Beginning August
1, 2006, you will be responsible for paying your entire COBRA premiums for dental and life
insurance.

     3. Release of Claims. Specifically in consideration of the separation pay and
benefits described in Section 2, and to which you would not otherwise be entitled, by signing this
Agreement you, for yourself and anyone who has or obtains legal rights or claims through you, agree
to the following:

          a. You hereby do release, agree not to sue, and forever discharge MakeMusic (as defined below)
of and from any and all manner of claims, demands, actions, causes of action, administrative
claims, liability, damages, claims for punitive or liquidated damages, claims for attorney’s fees,
costs and disbursements, individual or class action claims, or demands of any kind whatsoever, you
have or might have against them or any of them, whether known or unknown, in law or equity,
contract or tort, arising out of or in connection with your employment with MakeMusic, or the
termination of that employment, or otherwise, and however originating or existing, from the
beginning of time through the date of your signing this Agreement.

          b. This release includes, without limiting the generality of the foregoing, any claims you may
have for wages, bonuses, commissions, penalties, deferred compensation, vacation pay, separation
benefits, defamation, invasion of privacy, negligence, emotional distress, breach of contract,
estoppel, improper discharge (based on contract, common law, or statute, including any federal,
state or local statute or ordinance prohibiting discrimination or retaliation in employment),
violation of the United States Constitution, the Minnesota Constitution, the Age Discrimination in
Employment Act, 29 U.S.C. § 621 et seq., the Minnesota Human Rights Act, Minn.
Stat. § 363A.01

 

 

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et seq., Title VII of the Civil Rights Act, 42 U.S.C. § 2000e
et seq., the Americans with Disabilities
Act, 42 U.S.C. § 12101 et seq., the Employee Retirement Income Security Act of
1974, 29 U.S.C. § 1001 et seq., the Family and Medical Leave Act, 29 U.S.C. § 2601
et seq., the National Labor Relations Act, 29 U.S.C. § 151 et seq.,
the Worker Adjustment and Retraining Notification Act, 29 U.S.C. § 2101 et seq., the Sarbanes-Oxley
Act, 15 U.S.C. § 7201 et seq., the Fair Labor Standards Act, any claim arising
under Minn. Stat. Chapters 177 and 181, Minn. Stat. § 176.82, and any claim for retaliation,
harassment or discrimination based on sex, race, color, creed, religion, age, national origin,
marital status, sexual orientation, disability, status with regard to public assistance or any
other protected class, or sexual or other harassment. You hereby waive any and all relief not
provided for in this Agreement. You understand and agree that, by signing this Agreement, you
waive and release any past, present, or future claim to employment with MakeMusic.

          c. You affirm that you have not caused or permitted, and to the full extent permitted by law
will not cause or permit to be filed, any charge, complaint, or action of any nature or type
against MakeMusic, including but not limited to any action or proceeding raising claims arising in
tort or contract, or any claims arising under federal, state, or local laws, including
discrimination laws. If you file, or have filed on your behalf, a charge, complaint, or action,
you agree that the payments and benefits described above in Section 2 are in complete satisfaction
of any and all claims in connection with such charge, complaint, or action and you waive, and agree
not to take, any award of money or other damages from such charge, complaint, or action.

          d. You are not, by signing this Agreement, releasing or waiving (1) any vested interest you
may have in any 401(k) or profit sharing plan by virtue of your employment with MakeMusic, (2) any
rights or claims that may arise after the Agreement is signed, (3) the post-employment payments and
benefits specifically promised to you under this Agreement, (4) the right to institute legal action
for the purpose of enforcing the provisions of this Agreement, or (5) the right to apply for state
unemployment compensation benefits.

          e. MakeMusic, as used in this Section 3, shall mean MakeMusic, Inc. and its parent,
subsidiaries, divisions, affiliated entities, insurers, if any, and its and their present and
former officers, directors, shareholders, trustees, employees, agents, attorneys, representatives
and consultants, and the successors and assigns of each, whether in their individual or official
capacities, and the current and former trustees or administrators of any pension or other benefit
plan applicable to the employees or former employees of MakeMusic, in their official and individual
capacities.

     4. Notice of Right to Consult Attorney and Twenty-One (21) Calendar Day Consideration
Period. By signing this Agreement, you acknowledge and agree that MakeMusic has informed you
by this Agreement that (1) you have the right to consult with an attorney of your choice prior to
signing this Agreement, and (2) you are entitled to twenty-one (21) calendar days from the receipt
of this Agreement (July 31, 2006) to consider whether the terms are acceptable to you. MakeMusic
encourages you to use the full 21-day period to consider this Agreement but you have the right, if
you choose, to sign this Agreement prior to the expiration of the twenty-one (21) day period.

 

 

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     5. Notification of Rights under the Minnesota Human Rights Act (Minn. Stat. Chapter 363A)
and the Federal Age Discrimination in Employment Act (29 U.S.C. § 621 et seq.). You are hereby
notified of your right to rescind the release of claims contained in Section 3 with regard to
claims arising under the Minnesota Human Rights Act, Minnesota Statutes Chapter 363A, within
fifteen (15) calendar days of your signing this Agreement, and with regard to your rights arising
under the federal Age Discrimination in Employment Act, 29 U.S.C. § 621 et seq.,
within seven (7) calendar days of your signing this Agreement. The two rescission periods shall
run concurrently. In order to be effective, the rescission must (a) be in writing; (b)
delivered to Deb Peterson, MakeMusic, Inc., 7615 Golden Triangle Drive, Suite M, Eden Prairie, MN
55344-3848 by hand or mail within the required period; and (c) if delivered by mail, the rescission
must be postmarked within the required period, properly addressed to Deb Peterson, as set forth
above, and sent by certified mail, return receipt requested. This Agreement will be effective upon
the expiration of the 15-day period without rescission. You understand that if you rescind any
part of this Agreement in accordance with this Section 5, you will not receive the separation pay
and benefits described in Section 2 and you will be obligated to return any such payments and
benefits if already received.

     6. Return of Property. By signing this Agreement, you acknowledge and agree that all
documents and materials relating to the business of, or the services provided by, MakeMusic are the
sole property of MakeMusic. By signing this Agreement you further agree and represent that you
have returned to MakeMusic all of its property, including but not limited to, all customer records
and other documents and materials, whether on computer disc, hard drive or other form, and all
copies thereof, within your possession or control, which in any manner relate to the business of,
or the duties and services you performed on behalf of MakeMusic.

     7. Confidential and Proprietary Information. By signing this Agreement, you
acknowledge and agree that you have had access in your employment with MakeMusic to confidential
and proprietary information of MakeMusic and further acknowledge and agree that the release or
disclosure of any confidential or proprietary information of MakeMusic will cause MakeMusic
irreparable injury. By signing this Agreement, you acknowledge that you have not used or
disclosed, and agree that you will not at any time use or disclose, to any other entity or person,
directly or indirectly, any confidential or proprietary information of MakeMusic. For purposes of
this Agreement, the term “confidential or proprietary information” shall include, but not be
limited to, customer lists and information pertaining to customer lists; contact lists; and
information about the personal or business affairs of MakeMusic’s customers, vendors, or employees.

     8. Confidentiality. You promise and agree not to disparage MakeMusic, its owners,
employees, products or services, or disclose or discuss, directly or indirectly, in any manner
whatsoever, any information regarding either (1) the contents and terms of this Agreement, or (2)

 

 

Page 5

the substance and/or nature of any dispute between MakeMusic and any employee or former employee,
including yourself. You agree that the only people with whom you may discuss this confidential
information are your legal and financial advisors and your spouse, if applicable, provided they
agree to keep the information confidential, or as otherwise required by law.

     9. Remedies. If you breach any term of this Agreement, MakeMusic shall be entitled to
its available legal and equitable remedies, including but not limited to suspending and recovering
any and all payments and benefits made or to be made under this Agreement. If MakeMusic seeks
and/or obtains relief from an alleged breach of this Agreement, all of the provisions of this
Agreement shall remain in full force and effect.

     10. Non-Admission. It is expressly understood that this Agreement does not
constitute, nor shall it be construed as, an admission by MakeMusic or you of any liability or
unlawful conduct whatsoever. MakeMusic and you specifically deny any liability or unlawful
conduct.

     11. Successors and Assigns. This Agreement is personal to you and may not be assigned
by you without the written agreement of MakeMusic. The rights and obligations of this Agreement
shall inure to the successors and assigns of MakeMusic.

     12. Enforceability. If a court finds any term of this Agreement to be invalid,
unenforceable, or void, the parties agree that the court shall modify such term to make it
enforceable to the maximum extent possible. If the term cannot be modified, the parties agree that
the term shall be severed and all other terms of this Agreement shall remain in effect.

     13. Law Governing. This Agreement shall be governed and construed in accordance with
the laws of the State of Minnesota.

     14. Full Agreement. This Agreement contains the full agreement between you and
MakeMusic and may not be modified, altered, or changed in any way except by written agreement
signed by both parties. The parties agree that this Agreement supersedes and terminates any and
all other written and oral agreements and understandings between the parties except for any
confidentiality agreements to which you are subject in connection with your employment with
MakeMusic.

     15. Acknowledgment of Reading and Understanding. By signing this Agreement, you
acknowledge that you have read this Agreement, including the release of claims contained in Section
3, and understand that the release of claims is a full and final release of all claims you
may have against MakeMusic and the other entities and individuals covered by the release. By
signing, you also acknowledge and agree that you have entered into this Agreement knowingly and
voluntarily.

 

 

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     The offer contained in this Agreement will expire at 5:00 p.m. on August 22, 2006. After you
have reviewed this Agreement and obtained whatever advice and counsel you consider appropriate
regarding it, please evidence your agreement to the provisions set forth in this Agreement by
dating and signing the Agreement. Please then return an original signed Agreement to Deb Peterson
no later than 5:00 p.m. on August 22, 2006.

Sincerely,

/s/ William R. Wolff

William R. Wolff

Chief Executive Officer

 

 

Page 7

ACKNOWLEDGMENT AND SIGNATURE

     By signing below, I, Alan G. Shuler, acknowledge and agree to the following:

	•	 	I have had adequate time to consider whether to sign this Separation Agreement and Release.

	•	 	I have read this Separation Agreement and Release carefully.

	•	 	I understand and agree to all of the terms of the Separation Agreement and Release.

	•	 	I am knowingly and voluntarily releasing my claims against MakeMusic.

	•	 	I have not, in signing this Agreement, relied upon any statements or explanations made by MakeMusic except as for those
specifically set forth in this Separation Agreement and Release.

	•	 	I intend this Separation Agreement and Release to be legally binding.

	•	 	I am signing this Separation Agreement and Release on or after my last day of employment with MakeMusic.

Accepted this 1st day of August, 2006.

 /s/ Alan G. Shuler                      

Alan G. Shuler

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