Document:

10.6 EmploymentAgreement-DavidJDeCarlo

    
Exhibit 10.6 

EMPLOYMENT AGREEMENT

THIS EMPLOYMENT AGREEMENT (this “Agreement”) is made by and between Carriage Services, Inc., a Delaware corporation (the “Company”), and David J. DeCarlo (“Employee”).  Employee and the Company are referred to individually herein as a “Party” and collectively as the “Parties.” 
W I T N E S S E T H:
WHEREAS the Company desires to employ Employee, and Employee desires to be employed by the Company, on the terms and conditions, and for the consideration, set forth herein.
  NOW, THEREFORE, for and in consideration of the mutual promises, covenants and obligations contained herein, the Company and Employee agree as follows:
ARTICLE I 
EMPLOYMENT AND DUTIES
1.1    Employment; Effective Date.  The Company agrees to employ Employee and Employee agrees to be employed by the Company, on the terms herein, beginning as of March 3, 2014 (the “Effective Date”) and continuing for the period of time set forth in Article II of this Agreement, subject to the terms and conditions of this Agreement.
1.2    Positions.  From and after the Effective Date, Employee shall be employed in the position of President or in such other position or positions as the Parties mutually may agree, and Employee shall report to the Company’s Chief Executive Officer.
1.3    Duties and Services.  Employee agrees to serve in the position(s) referred to in Section 1.2 and to perform diligently and to the best of Employee’s abilities the duties and services appertaining to such positions, as well as such additional duties and services appropriate to such positions which the Parties mutually may agree upon from time to time.  Employee’s employment shall also be subject to the policies maintained and established by the Company, as such policies may be amended from time to time.
1.4    Other Interests.  Employee agrees, during the period of his employment by the Company, to devote his full business time, energy and attention to the business and affairs of the Company and its Affiliates, if applicable.  Employee may serve on corporate, industry, civic, religious or charitable boards or committees without violating this Section 1.4 so long as such activities do not violate the terms of Articles IV or VI of this Agreement, present a conflict of interest, or interfere in any material respect with the performance of Employee’s duties and responsibilities pursuant to this Agreement; provided, further that any service by Employee on a board or committee of a for-profit entity shall be subject to the prior approval of the Board of Directors of the Company (the “Board”).
1.5    Duty of Loyalty.  Employee acknowledges that Employee owes a fiduciary  duty of loyalty, fidelity and allegiance to act in the  best interests of the Company and  to do no  act  that

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would injure the business, interests, or reputation of the Company or its Affiliates.  Consistent with those duties, Employee agrees to disclose to the Company all business opportunities pertaining to the Company’s business and shall not appropriate (directly or indirectly) for Employee’s own benefit business opportunities concerning the Company’s business.  If Employee’s other business interests present a conflict of interest with the Company’s business, Employee shall fully disclose the conflict.
ARTICLE II     
TERM AND TERMINATION OF EMPLOYMENT
2.1    Term.        Unless sooner terminated pursuant to other provisions hereof, the Company agrees to employ Employee for the period beginning on the Effective Date and ending on the fourth anniversary of the Effective Date (the “Employment Period”); provided, however, that on each anniversary of the Effective Date, so long as this Agreement has not been earlier terminated, the Employment Period shall be extended for another year so that, so long as this Agreement has not been terminated or a notice of non-extension has not been given pursuant to the following sentence, there shall be between three and four years remaining in the then-existing Employment Period.  Notwithstanding the foregoing, at least sixty (60) days prior to each anniversary of the Effective Date, either the Company or Employee may provide the other party notice that it does not intend for the automatic extension referenced in the previous sentence to occur.  In the event that such a notice of non-extension is provided, no future extensions shall occur and, unless Employee’s employment hereunder is sooner terminated pursuant to the other provisions hereof, the Employment Period shall terminate as of the expiration of the Employment Period that existed on the date that such notice of non-extension was provided.  
2.2    Company’s Right to Terminate.  Notwithstanding the provisions of Section 2.1, Employee’s employment by the Company shall automatically terminate upon the death of Employee, and the Company shall have the right to terminate Employee’s employment under this Agreement at any time for any of the following reasons:
(a)    upon Employee’s becoming incapacitated by accident, sickness or other circumstance which has rendered him mentally or physically incapable of performing the duties and services required of him hereunder on a full‐time basis for a period of at least 180 consecutive days (Employee’s “Disability”); 
(b)    for “Cause,” which for purposes of this Agreement shall mean: (i) Employee’s conviction of, or plea of no contest to, a misdemeanor involving moral turpitude or a felony, (ii) Employee’s repeated failure or refusal to perform all of his duties, obligations and agreements herein contained or imposed by law, including his fiduciary duties, to the reasonable satisfaction of the Board; (iii) Employee’s commission of acts amounting to gross negligence or willful misconduct to the material detriment of the Company; or (iv) Employee’s material breach of any provision of this Agreement or uniformly applied provision of the Company’s employee handbook or other personnel policies, including without limitation, its Code of Business Conduct and Ethics.  Such determination of “Cause” shall be made by the Board and, in the event of circumstances described in (ii) or (iv), the Board shall give written notice to Employee specifying such 

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circumstances and providing a period of 30 days in which Employee shall be allowed to cure such circumstances if capable of cure; or
(c)    at any time for any other reason whatsoever or for no reason at all, in the sole discretion of the Company.  
2.3    Employee’s Right to Terminate.  Notwithstanding the provisions of Section 2.1, Employee shall have the right to terminate his employment under this Agreement for any of the following reasons:
 (a)    for “Good Reason,” which for purposes of this Agreement shall mean termination of Employee’s employment, within 120 days of, and in connection with or based upon, without Employee’s prior written consent, (i) a material breach by the Company of any material provision of this Agreement, (ii) any material diminution of Employee’s Base Salary, (iii) any material diminution in Employee’s authority, duties or responsibilities; or (iv) the Company requiring Employee to relocate to a primary place of employment that is located more than fifty (50) miles outside of the location at which Employee is primarily based as of the Effective Date; provided, however, that, prior to Employee’s termination of employment under this Section 2.3(a), Employee must give written notice to the Company of any Good Reason event within 90 days after Employee has actual knowledge of the facts or circumstances giving rise thereto and such breach must remain uncorrected for 30 days following such written notice; or
(b)    at any time for any other reason whatsoever or for no reason at all.
2.4    Notice of Termination and Effective Date of Termination.
(a)    Notice of Termination.  If the Company or Employee desires to terminate Employee’s employment hereunder, the Company or Employee shall do so by giving written notice to the other Party that it or he has elected to terminate Employee’s employment hereunder and stating the effective date of the termination and reason for such termination; provided, however, that in the event that Employee has provided notice to the Company of his termination of employment, the Company may determine, in its sole discretion, that such termination shall be effective on any date prior to the effective date of termination provided in such notice (and, if such earlier date is so required, then it shall not change the basis for Employee’s termination of employment nor be construed or interpreted as a termination of employment pursuant to Section 2.2).  No action by either Party pursuant to this Section 2.4(a) shall alter or amend any other provisions hereof or rights arising hereunder, including, without limitation, the provisions of Articles IV, V and VI hereof. 
(b)    Date of Termination.   The effective date of Employee’s termination will be as follows: (i) if  Employee’s employment is terminated by his death, the date of his death; (ii) if Employee’s employment is terminated by the Company for any reason, then the date specified in the notice of termination delivered to Employee by the Company;  (iii) if Employee’s  Employment is terminated by Employee  pursuant to Section 2.3  above,

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then, unless the Company exercises its right pursuant to Section 2.4(a) above to specify an earlier date, the date specified in the notice of such termination delivered to the Company by Employee; or (iv) Employee’s employment is terminated upon the expiration of the Employment Period after the issuance of a notice of non-extension pursuant to Section 2.1 above, then the date on which the Employment Period expires. 
2.5    Deemed Resignations.  Unless otherwise agreed to in writing by the Parties prior to the termination of Employee’s employment, any termination of Employee’s employment shall constitute an automatic resignation of Employee (i) as an officer of the Company and each of the Company’s Affiliates (if applicable), (ii) from the Board (if applicable) and from the board of directors (or similar governing body) of each of the Company’s Affiliates (if applicable), and (iii) from the board of directors  (or similar governing body) of any corporation, limited liability company or other entity in which  the Company holds an equity interest and with respect to which board (or similar governing body)  Employee serves as a designee or  other representative of the Company.
2.6    Separation from Service.   For purposes of this Agreement, references to Employee’s termination of employment shall mean, and be interpreted in accordance with, Employee’s “separation  from service” from the Company within the meaning of Treasury Regulation § 1.409A-1(h)(1)(ii).
      ARTICLE III     
COMPENSATION AND BENEFITS
3.1    Base Salary.  During the period that he is employed hereunder, Employee shall receive an annualized base salary of $545,000 (the “Base Salary”).  Employee’s Base Salary will be reviewed annually, and any increase therein shall remain in the sole discretion of the Board, acting through its Compensation Committee (the “Compensation Committee”).   Employee’s Base Salary shall be paid in equal installments in accordance with the Company’s standard  policy regarding payment of compensation to similarly situated employees, but no less frequently than monthly.
3.2    Annual Bonuses.      For each complete calendar year that he is employed hereunder, Employee shall be eligible to receive such annual bonus as may be determined in the Company’s discretion (each an “Annual Bonus”) after considering specified corporate and individual performance goals established by the  Compensation Committee at its first meeting of the fiscal year.  The goals for the Annual Bonus will be  established at three levels: (i) threshold; (ii) target; and (iii) maximum.  If the Compensation Committee  determines that performance is achieved (i) at the threshold level,  the Annual Bonus shall be 40% of the Base Salary; (ii) at the target level, the Annual Bonus shall be 80% of the Base Salary; and (iii) at the maximum level, the Annual Bonus shall be 160% of the  Base Salary.  In the discretion of the Compensation Committee, Annual Bonuses for performance falling between threshold, target and maximum goals may be ratably scaled above and below the goal levels.  The Annual Bonus shall be  payable before March 15 of the year  following the calendar year to which the Annual Bonus  relates, following the certification  of applicable  year-end financial results.  Employee must be employed by the Company on the payment date in order to earn and receive an Annual Bonus.       

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3.3    Expenses.  The Company shall promptly reimburse Employee for all reasonable business expenses incurred by Employee in performing services hereunder, including all expenses of travel and lodging expenses while away from home on business or at the request of the Company; provided, in each case, that such expenses are incurred and accounted for in accordance with the policies and procedures established by the Company from time to time.  Any such reimbursement of expenses shall be made by the Company upon or as soon as practicable following receipt of supporting documentation reasonably satisfactory to the Company (but in any event not later than the close of Employee’s taxable year following the taxable year in which the expense is incurred by Employee).  In no event shall (i) any reimbursement under this Section 3.3 be made to Employee for such expenses incurred after the date of Employee’s termination of employment with the Company, (ii) Employee be permitted to receive a payment or other benefit in lieu of reimbursement, or (iii) the amount of expenses for which Employee is eligible to receive reimbursement during any calendar year effect the amount of expenses for which Employee is eligible to receive reimbursement during any other calendar year within the term of this Agreement.
3.4    Vacation.  During Employee’s employment hereunder, Employee shall be entitled to four (4) weeks paid vacation each calendar year, subject to the Company’s vacation policies as may exist from time to time.
3.5    Equity-Based Compensation.  Employee shall be eligible to receive equity-based compensation awards under the terms of the Company’s Second Amended and Restated 2006 Long Term Incentive Plan or one or more of the Company’s other equity incentive plans in effect from time to time, as determined by the Compensation Committee of the Board in its sole discretion.     
3.6    Intentionally left blank.
3.7    Other Benefits and Perquisites.  During Employee’s employment hereunder, and subject to the terms and conditions of the applicable plans and programs, Employee and, to the extent applicable, Employee’s spouse, dependents and beneficiaries, shall be eligible to participate in all benefit plans and programs of the Company, including improvements or modifications of the same, which are now, or may hereafter be, available to similarly situated employees of the Company.  The Company shall not, however, by reason of this Section 3.7, be obligated to institute, maintain, or refrain from changing, amending, or discontinuing, any such plan or program.
                     ARTICLE IV     
PROTECTION OF INFORMATION
4.1    Access to Information.  The Company shall, during the time that Employee is employed by the Company, (a) disclose or entrust to Employee, and provide Employee access to, or place Employee in a position to create or develop, trade secrets or Confidential Information belonging to the Company, (b) place Employee in a position to develop business goodwill belonging to the Company and (c) disclose or entrust to Employee business opportunities to be developed for the Company.  

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4.2    Disclosure to and Property of the Company.  All information, trade secrets, designs, ideas, concepts, improvements, product developments, discoveries and inventions, whether patentable or not, that are conceived, made, developed or acquired by, or disclosed to, Employee, individually or in conjunction with other employees or agents of the Company during the term and in the scope of his employment that relate to the Company’s business, products or services (including, without limitation, all such information relating to corporate opportunities, research, financial, accounting and sales data, pricing terms, evaluations, opinions, interpretations, analyses, reports, operating techniques, employee lists, training methods and procedures, personnel evaluation procedures, acquisition prospects, the identity of customers or their requirements, the identity of key contacts within the customer’s organizations or within the organization of acquisition prospects, or marketing and merchandising techniques, prospective names and marks) and all writings or materials of any type embodying any of such information, ideas, concepts, improvements, discoveries, inventions and other similar forms of expression (collectively, “Confidential Information”) shall be disclosed to the Company, and are and shall be the sole and exclusive property of the Company.  Employee agrees to perform all actions reasonably requested by the Company to establish and confirm such exclusive ownership.  Upon termination of Employee’s employment by the Company, for any reason, Employee promptly shall deliver such Confidential Information and work product, and all copies thereof, to the Company.  “Confidential Information” does not, however, include any information that, at the time of disclosure by Employee, is available to the public other than as a result of any act of Employee in breach of this Agreement.
4.3    No Unauthorized  Use or  Disclosure.   Employee agrees that Employee will preserve and protect the confidentiality of all Confidential Information and work product of the Company, and will not, at any time during or after the termination of Employee’s employment with the Company, make any unauthorized disclosure of, and shall not remove from Company premises, and will use his best efforts to prevent the removal from Company premises of, Confidential Information, or make any use thereof, in each case, except in the carrying out of Employee’s responsibilities hereunder.  Employee shall inform all persons or entities to whom or to which any Confidential Information shall be disclosed by him in accordance with this Agreement about the confidential nature of such Confidential Information, and Employee shall ensure that such Confidential Information is identified as being confidential, and shall call such identifying mark to such recipient’s attention.  Employee shall have no obligation hereunder to keep confidential any Confidential Information if and to the extent disclosure thereof is specifically required by law; provided, however, that in the event disclosure is required by applicable law and Employee is making such disclosure, Employee shall provide the Company with prompt notice of such requirement, and shall use his commercially reasonable efforts to give such notice prior to making any disclosure, so that the Company may seek an appropriate protective order. At the request of the Company, Employee agrees to deliver to the Company, at any time during the term of employment, or thereafter, all Confidential Information that he may possess or control.
4.4    Ownership by the Company.     If, during Employee’s employment by the Company, Employee creates any original work of authorship fixed in any tangible medium of expression which is the subject  matter of copyright relating to the business,  products, or  services of  the Company, whether  such work is  created solely by Employee or  jointly with others

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(whether during business hours or otherwise and whether on the Company’s premises or otherwise), Employee shall disclose such work to the Company.  The Company shall be deemed the author of such work if the work is prepared by Employee in the scope of Employee’s employment; or, if the work is not prepared by Employee within the scope of Employee’s employment but is specially ordered by the Company as a contribution to a collective work, then the work shall be considered to be work made for hire and the Company shall be the author of the work.  If such work is neither prepared by Employee within the scope of Employee’s employment nor a work specially ordered and is deemed to be a work made for hire, then Employee hereby agrees to assign, and hereby does assign, to the Company all of Employee’s worldwide rights, titles, and interests in and to such work and all rights of copyright therein.
4.5    Assistance by Employee.  During the period of Employee’s employment by the Company, Employee shall assist the Company and its nominee, at any time, in the protection of the Company’s and its nominee’s worldwide right, title and interest in and to Confidential Information and shall execute all formal assignment documents and all lawful oaths and applications for patents and registration of copyrights in the United States and foreign countries as requested by the Company or its nominee.  After Employee’s employment with the Company terminates, at the request and cost of the Company, Employee shall reasonably assist the Company and its nominee, at reasonable times and for reasonable periods and for reasonable compensation, in the protection of the Company’s or its nominee’s worldwide right, title and interest in and to Confidential Information and the execution of all formal assignment documents requested by the Company or its nominee and the execution of all lawful oaths and applications for patents and registration of copyright in the United States and foreign countries, all as may be requested by the Company from time to time.
4.6    Remedies.  Employee acknowledges that money damages would not be sufficient remedy for any breach of this Article IV by Employee, and the Company shall be entitled to enforce the provisions of this Article IV by obtaining specific performance and injunctive relief as remedies for such breach or any threatened breach, which such remedies shall be in addition to all other remedies available to the Company at law and equity.  Each affiliate of the Company shall be a third party beneficiary of Employee’s obligations under this Article IV and, for purposes of this Article IV, the term “Company” shall be deemed to also include the Company’s Affiliates.
         ARTICLE V     
EFFECT OF TERMINATION ON COMPENSATION
5.1    Due to Employee’s Death.  If Employee’s employment hereunder shall terminate due to Employee’s death, then all compensation and all benefits to Employee hereunder shall terminate contemporaneously with the effective date of the termination of his employment, except that the Company shall pay to Employee’s estate: (a) that portion of Employee’s Base Salary accrued through the date on which Employee’s death occurred and all benefits payable under the governing provisions of any benefit plan or program of the Company in which Employee participated; and (b) a pro rata amount of the Annual Bonus for the year in which the death occurred, which such pro rata bonus shall be at the target level described in Section 3.2 above and based on the number of days Employee was employed in the applicable calendar year 

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in comparison to 365.  Such payments pursuant to this Section 5.1 shall be made in the same manner and at the same times as they would have been paid to Employee had he remained employed by the Company.
5.2    Due to Employee’s Disability.  If Employee’s employment hereunder shall terminate due to Employee’s Disability as set forth in Section 2.2(a) above, then all compensation and all benefits to Employee hereunder shall terminate contemporaneously with the effective date of the termination of his employment, except that the Company shall pay to Employee: (a) that portion of Employee’s Base Salary accrued through the date on which Employee’s employment terminated and all benefits payable under the governing provisions of any benefit plan or program of the Company in which Employee participated; and (b) subject to Section 5.7 below, a pro rata amount of the Annual Bonus for the year in which the termination of employment occurred, which such pro rata bonus shall be at the target level described in Section 3.2 above and based on the number of days  Employee was employed in the applicable calendar year in comparison to 365, which such pro rata amount of the Annual Bonus shall be provided on the later of the first business day after the  Release (as defined in Section 5.7 below) is no longer revocable or the payment date that an  Annual Bonus for the year of termination  otherwise would have been payable pursuant to Section 3.2 above had Employee’s employment not terminated (provided, that, in no event shall such payment occur later than the date necessary to qualify such  payment as a “short-term deferral” within  the meaning of Treas. Reg. §    1.409A- 1(b)(4)).
5.3    Termination for Cause or Resignation By Employee Not Within a Corporate Change Period.  If Employee’s employment hereunder is terminated: (i) by the Company for Cause at any time pursuant to Section 2.2(b) above; or (ii) is terminated by Employee pursuant to Section 2.3 above and, with respect to the applicable circumstances set forth in part (i) or (ii) of this sentence, the date of such termination occurs at any time other than during a Corporate Change Period (as defined below), then all compensation and all benefits to Employee hereunder shall terminate contemporaneously with the effective date of the termination of his employment, except that the Company shall pay to Employee that portion of Employee’s Base Salary accrued through the date on which Employee’s employment terminated and all benefits payable under the governing provisions of any benefit plan or program of the Company in which Employee participated.
5.4    Termination By the Company Without Cause.  If Employee’s employment hereunder is terminated by the Company without Cause (and not due to Employee’s death or Disability or due to the issuance of a notice of non-renewal by the Company pursuant to Section 2.1) pursuant to Section 2.2(c) above, and such termination does not occur within a Corporate Change Period, then all compensation and all benefits to Employee hereunder shall terminate contemporaneously with the effective date of the termination of his employment, except that the Company shall pay to Employee that portion of Employee’s Base Salary accrued through the date on which Employee’s employment terminated and all benefits payable under the governing provisions of any benefit plan or program of the Company in which Employee participated.  In addition, subject to Section 5.7 below, the Company shall provide Employee:

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(a)     an amount equal to 80% of Base Salary, multiplied by a fraction, the numerator of which is the number of days Employee was employed by the Company in the calendar year of Employee’s termination, and the denominator of which is 365, which amount shall be paid on the later of the first business day after the Release is no longer revocable or the payment date that an Annual Bonus for the year of termination otherwise would have been payable pursuant to Section 3.2 above had Employee’s employment not terminated (provided, that, in no event shall such payment occur later than the date necessary to qualify such payment as a “short-term deferral” within the meaning of Treas. Reg. § 1.409A-1(b)(4));
(b)    continued payment of Employee’s monthly Base Salary, in arrears, for a period of 18 months following the date of termination; provided, however, that the first such payment shall be made on the Company’s first regular payroll date that comes after the Release is no longer revocable (the “First Payment Date”) and shall include all payments, if any, without interest, that would have otherwise been made pursuant to this Section 5.4(b) between the date of Employee’s termination of employment and the First Payment Date; and 
(c)     for that period beginning on the date of the termination of Employee’s employment and for so long during the 18-month period following the date of termination that Employee remains eligible to receive, and elects to receive,  continuation of coverage under a Company group health plan under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”), the Company shall provide reimbursement of the premiums paid by Employee, if any, for such continuation coverage; provided, however, that to receive such reimbursement, Employee must not be eligible to receive health insurance benefits under any other employer’s group health plan and Employee must provide Company with documentation evidencing his payment of the applicable premiums within thirty (30) days of their payment.  The Company’s payments of COBRA reimbursements shall be made within thirty (30) days of its receipt of such documentation; provided, however, the Company will provide the first COBRA reimbursement referenced in this Section 5.4(c) after the Release has been executed by Employee and become irrevocable, and the first such reimbursement payment shall include all payments, without interest, that otherwise would have been made pursuant to this Section 5.4(c) between the date of Employee’s termination of employment and the date that the Release became irrevocable. 
5.5    Termination By the Company Without Cause or Resignation By Employee Within a Corporate Change Period.     If,  within  the period that begins on the date of a Corporate Change (as defined below) and ends on the date that is 24 months after the date of a Corporate Change (the “Corporate Change Period”), Employee’s employment is terminated: (i) by the Company for any reason (other than Cause or Employee’s death or Disability or due to the issuance of a notice of non-renewal by the Company pursuant to Section 2.1); or (ii) by Employee pursuant to Section 2.3 above, then all compensation and all benefits to Employee hereunder shall terminate  contemporaneously with the effective date of the termination of his employment, except that the  Company shall pay to Employee that portion of Employee’s  Base  Salary  accrued through the  date on which  Employee’s employment  terminated and all benefits 

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payable under the governing provisions of any benefit plan or program of the Company in which Employee participated.  In addition, subject to Section 5.7 below, the Company shall provide Employee:
(a)     a lump sum payment equal to three times the sum of (i) Employee’s then-current annual Base Salary, plus (ii) Employee’s then-current target Annual Bonus, which such payment shall be paid to Employee on the First Payment Date; and 
(b)    for that period beginning on the date of the termination of Employee’s employment and for so long during the 36-month period following the date of termination that Employee remains eligible to receive, and elects to receive,  continuation of coverage under a Company group health plan under COBRA, the Company shall provide reimbursement of the premiums paid by Employee, if any, for such continuation coverage; provided, however, that to receive such reimbursement, Employee must not be eligible to receive health insurance benefits under any other employer’s group health plan and Employee must provide Company with documentation evidencing his payment of the applicable premiums within thirty (30) days of their payment.  The Company’s payments of COBRA reimbursements shall be made within thirty (30) days of its receipt of such documentation; provided, however, the Company will provide the first COBRA reimbursement referenced in this Section 5.5(b) after the Release has been executed by Employee and become irrevocable, and the first such reimbursement payment shall include all payments, without interest, that otherwise would have been made pursuant to this Section 5.5(b) between the date of Employee’s termination of employment and the date that the Release became irrevocable.
As used herein, a “Corporate Change” means: (a) the dissolution or liquidation of the Company;  (b) a reorganization, merger or consolidation of the Company with one or more corporations (other than a merger or consolidation effecting a reincorporation of the Company in another state or any other merger or consolidation in which the stockholders of the surviving corporation and their proportionate interests therein immediately after the merger or consolidation are substantially identical to the stockholders of the Company and their proportionate interests therein immediately prior to the merger or consolidation) (collectively, a “Corporate Change Merger”); (c) the sale of all or substantially all of the assets of the Company; or (d) the occurrence of a Change in Control.   A “Change in Control” shall be deemed to have occurred if (a) individuals who were directors of the Company immediately prior to a Control Transaction shall cease, within two years of such Control Transaction to constitute a majority of the Board (or of the board of directors of any successor to the Company or to a company which has acquired all or substantially all its assets) other  than by reason of an increase in the size of the membership of the applicable board that is approved by at least a majority of the individuals who were directors of the Company immediately prior to such Control Transaction; or (b) any entity, person or Group acquires shares of the Company in a transaction or series of transactions that result in such entity, person or Group directly or indirectly owning beneficially 50% or more of the outstanding shares of Common Stock. As used herein, “Control Transaction” means (a) any tender offer for or acquisition of capital stock of the Company pursuant to  which any person, entity, or Group directly or indirectly acquires beneficial ownership of 20% or more of the outstanding shares of Common Stock; (b) any Corporate Change Merger of the Company;  (c) 

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any contested election of directors of the Company; or (d) any combination of the foregoing, any one of which results in a change in voting power sufficient to elect a majority of the Board.  As used herein, “Group” means persons who act “in concert” as described in Sections 13(d)(3) and/or 14(d)(2) of the Securities Exchange Act of 1934, as amended.  As used herein, “Common Stock” means the common stock of the Company, $.01 par value per share, or any stock or other securities hereafter issued or issuable in substitution or exchange for the Common Stock.
5.6    Consequences to Equity Awards.  The impact of a Corporate Change and/or Employee’s termination from employment with the Company on stock option, restricted stock and other share-based awards made pursuant to a Company incentive plan shall be governed by the terms of such plan.  Where, in the discretion of the Company, the applicable plan(s) is/are silent about the impact of a Corporate Change and/or Employee’s termination from employment on the vesting of Employee’s stock option, restricted stock and other share-based awards, then the following terms shall apply with respect to the applicable vested and unvested stock options, restricted stock and other share-based awards awarded to Employee:
	
				
	Reason for Termination
	Stock Options
	Restricted Stock
	Other share-based awards

	Termination by the Company for Cause pursuant to Section 2.2(b) above
	Forfeit all unvested awards
	Forfeit all unvested awards
	Forfeit all unvested awards

	Involuntary termination by the Company without Cause (and not due to death or Disability) pursuant to Section 2.2(c) above or by Employee for Good Reason pursuant to Section 2.3(a) above (other than during a Corporate Change Period)
	Forfeit all unvested awards; Employee has 3 months from the date of termination to exercise all vested awards*
	Forfeit all unvested awards
	Forfeit all unvested awards

	Voluntary termination by Employee (other than for Good Reason) pursuant to Section 2.3(b) above (other than during a Corporate Change Period)
	Forfeit all unvested awards; Employee has 3 months from the date of termination to exercise all vested awards*
	Forfeit all unvested awards
	Forfeit all unvested awards

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	Reason for Termination
	Stock Options
	Restricted Stock
	Other share-based awards

	Termination during a Corporate Change Period for one of the reasons specified in Section 5.5 above
	Immediate vesting of all unvested awards; Employee has 3 months from the date of termination to exercise all vested awards*
	Immediate vesting of all unvested awards
	Payouts made within 60 days following the end of the performance period as if Employee had been employed during the entirety of the period, provided that applicable performance targets have been met 

	Death
	Immediate vesting of all unvested awards; Employee’s estate has 12 months to exercise all vested awards*
	Immediate vesting of all unvested awards
	Awards will be prorated based on termination date and prorated payouts will be made within 60 days following the end of the performance period, provided that applicable performance targets have been met

	Disability
	Immediate vesting of all unvested awards; Employee has 12 months to exercise all vested awards*
	Immediate vesting of all unvested awards
	Awards will be prorated based on termination date and prorated payouts will be made within 60 days following the end of the performance period, provided that applicable performance targets have been met

	Retirement pursuant to a plan or policy adopted by the Company, if any, or on terms approved by the Board of Directors
	Forfeit all unvested awards; Employee has 3 months to exercise all vested awards*
	Immediate vesting of all unvested awards
	Awards will be prorated based on termination date and prorated payouts will be made within 60 days following the end of the performance period, provided that applicable performance targets have been met.

* Notwithstanding anything herein to the contrary, in no event will any vested stock options be exercisable after the expiration of the original terms of such options.  

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5.7    Release and Full Settlement.  Anything to the contrary herein notwithstanding, as a condition to the receipt of any payment or benefit under Section 5.2(b), 5.4(a)-(c) or 5.5(a)-(b), Employee shall first execute (and not revoke within 7 days of execution) a release of all claims in a form acceptable to the Company (the “Release”), which such Release shall release the Company, its affiliates and their respective shareholders, members, partners, Board members, officers, directors, employees and agents from any and all claims, including without limitation any and all causes of action arising out of Employee’s employment with the Company and the termination of such employment, but excluding (a) all claims to severance payments Employee may have under Sections 5.2(b), 5.4(a)-(c) or 5.5(a)-(b) above, and (b) all vested benefits to which Employee is entitled under the Company’s employee benefit plans.  The performance of the Company’s obligations hereunder and Employee’s receipt of any payments or benefits provided to Employee hereunder shall constitute full settlement of all such claims and causes of action.  The Release must be executed by Employee no later than 50 days following the date of termination of his employment (or earlier if requested by the Company and permitted by applicable law).  Employee acknowledges Employee’s understanding that if the applicable Release is not timely executed, and the required revocation period has not fully expired, Employee shall not be entitled to any payment under Sections 5.2(b), 5.4(a)-(c) or 5.5(a)-(b) above.  Notwithstanding anything to the contrary in this Section 5, in the event the time period (including any applicable revocation period) prescribed by the Company for Employee’s execution of the Release begins in one taxable year and ends in a second taxable year, payments under Section 5.4 or 5.5 will not commence and the First Payment Date shall not occur until the second taxable year, irrespective of when the Release actually becomes irrevocable.
5.8    Reduction of Payments. Notwithstanding anything to the contrary in this Agreement, if Employee is a “disqualified individual” (as defined in Section 280G(c) of the Internal Revenue Code of 1986, as amended (the “Code”)), and the payments and benefits provided for in this Agreement, together with any other payments and benefits which Employee has the right to receive from the Company or any of its affiliates, would constitute a “parachute payment” (as defined in Section 280G(b)(2) of the Code), then the payments and benefits provided for in this Agreement shall be reduced (but not below zero) so that the present value of such total amounts and benefits received by Employee from the Company and its affiliates will be one dollar ($1.00) less than three times Employee’s “base amount” (as defined in Section 280G(b)(3) of the Code) and so that no portion of such amounts and benefits received by Employee shall be subject to the excise tax imposed by Section 4999 of the Code. The reduction of payments and benefits hereunder, if applicable, shall be made by reducing, first, payments or benefits to be paid in cash hereunder in the order in which such payment or benefit would be paid or provided (beginning with such payment or benefit that would be made last in time and continuing, to the extent necessary, through to such payment or benefit that would be made first in time) and, then, reducing any benefit to be provided in-kind hereunder in a similar order. The determination as to the extent of any such reduction in the amount of the payments and benefits provided hereunder shall be made by the Company in good faith. If a reduced payment or benefit is made or provided and through error or otherwise that payment or benefit, when aggregated with other payments and benefits from the Company (or its affiliates) used in determining if a “parachute payment” exists, exceeds one dollar ($1.00) less than three times Employee’s base amount, then Employee shall immediately repay such  excess to the Company  upon notification  that  an  overpayment has been made.  Nothing  in this Section 5.8 shall require

13

the Company to be responsible for, or have any liability or obligation with respect to, Employee’s excise tax liabilities under Section 4999 of the Code, if any.
     ARTICLE VI     
NON-COMPETITION AGREEMENT
6.1    Restrictive Covenants.     The Company has provided and shall provide in the future to Employee, Confidential Information.  Employee acknowledges that in the course of his employment with the Company as a member of the Company’s senior executive and management team, he has been given, and in the future shall be given, possession of and access to Confidential Information of the Company.  Employee further acknowledges that, in the course of his employment with the Company, he has been given contacts within the death care industry, and he has been and shall be identified with the business and goodwill of the Company.  Consequently, it is important that the Company protect its interests in regard to such matters from unfair competition.  In consideration of the Confidential Information that has been received and that the Company covenants to provide Employee in the future, the sufficiency of which is hereby acknowledged by Employee, and in order to protect the Company’s legitimate business interests, including the preservation of its Confidential Information and goodwill, Employee agrees to enter into the covenants contained in this Article VI.  The Parties therefore agree that for so long as the Employee shall remain employed by the Company and, if the employment of the Employee ceases for any reason (including voluntary resignation), then for a period of two (2) years thereafter (the “Prohibited Period”), the Employee shall not, directly or indirectly:
(a)    alone or for his own account, or as an officer, director, shareholder,  partner, member, trustee, employee, consultant, advisor, agent or any other capacity of any  corporation, partnership, joint venture, trust, or other business organization or entity, encourage, support, finance, be engaged in, interested in, or concerned with (i) any of the companies and entities described on Schedule I hereto, except to the extent that any activities in connection therewith are confined exclusively outside the continental United States, or (ii) any other business within the death care industry having an office or being conducted within a radius of fifty (50) miles of any funeral home, cemetery or other death care business owned or operated by the Company or any of its Affiliates at the time of such termination;
(b)    induce or assist anyone in inducing in any way any employee of the Company or any of its Affiliates to resign or sever his or her employment or to breach an employment contract with the Company or any Affiliate; or
(c)    own, manage, advise, encourage, support, finance, operate, join, control, or participate in the ownership, management, operation, or control of, or be connected in any manner with, any business which is or may be in the funeral, mortuary, crematory, cemetery or burial insurance business or in any business related thereto (i) as part of any of the companies or entities listed on Schedule I, or (ii) otherwise within a radius of fifty (50) miles of any funeral home, cemetery or other death care business owned or operated by the Company or any of its Affiliates at the time of such termination.

14

Notwithstanding the foregoing, the above covenants shall not prohibit the passive ownership of not more than one percent (1%) of the outstanding voting securities of any entity within the death care industry.  The foregoing covenants shall not be held invalid or unenforceable because of the scope of the territory or actions subject hereto or restricted hereby, or the period of time within which such covenants respectively are operative, but the maximum territory, the action subject to such covenants and the period of time they are enforceable are subject to any determination by a final judgment of any court which has jurisdiction over the Parties and subject matter.
6.2    Relief.  Employee and the Company agree and acknowledge that the limitations as to time, geographic area and scope of activity to be restrained as set forth in Section 6.1 are reasonable and do not impose any greater restraint than is necessary to protect the legitimate business interests of the Company.  Employee and the Company further agree and acknowledge that money damages would not be sufficient remedy for any breach of this Article VI by Employee, and the Company shall be entitled to enforce the provisions of this Article VI by terminating payments then owing to Employee under this Agreement or otherwise and to obtain specific performance and injunctive relief as remedies for such breach or any threatened breach.  Such remedies shall not be deemed the exclusive remedies for a breach of this Article VI but shall be in addition to all remedies available, at law or in equity, including the recovery of damages from Employee and his agents.  
6.3    Reasonableness; Enforcement.    Employee hereby represents to the Company that Employee has read and understands, and agrees to be bound by, the terms of this Article VI.  Employee acknowledges that the geographic scope and duration of the covenants contained in this Article VI are the result of arm’s-length bargaining and are fair and reasonable in light of (a) the nature and wide geographic scope of the operations of the Business, (b) Employee’s level of control over and contact with and association with the goodwill of the Business in all jurisdictions in which it is conducted, (c) the fact that the Business is conducted throughout the restricted area and (d) the Confidential Information that Employee is receiving in connection with the performance of Employee’s duties hereunder.  It is the desire and intent of the Parties that the provisions of this Article VI be enforced to the fullest extent permitted under applicable law, whether now or hereafter in effect and therefore, to the extent permitted by applicable law, Employee and the Company hereby waive any provision of applicable law that would render any provision of this Article VI invalid or unenforceable.
6.4    Reformation.  The Company and Employee agree that the foregoing restrictions are reasonable under the circumstances and that any breach of the covenants contained in this Article VI may cause irreparable injury to the Company.  Employee understands that the foregoing restrictions may limit Employee’s ability to engage in certain businesses in the restricted area and on behalf of certain entities during the Prohibited Period, but acknowledges that such restrictions will not prevent Employee from earning a living.  Nevertheless, if any of the aforesaid restrictions are found by a court of competent jurisdiction to be unreasonable, or overly broad as to geographic area or time, or otherwise unenforceable, the Parties intend for the restrictions therein set forth to be modified by the court making such determination so as to be reasonable and enforceable and, as so modified, to be fully enforced.   By agreeing to this    contractual  modification  prospectively at this time, the  Company and  Employee intend to make 

15

this provision enforceable under the law or laws of all applicable States and other applicable jurisdictions so that the entire agreement not to compete or to solicit other employees or customers and this Agreement as prospectively modified shall remain in full force and effect and shall not be rendered void or illegal.  Such modification shall not affect the payments made to Employee under this Agreement.  
     ARTICLE VII     
DISPUTE RESOLUTION
7.1    Choice of Law.  The Parties stipulate that this Agreement has been entered into in the State of Texas and this Agreement shall be construed and interpreted and the rights of the Parties governed by the internal laws of the State of Texas, without regard to the conflict of law principles thereof. 
7.2    Venue.   The Parties submit to the exclusive jurisdiction of the state and federal courts, as applicable, located in Houston, Texas, and appropriate appellate courts therefrom, over any dispute, controversy or claim between Employee and the Company arising out of or relating to this Agreement or Employee’s employment with the Company.  Each Party submits to the jurisdiction of such courts and agrees not to raise any objections to such jurisdiction.
    ARTICLE VIII     
MISCELLANEOUS
8.1    Successors; Assigns.  This Agreement is personal to Employee, and neither this Agreement nor any rights or obligations hereunder shall be assignable or otherwise transferred by Employee.  With Employee’s consent, the Company may assign this Agreement to any Affiliate or successor (whether by merger, purchase or otherwise) to all or substantially all of the equity, assets or businesses of the Company.  Subject to the foregoing, this Agreement shall be binding upon and inure to the benefit of the Parties and their respective successors and assigns.  
8.2    Notices.  For purposes of this Agreement, notices and all other communications provided for herein shall be in writing and shall be deemed to have been duly given (a) when received if delivered personally or by courier, (b) on the date receipt is acknowledged if delivered by certified mail, postage prepaid, return receipt requested, as follows:
		
	If to Employee, addressed to:
	David J. DeCarlo 
4501 Gulf Shore Blvd N 
Unit 1901

Naples, FL 34103

		
	If to the Company, addressed to:
	Carriage Services, Inc. 
3040 Post Oak Blvd., Suite 300

Houston, TX  77056    Attn: Chief Executive Officer
or to such other address as either Party may furnish to the other in writing in accordance herewith, except that notices or changes of address shall be effective only upon receipt.

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8.3    No Waiver.  No failure by either Party hereto at any time to give notice of any breach by the other Party of, or to require compliance with, any condition or provision of this Agreement shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time.
8.4    Severability.  If a court of competent jurisdiction determines that any provision of this Agreement is invalid or unenforceable, then the invalidity or unenforceability of that provision shall not affect the validity or enforceability of any other provision of this Agreement, and all other provisions shall remain in full force and effect.
8.5    Counterparts.  This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original, but all of which together will constitute one and the same Agreement.
8.6    Withholding of Taxes and Other Employee Deductions.  The Company may withhold from any benefits and payments made pursuant to this Agreement all federal, state, city and other taxes as may be required pursuant to any law or governmental regulation or ruling and all other employee deductions made with respect to the Company’s employees generally.
8.7    Headings.  The Article and Section headings have been inserted for purposes of convenience and shall not be used for interpretive purposes.
8.8    Effect of Termination of Employment Relationship.  The provisions of Articles IV, V, VI, VII, and VIII, and those provisions necessary to interpret and apply them, shall survive any termination of this Agreement and any termination of the employment relationship between the Company and Employee.
8.9    Entire Agreement.  Except as provided in the written plans and programs referenced in Section 3.5 and 3.7, this Agreement constitutes the entire agreement of the Parties with regard to the subject matter hereof and contains all the covenants, promises, representations, warranties and agreements between the Parties with respect to the employment of Employee by the Company.  Without limiting the scope of the preceding sentence, all understandings and agreements preceding the date of execution of this Agreement and relating to the subject matter hereof, are hereby null and void and of no further force and effect, and this Agreement shall supersede all other agreements, written or oral, that purport to govern the terms of Employee’s employment (including Employee’s compensation) with the Company or any of its Affiliates.  
8.10    Modification; Waiver.  Any modification to or waiver of this Agreement will be effective only if it is in writing and signed by the Party to be charged.
8.11    Advice of Counsel.  Employee acknowledges that Employee has been instructed to, and has had adequate opportunity to obtain, the advice of his own counsel in connection with this Agreement. 
8.12    Section 409A of the Code.  Notwithstanding any provision of this Agreement to the contrary, if Employee is considered a “specified employee” upon his termination from employment under such procedures as established by the Company in accordance with the 

17

limitations and requirements set forth in Section 409A of the Code, the regulations promulgated thereunder, and any additional guidance issued by the Internal Revenue Service related thereto (the “Nonqualified Deferred Compensation Rules”), then any portion of a cash payment or benefit distribution made upon such a termination from employment under Section 5.4 or 5.5 or otherwise that would cause the acceleration of, or an addition to, any taxes pursuant to the Nonqualified Deferred Compensation Rules may not commence earlier than six months after the date of such termination from employment; except to the extent any such payments or benefits would be exempt from the Nonqualified Deferred Compensation Rules, which such payments and benefits shall be paid in accordance with the original schedules noted in other sections of this Agreement.  Therefore, in the event this Section 8.12 is applicable to Employee, any payment or distribution under Section 5.4 or 5.5 or otherwise that would cause the acceleration of, or an addition to, any taxes pursuant to the Nonqualified Deferred Compensation Rules that would otherwise have been paid to Employee within the first six months following Employee’s termination from employment shall be accumulated and paid to Employee, without interest, in a lump sum on the first day of the seventh month following his termination from employment (except to the extent exempt from the Nonqualified Deferred Compensation Rules).  If any provision of this Agreement does not satisfy the requirements of Section 409A of the Code, then such provision shall nevertheless be applied in a manner consistent with those requirements.  In no event whatsoever shall the Company be liable for any tax, interest or penalties that may be imposed on Employee under Section 409A of the Code.  Each payment under this Agreement is intended to be a “separate payment” and not a series of payments for purposes of Section 409A of the Code.  Any payments or reimbursements of any expenses provided for under this Agreement shall be made in accordance with Treas. Reg. §1.409A-3(i)(1)(iv).
8.13    Affiliates.  For purposes of this Agreement (including Schedule I hereto), an “Affiliate” of an entity is an entity that directly or indirectly controls, is under the control of, or is under common control with, such entity.
[Remainder of Page Intentionally Blank;
Signature Page Follows]

18

Signature Page to 
Employment Agreement

SCHEDULE I

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

Service Corporation International
Keystone North America, Inc.
Meridian Mortuary Group, Inc.
StoneMor Partners LP
Saber Management LLC
Thomas Pierce & Co.
Legacy Funeral Holdings, LLC
Northstar Memorial Group, LLC
Foundation Partners
The Signature Group

		
	2.
	Any new entity which may hereafter be established which acquires any combination of five or more funeral homes and/or cemeteries.

		
	3.
	Any funeral home, cemetery or other death care enterprise which is managed by any entity described in 1 or 2 above.

Schedule I - 1EXHIBIT 10.1

 

Exclusive Songwriter Agreement

THIS AGREEMENT made and entered
into as of this 1st day of March, 2014, by and between Latigo Shore Music, Inc. ("Publisher")(ASCAP), a California
corporation with offices located at 4603 Park Mirasol, Calabasas, California 97302, and Jess Boeschen p/k/a Jeston Cade ("Writer")(ASCAP),
whose address is 100 Middleton Street, Apartment 306, Nashville, TN 37210.

IN CONSIDERATION
of the mutual covenants and agreements contained herein and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties hereto agree as follows:

1.Engagement.
Publisher hereby engages Writer to render Writer's exclusive services during the Term hereof as an author, arranger, adaptor
of musical compositions, songwriter and composer and otherwise as may be hereinafter set forth. Writer hereby accepts such engagement
and agrees to render such services exclusively for Publisher during the Term hereof, upon the terms and conditions set forth herein.
Writer further agrees to devote the necessary time, attention, skill and energy to Writer's duties hereunder and to render Writer's
services diligently and to the best of Writer's ability to the end that the intent and purposes of this Agreement may be fully
realized and achieved.

2. Term.

(a) The Term
of this Agreement shall commence as of the date first set out above, and consist of an initial period of one (1) year from the
commencement date hereof, subject to fulfillment by Writer of Writer’s Minimum Delivery Obligation as provided for herein
(“Initial Period”).

(b)
Writer hereby grants to Publisher two (2) separate, irrevocable, and consecutive options (each, an “Option”) to
extend the term of the Agreement for additional periods of one (1) year from the end of the immediately preceding period, with
the first such Option Period being referred to herein as the “First Option Period” and the second Option Period as
the “Second Option Period”. Each respective option shall be deemed automatically exercised by the Publisher unless
Publisher gives written notice to Writer, at least thirty (30) days prior to the expiration of the then current term,
of its intention not to exercise the relevant option. No expiration or other termination of the Term of this Agreement shall affect
the rights of Publisher in any of the Compositions (as defined in Paragraph 4(b) below).

3. Minimum
Delivery Obligation.

(a)(i)Upon
execution of this Agreement, Writer shall deliver to Publisher those existing Compositions set forth on Schedule A attached
hereto (“Schedule A Compositions”). For purposes of clarity, delivery of Schedule A Compositions shall not apply or
count toward Writer’s Minimum Delivery Obligation (defined below).

(ii)During
each annual contract period, Writer shall deliver to Publisher in satisfaction of Writer’s minimum delivery obligation (“Writer’s
Minimum Delivery Obligation”) at a minimum the equivalent of twelve (12) New Compositions (as defined in Paragraph 4(a) below)
entirely created by Writer which are commercially and artistically satisfactory to Publisher in Publisher’s reasonable good
faith judgment. A New Composition shall be deemed commercially and artistically satisfactory unless Publisher provides Writer written
notice of rejection within ten (10) days of Writer’s delivery of such New Composition. If Publisher shall reject any New
Composition as unsatisfactory, such New Composition shall nonetheless be subject to the terms of this Agreement, but shall not
count in the reduction of Writer’s Minimum Delivery Obligation. Both Writer and Publisher acknowledge and agree that the
complete and timely fulfillment of Writer’s Minimum Delivery Obligation is a material term of this Agreement.

10.1-1

     

     

    

 

(iii) New
Compositions(s) not entirely created by Writer shall apply in reduction of Writer’s Minimum Delivery Obligation as a fractional
New Composition(s) in proportion to Writer’s fractional creative contribution to such New Composition.

 

(iv)No
New Composition shall contain any samples(s) without Publisher’s consent. If a New Composition(s) contains a sample which
has been used with Publisher’s consent, Writer’s fractional creative contribution to the New Composition shall be reduced
by: (A) a percentage equal to the percentage of the New Composition copyright assigned to the owner of the sample in question,
or (B) the income participation percentage in the New Composition granted to the owner of the sample, as applicable.

(b)(i)Each
New Composition shall be delivered to Publisher promptly after such New Composition is created. Each New Composition and part thereof
shall be deemed created and subject hereto as a New composition at the earliest point in time when that New Composition or any
part thereof is initially the subject matter of copyright and in which copyright protection may subsist in accordance with the
copyright laws of the United States or, if earlier, in accordance with the copyright laws of any other country throughout the world
in which a New Composition has been created;

(ii) Delivery
of a Composition shall only occur when Writer has submitted to Publisher and Publisher has received:

(A) a digital
or compact disc recording, including work tape(s);

(B) a complete
and legible lyric sheet;

(C) complete
and accurate writer/co-publisher information, including, without limitation, the names and addresses of all co-writers and co-publishers
and their percentage authorship and ownership;

(D) Specifically
with respect to musical compositions containing samples which have been “cleared,” clearance agreements with respect
to the portion of any third party copyright used; and

(E) Specifically
with respect to existing Compositions and acquired Compositions, all data and records in Writer’s or Writer’s former
publisher(s), as applicable, possession or control regarding the copyrights therein and the interests of any co-composers, co-owners
and/or other parties in such Compositions, including, without limitation, certificates of registration, correspondence, song files,
demo recordings and existing licenses with respect thereto.

(c)(i)If
Writer shall fail, refuse or be unable to deliver to Publisher at least one-half (1/2) of the New Compositions constituting Writer’s
Minimum Delivery Obligation during the first six months of each year of the Term of this Agreement, or shall fail, refuse or be
unable to deliver the remaining one-half (1/2) of the New Compositions constituting Writer’s Minimum Delivery Obligation
at least thirty (30) days prior to the end of each year of the term hereof, then, in addition to all of Publisher’s other
rights and remedies at law or in equity, the then current contract period may be immediately suspended upon notice to Writer in
the sole discretion of Publisher.

(ii)If
Writer shall otherwise fail, refuse or be unable to perform Writer’s material obligations under this Agreement, in addition
to all of Publisher’s other rights and remedies at law or in equity, Publisher shall have the right upon written notice to
Writer to suspend the then current contract period of this Agreement.

10.1-2

     

     

    

 

(iii)Any
period of suspension shall continue until the applicable failure, refusal or inability has been remedied, and Publisher has received
written notice from Writer of the remedying of the defect. Without in any way limiting the generality of the foregoing, Publisher’s
right to exercise any option hereunder shall not lapse during any period of suspension, and the time for Publisher to exercise
any option shall be extended automatically until the expiration of the period of suspension referenced in the immediately preceding
sentence. In the event a period of suspension continues for longer than ninety (90) days, Publisher shall have the right to terminate
this Agreement by written notice to Writer.

(iv)During
any period of suspension, Publisher shall be relieved of all of its obligations hereunder, except that Publisher shall not suspend
its obligation to account and pay royalties to Writer.

4. Grant
of Rights.

(a)Writer
hereby irrevocably and absolutely assigns, transfers, sets over and grants to Publisher, its successors and assigns, each and every
and all rights and interests of every kind, nature and description (i) in and to the results and proceeds of Writer's songwriting
and composing services hereunder, including but not limited to, the titles, words and music of any and all original musical compositions
in any and all forms and related works and materials, and original arrangements of musical compositions in the public domain in
any and all forms, and all rights and interests, together with all worldwide copyrights and renewals and extensions thereof, which
musical works may hereafter, during the Term hereof, be written, composed, created, conceived, arranged, adapted, owned or controlled,
directly or indirectly, by Writer (or by any person or entity owned or controlled by Writer in whole or in part), in whole or in
part, alone or in collaboration with another or others, and all worldwide copyrights and renewals and extensions thereof. Subject
to paragraph All such musical compositions shall at all times be Publisher's sole and exclusive property as the sole owner thereof,
free from any adverse claims or rights therein, by any other person, firm or corporation.

(b)New Compositions
and Schedule A Compositions hereinafter are collectively referred to as the "Compositions."

(c)Writer
acknowledges that included within the rights and interests hereinabove referred to, but without limiting the generality of the
foregoing, is Writer's irrevocable grant to Publisher, its successors, licensees, sublicenses and assigns, of the sole and exclusive
right, license, privilege and authority, throughout the entire world with respect to the said Compositions, whether now in existence
or hereafter created during the Term hereof, as follows:

(i) To perform and
license others to perform the Compositions publicly, whether for profit or otherwise, by means of public or private performance,
radio broadcast, television, electronic and/or digital transmission, or any and all other means, whether now known or hereafter
conceived or developed;

(ii) To substitute
a new title or titles for the Compositions or any of them and to make any arrangement, adaptation, translation, dramatization or
transposition of any or all of the Compositions or of the titles, lyrics or music thereof, in whole or in part, and in connection
with any other musical, literary or dramatic material, and to add new lyrics to the music of any Compositions or new music to the
lyrics of any Compositions, all as Publisher may deem necessary or desirable in its reasonable business judgment; provided, Publisher
shall not authorize any changes to a Composition which would reduce royalties payable to Writer hereunder, or authorize any material
or fundamental change to the title, music or lyrics of a Composition, except with respect to foreign translations, without the
consent of Writer, such consent not to be unreasonably withheld.

(iii) To secure copyright
registration and protection of the Compositions in Publisher’s name or otherwise, as Publisher may desire, at Publisher’s
own cost and expense, and at Publisher’s election, including any and all renewals and extensions of copyright under any present
or future laws throughout the world, and to have and to hold said copyrights, renewals and extensions and all rights existing thereunder,
for and during the full term of all said copyrights and all renewals and extensions and all rights existing thereunder, for and
during the full term of all said copyrights and all renewals and extensions thereof;

10.1-3

     

     

    

 

(iv) To make and/or
authorize the making of mechanical and/or electronic reproductions of the Compositions in and as part of master recordings, computer
software, and any and all other audio only and/or audio visual devices whether now in existence or as hereafter devised;

(v) To authorize the
synchronization of the Compositions in audio visual productions including, without limitation, in the soundtracks of motion pictures,
in television productions, in commercial advertisements, in computer software devices, and in merchandise;

(vi) To print, publish
and sell, and to license others to print, publish and sell, sheet music, orchestrations, arrangements and other editions of the
Compositions in all forms, by any means, and in any and all media, now known or hereafter devised including, without limitation,
the inclusion of any or all of the Compositions in song folios, compilations, song books, missed folios, personality folios and
lyric magazines with or without music;

(vii)To authorize the digital
or electronic reproduction or distribution of the Compositions by any means or method including, without limitation, by way of
the Internet, satellite or otherwise and in any and all media now known or hereafter devised;

(viii)Any and all other
rights now or hereafter existing in all Compositions under and by virtue of any common law rights and all copyrights and renewals
and extensions thereof including so-called small performance rights. Writer grants to Publisher, without any compensation other
than as specified herein, the perpetual right to use and publish and to permit others to use and publish Writer’s name (including
any professional name heretofore or hereafter adopted by Writer), Writer’s approved photograph or other approved likeness,
or any approved reproductions or simulation thereof, and biographical material concerning Writer, and the titles of any and all
of the Compositions, solely and directly in connection with the printing, sale, advertising, performance, distribution and other
exploitation of the Compositions, and for purposes of trade and advertising related to the business of Publisher, its affiliated
and related companies, or to refrain therefrom. Publisher shall obtain Writer’s prior approval, not to be unreasonably withheld,
with regard to Publisher’s use of Writer’s photographs or other likeness, or any reproductions or simulation thereof,
or biographical material. Writer grants Publisher the right to refer to Writer as Publisher’s “Exclusive Songwriter
and Composer” or to use any other similar and appropriate designation, during the term hereof; and

(ix)Notwithstanding the
foregoing, with respect to each of the rights granted under this Section 4(c)(i)-(viii), Writer shall have the right of prior written
approval, not to be unreasonably withheld or delayed, in respect of any synchronization licensing of the Compositions in connection
with (i) political or religious advertisements or endorsements of any kind; (ii) motion pictures which receive an "X"
or "NC-17" rating (or any television program having the equivalent rating), provided such rating was known to Publisher
at the time of licensing; or (iii) any advertisement used in connection with the promotion or sale of tobacco, alcohol, firearms,
social issues or feminine hygiene products. For the avoidance of doubt, the consent rights shall be deemed personal to Writer and
are not transferable.

5. Exclusivity.
During the Term of this Agreement, Writer shall not write or compose, or furnish or dispose of, any Composition, titles, lyrics
or music, or any rights or interests therein whatsoever, for or to any person, firm or corporation other than Publisher.

6. Warranties, Representations,
Covenants and Agreements. Writer hereby warrants, represents, covenants and agrees as follows:

(a)Writer has the full
right, power and authority to enter into and perform this Agreement and to grant to and vest in Publisher all the rights herein
set forth, free and clear of any and all claims, rights and obligations whatsoever;

10.1-4

     

     

    

 

(b)All of the Compositions
and all other results and proceeds of the services of Writer hereunder, including all of the titles, lyrics and music of the Compositions,
and each and every part thereof, delivered and to be delivered by Writer hereunder, are and shall be new and original and capable
of copyright protection, throughout the universe;

(c)No Composition hereunder,
nor any part thereof, shall be an imitation or copy of or shall infringe upon any other material, or shall violate or infringe
upon any common law or statutory rights of any party including without limitation, contractual rights, copyrights and rights of
privacy; and,

(d)Except as expressly
provided for herein, Writer has not sold, assigned, leased, licensed or in any other way disposed of or encumbered any Composition
or rights herein granted to Publisher, nor shall Writer sell, assign, lease, license or in any other way dispose of or encumber
any of the Compositions, or any of said rights.

7. Exploitation.
Publisher reserves the right to determine, in its sole discretion, the manner, extent and means of exploiting the Compositions
subject to the terms and conditions of this Agreement; provided, however, Publisher agrees to use reasonable efforts to exploit
Compositions in accordance with its customary business practices. Publisher agrees that all licenses granted by Publisher pursuant
to this Agreement, including without limitation, those with affiliates of Publisher, shall be on good faith terms and at arms length.

8. Limited Power of
Attorney.Writer hereby irrevocably constitutes, authorizes, empowers and appoints Publisher or any of its officers Writer’s
true and lawful attorney (with full power of substitution and delegation), solely for purposes related to rights granted hereunder,
in Writer’s name, and in Writer’s place and stead, or in Publisher’s name, to take and do such action, and to
make, sign, execute, acknowledge and deliver any and all instruments or documents, which Publisher from time to time may deem desirable
or necessary to vest in Publisher, its successors and assigns, all of the rights or interests granted by Writer hereunder, including,
without limitation, such documents as Publisher shall deem desirable or necessary to secure to Publisher, its successors and assigns,
the worldwide copyrights for all Compositions for the entire term of copyright and for any and all renewals and extensions under
any present or future laws throughout the world. Publisher shall provide Writer a copy of any such instrument or document referenced
in the preceding sentence.

9. Advances.
In consideration of the rights herein granted, Publisher shall pay to Writer during the Term a fully recoupable advance against
royalties as follows:

(a)Initial
Period. Twenty Thousand Dollars ($20,000.00) per year, payable in twelve (12) equal monthly installments of One Thousand, Six
Hundred Sixty-Six Dollars and Sixty-Six cents ($1,666.66), payable on the first day of each calendar month commencing on the date
hereof.

(b)First
Option Period. Twenty Five Thousand Dollars ($25,000.00) per year, payable in twelve (12) equal monthly installments of Two
Thousand Eighty Three Dollars and Thirty-Three Cents ($2,083.33), payable on the first day of each calendar month commencing on
the first day of the First Option Period, if any.

(c)Second
Option Period. Thirty Five Thousand Dollars ($35,000.00) per year, payable in twelve (12) equal monthly installments of Two
Thousand Nine Hundred Sixteen Dollars and Sixty-Six Cents ($2,916.66), payable on the first day of each calendar month commencing
on the first day of the Second Option Period, if any.

(d)Schedule
A Compositions. Two Thousand Five Hundred Dollars ($2,500) upon full execution of this Agreement.

(e)Writer’s
Attorney’s Fees. Two Thousand Five Hundred Dollars ($2,500) upon full execution of this Agreement.

10.1-5

     

     

    

 

10.Additional
Compensation to Writer. Publisher shall cause Five Thousand (5,000) Shares of Rokwader, Inc. Common Stock to be issued
to Writer or to Writer’s designee upon full execution of this Agreement. In the event Publisher extends the term of this
Agreement for the First Option Period, Publisher shall cause Ten Thousand (10,000) Shares of Rokwader, Inc. Common Stock to be
issued to Writer or to Writer’s designee Writer may divide such shares in Writer’s sole discretion). In the event Publisher
extends the term of this Agreement for the Second Option Period, Publisher shall cause Ten Thousand (10,000) Shares of Rokwader,
Inc. Common Stock to be issued to Writer or to Writer’s designee.  

11. Royalties. Provided
Writer faithfully and completely performs the material terms, covenants and conditions of this Agreement, Publisher hereby agrees
to pay Writer for the services to be rendered by Writer under this Agreement, and for the rights acquired and to be acquired hereunder,
the following compensation:

(a) Ten
percent (10%) of the wholesale selling price for each copy of sheet music in standard piano/vocal notation and each dance
orchestration printed, published and sold in the United States and Canada by Publisher or its licensees, for which payment
shall have been received by Publisher, after deduction of returns.

(b) Ten
percent (10%) of the wholesale selling price of each printed copy of each other arrangement and edition printed, published
and sold in the United States and Canada by Publisher or its licensees, for which payment shall have been received by
Publisher, after deduction of returns, except that in the event that any Compositions shall be used or caused to be used, in
whole or in part, in conjunction with one or more other musical compositions in a folio, compilation, song book or other
publication, Writer shall be entitled to receive that proportion of the foregoing royalty which the number of Compositions
contained therein shall bear to the total number of musical compositions therein.

(c) Fifty
percent (50%) of any and all net sums actually received (less any costs for collection) by Publisher in the United States
from the exploitation in the United States and Canada by licensees of mechanical rights, electrical transcription and
reproduction rights, motion picture and television synchronization rights, dramatization rights and all other rights therein
(except print rights, which are covered in (a) and (b) above, and public performance rights, which are covered in (d) below),
whether or not such licensees are affiliated with, owned in whole or in part by, or controlled by Publisher.

(d) Writer shall receive
his public performance royalties throughout the world directly from the performing rights society with which he is affiliated,
and shall have no claim whatsoever against Publisher for any royalties received by Publisher from any performing rights society
which makes payment directly (or indirectly other than through Publisher) to writers, authors and composers. If, however, Publisher
shall collect both the Writer’s and Publisher’s share of performance income directly and such income shall not be collected
by Writer’s public performance society, Publisher shall credit to Writer’s account fifty percent (50%) of all such
net sums which are received by Publisher in the United States from the exploitation of such rights in the Compositions, throughout
the world, without regard to recoupment.

(e) Fifty
percent (50%) of any and all net sums, after deduction of foreign taxes, actually received (less any costs for collection) by
Publisher in the United States from the exploitation of the Compositions in countries outside of the United States and Canada
(other than public performance royalties, which are covered in (d) above), whether from collection agents, licensees,
subproducers or others, and whether or not same are affiliated with, owned in whole or in part by, or controlled by
Publisher.

(f) Publisher shall not
be required to pay any royalties on professional or complimentary printed copies or records or on printed copies or records which
are distributed gratuitously to performing artists, orchestra leaders and disc jockeys or for advertising, promotional or exploitation
purposes. Furthermore, no royalties shall be payable to Writer on consigned copies unless paid for, and not until such time as
an accounting therefore can properly be made.

10.1-6

     

     

    

 

(g)
Royalties as hereinabove specified shall be payable solely to Writer in instances where Writer is the sole author of a
Composition, including the lyrics and music thereof. However, in the event that one or more other songwriters are authors
together with Writer of any Composition (including songwriters employed by Publisher to add, change or translate the lyrics
or to revise or change the music), the foregoing royalties shall be divided equally among Writer and the other songwriters
unless another division of royalties shall be agreed upon in writing between the parties concerned and timely written notice
of such division is submitted to Publisher prior to payment.

(h)
Except as herein expressly provided, no other royalties or monies shall be paid to Writer.

(i) Writer agrees and
acknowledges that Publisher shall have the right to withhold from the royalties payable to Writer hereunder such amount, if
any, as may be required under the provisions of all applicable Federal, State and other tax laws and regulations, and Writer
agrees to execute such forms and other documents as may be required in connection therewith.

(j) In no event shall
Writer be entitled to share in any advance payments which Publisher shall receive in connection with any subpublishing
agreement, collection agreement, licensing agreement or other agreement covering the Compositions or any of them.

12. Accounting.

(a)
Publisher shall compute the total royalties earned by Writer pursuant to this Agreement on or before March 31st for the
semi-annual period ending the preceding December 31st and on or before September 30th for the semi-annual period ending the
preceding June 30th, and shall thereupon submit to Writer the royalty statement in the same format as rendered to
all other songwriters signed to Publisher for each such period together with the net amount of such royalties, if any, as
shall be payable after deducting any and all unrecouped advances and costs permitted to be charged to Writer paid prior to
the end of the applicable period under this Agreement. Publisher also agrees that its agreements with foreign subpublishers
provide that each said subpublisher shall remit royalties to Publisher in a timely fashion pursuant to the terms of their
agreements with Publisher. All statements rendered by Publisher to Writer shall be binding upon Writer, and not subject to
objection by Writer for any reason unless specific written objection, stating the basis thereof, is received by Publisher
within three (3) years from the date the statement is rendered. For the purpose of calculating such time periods, a statement
shall be deemed to have been rendered when due unless Publisher receives notice of non-receipt from Writer within thirty (30)
days thereafter. However, Writer's failure to give such notice or object thereto shall not affect Writer's right to receive
such statement (and, if applicable, Writer's royalty payment) after such thirty (30) day period. A certified
public accountant who is not then engaged in an audit of Publisher's books and records designated by Writer may, at Writer's
sole expense, not more than once per year, examine Publisher's books insofar as same concern Writer, during Publisher's usual
business hours, at the place where such books and records are customarily maintained, upon thirty (30) days prior written
notice, for the purpose of verifying the accuracy of any statement rendered to Writer hereunder. Publisher’s books
relating to activities during any accounting period may only be examined once as aforesaid, during the aforementioned three
(3) year period. Legal action with respect to a specific accounting statement and/or the accounting period to which the same
relates shall forever be barred if not commenced in a court of competent jurisdiction within three (3) years after such
statement is rendered.

(b) In
the event that Publisher shall not receive payment in United States dollars in the United States from any foreign licensee,
Publisher may deposit to Writer’s credit in Writer's name (and at Writer’s expense) in such foreign currency, in
a depository selected by Publisher, any payments so received as royalties applicable to this contract which are then payable
to Writer. Publisher shall notify Writer thereof promptly and such deposit shall constitute Publisher's full compliance with
Publisher's obligation to pay such royalties to Writer.

10.1-7

     

     

    

 

13. Collaboration.
Whenever Writer shall collaborate with any other person in the creation of a Composition, the Writer’s portion of the Composition
shall be subject to the terms and conditions of this Agreement, and Writer warrants, represents and agrees that prior to such collaboration
Writer shall advise such other person of this Agreement. In the event of any such collaboration, Writer shall notify Publisher
of the nature and extent of Writer’s and such other person’s contribution to the Composition, and Writer shall ensure
that Publisher is not restricted in its rights under this Agreement to receive the copyright in and the exclusive right to control
the exploitation of such collaboration Composition with respect to that portion of such collaboration Composition and to the extent
created by Writer. In the event Publisher shall accept such fractional collaborative Composition, Publisher will credit Writer’s
Delivery Commitment in proportion to Writer’s fractional creative contribution in the collaborative Composition and compensate
Writer in same proportion in accordance with the terms of this Agreement. Any casual or inadvertent non-repetitive failure to comply
with the provisions of this paragraph shall not be a material breach of this Agreement.

14. Separate
Assignments. If Publisher so desires, Publisher may request Writer to execute a separate assignment in Publisher’s
customary form with respect to each Composition hereunder. Upon such request, Writer shall promptly execute and deliver such
separate assignment, and upon Writer’s failure to do so, Publisher shall have the right, pursuant to the terms and
conditions hereof, to execute such separate assignment on behalf of Writer. Such separate assignment shall supplement and not
supersede this Agreement. In the event of any conflict between the provisions of such separate assignment and this Agreement,
the provisions of this Agreement shall govern. The failure of either of the parties hereto to execute such separate
assignment, whether such execution is requested by Publisher or not, shall not affect the rights of each of the parties
hereunder, including but not limited to the rights of Publisher to all of the Compositions written, composed or acquired by
Writer during the term hereof.

15. Writer's Services.

(a) Writer shall perform
his required services hereunder conscientiously, and solely and exclusively for and as requested by Publisher. Writer shall duly
comply with all requirements and requests made by Publisher in connection with its business as set forth herein. Writer shall deliver
a manuscript copy, digital or tape copy of each Composition immediately upon the completion or acquisition of such Composition.
Publisher shall use its reasonable efforts in its reasonable business judgment to exploit all Compositions hereunder, but Publisher’s
failure to exploit any or all of said Compositions shall not be deemed a breach hereof. Publisher at its sole discretion shall
reasonably arrange to make studio facilities available for Writer so that Writer, subject to the supervision and control of Publisher,
may produce demonstration records of the Compositions. Publisher shall also have the right to produce demonstration records hereunder.
Writer shall not incur any liability for which Publisher shall be responsible in connection with any demonstration record session
without having obtained Publisher’s prior written approval as to the nature, extent and limit of such liability. In no event
shall Writer incur any expense whatsoever on behalf of Publisher without having received prior written authorization from Publisher.
Writer shall not be entitled to any compensation (except for such compensation as is otherwise provided for herein) with respect
to services rendered in connection with any such demonstration record sessions. Publisher agrees to pay budgeted expenses for the
production of demonstration recordings in an amount to be approved by Publisher. One-half (1/2) of such budgeted and approved demonstration
recording costs shall be deemed additional advances to Writer hereunder and shall be recouped by Publisher from royalties payable
to Writer by Publisher under this Agreement or any other agreement between Writer and Publisher or its affiliates. All recordings
and reproductions made at demonstration record sessions hereunder shall become the sole and exclusive property of Publisher, free
of any claims whatsoever by Writer or any person deriving any rights from Writer; provided, Publisher shall not have the right
to commercially exploit demonstration recordings produced hereunder without Writer’s written approval.

10.1-8

     

     

    

 

(b)
Writer agrees to travel to Los Angeles, California at least once per contract period for the purpose of writing compositions
to be delivered to Publisher hereunder. In the event Publisher requests, and Writer agrees, to make additional trips to
California for the purpose of writing compositions, the provisions of this paragraph shall apply to such travel. Publisher
and Writer shall agree on accommodations and other travel details in good faith in advance of travel and shall establish a
written budget related to such travel. Publisher agrees to pay approved budgeted travel expenses. One-half (1/2) of such
budgeted and approved travel expenses shall be deemed additional advances to Writer hereunder and shall be recouped by
Publisher from royalties payable to Writer by Publisher under this Agreement or any other agreement between Writer and
Publisher or its affiliates.

(c) Writer shall, from
time to time, at Publisher’s reasonable request and sole expense, and whenever same will not unreasonably interfere with
prior professional engagements of Writer, appear for photography, artwork and other similar purposes under the direction of Publisher
or its duly authorized agent, appear for interviews and other promotional purposes, and confer and consult with Publisher regarding
Writer’s services hereunder. Writer shall also cooperate with Publisher in promoting, publicizing and exploiting the Compositions
and for any other purpose related to the business of Publisher. Writer shall not be entitled to any compensation (other than applicable
union scale if appropriate) for rendering such services, but shall be entitled to reasonable transportation and living expenses
(e.g., hotel accommodations and per diem, if applicable) if such expenses must be incurred in order to render such services.

16. Unique Services.
Writer acknowledges that the services rendered hereunder are of a special, unique, unusual, extraordinary and intellectual character
which gives them a peculiar value, the loss of which cannot be reasonably or adequately compensated in damages in an action at
law, and that a breach or threatened breach by Writer of any of the material provisions of this Agreement may cause Publisher great
and irreparable injury and damage. Writer expressly agrees that Publisher shall be entitled to seek the remedies of injunction
and other equitable relief to prevent such breach of this Agreement or any provision hereof, which relief shall be in addition
to any other remedies, for damages or otherwise, which may be available to Publisher.

17. Actions. Publisher
shall have the exclusive right to take such action as it deems necessary, either in Writer’s name or in its own name or in
both names, against any party to protect all rights and interests acquired by Publisher hereunder. Writer shall cooperate fully
with Publisher in any controversy which may arise or litigation which may be brought concerning Publisher’s rights and interests
acquired hereunder. Publisher shall have the right, in its discretion, to employ attorneys and to institute or defend against any
claim, action or proceeding, whether for infringement of copyright or otherwise, and to take any other necessary steps to protect
the right, title and interest of Publisher in and to each Composition and, in connection therewith, to settle, compromise or in
any other manner dispose of any such claim, action or proceeding and to satisfy or collect on any judgment which may be rendered.
If Publisher shall recover on a judgment or as a result of a settlement with respect to any claim, action or proceeding for copyright
infringement initiated by Publisher, all of Publisher’s expenses in connection therewith, including, without limitation,
attorney’s fees and other costs, shall first be deducted, and fifty percent (50%) of the net proceeds shall be credited to
Writer’s account.

10.1-9

     

     

    

 

18.Indemnity. Writer
hereby indemnifies, saves and holds Publisher, its successors and assigns, harmless from any and all liability, claims, demands,
loss and damage (including counsel fees and court costs) arising out of or connected with any claim or action by a third party
which is inconsistent with any of the warranties, representations or agreements made by Writer in this Agreement which results
in a final non-appealable judgment by a court of competent jurisdiction, and Writer shall reimburse Publisher, on demand, for any
loss, cost, expense or damage to which said indemnity applies. Publisher shall give Writer prompt written notice of any claim or
action covered by said indemnity, and Writer shall have the right, at Writer’s expense, to participate in the defense of
any such claim or action with counsel of Writer’s choice. Pending the disposition of any such claim or action, Publisher
shall have the right to withhold payment of such portion of any monies which may be payable by Publisher to Writer under this Agreement
or under any other agreement between Writer and Publisher or its affiliates as shall be reasonably related to the amount of the
claim and estimated outside counsel fees and costs. If Publisher shall settle or compromise any such claim or action, the foregoing
indemnity shall cover only that portion (if any) of the settlement or compromise which shall have been approved in writing by Writer,
and Writer hereby agrees not unreasonably to withhold any such approval. Notwithstanding the foregoing, if Writer shall withhold
approval of any settlement or compromise which Publisher is willing to make upon advice of counsel and in its best business judgment,
Writer shall thereupon deliver to Publisher an indemnity or surety bond, in form satisfactory to Publisher, which shall cover the
amount of the claim and estimated outside counsel fees and costs, and if Writer shall fail to deliver such bond within ten (10)
business days, Writer shall be deemed to have approved of said settlement or compromise.

19. Notices. All
notices, statements and payments required or desired to be given hereunder shall be sent to the applicable party at the address
set forth herein or to such other address as such party may hereafter designate by notice in writing to the other party. Notices
will be sent either by certified mail, return receipt requested (and in the case of notices sent to or from a location outside
the United States, by air mail), or by personal delivery or air express (e.g., Federal Express, DHL or any other similar
type of first class overnight courier service that gives the sender a proof of delivery) and will be deemed served when the same
is mailed, except that (a) all materials personally delivered will be deemed served when received by the party to whom addressed,
(b) overnight air express materials will be deemed served the next business day after delivery to the air express company, (c)
notices of change of address will be effective only from the date of receipt, and (d) royalty statements will be sent by regular
mail and will be deemed rendered when mailed. A courtesy copy of all notices to Publisher shall be sent as follows:

Bruce
H. Phillips, Esq.

Law Office
of Bruce H. Phillips, PLLC

102 River Oaks
Road

Brentwood,
Tennessee 37027

bruce@brucephillipslaw.com

 

A courtesy copy of all notices
to Writer shall be sent as follows:

Jordan S. Keller,
Esq.

Keller, Turner, Ruth, Andrews, Ghanem
& Heller, PLLC

700 12th
Avenue South, Suite 302

Nashville,
TN 37203

10.1-10

     

     

    

 

20. Post-term Co-ownership and Administration of Unpublished Compositions. Fifty
Percent (50%) of the copyright in Subject Compositions which have not been commercially exploited within five (5) years from the
date of the expiration of the Term shall revert to Writer (such Compositions are referred to below as “Copublished Compositions”).
Notwithstanding any provision to the contrary herein contained, the copyrights and all other rights in and to the Copublished
Compositions shall be owned Fifty Percent (50%) by Publisher
and Fifty Percent (50%) by Writer’s music publishing designee as Co-Publisher in equal shares (by way of clarification, only
that interest in a Copublished Composition which is owned by Publisher and which is derived
from Writer's authorship shall be subject to co-publishing pursuant hereto). All rights in the Copublished Compositions
shall be exclusively administered by Publisher for the life of copyright protection therein,
all in accordance with the following terms and conditions:

(a)
Publisher shall have the sole and exclusive right to administer and exploit the Copublished
Compositions as otherwise provided in this Agreement, including without limitation the right to
print, publish, sell, dramatize, use and license any and all uses of the Copublished Compositions,
to execute in its own name any and all licenses and agreements whatsoever affecting or respecting the Copublished Compositions,
including but not limited to, licenses for mechanical reproduction, public performance, dramatic uses, synchronization uses and
subpublication, and to assign or license such rights to others throughout the universe, subject to the terms and conditions hereof.
Without limiting the foregoing, Publisher shall be entitled to receive and collect and
shall receive and collect all income derived from the Copublished Compositions throughout
the universe, and Publisher shall pay to Co-Publisher fifty (50%) of the Net Receipts (as
defined below) derived from the Copublished Compositions. All payments to Co-Publisher
shall be made in accordance with the same accounting provisions of this Agreement as with respect to payments to Writer and shall
be subject to all of the same provisions concerning royalties payable to Writer, including without limitation, those concerning
recoupment, deductions, offsets and indemnifications; provided however, that in no event will this provision result in Publisher
recouping monies hereunder twice.

(b)
"Net Receipts" is defined as Net Sums less the following:

(i)
Songwriter royalties which shall be paid by Publisher to Writer pursuant to this Agreement
and royalties which shall be paid by Publisher to any other publishers or writers of the
Compositions;

(ii)
Subpublishing fees, registration fees, advertising and non-in-house promotion expenses directly related to the Copublished Compositions
(provided same are approved by Co-Publisher in advance), and the costs of transcribing for lead sheets, including actual Demo production
costs related to Copublished Compositions; and

(c)
To the extent permitted by law, small performing rights in the Copublished Compositions
for the United States and Canada shall be assigned to and licensed by the performing rights society to which all parties belong.
Said society shall be and is hereby authorized to collect and receive all monies earned from the public performance of the Copublished
Compositions in the United States and Canada and shall be and is hereby directed to pay directly
to Publisher the entire amount allocated by said society as the so-called "publisher's
share" of public performance fees for the Copublished Compositions for the United States
and Canada, and the “writer’s share” to Writer. 

(d)
Co-Publisher hereby ratifies and shall be subject to the same warranties, representations and covenants as set forth herein with
respect to Writer.

21. Default.
No failure by either party to perform any of its material obligations hereunder shall be deemed a breach hereof, unless
written notice of such failure has been given to the other party and such party does not cure such nonperformance within
thirty (30) days after receipt of such notice.

22. Entire
Agreement. This Agreement supersedes any and all prior negotiations, understandings and agreements between the
parties hereto with respect to the subject matter hereof. Each of the parties acknowledges and agrees that neither party has
made any representations or promises in connection with this Agreement nor the subject matter hereof not contained
herein.

10.1-11

     

     

    

 

23.
Modification, Waiver, Invalidity and Controlling Law. This Agreement may not be cancelled, altered, modified,
amended or waived, in whole or in part, in any way, except by an instrument in writing signed by the party sought to be bound.
The waiver by either party of any breach of this Agreement in any one or more instances shall in no way be construed as a waiver
of any subsequent breach of this Agreement (whether or not of a similar nature). If any part of this Agreement shall be held to
be void, invalid or unenforceable, it shall not affect the validity of the balance of this Agreement. This Agreement shall not
be binding upon Publisher until signed by Writer and countersigned by a duly authorized officer of Publisher. This Agreement, and
the validity, interpretation and legal effect of this Agreement shall be governed by and construed in accordance with the internal
laws of the State of Tennessee applicable to contracts entered into and performed entirely within the State of Tennessee. Only
the Tennessee courts (state and federal) will have jurisdiction over any controversies regarding this Agreement, and the transactions
contemplated by this Agreement; any action or other proceeding which involves such a controversy will be brought in those courts,
in Davidson County, Tennessee. The parties hereto hereby irrevocably submit to the jurisdiction of the Tennessee courts (state
and federal) in any such action or proceeding and irrevocably waive any right to contest the jurisdiction (in rem or in personam)
or power or decision of that court within or without the United States other than appropriate appellate courts having jurisdiction
over appeals from such court(s). The parties hereto also irrevocably waive any defense of inconvenient forum to the maintenance
of any such action or proceeding. Any process in any action or proceeding may, among other methods, be served upon either party
by delivering it or mailing it in accordance with the notice provisions of this Agreement. Any such delivery or mail service shall
be deemed to have the same force and effect as personal service within the State of Tennessee.

24. Assignment.
Publisher shall have the right to assign this Agreement or any of its rights hereunder to any parent, affiliate, or subsidiary
company of Publisher, or to any person, firm or corporation as part of a merger, sale or administration of its catalog, or acquiring
all or a substantial portion of its music publishing assets. Subject to Writer's being able to assign income receivable hereunder,
Writer shall not be able to assign this Agreement or any rights or obligations hereunder.

25. Definitions.
For purposes of this Agreement, the word "party" means and refers to any individual, corporation, partnership, limited
liability company, association or any other organized group of persons or legal successors or representatives of the foregoing.
Whenever the expression “the Term of this Agreement” or words of similar connotation are used herein, they shall be
deemed to mean and refer to the initial term of this Agreement and any and all renewals, extensions, substitutions or replacements
of this Agreement, whether expressly indicated or otherwise.

26. Headings. The
headings of paragraphs or other divisions hereof are inserted only for the purpose of convenient reference. Such headings shall
not be deemed to govern, limit, modify or in any other manner affect the scope, meaning or intent of the provisions of this Agreement
or any part thereof, nor shall they otherwise be given any special effect.

27. Legal Counsel.
WRITER STIPULATES AND ACKNOWLEDGES THAT WRITER HAS BEEN REPRESENTED BY AND HAS RELIED UPON LEGAL COUNSEL OF WRITER'S OWN CHOOSING
IN THE NEGOTIATION AND PREPARATION OF THIS AGREEMENT, OR HAD THE OPPORTUNITY TO DO SO AND DECLINED, THAT WRITER HAS READ THIS AGREEMENT,
HAS HAD ITS CONTENTS FULLY EXPLAINED BY SUCH COUNSEL, AND IS FULLY AWARE OF AND UNDERSTANDS ALL OF ITS TERMS AND THE LEGAL CONSEQUENCES
THEREOF.

10.1-12

     

     

    

 

IN WITNESS WHEREOF,
the parties hereto have executed this Agreement on the day and year first above written.

 

PUBLISHER: Latigo Shore Music,
Inc. 

By:
___/s/ Steve Dorff____________________

An
authorized signatory

 

WRITER:
Jess Boeschen p/k/a Jeston Cade

By:
___/s/ Jess Boeschen___________________

Jess Boeschen

Soc. Sec #: __________________________

 

10.1-13

     

     

    

Schedule
A

 

 

 

 

1. Eyes Wide Open

2. Till You're Gone

3. Kiss & Tell

4. Good Life

5. When The Smoke Clears

6. Win The War

7. Lets Get Lost

8. All I Had To Do

9. Brooklyn

10. Whiskey Kinda Night

 

10.1-14

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