2023 Carriage HR Handbook : simplebooklet.com

EMPLOYEE HANDBOOK 2BEING THE BEST 04.) Mission and Guiding Principles 05.) Being The BestSTANDARDS OF EXCELLENCE 06.) Code of Business Conduct and Ethics 11.) Insider Trading & Anti-HedgingATTENDANCE AND TIME OFF 19.) Attendance and Punctuality 21.) Bereavement 22.) Holidays and Floating Holidays - Field 25.) Holidays and Floating Holidays - HSC 27.) Jury and Witness Duty 28.) Leave of Absence (FMLA) 32.) Personal Leave 34.) Military Leave 36.) Sick Leave Benets 38.) Vacation BenetsEMPLOYMENT 40.) At-Will Employment 41.) Equal Employment Opportunity 42.) Disability Accommodation 44.) Employment Types 47.) Employment Records 49.) Job Postings 50.) Religious Accommodation 51.) Reference and Background Checks

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EMPLOYEE HANDBOOK 3BENEFITS 54.) Employee Discount Program 56.) Education Reimbursement 58.) Employee Referral BonusCOMPENSATION 60.) On-Call Duty 63.) Overtime Calculation 64.) Pay Calculation and Distribution(Payment Methods) 66.) Timekeeping 69.) Travel Time 71.) Reimbursement Policy - CA Only 74.) Employee Check Issuance 75.) Wage and Employment VericationPERFORMANCE AND WORK STANDARDS 77.) Dress Code 79.) Client Family Condentialityand Property 80.) Company-Issued Credit Cards 81.) Drug and Alcohol 84.) Employee Discipline 86.) Harassment 87.) Harassment and Discrimination - New York Addendum 91.) New York Harassment Complaint Form 93.) Inclement Weather 95.) Meal and Rest Breaks 97.) California Meal and Rest Breaks100.) Professional Standards Conduct102.) Smoking104.) Weapons in the Workplace106.) Work Schedules and HoursSAFETY AND HEALTH107.) Communicable Diseases109.) Hepatitis B Vaccination110.) Motor Vehicle Policy113.) Personal Protective Equipment114.) Workers CompensationSECURITY116.) Search, Inspection, and Investigation118.) Workplace Security and Anti Violence

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EMPLOYEE HANDBOOK 4Mission and Guiding Principles Carriage is committed to being the most professional, ethical, and highest quality funeral and cemetery service organization in our industry.To achieve our mission, we are committed to the following guiding principles:• Honesty, integrity, and quality in all that we do.• Hard work, pride of accomplishment, and shared success through employee ownership.• Belief in the power of people through individual initiative and teamwork.• Outstanding service and proﬁtability go hand-in-hand.• Growth of the company is driven by decentralization and partnership.We believe success in this mission depends on the collective efforts of a diverse workforce made up of individuals committed to excellence in service and performance. We are guided by our values and guiding principles at every level to promote a diverse, challenging, supportive, and entrepreneurial organization

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EMPLOYEE HANDBOOK 5Being The BestAt Carriage, we believe that the “Best” employees in the organization exhibit honesty, integrity, and a positive attitude toward their co-workers, their work responsibilities, and our client families.Our best employees carry out their job responsibilities by:• Positively interacting with management staff, fellow employees, vendors, and client families.• Possessing a strong work ethic.• Demonstrating competence at their position.• Having the ability to adapt to change.• Working as a team member to accomplish business goals and objectives.• Producing high quality work results.• Efﬁciently performing job responsibilities.Carriage will support, develop, and provide training in skills and technical expertise to an employee who consistently demonstrates the behavioral characteristics of a “Being The Best” employee.Carriage will not tolerate dishonesty or unethical behavior, persistently negative at-titudes, lack of teamwork and cooperation, poor quality of work, poor work ethic, or disruptive behavior which interferes with the dedicated work of other employees.

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EMPLOYEE HANDBOOK 6Code of Business Conduct and Ethics At Carriage Services, Inc. (hereinafter, “Carriage,” “us,” or “we”), our Mission is to be the most professional, ethical, and highest quality funeral and cemetery service organization in the death care industry. To achieve our Mission of Being The Best, we shall consider the Company’s High-Performance Culture Framework and abide by the following Five Guiding Principles:• Honesty, integrity, and quality in all that we do.• Hard work, pride of accomplishment, and shared success through employee ownership.• Belief in the power of people through individual initiative and teamwork.• • Therefore, our culture is one of entrepreneurship, high performance leadership, ownership, and partnership, both in principle and in practice at every level. In this regard, we adopted this Code of Business Conduct and Ethics (this “Code”) to document our commitment to ethical and legal behavior and to provide guidance and reporting procedures with respect to the same. This Code applies to all of our directors, ofﬁcers, and employees as well as to all of the directors, ofﬁcers, and employees of each of our subsidiaries (each such person a “Covered Party” and, collectively, the “Covered Parties”).COMPLIANCE WITH LAWS, RULES, AND REGULATIONS All Covered Parties must respect and obey all federal laws as well as the laws of each city and state in which we operate. Although not all Covered Parties are expected to know the details of these laws, it is important to know enough to determine when to seek advice from supervisors, managers, or other appropriate personnel.

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EMPLOYEE HANDBOOK 7CONFLICTS OF INTEREST Conﬂicts of interest are prohibited as a matter of Carriage policy, except under guidelines approved by our Board of Directors. A “conﬂict of interest” exists when a person’s private interest interferes in any way with the interests of Carriage. A conﬂict situation can arise when Covered Parties take actions or have interests that may make it difﬁcult to perform their Carriage work objectively and effectively. Conﬂicts of interest may also arise when Covered Parties, or members of their family, receive improper personal beneﬁts as a result of their position in Carriage. Loans to, or guarantees of obligations of, employees and their family members may create conﬂicts of interest. It almost always is a conﬂict of interest for a Carriage employee to work simultaneously for a competitor, customer, or supplier in any respect, or to take any actions to establish a competing business within our service area; and, the best policy is to avoid any direct or indirect business connection with any of our customers, competitors, or suppliers, except on our behalf. Conﬂicts of interest may not always be clear cut, so if you have a question or if you become aware of a conﬂict or potential conﬂict, you should consult with higher levels of management as described in the Reporting Any Illegal or Unethical Behavior section and/or in the Compliance Procedures section of this Code. INSIDER TRADINGCovered Parties who have access to conﬁdential information regarding Carriage are not permitted to use or share that information for stock trading purposes or for any other purpose except the conduct of our business. All nonpublic information about Carriage should be considered conﬁdential information. To use nonpublic information for personal ﬁnancial beneﬁt or to “tip” others who might make an investment decision on the basis of this information is not only unethical but also illegal. If you have any questions, please consult Carriage’s policy on Insider Trading.CORPORATE OPPORTUNITIESCovered Parties are prohibited from taking, for themselves personally, opportunities that are discovered through the use of corporate property, information, or position without the consent of our Board of Directors. No Covered Party may use corporate property, information, or position for improper personal gain. Each and every Covered Party owes a duty to Carriage to advance its legitimate interests when the opportunity to do so arises.

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EMPLOYEE HANDBOOK 8COMPETITION AND FAIR DEALINGCovered Parties should endeavor to respect the rights of, and deal fairly with, Carriage’s customers, suppliers, competitors, and employees. No Covered Party should take unfair advantage of anyone through manipulation, concealment, abuse of privileged information, misrepresentation of material facts, or any other intentional unfair dealing practice. CONFIDENTIALITYCovered Parties must maintain the conﬁdentiality of any and all conﬁdential or proprietary information entrusted to them by Carriage or its customers, except when disclosure is authorized properly or required by laws or regulations. Conﬁdential information includes all nonpublic information that might be of use to competitors or harmful to Carriage or its customers if disclosed. Conﬁdential information also includes any conﬁdential or proprietary information that our suppliers and customers entrust to us. The obligation to preserve conﬁdential information continues so long as the nature of the information remains conﬁdential, which may extend after your relationship with Carriage ends. PROTECTION AND PROPER USE OF COMPANY ASSETSAll Covered Parties should endeavor to protect Carriage’s assets and ensure their efﬁcient use. Theft, carelessness, and waste have a direct impact on Carriage’s proﬁtability. All Carriage assets should be used only for legitimate business purposes. Any suspected incident of fraud or theft should be reported immediately for investigation. Carriage charge accounts, credit cards, bank accounts, and other resources are strictly limited to Carriage use; personal charges on Carriage accounts are prohibited, though nominal personal charges that occur in connection with, and are incidental to, a legitimate business purpose may be permitted if they are promptly reported and reimbursed in accordance with Carriage policy. Further, Carriage equipment should not be used for non-Carriage business, though incidental personal use may be permitted. ACCURATE AND TIMELY DISCLOSURECovered Parties who participate in making disclosures in reports or documents that Carriage ﬁles with, or submits to, the Securities and Exchange Commission or in other public disclosures on behalf of Carriage should endeavor to make each such disclosure to be full, fair, accurate, timely, and understandable.

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EMPLOYEE HANDBOOK 9WAIVERS OF THE CODE OF BUSINESS CONDUCT AND ETHICSAny waiver of this Code for executive ofﬁcers or directors may be made only by the Board of Directors of Carriage and will be promptly disclosed as required by law or stock exchange regulations.REPORTING ANY ILLEGAL OR UNETHICAL BEHAVIORDirectors must report any known or suspected illegal or unethical behavior or violations of this Code to one or more members of the Audit Committee of the Board of Directors of Carriage. Senior management must report any known or suspected illegal or unethical behavior or violations of this Code to the acting leader of Human Resources or to an attorney in Carriage’s Legal Department. All other Covered Parties must report any known or suspected illegal or unethical behavior or violations of this Code to their supervisor, manager, or other appropriate personnel. These Covered Parties also may report a concern or suspected violation anonymously to our third-party reporting service identiﬁed under “Human Resources” on CarriageNet at hp://crrign/corpsrvics/humnrsourcs/hrsuppor/Pgs/du.spxWhen in doubt about a potential violation of this Code or of any law or regulation, Covered Parties should consult with their supervisor, manager, or other appropriate personnel about the best course of action in a particular situation as well as with the guidance set forth in the Compliance Procedures of this Code. In all cases, it is our policy to prohibit retaliation or retribution for reports of misconduct by others made in good faith by employees. “Good faith” does not mean that a Covered Party must be correct in their suspicion or interpretation of any given situation, but it does mean that the person provides truthful information based upon his or her understanding. Covered Parties are expected to cooperate in internal investigations of alleged misconduct.COMPLIANCE PROCEDURESWe must all work to ensure prompt and consistent action against violations of this Code. Since we cannot anticipate every situation that will arise, it is important that we have a way to approach a new question or problem. These are the steps to keep in mind: • Always ask ﬁrst, act later: If you are unsure of what to do in any situation, seek guidance before you act.

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EMPLOYEE HANDBOOK 10• Make sure you have all the facts. In order to reach the right solutions, we must be as fully informed as possible. • Ask yourself: What speciﬁcally am I being asked to do? Does it seem unethical or improper? This will enable you to focus on the speciﬁc question you are faced with and the alternatives you have.• Use your judgment and common sense. If something seems unethical or improper, it probably is.• Clarify your responsibility and role. In most situations, there is shared responsibility. Are your colleagues informed? It may help to get others involved and discuss the problem. • Discuss the problem with your supervisor. This is the basic guidance for all situations. In many cases, your supervisor will be more knowledgeable about the question and will appreciate being brought into the decision-making process. Remember that it is your supervisor’s responsibility to help solve problems. • Seek help from Carriage resources. In the rare case where it may not be appropriate to discuss an issue with your supervisor, or where you do not feel comfortable approaching your supervisor with your question, you may discuss it with Carriage’s Legal Department by calling (713) 332¬-8400. If you prefer to write, address your concerns to: Carriage Services, Inc., 3040 Post Oak Blvd., Suite 300, Houston, Texas 77056, Attention: Legal Department; or by email to: legal@carriageservices.com.• You may also report a concern, complaint, or suggestion our third-party reporting service identiﬁed under “Human Resource” on CarriageNet at http://carriagenet/corpservices/humanresources/hrsupport/Pages/default.aspx. Complaints to the third-party service may be submitted in conﬁdence and without fear of retaliation. If your situation requires that your identity be kept secret, your anonymity will be protected. POSTING The Company shall make this Code available on or through the Company’s website.

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EMPLOYEE HANDBOOK 11Insider Trading & Anti-Hedging Policy This Insider Trading & Anti-Hedging Policy (the “Policy”) sets forth the general standards for all members of the Board of Directors, ofﬁcers, consultants and employees of Carriage Services, Inc. and its subsidiaries (collectively, “Carriage”) with respect to engaging in transactions in Carriage securities and securities of other related companies or other publicly traded companies. In addition, this Policy imposes additional compliance procedures upon members of the Board of Directors, ofﬁcers, consultants and employees who have been notiﬁed by Carriage’s Insider Trading Review Team (as deﬁned below).The General Counsel (and in his absence, Carriage’s Legal Counsel) will administer the Policy in cooperation with the Company’s Chief Financial Ofﬁcer and Principal Financial Ofﬁcer. Any questions regarding this Policy should be directed to Carriage’s General Counsel, Legal Counsel, or anyone acting in these functions (collectively the “Insider Trading Review Team”).APPLICABILITYThis Policy is applicable to all members of the Board of Directors, ofﬁcers, consultants and employees of Carriage.GENERAL POLICYNo member of the Board of Directors, ofﬁcer, consultant or employee of Carriage who is aware of Material Non-public Information regarding Carriage may, directly or through a Related Person, (a) purchase or sell Carriage securities or exercise options for the purpose of holding or selling Carriage securities, (b) engage in any other action to take advantage of that information or (c) provide that information to others outside Carriage, including family and friends.In addition, this Policy is applicable to all Material Non-public Information relating to any other related company, or any other company, with publicly-traded securities obtained in the course of employment by or in association with Carriage.If you are aware of Material Non-public Information, you must forego a transaction in

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EMPLOYEE HANDBOOK 12Carriage securities or the securities of another company even though:• You planned the transaction before learning of the Material Non-public Information,• You may lose money or a potential proﬁt by not completing the transaction, and/or• The transaction may be necessary or seem justiﬁable for independent reasons (including a need to raise money for a personal ﬁnancial reason).Remember that anyone scrutinizing your transactions will be doing so after the fact, with the beneﬁt of hindsight. As a result, before engaging in any transaction, you should carefully consider how your transaction may be construed by enforcement authorities and others in hindsight.Additionally, you must safeguard Carriage information by taking the following measures:• Do not provide any Material Non-public Information to any third parties outside of Carriage unless you have been speciﬁcally authorized to do so.• Do not discuss any Material Non-public Information with the press or analysts unless you have been speciﬁcally authorized to do so.• Do not participate in any on-line forums or chat rooms in which Carriage is discussed.DEFINITIONSMaterial Information - Information should be regarded as material if there is a reasonable likelihood that it would be considered important to an investor in making an investment decision regarding the purchase or sale of a security or where the information is likely to have a signiﬁcant effect on the market price of the security. Either positive OR negative information may be material. Possible material information includes, but is not limited to:• Earnings information and quarterly results;• Guidance on earnings estimates;• Mergers, acquisitions, tender offers, joint ventures or changes in assets;• New material products, contracts with suppliers, or developments regarding customers or suppliers (e.g., the acquisition or loss of a contract);• Changes in auditor or auditor notiﬁcation that a company may no longer rely on an audit report;• Events regarding Carriage’s securities (e.g., defaults on senior securities, calls of securities for redemption, repurchase plans, stock splits or changes in dividends,

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EMPLOYEE HANDBOOK 13changes to rights of security holders, public or private sales of additional securities, or information related to any additional funding);• Bankruptcies or receiverships;• Material approvals or changes in regulations;• Signiﬁcant exposure due to actual or threatened litigation; or• Changes in senior management.It can sometimes be difﬁcult to know whether or not information would be considered material. When doubt exists, the information should be presumed to be material. If you are unsure whether information of which you are aware is material, you should consult with the Insider Trading Review Team. - Non-public information, whether or not material, is information that has not been made available to the general public. In order for information to be considered public, it must be widely disseminated in a manner making it generally available to the public, such as to the wire services through a press release or through a ﬁling with the Securities and Exchange Commission (the “SEC”), and a sufﬁcient period of time must have elapsed to allow the information to be fully disclosed to the general public.As a general rule, information will be considered fully disclosed to the general public if the information has been widely disseminated before trading begins on a trading day (every day that the New York Stock Exchange (the “NYSE”) is open for trading - generally, every day of the year other than Saturdays, Sundays, and federal holidays) for a period of one full trading day (the six and a half hour period from 9:30 am EST to 4 pm EST during which the NYSE is open for trading).For example, if an announcement is made at 3:30 pm central standard time on a Wednesday (i.e., after the close of Wednesday’s trading day), you may transact Carriage securities starting on Friday, which is the trading day that follows the elapse of one trading day (Thursday). See also Trading Windows page 7.By way of additional example, if an announcement is made before the commencement of trading on a Thursday, you may transact Carriage securities starting on Friday, which is the trading day that follows the elapse of one trading day (Thursday). See also Trading Windows page 7.Related Person - A Related Person includes your spouse, minor children, and anyone else living in your household, partnerships in which you are a general partner, trusts of which you are a trustee or beneﬁciary, and estates of which you are an executor or beneﬁciary.

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EMPLOYEE HANDBOOK 14of the Board of Directors - Unauthorized disclosure of Material Non-public Information could create serious problems for Carriage, whether or not the information was disclosed for the purpose of conducting improper transactions in Carriage securities. You should not discuss Material Non- public Information with anyone outside Carriage, including through the use of e-mail or the internet (including on-line bulletin boards and chat rooms), except as required in the performance of your regular job duties; provided, however, that nothing in this Policy shall prohibit you from reporting possible violations of federal law or regulation to any governmental agency or entity, including, but not limited to, the SEC. - While you are aware of Material Non-public Information, neither you nor any Related Person may transact in Carriage securities. This includes a prohibition on:• Placing a purchase or sell order or recommending that another person place a purchase or sell order in Carriage securities;• Stock option exercises; and• Elections to participate in a plan or allocate contributions to a plan containing Carriage stock funds, such as Carriage’s 401(k) Savings Plan and/or Employee Stock Purchase Plan, and changes in those contribution elections and intra-plan transfers into and out of plans containing Carriage stock funds.The only exceptions to the Policy are as follows:• Automatic payroll deductions, pursuant to a contribution election made when you were not aware of Material Non-public Information, to purchase Carriage common stock under Carriage’s Employee Stock Purchase Plan;• Award payouts by Carriage to you under any equity-based compensation plans;• The purchase of Carriage common stock in accordance with the Plan provisions of Carriage’s Employee Stock Purchase Plan;• Automatic reinvestment of dividends, pursuant to an election made when you were not aware of Material Non-public Information, under the Dividend Reinvestment Plan;• Any purchase or sale of Carriage securities made pursuant to an agreement or plan that complies with SEC Rule 10b5-1, provided that (a) you were not aware of Material Non-public Information at the time you entered into or adopted the agreement or plan, and (b) the agreement or plan has been approved in advance by the Insider Trading Review Team;• For non-Section 16 ﬁlers (as that term is deﬁned below), if any part of the last three months before the deadline to exercise an option occurs during a Black-Out

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EMPLOYEE HANDBOOK 15Period, then you may exercise an option for cash or through a net share settlement; provided, however, that you may not exercise an option if you are aware of or in possession of any Material Non-public Information that Carriage is not at such time aware of or in possession of. For the avoidance of doubt, this Policy does apply, however, to (i) any sale of stock as part of a broker-assisted cashless exercise of an option, or any other market sale for the purpose of generating the cash needed to pay the exercise price of an option, or (ii) the resale while in possession of Material Non-public Information of any shares received as the result of exercising an option;• The exercise of tax withholding rights pursuant to which you elect to have Carriage withhold shares to satisfy tax withholding requirements;• Any transaction speciﬁcally approved in writing in advance by the Insider Trading Review Team; and• Bona ﬁde gifts of Carriage securities having an aggregate market value of up to $50,000 during any Black-Out Period by members of the Board of Directors, ofﬁcers, consultants and employees of Carriage unless (a) the person making the gift (the donor) has reason to believe, or a reasonable person would have reason to believe, that the recipient (the done) intends to sell the securities while the donor is aware of Material Non-public Information or (B) the donor is subject to trading restrictions and prohibited from trading in Carriage securities during a certain period (e.g., the black-out periods discussed below) and the done plans to sell the securities during such period. “Market value” for purposes of this Policy will be computed based on the closing sales price of Carriage’s common stock on the NYSE as of the date of the gift.Whether a gift is truly bona ﬁde will depend on the circumstances surrounding each gift. The more unrelated the done is to the donor, the more likely the gift would be considered “bona ﬁde” and not a “transaction.” For example, gifts to charities, churches and service organizations would clearly not be “transactions.” On the other hand, gifts to dependent children or a family trust followed by a sale of the “gift” securities in close proximity to the time of the gift may imply some economic beneﬁt to the donor and, therefore, make the gift non-bona ﬁde.You and your Related Persons may NOT, AT ANY TIME, buy or sell warrants, puts or calls, options, forward transactions or other derivative securities or instruments on Carriage securities.Short-Term TradingShort-term trading of Carriage securities, or making or trying to make short swing proﬁts from the trading of Carriage securities, may be distracting to the person and may unduly focus the person on Carriage’s short-term stock market performance instead of Carriage’s long-term business objectives. For these reasons, if you or your

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EMPLOYEE HANDBOOK 16Related Persons purchase Carriage securities in the open market, you and your Related Persons may not sell any Carriage securities of the same class during the six months following the purchase (or vice versa). Carriage reserves the right to request brokerage account statements to assure compliance with this and other provisions of this Policy.Anti-HedgingNeither you nor your Related Persons may purchase or enter into any ﬁnancial instrument (such as prepaid variable forward contracts, equity swaps, collars or exchange funds) or otherwise engage in any transactions that hedge or offset any decrease in the market value or limit your ability to proﬁt from an increase in the market value of Carriage securities.Transacting in Securities of Other CompaniesNeither you nor any Related Person may place purchase or sell orders or communicate or recommend that another person place a purchase or sell order in the securities of another company if you become aware of Material Non-public Information about the other company in the course of your employment by or afﬁliation with Carriage until such information becomes available to the general public.TippingYou and your Related Persons are prohibited from disclosing (tipping) Material Non-public Information to any other person (including family members) where that information may be used by that person for his or her proﬁt by transacting in the securities of companies (including Carriage) to which the information relates. Also, you and your Related Persons may not make recommendations or express opinions concerning transactions in Carriage’s (or any other company’s) securities on the basis of Material Non-public Information.Black-Out PeriodsThe General Counsel, in consultation with the Chief Financial Ofﬁcer and Principal Financial Ofﬁcer, has the authority, when he or she deems it necessary or advisable because of developments known to Carriage and not yet disclosed to the public or for other reasons, to prohibit members of the Board of Directors, ofﬁcers, consultants and any employees from transacting in Carriage securities (a “Black-Out Period”). The Insider Trading Review Team, the Chief Financial Ofﬁcer or the Principal Financial Ofﬁcer will notify you by email of such a prohibition, and the Black-Out Period shall continue for as long as the email speciﬁes. In the event of a Black-Out Period, affected persons may not engage in any transaction involving the purchase or sale of Carriage securities during the Black-Out Period and may not disclose to others the fact of their transaction suspension. If a Black-Out Period is imposed on you and your Related

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EMPLOYEE HANDBOOK 17Persons may NOT execute transactions, even if the Trading Window (as described below) is then otherwise open for other employees.Trading Window and Black-Out PeriodsThe following restrictions and requirements apply to:• All members of the Board of Directors;• Executive Ofﬁcers, (those ofﬁcers who have been notiﬁed that they are subject to the provisions of Section 16 of the Securities Exchange Act of 1934—namely the reporting of beneﬁcial ownership on Forms 3, 4, and 5 and prohibition on short swing proﬁts (“Section 16 ﬁlers”)) and including Regional Partners; and• Employees in the Houston Support Ofﬁce, Directors of Support, and any employees of Carriage who have been separately notiﬁed that these provisions apply to them. Annually or when other signiﬁcant events occur, these employees will be reviewed, and individuals will be added or removed from coverage as necessary. You will be notiﬁed if there is any change in your status.In addition to any Black-Out Periods identiﬁed as referenced above, Carriage has created four Black-Out Periods for the individuals identiﬁed by this Section. These individuals, and any Related persons thereto, may not trade in Carriage securities beginning on the ﬁrst day of each quarter (January 1, April 1, July 1, October 1) and continuing through the close of business on the ﬁrst full trading day (the six and a half hour period from 9:30 am EST to 4 pm EST during which the NYSE is open for trading) following the later of (a) Carriage issuing an earnings release or (b) Carriage making a related SEC ﬁling announcing quarterly (10-Q) or annual (10-K) earnings. All other days, so long as not designated as Black-Out Periods by the Insider Trading Review Team, the Chief Financial Ofﬁcer or the Principal Financial Ofﬁcer, are open for trading (“Trading Window”). However, please note that Carriage reserves the right to close trading during the Trading Window as circumstances may warrant.may not transact in Carriage’s securities during a Black-Out Period unless the You should know, however, that even during the Trading Window, if you have knowledge of Material Non-public Information concerning Carriage, you may not transact in Carriage securities for one full trading day after such information has been

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EMPLOYEE HANDBOOK 18widely disseminated as set forth on Page 3 above and in the examples on Page 4 above. Transacting in Carriage securities during the Trading Window should not be considered a “safe harbor,” and you should use good judgment at all times.The following standards apply only to:• All members of the Board of Directors; and• Executive Ofﬁcers (Section 16 ﬁlers).Pre-Clearance of Transactions - Members of the Board of Directors and Executive Ofﬁcers may only transact in Carriage securities when the Trading Window is open (and assuming a Black- Out Period has not been imposed and they are not otherwise aware of Material Non-public Information), and then only with the prior approval of Carriage’s Insider Trading Review Team. Normally, the General Counsel, or in his absence the Insider Trading Review Team, will approve, as consistent with this Policy, any transaction that complies with this Policy and applicable securities law and that occurs during an open Trading Window. If at any time you are unsure as to whether you possess Material Non-public Information, you should pre-clear transactions you intend to make with the Insider Trading Review Team.- Members of the Board of Directors and Executive Ofﬁcers that are Section 16 ﬁlers must report each transaction in securities of Carriage to the Insider Trading Review Team, Carriage’s Controller, or Carriage’s Assistant Controller or their designee(s) immediately after the trade, as transactions must be reported to the SEC within two business days of the trade date.Violations of this PolicyCarriage expects strict compliance by all persons subject to this Policy, and appropriate judgment should be exercised in connection with any transactions in Carriage securities.The penalties for insider trading, in addition to the negative impact on Carriage’s reputation and business success, can be quite severe. Insiders or their “tippees” may be subject to civil penalties of up to three times the proﬁt gained or loss avoided, criminal ﬁnes, and jail time. Large penalties have been imposed on insiders who tipped information, even when the insider did not proﬁt ﬁnancially from the transactions.If you violate this Policy, you will also be subject to disciplinary action by Carriage, which may include ineligibility for future participation in Carriage’s equity-based compensation plans or termination of employment.

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EMPLOYEE HANDBOOK 19Attendance and Punctuality PolicyCarriage Services, Inc. (“Carriage”) expects all employees to report to work on a reliable and punctual basis. Absenteeism, including late arrivals to work, early departures from work, and extended lunch periods, burden fellow employees and can negatively impact the quality of service we provide to our client families. ABSENCE “Absence” is deﬁned as the failure of an employee to report for work when he or she is scheduled to work. The two types of absences are deﬁned below:Excused absence occurs when the employee provides sufﬁcient notice in advance of the absence and the request is approved by the employee’s manager. Unexcused absence occurs when the employee fails to report to his/her scheduled shift without prior approval. If it is necessary for an employee to be absent or late for work because of an illness or an emergency, the employee must notify his or her manager no later than the employee’s scheduled start time or as soon as they are able. Employees who are absent for three or more consecutive days because of illness or injury may be asked to provide proof of physician’s care and/or a ﬁtness for duty release prior to returning to work.TARDINESS AND EARLY DEPARTURES“Tardy” is deﬁned as the failure of an employee to arrive before/by the start time of their scheduled shift. Employees are expected to report to work and return from scheduled breaks on time. If employees cannot report to work as scheduled, they must notify their manager no later than their scheduled start time. This notiﬁcation does not excuse the tardiness but simply notiﬁes the manager. Employees who must leave work before the end of their scheduled shift must notify a manager immediately.

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EMPLOYEE HANDBOOK 21BereavementCarriage Services, Inc. (“Carriage”) understands the need for individuals to have an appropriate amount of time to make necessary arrangements and to grieve when faced with a personal loss. GENERAL PROVISIONS Carriage provides full-time employees paid time away from work for bereavement at the discretion of their Direct Manager. Full-time employees will be paid their base pay for normally scheduled workday(s), which fall within the bereavement period. The bereavement period will be determined on a case-by-case basis by the direct manager. In the event the time away from work is not covered under the bereavement policy, accrued vacation time, personal holiday time, or time off without pay may be used, with the appropriate manager approval. Bereavement pay is calculated based on the base pay rate at the time of absence and will not include any special forms of compensation, such as incentives, commissions, bonuses or overtime.

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EMPLOYEE HANDBOOK 22Holidays and Floating Holidays - Field Carriage Services, Inc. (“Carriage”) observes the following six (6) holidays each year by closing for business on the following day: When a Carriage Holiday falls on Sunday, the following Monday will be observed as the holiday. Likewise, if a Carriage Holiday falls on a Saturday, the preceding Friday generally will be observed as the holiday. However, due to the nature of Carriage’s business, the observance of Carriage Holidays may vary by Carriage business. New Year’s Day Memorial Day Independence Day Labor Day Thanksgiving Day Christmas Day ELIGIBILITY FOR HOLIDAYS AND FLOATING HOLIDAYS All regular fulltime employees, with the exception of those employed in Advance Planning positions, become eligible for Holidays and Floating Holidays immediately upon employment. Advance Planning positions are not eligible for Company paid Holidays or Floating Holidays.All parttime, regardless of position title or function, are not eligible for holiday or ﬂoating holiday pay. These employees may choose to take Carriage Holidays off from work without pay, unless they are scheduled to work on such a holiday.

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EMPLOYEE HANDBOOK 23HOLIDAY PAY When a Carriage Holiday falls on eligible employees’ regularly scheduled day to work and they do not work that day, they will receive holiday pay for eight (8) hours at their regular hourly or salary rate. Holiday pay does not count as time worked in the calculation of overtime compensation that otherwise may be due to a nonexempt employee. Employees on an approved leave of absence are not eligible for holiday pay for a Carriage Holiday that occurs during the leave. WORKING ON A CARRIAGE HOLIDAY Due to the nature of the business and our dedication to serving families, there may be times employees are required to work on Carriage Holidays. In the event that eligible employees are required to work on a Carriage Holiday, employees will be compensated as follows: • Eligible exempt employees will receive their regular daily rate of pay for working the holiday. • Eligible nonexempt employees will receive their regular rate of pay for time worked plus eight (8) hours of holiday pay. Subject to the operational needs of their work location, employees may be approved or required to take one of their regularly scheduled workdays within the same work week off from work. FLOATING HOLIDAYS In addition to the six (6) holidays above, eligible employees are provided four (4) Floating Holidays each calendar year. These Floating Holidays provide additional paid time off to cover absences due to religious observances, special occasions or personal business, etc. USE OF FLOATING HOLIDAYS Floating Holidays are requested at the employee’s discretion and must be approved by the employee’s Direct Manager or Supervisor. Floating Holidays/Personal Days must

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EMPLOYEE HANDBOOK 25Holidays and Floating Holidays - HSC Carriage Services, Inc. (“Carriage”) observes the following eight (8) holidays at the Houston Support Center each year by closing for business on the following days: When a Carriage Holiday falls on Sunday, the following Monday will be observed as the holiday. Likewise, if a Carriage Holiday falls on a Saturday, the preceding Friday generally will be observed as the holiday. Many of our eld businesses may be serving client families during the holidays and may require your support. New Year’s Day Memorial Day Independence Day Labor Day Thanksgiving Day Day after Thanksgiving Christmas Eve Christmas Day ELIGIBILITY FOR HOLIDAYS AND FLOATING HOLIDAYS All regular full‐time employees, become eligible for Holidays and Floating Holidays immediately upon employment. All part‐time regardless of position title or function, are not eligible for holiday or oating holiday pay. These employees may take Carriage Holidays off from work without pay unless they are scheduled to work on such a holiday. HOLIDAY PAY When a Carriage Holiday falls on eligible employees’ regularly scheduled day to work

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EMPLOYEE HANDBOOK 26and they do not work that day, they will receive holiday pay for eight (8) hours at their regular hourly or salary rate. Holiday pay does not count as time worked in the calculation of overtime compensation that otherwise may be due to a non‐exempt employee. Employees on an approved leave of absence are not eligible for holiday pay for a Carriage Holiday that occurs during the leave. WORKING ON A CARRIAGE HOLIDAY Due to the nature of the business and our dedication to serving families, there may be times employees are required to work on Carriage Holidays. In the event that eligible employees are required to work on a Carriage Holiday, employees will be compensated as follows: • Eligible exempt employees will receive their regular daily rate of pay for working the holiday. • Eligible non‐exempt employees will receive their regular rate of pay for time worked plus eight (8) hours of holiday pay. Subject to the operational needs of their work location, employees may be approved or required to take one of their regularly scheduled workdays within the same work week off from work. FLOATING HOLIDAYS In addition to the eight holidays above, eligible employees are provided two (2) Floating Holidays each calendar year. These Floating Holidays provide additional paid time off to cover absences due to religious observances, special occasions, or personal business, etc. USE OF FLOATING HOLIDAYS Floating Holidays are requested at the employee’s discretion and must be approved by the employee’s Direct Manager or Supervisor. Floating Holidays/Personal Days must be taken in minimum increments of four (4) hours and do not count as time worked in the calculation of overtime compensation that may be due to non‐exempt employees. Floating Holidays should be used each calendar year and will expire at the end of the year. Unused Floating Holidays do not carry forward from one calendar year to the next, nor will unused days be paid out at the end of the year or at termination unless otherwise required by applicable local law.

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EMPLOYEE HANDBOOK 27Jury and Witness DutyCarriage Services, Inc. (“Carriage”) fully supports employees’ civic duty to serve as a juror or testify as a witness.ELIGIBILITYFull-time and part-time employees are eligible to receive this benet. Employees will be eligible when missing scheduled shifts due to Jury or Witness duty.JURY DUTYEmployees will receive full pay while serving up to 40 hours per calendar year when fullling such service. Jury duty pay received from the court, including mileage and parking allowances, will not be deducted from an employee’s regular pay. Additional income-protected time away from the workplace for this purpose will be considered on a case-by-case basis.WITNESS DUTYEmployees under subpoena by the court to serve as a witness will receive full pay for up to a maximum of two (2) days. Verication of the court summons may be requested. Additional income-protected time away from the workplace for this purpose will be considered on a case-by-case basis. In the event employees are called as witnesses by Carriage, employees will be paid for the entire time they are away from work. RECORD KEEPINGEmployees must notify their Managing Partner or direct supervisor of the need for time off for Jury or Witness duty as soon as a notice, summons, or subpoena is received from the court. A copy of the notice, summons, or subpoena may be requested. Failure to properly report and/or record use of Jury/Witness Duty may subject the employee and/or manager to disciplinary action, up to and including termination of employment.

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EMPLOYEE HANDBOOK 28Leave of Absence: Family and Medical Leave (FMLA)Carriage Services, Inc. (“Carriage”) provides eligible employees leaves of absence to attend to family and medical needs, either for themselves or an immediate family member. Under the federal Family & Medical Leave Act (FMLA), Carriage will grant leaves in accordance with the requirements of the FMLA, as well as applicable state laws in effect at the time the leave is needed. Employees may be asked to apply for a leave of absence after three (3) consecutive absences. The effective date of the leave of absence will be retroactive to the rst absent day. Eligible employees can take up to 12 weeks of unpaid job protected leave within a 12-month period for qualifying reasons. ELIGIBILITY In order to be eligible for leave under the FMLA, an employee must meet the criteria below:• Twelve months of employment and at least 1,250 hours of service over the previous 12 months.• For rehires, employment periods with Carriage prior to a break in service will be counted in the service requirement.MAXIMUM DURATION• FMLA leave entitlement is limited to a total of 12 workweeks of leave during any 12-month period.◊ Employees may be eligible for an additional 12 weeks when caring for a covered military service member with a serious injury or illness, which is a total of 26 weeks of leave within any 12-month period. • Spouses both employed by Carriage are entitled to a combined total of 12 weeks leave within any 12- month period for the birth of a child, placement of a child for adoption or foster care, or to care for a parent who has a serious health condition.

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EMPLOYEE HANDBOOK 29◊ Spouses both employed by Carriage may be entitled to a combined total of 26 weeks leave within any 12-month period to care for a covered injured or ill military service member. INTERMITTENT LEAVEIntermittent leave is available when medically necessary. While on an intermittent leave or reduced work schedule, the employee may be temporarily transferred to a position which better accommodates the employee’s recurring leave and which has equivalent responsibilities, pay and benets.PAY DURING FMLA LEAVEEmployees do not earn wages while on FMLA leave. FMLA leave is unpaid, although the employee may elect to use accrued paid time off – vacation, oating holidays, and sick time. When applicable, employees may receive pay through Short Term Disability (STD). Details regarding Short Term Disability can be found on the benets guide which can be found on Smartben (https://carriageservices.smartben.net/). • An employee must rst use any accrued, unused sick and/or vacation time during the 14 day disability benet elimination period (if the employee is covered by the Short Term Disability plan), or until exhausted if the employee is not eligible for a disability benet before going on an unpaid leave, unless a state law prevents the policy from applying (e.g., California Pregnancy Disability Leave (PDL)).• An employee may elect to use additional sick/vacation time after the disability elimination period. Short Term Disability benets will be offset by the amount of sick pay that is paid after the 14 day elimination period.• If the duration of FMLA leave extends past the period of time that disability benets can be paid, the leave will be unpaid. If at that time the employee still has accrued, unused time available, it will be paid out until exhausted or until the return to work, whichever occurs rst. • Employees on leave will not accrue sick or vacation hours during their leave of absence. BENEFIT CONTINUATIONEmployees may maintain their existing Carriage-sponsored group benet insurance plans at the same level and under the same conditions. Benet continuation during paid or unpaid leave will continue automatically unless an election is made to discontinue participation.• Employees on leave receiving pay through short-term disability, sick or vacation pay,

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EMPLOYEE HANDBOOK 30will have their portion of any benets premiums deducted from their paychecks as usual. • Employees on leave who are not receiving any pay will be required to submit payment in order to continue benet coverage. ◊ Carriage Benets Team will mail an invoice to the employee for payment of their benet premium. Employees are expected to remit payment by the due date stated on the invoice. Failure to pay premiums by the date listed on the invoice, will result in termination of the employee’s participation in the Carriage plans. Note, employees will not be eligible to receive COBRA benets.• Company paid benets remain active during a leave of absence not to exceed 12 months. In the event an employee has not returned to work after twelve (12) continuous months, the employee’s benet plan coverage(s) will terminate and information will be provided to continue coverage in accordance with federal COBRA and applicable state law.REQUESTING FMLAAll employees requesting leave under the FMLA must contact Carriage’s third-party leave administrator, The Hartford (1-800-549-6514), and open a claim for leave. In the event an employee or family member is not able to open a claim for himself/ herself, Carriage’s Employee Benets Administrator will submit basic information to The Hartford for processing. It is the employee’s responsibility to notify their Direct Manager of their need to request leave as soon as possible. RETURN TO WORK FROM FMLAWhile on leave, employees are encouraged to communicate periodically with their Direct Manager and The Hartford on their status and intent to return to work. When returning from FMLA leave, employee should provide reasonable notice of intention to return (e.g., 2 business days) or as feasible. When returning from a FMLA leave for the employee’s own serious health condition, the employee must submit to The Hartford a health care provider’s verication of tness to return to work (with or without restrictions). If the employee is unable to return to full duty, the physician documentation must include a description of any limitations, restrictions, or accommodations needed by the employee upon return to work and how

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EMPLOYEE HANDBOOK 32Leave of Absence - Personal Leave It is the policy of Carriage Services, Inc. (“Carriage”) to provide eligible employees leaves of absence to attend to personal needs. EMPLOYEE ELIGIBILITYTo be eligible to apply for a leave of absence under this policy, employees must:1. Be regular full-time or regular part-time employees of Carriage, 2. Need or want to be absent from work for three (3) or more of their scheduled work-days, and3. Not accept other employment or continue to work in another job during the period of the requested personal leave.Temporary employees are not eligible for a leave of absence under this policy. Applica-ble federal and state laws will apply.PROCEDURE FOR REQUESTING PERSONAL LEAVEAn employee who needs or wants to apply for a leave under this policy must contact Carriage’s third-party leave administrator, The Hartford (1-800-549-6514), and open a claim for leave. A Benets/Human Resources representative will consult with the em-ployee’s manager to determine if the leave can be granted.It is the employee’s responsibility to notify their Direct Manager of their need to request leave as soon as possible. PAY DURING LEAVEEmployees do not earn wages during a personal leave; however, employees are required to use paid time off benets (sick leave, vacation and oating holidays) at the beginning of their leave. An employee will not be allowed to use accrued paid time off benets during a personal leave during the period the employee is receiving wage replacement

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EMPLOYEE HANDBOOK 33benets such as workers’ compensation, and short-term disability unless required by state law.EMPLOYEE BENEFITS DURING LEAVE While employees are on a personal leave, Carriage will allow them to continue their existing participation in Carriage-sponsored group benet insurance plans at the same level and under the same conditions as if they had continued to work, including their current benet plan premium contributions, for no more than 180 days provided they pay their portion of the benets premiums in a timely manner.FITNESS FOR DUTY CERTIFICATIONEmployees who take a leave under this policy due to their own serious health condition may be asked to provide a tness for duty (FFD) clearance prior to their return to work. Return to WorkCarriage will not guarantee reemployment or reinstatement to a particular job upon conclusion of a personal leave. Unless otherwise required by law, employment will automatically terminate after an employee on a personal leave has been absent from work or has failed to receive any earnings for 180 consecutive calendar days.

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EMPLOYEE HANDBOOK 34Leave of Absence - Military LeaveCarriage Services, Inc. (“Carriage”) complies with the requirements of the Uniformed Service Employment and Reemployment Rights Act (“USERRA”), as well as applicable state military law. An employee who needs time off from work to provide uniformed military service is eligible for a military leave in accordance with applicable law and this policy. At the conclusion of the leave and upon the satisfaction of certain conditions, employees generally have a right to return to the same position, or similar position, they held prior to the military leave with seniority, status, and pay as if they had not been on military leave.GENERAL LEAVE PROVISIONS • Leave for Active or Reserve Duty - Upon receipt of orders for active or reserve duty, employees should notify their direct manager as soon as possible. A copy of the ofcial military orders, if available, should be provided to the Human Resources De-partment (unless employees are unable to do so because of military necessity, or it is otherwise impossible or unreasonable). • If employees are unable to provide copies of orders for active or reserve duty prior to the leave, they must provide a copy of such orders within a reasonable amount of time once issued. • Leave for Training and Other Related Obligations - Employees will also be granted time off for military training and other related obligations, such as an examination to determine tness to perform service. Employees should advise their direct manager of their training schedule and/or other related obligations as far in advance as possi-ble and provide documentary proof of the need for leave, if available.• Periods of Military Leave - Military leave will be granted for up to a total aggregate amount of ve (5) years during employment with Carriage (excluding certain services required by, among other things, a declared war or national emergency).PROCEDURE FOR REQUESTING PERSONAL LEAVEAn employee who needs or wants to apply for a leave under this policy must contact Carriage’s third-party leave administrator, The Hartford (1-800-549-6514), and open a

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EMPLOYEE HANDBOOK 35claim for leave. A Benets/Human Resources representative will consult with the em-ployee’s manager to determine if the leave can be granted.It is the employee’s responsibility to notify their direct manager of their need to request leave as soon as possible. PAY DURING LEAVEWhile on military leave, full time employees will not receive their regular base wages. Employees on temporary or extended military leave may, at their option, use any or all accrued paid vacation or personal leave during their absence. BENEFITS DURING LEAVEWhile employees are on military leave, they are entitled to continue their existing partic-ipation (including dependents) in all Carriage-sponsored group benet insurance plans provided they continue to pay their share of premiums due for insurance coverage.RETURN FROM MILITARY LEAVEAn employee returning from a military leave who has not yet taken a total aggregate amount of ve (5) years of leave from employment with Carriage will be promptly rein-stated to employment provided business circumstances have not changed where the employee’s position has been eliminated. Employees should notify their direct man-ager and The Hartford of his or her desire to return to work as soon as possible after the end of their military leave.It is Carriage’s policy that no employee or prospective employee will be subjected to any form of discrimination on the basis of the person’s membership in or obligation to per-form service for any of the Uniformed Services of the United States.

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EMPLOYEE HANDBOOK 36Sick Leave BenetsCarriage Services, Inc.’s (“Carriage”) Sick Leave policy has been established to provide eligible employees the opportunity to take time off from work without loss of pay. Sick leave benets may be used in the event of the employee’s own illness, to care for an immediate family member due to illness and/or doctor’s appointment. Immediate family members include the employee’s spouse, dependent children, and parents.ELIGIBILITY All regular full-time employees are eligible to accrue sick leave benets immediately upon hire, with the exception of individuals employed in sales-related positions, unless required by state law.For purposes of this policy, all sales-related positions include, but are not limited to the following: Trainees, Counselors, Senior Counselors, Unit Leaders, Sales Managers, and like positions. All part-time, regardless of position title or function, are not eligible to earn paid sick leave benets unless required by law. These employees, and those in sales-related positions, may take unpaid time off from work due to illness. Even though such time is unpaid, employees are required to follow the call-in provisions outlined within this policy. SICK LEAVE BENEFIT ACCRUALSick Leave hours will accrue each pay period based on the Sick Leave Accrual Schedule below:

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EMPLOYEE HANDBOOK 37Employees who are eligible to accrue sick leave benets under this policy may accrue and carryover sick leave up to a maximum accrual of 240 hours, unless otherwise outlined by state or local law. All eligible employees’ use of sick leave must be timely and accurately reported and recorded. It is each employee’s responsibility, as well as the manager’s responsibility, to ensure that time used is recorded appropriately.Failure to properly report and/or record use of sick leave may subject the employee and/or manager to disciplinary action, up to and including termination of employment.An employee’s manager or supervisor may request a doctor’s note after three (3) days of continuous absence due to illness or injury, and the Human Resources Department should be contacted to determine if the employee should be placed on a leave of absence.In cases of extended illness, an employee may qualify for benets under Carriage’s Short-Term Disability Program. TERMINATED EMPLOYEESEligible employees who terminate employment with Carriage will forfeit all accrued, unused sick time. This policy is subject to applicable federal, state, and local law.

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EMPLOYEE HANDBOOK 38Vacation BenetsCarriage Services, Inc.’s (“Carriage”) vacation policy has been established to provide eligible employees the opportunity to take time off from work without loss of pay. Employees are encouraged to use their paid vacation time on an annual basis.ELIGIBILITYAll regular full-time employees are eligible to accrue vacation benets immediately upon hire with the exception of individuals employed in Advance Planning positions. All part-time employees, regardless of position title or function, are not eligible to earn paid vacation days. These employees may take unpaid time off from work by arrangement with their direct manager.Employees whose employment status changes from part-time to full-time will accrue vacation based on total length of service. Employees whose employment status changes from full-time to part-time will immediately cease to accrue vacation. Any vacation already accrued will be paid at the time of the status change.VACATION BENEFIT ACCRUALS Vacation hours will accrue each pay period based on the Vacation Accrual Schedule below:Some exempt individuals at the discretion of the Managing Partner or Houston Support Center Manager may be eligible for accelerated vacation benets based on their specic situation and accrue based on the schedule below:

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EMPLOYEE HANDBOOK 39 MAXIMUM VACATION ACCRUALSEligible employees may accrue and carryover vacation under this policy up to 1.5 times their annual accrual. For example:When eligible employees’ accrued vacation balance reaches the maximum balance, vacation ceases to accrue. Hours will begin to accrue again after the pay period which employees use some of their vacation balance, therefore bringing the balance below the maximum amount allowed.All eligible employees’ use of vacation must be timely and accurately reported and recorded. It is each employee’s responsibility, as well as the manager’s responsibility, to ensure that vacation time used is recorded appropriately. Vacation should be requested in advance and must be approved by the employee’s direct manager.Failure to properly report and/or record use of vacation time may subject the employee and/or manager to disciplinary action, up to and including termination of employment.TERMINATED EMPLOYEESEligible employees who terminate employment with Carriage will be paid for all accrued, unused vacation time. All unused vacation time will be paid out at the employees’ regular rate of pay at time of termination.

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EMPLOYEE HANDBOOK 40At-Will EmploymentCarriage Services, Inc. (“Carriage”), unless otherwise documented by an employment agreement or specied by state law, employs its employees in an at-will relationship. This means that employment may be terminated for any reason, at any time, by the employee or Carriage with or without cause or notice, in accordance with state and federal law. No manual, handbook, or any oral or written statement limits the right to terminate employment at will. Only an Ofcer of the Company has the authority to enter into an employment agreement, express or implied, with an employee providing for employment other than at will.The terms and conditions of employment with Carriage may be modied at the sole discretion of Carriage, with or without cause or notice at any time. No implied contract concerning any employment-related decision, term, or condition of employment can be established by any other statement, conduct, policy, or practice.

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EMPLOYEE HANDBOOK 42Disability AccommodationIn accordance with applicable equal employment opportunity laws, Carriage Services, Inc. (“Carriage”) prohibits discrimination against qualied individuals who have a disability, who have a record of a disability, who are regarded as having a disability, or who are associated with any other person with a disability. In addition, Carriage will provide reasonable accommodations for qualied individuals with a disability to enable them to apply for employment with Carriage or to perform the essential functions of the position in question, unless doing so would create an undue hardship on Carriage operations. This policy is intended to comply with the Americans with Disabilities Act (“ADA”) and any other applicable Federal, State, or local laws. REASONABLE ACCOMMODATION PROCEDURESAny otherwise qualied individual who requires an accommodation in order to apply for a position or to perform the essential functions of the position in question will be provided with reasonable accommodation(s) as required by applicable law. Any applicant or employee who needs an accommodation should contact the Human Resources Department to communicate what limitation(s) the individual is experiencing and all accommodations being sought. Local management who learns of a request for accommodation, or otherwise learns of or suspects that an individual is experiencing a physical or mental impairment that is interfering with his or her ability to meet job expectations, should contact the Human Resources Department so the appropriate communications between the individual and Carriage can take place. Carriage will keep condential any medical information that it obtains in connection with an individual’s request for a reasonable accommodation.REPORTING CONCERNSAny applicant or employee who believes that there has been a violation of this policy or any applicable law relating to accommodating a person with a disability should immediately contact the Human Resources Department.

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EMPLOYEE HANDBOOK 44Employment TypesIn order to determine an employee’s classication and eligibility for various benets and to ensure compliance with the federal Fair Labor Standards Act (FLSA), Carriage Services, Inc. (“Carriage”) has established employment classications. These classications do not guarantee employment for any specied period of time. The right to terminate the employment relationship at will at any time is retained by both the employee and Carriage.FLSA CLASSIFICATIONSAs a result of the positions they are assigned, employees are classied in accordance with the federal Fair Labor Standards Act (FLSA) as follows:• Exempt – Exempt employees include all employees who are classied by Carriage as exempt from the overtime provisions of the FLSA or any applicable state laws. • Non-Exempt – Non-exempt employees include all employees who are not exempt from the overtime provisions of the FLSA or any other applicable state laws and, as such, are eligible for overtime pay and other provisions in accordance with federal and/or state wage and hour laws.COMPANY JOB CLASSIFICATIONS• Full-Time Regular Employees – Employees not in a temporary status and are regularly scheduled to work the company’s full-time schedule (30 or more hours per week). Generally, they are eligible for the full benets package, subject to the terms, conditions and limitations of each benet program.• Part-time Regular Employees – Employees not in a temporary status and are regularly scheduled to work less than the full-time schedule (Less than 30 hours per week). Regular part-time employees are eligible for some of the benets offered by the company, subject to the terms, conditions and limitations of each benet program. Human Resources should be contacted if an employee is classied as a part-time regular employee and regularly and consistently works 30 hours or more per week. In such cases, the work schedule will need to be modied to less than 30

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EMPLOYEE HANDBOOK 45hours per week, or with appropriate approvals, the individual would be reclassied to full-time regular employee status. • Commission Sales – Employees who are regularly and customarily engaged in the sale of Carriage products and services away from Carriage business locations are considered to be exempt from the overtime and minimum wage provisions of the FLSA under the Outside Sales exemption. Therefore, individuals classied in outside sales positions, such as Advance Planning Counselor, are compensated on a commission only basis.• Inside (Retail) Sales – Employees who are regularly and customarily engaged in the sale of Carriage products and services at any Carriage location such as Family Service Counselors will have a regular rate of pay for all hours worked each pay period. Such amount will be designated as a draw against commissions. • Interns – Carriage may provide internships to individuals enrolled in a recognized professional mortuary program. An intern works for a specied period with an emphasis on “on-the-job training” rather than merely employment. An internship integrates career-related experiences into an education by participating in planned, supervised work. Internships approved and authorized by Carriage are typically unpaid. Therefore, individuals classied as interns are not eligible for any Carriage-sponsored benets.• Public Relations Employees – In order for an employee to be classied as a public relations employee, a valid and executed agreement must exist between Carriage and the individual outlining the employee’s duties. Such agreements may only be issued by Carriage’s Legal Department and must be approved by an Ofcer of the Company or the Legal Department and the employee.The Human Resources Department is responsible for categorizing the employment classication of all positions within Carriage. Positions will be given an FLSA classication based solely upon the job content, duties, and responsibilities. CHANGES IN EMPLOYMENT STATUSIt may be necessary to change the status of an employee due to a change in work schedule or other related factors. A change in employee status impacts an employee’s eligibility to participate in certain employer-sponsored benet programs.Part-time Regular Employee to Full-time Regular Employee Status – Employees who transition from part-time regular to full-time regular employee status will be eligible to participate in health insurance benets on the rst day of the month following the effective date of the status change. Eligible employees who wish to participate in group health insurance benets must enroll within 31 days of their status change date.Full-time Regular Employee to Part-time Regular Employee Status – Employees

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EMPLOYEE HANDBOOK 46who transition from full-time regular to part-time regular employee status will have the option to continue their medical, dental, and vision coverage until the end of the calendar year (December 31). Company-provided Basic Life, Short-term and Long-term disability will end on the last day of the month following the change in status. OTHER CONSIDERATIONSManagers are responsible for ensuring their employees are appropriately classied as dened by this policy. In the event an employee’s status has changed, the manager must notify the Human Resources Department in order to ensure all records have been updated to accurately reect the change. EMPLOYMENT OF MINORSEmployment of minors will be based on state and federal child labor laws to protect the safety, health and wellbeing of children.REPORTING CONCERNSAny employees who have a question or concern regarding their employment classication or believe they may not be classied correctly should contact the Human Resources Department. Every report will be fully investigated and corrective action taken where appropriate, up to and including termination for any employee(s) who violates this policy. In addition, Carriage will not allow any form of retaliation against individuals who report alleged violations of this policy or who cooperate in Carriage’s investigation of such reports. Retaliation is unacceptable, and any form of retaliation in violation of this or any other policy will result in disciplinary action, up to and including termination.

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EMPLOYEE HANDBOOK 47Employment RecordsIt is the policy of Carriage Services, Inc. (“Carriage”) to maintain certain personnel records for applicants, employees, and past employees in order to document employment-related decisions, evaluate and assess performance, and comply with government record-keeping and reporting requirements.GENERAL CONSIDERATIONSIn accordance with Carriage’s decentralized operating model, employment records are retained at the employee’s primary location. Additionally, Houston Support Center employee les are retained in the Human Resources Department. The general administrative provisions regarding employment les are as follows:• Personnel information that is necessary for conducting business or is required to be kept by federal, state, or local law should be retained.• Personnel records are considered the property of Carriage; therefore, access is strictly controlled and will only be provided to authorized personnel or as may be required by federal, state or local law.• Records are retained for the duration of employment. Upon separation of employment, a local business employee’s records are forwarded to the Human Resources Department and are retained in accordance with federal and state law.• Records pertaining to applicants not hired by Carriage are retained in accordance with federal and state law.EMPLOYEE PRIVACYTo ensure the condentiality of personnel records, Carriage will only release information in accordance with local, state, and federal laws, and the release of such information is typically approved or rejected by Carriage’s Legal Department.Disclosure of employee information to individuals or organizations outside of Carriage without the employee’s written authorization is prohibited except in the following situations:

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EMPLOYEE HANDBOOK 49Job PostingsCarriage Services, Inc. (“Carriage”) believes that the continued growth and development of employees is essential in achieving our mission of “Being the Best.” The goal of the job posting policy is to ensure, wherever possible, that internal qualied candidates are made aware of - and have an opportunity to apply for - open positions within the organization.GENERAL CONSIDERATIONSIt is Carriage’s desire to encourage internal promotional opportunities whenever possible. However, there are business conditions that support the decision to bypass posting or post the position while simultaneously recruiting from the outside, including but not limited to:• The organization’s highly decentralized business model.• Organizational restructuring. • Position requirements that mandate detailed knowledge, awareness, and/or involvement in a local community or area served by an individual business.• Position requirements that include skills, education, and/or experience that are not known to match any existing employee.• Critical operational needs.• Where candidates within the same location, department, or region who are qualied and/or already trained for the position currently exist.The decision to ll the position without posting requires the joint approval of the Managing Partner and the Regional Partner, or Department Manager and Ofcer of the Company.JOB POSTINGSBusiness conditions permitting, all regular part-time and full-time positions will typically be posted on the Carriage website. Employees interested in applying for consideration must complete the on-line application and submit their resume for further review by the Hiring Manager.

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EMPLOYEE HANDBOOK 50Religious Accommodation GENERAL CONSIDERATIONSEmployees whose [sincerely held] religious beliefs or practices conict with their job, work schedule, Carriage’s policy on dress and appearance, or with any other aspect of employment, and who seek a religious accommodation, can submit a written request for the accommodation to their Direct Manager or Supervisor that includes the type of religious conict that exists and the employee’s suggested accommodation(s).The employee’s direct manager or supervisor, in consultation with Carriage’s Human Resources and/or Legal Departments, will determine whether a work conict exists due to a sincerely held religious belief or practice and whether an accommodation is avail-able which is reasonable, and which would not create an undue hardship.

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EMPLOYEE HANDBOOK 51Reference and Background ChecksIn support of our mission to “Be the Best” within our industry, Carriage Services, Inc. (“Carriage”) conducts pre-employment reference and background checks as a standard part of its selection and hiring process. GENERAL CONSIDERATIONSUpon extension of a conditional offer of employment, Carriage requires all applicants for employment to [provide their authorizing consent and] supply all relevant information required for the purpose of completing reference and background checks. Any reference and background screening may include some or all of the following:• National criminal database search (Seven (7) years)• County criminal record• Felony and misdemeanor records (Seven (7) years, date of birth, & social security verication)• Social security trace and verication• National sex offender registry• Motor vehicle recordEXISTING EMPLOYEESCarriage may also conduct reference and background checks for existing employees, consistent with the needs of an employee’s position.Carriage also reserves the right to revoke an offer of employment [or terminate employment] if the Human Resources Department determines that the candidate’s [or employee’s] background check, as applicable, does not meet standards.Employees are required to report to their Direct Manager if they are convicted or plead guilty to any misdemeanor or felony, including but not limited to crimes of violence, theft, dishonesty, or possession, use, or sale of controlled substances within 30 days of conviction.

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EMPLOYEE HANDBOOK 52Candidates for positions that may require driving or operating a motor vehicle in any capacity will be subject to a motor vehicle record check. Additionally, a valid drivers license will be required at the start of employment and throughout. Employees are required to report if at anytime during employment their drivers license is suspended or revoked.For further information regarding Motor Vehicle Safety please refer to the Motor Vehicle Safety policy. EMPLOYMENT, ACADEMIC, AND PERSONAL REFERENCESIn evaluating each candidate’s suitability for employment, Carriage may also contact prior employers, schools, and educational institutions listed by the candidate, as well as personal and professional acquaintances identied as references.RELEASE FORMS Candidates must authorize the release of information by former employers, educational institutions, and/or other organizations as part of the reference and background checking process. A refusal to authorize a release of this information will eliminate the candidate from further consideration for employment.PENALTIES FOR FRAUDULENT INFORMATION Any candidate who falsies information to Carriage at any time in the selection process is immediately eliminated from further consideration for employment. In the event that falsication of information is discovered after the individual has begun employment, the employee will be subject to disciplinary action, up to and including termination of employment.MISMATCH SOCIAL SECURITY NUMBERIn the event that Carriage receives a mismatch notice from any government agency concerning an employee’s Social Security Number or otherwise is advised that there may be an error in a Social Security Number for an employee, the Human Resources Department will conduct a secondary background check utilizing the correct Social Security Number. The results of the secondary background check will be considered for employment, or for existing employees, continued employment.

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EMPLOYEE HANDBOOK 54Employee Funeral and Cemetery Service Program Carriage believes that it is important to assist our employees when a loss occurs in their immediate family or when they wish to consider pre-planning funeral or cemetery services.ELIGIBILITY All active employees of Carriage who have at least 500 hours of continuous and current service with the organization are eligible for employee discounts. The program does not apply to contractors, consultants, or temporary employees.Use of the funeral home and related services provided by a Carriage-owned location will be provided to eligible employees at no cost. Employees will be wholly responsible for the cost of any merchandise as well as any and all disbursements/cash advances paid to non-Carriage vendors. Cost is dened as Carriage’s actual cost for the merchandise (excluding rebates) prior to any retail markup that may normally be applied.At-Need Cemetery Property, Merchandise, and Services Property, merchandise, and services at a Carriage-owned location will be provided to eligible employees at cost. Cost is dened as Carriage’s actual cost for the merchandise, services, and/or property (excluding rebates) being provided prior to any retail mark-up that may normally be applied. No employee discounts are applicable for pre-need funeral merchandise and/or services.Eligible employees may purchase cemetery property at a 30% discount off of the current price list for property. In the event of a current promotional offering which

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EMPLOYEE HANDBOOK 55allows for discounts in excess of 30%, the employee will receive the promotional discount, and no additional reduction or discount will be applied. Property is dened as interment, mausoleum crypts, lawn crypts, and niche rights. Pre-need property purchased by eligible employees may be done so interest-free for a contract term period not to exceed 60 months. While a pre-need property purchase may be made interest-free, the employee may be subject to imputed interest at the federal AFR interest rate. Any such imputed interest will be included in the employee’s taxable income. All other standard terms applyEmployee discounts are subject to taxes as dened by IRS Guidelines.COMMISSIONSCommissions, overrides, bonuses, and/or contest awards cannot be earned on employee purchases made through the Employee Discount Program. However, contract revenue from an employee sale does count as “board volume.”

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EMPLOYEE HANDBOOK 56Education Reimbursement Carriage Services, Inc. (“Carriage”) will provide nancial assistance for employees to pur-sue formal education in elds that enhance employees’ development and are of mutual benet to employees and the company.ELIGIBILITYAll current (full and part time) employees are eligible for benets under this program. The types of education covered under this policy must:• Have a reasonable relationship to the business and/or• Be a required part of a degree program that supports career growth and develop-ment in the company.Prior to registering for any classes, employees must rst secure the approval of their Managing Partner/Senior Leadership by completing the Educational Reimbursement Application. COVERED EXPENSESCost of text books, equipment, fees, and tuition at an accredited institution are covered by this program. Travel, parking, lodging, cost of tools and supplies (other than text-books) and extraneous fees are not reimbursable expenses. REIMBURSEMENTEmployees will be reimbursed for successful completion of a course with a grade of C or better or a passing grade in a pass/fail course upon providing appropriate supporting documentation. The maximum annual reimbursement will be the nontaxable educa-tion wage exception set by the IRS ($5,250 annually as of the writing of this policy).EMPLOYEE REPAYMENT UPON SEPARATIONEmployees who leave the company for any reason will be responsible for reimbursing

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EMPLOYEE HANDBOOK 58Employee Referral BonusCarriage Services, Inc. (“Carriage”) recognizes that hiring and retaining quality employees is essential to meeting our goal of “Being the Best” within our industry and the communities we serve. As a result, Carriage provides incentive awards to current employees who refer quality candidates that are subsequently hired for designated open positions within the Company. ELIGIBILITY All regular employees who have been employed with Carriage for a minimum of six (6) months, are eligible for benets under this program and will receive a referral bonus if the following criteria are met:• The employee submits Candidate Referral Form for an applicable open position to the Human Resources Department prior to the Candidate being contacted and/or interviewed by Carriage. • The employee’s name must be entered by the candidate in the referral section of his/her employment application.• Both the employee who makes the referral and the employee who is hired are employees of Carriage at the time payout is disbursed. • The employee refers an external candidate who is successfully employed with Carriage for six (6) continuous months, with the exception of individuals referred for sales counselor positions. • The employee being referred is a rst-time employee of Carriage. • All Carriage employees, with the exception of Executive Ofcers, Houston Support Center leadership, Regional leadership, and employees directly involved in the hiring decision for a particular position/location are eligible for referral awards under this program. PROCEDURE AND REQUIREMENTS An employee may refer as many candidates as desired. Only one referral award can be given per candidate. If a candidate is referred by more than one employee, the rst

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EMPLOYEE HANDBOOK 59referral received by the Human Resources Department will be the one rewarded if the candidate is hired. BONUSCarriage’s employee Referral Bonus Program provides the following benets (minus applicable payroll taxes):* Sales counselors must be in a funded position to receive the bonus.OTHER CONSIDERATIONSAn employee who is on leave or temporary disability at the time the bonus payment is due will have any bonus payment deferred until the employee returns from the leave of absence. Submitting referrals does not guarantee a job. Carriage reserves the right to recruit others and to make nal hiring decisions.Based on business and hiring needs, Carriage reserves the right to amend, interpret, terminate, or suspend this program at any time.

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EMPLOYEE HANDBOOK 60On-Call DutyCarriage has designated the following types of on-call duties for non-exempt employees to be available on stand- by after hours or on holidays and weekend to respond to a call or return to work if necessary:Telephonic On-Call DutyTelephonic On-Call Duty is to be utilized where employees are only required to answer and facilitate calls for general information and removal/transfer services and is generally not personally required to either return to the location or to an alternative site in order to perform actual work or removal/transfer duties.Since there is no tness for duty requirement and employees are free to conduct his or her personal business, telephonic on-call does not qualify to receive a stipend.Employees who are on Telephonic On-Call Duty will be compensated based upon the type of call handled as follows:• General Information Calls – Employee receiving and handling general telephone calls and/or inquiries which are not considered to be that of a rst call related to a new death will be given credit for a minimum of fteen (15) minutes worked per call, or the actual length of the call, whichever is greater.• First Call - Employees handling telephone calls related to a new death whereby the individual is responsible for making appropriate removal/transfer arrangements, speaking with family members and/or treatment facilities, etc., will be given credit for a minimum of one (1) hour worked, regardless of the number of calls made or received which pertain to the same decedent, or the actual total length of all of the calls combined pertaining to the same decedent, whichever is greater.In the event employees must report to work at the location or at an alternative site while on Telephonic On-Call Duty, they will be given credit for a minimum of two (2) hours per

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EMPLOYEE HANDBOOK 61instance or the actual time worked, whichever is greater. Employees required to report to work at an alternative location other than their normally assigned work location will also have their travel time included when calculating their hours worked.Removal/Transfer On-Call Duty is to be utilized where employees are required to re-spond to calls and perform actual removal/transfer and, in some instances, embalming duties during the designated on-call period.These employees may be unable to use the entire time spent on Removal/Transfer On-Call Duty effectively for their own purpose, remain “t for duty” (e.g., within state legal limits for operating a vehicle) and be able to respond to calls in a prompt and timely fashion.Employee on Removal/Transfer On-Call Duty will be compensated as follows:• Removal/Transfer On-Call Duty Stipend - A at rate equivalent to $25.00 for each Removal/Transfer On- Call Duty shift assigned. Removal/Transfer On-Call Duty shifts are designated as any assigned transfer duty period, up to a maximum of fteen (15) consecutive hours.• Removal/Transfer Pay - In addition to the at rate removal/transfer duty stipend, employees who make a removal/transfer while on Removal/Transfer On-Call Duty will be compensated for all time spent performing actual removal/transfer duties or a minimum of two (2) work hours for each “complete” removal/transfer event, whichev-er is greater.• Removal/Transfer & Embalm Pay - In addition to the at rate removal/transfer duty stipend, employees who make a removal/transfer and perform embalming duties while on Removal/Transfer On-Call Duty will be compensated for all time spent performing actual removal/transfer and embalming duties or a minimum of four (4) work hours for each “complete” removal/transfer and embalming event, whichever is greater.• Embalm Only Pay – In addition to the at rate removal/transfer duty stipend, em-ployees who perform embalming only duties while on Removal/Transfer On-Call Duty will be compensated for all time spent performing such embalming duties or a minimum of two (2) work hours for each “complete” embalming event, whichever is greater.A “complete” removal/transfer and/or embalming event involves employees departing from an off-duty location, performing the required job duties, and returning to their off-duty location prior to receiving any additional removal/transfer request(s).

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EMPLOYEE HANDBOOK 62In the event employees receive additional removal/transfer and/or embalming re-quest(s) while in the process of performing actual removal/transfer and/or embalming duties, they will have all such time spent performing the additional removal/transfer(s) and/or embalming compensated as hours worked.The additional removal/transfer(s) and/or embalming will not be subject to the guaran-teed two (2) or four (4) hour minimum unless employees receive the removal/transfer and/or embalming request after having already returned to their off-duty location.Employees who are granted right of refusal for performing removal/transfer and/or embalming duties during off hours periods are not considered to be “on-call” and not eligible for the Removal/Transfer Duty Stipend portion of on-call duty pay.OTHER CONSIDERATIONSEmployees required to report to work at a location other than their normally assigned work location will also be paid for their travel time as hours worked.Any on-call duty stipend compensation received will be included in the calculation of the employee’s overtime rate of pay for the applicable period. Employees will record all on-call work-related activities on the on-call logs provided for this purpose.Completed logs (on-call and missed punch logs) need to be submitted to the locally designated timekeeper at the conclusion of each on-call period to ensure accurate and timely payment of wages.CALIFORNIA ONLYEmployees working On-Call Duty in California will paid in accordance with California law. For those employees working On-Call Duty that is “controlled” pursuant to Califor-nia law will be required to log their hours worked. These hours are subject to overtime and other California pay rules. If you have questions about whether your On-Call Duty is subject to hourly pay, please reach out to your Human Resources Business Partner.

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EMPLOYEE HANDBOOK 63Overtime CalculationWhen required by business demands or the needs of the client families we serve, Car-riage Services, Inc. (“Carriage”) may require any employee to work overtime. OVERTIME Overtime generally refers to actual hours worked over 40 in a workweek. The workweek begins at 12:00 a.m. on Sunday and ends at 11:59 p.m. the following Saturday. Non-ex-empt employees who work more than 40 hours during a workweek receive overtime pay at one and one-half times their regular hourly rate for each hour worked in excess of 40 hours.Paid time off is not considered time worked for purposed of calculating overtime.California Non-Exempt Employees AddendumOvertime eligible California employees receive overtime pay at one and one-half times their regular hourly rate for hours worked in excess of eight (8) in a workday or in excess of 40 hours in a workweek and overtime pay at two times their regular rate for hours worked in excess of twelve (12) in a workday.If employees work seven (7) consecutive days in one workweek, they will receive over-time pay for the seventh consecutive day only at one and one-half times their regular rate for each hour worked up to eight (8) hours and two times their regular rate for each hour worked in excess of eight (8).

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EMPLOYEE HANDBOOK 64Pay Calculation and Distribution (Payment Methods)Carriage Services, Inc. (“Carriage”) understands that employees’ paychecks are their most important work-related assets and wants to ensure that they are processed accurately and efciently and delivered in a manner that is safe, reliable, and ecologically responsible. DIRECT DEPOSITCarriage’s preferred e-Pay option, direct deposit, allows employees to have their pay deposited directly into their personal bank account. In the event that employees close their bank account, it is imperative that they promptly notify the Payroll Department in order to stop all future transactions. Carriage is not responsible for any penalties or fees associated with returned or “oated” checks where employees have failed to notify Carriage of a closed account status or where employees have failed to notify Carriage of any substantive changes to their nancial institution. PAY CARDEmployees who do not have a bank account or wish to participate in direct deposit must use Carriage’s default method of payment, the Pay Card. The Pay Card will be mailed to their home address on le, and all net pay due to the employee will be loaded onto it each pay period. CORRECTIONSCarriage takes reasonable steps to ensure that employees are paid the correct amount and are paid on the scheduled payday. In the event of an error in the amount of pay, the employee should promptly notify the Payroll Department in order to ensure the error is corrected. Under no circumstances may a location check be issued to an employee for payment of or correction to wages.

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EMPLOYEE HANDBOOK 65REPLACEMENTSIn the unlikely event a paper paycheck is lost or stolen, a stop payment order will be issued, and once the stop payment order has been accepted and conrmed by the bank, a replacement check will be issued. If an employee’s Pay Card is lost or stolen, the employee should immediately contact the card issuer via the number provided at the time of issuance.FINAL PAYFinal pay will be prepared and delivered in accordance with applicable state law.In the event of an employee’s death, checks will be made payable to “Estate of [Employee Name].”UNCLAIMED OR UNCASHED CHECKSIn the event a paper check is issued to an employee who has left employment with Carriage, the Payroll Department will mail the check to the employee’s last known forwarding address. In accordance with applicable law, unclaimed or uncashed payroll checks will be forwarded to the state.

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EMPLOYEE HANDBOOK 66TimekeepingCarriage Services, Inc. (“Carriage”) accurately compensates employees in compliance with all applicable state and federal laws to ensure that they are paid properly for all time worked and that no improper deductions are made. EMPLOYEE RESPONSIBILITYEmployees must accurately record all time worked. Additionally, employees are encouraged to review their electronic earnings statement (e-Stub) promptly to identify and report any and all errors. Non-Exempt Employees - Employees classied as non-exempt must maintain a record of the total hours worked each day. All hours worked and benet time utilized must be accurately recorded in Carriage’s automated time and attendance system. All non-exempt employees are required to:• Clock in immediately upon arrival for work, • Clock in and out for their meal breaks, • Clock in and out for their rest period (California Only), and• Clock out at the conclusion of their work shift.Entries into the automated timekeeping system must accurately reect all regular and overtime hours worked, as well as any absences, late arrivals, early departures, meal breaks, after-hours work, and/or rest periods (rest periods apply to California Only). Any time worked away from the employee’s primary work location or outside of the primary work schedule must be recorded on the Missed Punch Log or the On-Call Log and submitted to the local timekeeper for entry into the automated timekeeping system.Inside Sales Employees - Employees who have been classied as inside sales are subject to the same time reporting requirements as non-exempt employees. Outside Sales Employees – Employees who have been classied as outside sales are engaged in sales-related activities away from the location; therefore, they are not

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EMPLOYEE HANDBOOK 67required to make entries in the automated timekeeping system.Exempt Employees - Employees classied as exempt will receive a salary which is intended to compensate them for all hours worked. This salary will be established at the time of hire or when becoming classied as an exempt employee. As a predetermined amount, the salary will not be subject to deductions for variations in the quantity or quality of the work performed. Under federal and state law, salaries of exempt employees are subject to certain deductions. For example, absent contrary state law requirements, a salary of an exempt employee may be reduced for the following reasons (where authorized by federal and/or state law):• Full day absences for personal reasons,• Full day absences for sickness or disability,• Full day disciplinary suspensions for infractions of Carriage’s written policies and procedures, • Family and Medical Leave absences (either full or partial day absences), • To offset amounts received as payment for military pay, and• The rst or last week of employment in the event employee works less than a full week.• In any workweek in which an employee performed any work, the salary of an exempt employee may not be reduced for any of the following reasons:• Partial day absences for personal reasons, sickness, or disability,• Absence on the day before or after a paid holiday, or because the individual business location is closed on a scheduled work day, • Absences for jury duty, attendance as a witness, or military leave in any week in which the employee performed any work, and • Any other deductions prohibited by state or federal law. Exempt employees are required to record any benet time utilized during the period such as vacation, sick, or personal holidays in the automated timekeeping system. MANAGEMENT RESPONSIBILITYManagers, supervisors, and local timekeepers are responsible for training all new hires on how to record time on the automated timekeeping system and complete any necessary forms such as Missed Punch Logs and On-Call Logs. Likewise, managers and supervisors must review Missed Punch Logs and On-Call

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EMPLOYEE HANDBOOK 68Logs and the system records of time worked by their employees for completeness and accuracy prior to each payroll processing deadline. TIMEKEEPING INQUIRIES OR ADJUSTMENTSAny adjustments needed within the current pay period need to be submitted prior to established payroll processing deadlines. Errors or adjustments needed after the current pay period has ended must be reported directly to the payroll department for correction.OTHER CONSIDERATIONSEmployees are strictly prohibited from performing any “off the clock” work. “Off the clock” work means work performed but not reported in the automated timekeeping system or on a Missed Punch Log or On-Call Log. Any employee who fails to report or inaccurately reports any hours worked will be subject to disciplinary action, up to and including termination.DisciplineEmployees found to have engaged in, approved of, or otherwise known and failed to report any prohibited activities or violations of this policy are subject to immediate discipline, up to and including termination of employment. Such activities include, but are not limited to: • Over- or under-reporting working hours,• Falsifying signatures or other information on a time sheet/summary or log, • Tampering with Carriage’s automated time and attendance system,• Failing to fully report all time worked,• Consistently and/or willfully refusing to utilize the time and attendance system,• Failing to consistently and responsibly perform assigned timekeeper duties,• Granting or utilizing compensatory time in lieu of overtime, or• Instructing an employee to make a false report.

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EMPLOYEE HANDBOOK 69Travel TimeCarriage Services, Inc. (“Carriage”) recognizes that on occasion, it may be necessary to request non-exempt employees travel as part of their job duties. Non-exempt employees who travel on Carriage business may only do so at the specic instruction and approval of their manager. Non-exempt employees who are required to travel will receive compensation in accordance with the provisions outlined within this policy. TRAVEL FROM HOME TO WORK Time spent going from work to home and from home to work is not compensable time, irrespective of whether the employee reports to a xed location or to a different job site.There are a few exceptions when home to work is considered compensable time:• When an employee who is already home from work is called out on an emergency call and must travel a substantial distance.• When an employee must travel to another city and travels outside the regular workday to get there and back (although time spent traveling from home to a railroad station or airport would not be compensable).The use of a Carriage vehicle by an employee for commuting and other incidental travel is not part of the employee’s principal activities and is not compensable time if the vehicle is used within the normal commuting area of the employer’s business or establishment.TRAVEL AS PART OF JOBTime spent traveling as part of an employee’s daily work activity is compensable time, including travel from one job site to another or travel from a designated meeting place to a job site. TRAVEL AWAY FROM HOMETravel by an employee, including those in a non-exempt classication, who will be away from home overnight is compensable time only during those periods coinciding with

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EMPLOYEE HANDBOOK 70the employee’s regular working hours (e.g., 8 a.m. – 5 p.m.). Such time is counted as hours worked even if it occurs on a non-working day (e.g., Saturday or Sunday between 8 a.m. and 5 p.m.). Travel outside regular working hours as a passenger in a plane, train, boat, bus, or automobile is not hours worked. WORK PERFORMED WHILE TRAVELINGWork performed by an employee while traveling is compensable time and will be paid. Employees will be responsible for accurately documenting time worked and forwarding it to their manager for approval. Employees will not be eligible for pay for time not actually worked.DISCIPLINEFailure by an employee or management to observe the provisions of this policy will subject them to immediate discipline, up to and including termination of employment.REPORTING CONCERNSAny employees who have a question or concern regarding compensation for travel time or possible violations of this policy may contact their Managing Partner, Department Manager, Regional Partner, or Human Resources. Employees may also report concerns to Ethical Advocate by calling 1 (855) 370-6087 or going on-line to www.Carriage.EthicalAdvocate.com. Informational posters are located throughout Carriage locations, typically on bulletin boards in break or work areas or other designated information areas.Every report will be fully investigated and corrective action taken where appropriate, up to and including termination for any employee(s) who violates this policy. In addition, Carriage will not allow any form of retaliation against individuals who report alleged violations of this policy or who cooperate in Carriage’s investigation of such reports. Retaliation is unacceptable, and any form of retaliation in violation of this or any other policy will result in disciplinary action, up to and including termination.

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EMPLOYEE HANDBOOK 71Reimbursement Policy (CA Only) In accordance with California Labor Code Section 2802, Carriage Services, Inc. (“Carriage”) will reimburse an employee for “all necessary expenditures or losses incurred by the employee in direct consequence of the discharge of his or her duties.” Thus, California employees have an explicit right to be reimbursed for business-related expenses, such as equipment, materials, training, business travel and uniforms.MILEAGE REIMBURSEMENT: EMPLOYEE’S VEHICLEWhen an employee is required to use his or her personal vehicle for work-related activities, Carriage will reimburse the employee for expenses related to the use of the vehicle.The employee should keep a record of the number of miles driven to perform job duties then submit this information to their manager. To determine the amount of reimbursement due, the work-required miles driven will be multiplied by the federal IRS rate.CELL PHONES Employees will be reimbursed if required to use their personal cell phones for work. Based on job responsibilities, eligible employees may qualify for an allowance of $25.00 per month to cover the business use of personal cell phones. The Managing Partner is responsible for determining the eligibility of an employee to receive a cell phone allowance.The expense must prove a business connection. This requirement is met by showing that the use of a cell phone is ordinary and necessary, and that it takes place as part of the employee performing their job duties. ELIGIBILITY This policy applies to all California employees. PROCEDURES

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EMPLOYEE HANDBOOK 72Employees who incur work-related expenses are required to submit those expenses for reimbursement pursuant to company practices, including the following:• Employees must complete an expense report, which can be found on Carriagenet, and submit the form along with appropriate supporting documentation such as original receipts, for all work-related expenses to their direct manager.• Employees are expected to submit their reimbursement requests for approval as soon as possible but no later than 30 days after the expense is incurred.RESPONSIBILITIESManagers • Employers must maintain all records in connection with employees’ requests for expense reimbursements for a period of three years. • Determine whether an employee is eligible for a cell phone allowance based on guidelines.• Determine level of services required and corresponding monthly allowance amount.• Complete request form.• Inform employee of approved allowance.• Provide non-taxable monthly allowance to employee.• Employees• Once the rst billing statement is received, submit a copy of the cell phone billing statement to manager to be attached to the approved request form. • If the allowance is to be applied to an already-owned personal cell phone account, the most recent billing statement for the existing service plan must be attached to the expense report form.Reimbursement for Incidental Usage (for those not receiving an allowance)With departmental approval, employees without a cell phone allowance in place may be reimbursed for necessary, incidental business calls made with their personal cell phone, given appropriate documentation is provided in a timely manner. Employees should also have pre-established authorization from their manager for the occasional use of their personal cellular telephone for business purposes and subsequent reimbursement. REPORTING CONCERNSAny employees who have a question or concern regarding reimbursements or possible

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EMPLOYEE HANDBOOK 74Employee Check IssuanceThis policy details how Carriage Services, Inc. (“Carriage”) expects the issuance of checks from businesses to employees to be handled. Employee Check Issuance StandardsEach business should only have one or two employees authorized to issue checks, e.g., the Managing Partner and Ofce Manager. It is appropriate to issue checks to employees in the following instances:• To reimburse employees for a reimbursable expense, such as telephone allowance, supplies purchased for the business, or business related mileage; or• When the employee operates a non-cash advance third-party business or registered sole proprietorship (e.g., lawn care).However, it is not appropriate to issue a check directly to an employee for any of the following purposes:• To cover relocation expenses;• For spot bonuses;• In lieu of a gift card; or• For employment-related or cash advance work performed (e.g., either in the ordinary course of their duties or for a cash advance item such as serving as a clergy at a service).If you have any questions about this Employee Check Issuance Policy or about when it is appropriate for a business to issue a check to an employee, please contact Sunnie Winter at (713)-332-8463 or sunnie.winter@carriageservices.com.

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EMPLOYEE HANDBOOK 75Wage and Employment VericationCarriage Services, Inc. (“Carriage”) is committed to providing accurate information to authorized third parties regarding current or former employees. EMPLOYMENT VERIFICATIONRequests for information, whether formal or informal, that pertain to current or former employees should be directed to the Human Resources Department. Under no circumstances should employees disclose employment information, either on or off the record. The Human Resources Department (or its authorized agent) will typically verify the following:• Name• Dates of employment• Current position or last position heldFollowing a written request which has been authorized by employees with their signature, the following additional information may be provided: • Verication of current or last compensationDisclosure of information without the written authorization of the employee to a specic organization will be limited to the following:• Where Carriage has been compelled by authorized law enforcement authorities • In response to a lawfully issued summons, subpoena, or judicial orderNo other information, verbal or written, will be disclosed.

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EMPLOYEE HANDBOOK 77Dress CodeCarriage Services, Inc. (“Carriage”) maintains a professional and respectful environment at all times. It is Carriage’s policy that each employee’s dress, grooming, and personal hygiene be appropriate to the work situation. As a professional organization serving the needs of client families in the death care industry, Carriage employees are expected to reect professional dignity through appropriate and conservative attire in accordance with the solemnity of funerals, interments, and other related traditions or ceremonies.PROFESSIONAL APPEARANCEIn order to promote a professional image that conveys a sense of condence and competence, all employees are expected to adhere to the following professional appearance requirements at all times:• Clothing should be clean, wrinkle-free, and should not appear worn. Clothing t must be appropriate and not restrict movement or create safety concerns.• Shoes appropriate for the type of work performed and/or as specied by safety and/or uniform guidelines must be worn at all times. Shoes should be clean and not worn out in appearance.• Hair should be clean and neatly styled.LOCATION EMPLOYEESThe nature of the business dictates conservative, solemn dress attire for location staff. Realizing that this policy does not cover all instances, sound judgment and discretion should be used when choosing and wearing appropriate attire in each individual business location. Certain staff may be required to meet special dress, grooming and hygiene standards, such as wearing uniforms or protective clothing, depending on the nature of their job. Uniforms and protective clothing may be required for certain positions and will be provided to employees by the location.

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EMPLOYEE HANDBOOK 78Managing Partners may modify the dress code for their specic location in order to ensure it accurately reects locally acceptable and appropriate attire for their specic client base within their individual market. It is the responsibility of Managing Partners to supervise and enforce the dress code policy within their work location. GENERAL GUIDELINESWhen visiting a eld location, Corporate support employees must adhere to the dress code for that individual business. Although the Corporate ofce adheres to a business casual dress code employees may occasionally be required to dress in business attire, based on specic business needs. Employees whose dress is not in compliance with our policy may be asked to leave the workplace and return properly dressed or groomed. Under such circumstances, the employee will not be compensated for the time away from work. Failure to comply with Carriage’s expectations regarding dress code may result in disciplinary action, up to and including termination of employment.

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EMPLOYEE HANDBOOK 79Client Family Condentialityand PropertyCondential information gathered by Carriage will only be used to provide requested services and complete necessary documentation. Such condential information will only be disclosed where Carriage is acting as an agent on behalf of the family and the release of such information is necessary in order to provide goods or services or through a valid court order. This includes information concerning:• Cause of death;• Expenditures for funeral-and-burial-related goods and services;• Financial funding sources and arrangements;• Addresses, phone numbers, email addresses, and nancial information; and/or• Other information of a personal and condential nature.Under no circumstances is an employee authorized to release any personal phone numbers, addresses, or contact information, even if such information would be available through a public directory. Likewise, under no circumstances is an employee authorized to utilize such information for any purpose other than in connection with providing services to families. If there is a doubt about whether client family information should be disclosed, the Managing Partner, Regional Partner, or Carriage’s Legal Counsel should be consulted before the information is disclosed. Any request for disclosure of such information, whether through a legal document or otherwise, should be immediately forwarded to the Managing Partner, Regional Partner, and/or the Legal Department.CLIENT PROPERTYCarriage recognizes that as a provider of services in the death care industry, employees may frequently become custodians of personal effects of the deceased or of members of the client family.As a result, the employee is responsible for ensuring that all items are properly accounted for and stored in accordance with local operating procedures as established by the Managing Partner, Director of Support, and/or Regional Partner. Disposition of these items should be made at the earliest opportunity and in accordance with the

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EMPLOYEE HANDBOOK 80Company Issued Credit CardsCarriage Services, Inc. (“Carriage”) recognizes the need for authorized employees to make day-to-day business purchases. As a result, Carriage will provide certain employees company-issued credit cards, as it is deemed necessary.DEFINITIONFor purposes of this policy, “credit cards” refer to any and all cards issued to an employee and/or individual business location on behalf of Carriage, including but not limited to:• American Express Business Card• Purchasing cards (“P-cards”)• Fuel cardsFor further guidance on use of company issued credit cards, please reference the Purchasing Card and the American Express Card Agreements.FUEL CARDFuel cards are issued to each company owned vehicle and for fuel purposes only. A four-digit pin may be issued to individual employees at the request of the Managing Partner and are required in order to use the vehicle fuel card(s). Employees are responsible for all transactions recorded using their specic pin number and may not allow anyone else to utilize their pin number. Use of a Carriage-issued fuel card is a privilege which Carriage may withdraw in the event of abuse. The fuel card must be used for business purposes only in conjunction with the employee’s job duties and the specic policies and/or guidelines established for appropriate use of the particular card issued. DISCIPLINEIn addition to nancial responsibility and liability for wage deductions, any purchases an employee makes with a Carriage credit card in violation of this policy or any other related policy and/or guideline may result in disciplinary action, up to and including termination of employment.

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EMPLOYEE HANDBOOK 81Drug and Alcohol Carriage Services, Inc. (“Carriage”) is committed to maintaining a substance abuse-free working environment for all of its employees through a no-tolerance policy with respect to the use and/or abuse of illegal drugs, prescription drugs, and alcohol in the workplace. Carriage will administer this policy, including all drug and alcohol testing provisions, in a manner that complies with federal, state, and local laws, including the Americans with Disabilities Act (“ADA”).PROHIBITED ACTIVITYDrugs – Carriage strictly prohibits the use, sale, attempted sale, conveyance, distribution, manufacture, purchase, attempted purchase, possession, cultivation, and/or transfer of illegal drugs and intoxicants at any time, and in any amount or any manner, regardless of occasion, whether on or off its premises. Subject to applicable federal, state, or local law, a veried positive drug test will be considered proof that an individual has violated this policy. A veried positive drug test may subject the employee to disciplinary action, up to and including termination of employment.Alcohol – Carriage prohibits the use, possession, or being under the inuence of alcohol while working, while operating a Carriage-owned or rented vehicle, while operating a personal vehicle while conducting business on behalf of Carriage, or when on Carriage or client family premises. Moreover, the use or abuse of alcohol off the job that impairs performance on the job will subject the employee to disciplinary action, up to and including termination of employment. On occasion, Carriage or its afliates may sponsor a social or business-related event at which alcohol is served. This policy does not prohibit the consumption of alcohol at such an event. However, if an employee chooses to consume alcohol at such an event, he or she must do so responsibly and conduct themselves in an appropriate professional manner at all times. Carriage is not responsible for arranging the transportation of any employee from such an event. Employees must notify their supervisor if they are taking any drug or substance that

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EMPLOYEE HANDBOOK 82would render them unable to complete their assigned work in a safe and proper manner.DISCIPLINECarriage reserves the right to discipline, including terminate the employment of employees in violation of this no-tolerance policy. Carriage has sole discretion to determine whether any situation warrants testing, and this policy does not prevent Carriage from taking action without testing. Carriage may test for the presence of illegal drugs and/or alcohol in the following circumstances: Reasonable Suspicion – Subject to applicable federal, state, and local law, an employee may be asked to submit to a drug and/or alcohol test if the employer’s supervisor or other Carriage management has a reasonable suspicion, based on objective factors such as the employer’s appearance, speech, behavior, or other conduct and facts, that the employee possesses or is under the inuence of unlawful drugs or alcohol, or both. Employees who exhibit signs of impairment during work and/or while on Carriage property will not be allowed to work until Carriage receives the test results and determines no further action is necessary.Post-Accident – Any employee who is involved in an accident/incident while on duty may be asked to submit to a post-accident drug and/or alcohol test as part of Carriage’s review of the incident. Consent for Drug & Alcohol Testing – Subject to applicable federal, state, and local law, no sample will be collected, or test conducted on any sample without the written consent of the person being tested. Carriage will pay the costs of all drug and/or alcohol tests it requires of employees and applicants. Refusing a Test – An individual’s refusal to submit to drug and/or alcohol testing will be considered insubordination and may result in termination of the employment. Attempts to tamper with, substitute, adulterate, dilute, or otherwise falsify a test sample are considered refusals to submit to a test, as is a failure to appear at the testing location promptly after being asked to submit to a test. Condentiality – Carriage will follow all applicable laws, rules, and regulations regarding the condentiality of drug and alcohol testing and the test results.Consequences of a Positive TestSubject to applicable federal, state, or local law, an employee with a positive alcohol or drug test is considered to be in violation of Carriage policy and, consistent with

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EMPLOYEE HANDBOOK 83Carriage’s commitment to no tolerance, is subject to discipline, including termination from employment with Carriage. EMPLOYEE ASSISTANCECarriage encourages employees to seek assistance with illegal drug, prescription medication abuse, and/or alcohol concerns and can assist and support employees in locating services and rehabilitation programs that emphasize education, prevention, counseling, and treatment. Carriage offers full-time employees’ access to an Employee Assistance Program (EAP). The EAP can provide condential assistance to employees, including an evaluation for substance abuse dependence and referrals to education and/or rehabilitative services, when appropriate. Carriage encourages employees who may have concerns about substance abuse to seek assistance, either through the EAP or directly with their Managing Partner, Regional Partner, Department Manager, or the Human Resources Department.

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EMPLOYEE HANDBOOK 84Employee Discipline Carriage Services, Inc.’s (“Carriage”) employee discipline policy is designed to provide a corrective action process to improve and prevent a recurrence of undesirable employee behavior and performance. Any conduct that interferes with or adversely affects Carriage’s business is grounds for disciplinary action, ranging from a verbal warning to immediate termination. GENERAL CONSIDERATIONSIt is the responsibility of every employee to be aware of and abide by existing Carriage policies and procedures. It is also the responsibility of employees to perform their job duties to the best of their ability and to the standards outlined in their job description or as otherwise established by their Direct Manager or Supervisor. Further, Carriage encourages employees to take advantage of all available training opportunities and request additional instruction when needed. Managers are responsible for determining corrective measures in an objective manner and in accordance with applicable law.EMPLOYEE CONDUCTCarriage supports the use of disciplinary action to address poor work performance or misconduct, thereby encouraging employees to become more productive and to adapt their behavior to meet Carriage standards and expectations. Carriage does not maintain a strict progressive disciplinary policy. Rather, a number of factors are considered in each individual situation to determine what disciplinary action, if any, may be required. Factors that may be considered include:• Seriousness of conduct;• Employment record;• Employee’s ability to correct conduct;• Action taken with respect to similar conduct by other employees;• Effect on client families; and

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EMPLOYEE HANDBOOK 85• Surrounding circumstances.When issues arise, the direct manager or supervisor, at times in conjunction with the Human Resources Department, will determine the facts, including the presence or absence of the above non-exhaustive list of factors. In the event an investigation is required, all employees are expected to cooperate fully. DISCIPLINARY ACTIONWhen there is reason to believe that an employee has violated Carriage policy, disciplinary action will be determined based upon the totality of the circumstances and the related conduct. Each situation will be dealt with on an individual basis. Carriage has established general guidelines to govern the conduct and performance of its employees; however, no list of rules and/or related policies can include all instances of conduct that may result in disciplinary action. Carriage reserves the right to determine the appropriate level of discipline for any inappropriate conduct, including but not limited to:• Verbal counseling• Written counseling• Performance improvement plan• Administrative leave without pay• Demotion• TerminationThis policy is not intended to interfere with, restrain, or prevent employees from communicating regarding wages, hours, or other terms and conditions of employment or engaging in a lawful strike or work stoppage, or otherwise interfere with employees’ rights under the National Labor Relations Act.

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EMPLOYEE HANDBOOK 86HarassmentCarriage Services, Inc. (“Carriage”) is an equal opportunity employer. It is the policy of Carriage that there shall be no harassment against any employee or applicant on the basis of race, color, sex, sexual orientation, gender identication/expression, religion, national origin, citizenship status, age, physical or mental disability, veteran status, or any other legally protected status in accordance with applicable federal, state, and local laws (collectively, the “Protected Categories”). In keeping with this policy, conrmed harassment based on any Protected Category by any of Carriage’s employees, supervi-sors, managers, ofcers, or representatives will not be tolerated. In the remainder of this document, the term “employees” refers to this collective group.HARASSMENTUnlawful harassment is not limited to the physical workplace itself. It can occur while employees are traveling for business or at employer sponsored events or parties. Calls, texts, emails, and social media usage by employees can constitute unlawful workplace harassment, even if they occur away from the workplace premises, on personal devices or during non-work hours.Sexual harassment includes harassment on the basis of sex, sexual orientation, self-iden-tied or perceived sex, gender expression, gender identity, and the status of being trans-gender.

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EMPLOYEE HANDBOOK 87Harassment and Discrimination – New York State AddendumThis addendum is added to the Carriage Services, Inc. (“Carriage”) Harassment Policy to comply with the laws of New York State. The addendum applies to all employees, supervisors, managers, ofcers, representatives, customers, vendors, suppliers, or contractors working in New York state. Carriage is committed to maintaining a workplace free from sexual harassment. Sexual harassment is a form of workplace discrimination.An investigation of any complaint, information, or knowledge of suspected harassment will be prompt and thorough, commenced immediately and completed as soon as possible. The investigation will be kept condential to the extent possible and will be fair and impartial.Any employee may be required to cooperate as needed in an investigation of suspected harassment. Carriage will not tolerate retaliation against employees who le complaints, support another’s complaint, or participate in an investigation regarding a violation of this policy.Carriage provides all employees a complaint form for employees to report sexual harassment and le complaints, which can be found on-line on the Company intranet portal (Carriagenet). If a complaint is verbal, the individual will be encouraged to complete the “Complaint Form” in writing. If he or she refuses, the Complaint Form should be completed for the employee. Employees can also make anonymous complaints on-line via the Ethical Advocate Website (https://reports.ethicaladvocate.com/). While the process may vary from case to case, investigations should be done in accordance with the following steps, unless otherwise directed by the Carriage Legal Team:• Upon receipt of complaint, the Human Resources Business Partner will conduct an immediate review of the allegations, and take any interim actions (e.g., instructing the respondent to refrain from communications with the complainant), as appropriate. If complaint is verbal, the individual will be encouraged to complete the

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EMPLOYEE HANDBOOK 88Complaint Form in writing. If he or she refuses, the Complaint Form will be prepared based on the verbal reporting. The Human Resources Business Partner will also determine whether to inform the Carriage Legal Team of the complaint.• If documents are relevant to the investigation, take steps to obtain and preserve them.• Request and review relevant documents, including electronic communications.• Interview all parties involved, including relevant witnesses;• Document the investigation pursuant to Carriage’s reasonable practices.The initiation of a complaint in good faith shall not, under any circumstances, be grounds for discipline. It is a violation of Carriage’s policy for an individual to be disciplined or otherwise disadvantaged as a result of a good faith resort to this complaint procedure. Carriage prohibits retaliation against anyone who les a charge of discrimination with Carriage, the EEOC, or a state or local equal employment opportunity agency.The following describes some of the types of acts that may be unlawful sexual harassment and that are strictly prohibited:• Physical acts of a sexual nature, such as:◊ Touching, pinching, patting, kissing, hugging, grabbing, brushing against another employee’s body or poking another employee’s body;◊ Rape, sexual battery, molestation or attempts to commit these assaults.• Unwanted sexual advances or propositions, such as:◊ Requests for sexual favors accompanied by implied or overt threats concerning the target’s job performance evaluation, a promotion or other job benets or detriments;◊ Subtle or obvious pressure for unwelcome sexual activities.• Sexually oriented gestures, noises, remarks or jokes, or comments about a person’s sexuality or sexual experience, which create a hostile work environment.• Sex stereotyping occurs when conduct or personality traits are considered inappropriate simply because they may not conform to other people’s ideas or perceptions about how individuals of a particular sex should act or look.• Sexual or discriminatory displays or publications anywhere in the workplace, such as:

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EMPLOYEE HANDBOOK 89◊ Displaying pictures, posters, calendars, grafti, objects, promotional material, reading materials or other materials that are sexually demeaning or pornographic. This includes such sexual displays on workplace computers or cell phones and sharing such displays while in the workplace.• Hostile actions taken against an individual because of that individual’s sex, sexual orientation, gender identity and the status of being transgender, such as:◊ Interfering with, destroying or damaging a person’s workstation, tools or equipment, or otherwise interfering with the individual’s ability to perform the job;◊ Sabotaging an individual’s work;◊ Bullying, yelling, name-calling.Sexual harassment is not only prohibited by Carriage but is also prohibited by state, federal, and, where applicable, local law.Aside from the internal process at Carriage, employees may also choose to pursue legal remedies with the below listed governmental entities. STATE HUMAN RIGHTS LAWThe Human Rights Law (HRL), codied as N.Y. Executive Law, art. 15, § 290 et seq., applies to all employers in New York State with regard to sexual harassment, and protects employees, paid or unpaid interns and non-employees, regardless of immigration status. A complaint alleging violation of the Human Rights Law may be led either with the Division of Human Rights (DHR) or in New York State Supreme Court.Complaints with DHR may be led any time within one year of the harassment. If an individual did not le at DHR, they can sue directly in state court under the HRL, within three years of the alleged sexual harassment. An individual may not le with DHR if they have already led a HRL complaint in state court.Complaining internally to Carriage does not extend your time to le with DHR or in court. The one year or three years is counted from date of the most recent incident of harassment.You do not need an attorney to le a complaint with DHR, and there is no cost to le with DHR.

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EMPLOYEE HANDBOOK 90DHR will investigate your complaint and determine whether there is probable cause to believe that sexual harassment has occurred. Probable cause cases are forwarded to a public hearing before an administrative law judge. If sexual harassment is found after a hearing, DHR has the power to award relief, which varies but may include requiring your employer to take action to stop the harassment, or redress the damage caused, including paying of monetary damages, attorney’s fees and civil nes.DHR’s main ofce contact information is: NYS Division of Human Rights, One Fordham Plaza, Fourth Floor, Bronx, New York 10458. You may call (718) 741-8400 or visit: www.dhr.ny.gov.Contact DHR at (888) 392-3644 or visit dhr.ny.gov/complaint for more information about ling a complaint. The website has a complaint form that can be downloaded, lled out, notarized and mailed to DHR. The website also contains contact information for DHR’s regional ofces across New York State.CIVIL RIGHTS ACT OF 1964The United States Equal Employment Opportunity Commission (EEOC) enforces federal antidiscrimination laws, including Title VII of the 1964 federal Civil Rights Act (codied as 42 U.S.C. § 2000e et seq.). An individual can le a complaint with the EEOC anytime within 300 days from the harassment. There is no cost to le a complaint with the EEOC. The EEOC will investigate the complaint and determine whether there is reasonable cause to believe that discrimination has occurred, at which point the EEOC will issue a Right to Sue letter permitting the individual to le a complaint in federal court.The EEOC does not hold hearings or award relief but may take other action including pursuing cases in federal court on behalf of complaining parties. Federal courts may award remedies if discrimination is found to have occurred. In general, private employers must have at least 15 employees to come within the jurisdiction of the EEOC.An employee alleging discrimination at work can le a “Charge of Discrimination.” The EEOC has district, area, and eld ofces where complaints can be led. Contact the EEOC by calling 1-800-6694000 (TTY: 1-800-669-6820), visiting their website at www.eeoc.gov or via email at info@eeoc.gov.If an individual led an administrative complaint with DHR, DHR will le the complaint with the EEOC to preserve the right to proceed in federal court.LOCAL PROTECTIONSMany localities enforce laws protecting individuals from sexual harassment and discrimination. An individual should contact the county, city or town in which they live to nd out if such a law exists. For example, employees who work in New York City may le complaints of sexual harassment with the New York City Commission on Human Rights. Contact their main ofce at Law Enforcement Bureau of the NYC Commission on Human Rights, 40 Rector Street, 10th Floor, New York, New York; call 311 or (212) 306-7450; or visit www.nyc.gov/html/cchr/html/home/home.shtml.

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EMPLOYEE HANDBOOK 91New York State Sexual Harassment Complaint FormNew York State Labor Law requires all employers to adopt a sexual harassment prevention policy that includes a complaint form to report alleged incidents of sexual harassment.If you believe that you have been subjected to sexual harassment, or other harassment you are encouraged to complete this form and submit it to your Direct Manager or Supervisor, or the Human Resources Department. The Human Resources Department can be reached via email at hr@carriageservices.com or by calling 713-332-8604. You may also contact the Ethical Advocate at carriage.ethicaladvocate.com or call 855-370-6087. You will not be retaliated against for ling a complaint.If you are more comfortable reporting verbally or in another manner, your employer should complete this form, provide you with a copy and follow its sexual harassment prevention policy by investigating your claim.Form additional resources, visit: ny.gov/programs/combating-sexual-harassment-workplaceComplainant Name: Work Phone: Work Location: Work Email:Job Title: Immediate Supervisor’s Name:Immediate Supervisor’s Job Title: 1. Your complaint about Sexual Harassment is made about whom? What is their work relationship to you?

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EMPLOYEE HANDBOOK 93Inclement Weather Carriage Services, Inc. (“Carriage”) recognizes there are times when weather will hinder the ability for employees to travel to their work location. The purpose of this policy is to outline the expectations in the event of inclement weather. It is the policy of Carriage to remain open during most periods of inclement weather; however, where extraordinary circumstances warrant, due to weather or other unforeseen business interruption, the company reserves the right to close the facility. Should this occur, management will notify their employees as soon as possible. EMERGENCY CLOSING DETERMINATION • Carriage Business Locations - Should inclement weather conditions pose operational problems; the Managing Partner may close his or her business or allow employees to leave early. • Houston Support Center - If inclement weather or an emergency situation occurs in the Houston location during regular ofce hours, Executive Management will determine whether to close the ofce or modify working hours. A voice announcement will be posted on Carriage’s Emergency Information Line at 1 (866) 395-7594. FACILITY CLOSED If the facility is announced to be closed on a given day, all exempt level staff will receive regular pay for the day of closure. For hourly or non-exempt employees on a day of closure, the employee will receive pay for any hours scheduled that day. FACILITY OPEN If the facility remains open on an adverse weather day, employees who report to work will receive their normal pay for the day, i.e., exempt staff will receive their regular salary and hourly employees will be paid at their base rate plus any incentives for all hours worked. If an employee elects not to report to work on a facility open day, the employee can elect to 1) use any accrued paid time off for the missed day or 2) the employee will not be paid for the day.

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EMPLOYEE HANDBOOK 94NOTIFICATION Regardless of whether the facility remains open or closed on an inclement day, it is each employee’s decision to determine if they can safely arrive at work under the conditions. If an employee elects not to work on a given day, the Company requires the courtesy of a phone call to your Direct Manager or Supervisor advising as to your status for the day, prior to the beginning of the work day.EXCEPTIONS Exempt and non-exempt employees who are on sick leave on a day when a partial day closing occurs are charged with sick leave for the entire day. Exempt and non-exempt employees already on personal leave or vacation during emergency closings are charged with such leave or vacation as was originally scheduled.

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EMPLOYEE HANDBOOK 95Meal and Rest BreaksCarriage Services, Inc. (“Carriage”) has established this policy to clarify what part of the workday is reserved for meal, break and rest periods. The direct manager must arrange employee meal, break and rest periods to ensure adequate stafng is maintained for ongoing operations while simultaneously allowing employees to take the meal, break and rest periods they are allowed under applicable federal and state law and this policy. Employees in California businesses should reference the California Meal and Rest Breaks Policy.MEAL PERIODSEmployees who work ve (5) or more hours during a workday are provided an unpaid meal period of no less than 30 minutes, that begins no later than the completion of ve (5) hours of work on that day.Meal periods are not to be taken during the employee’s rst or last scheduled hour of work, nor may they be combined with rest breaks to extend the meal period.Employees are to be completely relieved from duty during their meal break. Non-exempt and inside sales employees are required to clock out at the beginning of their meal period and clock in at the conclusion of their meal period. Non-exempt and inside sales employees must be paid for any part of a meal period during which the employee is not completely relieved from duty. REST PERIODSEmployees are provided one 10 minute paid rest period for each four (4) hours worked or to be worked during a workday. Timing and length of employee rest periods are determined by the employee’s direct manager. Rest periods are not to be taken during the employee’s rst or last scheduled hour of work, nor may they be combined with a meal period.Although rest periods are paid, they are duty-free, meaning they are free of all employment-related responsibility. Employees must remain on the premises but are

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EMPLOYEE HANDBOOK 96encouraged to leave their workstation or work area during their rest periods.LACTATION BREAKSEmployees who are nursing mothers are provided and permitted reasonable break time as needed to express breast milk for nursing children up to one (1) year after the child’s birth. A place other than a bathroom, shielded from view and free from intrusion from co-workers and the public, will be available at each work location for employees to use for reasonable amounts of time as frequently as needed. A bathroom, even if private, is not a permissible location; however, a space temporarily created or converted into a space for such a purpose is permissible as long as it meets the above-mentioned requirements. RESPONSIBILITIESManagement must make meal and rest periods and lactation breaks available to employees consistent with this policy.The direct manager can schedule the timing of meal and rest periods for employees consistent with this policy, taking into account the business requirements of the location or department as well as the employee’s needs. Lactation breaks must be allowed as frequently as necessary and are not subject to any scheduling requirements.The direct manager is responsible for administering their employees’ rest and meal periods in a fair and uniform manner and staggering or otherwise scheduling employees’ rest and meal periods so ongoing business responsibilities are not compromised.Employees are responsible for keeping direct manager informed of any changes to work schedules, including changes involving meal and rest periods and lactation breaks.An employee who takes unauthorized meal or rest periods, extends authorized meal or rest periods beyond approved limits, or fails to report time worked in lieu of an approved meal period can be subject to discipline, up to and including termination of employment.

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EMPLOYEE HANDBOOK 97California Meal and Rest BreaksCarriage Services, Inc. (“Carriage”) has established this policy to clarify what part of the workday is reserved for meal and rest breaks for California employees. The direct manager must arrange employee meal and rest breaks to ensure adequate stafng is maintained for ongoing operations while simultaneously allowing employees to take the meal and rest breaks they are allowed under applicable federal and state law and this policy. MEAL PERIODSEmployees who work ve (5) or more hours during a workday are provided and afforded an uninterrupted, duty-free, unpaid meal period of no less than 30 minutes. Employees who work more than 10 hours in a workday are provided and afforded a second, uninterrupted, duty-free, unpaid 30-minute meal break.Meal periods are not to be taken during the employee’s rst or last scheduled hour of work, nor may they be combined with rest breaks to extend the meal period.Employees are to be completely relieved from duty during their meal break. Non-exempt and inside sales employees are required to clock out at the beginning of their meal period and clock in at the conclusion of their meal period. Employees may waive their meal periods only when they will complete their workday in six hours. If employees work more than 10 hours in a day, they may waive their second meal periods only if they take their rst meal periods and they do not work more than 12 hours that day. Employees should ask their supervisor or their Human Resources

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EMPLOYEE HANDBOOK 98Business Partner regarding how to waive a meal period in the system.REST PERIODSEmployees are provided 10-minute rest breaks as follows:Timing of employee rest periods are determined by the employee’s direct manager. Rest periods are not to be taken during the employee’s rst or last scheduled hour of work, nor may they be combined with a meal period. Rest breaks should be noted on the employee’s time card.Although rest periods are paid, they are duty-free, meaning they are free of all employment-related responsibility. Employees must remain on the premises but are encouraged to leave their workstation or work area during their rest periods.LACTATION BREAKSEmployees who are nursing mothers are provided and permitted reasonable break time as needed to express breast milk for nursing children up to one (1) year after the child’s birth. A place other than a bathroom, shielded from view and free from intrusion from co-workers and the public, will be available at each work location for employees to use for reasonable amounts of time as frequently as needed. A bathroom, even if private, is not a permissible location; however, a space temporarily created or converted into a space for such a purpose is permissible as long as it meets the above-mentioned requirements. RESPONSIBILITIESManagement must make meal and rest periods and lactation breaks available to employees consistent with this policy.

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EMPLOYEE HANDBOOK 99Direct managers can schedule the timing of meal and rest periods for employees consistent with this policy, taking into account the business requirements of the location or department as well as the employee’s needs. Lactation breaks must be allowed as frequently as necessary and are not subject to any scheduling requirements.Direct managers are responsible for administering their employees’ rest and meal periods in a fair and uniform manner and staggering or otherwise scheduling employees’ rest and meal periods so ongoing business responsibilities are not compromised.Employees are responsible for keeping the direct manager informed of any changes to work schedules, including changes involving meal and rest periods and lactation breaks.An employee who takes unauthorized meal or rest periods, extends authorized meal or rest periods beyond approved limits, or fails to report time worked in lieu of an approved meal period can be subject to discipline, up to and including termination of employment.

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EMPLOYEE HANDBOOK 100Professional Standards of ConductCarriage Services, Inc. (“Carriage”) desires to provide a professional and positive working environment for all employees. Therefore, Carriage has an expectation that all employees will adhere to a professional standard of conduct in the workplace. These standards have been established in order to protect the interests and safety of all employees and to ensure effective business operations, courteous service to our client families, and support of our culture of “Being the Best.”VIOLATIONS OF STANDARDS Carriage expects employees to conduct themselves in a professional and appropriate manner at all times. The following represents behavior(s) that Carriage considers to be unacceptable or unprofessional and a violation of our expected standards of professional conduct: • Falsication of employment records, employment information, omission of a criminal conviction, or other information.• Theft of or the deliberate or careless damage of any Carriage property or the property of any employee, client, client family member, or vendor.• Unauthorized use of Carriage equipment, time, materials, or facilities, including the use of internet and e-mail.• Removing or borrowing Carriage property without prior authorization.• Failure to submit to a drug/and or alcohol test when requested.• Possessing, distributing, selling, transferring, using, or being under the inuence of alcohol or illegal drugs in the workplace and/or on Carriage property.• Provoking a ght or ghting during working hours or on premises owned or occupied by Carriage.• Participating in horseplay or practical jokes on Carriage’s time or on premises owned or occupied by Carriage.• Engaging in criminal conduct, whether or not related to job performance.• Carrying, having, and/or making verbal threats about possesing rearms or any other dangerous weapons at any time on premises owned or occupied by Carriage.

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EMPLOYEE HANDBOOK 102SmokingCarriage Services, Inc. (“Carriage”) intends to provide a safe, healthy, and pleasant environment for our employees and the client families we serve on a daily basis. As a result, Carriage has developed this policy in order to protect the health and comfort of its employees, client families, and the general public at each of our individual business locations. For the purpose of this policy, smoking refers to the use of any tobacco product which include cigarettes, e-cigarettes, vapes.SMOKING AREAS Smoking is only permitted in outdoor areas where smoke will not affect persons in the non-smoking areas, spaces, building entry/exits, or their surrounding walkways. Where smoking is permitted, employees are required to use ashtrays or similar receptacles to guard against re and maintain proper cleanliness of our facilities and grounds. Smoking is not permitted inside any Carriage building or while attending to client families, guests, vendors or the general public, regardless of time or place.Outdoor areas where smoking is prohibited include: • Grounds, mausoleums, parking lots, patios, enclaves, garages, etc. • In Carriage vehicles. • In or near any maintenance area containing chemicals, fuel, or other ammable materials. OTHER CONSIDERATIONS In some instances, state law or local ordinances may require that Managing Partners adopt stricter measures for their location. In those instances, Managing Partners are responsible for notifying employees and the general public of the increased restrictions.

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EMPLOYEE HANDBOOK 104Weapons in the WorkplaceCarriage Services, Inc. (“Carriage”) has business and legal interests in maintaining a violence-free workplace for all employees and visitors (e.g., client families, contractors, and vendors). Therefore, Carriage prohibits the possession or use of dangerous weapons on Carriage premises and in Carriage-owned or leased vehicles. A license to carry a rearm or any other weapon does not supersede this policy. See the Limited Licensed and Permitless Carry Firearm Exceptions section of this policy below for additional information pertaining to employees in certain states. DEFINITIONS “Carriage premises” means and includes all Carriage places of business - owned and leased real estate, xed improvements of and on such real estate, and areas and locations within them (e.g., land and surrounding areas - such as sidewalks, walkways, driveways, cemeteries, mausoleums, lawns, and parking lots - and buildings, as well as rooms, ofces, cubicles, and closets within buildings) under Carriage’s ownership or its full or partial control. OTHER CONSIDERATIONSIn accordance with Carriage policy pertaining to workplace search, inspection, and investigation, Carriage reserves the right at any time, without prior notice and at its discretion, to search all Carriage-owned or leased vehicles, packages, containers, lockers, desks, enclosures, or any other storage devices provided to employees (whether or not the employee is allowed to secure them from others by use of any company- or employee-provided lock, passcode, or key), as well as any items of personal property on its premises.LIMITED LICENSED AND PERMITLESS CARRY FIREARM EXCEPTIONSCarriage employees who work in certain states and are in possession of a valid state-issued rearms license may have a lawfully-owned rearm, covered by that license, inside their locked personal vehicle (but never a Carriage owned or leased vehicle) when that vehicle is on Carriage’s premises. Additionally, Carriage employees who work in

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EMPLOYEE HANDBOOK 105certain states that have enacted a permitless carry statute may have a lawfully owned rearm, inside their locked personal vehicle (but never a Carriage owned or leased vehicle) when that vehicle is on Carriage’s premises. While such a rearm is within a personal vehicle on Carriage premises, and while driving or performing work for Carriage business, any such rearm, including any ammunition thereto, must be kept in the employee’s vehicle, out of sight by others inside or outside that vehicle, and may not be brandished from within the vehicle, removed from the vehicle, or carried anywhere on Carriage’s premises. DISCIPLINEAny employee who is found to be in violation of this policy may be subject to disciplinary action, up to and including termination.

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EMPLOYEE HANDBOOK 106Work Schedules and HoursCarriage Services, Inc. (“Carriage”) establishes the time and duration of working hours as required by overall workload, the needs of our client families, and any applicable federal, state, and local law.GENERAL CONSIDERATIONSThe workweek begins at 12 a.m. Sunday and ends at 11:59 p.m. the following Saturday. Work schedules for employees are established within this framework. Employees’ scheduled work hours will be determined by their Managing Partner or Direct Supervisor. The Managing Partner or Direct Supervisor will inform employees of their work schedules, including any changes that are considered necessary as a result of business demands. Based on the needs of the business and nature of the death care industry, Carriage reserves the right to alter schedules to accommodate the needs of the location, department, employees, or client families. Accordingly, Carriage may increase or decrease an employee’s hours and may require overtime work as deemed necessary. For further information regarding overtime, please refer to the overtime policy. As part of our responsibility to our client families, to the public, and to other employees, Carriage expects employees to be at work as scheduled, and to notify their manager as early as possible if they expect to be absent or tardy. Employees are expected to be at their work stations alert and ready to commence work at the beginning of their scheduled shifts. REPORTING TIME PAYWhile Carriage makes every effort to schedule employees adequately and provide sufcient notice when scheduled employees no longer need to report for work, there are instances where this may not be possible. In those cases, employees who report to their job expecting to work but are unable to work will be compensated in accordance with any applicable state reporting time pay laws.

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EMPLOYEE HANDBOOK 107Communicable Diseases Carriage Services, Inc. (“Carriage”) values the safety health and wellbeing of its employees while also respecting their privacy. This policy will be applied and interpreted to be in compliance with applicable federal, state and local laws, including but not limited to the ADA, the FMLA, GINA, and HIPAA. GENERAL CONSIDERATIONSEmployees who have been diagnosed with a communicable disease or infection known to be spread through any potential work contact may not return to work until such time as a licensed medical practitioner has deemed it appropriate. REPORTINGEmployees who are diagnosed with a communicable disease by a licensed medical practitioner or any other condition as identied by the U.S. Center for Disease Control as highly contagious or posing a potentially signicant risk to the general population are expected to follow the instructions of their healthcare provider(s). Employee shall provide information to their Direct Manager or Supervisor regarding their infection when directed to do so by their physician or by public health ofcials. Carriage will issue reports of communicable diseases as required by law. Workplace Health and Hygiene StandardsCarriage will provide training and necessary equipment to employees whose duties require contact with blood or bodily uids. Employees are required to report to their Direct Manager or Supervisor any areas of the workplace that have been potentially affected by a communicable disease.FIT FOR DUTYCarriage reserves the right to require employees to undergo a medical examination to determine tness for duty. The employee must provide documentation from a licensed medical practitioner indicating he or she is t for duty.

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EMPLOYEE HANDBOOK 109Hepatitis B Vaccination SCOPE AND APPLICATION Pursuant to Occupational Safety and Health Administration (OSHA) regulations, all Carriage employees who have a reasonable expectation of being exposed to blood or other infectious bodily uids and tissue while working are entitled to receive the Hepatitis B vaccination at no charge. VACCINATION Employees who are identied as having a reasonable risk of exposure during the course and scope of their employment with Carriage will be eligible to receive a Hepatitis B vaccination at no charge. If employees elect to be vaccinated, they will be directed to a Carriage-authorized third-party vendor who has been contracted by Carriage to administer the Hepatitis B vaccination to eligible employees. DECLINING VACCINATION Employees may, at their discretion, decline to receive the Hepatitis B vaccination. Employees who elect to decline vaccination must complete the Hepatitis B Acknowledgement/Declination form, which will be retained by the Human Resources Department. At any time during employment, employees who previously declined the Hepatitis B vaccination may change their election and opt for vaccination.

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EMPLOYEE HANDBOOK 110Motor Vehicle Policy Carriage Services, Inc. (“Carriage”) has identied occupations where driving is considered an essential job function. This includes the operation of Carriage-owned vehicles, personally owned vehicles used for Carriage business, and vehicles rented at Carriage’s expense. As a result, employment in these instances is contingent upon a valid driver’s license and/or special driving certication (commercial driver’s license), as well as an acceptable motor vehicle record. The following pertains to employees designated to drive on behalf of Carriage:• Attained 18 years of age.• Hold a valid driver’s license for the type of vehicle/equipment in accordance with applicable law and successfully complete the designated vehicle safety training program issued and maintained by the Risk Management Department.• Carriage vehicles are to be driven for business purposes only – personal use of Carriage-owned vehicles is not allowed, unless expressly authorized by the Regional Partner, an Ofcer of the Company, or another authorized Carriage employee.• Cease driving for Carriage purposes and notify their Direct Manager or Supervisor if his or her driver’s license is revoked or suspended. Carriage reserves the right to re-run MVR report at anytime • Notify their Direct Manager or Supervisor immediately if charged with a moving violation (e.g., DUI/DWI), other citation or involved in a motor vehicle accident. Employees involved in motor vehicle accidents are subject, at Carriage’s discretion, to post-accident drug/alcohol testing, whether they caused the accident or not. An employee who has an identied occupation where driving is considered an essential job function must report any such moving violations, other citations or motor vehicle accidents regardless of whether such moving violation(s), citation or motor vehicle accident(s) occurred outside of the course and scope of his/her employment.• May not operate a Carriage-owned vehicle or any other vehicle while on Carriage business while under the inuence of intoxicants which could impair driving ability is prohibited, including prescription medication that impairs driving ability.

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EMPLOYEE HANDBOOK 111• Use of handheld electronic communication devices (such as cell phones, smart phones, tablets and like devices) whether personal or business-owned, while behind the wheel of a moving vehicle being used for Carriage business is not allowed.• Refrain from engaging in other distracting activities while driving including, but not limited to eating, putting on makeup, texting, or reading while operating a Carriage-owned vehicle or any other vehicle for Carriage business. • All employees and passengers must wear seatbelts at all times.• All mechanical difculties or safety concerns with Carriage vehicles must be reported to their Direct Manager or Supervisor immediately. • Get authorization of his or her Direct Manager or Supervisor for repairs to a Carriage vehicle.MOTOR VEHICLE ACCIDENTSReport all accidents involving Carriage-owned vehicles, personally owned vehicles being used at the time of the accident for Carriage business, or vehicles rented at Carriage’s expense, to the applicable manager or supervisor. Notify applicable law enforcement, if required by law, after an accident.USE OF PERSONAL VEHICLESCarriage automobile insurance coverage only covers liability for damage to a third-party vehicle or personal injury while the Carriage vehicle or rental vehicle is being used by the employee for Carriage business. Damage to employee-owned vehicles, as well as injury to family members, friends, and other vehicle occupants, will not be covered by Carriage’s insurance and therefore is the sole responsibility of the employee. Employees who use their personal vehicles for Carriage business will be reimbursed for mileage pursuant to current IRS guidelines and other related Carriage policies regarding business expense reimbursement utilizing a properly approved employee expense report. These expenses may not be reimbursed through petty cash or paid by a Carriage-issued credit card unless such card is expressly provided for such purpose. California employees are encouraged to read Carriage’s separate Policy regarding reimbursement for personal vehicle mileage applicable to California employees.PERSONAL USE OF COMPANY VEHICLEMileage driven in a company vehicle for personal use must be tracked separately for

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EMPLOYEE HANDBOOK 113Personal Protective Equipment Carriage Services, Inc. (“Carriage”) will provide Personal Protective Equipment (“PPE”) as required by the Occupational Safety and Health Administration (“OSHA”) and any other applicable federal, state, or local laws at no cost to the employee. PPE will be worn and used as required by applicable federal, state, or local laws. For additional information, employees may discuss the use of and procurement of PPE with their Direct Manager, Supervisor, or with Carriage’s Human Resources and/or Risk Management Department. All employees, supervisors, and managers are responsible for reading and following guidelines pertaining to worker safety, including the appropriate use of PPE.

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EMPLOYEE HANDBOOK 114Workers’ Compensation Carriage Services Inc., (“Carriage”) provides workers’ compensation insurance for work-related injuries or illnesses. In order to administer workers’ compensation claims in a timely manner, Employees are required to immediately report all work-related injuries or illnesses to their Direct Manager or Supervisor. If a manager or supervisor is not available, employees must report work-related injuries or illnesses to Carriage’s Risk Management Department. Injured employees, in conjunction with their Direct Manager or Supervisor, must complete an in-house Accident Report that must be sent to the Risk Management Department as soon as possible. The manager or supervisor, upon notication of such work-related illness or injury, will immediately arrange for the injured employee to receive required medical care, if necessary. Employees who sustain a work-related injury or illness may be required to submit to a post-accident alcohol/drug test immediately following the accident, if applicable, in accordance with Carriage’s Drug and Alcohol Policy. COMPENSATIONThe employee will be compensated in accordance with applicable Workers Compensation laws. Upon submission and processing of the claim, the Risk Management Department will ascertain what, if any, state-specic workers’ compensation benet waiting period may exist for the claim based on applicable state law. Until such waiting period has been veried, the employee is not eligible for any lost time pay from Carriage. In the event it is determined that an waiting period exists, employees may be compensated for their normally scheduled work hours during such waiting period by utilizing any accrued paid time off (e.g., sick, personal, and/or vacation leave) until such time is exhausted, or until the end of the workers’ compensation benet waiting period, whichever comes rst. In the event the employee has no such accrued paid time off available, the lost time under the waiting period will not be compensable.In the event a work-related injury or illness results in an employee being absent from work for three (3) or more scheduled workdays, the Managing Partner, or Direct Manager is responsible for notifying the Risk Manager and the Human Resources

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EMPLOYEE HANDBOOK 115Department so that the employee may be placed on a leave of absence in accordance with Carriage’s Leave of Absence - Family & Medical Leave Policy.RETURN TO WORKEmployees may not return to work following a work-related injury or illness until their return is approved by a Carriage-approved physician. If employees are released unconditionally, then they will be reassigned, if possible, to the position they had prior to their injury or illness. However, if that position is no longer available, the employee will be assigned to a position which is as equivalent as possible (in duties, hours, and pay) to their previous position. In the event employees are released but restrictions are placed on the duties they can perform, employees will be assigned to a position which corresponds to their restriction(s), provided this type of work is available. This work is typically referred to as “modied duty” or “light duty” work. An assignment of light or modied duty may not exceed ninety (90) days. The 90-day period will commence with the date of release to limited or restricted work, as established by the treating physician, and will end upon the removal of the restrictions or at the conclusion of the ninety (90)-day period, whichever occurs rst. The limited work period may be extended beyond the ninety (90) days based upon individual circumstances and at the sole discretion of Carriage.EXCLUSIONSWhile workers’ compensation is designed to provide assistance to individuals who are injured or become ill as a result of their employment, it typically does not cover injuries received while travelling to or from work or during the lunch period. An injury which is incurred in any one of the following ways is not considered to be a compensable work-related injury for purposes of workers’ compensation:• As a result of horseplay,• In an accident that is due to an employee’s intoxication, or • As a result of any other agrant abuse of work-related policies.

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EMPLOYEE HANDBOOK 116Search, Inspection, and Investigation Carriage Services, Inc. (“Carriage”) is committed to ensuring the health and safety of employees and visitors on its premises. All employees who enter onto Carriage premises or use any Carriage property are subject to Carriage’s control, policies, inspection, and search without prior notice, subject to protections afforded by federal, state, or local law. Employees should have no expectation of privacy with respect to Carriage property. GENERAL CONSIDERATIONSCarriage may conduct searches, inspections, and investigations (collectively “investigations”) in its discretion, at any time, without advance notice, subject to protections afforded by federal, state, or local law. Employees are required to cooperate fully with and assist in investigations.Carriage reserves the right at any time, without prior notice and at its discretion, to search all Carriage-owned or leased vehicles, packages, containers, briefcases, purses, lockers, desks, enclosures, electronic devices, including Carriage Devices and personal mobile devices, or any other storage devices provided to employees (whether or not the employee is allowed to secure them from others by use of any Company- or employee-provided lock, pass code, or key), as well as any items of personal property on its premises. [For purposes of this Policy, “Carriage Devices” shall have the same meaning as set forth in Carriage’s Computers, Mobile Phones & Other Electronic Devices Policy and “personal mobile devices” shall have the same meaning as set forth in Carriage’s Bring Your Own Mobile Device Policy. Any search of a Carriage Device or personal mobile device will be subject to, and consistent with, those policies.] There may be instances where Carriage employees will be called upon to participate in external investigations or attend depositions and court proceedings. When required by subpoena or requested by Carriage, employees are expected to cooperate during these investigations.Employees are required to keep any information they may have regarding any investigation condential unless otherwise authorized.

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EMPLOYEE HANDBOOK 118Workplace Anti-Violence Carriage Services, Inc. (“Carriage”) Workplace Anti-Violence policy prohibits intimidation, harassment, or other threats of (or actual) violence by employees or third parties against co-workers, clients, client families, visitors, guests, vendors, and members of the general public that may occur on its premises or during business or off-duty hours. Employees who become aware of any threats of workplace violence must report the threats immediately to their Direct Manager or Supervisor who will consult with appropriate resources. IMMINENT RISK OF VIOLENCEAny employee who becomes aware of any actual or imminent violence, both direct and indirect, or that may affect you or others at the workplace, must immediately obtain emergency assistance. This includes threats by employees, as well as threats by clients, client families, visitors, guests, vendors, or other members of the public. Employees should immediately contact local law authorities by dialing 911. After contacting law enforcement authorities for emergency assistance, employees must report the incident to their Direct Manager or Supervisor and to the Human Resources Department and/or Legal Department.