Document:

Exhibit 10.1

 

SEPARATION AGREEMENT AND RELEASE

 

This Separation Agreement and Release (“Agreement”) is
between VYYO LTD. (“Vyyo”) of Hanegev 4, Airport City, and Gil Brosh, and all of his heirs, executors,
beneficiaries and assigns (“Employee”) of Kiryat Ono.  This Agreement shall be effective as of March
22, 2007 (“Effective Date”).

RECITALS

WHEREAS, Employee served as an employee of Vyyo, pursuant to an Employment
Agreement dated May  11, 2006 (the “Employment Agreement”);
and

WHEREAS, on January 21, 2007, Employee delivered a resignation notice to Vyyo; and

WHEREAS, Vyyo and Employee desire to amicably settle the termination of Employee’s
employment relationship with Vyyo; and

WHEREAS, even though Employee has made no claims against Vyyo and Vyyo has made
no claims against Employee, Vyyo and Employee desire to resolve any and all
claims and potential claims as described in this Agreement.

ACCORDINGLY, the parties agree as follows:

1.                                       Effective
as of July 22, 2007 (the “Termination Date”),
Employee’s employment with Vyyo shall cease, except as set forth in this
Agreement.  It is understood that
effective as of the Termination Date, the employer-employee relationship
between the Employee and Vyyo shall be fully and finally terminated.

2.                                       On the Termination Date, Vyyo will:

2.1.                              Pay
Employee any salary earned but unpaid through the Termination Date.

2.2.                              Pay Employee Recreation Pay (“Demei Havra’ah”)
in the amount of 2,898 Nis.

2.3.                              Transfer
to the name of Employee the ownership of all his Manager Insurance (“Bituach Menahalim”) policies. It is agreed hereby that providing
a letter instructing the insurance company to transfer the Manager’s Insurance
policies to Employee’s ownership will be deemed full satisfaction of Vyyo’s obligations
in connection with Employee’s rights to Manager’s Insurance.

2.4.                              
Transfer directly to Bituach Menahalim fund, all the required supplements to
the employee’s severance pay (“Hashlamot”) in
the amount of 8,789 nis.

2.5.                              Transfer
to Employee’s name, on the date required by law, ownership of his Continuous Education
Funds (“Keren Hishtalmut”).  It is agreed hereby, that providing a letter
instructing the Education found to transfer the Continuous Education Fund to
the 

ownership of Employee will be deemed as full satisfaction of Vyyo’s
obligations in connection with Employee’s rights to the Continuous Education
Fund.

2.6.                              Pay
to Employee for his accrued vacation days in the total gross amount of 25,965 NIS,
for 12 days of work, constituting the unused vacation days as remains for Employee’s
benefit as of the Termination Date.  In
the event that the remaining vacation days of Employee will be exceeded, the
payment for final salary or any other payment under law or this Agreement owed
to Employee will be offset accordingly.

2.7.                              It
is agreed herein that providing a letter instructing the insurance company to
transfer the Manager’s Insurance policy to the ownership of Employee, and attaching
the relevant Form 161, will be deemed to effect the terms stated in paragraphs ‎2.3 and ‎2.5.

3.                                       No later than the Termination Date, Employee
shall return to Vyyo the leased car found in his possession and the fuel meter,
in good and proper condition, in the same condition as obtained. Employee is
obligated to pay all fees and parking statements pertaining to such car
which are attributable to the period that ends on the date of actual return of
the car by Employee to Vyyo.

In the case where Employee notifies Vyyo that he so desires, Vyyo will
allow Employee, beyond the letter of the law, to negotiate, directly with the
leasing company, the transfer of the leasing contract to a third party, or the purchase
of the leased car, instead of returning the car to Vyyo. All expenses will be
borne by Employee. All financial obligations associated with such transfer or
purchase (including tax obligations and all future payments, fees and
obligations in connection) will be borne solely by Employee, and he agrees
hereby that Vyyo may deduct such amount from his payroll or from any other
payment to which he may otherwise be entitled.

4.                                       Employee
declares and confirms that in accordance with the Option Agreement (“Option Agreement”) between Employee and Vyyo Inc. (“Vyyo Inc.”), Employee was granted options to acquire 45,000 shares
of Common Stock of Vyyo Inc. at an exercise price of $6.22 per share.

Employee declares and affirms that as of the Termination Date, options
to acquire 12,187 shares  shall vest.  All remaining options that have not vested as
of the Termination Date will be automatically cancelled on the Termination Date
and Employee will have no right thereunder.

The Vested Options (and solely the Vested Options) may be exercised
until October 21, 2007.  The Vested Options,
or any part thereof, which were not exercised will be automatically cancelled as
of October 22, 2007, and Employee will not have any right to obtain shares
thereby.

Employee declares and confirms that, other than his rights in the
Vested Options as stated above, he has no rights of any type to purchase or
receive any securities of Vyyo Inc., or of any company affiliated with it
(including, without limitation, Vyyo Ltd., Xtend Networks Ltd. or any
subsidiary or an affiliate of any of the foregoing companies), whatever their source,
including rights in options that were not vested as of the Termination Date,
and he will have no claim for such rights.

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The provisions of Vyyo Inc.’s Third Amended and Restated 2000 Employee
and Consultant Equity Incentive Plan, and the terms and conditions of the First
Option Agreement and the Second Option Agreement between Vyyo Inc. and Employee
will continue to apply in accordance with their terms, mutatis
mutandis.

5.                                       Employee
does hereby declare, confirm and undertake that upon receipt of the funds
detailed above, Vyyo, Vyyo Inc. and any subsidiary thereof, have fulfilled all
of their obligations to him in connection with his employment and termination
thereof, including salary and all payments, including, without limitation, any
and all payments, if applicable, for the advance notice period, payment in
redemption of annual vacation or holiday allowance, recreation pay, severance
pay, health insurance, expense reimbursement, overtime pay, sick pay, bonuses,
that are or shall be due to Employee in connection with his employment with Vyyo
or the termination thereof.  Employee hereby
releases and forever discharges Vyyo, Xtend and its parent company, subsidiaries,
partners, investors, predecessors, successors, heirs, assigns, employees,
former employees, shareholders, officers, directors, agents, attorneys,
insurance carriers, subsidiaries, divisions or affiliated corporations or
organizations, whether previously or hereinafter affiliated in any manner,
including without limitation any other entity associated with Vyyo Inc. (the “Released Party”) from any and all claims, rights, demands,
actions, obligations, liabilities, and causes of action of every kind and
character, known or unknown, mature or unmatured, which Employee may now have
or has ever had against the Released Party, whether based on tort, contract
(express or implied), or any applicable law (collectively, the “Released Claims”).  The
Released Claims shall also include, but not be limited to, claims for severance
pay, bonuses, stock options, shares, sick leave, vacation pay, life or health
insurance, or any other fringe benefit.

6.                                       For
the avoidance of doubt, Employee hereby affirms that this document constitutes
a compromise and notification of dismissal with respect to severance
compensation within the meaning of section 29 of the Severance Compensation Law
- 1963.

7.                                       Employee
agrees hereby to transfer his position with Vyyo in a complete and orderly
fashion, to make him self available to Vyyo in a reasonable manner, to fulfill
the duties instructed by Vyyo and to assist Vyyo to the best of his ability in
anything connected to transferring his position or completing his employment.

8.                                       Employee
agrees to return to Vyyo, no later than the Termination Date, all documents,
materials, tools, leased car’ and every other equipment that he used during his
employment, including his personal or laptop computer, all programs or plans in
his possession, in any media whatsoever, and which was obtained in connection
with his employment, where the foregoing is in as good condition as
received.  Employee further waives and
foregoes any claim for delay of return of any of such equipment.  Without derogating from the generality of the
foregoing, Employee will return to Vyyo all information, in any manner
whatsoever, and all computations received or 

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prepared in connection with his employment, and which were in the
possession of Vyyo, or in any other place, and Employee agrees that he has not
and will not make any copy of any such item whatsoever.

9.                                       Employee
undertakes not to cause other employees of Vyyo or Xtend, to leave Vyyo or
Xtend and not to solicit the employment of any of the employees of Vyyo or
Xtend with his new place of employment.

Employee further undertakes not to directly or indirectly solicit from
the clients of the Released Party any business directly or indirectly in
competition with the Released Party, or that involves activities in which any
entity comprising the Released Party was engaged or had already planned to be
engaged while Employee provided services to Vyyo.

10.                                 Unless
otherwise expressly stated herein, this Agreement cancels all agreements,
contracts or other documents between Employee and Vyyo, whether written or
oral, excluding Employee’s obligations of confidentiality and non-competition
with regard to Vyyo’s and Xtend`s intellectual property (including the
confidentiality and non-competition undertakings pursuant to the Employment
Agreement and the confidentiality agreement signed between the Employee and
Vyyo, which is attached here to as Appendix A), which shall remain
in full force and effect.

11.                                 The
parties to this Agreement agree and confirm that it is known to them that a
primary condition to Vyyo’s and Employee’s obligations is that each of its
terms, and the negotiations surrounding it, are confidential and shall not be disclosed
by them or anyone on their behalf, directly or indirectly, to any third party
whatsoever, including employees and consultants of Vyyo or its past employees
and consultants. Employee confirms that he knows that if he breaches his confidentiality
obligations, Vyyo will be free from its obligations under this Agreement.

12.                                 Employee
acknowledges that (a) he has had the opportunity to consult with whomever he
desires in regard to this Agreement; (b) he has read and understands the
Agreement and is fully aware of its legal effect; and (c) he is entering into
this Agreement freely and voluntarily, and based on he own judgment and not on
any representations or promises made by Vyyo, other than those contained in
this Agreement.

13.                                 Notwithstanding
the foregoing the confidentiality obligations set forth herein shall not apply
to information that is required to be disclosed pursuant to law or the
order of any governmental authority and either party may disclose such
information.

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  DATED: March 22 , 2007

  	
   

  	
  DATED: March 22, 2007

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Arik Leviz

  	
   

  	
  /s/ Gil Brosh

  
	
   

  	
   

  	
   

  
	
  Vyyo Ltd.

  	
   

  	
  Employee

  
	
   

  	
   

  	
   

  
	
  By:  

  	
  Arik Levi

  	
   

  	
   

  
				

 

 5Exhibit 10.40

AMENDED
AND RESTATED EMPLOYMENT AGREEMENT

This agreement is between Clayton Holdings,
Inc., the parent of Clayton Fixed Income Services Inc. (formerly The Murrayhill
Company) (“Company”) and Kevin J. Kanouff (“Employee”), and shall be effective
as of March 14, 2007 (the “Effective Date”). 
This agreement amends and restates in its entirety that certain Amended
and Restated Employment Agreement, dated May 24, 2004, between the Company and
Employee.

1.             Appointment. 
Employee shall serve in Company’s Denver, Colorado office as the
President of Clayton Fixed Income Services Inc. or in such position(s) as
Company’s Chief Executive Officer or Board of Directors (“the Board”) shall in
their sole discretion designate from time to time.  Employee agrees to be a loyal employee of the
Company, and shall at all times faithfully and to the best of Employee’s
abilities and experience, and in accordance with the standards and ethics of
the business in which Company is engaged, perform all duties that may be required
of Employee by this agreement, Company’s policies and procedures, and the
directives of Company’s Board and Chief Executive Officer.

2.             Compensation.

a.             Salary and Salary Review. 
Employee’s starting base salary shall be $275,000 per year, payable in
equal installments in accordance with Company’s standard payroll practice;
provided, however, that Company may, in its sole discretion, adjust Employee’s base salary, as and when Company deems appropriate

b.             Intentionally Omitted.

c.             Annual Bonus.  In the event that the Board of Directors determines,
in its sole discretion, that Employee’s performance during any
fiscal year warrants payment of a bonus, the Board or its designee may
authorize payment to Employee of an Annual Bonus.  In determining such Annual Bonus, the Board
or its designee will consider the actual and projected performance of the
Company, the Employee’s contribution to such performance, the compensation paid
to presidents of other companies in the Company’s industry that are similar in
size and profitability to the Company, and other factors that the Board shall
in its sole judgment consider to bear on the Bonus. Such Annual Bonus shall
payable in a lump sum after the conclusion of the fiscal year for which
the bonus is payable.

d.             Intentionally Omitted.

3.             Fringe benefits.

a.             Insurance.  Employee and Employee’s dependents shall be eligible
for coverage under the group insurance plans made available from time to time
to Company’s executive and management employees, beginning on the Effective
Date.  The premiums for the coverage of
Employee and Employee’s dependents under that plan shall be paid pursuant to
the formula in place for other executive and management employees covered by
Company’s group insurance plans, excluding any life insurance or disability
insurance which are specifically provided for in this agreement.

b.             Expenses. Subject to Company’s policies and
procedures for the reimbursement of business expenses incurred by its executive
and management employees, Company shall reimburse Employee for all reasonable
and necessary expenses incurred by Employee in connection with Employee’s
performance of Employee’s duties under this agreement provided that Company
shall in all cases have the right to require Employee to document, in a manner
satisfactory to Company, all expenses for which Employee seeks reimbursement
under this paragraph.

c.             Miscellaneous benefits. 
Employee shall receive all fringe benefits that the Company may from
time to time make available generally to its executive and management
employees.

4.             Paid Time Off (“PTO”).  Employee shall earn up to twenty-six (26) days of PTO
on an annual basis commencing January 1st of each calendar year. The PTO shall
accrue ratably at each Company payroll date. PTO does not accumulate from one
year to the next and must be taken annually. Notwithstanding the preceding
sentence, up to forty (40) hours of unused PTO may be carried over into the
following calendar year. Any accrued, unused PTO over the forty (40) hours will
be forfeited. If Employee’s employment terminates, Employee will be paid for
all accrued, unused PTO for the year of termination at Employee’s then current
base salary. PTO must be taken by Employee at such time or times as approved by
the Company.

5.             Conflicting Activities.   During the term of this agreement, Employee shall not
engage in any activity that conflicts with, appears to conflict with, or is
detrimental or appears to be detrimental to Company’s best interests, as
determined by Company in its sole discretion. It shall not be a violation
of this Agreement for the Employee to: (A) serve on corporate, civic or
charitable boards or committees; (B) deliver lectures, fulfill
speaking engagements or teach at educational institutions; and (C) manage
personal investments; all so long as such activities do not significantly
interfere with the performance of the Employee’s responsibilities as an
employee of the Company in accordance with this Agreement; and, in the case of
Employee’s management of his personal investments, so long as all such personal
investment management activities comply with the Company’s personal trading
policies and, otherwise, with applicable law.

6.             Intentionally Omitted.

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7.             Source of Payments. 
All payments to be made to Employee under this agreement shall be paid
from Company’s general funds.  No special
or separate fund shall be established and no other segregation of assets shall
be made to assure payment.  Neither this
agreement nor any action taken hereunder shall be construed to create a trust of
any kind.  To the extent that any person
has any right to receive payments from Company under this agreement, that right
shall be no greater that the right of any unsecured creditor of Company.

8.             Relationship Between this
Agreement and Other Company Publications. 
In
the event of any conflict between any term of this agreement and any Company
policy, procedure, guideline or other publication applicable to employees of
Company generally, the terms of this agreement shall control.

9.             Term and Termination.

a.             Term.  Either the Company or Employee may terminate Employee’s
employment and this Agreement at any time in accordance with this paragraph 9,
for any or no reason, by providing written notice to the other. Upon the
effective date of such termination, Employee’s employment hereunder shall
terminate for all purposes. Except as expressly provided herein or as may be
provided under any employee benefit plan, Employee shall not be entitled to any
compensation, bonus, termination pay, severance, notice pay, perquisites, or
benefits except those required to be paid under federal or state laws or
regulations.

b.             Termination by Consent.  This agreement may be terminated at any time by the
parties’ mutual agreement, expressed in writing.

c.             Termination by Employee.

i.             Employee may terminate this agreement upon thirty days’
prior written notice.

ii.            In the event of a material reduction
of Employee’s duties or authority, a failure to pay or provide Employee’s
compensation or benefits payable under this agreement, other than as permitted
by this agreement, or any other material breach by the Company of this
Agreement, Employee shall have the right to terminate Employee’s employment and
such termination shall be treated in all respects as if it had been a
termination of employment by Company without cause pursuant to Section 9.d.
below.

d.             Termination by Company Without
Cause.  Company may in its sole discretion
terminate this agreement at any time without cause.  If Company does so (or if Employee terminates
his employment pursuant to subparagraph 9.c.ii above), following Employee’s
execution of a legal release in a form satisfactory to Company in its sole
discretion and drafted so as to ensure a final, complete and enforceable
release of all claims that Employee has or may have against Company relating to
or arising in any way from Employee’s employment with Company and/or the
termination thereof, 

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and complete and continuing confidentiality of Company’s
proprietary information and trade secrets, the circumstances of Employee’s
separation from Company, and compensation received by Employee in connection
with that separation, Company shall pay Employee severance compensation equal
to 1/12 of Employee’s base salary under paragraph 2.a., above, payable monthly
for the following 12 months, less legally required withholdings.  If Company terminates
this agreement at any time without cause under this subparagraph (or if
Employee terminates his employment pursuant to subparagraph 9.c.ii. above),
Company pays Employee all salary and vacation compensation earned and unpaid as
of the termination date, and offers to pay Employee severance compensation in
the amount and on the terms specified above, Company’s acts in doing so shall
be in complete accord and satisfaction of any claim that Employee has or may at
any time have for compensation or payments of any kind from Company arising
from or relating in whole or part to Employee’s employment with Company and/or
this agreement.  Because this paragraph
is intended to provide compensation to enable Employee to support himself in
the event of Employee’s loss of employment under certain circumstances
specified herein, Employee’s right to severance pay under this subparagraph
shall not be triggered by a Change in Control (defined below), unless such
Change in Control results in the Employee’s loss of Employment within nine
months following the Change in Control event. 
A Change in Control shall be deemed to have occurred when any
individual, entity, or group (within the meaning of Section 13(d)(3) or
14(d)(2) of the Securities Exchange Act of 1934, as amended), other than TMHC
Holdings, Inc., TA Associates, Inc. or any investment funds affiliated with TA
Associates, Inc., acquires beneficial ownership of 50% or more of the combined
voting power of the then-outstanding voting securities of the Company entitled
to vote generally in the election of directors.

e.             Termination by Company for
Cause.  Company may terminate this agreement
effective immediately, with Company’s only obligation being the payment of
salary and accrued, unused vacation compensation earned as of the date of
termination and without liability for severance compensation of any kind,
in the following situations: (i) any willful breach or violation by
Employee of this agreement, or any written policy, procedure or guideline of
the Company if Employee fails to cure such violation within 30 days of
receiving written notice of such violation; (ii) Employee engages in
any of the following forms of misconduct: illegal use of any controlled
substance; discriminatory or harassing behavior, whether or not illegal under
federal, state or local law; falsifying any financial statements or publicly
disclosed documents; or making any false or misleading statement relating to
Employee’s employment by Company; (iii) Employee fails to cure, within 30 days
of receiving written notice, any material injury to the economic or ethical
welfare of Company caused by Employee’s malfeasance, misfeasance, misconduct or
inattention to Employee’s duties and responsibilities under this agreement; (iv) the
engaging by Employee in conduct involving moral turpitude that causes
demonstrable injury, monetarily or otherwise, to the Company, including, but
not limited to, misappropriation or conversion of assets of the Company (other
than immaterial assets), theft or misuse of Company funds, or theft or material
misuse of Company property; (v) the charging of Employee with, or
conviction of or entry of a plea of nolo contendere
to, a felony, or to a misdemeanor involving dishonesty or moral turpitude; or
(vi) a material breach by Employee of this

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agreement by engaging in action in
violation of the restrictive covenants in this agreement; (vii) Employee’s
misappropriation of a material business opportunity of the Company without
Company’s prior written approval (which may be withheld in Company’s sole
discretion), including, without limitation, securing or attempting to secure
personal profit or other benefit in connection with any transaction entered
into on behalf of Company. No act or failure to act by the Employee shall be
deemed “willful” if done, or omitted to be done, by him in good faith and with
the reasonable belief that his action or omission was in the best interest of
the Company.

i.             If Employee is terminated for cause under this
agreement, Company, in addition to the remedies available to it under this
agreement, may also pursue any other legal remedies available to Company as a
result of Employee’s actions.

f.              Termination
of Benefits.  Employee’s eligibility to participate in
Company’s benefit and compensation plans shall terminate as of the date of
Employee’s termination of employment for any reason, unless specifically
provided otherwise under the terms of a particular benefit or compensation plan
or unless otherwise required by law.

g.             Permanent
Disability.    If Employee is unable to
engage in the activities required by Employee’s job by reason of any medically
determined physical or mental impairment  which has
lasted or can be expected to last for a continuous period of not less than six
(6) consecutive months, the Company or Employee may terminate Employee’s
employment on written notice thereof. Employee shall receive or commence
receiving, as soon as practicable, accrued but unpaid base salary and such
payments under applicable plans or programs to which he is entitled pursuant to
the terms of such plans or programs.

h.             Death.    The
Employee’s employment shall terminate automatically upon the Employee’s death
during the Employment Period.  In the
event of Employee’s death during the term of this agreement, Employee’s estate
or designated beneficiaries shall receive or commence receiving, as soon as
practicable, accrued but unpaid base salary and such payments under
applicable plans or programs to which Employee’s estate or designated
beneficiaries are entitled pursuant to the terms of such plans or programs.

10.                               Protection of Trade
Secrets and Confidential Information.

a.             Definition of “Confidential
Information.” “Confidential Information” means all nonpublic
information  (whether in paper or
electronic form, or contained in Employee’s memory, or otherwise stored or
recorded) relating to or arising from Company’s business, including, without
limitation, trade secrets used, developed or acquired by Company in connection
with its business.  Without limiting the
generality of the foregoing, “Confidential Information” shall specifically
include all information concerning the manner and details of Company’s
operation, organization and management; financial information and/or documents
and nonpublic policies, 

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procedures and other
printed, written or electronic material generated or used in connection with
Company’s business; Company’s business plans and strategies, the identities of
Company’s customers and the specific individual customer representatives with
whom Company works; the details of Company’s relationship with such customers
and customer representatives; the identities of distributors, contractors and
vendors utilized in Company’s business; the details of Company’s relationships
with such distributors, contractors and vendors; the nature of fees and charges
made to Company’s customers; nonpublic forms, contracts and other documents
used in Company’s business; all information concerning Company’s employees, agents
and contractors, including without limitation such persons’ compensation,
benefits, skills, abilities, experience, knowledge and shortcomings, if any;
and all other information concerning Company’s concepts, prospects, customers,
employees, agents, contractors, earnings, products, services, equipment,
systems, and/or prospective and executed contracts and other business
arrangements.  “Confidential Information”
does not include information that is in the public domain through no wrongful
act on the part of Employee.

b.             Employee’s Use of Confidential
Information.  Except in
connection with and in furtherance of Employee’s work on the Company’s behalf,
Employee shall not, without Company’s prior written consent, at any time,
directly or indirectly: (i) use any Confidential Information for any purpose;
or (ii) disclose or otherwise communicate any Confidential Information to any
person or entity; or (iii) accept or participate in any employment, consulting
engagement or other business opportunity that inevitably will result in the
disclosure or use of any Confidential Information.

c.             Acknowledgments.   Employee acknowledges that during his
employment with Company, Employee has had and will continue to have access to
Confidential Information, all of which was made accessible to Employee only in
strict confidence; that unauthorized disclosure of Confidential Information
will damage Company’s business; that Confidential Information would be
susceptible to immediate competitive application by a competitor of Company’s;
that Company’s business is substantially dependent on access to and the
continuing secrecy of Confidential Information; that Confidential Information
is novel, unique to Company and known only to Employee, Company and certain key
employees and contractors of Company; that Company shall at all times retain
ownership and control of all Confidential Information; and that the
restrictions contained in this agreement are reasonable and necessary for the
protection of Company’s legitimate business interests.

d.             Records Containing Confidential
Information.  “Confidential
Records” means all documents and other records, whether in paper, electronic or
other form, that contain or reflect any Confidential Information.  All Confidential Records prepared by or provided
to Employee are and shall remain Company property.  Except in connection with and in furtherance
of Employee’s work on Company’s behalf or with Company’s prior written consent,
Employee shall not, at any time, directly or indirectly: (i) copy or use any
Confidential Record for any purpose; or (ii) show, give, sell, disclose 

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or otherwise communicate
any Confidential Record or the contents of any Confidential Record to any
person or entity.  Upon the termination
of Employee’s employment with Company or at any time upon Company’s request,
Employee shall immediately deliver to Company (and shall not keep in Employee’s
possession or deliver to any other person or entity) all Confidential Records
and all other Company property in Employee’s possession or control.  This agreement shall not prohibit Employee
from complying with any subpoena or court order, provided that Employee shall
at the earliest practicable date provide a copy of the subpoena or court order
to Company’s Chief Executive Officer, it being the parties’ intention to give
Company a fair opportunity to take appropriate steps to prevent the unnecessary
and/or improper use or disclosure of Confidential Information and Confidential
Records, as determined by Company in its sole discretion.

e.             Third-Parties’ Confidential
Information.  Employee
acknowledges that, during his employment, Company has received from third
parties confidential or proprietary information, and that Company must maintain
the confidentiality of such information and use it only for authorized
purposes.  Employee shall not use or
disclose any such information without prior written authorization from Company
or the third party to whom the information belongs.

11.          Unfair Competition.

a.             Covenants.  During Employee’s employment with Company
(whether pursuant to this agreement or otherwise) and for a two-year period
after the conclusion of that employment for any reason (the “Noncompetition
Period”), Employee shall not, directly or indirectly, as an officer, director,
employee, consultant, owner, shareholder, adviser, joint venturer, or
otherwise, compete with Clayton Fixed Income Services Inc. (“CFIS”) anywhere in
the world in respect of: (i) (a) the tracking, monitoring, reporting on, and/or
advising on the performance of mortgage- and/or asset-backed securities, and/or
the servicing thereof, for third parties on a fee-for-service basis; and/or (b)
the accounting, reconciliation and/or resolving of discrepancies between
servicers, master servicers, trustees, and/or other transaction fiduciaries, or
their reports; (c) the provision of securities or other asset valuation or “mark
to market” services for owners of investment portfolios on a fee for service
basis; and (d) accounting and reconciliation of all cash-flow-related aspects
of asset-backed and/or mortgage-backed securitizations; or (ii) any other line
of business in which CFIS was engaged at any time during Employee’s employment
with Company; or (iii) any other line of business into which CFIS, during
Employee’s employment with Company, formed an intention to enter during the
Noncompetition Period, and which Company’s Board has disclosed to Employee in
writing within ten (10) days following the termination of Employee’s employment
with Company.  This covenant shall not
prohibit Employee from owning less than two percent of the securities of any
competitor of CFIS, if such securities are publicly traded on a nationally
recognized stock exchange or over-the-counter market.

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b.             Acknowledgments.  Employee acknowledges that the foregoing geographic
restriction on competition is fair and reasonable, given the nature and
geographic scope of the business operations of CFIS and the nature of Employee’s
position with Company.  Employee also
acknowledges that while employed by Company, Employee will have access to
information that would be valuable or useful to the competitors of CFIS, and
therefore acknowledges that the foregoing restrictions on Employee’s future
employment and business activities are fair and reasonable.  Employee acknowledges and is prepared for the
possibility that Employee’s standard of living may be reduced during the
Noncompetition Period, and assumes and accepts any risk associated with that
possibility.

c.             Acknowledgments
of Law.  Employee acknowledges
the following provisions of Colorado law, set forth in Colorado Revised
Statutes § 8-2-113(2):

Any covenant not
to compete which restricts the right of any person to receive compensation for
performance of skilled or unskilled labor for any employer shall be void, but
this subsection (2) shall not apply to:

...

(b)          Any contract for the protection of
trade secrets;

...

(d)          Executive and management personnel and
officers and employees who constitute professional staff to executive and
management personnel.

Employee acknowledges
that this agreement is a contract for the protection of trade secrets within
the meaning of § 8-2-113(2)(b) and is intended to protect the Confidential
Information and Confidential Records identified above and that Employee is an
executive or manager, or professional staff to an executive or manager, within
the meaning of § 8-2-113(2)(d).

12.          Non-Solicitation.  During Employee’s employment with Company and for a
two-year period following the conclusion of that employment for any reason,
Employee shall not without Company’s prior written consent, directly or
indirectly:

(a)            cause or attempt to cause any
employee, agent or contractor of  CFIS to
terminate his or her employment, agency or contractor relationship with CFIS;
or interfere or attempt to interfere with the relationship between CFIS and any
employee, agent or contractor; or hire or attempt to hire any employee, agent
or contractor of  CFIS; or conduct
business of any kind with any CFIS employee, agent or contractor.

(b)           solicit business from or conduct
business with any customer or client served by CFIS at any point during
Employee’s employment with Company; or solicit business from or conduct any
business with any person or entity that was, during Employee’s employment with
Company, solicited or identified as a business prospect 

 8
 

by Employee or any other CFIS employee, agent or consultant;
or interfere or attempt to interfere with any transaction, agreement,
prospective agreement, business opportunity or business relationship in which
CFIS was involved at any point during Employee’s employment with Company.

13.          Indemnification.

(a)           To the fullest extent permitted by
the indemnification provisions of the articles of incorporation and bylaws of
the Company in effect as of the date of this agreement and the indemnification
provisions of the corporation statute of the jurisdiction of the Company’s
incorporation in effect from time to time (collectively, the “Indemnification
Provisions”), and in each case subject to the conditions hereof, the Company
shall (i) indemnify Employee, as an officer (and, if applicable, a
director) of the Company or a subsidiary of the Company or a trustee or
fiduciary of an employee benefit plan of the Company or a subsidiary of the
Company, or, if Employee shall be serving in such capacity at the Company’s
written request, as a director or officer of any other corporation (other than
a subsidiary of the Company) or as a trustee or fiduciary of an employee
benefit plan not sponsored by the Company or a subsidiary of the Company, against
all liabilities and reasonable expenses that may be incurred by Employee in any
threatened, pending, or completed action, suit or proceeding, whether civil,
criminal or administrative, or investigative and whether formal or informal,
because Employee is or was a director or officer of the Company, a director or
officer of such other corporation or a trustee or fiduciary of such employee
benefit plan, and against which Employee may be indemnified by the Company, and
(ii) pay for or reimburse the reasonable expenses incurred by Employee in
the defense of any proceeding to which Employee is a party because Employee is
or was a director or officer of the Company, a director or officer of such
other corporation or a trustee or fiduciary of such employee benefit plan.  Company shall have the right to defend
Employee in any such action, suit or proceeding which may give rise to Company’s
indemnification or expense reimbursement obligations hereunder.

(b)            Indemnification
Limitations and Procedures.

(i)            Such indemnification is subject to:

(A)         the indemnifying party promptly
receiving written notice that a claim or liability has been asserted or
threatened (“Notice of Claim”); and

(B)          the indemnified party providing
reasonable cooperation and assistance in the defense or settlement of a claim;
and

(C)          the indemnifying party being afforded
the opportunity to have the sole control over the defense or settlement of such
claim or liability.

(ii)          Unless within ten days after receiving
the Notice of Claim, the indemnifying party notifies in writing the indemnified
party of its intent to defend against such claim or liability, the indemnified
party may defend, settle and/or 

 9
 

compromise any such claim or liability, and be
indemnified for all losses resulting from such defense, settlement and/or
compromise.  Any indemnified party also
may participate in such defense at its own cost and expense.

(iii)         Such indemnification shall continue as
to the Employee during the Employment Period and for ten years from the Date of
Termination with respect to acts or omissions which occurred prior to his
cessation of employment with the Company. 
The Company shall advance to the Employee all costs and expenses
incurred by him in connection with any proceeding covered by this provision within
20 calendar days after receipt by the Company of a written request for such
advance.  Such request shall include an
undertaking by the Employee to repay the amount of such advance if it shall
ultimately be determined that he is not entitled to be indemnified against such
costs and expenses.

14.          Successors  and
Assigns. 
Company, its successors and assigns may in their sole discretion assign
this agreement to any person or entity, with or without Employee’s
consent.  This agreement thereafter shall
bind, and inure to the benefit of, Company’s successor or assign.  Employee shall not assign either this
agreement or any right or obligation arising thereunder.

15.          Disputes.  Any action arising from or relating any way to this
agreement, or otherwise arising from or relating to Employee’s employment with
Company, shall be tried only in the state or federal courts situated in Denver,
Colorado.  The parties consent to
jurisdiction and venue in those courts to the greatest extent possible under
law.

16.          Miscellaneous.

a.             Independent Covenants.    Employee acknowledges that on July 7, 2003
he signed a Agreement for the Protection of Trade Secrets (“Trade Secrets
Agreement”), that the terms and conditions of that Agreement, with the
exception of the first “wherefore” clause, are still in full force and effect
and are not integrated with or superseded by this Agreement, and that
paragraphs 10, 11 and 12 of this Agreement supplement rather than supersede the
provisions of the Trade Secrets Agreement. 
To the extent that any conflict exists between the Trade Secret
Agreement and the above paragraphs 10 11, and/or 12, the provision(s) providing
for the greatest protection for the Company shall control.  Employee’s covenants in paragraphs 10, 11,
and 12 of this agreement and the Trade Secrets Agreement are independent
covenants.  The existence of any claim(s)
by Employee against Company under this agreement or otherwise shall not excuse
Employee’s breach of any covenant contained in paragraphs 10, 11, and/or
12.  If Employee’s employment with
Company expires or is terminated for any reason, this agreement shall continue
in full force and effect as necessary or appropriate to enforce Employee’s
obligations under paragraphs 10, 11, and/or 12.

b.             Injunctive Relief and Other Remedies.  Employee acknowledges that any breach or
threatened breach of paragraphs 10, 11, and/or 12 of this agreement 

 10
 

would cause irreparable injury to
Company, and that an award of monetary damages to Company for such breach or
threatened breach would be an inadequate remedy. Consequently, in addition to
any other rights or remedies Company may have at law or in equity, Company
shall be entitled to obtain injunctive relief, to prevent or restrain any such
breach or threatened breach or otherwise to specifically enforce the provisions
of paragraphs 10, 11, and/or 12.

c.             Governing Law.  This agreement,
and all other disputes or issues arising from or relating in any way to Company’s
relationship with Employee, shall be governed by the internal laws of the State
of Colorado, irrespective of the choice of law rules of any jurisdiction.

d.             Venue and
Jurisdiction.  Any action or proceedings seeking to enforce
or interpret any provision of this agreement may be brought against either
party in the state courts located in the city and county of Denver, Colorado,
or in the federal courts there located provided such federal court has subject
matter jurisdiction over such action or proceedings.  Each party consents to the venue and
jurisdiction of such courts (and of appropriate appellate courts) in any such
action or proceeding, waives any objection to venue laid therein and waives any
claim or defense it may have that any such proceedings in any such court
constitute an inconvenient forum, and agrees that venue shall not be proper in
any other court.

e.             Withholdings.  All payments made or payable under
this agreement shall be subject to customary or legally required withholdings
and any setoffs necessary to satisfy any debt owed by Employee to Company.

f.              Severability. If any court of competent jurisdiction declares any
provision of this agreement invalid or unenforceable, the remainder of the
agreement shall remain fully enforceable. 
To the extent that any court concludes that any provision of this
agreement is void or voidable, the court shall reform such provision(s) to
render the provision(s) enforceable, but only to the extent absolutely
necessary to render the provision(s) enforceable.

g.             Integration.  Except as provided in paragraph
16.a. above, this agreement constitutes the entire agreement of the parties and
a complete merger of prior negotiations and agreements and, except as provided
in the preceding subparagraph, shall not be modified by word or deed, except in
a writing signed by Employee and Company’s Chief Executive Officer and approved
by the Board of Directors.

h.             Waiver.  No provision of
this agreement shall be deemed waived, nor shall there be an estoppel against
the enforcement of any such provision, except by a writing signed by the party
charged with the waiver or estoppel.  No waiver shall be deemed
continuing unless specifically stated therein, and the written waiver shall
operate only as to the specific term or condition waived, and not for the
future or as to any act other than that specifically waived.

 11
 

i.              Construction.  Headings in
this agreement are for convenience only and shall not control the meaning of
this agreement.  Whenever applicable,
masculine and neutral pronouns shall equally apply to the feminine genders; the
singular shall include the plural and the plural shall include the
singular.  The parties have reviewed and
understand this agreement, and each has had a full opportunity to negotiate the
agreement’s terms and to consult with counsel of their own choosing.  Therefore, the parties expressly waive all
applicable common law and statutory rules of construction that any provision of
this agreement should be construed against the agreement’s drafter, and agree
that this agreement and all amendments thereto shall be construed as a whole,
according to the fair meaning of the language used.

j.              Counterparts. 
This agreement may be executed in one or more counterparts, each of
which shall be deemed to be an original of this agreement and all of which,
when taken together, shall be deemed to constitute one and the same agreement.

[SIGNATURES
FOLLOW]

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  Employee:

  	
   

  	
   

  	
  Company:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/ KEVIN J. KANOUFF

  	
   

  	
  By:

  	
  /s/ FREDERICK C. HERBST

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Print Name:

  	
   KEVIN J.
  KANOUFF

  	
   

  	
  Print Name:

  	
   FREDERICK C.
  HERBST

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
   MARCH 23,
  2007

  	
   

  	
  As its:

  	
   CHIEF
  FINANCIAL OFFICER

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Date:

  	
   MARCH 23,
  2007

  
												

 

 13

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