Document:

Exhibit 10.1

EMPLOYMENT
AGREEMENT

This Employment Agreement (this “Agreement”)
is made and entered into as of May 1, 2006 (the “Effective Date”),
by and between Clayton Holdings, Inc., a Delaware corporation with its
principal place of business located at 2 Corporate Drive, Shelton, Connecticut
06484 (the “Company”), and David Keith Johnson (“Employee”). The
Company and Employee are together hereinafter referred to as the “Parties”.

RECITALS:

WHEREAS, the Company desires to employ
Employee and Employee desires to accept this offer of employment; and

WHEREAS, the Company and Employee have
determined that the terms and conditions of this Agreement are reasonable and
in their mutual best interests and accordingly desire to enter into this
Agreement in order to provide for the terms and conditions upon which Employee
shall be employed by the Company.

NOW THEREFORE, in consideration of the
foregoing and the respective covenants, agreements and representations and
warranties set forth herein, the parties to this Agreement, intending to be
legally bound, agree as follows:

1.                                      EMPLOYMENT

1.01                           Position;
Duties

Employee will serve in the position of
President and Chief Operating Officer, reporting to the Chief Executive Officer
or such other person the Company may direct from time to time. In this
position, Employee shall faithfully and competently perform such services and
duties in connection with the business, affairs and operations of the Company
as may be assigned or delegated to the Employee from time to time by or under
the authority of the Board of Directors or the Chief Executive Officer. In
addition, Employee may be required from time to time to serve in additional
roles and capacities on behalf of the Company or for any entity that directly
or indirectly controls, is controlled by, or is under common control with, the
Company (each an “Affiliate”), and for which Employee shall not be
entitled to any additional compensation or benefits.

1.02         Attention
and Effort

During the period of his employment with
the Company, Employee will devote his full business time, attention and effort
to the Company’s 

 

business, will skillfully serve the
Company’s interests during the term of this Agreement in a professional,
ethical and businesslike manner and shall not, during such period, be engaged
in any other business activity, whether or not such business activity is
pursued for gain, profit or other pecuniary or non-pecuniary advantage,
without the prior written and informed consent of the Company.

1.03         Conflict of Interest

Employee shall not accept, directly or
indirectly, any compensation, remuneration or other thing of value from any
individual or entity which has or may have the prospect of a business
relationship with the Company, other than a gift of immaterial value, without
the prior written and informed consent of the Company.

1.04         Observance of Company Policies

Employee acknowledges and agrees that he
will observe all of the rules and policies of the Company, including but
not limited to the Company’s Code of Business Conduct and Ethics.

1.05                           Best Interests of the Company

Employee agrees that he shall not
participate in any activity that is detrimental to the best interests of the
Company, interferes with the performance of his duties hereunder or otherwise
constitutes a conflict of interest.

1.06                           Employee Representation

Employee affirms and represents that as
of the commencement of his employment with the Company, he will be under no
obligation to any former employer or other third party which is in any way
inconsistent with, or which imposes any restriction upon, Employee’s acceptance
of employment hereunder with the Company, the employment of Employee by the
Company, or Employee’s undertakings under this Agreement.

1.07
        Location

During the term of this Agreement, Employee
shall primarily perform the services he is required to perform pursuant to this
Agreement at the Company’s offices located in Shelton, Connecticut; provided,
however, that the Company will from time to time require Employee to
travel temporarily to other locations in connection with the Company’s
business.

 

1.08         Term

The term of employment hereunder shall
commence on May 8, 2006 or such other date mutually agreed to by the
Company and Employee (the “Start Date”) and continue on the terms and
conditions contained herein until terminated by either the Company or Employee
in accordance with Section 3 of this Agreement (the “Term”).

2.                                      COMPENSATION
AND BENEFITS

2.01                           Base
Salary

In consideration for his performance of
duties and services on behalf of the Company, Employee shall receive an annual
base salary of Three Hundred Seventy-Five Thousand Dollars ($375,000.00), less
applicable taxes and withholdings, payable to Employee in installments in
accordance with the normal payroll practices of the Company. Employee’s base
Salary shall be reviewed annually and shall be subject to annual increases, if
any, as determined by the Company.

2.02                           Incentive Compensation

(a)           In addition to Base Salary, Employee
shall be eligible to receive an annual incentive bonus. The Company, at its
discretion, shall determine the exact amount of such bonus based on a
combination of Company and Employee performance goals, criteria and targets
established by the Company.  For 2006,
Employee’s bonus target shall be 100% of his base salary and shall be pro rated
based on the date of Employee’s start of employment with the Company.

(b)           The
bonus provided for in this Section 2.02, if any, shall be paid to Employee
at such time as the Company pays bonuses to other employees at Employee’s level,
provided Employee must be employed by the Company on such date in order to be
eligible to receive payment for such bonus.

2.03                           Stock Options

The
Company shall grant Employee 100,000 stock options in the Company’s common
stock under the Clayton Holdings, Inc. 2006 Stock Option and Incentive
Plan (the “Plan”). The grant date will be the last business day of the calendar
month in which Employee commences employment. The exercise price of the options
will be the closing price of a share of common stock of Clayton Holdings, Inc.
on the last business day of the calendar month in which Employee commences
employment. The stock options will vest 25% on the first anniversary of the
grant date and 

 

2.08333%
per month thereafter. The specific terms of the stock option grant will be
governed by the terms of the Plan and the Incentive Stock Option Agreement
between Employee and the Company.

2.04         Welfare and Benefit Programs

Subject to and
in accordance with the terms and conditions of the applicable plan, program or
policy, Employee shall be eligible to participate in all welfare and benefit
programs made available to employees of the Company. The foregoing, however,
shall not be construed to require the Company to establish any such plans or to
in any way prevent, hinder or limit the Company’s discretion and authority to
modify, amend or terminate any such plans once established, and no such action
or failure to act on the Company’s part shall affect this Agreement.

(a)           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.

(b)           Employer Insurance Plans. Employee
shall be entitled to participate in any Company established insurance plan(s) on
the same terms and conditions as other employees of the Company and in a manner
consistent with and in accordance with the terms and provisions of said plan(s) and
the Company’s policies.

(c)           Employer Retirement Plans.
Employee shall be entitled to participate in any Company established pension or
retirement plan(s) on the same terms and conditions as other employees of
the Company and in a manner consistent with and in accordance with the terms
and conditions of said plan(s) and the Company’s policies.

2.05                           Business Expenses

It is understood that Employee may from
time to time incur reasonable expenses in connection with the performance of
services hereunder. The Company shall reimburse Employee, according to
procedures applicable to employees of the Company generally, for all such
reasonable expenses incurred by Employee in accordance with Company policies
upon Employee’s presentation of an itemized written accounting thereof, 

 

together with such vouchers and other
verifications, as the Company may reasonably require.

2.06                           Reimbursement for Costs of Relocation

After commencement of Employee’s
employment with the Company, Employee shall be entitled to reimbursement (upon
presentation of receipts and/or other appropriate documentation) from the
Company, up to an amount not to exceed $150,000, for all reasonable and actual
costs and expenses incurred by Employee in relocating himself and his family to
Connecticut, including: two (2) home finding trips to Connecticut;
packaging and shipment of household goods, storage if necessary; shipment of up
to three (3) automobiles; airfare for family and pet; closing costs and
commissions on sale of Employee’s existing residence plus closing and
inspection costs on Connecticut home; reasonable temporary living expenses for
Employee and his family in Connecticut for a period not to exceed three (3) months.
Employee shall use reasonable efforts to limit the aggregate relocation
expenses to $150,000, but in the event Employee’s aggregate relocation expenses
exceed $150,000, the Company and Employee may mutually agree that the
additional amounts shall be reimbursed by the Company. The Company agrees that
all relocation payments will be “grossed-up” for applicable taxes. In the event
that Employee voluntarily resigns or the Company terminates employment for
Cause (as that term is defined below), in either case within twelve (12) months
of the Start Date, Employee must repay to the Company these reimbursed costs
and expenses. The Company agrees to engage the services of a relocation
services company to assist Employee in the administration of his relocation.

2.07         Taxes and Withholdings

All payments and benefits provided to
Employee hereunder shall be reported as taxable income to the extent required
by law and shall be subject to applicable federal, state and local income and
payroll withholding requirements.

3.                                      TERMINATION
OF EMPLOYMENT RELATIONSHIP

3.01                           At-Will Employment

Either the Company or Employee may
terminate Employee’s employment and this Agreement at any time, 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.

3.02                           Termination
Events

Employee’s employment
with the Company shall automatically terminate and the Term shall thereupon
terminate:

(a)           Upon Employee’s death;

(b)                                 Upon
the Company’s written notice to Employee (or his guardian if applicable) of the
termination of his employment due to Incapacity (as that term is defined
below);

(c)                                  Upon
the Company’s written notice to Employee of the termination of Employee’s
employment for Cause;

(d)                                 Upon
the Company’s written notice to Employee of the termination of Employee’s
employment without Cause;

(e)                                  Upon
not less than thirty (30) days’ written notice from Employee to the Company of
Employee’s voluntary resignation; provided,
however, that if it is then or thereafter determined that, on the date
of such termination, the Company could have terminated such employment for
Cause, such termination shall be treated as a termination for Cause; or

(f)                                    Upon
not less than thirty (30) days’ written notice from Employee to the Company of
Employee’s voluntary resignation for Good Reason (as that term is defined
below) (which resignation must be within one hundred twenty (120) days of the
occurrence of the event or events giving rise to such Good Reason), by written
notice to the Chief Executive Officer and the Board of Directors setting forth
such Good Reason and giving the Company a reasonable period of time, not less
than ten (10) business days, to eliminate and cure such Good Reason. For
purposes of this Agreement, “Good Reason” shall mean the occurrence of any of
the following events: (i) a substantial adverse change in the nature or
scope of Executive’s responsibilities, authorities, powers, functions or duties
under this Agreement which results in the Employee serving in a capacity which
does not include the position of either President or Chief Operating Officer or
(ii) a reduction of 20% or more in 

 

Employee’s annual Base Salary (other than in
connection with an across-the-board reduction affecting all, or substantially
all, of the Company’s executive officers).

3.03         Cause

Wherever reference is made in this Agreement to
termination of Employee’s employment with or without Cause, “Cause”
shall mean the termination of Employee’s employment with the Company due to the
occurrence of one or more of the following events: (a) the conviction of
Employee, or the entry by Employee of a plea of guilty or nolo  contendere
to any felony under the laws of the United States or any state or political
subdivision thereof or a misdemeanor involving moral turpitude; (b) any
act, whether or not involving the Company or any Affiliate or their respective
businesses, of fraud or willful misconduct; (c) any act constituting
breach of fiduciary duty relating to the Company or an Affiliate or the
performance of Employee’s duties; (d) any material act of dishonesty or
illegality; (e) the commission of an act involving a violation of a
material procedure or policy of the Company; (f) Employee’s willful
failure to follow a reasonable and lawful written directive within the scope of
Employee’s duties (which shall be capable of being performed by Employee with
reasonable effort); (g) Employee’s deliberate and continued failure to
perform the duties and responsibilities assigned or delegated to Employee,
which such failure continues for fourteen (14) days after written notice has
been given to Employee by the Company; or (h) a breach by Employee of any
of Employee’s material obligations under this Agreement or the Employee
Non-Disclosure Agreement.

3.04                           Incapacity

For purposes of this
Agreement, “Incapacity” shall mean: 
Employee’s incapacitation due to illness, accident or other physical or
mental disability which renders Employee substantially unable to perform his
normal duties hereunder for a period aggregating at least one hundred eighty
(180) days during any period of three hundred sixty-five (365) consecutive
days, and no reasonable accommodation being available which would permit
Employee to perform the essential functions of Employee’s position.

3.05         Effect of Termination of Employment

Notwithstanding anything to the contrary
contained herein, to the extent contemplated by this Agreement, the respective
rights and obligations of the parties shall survive any termination of Employee’s
employment 

 

hereunder and shall remain in full force
and effect to the extent necessary to preserve such rights and obligations.

4                                         RIGHTS
UPON TERMINATION OF EMPLOYMENT

The provisions of this Section 4 shall
exclusively govern Employee’s rights upon termination of employment with the
Company.

4.01                           Accrued
Rights

Upon termination of
Employee’s employment and the Term of this Agreement for any reason, the
Company shall pay to Employee (or, in the event of Employee’s death, his
surviving spouse, if any, or his estate) for: (a) any accrued but unused
PTO; (b) any base salary earned but unpaid for services rendered to the
Company on or prior to the date of termination; and (c) unreimbursed
business expenses (collectively, the “Accrued Rights”). The Accrued
Rights amounts will be paid to Employee in a lump sum within fifteen (15) days
after the date of termination.

4.02                           Rights
Upon Termination Without Cause of Termination for Good Reason

In the event
Employee’s employment is terminated by the Company without Cause pursuant to Section 3.02(d) or
terminated by the Employee for Good Reason pursuant to Section 3.02(f),
the Company will: (a) pay to Employee, within fifteen (15) days after the
termination of his employment, in one lump-sum payment, the Accrued Rights; (b) continue
to pay Employee’s base salary in effect on the date of termination for a period
of twelve (12) months (the “Salary Continuation Period”); and (c) continue
Employee’s employee benefits (i.e., medical and dental insurance) during the
Salary Continuation Period (collectively, the “Separation Benefit”). The
Salary Continuation Period shall run concurrent with the COBRA period.

4.03                           Rights
Upon Termination Following Change of Control

In the event
Employee’s employment with the Company is terminated by the Company pursuant to
Section 3.02(d) within eighteen (18) months after the consummation of
a Change of Control (as that term is defined below), the Company will pay to
Employee, within fifteen (15) days after the termination of his employment, in
one lump-sum payment: (a) the Accrued Rights; and (b) the sum of (i) twenty-four
(24) months of base salary and (ii) two hundred percent (200%) of Employee’s
target incentive 

 

bonus for the year
in which the termination of employment occurs (the “CIC Benefit”).

For purposes of
this Agreement, a “Change of Control” shall mean the occurrence of any
of the following:

(a)  The consummation of a merger or consolidation
of the Company with or into an entity unaffiliated with the Company prior to
the effective date of such merger or consolidation or any other corporate
reorganization, if more than fifty percent (50%) of the combined voting power
of the continuing or surviving entity’s securities outstanding immediately
after such merger, consolidation or other reorganization is owned by a person
who in the aggregate owned less than twenty-five percent (25%) of the Company’s
combined voting power represented by the outstanding securities of the Company
immediately prior to such merger, consolidation or other reorganization;

(b)  The sale, transfer or other disposition of all
or substantially all of the assets of the Company;

(c)  A change in the composition of the Board of
Directors of the Company (the “Board”), resulting in fewer than one-half
of its members either having been (i) members of the Board on the date
which was twenty-four (24) months immediately prior to the date of the event
that may constitute a Change of Control (the “Original Members”), or (ii) elected
or nominated for election to the Board with the affirmative votes of at least a
majority of the aggregate of the Original Members who were on the Board at the
time of the election or nomination and the members whose election or nomination
was previously so approved; and

(d)  Any transaction as a result of which any
person becomes the “beneficial owner” (as defined in Rule 13d-3
under the Securities Exchange Act of 1934, as amended), director or indirectly,
of securities of the Company representing more than fifty percent (50%) of the
total voting power represented by the Company’s then outstanding voting
securities. For purposes of this section (d), the term “person” shall
have the same meaning as when used in section 13(d) and 14(d) of the
Securities Exchange Act of 1934, as amended, but shall exclude: (i) a
trustee or other fiduciary holding securities under an employee benefit plan of
the Company or a subsidiary thereof; (ii) a corporation owned directly or
indirectly by the stockholders of the Company in substantially the same
proportions as their ownership of the common stock of the Company; and (iii) the
Company.

 

4.04                    Rights Upon Voluntary Resignation Following
Change of Control

In the event
Employee’s employment with the Company is terminated by Employee for Good
Reason pursuant to Section 3.02(f) within eighteen (18) months after
the consummation of a Change of Control, the Company will pay to Employee,
within fifteen (15) days after the termination of his employment, in one
lump-sum payment: (a) the Accrued Rights and (b) the CIC Benefit.

4.05                    Exclusive Remedy

The Separation Benefit or the CIC Benefit,
whichever may be applicable, is in lieu of any severance, salary or income
continuation or protection under any other Company plan, program or policy that
may now or hereafter exist and shall satisfy and be in full and final
settlement of all obligations to Employee under this Agreement or any other
agreement between the Parties.

4.06                           Requirements
for Payment of Separation or CIC Benefit

In order to be eligible to receive the
Separation Benefit or the CIC Benefit, Employee must (a) execute and
deliver a full, general release of any and all claims Employee may have against
the Company and/or any of its Affiliates, and their respective officers,
directors, employees, shareholders, agents and assigns, with respect to matters
covered by this Agreement or otherwise arising out of, related to or concerning
his employment with or termination of his employment from the Company
(collectively, the “Releases”) arising through the date the release is
executed; and (b) be and remain in full compliance with his obligations
under the Non-Disclosure Agreement (as that term is defined below).

5.             RESTRICTIVE COVENANTS

As a condition to Employee’s employment
hereunder, Employee agrees to read, sign and abide by the Assignment of
Inventions, Non-Competition, and Confidentiality Agreement (the “Non-Disclosure
Agreement”), which is provided with this Agreement and incorporated herein
by reference, and which shall be signed by Employee contemporaneously with the
execution of this Agreement.

 

6.             NOTICE

6.01         Delivery

Any notice, consent, demand, request, or
other communication given to a party in connection with this Agreement shall be
in writing and shall be deemed to have been given to such party:

(a)                                  when delivered personally to such party;

(b)                                 provided that a written acknowledgment of
receipt is obtained, five days after being sent by prepaid certified or
registered mail, or two days after being sent by a nationally recognized
overnight courier, to the address (if any) specified below for such party (or
to such other address as such party shall have specified by ten (10) days’
advance notice given in accordance with this Section 6); or

(c)                                  in the case of notice to the Company
only, on the first business day after it is sent by facsimile to the facsimile
number set forth below (or to such other facsimile number as it shall have
specified by ten (10) days’ advance notice given in accordance with this Section 6),
with a confirmatory copy sent by certified or registered mail or by overnight
courier in accordance with this Section 6.

6.02         Address of the
Company

Clayton
Holdings, Inc.

2 Corporate Drive

Shelton, Connecticut 06484

Attn: Jeanne Rudell
         SVP, Human Resources

Address of
Employee

[address]

7.             ASSIGNMENT
AND SUCCESSORS

7.01         Assignment

No rights or obligations of the Company
under this Agreement may be assigned or transferred by the Company except that
such rights or obligations may be assigned or transferred to an Affiliate,
pursuant to a merger or consolidation in which the Company is not the
continuing entity, or the sale or liquidation of all or substantially all of
the business and 

 

assets of the Company, provided that the
assignee or transferee is the successor to all or substantially all of the
business and assets of the Company and such assignee or transferee assumes the
liabilities, obligations and duties of the Company, as contained in this
Agreement, either contractually or as a matter of law. No rights or obligations
of Employee under this Agreement may be assigned or transferred by Employee
other than Employee’s rights to compensation and benefits, which may be
transferred only by will or operation of law; provided, however, that
Employee shall be entitled, to the extent permitted under applicable law, to
select and change a beneficiary or beneficiaries to receive any compensation or
benefit due hereunder following Employee’s death by giving the Company written
notice thereof.

7.02         Successors

To the extent applicable, this Agreement
shall be binding upon and inure to the benefit of, the successors and assigns,
devises, heirs, next of kin, executors and administrators of Employee. In the
event of Employee’s death or a judicial determination of Employee’s
incompetence, references in this Agreement to Employee shall be deemed, where
appropriate, to refer to Employee’s legal representative, or, where
appropriate, to Employee’s beneficiary or beneficiaries.

7.03         Requirement for
Written Consent

Except as provided in this Section 7,
neither party may transfer or assign its rights or interests under this
Agreement, whether by contract, operation of law, or otherwise, without the
other party’s prior written consent.

8.             OTHER
TERMS

8.01         Applicable Law

This Agreement shall be construed in
accordance with the laws of the State of Connecticut and the obligations,
rights, and remedies of the Parties hereunder shall be determined in accordance
with such laws without reference to the principles of conflicts of law thereof.
The parties hereby agree that they are and shall be subject to the jurisdiction
of the courts of the State of Connecticut and the United States District Court
for the District of Connecticut. Venue for all actions or claims related to
this Agreement or Employee’s employment by or other relationship with the
Company shall be in the State and Federal Courts located in Connecticut.

 

8.02         Counterparts

This Agreement may be executed (including
by facsimile signature) in two or more counterparts, each of which shall be
deemed an original, but all of which together shall constitute one and the same
instrument.

8.03         Headings

The headings of the Sections and
subsections contained in this Agreement are for convenience only and shall not
be deemed to control or affect the meaning or construction of any provision of
this Agreement.

8.04         Entire Agreement

This Agreement contains the entire
understanding and agreement between the parties concerning the subject matter
hereof, supersedes all prior discussions, agreements and understandings of
every kind between the parties relating to this Agreement and may be modified
only by a written document that is signed by the party against whom enforcement
of any waiver, change, modification, extension or discharge is sought and that
specifically refers to this Agreement and to the terms or provisions being modified
or waived. The waiver of any breach of any provision of this Agreement shall be
effective only in the specific instance and for the specific purpose for which
it is given and shall not operate or be construed as a waiver of any subsequent
breach thereof. In the event of any inconsistency between this Agreement and
any plan, employee handbook, personnel manual, program, policy, arrangement or
agreement of the Company, the provisions of this Agreement shall control.

8.05         Severability

If any provision of this Agreement shall
be determined to be prohibited by or invalid under applicable law, or otherwise
determined to be unenforceable, then the Parties agree that it is their intent
that such provision shall be reformed and modified in a manner that will render
it enforceable and valid provided that any such reformation or modification
shall not be inconsistent with the original purpose and intent of the
provision. The invalidation of any provision or any portion of any provision of
this Agreement shall not affect the remainder of such provision or the
remaining provisions of this Agreement.

8.06                           Legal Expenses.

The Company hereby agrees to reimburse
Employee for expenses incurred in connection with the negotiation of this
Agreement and related agreements in an amount not to exceed $5,000.

 

IN WITNESS WHEREOF, the
Parties have executed this Agreement as of the day and year first written
above.

 

	
  EMPLOYEE: 

  	
   

  	
   

  	
  CLAYTON HOLDINGS, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/ DAVID
  KEITH JOHNSON

  	
   

  	
   

  	
  By:

  	
  /s/ FRANK P. FILIPPS

  
	
  David Keith
  Johnson

  	
   

  	
   

  	
   

  	
  Frank P. Filipps

  
	
   

  	
   

  	
   

  	
   

  	
  Chief Executive OfficerExhibit 10.2

CLAYTON
HOLDINGS, INC.

Employee Assignment of Inventions,
Non-Competition, and Confidentiality Agreement

In consideration
and as a condition of my employment by Clayton Holdings, Inc., or any of
its subsidiaries and affiliates (collectively, the “Company”), I agree as set
forth below.

1.             Proprietary Information. I agree that all
information, whether or not in writing, concerning the Company’s technology,
business relationships or financial affairs which the Company has not released
to the general public (collectively, “Proprietary Information”) is and will be
the exclusive property of the Company. By way of illustration, Proprietary
Information may include information or material which has not been made
generally available to the public, such as: 
(a) corporate information, including
plans, strategies, methods, policies, resolutions, negotiations or litigation; (b) marketing information, including strategies, methods,
customer identities or other information about customers, prospect identities or
other information about prospects, or market analyses or projections; (c) financial information, including cost and performance data,
debt arrangements, equity structure, investors and holdings, purchasing and
sales data and price lists; (d) operational and
technological information, including plans, specifications, manuals,
forms, templates, software, designs, procedures, formulas, discoveries,
inventions, improvements, concepts and ideas; and (e) personnel
information, including personnel lists, reporting or organizational
structure, resumes, personnel data, compensation structure, performance
evaluations and termination arrangements or documents. Proprietary Information
also includes information received in confidence by the Company from its
customers or suppliers or other third parties.

2.             Recognition of Company’s Rights. I will not, at any time,
without the Company’s prior written permission, either during or after my
employment, disclose any Proprietary Information to anyone outside of the
Company, or use or permit to be used any Proprietary Information for any
purpose other than the performance of my duties as an employee of the Company. I
will cooperate with the Company and use my best efforts to prevent the
unauthorized disclosure of all Proprietary Information. I will deliver to the
Company all copies of Proprietary Information in my possession or control upon
the earlier of a request by the Company or termination of my employment.

3.             Rights of Others. I understand that the Company is now and may hereafter be
subject to non-disclosure or confidentiality agreements with third persons
which require the Company to protect or refrain from use of proprietary
information. I agree to be bound by the terms of such agreements in the event I
have access to such proprietary information.

4.             Commitment to Company; Avoidance of Conflict
of Interest. While
an employee of the Company, I will
devote my full working time and efforts to the Company’s business, I will not
engage in any other business activity that conflicts with my duties to the
Company and I will comply with the Company’s policies and codes of conduct and
applicable law, always using my best efforts to promote the highest standards
of ethics and client service. I will advise the Chief Executive Officer, the
President or the managing partner of the Company or his or her nominee at such
time as any activity of either the Company or another business presents me with
a conflict of interest or the appearance of a conflict of interest as an
employee of the Company. I will take whatever action is requested of me by the
Company to resolve any conflict or appearance of conflict which it finds to
exist. 

5.             Developments. I will make full and
prompt disclosure to the Company of all inventions, discoveries, designs, developments,
methods, modifications, improvements, processes, algorithms, databases,
computer programs, formulae, techniques, trade secrets, graphics or images,
audio or visual works, and other works of authorship (collectively “Developments”),
whether or not patentable or copyrightable, that are created, made, conceived
or reduced to practice by me (alone or jointly with others) or under my
direction during the period of my employment. I acknowledge that all work
performed by me is on a “work for hire” basis, and I hereby do assign and
transfer, and will assign and transfer, to the Company and its successors and assigns all my right, title and
interest in all Developments that (a) relate to the business of the
Company or any customer of or supplier to the Company or any of the products or
services being researched, developed or sold by the Company or which may be
used with such products or services; (b) result from tasks assigned to me
by the Company; or (c) result from the use of premises or personal property
(whether tangible or intangible) owned, leased or contracted for by the Company
(“Company-Related Developments”), and all related patents, patent applications,
trademarks and trademark applications, copyrights and copyright applications,
and other intellectual property rights in all countries and territories
worldwide and under any international conventions (“Intellectual Property
Rights”). 

To preclude any
possible uncertainty, I have set forth on Exhibit A attached hereto
a complete list of Developments that I have, alone or jointly with others,
conceived, developed or reduced to practice prior to the commencement of my
employment with the Company that I consider to be my property or the property
of third parties and that I wish to have excluded from the scope of this
Agreement (“Prior Inventions”). I have also listed on Exhibit A all
patents and patent applications in which I am named as an inventor, other than
those which have been assigned to the Company (“Other Patent Rights”). If no
such disclosure is attached, I represent 

 

 

that there are no Prior
Inventions or Other Patent Rights. If, in the course of my employment with the
Company, I incorporate a Prior Invention into a Company product, process or
machine or other work done for the Company, I hereby grant to the Company a
nonexclusive, royalty-free, irrevocable, worldwide license (with the full right
to sublicense) to make, have made, modify, use and sell such Prior Invention. Notwithstanding
the foregoing, I will not incorporate, or permit to be incorporated, Prior
Inventions in any Company-Related Development without the Company’s prior
written consent.

This Agreement
does not obligate me to assign to the Company any Development which is
developed entirely on my own time and does not relate to the business efforts
or research and development efforts in which, during the period of my
employment, the Company actually is engaged or reasonably would be engaged, and
does not result from the use of premises or equipment owned or leased by the
Company. However, I will also promptly disclose to the Company any such
Developments for the purpose of determining whether they qualify for such
exclusion. I understand that to the extent this Agreement is required to be
construed in accordance with the laws of any state which precludes a
requirement in an employee agreement to assign certain classes of inventions
made by an employee, this paragraph 5 will be interpreted not to apply to any
invention which a court rules and/or the Company agrees falls within such
classes. I also hereby waive all claims to any moral rights or other special
rights which I may have or may accrue in any Company-Related  Developments.

6.             Documents and Other Materials. I will keep and maintain
adequate and current records of all Proprietary Information and Company-Related
Developments developed by me during my employment, which records will be
available to and remain the sole property of the Company at all times.

All files,
letters, notes, memoranda, reports, records, data, sketches, drawings,
notebooks, layouts, charts, quotations and proposals, specification sheets, or
other written, photographic or other tangible material containing Proprietary
Information, whether created by me or others, which come into my custody or
possession, are the exclusive property of the Company to be used by me only in
the performance of my duties for the Company. Any property situated on the
Company’s premises and owned by the Company, including, without limitation,
computers, disks and other storage media, filing cabinets or other work areas,
is subject to inspection by the Company at any time with or without notice. In
the event of the termination of my employment for any reason, I will deliver to
the Company all files, letters, notes, memoranda, reports, records, data,
sketches, drawings, notebooks, layouts, charts, quotations and proposals,
specification sheets, or other written, photographic or other tangible material
containing Proprietary Information, and other materials of any nature
pertaining to the Proprietary Information of the Company and to my work, and
will not take or keep in my possession any of the foregoing or any copies.

7.             Enforcement of Intellectual Property Rights. I will cooperate fully
with the Company, at the Company’s expense, both during and after my employment
with the Company, with respect to the procurement, maintenance and enforcement
of Intellectual Property Rights in Company-Related Developments. I will sign
all papers, including, without limitation, copyright applications, patent applications,
declarations, oaths, assignments of priority rights, and powers of attorney,
which the Company may deem necessary or desirable in order to protect its
rights and interests in any Company-Related Development. If the Company is
unable, after reasonable effort, to secure my signature on any such papers, I
hereby irrevocably designate and appoint each officer of the Company as my
agent and attorney-in-fact to execute any such papers on my behalf, and to take
any and all actions as the Company may deem necessary or desirable in order to
properly assign to the Company all rights and interests in any  such Company-Related Development.

8.             Restrictions on Activities. In order to protect the
Company’s Proprietary Information, good will and client and employee relations,
during my employment and for a period of twelve (12) months following the
termination of my employment for any reason (or for a period of twenty-four
(24) months to the extent that I am receiving the CIC Benefit pursuant to the
Employment Agreement by and between me and the Company (the “CIC Benefit Period”)),
I will not, directly or indirectly, whether as owner, partner, shareholder,
director, consultant, agent, employee, co-venturer or otherwise:

·                  engage,
participate or invest in any business activity anywhere in the United States or
Canada that develops or markets
any products, or performs any services, that are competitive with the products
or services of the Company, or products or services that the Company has under
development or that are the subject of active planning at any time during my
employment (a “Competitive Activity”); provided that this shall not prohibit
any investment by me in publicly traded stock of a company representing less
than five percent of the stock of such company; or

·                  other than for
the benefit of the Company, call upon, solicit, or otherwise attempt to divert
or take away any of the customers or prospective customers of the Company (or
any persons or entities who were, within the two (2) year period preceding
the termination of my employment, customers or prospective customers of the
Company) in each case in furtherance, directly or indirectly, of a Competitive
Activity.

In addition, during the
period of my employment and for a period of twelve (12) months following
termination of my employment for any reason (or the CIC Benefit Period of
twenty-four (24) months, if applicable), I will not, directly or indirectly,
hire any employees, consultants or suppliers of the Company (or any persons
who, during the last eighteen (18) 

 2
 

 

 

months during and
following termination of my employment, were employed by the Company) or
solicit, entice or attempt to persuade any employees, consultants or suppliers
of the Company to leave the services of the Company for any reason. I
acknowledge that if I violate any of the provisions of this paragraph 8,
the running of the time period of prohibited activities shall be suspended and
the running of such time period shall not resume until I have ceased engaging
in any such violation or pattern of violations.

9.             Prior Agreements. I hereby represent that,
except as I have fully disclosed previously in writing to the Company, I am not
bound by the terms of any agreement with any previous employer or other party
to refrain from using or disclosing any trade secret or confidential or
proprietary information in the course of my employment with the Company or to
refrain from competing, directly or indirectly, with the business of such
previous employer or any other party. I further represent that my performance
of all the terms of this Agreement as an employee of the Company does not and
will not breach any agreement to keep in confidence proprietary information,
knowledge or data acquired by me in confidence or in trust prior to my
employment with the Company. I will not disclose to the Company or induce the
Company to use any confidential or proprietary information or material
belonging to any previous employer or others.

10.          Remedies Upon Breach.  I understand that the restrictions contained
in this Agreement are necessary for the protection of the business and goodwill
of the Company and I consider them to be reasonable for such purpose. I
acknowledge that, particularly in light of my position and access within the
firm, any violation of these restrictions will substantially harm the firm that
I have joined to help build. Any breach of this Agreement is likely to cause
the Company substantial and irrevocable damage and therefore, in the event of
such breach, the Company, in
addition to such other remedies which may be available (including, without
limitation and if applicable, the right to recover from me any bonus monies
previously paid to me that are subject to repayment to the Company upon breach
of this Agreement), will be entitled to specific performance and other
injunctive relief.

11.          Use of Voice, Image and Likeness.  I give the Company permission to use my voice,
image or likeness, with or without using my name, for the purposes of
advertising and promoting the Company, or for other purposes deemed appropriate
by the Company in its reasonable discretion, except to the extent expressly
prohibited by law.

12.          Publications and Public Statements. To ensure that the
Company delivers a consistent message about its products, services and operations
to the public, and further in recognition that even positive statements may
have a detrimental effect on the Company in certain securities transactions and
other contexts, any statement about the Company, or any material that relates
to my work at the Company and/or incorporates any Proprietary Information, that
I seek to create, publish or post during my period of employment, on any media
accessible by the public, including, but not limited to, electronic bulletin
boards and Internet-based chat rooms, shall be created, published or posted
only in accordance with policies and procedures established by the Company.

13.          No Employment Obligation. I understand that this
Agreement does not create an obligation on the Company or any other person to continue my employment. I acknowledge
that, unless otherwise agreed in a formal written employment agreement signed
on behalf of the Company by an authorized officer, my employment with the
Company is at will and therefore may be terminated by the Company or me at any
time and for any reason.

14.          Survival and Assignment by the Company. I understand that all of
my obligations under this Agreement will continue in accordance with their
express terms regardless of any changes in my title, position, duties, salary,
compensation or benefits or other terms and conditions of employment. I further
understand that my obligations under this Agreement will continue following the
termination of my employment regardless of the manner of such termination and
will be binding upon my heirs, executors and administrators. The Company will
have the right to assign this Agreement to its affiliates, successors and
assigns. I expressly consent to be bound by the provisions of this Agreement
for the benefit of the Company or any parent, subsidiary or affiliate to whose
employ I may be transferred without the necessity that this Agreement be
resigned at the time of such transfer.

15.          Exit Interview. If and when I depart from
the Company, I may be required to attend an exit interview and sign an “Employee
Exit Acknowledgement” to reaffirm my acceptance and acknowledgement of the
obligations set forth in this Agreement. For the twelve (12) month period
following termination of my employment (or the CIC Benefit Period of
twenty-four (24) months, if applicable), I will notify the Company of any
change in my address and of each subsequent employment or business activity,
including the name and address of my employer or other post-Company employment
plans and the nature of my activities.

16.          Disclosure to Future Employers. During the twelve (12)
month period following termination of my employment (or the CIC Benefit Period
of twenty-four (24) months, if applicable), I will provide a copy of this
Agreement to any prospective employer, partner or coventurer prior to entering
into an employment, partnership or other business relationship with such person
or entity.

17.          Severability. In case any provisions
(or portions thereof) contained in this Agreement shall, for any reason, be
held invalid, illegal or unenforceable in any respect, such invalidity,
illegality or unenforceability shall not affect the other provisions of this
Agreement, and this Agreement shall be construed as if such invalid, illegal or
unenforceable provision had never been contained herein. If, moreover, any one
or more of the provisions contained in this Agreement shall for any reason be
held to be excessively broad as to duration, geographical scope, activity or
subject, it shall be construed by limiting and reducing it, so as to be enforceable
to the extent compatible with the applicable law as it shall then appear.

 3
 

 

 

18.          Interpretation. This Agreement will be
deemed to be made and entered into in the State of Connecticut, and will in all
respects be interpreted, enforced and governed under the laws of the State of
Connecticut. I hereby agree to consent to personal jurisdiction of the state
and federal courts situated within Connecticut for purposes of enforcing this
Agreement, and waive any objection that I might have to personal jurisdiction
or venue in those courts.

I
UNDERSTAND THAT THIS AGREEMENT AFFECTS IMPORTANT RIGHTS. BY SIGNING BELOW, I
CERTIFY THAT I HAVE READ IT CAREFULLY AND AM SATISFIED THAT I UNDERSTAND IT
COMPLETELY.

IN WITNESS
WHEREOF, the undersigned has
executed this agreement as a sealed instrument as of the date set forth below.

	
  Signed:

  	
  /s/ David Keith
  Johnson

  	
   

  
	
   

  	
  (Employee’s full
  name)

  	
   

  
	
  Type or print
  name: David Keith Johnson

  	
  Date: May 1, 2006

  

 

 4

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