Document:

Exhibit
10.1

CLAYTON HOLDINGS, INC.

Non-Employee
Directors’ Compensation Plan

Cash
Fees

Retainer:

$30,000 annually, with $7,500 payable in arrears at
the end of each calendar quarter for service during the quarter.

Meeting Fees:

$1,000 per meeting, payable in arrears at the end of
each calendar quarter for meetings held during the quarter.

Conference Call and
Committee Meeting Fees:

$500 per conference call or committee meeting, payable
in arrears at the end of each calendar quarter for all conference calls and
committees meeting held during the quarter.

Chair Fees:

$10,000 annually for chairs of audit committee, with
$2,500 payable in arrears at the end of each calendar quarter for service
during the quarter.

$5,000 annually for chairs of the nominating and
corporate governance or compensation committees, with $1,250 payable in arrears
at the end of each calendar quarter for service during the quarter.

Equity

Initial Equity Grant for
a Non-Employee Director:

On the effective date of a new director’s appointment
to the Board, such appointee shall receive a grant of restricted Deferred Stock
Units on such date (the “Initial Award”). 
The number of units to be granted in the Initial Award shall be equal to
$60,000 divided by the Closing Price (as defined below). These units shall be
fully vested on the anniversary date of such grant, subject to service on the
Board on such date.

Second Equity Grant for a
Non-Employee Director:

On the first anniversary of a new director receiving
the Initial Award, provided that such appointee is still serving on the Board,
such new director shall receive a grant of restricted Deferred Stock Units on
such date (the “Second Award”).  The
number of units to be granted in the Second Award shall be equal to $30,000
divided by the Closing Price, subject to a pro rata reduction for the number of
days between the grant date of the Second Award and the estimated date of the
subsequent annual meeting of the 

stockholders. 
These units shall be fully vested on the date of such next annual meeting
of stockholders, subject to service on the Board on such date.

Subsequent Annual Equity
Grant for each Non-Employee Director:

Each Non-Employee Director serving on the Board on the
date this Plan is adopted shall be eligible to receive the Subsequent Annual
Award (as defined below) subsequent to the 2007 annual meeting of
stockholders.  Any Non-Employee Director
first appointed to the Board after the date this Plan is adopted shall be
eligible to receive the Subsequent Annual Award after such director has
received the Initial Award and the Second Award. Each Non-Employee Director
serving on the Board on the fifth business day after each annual meeting of
stockholders, shall, once eligible in accordance with the foregoing, receive a
grant of restricted Deferred Stock Units on such date (the “Subsequent Annual
Award”).  The number of units to be
granted in the Subsequent Annual Award shall be equal to $30,000 divided by the
Closing Price.  These units shall be fully
vested on the anniversary date of grant or the date of the next annual meeting
of stockholders, whichever is earlier, subject to service on the Board on such
date.

Definition

“Closing Price” shall mean the reported closing price
of the Company’s common stock on the Nasdaq Global Market on any grant date, or
the preceding business date if there are no market quotations on such date.

*         *         *

ADOPTED BY THE BOARD OF DIRECTORS
on January 30, 2007.

 2Exhibit
10.2

DEFERRED STOCK UNIT AWARD AGREEMENT

UNDER THE CLAYTON HOLDINGS, INC.

2006 STOCK OPTION AND INCENTIVE PLAN

Name of Grantee:                                                                                  

Number of DSUs Granted:                                                                  

Grant Date:                                                                                            

1.             Award. 
Pursuant to the Clayton Holdings, Inc. 2006 Stock Option and Incentive
Plan (the “Plan”) as amended through the date hereof, Clayton Holdings, Inc.
(the “Company”) hereby grants to the Grantee named above the number of restricted
Deferred Stock Units (“DSUs”) specified above. 
This Award represents a promise to pay out to the Grantee at a future
date, subject to the restrictions and conditions set forth herein and in the
Plan, a number of shares of common stock, par value $.01 per share (the “Stock”)
of the Company equal to the number of vested DSUs.

2.             Restrictions and Conditions.

(a)           The DSUs are subject
to restrictions as set forth herein and in the Plan.

(b)           DSUs granted herein
may not be sold, assigned, transferred, pledged or otherwise encumbered or
disposed of by the Grantee prior to vesting.

3.             Vesting of DSUs. 
The restrictions and conditions in Paragraph 2 of this Agreement
shall lapse on [the anniversary of the Grant Date][the date of the next annual
meeting of the Company’s stockholders][the anniversary of the Grant Date or the
date of the next annual meeting of the Company’s stockholders, whichever is
earlier][_____________________] so long as the Grantee remains a Director of
the Company on such date.

Subsequent to such Vesting Date or Dates, the shares
of DSUs on which all restrictions and conditions have lapsed shall no longer be
deemed restricted and shall be considered vested.

4.             Timing and Form of Payout.  The vested DSUs will be paid out in full in
the form of shares of Stock as soon as practical after the Grantee retires or
otherwise terminates his service as a Director to the Company.

5.             Voting Rights and Dividends.  Until such time as the DSUs are paid out in
shares of Stock, the Grantee shall not have voting rights.  However, all dividends and other
distributions paid with respect to the DSUs shall accrue and shall be converted
to additional DSUs based on the closing price of the Stock on the dividend
distribution date.  Such additional DSUs
shall be subject to the same restrictions on transferability as are the DSUs
with respect to which they were paid.

6.             Sale Event.  Notwithstanding anything to the contrary in
this Agreement, in the event of a Sale Event (as defined in the Plan) of the
Company prior to the payout of shares of 

Stock pursuant to Paragraph 4, all DSUs not yet paid
out shall be immediately paid out to the Grantee in the form of shares of
Stock.

7.             Recapitalization.  In the event of any change in the
capitalization of the Company such as a stock split or a corporate transaction
such as any merger, consolidation, separation, or otherwise, the number and
class of DSUs subject to this Agreement may be equitably adjusted by the Administrator,
in its sole discretion, to prevent dilution or enlargement of rights.

8.             Beneficiary Designation.  The Grantee may, from time to time, name any
beneficiary or beneficiaries (who may be named contingently or successively) to
whom any benefit under this Agreement is to be paid in case of his or her death
before he or she receives any or all of such benefit.  Each such designation shall revoke all prior
designations by the Grantee, shall be in a form prescribed by the Company, and
will be effective only when filed by the Grantee in writing with the Company
during the Grantee’s lifetime.  In the
absence of any such designation, benefits remaining unpaid at the Grantee’s
death shall be paid to the Grantee’s estate.

9.             Continuation
of Service as Director.  This Agreement shall not confer upon the
Grantee any right to continue service with the Company, nor shall this
Agreement interfere in any way with the Company’s right to terminate the
Grantee’s service at any time.

10.           Incorporation of Plan.  Notwithstanding anything herein to the
contrary, this Agreement shall be subject to and governed by all the terms and
conditions of the Plan.  Capitalized
terms in this Agreement shall have the meaning specified in the Plan, unless a
different meaning is specified herein.

11.           Transferability.  This Agreement is personal to the Grantee, is
non-assignable and is not transferable in any manner, by operation of law or
otherwise, other than by will or the laws of descent and distribution.

12.           Notices.  Notices hereunder shall be mailed or
delivered to the Company at its principal place of business and shall be mailed
or delivered to the Grantee at the address on file with the Company or, in
either case, at such other address as one party may subsequently furnish to the
other party in writing.

CLAYTON HOLDINGS,
INC.

	
   

  	
  By:

  	
   

  
	
   

  	
  Title

  

 2
 

The foregoing Agreement
is hereby accepted and the terms and conditions thereof hereby agreed to by the
undersigned.

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
  Grantee’s
  Signature

  
	
   

  	
   

  
	
   

  	
  Grantee’s name
  and address:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  

 

 3Exhibit
10.3

AMENDMENT
TO EMPLOYMENT AGREEMENT

This FIRST AMENDMENT TO
EMPLOYMENT AGREEMENT (“Amendment”) dated as of January 30, 2007 is between
Clayton Holdings, Inc., a Delaware corporation with its principal place of
business located at 2 Corporate Drive, Shelton, CT 06484 (the “Employer”),
and Frederick C. Herbst (the “Employee”).

WHEREAS,
the Employee is currently employed as the Chief Financial Officer of the Employer
under an Employment Agreement dated September 2, 2005 with an effective date of
September 19, 2005 (the “Agreement”); and

WHEREAS,
the Board of Directors of Employer has authorized new bonus and change of
control arrangements in respect of Employee, and the parties hereto consider it
appropriate that the Agreement be amended to reflect such arrangements;

NOW,
THERFORE, the Employer and the Employee agree to the following amendments
to the Agreement.  Capitalized terms used
in this Amendment that are not otherwise defined shall have the same meanings
as in the Agreement, provided that the terms “Employer” and the “Company” shall
be used interchangeably in the Agreement and in this Amendment.

1. Section III(c)
of the Agreement is hereby deleted in its entirety and replaced with the
following:

“(c)  INCENTIVE COMPENSATION.  In addition to Base Salary, Employee shall be
eligible to receive an annual incentive bonus. The Employer, at its discretion,
shall determine the exact amount of such bonus based on a combination of Employer
and Employee performance goals, criteria and targets established by the Employer’s
Board of Directors or a committee thereof.”

2. Subparagraph
(i) of Section VI(a) of the Agreement is hereby deleted in its entirety and
replaced with the following:

“(i) continuation of salary at a rate equal to 100% of
Employee’s Base Salary as in effect at the date of termination for a period of
twelve (12) months following the date of termination (payment shall be subject to
withholding under applicable law and shall be made in periodic installments in
accordance with the Employer’s payroll policies), unless such termination is within
eighteen (18) months after the consummation of a Change of Control (as that
term is defined below) in which case the Employer will pay to Employee, within
fifteen (15) days after the termination of his employment, in one lump-sum
payment the sum of (y) eighteen (18) months of Base Salary and (z) one hundred
fifty percent (150%) of Employee’s target incentive bonus for the year in which
the termination of employment occurs; and”

3. Section VI(c) is
amended by deleting the existing section heading and replacing it with the
following:

“(c)         Definitions of “CAUSE” and “GOOD REASON”
and “CHANGE OF CONTROL”

4. Section VI(c) is
further amended by adding the following subsection (iii):

“(iii)  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), directly 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 the immediately preceding subsection VI(c)(iii)(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.”

[Remainder of Page
Intentionally Left Blank]

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IN WITNESS WHEREOF, the Employee
and Employer have executed this Amendment as of the date set forth above.

	
   

  	
   

  
	
   

  	
  EMPLOYEE:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Frederick C.
  Herbst

  
	
   

  	
  Frederick C.
  Herbst

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EMPLOYER:

  
	
   

  	
   

  
	
   

  	
  CLAYTON
  HOLDINGS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Frank P.
  Filipps

  
	
   

  	
  Frank P. Filipps

  
	
   

  	
  Chief Executive
  Officer

  

 

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