The amount of effort required to buy multiple servers would probably be a waste with only 10 users, but the amount of effort required to install Hyper-V on a physical server and then run two virtual instances (one for the DC and one for SQL) wouldn't be that bad.
How fast is your WAN link? Do you even need a server (or at least a DC) at that new location?
If you want to replicate your SQL database then you'll have to do that through SQL, which means two full databases. You'll also be looking at a fairly complicated setup because the databases must be kept in sync in near real time, otherwise you'll get into situations where a user at each site updates the same record before changes have replicated.
My recommendation:
Main site - 1 DC and 1 SQL server (either two systems or two virtual machines)
Secondary site - 1 DC (if necessary), and applications accessed over the WAN.
This is going to depend upon how the application that uses the database utilizes the SQL server. If it has a web front end then even a T1/E1 would be sufficient. If it opens and maintains a persistent connection then you may have some performance issues. Even if you don't want to get into a Citrix or RDS scenario, it may be required for your particular situation (and both work well in low bandwidth scenarios). Unfortunately there isn't enough information in your post to do more than offer general suggestions.
As far as clustering goes, that is generally used for failover/HA purposes only.
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