Exhibit 10.26

SEVERANCE AGREEMENT

This Severance Agreement, dated as of February 19, 2004 ("Agreement"), by and between Thomas
Group, Inc., a Delaware corporation (the "Company") and Toby Marion ("Employee").

WITNESSETH:

WHEREAS, Employee and the Company are parties to that certain Employment Agreement, dated January 14, 2002, as supplemented by a letter dated
October 9, 2001 and a letter dated November 21, 2002 (as supplemented, the "Employment Agreement");

WHEREAS,
Employee and the Company wish to terminate Employee's relationship with the Company and the Employment Agreement and any and all written or oral agreements between them;

WHEREAS,
the Employment Agreement, as the same may have been amended from time to time, provides for the payment of severance pay to Employee; and

WHEREAS,
in lieu of payment of such severance payments, the parties wish to enter into this Agreement and a consulting agreement (the "Consulting
Agreement").

NOW,
THEREFORE, in consideration of the mutual benefits to be derived from this Agreement and the covenants and agreements set forth herein, the receipt and sufficiency of which are
acknowledged by the execution and delivery hereof, the parties agree as follows:

1.Severance. The Company agrees to pay Employee the sum of $131,250, payable in three (3) installments of $43,750.00
per month during the Term (as defined herein), payable on the last day of each such month. In the event the Company fails to make a payment within fifteen (15) days of the date a payment is
due, the remaining unpaid amounts due during the Term shall become due and payable immediately. The Company shall make such payments by wire transfer to an account specified by Employee to the Company
in writing.

2.Continuation of Covenants.



3.Term. The term of this Agreement shall commence on February 1, 2004, and shall continue thereafter until
5:00 p.m., central standard time, on April 30, 2004 (the "Term"). The provisions of Section 3shall survive the end of the Term.

4.Expenses. The Company shall reimburse Employee for all reasonable and ordinary direct
out-of-pocket business expenses Employee reasonably incurs in the performance of his remaining duties

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the Company. Employee must receive the prior written approval of the President of the Company for any expenses in excess of $500.

5.Termination and Release. Employee acknowledges and agrees that Employee and the Company have, in part, entered into this
Agreement and are entering into the Consulting Agreement to satisfy all of the Company's obligations to Employee pursuant to the Employment Agreement, and Employee agrees that (i) except for
the provisions of the Employment Agreement set forth inparagraph 2hereof, which are to continue, the Company will have performed all of its
obligations to Employee under the Employment Agreement and any oral or written modifications or purported modifications thereof by either party, (ii) Employee is not entitled to any further
severance benefits or payments (other than payments pursuant to the Consulting Agreement), and (iii) Employee releases the Company from any further obligations to Employee pursuant to the
Employment Agreement. The parties agree that the Employment Agreement is hereby terminated and shall be of no further force or effect, other than Sections 4, 5, 6, 7 and 9 of the Employment Agreement,
which continue in full force and effect pursuant to Section 2(a) hereof.

6.Resignation. Employee resigns as the President of the Asia/Pacific Region and any other officer or director positions of
any subsidiary or affiliate of the Company held by Employee, effective February 1, 2003, and shall execute and deliver to the Company his written resignation and such other documentation
relating to such resignation as the Company may reasonably request.

7.Assignment. All covenants and agreements hereunder shall inure to the benefit of and be enforceable by said successors or
assigns;provided,however, that Employee may not assign, without the Company's prior written consent,
this Agreement, or any right or obligation hereunder, and any and all assignments without such prior written consent shall be null and void.

8.Miscellaneous.



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[signature page follows]

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

| |  | Employee:                    
| |  | -----------------------------
| |  | /s/ G. Toby MarionToby Marion
| |  | Address:                     
| |  |                              
| |  |                              
| |  | Company:                     
| |  | THOMAS GROUP, INC.           
| |  | By:                          
| |  | Name:                        
| |  | Title:                       
| |  | Address:                     
| |  |                              
| |  |                              

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