Document:

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                                                                   Exhibit 10.2a

                              AMENDED AND RESTATED
                            INDEMNIFICATION AGREEMENT

     This Amended and Restated Indemnification Agreement (this "Agreement") is
dated for reference purposes only as of June 25, 2001, but is made and entered
into effective as of November 21, 2000, by and between Primal Solutions, Inc., a
Delaware corporation (the "Company"), and *1 (the "Indemnitee").
                                          --   ----

                              W I T N E S S E T H:

     WHEREAS, the interpretation of ambiguous statutes, regulations and bylaws
regarding indemnification of directors and officers may be too uncertain to
provide such directors and officers with adequate notice of the legal, financial
and other risks to which they may be exposed by virtue of their service as such;
and

     WHEREAS, damages sought against directors and officers in shareholder or
similar litigation by class action plaintiffs may be substantial, and the costs
of defending such actions and of judgments in favor of plaintiffs or of
settlement therewith may be prohibitive for individual directors and officers,
without regard to the merits of a particular action and without regard to the
culpability of, or the receipt of improper personal benefit by, any named
director or officer to the detriment of the corporation; and
                                                         ---

     WHEREAS, the issues in controversy in such litigation usually relate to the
knowledge, motives and intent of the director or officer, who may be the only
person with firsthand knowledge of essential facts or exculpating circumstances
who is qualified to testify in such person's defense regarding matters of such a
subjective nature, and the long period of time which may elapse before final
disposition of such litigation may impose undue hardship and burden on a
director or officer or on such person's estate in launching and maintaining a
proper and adequate defense for a director or officer or for such person's
estate against claims for damages; and

     WHEREAS, the Company is organized under the Delaware General Corporation
Law (the "DGCL") and Section 145 of the DGCL empowers corporations to indemnify
and advance expenses to a person serving as a director, officer, employee or
agent of a corporation and to persons serving at the request of the corporation
as a director, officer, partner, trustee, employee or agent of another
corporation, partnership, joint venture, trust, other enterprise or employee
benefit plan, and further provides that the indemnification and advancement of
expenses provided by, or granted pursuant to, said section "shall not be deemed
exclusive of any other rights to which those seeking indemnification or
advancement of expenses may be entitled under any bylaw, agreement, vote of
stockholders or disinterested directors or otherwise, both as to action in such
person's official capacity and as to action in another capacity while holding
such office"; and

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     WHEREAS, the Certificate of Incorporation of the Company (as it may be
amended or amended and restated from time to time, the "Certificate of
Incorporation") provides that the Company "shall indemnify all persons whom it
may indemnify to the fullest extent permitted by the DGCL"; and

     WHEREAS, the Board of Directors and stockholders of the Company (the
"Board") have concluded that it is reasonable and prudent for the Company
contractually to obligate itself to indemnify in a reasonable and adequate
manner the Indemnitee and to assume for itself maximum liability for expenses
and damages in connection with claims lodged against the Indemnitee for such
person's decisions and actions as a director, officer, employee or agent of the
Company and its subsidiaries; and

     WHEREAS, the Company and the Indemnitee have previously entered into that
certain Indemnification Agreement dated as of November 21, 2000 (the "Original
Agreement"); and

     WHEREAS, the Company and the Indemnitee desire to amend and restate the
Original Agreement on the terms and conditions set forth herein;

     NOW, THEREFORE, in consideration of the foregoing, and of other good and
valuable consideration, the receipt and sufficiency of which are acknowledged by
each of the parties hereto, the parties agree as follows:

                                    ARTICLE I

                                   DEFINITIONS

     For purposes of this Agreement, the following terms shall have the meanings
set forth below:

     A. "Board" shall mean the Board of Directors of the Company.

     B. "Corporate Status" shall mean the status of a person who is or was a
director, officer, employee or agent of the Company, or is or was or agreed to
become a member of any committee of the Board, and the status of a person who is
or was serving or has agreed to serve at the request of the Company as a
director, officer, partner (including service as a general partner of any
limited partnership), member, trustee, employee, or agent of another foreign or
domestic corporation, partnership, limited liability company, joint venture,
trust, other incorporated or unincorporated entity or enterprise or employee
benefit plan. For the purposes of this Agreement, any person serving as a
director, officer, partner, member, trustee, employee, or agent of any
subsidiary of the Company or any employee benefit plan of the Company or any of
its subsidiaries shall be deemed to be so serving at the request of the Company,
and no

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corporate or other action shall be or be deemed to be required to evidence any
such request.

     C. "Disinterested Director" shall mean a director of the Company who is not
a party to the Proceeding in respect of which indemnification is being sought by
the Indemnitee.

     D. "Expenses" shall mean any and all expenses actually and reasonably
incurred directly or indirectly in connection with a Proceeding, including,
without limitation, all attorneys' fees, retainers, court costs, transcript
costs, fees of experts, investigation fees and expenses, accounting and witness
fees, travel expenses, duplicating costs, printing and binding costs, telephone
charges, postage, delivery service fees and all other disbursements or expenses
of the types customarily incurred in connection with prosecuting, defending,
preparing to prosecute or defend, investigating or being or preparing to be a
witness in a Proceeding.

     E. "Good Faith" shall mean, when used with reference to an act or omission
of the Indemnitee, an act or omission the Indemnitee reasonably believed to be
in or not opposed to the best interests of the Corporation, and, with respect to
any criminal action or proceeding, had no reasonable cause to believe the
Indemnitee's conduct was unlawful.

     F. "Liabilities" shall mean liabilities of any type whatsoever, including,
without limitation, any judgments, fines, excise taxes and penalties under the
Employee Retirement Income Security Act of 1974, as amended, penalties and
amounts paid in settlement (including all interest, assessments and other
charges paid or payable in connection with or in respect of such judgments,
fines, penalties or amounts paid in settlement) actually and reasonably incurred
directly or indirectly in connection with the investigation, defense, settlement
or appeal of any Proceeding or any claim, issue or matter therein.

     G. "Proceeding" shall mean any threatened, pending or completed action,
suit, proceeding, arbitration, alternate dispute resolution mechanism,
investigation, administrative hearing or any other actual, threatened or
completed proceeding, whether civil, criminal, administrative, arbitrative or
investigative, any appeal or appeals therefrom, and any inquiry or investigation
that could lead to any of the foregoing.

     H. "Voting Securities" shall mean any securities of the Company that are
entitled to vote generally in the election of directors.

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                                   ARTICLE II

                                TERM OF AGREEMENT

      This Agreement shall continue until, and terminate upon the later to
occur of (i) the death of the Indemnitee; or (ii) the final termination of all
Proceedings (including possible Proceedings) in respect of which the Indemnitee
is granted rights of indemnification or advancement of Expenses hereunder and of
any Proceeding commenced by the Indemnitee regarding the interpretation or
enforcement of this Agreement. This Agreement shall govern the indemnification
rights of the Indemnitee for all Liabilities and Expenses in connection with any
Proceeding instituted or commenced on or after the date hereof notwithstanding
that any alleged act or omission of the Indemnitee occurred prior to the date
hereof. The rights of Indemnitee under this Agreement shall survive termination
of Indemnitee's status as a director, officer, employee, or agent of the
Company.

                                   ARTICLE III

                    NOTICE OF PROCEEDINGS; DEFENSE OF CLAIMS

     Section 3.1 Notice of Proceedings. The Indemnitee will notify the Company
                 ----------------------
promptly in writing upon being served with any summons, citation, subpoena,
complaint, indictment, information or other document relating to any Proceeding
or matter which may be subject to indemnification or advancement of Expenses
covered hereunder, but the Indemnitee's failure to so notify the Company shall
not relieve the Company from any liability to the Indemnitee under this
Agreement.

     Section 3.2 Defense of Claims. The Company will be entitled to participate,
                 ------------------
at the expense of the Company, in any Proceeding of which the Company has
notice. The Company jointly with any other indemnifying party similarly notified
of any Proceeding will be entitled to assume the defense of the Indemnitee
therein, with counsel reasonably satisfactory to the Indemnitee; provided,
however, that the Company shall not be entitled to assume the defense of the
Indemnitee in any Proceeding if the Indemnitee has reasonably concluded that
there may be a conflict of interest between the Company and the Indemnitee with
respect to such Proceeding. The Company will not be liable to the Indemnitee
under this Agreement for any Expenses incurred by the Indemnitee in connection
with the defense of any Proceeding, other than reasonable costs of investigation
or as otherwise provided below, after notice from the Company to the Indemnitee
of its election to assume the defense of the Indemnitee therein. The Indemnitee
shall have the right to employ his or her own counsel in any such Proceeding,
but the fees and expenses of such counsel incurred after notice from the Company
of its assumption of the defense thereof shall be at the expense of the
Indemnitee unless (i) the employment of counsel by the Indemnitee has been
authorized by the Company; (ii) the Indemnitee shall have reasonably concluded
that counsel employed by the Company may not adequately represent the Indemnitee
and shall have so informed the Company; or (iii)

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the Company shall not in fact have employed counsel to assume the defense of the
Indemnitee in such Proceeding or such counsel shall not, in fact, have assumed
such defense or such counsel shall not be acting, in connection therewith, with
reasonable diligence; and in each such case the fees and expenses of the
Indemnitee's counsel shall be advanced by the Company.

     Section 3.3 Settlement of Claims. The Company shall not settle any
                 ---------------------
Proceeding in any manner which would impose any Liability, penalty or limitation
on the Indemnitee, or cause the Indemnitee to become subject to or bound by any
injunction, order, judgment or decree, without the written consent of the
Indemnitee, which consent shall not be unreasonably withheld or delayed. The
Company shall not be liable to indemnify the Indemnitee under this Agreement or
otherwise for any amounts paid in settlement of any Proceeding effected by the
Indemnitee without the Company's written consent, which consent shall not be
unreasonably withheld or delayed.

                                   ARTICLE IV

                                 INDEMNIFICATION

     Section 4.1 In General. Upon the terms and subject to the conditions set
                 ----------
forth in this Agreement, the Company shall hold harmless and indemnify the
Indemnitee against any and all Liabilities and Expenses actually incurred by or
for the Indemnitee in connection with any Proceeding (whether the Indemnitee is
or becomes a party, a witness or otherwise is a participant in any role) to the
fullest extent required or permitted by applicable law in effect on the date
hereof and to such greater extent as applicable law may hereafter from time to
time require or permit. To the extent that the Indemnitee has at any time
heretofore served or at any time hereafter serves as a director, officer,
employee, partner, trustee or agent of, for, or on behalf of any subsidiary of
the Company, the Company expressly agrees and acknowledges that Indemnitee was
or is serving in each such capacity at the request of the Company.

     Section 4.2 Proceeding other Than a Proceeding by or in the Right of the
                 ------------------------------------------------------------
Company. Without limiting the generality of Section 4.1, if the Indemnitee was
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or is a party or is threatened to be made a party to any Proceeding (whether the
Indemnitee is or becomes a party, a witness or otherwise is a participant in any
role) (other than a Proceeding by or in the right of the Company) by reason of
the Indemnitee's Corporate Status, or by reason of any alleged act or omission
by the Indemnitee in any such capacity, the Company shall, subject to the
limitations set forth in Section 4.6 below, hold harmless and indemnify the
Indemnitee against any and all Liabilities and Expenses of the Indemnitee in
connection with the Proceeding if the Indemnitee acted in Good Faith.

     Section 4.3 Proceeding by or in the Right of the Company. Without limiting
                 --------------------------------------------
the generality of Section 4.1, if the Indemnitee was or is a party or is
threatened to be made a party to any Proceeding (whether the Indemnitee is or
becomes a party, a witness or otherwise is a participant in any role) by or in
the right of the Company to procure a

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judgment in its favor by reason of the Indemnitee's Corporate Status, or by
reason of any alleged act or omission by the Indemnitee in any such capacity,
the Company shall, subject to the limitations set forth in Section 4.6 below,
hold harmless and indemnify the Indemnitee against any and all Expenses of the
Indemnitee in connection with the Proceeding if the Indemnitee acted in Good
Faith; except that no indemnification under this Section 4.3 shall be made in
respect of any claim, issue or matter as to which the Indemnitee shall have been
finally adjudged, pursuant to a judgment or other adjudication which is final
and has become nonappealable, to be liable to the Company, unless a court of
appropriate jurisdiction (including, but not limited to, the court in which such
Proceeding was brought) shall determine upon application that, despite the
adjudication of liability but in view of all the circumstances of the case, the
Indemnitee is fairly and reasonably entitled to indemnification for such
Expenses which such court shall deem proper.

     Section 4.4 Indemnification of a Party Who is Wholly or Partly Successful.
                 -------------------------------------------------------------
Notwithstanding any other provision of this Agreement, to the extent that the
Indemnitee is or has been successful on the merits or otherwise in defense of
any Proceeding, the Indemnitee shall be indemnified by the Company to the
maximum extent consistent with law against all Expenses of the Indemnitee in
connection therewith. If the Indemnitee is not wholly successful in such
Proceeding but is or has been successful on the merits or otherwise in defense
of one or more but less than all claims, issues or matters in such Proceeding,
the Company shall hold harmless and indemnify the Indemnitee to the maximum
extent consistent with law against all Expenses of the Indemnitee in connection
with each successfully resolved claim, issue or matter in such Proceeding.
Resolution of a claim, issue or matter by dismissal, with or without prejudice,
shall be deemed a successful result as to such claim, issue or matter.

     Section 4.5 Indemnification for Expenses of Witness. Notwithstanding any
                 ---------------------------------------
other provision of this Agreement, to the extent that the Indemnitee, by reason
of the Indemnitee's Corporate Status, has prepared to serve or has served as a
witness in any Proceeding, or has participated in discovery proceedings or other
trial preparation, the Indemnitee shall be held harmless and indemnified against
all Expenses of the Indemnitee in connection therewith.

     Section 4.6 Specific Limitations on Indemnification. In addition to the
                 ---------------------------------------
other limitations set forth in this Article IV, and notwithstanding anything in
this Agreement to the contrary, the Company shall not be obligated under this
Agreement to make any payment to the Indemnitee for indemnification of
Liabilities or Expenses, or both, in connection with any Proceeding:

          1. To the extent that payment of any of the Liabilities or Expenses of
the Indemnitee is actually made to the Indemnitee under any insurance policy or
is made on behalf of the Indemnitee by or on behalf of the Company otherwise
than pursuant to this Agreement;

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          2. For any acts or omissions or transactions from which a director may
not be relieved of liability under Section 102(b)(7) of the DGCL; or

          3. For an accounting of profits made from the purchase or sale by the
Indemnitee of securities of the Company within the meaning of section 16(b) of
the Securities Exchange Act of 1934, as amended, or similar provisions of any
federal, state or local statute or regulation.

                                    ARTICLE V

                             ADVANCEMENT OF EXPENSES

     Notwithstanding any provision to the contrary in Article VI hereof, the
Company shall pay or reimburse all Expenses of the Indemnitee incurred by or for
the Indemnitee in connection with any Proceeding in advance of the final
disposition of such Proceeding, provided that the Company receives an
undertaking by or on behalf of the Indemnitee to repay such amounts if it shall
ultimately be determined that the Indemnitee is not entitled to be indemnified
by the Company under applicable law (the "Undertaking"). The Undertaking shall
reasonably evidence the Expenses incurred by or for the Indemnitee. The Company
shall pay all such Expenses within five (5) business days after the receipt by
the Company of the Undertaking. The Undertaking shall be unsecured and interest
free, and shall be made and accepted by the Company without reference to the
Indemnitee's financial ability to make repayment.

                                   ARTICLE VI

                             PROCEDURE FOR PAYMENT;
                    DETERMINATION OF RIGHT TO INDEMNIFICATION

     Section 6.1 Procedure for Payment. To obtain indemnification for
                 ---------------------
Liabilities under this Agreement, and to obtain indemnification for Expenses not
paid in advance of the final disposition of any Proceeding pursuant to Article
V, the Indemnitee shall submit to the Company a written request for payment,
including with such request such documentation as is reasonably available to the
Indemnitee and reasonably necessary to determine whether, and to what extent,
the Indemnitee is entitled to indemnification and payment hereunder. The
Secretary of the Company, or such other person as shall be designated by the
Board of Directors, promptly upon receipt of a request for indemnification shall
advise the Board of Directors, in writing, of such request. Any indemnification
payment due hereunder shall be paid by the Company no later than five (5)
business days following the determination, pursuant to this Article VI, that
such indemnification payment is proper hereunder.

     Section 6.2 No Determination Necessary when the Indemnitee was Successful.
                 -------------------------------------------------------------
To the extent the Indemnitee is or has been successful on the merits or
otherwise in defense of any Proceeding, or in defense of any claim, issue or
matter

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therein, the Company shall indemnify the Indemnitee against Expenses of the
Indemnitee in connection with any such Proceeding or any claim, issue or matter
therein as provided in Section 4.4.

     Section 6.3 Determination of Good Faith Act or Omission. In the event that
                 -------------------------------------------
Section 6.2 is inapplicable with respect to any Proceeding, or any claim, issue
or matter therein, the Company shall hold harmless and indemnify the Indemnitee
as provided herein unless the Company shall prove by clear and convincing
evidence to a forum listed in Section 6.4 that the Indemnitee did not act in
Good Faith.

     Section 6.4 Forum for Determination. If the Indemnitee is serving as a
                 -----------------------
director or officer of the Company at the time the determination is to be made,
the Indemnitee shall be entitled to select from among the following the forum in
which the validity of the Company's claim under Section 6.3 that the Indemnitee
is not entitled to indemnification will be heard:

          1. A majority vote of the Directors who are Disinterested Directors,
even though less than a quorum;

          2. By a committee of Disinterested Directors designated by a majority
vote of the Directors who are Disinterested Directors, even though less than a
quorum;

          3. If there are no Disinterested Directors, or if such Directors so
direct, independent legal counsel selected by the Indemnitee, subject to the
approval of the Board, which approval shall not be unreasonably delayed or
denied, which counsel shall make such determination in a written opinion; or

          4. The stockholders of the Company, by the affirmative vote of the
majority of the Voting Securities present in person or by proxy and entitled to
vote on the subject matter.

     If the Indemnitee is not serving as a director or officer at the time the
determination is to be made, the Indemnitee shall be entitled to select from
among the forums set forth above, or to select any other person or persons
having corporate authority to act on the matter, including, without limitation,
the Board or any committee thereof or those persons who are authorized by
statute to determine whether to indemnify directors and officers.

     As soon as practicable, and in no event later than thirty (30) days after
written notice of the Indemnitee's choice of forum pursuant to this Section 6.4,
the Company shall, at the expense of the Company, submit to the selected forum,
in such manner as the Indemnitee or the Indemnitee's counsel may reasonably
request, its claim that the Indemnitee is not entitled to indemnification, and
the Company shall act in the utmost good faith to assure the Indemnitee a
complete opportunity to defend against such claim. The fees and expenses of the
selected forum in connection with making the determination

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contemplated hereunder shall be paid by the Company. If the Company shall fail
to submit the matter to the selected forum within thirty (30) days after the
Indemnitee's written notice, or if the forum so empowered to make the
determination shall have failed to make the requested determination within
thirty (30) days after the matter has been submitted to it by the Company, the
requisite determination that the Indemnitee has the right to indemnification
hereunder shall be deemed to have been properly made and an indemnification
payment shall be made to Indemnitee no later than five business days following
such date, in accordance with Section 6.1.

     Section 6.5 Right to Appeal. Notwithstanding a determination by any forum
                 ---------------
listed in Section 6.4 that the Indemnitee is not entitled to indemnification
with respect to a specific Proceeding, or any claim, issue or matter therein,
the Indemnitee shall have the right to apply to the court in which that
Proceeding is or was pending, or to any other court of competent jurisdiction,
for the purpose of enforcing the Indemnitee's right to indemnification pursuant
to this Agreement. Such enforcement action shall consider the Indemnitee's
entitlement to indemnification de novo, and the Indemnitee shall not be
prejudiced by reason of a prior determination that the Indemnitee is not
entitled to indemnification. The Company shall be precluded from asserting that
the procedures and presumptions of this Agreement are not valid, binding and
enforceable. The Company further agrees to stipulate in any such judicial
proceeding that the Company is bound by all the provisions of this Agreement and
is precluded from making any assertion to the contrary.

     Section 6.6 Right to Seek Judicial Determination. Notwithstanding any other
                 ------------------------------------
provision of this Agreement to the contrary, at any time after sixty (60) days
after a request for indemnification has been made to the Company (or upon
earlier receipt of written notice that a request for indemnification has been
rejected or the expiration of time within which any such payment must be made
hereunder) and before the third (3rd) anniversary of the making of such
indemnification request, the Indemnitee may petition a court of competent
jurisdiction, whether or not such court has jurisdiction over, or is the forum
in which is pending, the Proceeding, to determine whether the Indemnitee is
entitled to indemnification hereunder, and such court thereupon shall have the
exclusive authority to make such determination, unless and until such court
dismisses or otherwise terminates the Indemnitee's action without having made
such determination. The court, as petitioned, shall make an independent
determination of whether the Indemnitee is entitled to indemnification
hereunder, without regard to any prior determination in any other forum as
provided hereby.

     Section 6.7 Expenses under this Agreement. Notwithstanding any other
                 -----------------------------
provision in this Agreement to the contrary, the Company shall indemnify the
Indemnitee against all Expenses incurred by the Indemnitee in connection with
any hearing, action, suit or proceeding under this Article VI involving the
Indemnitee and against all Expenses incurred by the Indemnitee in connection
with any other hearing, action, suit or proceeding between the Company and the
Indemnitee involving the interpretation or enforcement of the rights of the
Indemnitee under this Agreement, even if it is finally

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determined that the Indemnitee is not entitled to indemnification in whole or in
part hereunder, unless a court of competent jurisdiction determines that each of
the material assertions made by Indemnitee in connection with such hearing,
action, suit or proceeding was not made in good faith or was frivolous.

                                   ARTICLE VII

                 PRESUMPTIONS AND EFFECT OF CERTAIN PROCEEDINGS

     Section 7.1 Burden of Proof. In making a determination with respect to
                ----------------
entitlement to indemnification hereunder, the person, persons, entity or
entities making such determination shall presume that the Indemnitee is entitled
to indemnification under this Agreement and the Company shall have the burden of
proof to overcome that presumption.

     Section 7.2 Effect of other Proceedings. The termination of any Proceeding
                 ---------------------------
or of any claim, issue or matter therein, by judgment, order, settlement,
conviction, or upon a plea of nolo contendere or its equivalent, shall not, of
itself, create a presumption that the Indemnitee did not act in Good Faith.

     Section 7.3 Reliance as Safe Harbor. For purposes of any determination of
                 -----------------------
whether any act or omission of the Indemnitee was done or made in Good Faith,
each act or omission of the Indemnitee shall be deemed to be in Good Faith if
the Indemnitee's act or omission is based on the records or books of accounts of
the Company, including financial statements, or on information supplied to the
Indemnitee by the officers of the Company in the course of their duties, or on
the advice of legal counsel for the Company, or on information or records given
or reports made to the Company by an independent certified public accountant or
by an appraiser or other expert selected with reasonable care by the Company.
The provisions of this section 7.3 shall not be deemed to be exclusive or to
limit in any way the other circumstances in which the Indemnitee may be deemed
to have met the applicable standard of conduct set forth in this Agreement or
under applicable law.

     Section 7.4 Actions of Others. The knowledge and/or actions, or failure to
                 -----------------
act, of any other director, officer, agent or employee of the Company shall not
be imputed to the Indemnitee for purposes of determining the right to
indemnification under this Agreement.

                                  ARTICLE VIII

                  INSURANCE; OTHER INDEMNIFICATION ARRANGEMENTS

     Section 8.1 Insurance. In the event that the Company maintains officers'
                 ---------
and directors' or similar liability insurance to protect itself and any director
or officer of the

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Company against any expense, liability or loss, such insurance shall cover the
Indemnitee to at least the same degree as each other director and/or officer of
the Company.

     Section 8.2 Other Arrangements. The Certificate of Incorporation and Bylaws
                 ------------------
of the Company and the DGCL permit the Company to purchase and maintain
insurance on behalf of the Indemnitee against any Liability asserted against or
incurred by him or any Expenses incurred by him or on his behalf in connection
with actions taken or omissions by the Indemnitee in his Corporate Status,
whether or not the Company would have the power to indemnify the Indemnitee
under this Agreement or under the DGCL, as they may be in effect from time to
time. The purchase of any such insurance shall in no way affect or limit the
rights and obligations of the Indemnitee and the Company hereunder, except as
expressly provided herein, and the execution and delivery of this Agreement by
the Indemnitee and the Company shall in no way affect or limit the rights and
obligations of such parties under or with respect to any other such
Indemnification Arrangement (as defined in Section 9.1).

                                   ARTICLE IX

                 NON-EXCLUSIVITY, SUBROGATION AND MISCELLANEOUS

     Section 9.1 Non-Exclusivity. The rights of the Indemnitee hereunder shall
                 ---------------
not be deemed exclusive of any other rights to which the Indemnitee may at any
time be entitled under any provision of law, the Certificate of Incorporation,
the Bylaws of the Company, as the same may be in effect from time to time, any
other agreement, a vote of stockholders of the Company or a resolution of
directors of the Company or otherwise (each an "Indemnification Arrangement"),
and to the extent that during the term of this Agreement the rights of the
then-existing directors and officers of the Company are more favorable to such
directors or officers than the rights currently provided to the Indemnitee under
this Agreement, the Indemnitee shall be entitled to the full benefits of such
more favorable rights. No amendment, alteration, rescission or replacement of
this Agreement or any provision hereof which would in any way limit the benefits
and protections afforded to an Indemnitee hereby shall be effective as to such
Indemnitee with respect to any act or omission by such Indemnitee in the
Indemnitee's Corporate Status prior to such amendment, alteration, rescission or
replacement.

     Section 9.2 Subrogation. In the event of any payment under this Agreement,
                 -----------
the Company shall be subrogated to the extent of such payment to all of the
rights of recovery of the Indemnitee, who shall execute all documents required
and take all action necessary to secure such rights, including execution of such
documents as are necessary to enable the Company to bring suit to enforce such
rights.

     Section 9.3 Notices. All notices, requests, demands and other
                 -------
communications hereunder shall be in writing and shall be deemed to have been
duly given (i) if delivered by hand, by courier or by telegram and receipted for
by the party to whom said notice or other communication shall have been directed
at the time indicated on such receipt; (ii) if

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by facsimile, at the time shown on the confirmation of such facsimile
transmission; or (iii) if by U.S. certified or registered mail, with postage
prepaid, on the third business day after the date on which it is so mailed: if
to the Indemnitee, to the address shown with the Indemnitee's signature below;
if to the Company to: Primal Solutions, Inc., 18881 Von Karman, Suite 500,
Irvine, California, Attention: President, Facsimile No. (949) 260-1515; or to
such other address as may have been furnished to the Indemnitee by the Company
or to the Company by the Indemnitee, as the case may be.

     Section 9.4 Governing Law. The parties agree that this Agreement shall be
                 -------------
governed by, and construed and enforced in accordance with, the substantive laws
of the State of Delaware, without regard to the principles of choice of laws
thereof.

     Section 9.5 Binding Effect. This Agreement shall be binding upon and inure
                 --------------
to the benefit of the parties hereto and their heirs, executors, administrators,
legal representatives, successors and permitted assigns. This Agreement cannot
be assigned by the Company, either directly or indirectly, by purchase, merger,
consolidation or otherwise, without the express written consent of the
Indemnitee unless the Company shall have received, prior to such assignment,
from any successor or assignee (whether direct or indirect, by purchase, merger,
consolidation or otherwise) a written agreement, in form, scope and substance
reasonably satisfactory to the Indemnitee, expressly to assume and agree to be
bound by and to perform this Agreement in the same manner and to the same extent
as the Company would be required to perform absent such succession or
assignment.

     Section 9.6 Severability. If any provision of this Agreement is held
                 ------------
invalid or unenforceable by any court of competent jurisdiction, the other
provisions of this Agreement will remain in full force and effect. Any provision
of this Agreement held invalid or unenforceable only in part or degree will
remain in full force and effect to the extent not held invalid or unenforceable.
It is the express intention and agreement of the Company and the Indemnitee that
any court of competent jurisdiction that interprets or enforces this Agreement
have full power and authority to reform any provision of this Agreement to
modify the invalid or unenforceable provision to achieve the parties' intent to
provide the Indemnitee with indemnification for Liabilities and Expenses to the
maximum extent permitted by applicable law.

     Section 9.7 Waiver. No termination, cancellation, modification, amendment,
                 ------
deletion, addition or other change in this Agreement, or any provision hereof,
or waiver of any right or remedy herein, shall be effective for any purpose
unless specifically set forth in a writing signed by the party or parties to be
bound thereby. The waiver of any right or remedy with respect to any occurrence
on one occasion shall not be deemed a waiver of such right or remedy with
respect to such occurrence on any other occasion.

     Section 9.8 Entire Agreement. This Agreement constitutes the entire
                 ----------------
agreement and understanding among the parties hereto in reference to the subject
matter hereof; provided, however, that the parties acknowledge and agree that
the DGCL and the

                                       12

<PAGE>

Certificate of Incorporation and Bylaws of the Company and each of its
subsidiaries contain provisions on the subject matter hereof and that this
Agreement is not intended to, and does not, limit the rights or obligations of
the parties hereto pursuant to the DGCL or such instruments, or under any other
contract, agreement, insurance policy or other instrument or document heretofore
or hereafter existing which provides to the Indemnitee any right of
indemnification or reimbursement of any nature whatsoever.

     Section 9.9 Titles. The titles to the articles and sections of this
                 ------
Agreement are inserted for convenience of reference only and should not be
deemed a part hereof or affect the construction or interpretation of any
provisions hereof.

     Section 9.10 Pronouns and Plurals. Whenever the context may require, any
                  --------------------
pronoun used in this Agreement shall include the corresponding masculine,
feminine or neuter forms, and the singular form of nouns, pronouns and verbs
shall include the plural and vice versa.

                                       13

<PAGE>

     Section 9.11 Counterparts. This Agreement may be executed in two or more
                  ------------
counterparts, each of which shall be deemed an original, but all of which
together constitute one agreement binding on all the parties hereto.

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

                             PRIMAL SOLUTIONS, INC.

                             By:      *2*
                                ---------------------
                             Name:    *2*
                                  -------------------

                             Title:   *2*
                                   ------------------

                                      *3*
                             ------------------------
                             as INDEMNITEE

                             Print Name: *3*
                             Address:    *3*

                             Facsimile No.: *4*

     *1*  "William Salway", "Joseph R. Simrell", "David Haynes", respectively

     *2*  For William Salway: "/s/ Joseph R. Simrell", "Joseph R. Simrell",
          "CFO, VP & Secretary"

          For Joseph R. Simrell: "/s/ William Salway", "William Salway",
          "President and CEO"

          For David Haynes:"/s/ William Salway", "William Salway", "President
          and CEO"

     *3*  For William Salway: "/s/ William Salway", "William Salway", "4081
          Meadowlark Drive, Calabasas, CA 91302, (818) 222-1380"

          For Joseph R. Simrell:"/s/ Joseph R. Simrell", "Joseph R. Simrell",
          "15 Rue Cezanne, Coto de Caza, CA 92679, (949) 713-0821"

          For David Haynes: "/s/ David Haynes", "David Haynes", "102 Plaza Via
          Sol, San Clemente, CA 92673"

                                       14

<PAGE>

     *4*  For William Salway:. "(949) 260-1515"

          For Joseph R. Simrell: "(949) 709-3957"

          For David Haynes: "(949) 260-1515"

                                       15<PAGE>

                                                                    Exhibit 10.3

                              EMPLOYMENT AGREEMENT

     This Employment Agreement (this "Agreement") is made as of December 5, 2001
by Primal Solutions, Inc., a Delaware corporation (the "Employer"), and William
Salway, an individual resident in Calabasas, California (the "Executive").

                                    RECITALS

     The Employer desires to employ the Executive, and the Executive wishes to
accept such employment, upon the terms and conditions set forth in this
Agreement.

     For the purposes of this Agreement, the terms defined in Section 9 of this
Agreement have the meanings specified or referred to in such Section 9.

                                    AGREEMENT

     The parties, intending to be legally bound, agree as follows:

1.   EMPLOYMENT TERMS AND DUTIES

1.1  EMPLOYMENT

     The Employer hereby employs the Executive, and the Executive hereby accepts
employment by the Employer, upon the terms and conditions set forth in this
Agreement.

1.2  TERM

     Subject to the provisions of Section 5, the term of the Executive's
employment under this Agreement will commence on the Effective Date and end on
December 31, 2002.

1.3  DUTIES

     The Executive will have such duties as are assigned or delegated to the
Executive in writing by the Board of Directors, and will initially serve as
President and Chief Executive Officer of the Employer. The Executive's job
duties shall include those responsibilities set forth in Exhibit A. The
Executive will devote his entire business time, attention, skill, and energy to
the business of the Employer, will use his best efforts to promote the success
of the Employer's business, and will cooperate fully with the Board of Directors
in the advancement of the best interests of the Employer. Nothing in this
Section 1.3, however, will prevent the Executive from engaging in additional
activities in connection with personal investments and community affairs that
are not inconsistent with the Executive's duties under this Agreement. If the
Executive is elected as a director of the Employer or as a director or officer
of any of its affiliates, the Executive will fulfill his duties as such director
or officer without additional compensation.

<PAGE>

2.   COMPENSATION

2.1  BASIC COMPENSATION

     (a) Salary. The Executive will be paid an annual salary of $200,000 (the
"Salary"), subject to adjustment as provided below, which will be payable in
equal periodic installments according to the Employer's customary payroll
practices, but no less frequently than monthly. The Salary will be reviewed by
the Board of Directors not less frequently than annually, and may be adjusted
upward in the sole discretion of the Board of Directors.

     (b) Benefits. The Executive will, during the Employment Period, be
permitted to participate in such stock option, restricted stock, pension, profit
sharing, bonus, life insurance, hospitalization, major medical, tuition
reimbursement, medical flexible spending accounts and other employee benefit
plans provided by the Employer that may be in effect from time to time, at
levels made available to other similarly situated executives of the Employer,
and to the extent the Executive is eligible under the terms of those plans
(collectively, the "Benefits"). The Benefits shall include life insurance on the
Executive's life in an amount not less than the Executive's Salary.

2.2  INCENTIVE COMPENSATION.

     As additional compensation (the "Incentive Compensation") for the services
to be rendered by the Executive pursuant to this Agreement, the Employer will
pay the Executive with respect to Fiscal Year 2002, commencing on January 1,
2002, such amount as set forth in the compensation plan adopted by the Board of
Directors for such year based on certain performance goals for such period,
provided that such amount shall equal no more than fifty percent (50%) of the
Executive's Salary (the "Compensation Plan"), if, and only if, the Employer
meets or exceeds the performance goals for the Employer established by the Board
of Directors (the "Employer Performance Goal"). The Compensation Plan and the
Employer Performance Goal will be established by the Board of Directors within
60 days from the beginning of Fiscal Year 2002 and will be communicated to the
Executive in writing within 30 days of being so established. Except as set forth
in this Agreement, (i) the Employer shall pay the Executive the Incentive
Compensation for Fiscal Year 2002 if (A) the Executive is continually employed
by the Employer from the Effective Date until December 31, 2002, and (B) the
Employer Performance Goal is met, and (ii) in such event the payment shall be
made no later than April 15, 2003.

3.   FACILITIES AND EXPENSES

     The Employer will furnish the Executive office space, equipment, supplies,
and such other facilities and personnel as the Employer deems necessary or
appropriate for the performance of the Executive's duties under this Agreement.
The Employer will pay the Executive's dues in such professional societies and
organizations as the Board of Directors deems appropriate, and will pay on
behalf of the Executive (or reimburse the Executive for) reasonable expenses
incurred by the Executive at the request of, or on behalf of, the Employer in
the performance of the Executive's duties pursuant to this Agreement, and in
accordance with the

                                      -2-

<PAGE>

Employer's employment policies, including reasonable expenses incurred by the
Executive in attending conventions, seminars, and other business meetings, in
appropriate business entertainment activities, and for promotional expenses.

     In addition, during such period of time that the Executive maintains his
current residence in Calabasas, California, the Employer will (i) reimburse the
Executive for an apartment rental in the Irvine, California vicinity, up to a
maximum of $1,800.00 per month, (ii) pay to the Executive $400.00 per month for
mileage, and (iii) in the event of termination of the Executive's employment
with the Employer, reimburse the Executive for the apartment rental referenced
in subsection (i) above for up to three months after the effective date of
termination of the Executive's employment with the Employer and reimburse the
Executive up to a maximum of $1,500.00 for moving expenses incurred by the
Executive within such period. The Executive must file expense reports with
respect to expenses in accordance with the Employer's policies.

4.   VACATIONS AND HOLIDAYS

     The Executive will be entitled to four weeks' paid vacation each calendar
year in accordance with the vacation policies of the Employer in effect for its
executive officers from time to time. Vacation must be taken by the Executive at
such time or times as approved by the Board of Directors. The Executive will
also be entitled to the paid holidays set forth in the Employer's policies. Any
unused vacation days may be carried over to the subsequent calendar year.

5.   TERMINATION

5.1  EVENTS OF TERMINATION

     (a) Termination. The Employment Period, the Executive's Basic Compensation
and Incentive Compensation, and any and all other rights of the Executive under
this Agreement or otherwise as an employee of the Employer will terminate
(except as otherwise provided in this Section 5):

          (i) upon the death of the Executive;

          (ii) upon the disability of the Executive (as defined in Section 5.2)
     for 120 consecutive days, or 180 days during any twelve-month period,
     immediately upon notice from either party to the other;

          (iii) for cause (as defined in Section 5.3), immediately upon notice
     from the Employer to the Executive, or at such later time as such notice
     may specify;

          (iv) for good reason (as defined in Section 5.4) upon not less than
     thirty days' prior notice from the Executive to the Employer; or

          (v) without cause immediately upon notice from either party to the
     other.

                                      -3-

<PAGE>

     (b) Notice of Termination. Any termination of the Executive's employment by
the Employer (or its successor) or by the Executive (other than termination
based on the Executive's death), pursuant to this Agreement, shall be
communicated by the terminating party in a written notice to the other party
hereto. Such written notice shall (i) set forth the specific termination
provision in this Agreement relied upon, if applicable, (ii) set forth in
reasonable detail the facts and circumstances claimed to provide a basis for
termination of the Executive's employment under the provision so indicated, and
(iii) set forth the date the Executive's employment with the Employer shall
terminate.

5.2  DEFINITION OF DISABILITY

     The Executive will be deemed to have a "disability" if, for physical or
mental reasons, the Executive is unable to perform the essential functions of
the Executive's duties under this Agreement, with or without reasonable
accommodation. The Executive shall be provided with short term and long term
disability benefits in accordance with the terms of the Employer's plans then in
effect.

5.3  DEFINITION OF "CAUSE"

     "Cause" means: (a) the Executive's material breach of this Agreement;
provided, however, that the Executive shall have thirty (30) days to remedy the
breach after receipt of written notice from the Employer that the breach has
occurred if the breach is susceptible of cure; (b) the Executive's failure to
perform (other than by reason of disability) his duties hereunder in any
material respect in the good faith determination of the Board of Directors and,
after receiving written notice to such effect from the Employer, fails to cure
the problem within ten (10) days of receipt of such written notice; (c) the
Executive's gross negligence or willful misconduct in the performance of his
duties and responsibilities to the Employer, such duties and responsibilities
not to be unreasonably imposed; (d) the Executive's appropriation (or attempted
appropriation) of a material business opportunity of the Employer, including
attempting to secure or securing any personal profit in connection with any
transaction entered into on behalf of the Employer; (e) the Executive's
misappropriation (or attempted misappropriation) of any of the Employer's funds
or property; or (f) the conviction of, or the entering of a guilty plea or plea
of no contest by the Executive with respect to, a felony.

5.4  DEFINITION OF "GOOD REASON"

     "Good reason" means any of the following: (a) the Employer's material
breach of this Agreement or any other agreement between Executive and Employer
concerning Executive's employment with the Employer; (b) the assignment of the
Executive without his express and voluntary written consent to a title, status,
overall position, responsibilities, or duties, reporting relationship, and
general working environment of a materially lesser status or degree of
responsibility than his title, status, overall position, responsibilities, or
duties, reporting relationship, and general working environment at the Effective
Date; (c) the relocation by the Employer of the Executive's office more than 50
miles from its location as of the Effective Date;

                                      -4-

<PAGE>

(d) any failure by the Employer to obtain the assumption of any material
agreement between the Executive and the Employer concerning Executive's
employment by any successor of the Employer or assignee of substantially all of
the business of the Employer; or (e) any material change by the Employer in the
Benefits or Incentive Compensation offered to the Executive from those in which
the Executive is participating on the Effective Date, or the taking of any
action by the Employer which would materially and adversely affect the
Executive's participation in or reduce the Executive's benefits under any of the
Benefits or Incentive Compensation plans or deprive the Executive of any fringe
benefit then enjoyed by the Executive, provided, however, that nothing contained
herein shall be deemed to permit termination by the Executive for Good Reason if
the Employer offers a range of benefit plans and programs to the Executive
which, taken as a whole, are at least comparable to the Benefits and Incentive
Compensation in which the Executive is participating on the Effective Date.

5.5  TERMINATION PAY

     Effective upon the termination of the Executive's employment, the Employer
will be obligated to pay the Executive (or, in the event of his death, his
designated beneficiary as defined below) only such compensation as is provided
in Section 3(iii) and this Section 5.5, or, if applicable, as provided in the
Change of Control Agreement which is being entered into concurrently herewith
between the Executive and the Employer (the "Change in Control Agreement"), and
in lieu of all other amounts and in settlement and complete release of all
claims the Executive may have against the Employer. If the Executive receives
payments under the Change of Control Agreement, then he will not also receive
payments under this Agreement. The Employer may, as a condition to the Executive
receiving any unvested pay or benefits under this Section 5.5, require the
Executive to execute a release of all claims the Executive may have against the
Employer or its affiliates arising from the Executive's employment with the
Employer or the termination thereof in a form reasonably satisfactory to the
Employer. Except as set forth herein, all amounts to be paid under this Section
5.5 shall be paid in equal periodic installments according to the Employer's
customary payroll practices, including without limitation any payments of
Incentive Compensation.

     For purposes of this Section 5.5, the Executive's designated beneficiary
will be such individual beneficiary or trust, located at such address, as the
Executive may designate by notice to the Employer from time to time or, if the
Executive fails to give notice to the Employer of such a beneficiary, the
Executive's estate. Notwithstanding the preceding sentence, the Employer will
have no duty, in any circumstances, to attempt to open an estate on behalf of
the Executive, to determine whether any beneficiary designated by the Executive
is alive or to ascertain the address of any such beneficiary, to determine the
existence of any trust, to determine whether any person or entity purporting to
act as the Executive's personal representative (or the trustee of a trust
established by the Executive) is duly authorized to act in that capacity, or to
locate or attempt to locate any beneficiary, personal representative, or
trustee.

     (a) Termination Without Cause or By the Executive for Good Reason. If
Employer terminates the Executive's employment without cause or the Executive
terminates his employment for good reason, the Employer will pay the Executive
(i) the Executive's Salary for

                                      -5-

<PAGE>

the remainder, if any, of the calendar month in which such termination is
effective, and for the remainder of this Agreement or six months, whichever is
greater, (ii) that portion of the Executive's Incentive Compensation, if any,
for the Fiscal Year during which the termination is effective, prorated through
the date of termination, as described in Section 5.5(f), (iii) accrued vacation
through the date of termination, and (iv) Incentive Compensation accrued and
unpaid from the previous Fiscal Year, if any.

     (b) Termination by the Employer for Cause or Voluntarily by the Executive.
If the Employer terminates the Executive's employment for cause, or the
Executive voluntarily terminates his employment other than for good reason or
disability, the Employer will pay the Executive (i) his Salary and accrued
vacation through the date such termination is effective, and (ii) accrued and
unpaid Incentive Compensation, if any, from the previous Fiscal Year, but the
Executive will not be entitled to any Incentive Compensation for the Fiscal Year
during which such termination occurs. In addition, in the event that the
Employer terminates the Executive's employment for cause pursuant to Section
5.3(b), the Employer shall pay the Executive his Salary for a period of three
months after the date of termination.

     (c) Termination upon Disability. Upon the disability of the Executive for
120 consecutive days, or 180 days during any twelve-month period, the
Executive's employment may be terminated by either party, and upon such
termination the Employer will pay the Executive (i) that part of the Executive's
Incentive Compensation, if any, for the Fiscal Year during which the disability
occurs, prorated through the end of the calendar month during which the
disability is deemed to have occurred under Section 5.2, as described in Section
5.5(f), (ii) accrued vacation through the date of termination, (iii) accrued and
unpaid Incentive Compensation, if any, from the previous Fiscal Year, (iv) his
Salary through the date such termination is effective, and (v) the payments set
forth in Section 6.1.

     (d) Termination upon Death. If Executive's employment is terminated because
of the Executive's death, the Employer will pay the Executive's designated
beneficiary (i) the Executive's Salary through the end of the calendar month in
which his death occurs, (ii) accrued vacation through the date of termination,
(iii) accrued and unpaid Incentive Compensation, if any, from the previous
Fiscal Year, and (iv) that part of the Executive's Incentive Compensation, if
any, for the Fiscal Year during which his death occurs, prorated through the end
of the calendar month during which his death occurs, as described in Section
5.5(f).

     (e) Benefits.

          (i) If the Executive's employment hereunder is terminated by the
     Employer without cause or by the Executive for Good Reason, then the
     Employer will provide and pay for continued medical, dental, life, and
     disability insurance coverage for the Executive and the Executive's
     dependants on the same terms as in effect at the time of termination of the
     Executive's employment, including general premium increases, for the period
     from the date of termination until the Executive obtains replacement
     coverage through other employment, or for a period consistent with Section
     5.5(a)(i), whichever is less.

                                      -6-

<PAGE>

          (ii) If the Executive's employment hereunder is terminated (A) by
     death or disability, (B) because this Agreement expires by its terms and
     the Executive's employment with the Employer is not continued, or (C) by
     the Employer for cause pursuant to Section 5.3(b), then the Employer will
     provide and pay for continued medical and dental coverage for the
     Executive, if applicable, and the Executive's dependents, on the same terms
     as in effect at the time of termination of the Executive's employment,
     including general premium increases, for a period of 90 days after the
     effective date of termination. If such coverage is pursuant to COBRA, the
     Employer's obligations hereunder will be contingent upon the Executive or
     his dependents, as applicable, executing all documents required to obtain
     such coverage.

          (iii) Except as set forth in this Section 5.5(e), the Executive's
     accrual of, or participation in plans providing for, the Benefits will
     cease at the effective date of the termination of his employment, and the
     Executive will be entitled to accrued Benefits pursuant to such plans only
     as provided in such plans.

     (f) Incentive Compensation. That portion of the Executive's Incentive
Compensation to be paid pursuant to subsections (a)(ii), (c)(i), or (d)(iv)
above, shall be paid only if the Employer meets the Employer Performance Goal
for the Fiscal Year during which the termination is effective. If such Employer
Performance Goal is met, then the amount due shall be paid no later than April
15, 2003. Notwithstanding the foregoing, if the Board of Directors in its
discretion determines that the Employer does not have sufficient available cash
to pay such amount on such date, the Board of Directors may defer, without
interest, payment of any or all of such amount, to not later than December 31,
2003, provided however, that payments to the Executive may only be deferred to
the extent that payments to continuing employees of the Employer entitled to
such payments are deferred. If the Executive is entitled to payment of Incentive
Compensation pursuant to this Section 5.5(f), then on or before March 15, 2003,
the Employer shall provide the Executive with a written notice (i) setting forth
financial data based on the audited financial statements of the Employer
sufficient for the Executive to determine if the Employer Performance Goal was
met, and the amount of Incentive Compensation owed to the Executive, and (ii) if
Incentive Compensation is owed to the Executive, stating a good faith
determination by the Board of Directors of the payment schedule for the amount
owed.

6.   DISABILITY

6.1  DISABILITY PAYMENTS

     Upon the disability of the Executive, the Employer will pay the Executive
(i) his Salary for the lesser of (A) 90 days and (B) the date on which
disability insurance benefits commence under the disability insurance coverage
furnished by the Employer to the Executive or under any state disability
program, and (ii) if the Executive qualifies for such disability insurance
benefits, for a period of up to 180 days, the difference between (A) the
Executive's Salary at the time the disability is deemed to have occurred under
Section 5.2, and (B) the insurance benefits under such disability insurance
coverage or state disability program, provided that the period in which

                                      -7-

<PAGE>

the Employer is required to make payments under subsections (i) and (ii) shall
not in the aggregate exceed 180 days in any 12-month period.

7.   NON-DISCLOSURE COVENANT; EMPLOYEE INVENTIONS

7.1  ACKNOWLEDGMENTS BY THE EXECUTIVE

     The Executive acknowledges that (a) during the Employment Period and as a
part of his employment, the Executive will be afforded access to Confidential
Information; (b) public disclosure of such Confidential Information could have
an adverse effect on the Employer and its business; (c) because the Executive
possesses substantial technical expertise and skill with respect to the
Employer's business, the Employer desires to obtain exclusive ownership of each
Employee Invention, and the Employer will be at a substantial competitive
disadvantage if it fails to acquire exclusive ownership of each Employee
Invention; and (d) the provisions of this Section 7 are reasonable and necessary
to prevent the improper use or disclosure of Confidential Information and to
provide the Employer with exclusive ownership of all Employee Inventions.

7.2  AGREEMENTS OF THE EXECUTIVE

     In consideration of the compensation and benefits to be paid or provided to
the Executive by the Employer under this Agreement, the Executive covenants as
follows:

     (a) Confidentiality.

          (1) During and following the Employment Period, the Executive will
     hold in confidence the Confidential Information and will not use or
     disclose it to any person except with the specific prior written consent of
     the Employer or except as otherwise expressly permitted by the terms of
     this Agreement.

          (2) Any trade secrets of the Employer will be entitled to all of the
     protections and benefits under applicable state trade secret and any other
     applicable law. If any information that the Employer deems to be a trade
     secret is found by a court of competent jurisdiction not to be a trade
     secret for purposes of this Agreement, such information will, nevertheless,
     be considered Confidential Information for purposes of this Agreement.

          (3) None of the foregoing obligations and restrictions applies to any
     part of the Confidential Information that the Executive demonstrates was or
     became generally available to the public other than as a result of a
     disclosure by the Executive.

          (4) The Executive will not remove from the Employer's premises (except
     to the extent such removal is for purposes of the performance of the
     Executive's duties at home or while traveling, or except as otherwise
     specifically authorized by the Employer) any Employer document, record,
     notebook, plan, model,

                                      -8-

<PAGE>

     component, device, or computer software or code, whether embodied in a disk
     or in any other form (collectively, the "Proprietary Items"). The Executive
     recognizes that, as between the Employer and the Executive, all of the
     Proprietary Items, whether or not developed by the Executive, are the
     exclusive property of the Employer. Upon termination of this Agreement by
     either party, or upon the request of the Employer during the Employment
     Period, the Executive will return to the Employer all of the Proprietary
     Items in the Executive's possession or subject to the Executive's control,
     and the Executive shall not retain any copies, abstracts, sketches, or
     other physical embodiment of any of the Proprietary Items.

     (b) Employee Inventions. During the Employment Period every Employee
Invention will belong exclusively to the Employer, subject only to the exception
set forth below. The Executive acknowledges that all of the Executive's written
work product, works of authorship, and other Employee Inventions are works made
for hire and the property of the Employer, including any copyrights, patents,
semiconductor mask protection, or other intellectual property rights pertaining
thereto. If it is determined that any such works are not works made for hire,
the Executive hereby assigns to the Employer all of the Executive's right,
title, and interest, including all rights of copyright, patent, semiconductor
mask protection, and other intellectual property rights, to or in such Employee
Inventions. The Executive covenants that he will promptly:

          (1) disclose to the Employer in writing any Employee Invention;

          (2) assign to the Employer or to a party designated by the Employer,
     at the Employer's request and without additional compensation, all of the
     Executive's rights to the Employee Invention for the United States and all
     foreign jurisdictions;

          (3) execute and deliver to the Employer such applications,
     assignments, and other documents as the Employer may request in order to
     apply for and obtain patents or other registrations with respect to any
     Employee Invention in the United States and any foreign jurisdictions;

          (4) sign all other papers necessary to carry out the above
     obligations; and

          (5) give testimony and render any other assistance (but without
     expense to the Executive) in support of the Employer's rights to any
     Employee Invention.

This Agreement shall not apply to any invention which qualifies fully under the
provisions of Section 2870 of the California Labor Code, which includes
inventions developed entirely on Executive's own time without using the
Employer's equipment, supplies, facilities or trade secret information, except
for those ideas and inventions that either; (i) relate, at the time of
conception or reduction to practice of the invention, to the Employer's
business, or actual or demonstrably anticipated research or development of the
Employer, or (ii) result from any work performed by the Executive for the
Employer.

                                      -9-

<PAGE>

7.3  DISPUTES OR CONTROVERSIES

     The Executive recognizes that should a dispute or controversy arising from
or relating to this Agreement be submitted for adjudication to any court,
arbitration panel, or other third party, the preservation of the secrecy of
Confidential Information may be jeopardized. To the extent allowed by law, all
pleadings, documents, testimony, and records relating to any such Confidential
Information will be maintained in secrecy and will be available for inspection
by the Employer, the Executive, and their respective attorneys and experts, who
will agree, in advance and in writing, to receive and maintain all such
information in secrecy, except as may be limited by them in writing.

8.   NON-INTERFERENCE

8.1  ACKNOWLEDGMENTS BY THE EXECUTIVE

     The Executive acknowledges that: (a) the services to be performed by him
under this Agreement are of a special, unique, unusual, extraordinary, and
intellectual character; (b) the Employer's business is national in scope and its
products are marketed throughout the United States; (c) the Employer competes
with other businesses that are or could be located in any part of the United
States; and (d) the provisions of this Section 8 are reasonable and necessary to
protect the Employer's business.

8.2  COVENANTS OF THE EXECUTIVE

     In consideration of the acknowledgments by the Executive, and in
consideration of the compensation and benefits to be paid or provided to the
Executive by the Employer, the Executive covenants that he will not, directly or
indirectly:

     (a) whether for the Executive's own account or for the account of any other
person, at any time during the Employment Period and the Post-Employment Period,
solicit business of the same or similar type being carried on by the Employer,
from any person known by the Executive to be a customer of the Employer, whether
or not the Executive had personal contact with such person during and by reason
of the Executive's employment with the Employer; or

     (b) whether for the Executive's own account or the account of any other
person (i) at any time during the Employment Period and the Post-Employment
Period, solicit as an employee, independent contractor, or otherwise, any person
who is an employee of the Employer or in any manner induce or attempt to induce
any employee of the Employer to terminate his or her employment with the
Employer; or (ii) at any time during the Employment Period and the
Post-Employment Period, interfere with the Employer's relationship with any
person, including any person who at any time during the Employment Period was an
employee, contractor, supplier, or customer of the Employer.

     If the Executive breaches any of the terms and provisions of this Section
8.2 during the Post-Employment Period, the Employer may, in addition to any
other remedies that the Employer

                                      -10-

<PAGE>

may have for any such breach, immediately terminate the payment of any severance
payments or benefits then being paid to the Executive pursuant to Section 5.5,
other than payments vested prior to the date of termination of the Executive's
employment.

     For purposes of this Section 8.2, the term "Post-Employment Period" means
the one-year period beginning on the date of termination of the Executive's
employment with the Employer.

     If any covenant in this Section 8.2 is held to be unreasonable, arbitrary,
or against public policy, such covenant will be considered to be divisible with
respect to scope, time, and geographic area, and such lesser scope, time, or
geographic area, or all of them, as a court of competent jurisdiction may
determine to be reasonable, not arbitrary, and not against public policy, will
be effective, binding, and enforceable against the Executive.

     The Executive will, while the covenant under this Section 8.2 is in effect,
give notice to the Employer, within ten days after accepting any other
employment, of the identity of the Executive's employer. The Employer may notify
such employer that the Executive is bound by this Agreement and, at the
Employer's election, furnish such employer with a copy of this Agreement or
relevant portions thereof.

     The terms and provisions of this Section 8.2 shall not be applicable to the
Executive if the Executive terminates his employment with the Employer for good
reason or if the Executive's employment with the Employer is terminated without
cause.

9.   DEFINITIONS

     For the purposes of this Agreement, the following terms have the meanings
specified or referred to in this Section 9.

     "Agreement"--this Employment Agreement.

     "Basic Compensation"--Salary and Benefits.

     "Benefits"--as defined in Section 2.1(b).

     "Board of Directors"--the board of directors of the Employer.

     "Claim"--as defined in Section 10.9(a).

     "Confidential Information"--any and all:

          (a) trade secrets concerning the business and affairs of the Employer
     and its affiliates, product specifications, data, know-how, formulae,
     compositions, processes, designs, sketches, photographs, graphs, drawings,
     samples, inventions and ideas, past, current, and planned research and
     development, current and planned manufacturing or distribution methods and
     processes, customer lists,

                                      -11-

<PAGE>

     current and anticipated customer requirements, price lists, market studies,
     business plans, computer software and programs (including object code and
     source code), computer software and database technologies, systems,
     structures, and architectures (and related formulae, compositions,
     processes, improvements, devices, know-how, inventions, discoveries,
     concepts, ideas, designs, methods and information), and any other
     information of the Employer or its affiliates, however documented, that is
     a trade secret within the meaning of applicable state trade secret law; and

          (b) information concerning the business and affairs of the Employer
     and its affiliates (which includes historical financial statements,
     financial projections and budgets, historical and projected sales, capital
     spending budgets and plans, the names and backgrounds of key personnel,
     personnel training and techniques and materials), however documented; and

          (c) notes, analysis, compilations, studies, summaries, and other
     material prepared by or for the Employer or its affiliates containing or
     based, in whole or in part, on any information included in the foregoing.

     "disability"--as defined in Section 5.2.

     "Effective Date"--the date stated in the first paragraph of this Agreement.

     "Employee Invention"--any idea, invention, technique, modification,
process, or improvement (whether patentable or not), any industrial design
(whether registerable or not), any mask work, however fixed or encoded, that is
suitable to be fixed, embedded or programmed in a semiconductor product (whether
recordable or not), and any work of authorship (whether or not copyright
protection may be obtained for it), created, conceived, or developed by the
Executive, either solely or in conjunction with others, during the Employment
Period, or a period that includes a portion of the Employment Period, that
relates in any way to, or is useful in any manner in, the business then being
conducted or proposed to be conducted by the Employer or its affiliates, and any
such item created by the Executive, either solely or in conjunction with others,
following termination of the Executive's employment with the Employer, that is
based upon or uses Confidential Information.

     "Employment Period"--the term of the Executive's employment with the
Employer or its affiliates.

     "Fiscal Year"--the Employer's fiscal year, as it exists on the Effective
Date or as changed from time to time.

     "cause"--as defined in Section 5.3.

     "good reason"--as defined in Section 5.4.

                                      -12-

<PAGE>

     "Incentive Compensation"--as defined in Section 2.2.

     "person"--any individual, corporation (including any non-profit
corporation), general or limited partnership, limited liability company, joint
venture, estate, trust, association, organization, governmental body or other
entity.

     "Post-Employment Period"--as defined in Section 8.2.

     "Proprietary Items"--as defined in Section 7.2(a)(4).

     "Salary"--as defined in Section 2.1(a).

10.  GENERAL PROVISIONS

10.1 INJUNCTIVE RELIEF AND ADDITIONAL REMEDY

     The Executive acknowledges that the injury that would be suffered by the
Employer as a result of a breach of the provisions of this Agreement (including
any provision of Sections 7 and 8) would be irreparable and that an award of
monetary damages to the Employer for such a breach would be an inadequate
remedy. Consequently, the Employer will have the right, in addition to any other
rights it may have, to obtain injunctive relief to restrain any breach or
threatened breach or otherwise to specifically enforce any provision of this
Agreement, and the Employer will not be obligated to post bond or other security
in seeking such relief. Without limiting the Employer's rights under this
Section 10 or any other remedies of the Employer, if the Executive breaches any
of the provisions of Section 7 or 8, the Employer will have the right to cease
making any payments otherwise due to the Executive under this Agreement or the
Change in Control Agreement.

10.2 COVENANTS OF SECTIONS 7 AND 8 ARE ESSENTIAL AND INDEPENDENT COVENANTS

     The covenants by the Executive in Sections 7 and 8 are essential elements
of this Agreement, and without the Executive's agreement to comply with such
covenants, the Employer would not have entered into this Agreement or employed
the Executive. The Employer and the Executive acknowledge that they have been
advised of their right to independently consult with their respective counsel
concerning the reasonableness and propriety of such covenants, with specific
regard to the nature of the business conducted by the Employer.

     The Executive's covenants in Sections 7 and 8 are independent covenants and
the existence of any claim by the Executive against the Employer under this
Agreement or otherwise will not excuse the Executive's breach of any covenant in
Section 7 or 8.

     If the Executive's employment hereunder expires or is terminated, this
Agreement will continue in full force and effect as is necessary or appropriate
to enforce the covenants and agreements of the Executive in Sections 7 and 8.

                                      -13-

<PAGE>

10.3 REPRESENTATIONS AND WARRANTIES BY THE EXECUTIVE

     The Executive represents and warrants to the Employer that the execution
and delivery by the Executive of this Agreement do not, and the performance by
the Executive of the Executive's obligations hereunder will not, with or without
the giving of notice or the passage of time, or both: (a) violate any judgment,
writ, injunction, or order of any court, arbitrator, or governmental agency
applicable to the Executive; or (b) conflict with, result in the breach of any
provisions of or the termination of, or constitute a default under, any
agreement to which the Executive is a party or by which the Executive is or may
be bound.

10.4 OBLIGATIONS CONTINGENT ON PERFORMANCE

     The obligations of the Employer hereunder, including its obligation to pay
the compensation provided for herein, are contingent upon the Executive's
performance of the Executive's obligations hereunder.

10.5 WAIVER

     The rights and remedies of the parties to this Agreement are cumulative and
not alternative. Neither the failure nor any delay by either party in exercising
any right, power, or privilege under this Agreement will operate as a waiver of
such right, power, or privilege, and no single or partial exercise of any such
right, power, or privilege will preclude any other or further exercise of such
right, power, or privilege or the exercise of any other right, power, or
privilege. To the maximum extent permitted by applicable law, (a) no claim or
right arising out of this Agreement can be discharged by one party, in whole or
in part, by a waiver or renunciation of the claim or right unless in writing
signed by the other party; (b) no waiver that may be given by a party will be
applicable except in the specific instance for which it is given; and (c) no
notice to or demand on one party will be deemed to be a waiver of any obligation
of such party or of the right of the party giving such notice or demand to take
further action without notice or demand as provided in this Agreement.

10.6 BINDING EFFECT; DELEGATION OF DUTIES PROHIBITED

     This Agreement shall inure to the benefit of, and shall be binding upon,
the parties hereto and their respective successors, assigns, heirs, and legal
representatives, including any entity with which the Employer may merge or
consolidate or to which all or substantially all of its assets may be
transferred. The duties and covenants of the Executive under this Agreement,
being personal, may not be delegated.

10.7 NOTICES

     All notices, consents, waivers, and other communications under this
Agreement must be in writing and will be deemed to have been duly given when (a)
delivered by hand (with written confirmation of receipt), (b) sent by facsimile
(with written confirmation of receipt), provided that a copy is mailed by
registered mail, return receipt requested, or (c) when received by the

                                      -14-

<PAGE>

addressee, if sent by a nationally recognized overnight delivery service
(receipt requested), in each case to the appropriate address and facsimile
number set forth below (or to such other address and facsimile number as a party
may designate by notice to the other party pursuant to the terms of this Section
10.7):

          If to the Executive:

          William Salway
          4081 Meadowlark Drive
          Calabasas, California  91302
          Facsimile No.:  (818) 222-1456

          If to the Employer:

          Primal Solutions, Inc.
          18881 Von Karman Avenue, Suite 500
          Irvine, California 92612
          Attention:  Chief Financial Officer
          Facsimile No.:  (949) 221-8590

10.8 ENTIRE AGREEMENT; AMENDMENTS

     This Agreement, along with the Change of Control Agreement, contains the
entire agreement between the parties with respect to the subject matter hereof
and supersedes all prior agreements and understandings, oral or written, between
the parties hereto with respect to the subject matter hereof, including without
limitation, that certain Employment Agreement between the Executive and the
Employer, dated September 1, 2001. This Agreement may not be amended orally, but
only by an agreement in writing signed by the parties hereto.

10.9 ARBITRATION OF DISPUTES

     (a) Exclusive Remedy. Except as set forth in Section 10.9(c), arbitration
shall be the sole and exclusive remedy for any dispute, claim, or controversy of
any kind or nature (a "Claim") arising out of, related to, or connected with the
Executive's employment relationship with the Employer, or the termination of the
Executive's employment relationship with the Employer, including any Claim
against any parent, subsidiary, or affiliated entity of the Employer, or any
director, officer, general or limited partner, employee or agent of the Employer
or of any such parent, subsidiary or affiliated entity.

     (b) Claims Subject to Arbitration. This agreement to arbitrate specifically
includes (without limitation) any Claim for breach of this Agreement; any Claim
under or relating to any federal, state or local law or regulation prohibiting
discrimination, harassment or retaliation based on race, color, religion,
national origin, sex, age, disability or any other condition or characteristic
protected by law; demotion, discipline, termination or other adverse action in
violation of any contract, law or public policy; entitlement to wages or other
economic compensation; and any Claim for personal, emotional, physical, economic
or other injury.

                                      -15-

<PAGE>

     (c) Claims Not Subject to Arbitration. This Section 10.9 does not preclude
either party from making an application to a court of competent jurisdiction
for: (a) provisional remedies (e.g., temporary restraining order or preliminary
injunction) pursuant to California Code of Civil Procedure section 1281.8; or
(b) a temporary restraining order or injunction under California Code of Civil
Procedure section 527.8 in order to obtain protection against employee violence
or threats of violence. This Section 10.9 also does not apply to any claims by
Executive: (i) for workers' compensation benefits; (ii) for unemployment
insurance benefits; (iii) under a benefit plan where the plan specifies a
separate arbitration procedure; (iv) filed with an administrative agency which
are not legally subject to arbitration under this Agreement; or (v) which are
otherwise expressly prohibited by law from being subject to arbitration under
this Agreement.

     (d) Procedure. The arbitration proceedings shall be conducted in Orange
County, California. Any Claim submitted to arbitration shall be decided by a
single, neutral arbitrator (the "Arbitrator"). The parties to the arbitration
shall mutually select the Arbitrator not later than 45 days after service of the
demand for arbitration. If the parties for any reason do not mutually select the
Arbitrator within the 45 day period, then any party may apply to any court of
competent jurisdiction to appoint a retired judge as the Arbitrator. The parties
agree that arbitration shall be conducted in accordance with California Code of
Civil Procedure sections 1280 et seq., except as modified in this Agreement. The
Arbitrator shall apply the substantive federal, state, or local law and statute
of limitations governing any Claim submitted to arbitration. In ruling on any
Claim submitted to arbitration, the Arbitrator shall have the authority to award
only such remedies or forms of relief as are provided for under the substantive
law governing such Claim. The Arbitrator shall issue a written decision
revealing the essential findings and conclusions on which the decision is based.
Judgment on the Arbitrator's decision may be entered in any court of competent
jurisdiction.

     (e) Costs. The Employer shall be responsible for paying the fees and costs
incurred in the arbitration (e.g., filing fees, transcript costs and
Arbitrator's fees). The parties shall be responsible for their own attorneys'
fees and costs, except that the Arbitrator shall have the authority to award
attorneys' fees and costs to the prevailing party in accordance with the
applicable law governing the dispute.

     (f) Interpretation of Arbitrability. The Arbitrator, and not any federal or
state court, shall have the exclusive authority to resolve any issue relating to
the interpretation, formation or enforceability of this Agreement, or any issue
relating to whether a Claim is subject to arbitration under this Agreement,
except that any party may bring an action in any court of competent jurisdiction
to compel arbitration in accordance with the terms of this Agreement.

10.10 HEADINGS; CONSTRUCTION

     The headings in this Agreement are provided for convenience only and will
not affect its construction or interpretation. All references to "Section" or
"Sections" refer to the corresponding Section or Sections of this Agreement
unless otherwise specified. All words used in this Agreement will be construed
to be of such gender or number as the circumstances require.

                                      -16-

<PAGE>

Unless otherwise expressly provided, the word "including" does not limit the
preceding words or terms.

10.11 SEVERABILITY

     If any provision of this Agreement is held invalid or unenforceable by any
court of competent jurisdiction or Arbitrator, then to the extent that the
rights or obligations of the parties under this Agreement will not be materially
and adversely effected thereby, the other provisions of this Agreement will
remain in full force and effect. Any provision of this Agreement held invalid or
unenforceable only in part or degree will remain in full force and effect to the
extent not held invalid or unenforceable.

10.12 COUNTERPARTS

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

10.13 GOVERNING LAW

     This Agreement shall be governed by and construed in accordance with the
laws of the State of California applicable to contracts entered into and wholly
to be performed within the State of California. If any legal action is necessary
to enforce the terms and conditions of this Agreement, the prevailing party
shall be entitled to recover all costs of suit and reasonable attorneys' fees as
determined by the court or arbitrator.

                  [Remainder of Page Intentionally Left Blank]

                                      -17-

<PAGE>

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

                                EXECUTIVE

                                /s/ William Salway
                                ------------------------------------------------
                                William Salway

                                EMPLOYER

                                PRIMAL SOLUTIONS, INC.,
                                a Delaware corporation

                                By: /s/ Louis Delmonico
                                  ----------------------------------------------

                                Name: Louis Delmonico
                                    --------------------------------------------

                                Title: Director, Chairman Compensation Committee
                                     -------------------------------------------

                                      -18-

<PAGE>

                                    Exhibit A

                             Chief Executive Officer
                                 Job Description

                                      -19-

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