Document:

Exhibit
10.4

August 9, 2006

Mr.  Sam Gilson

159 Barberry Lane

Ponte Vedra Beach, FL 32082

Re:          Option Vesting on Change of Control

Dear Sam:

This letter agreement confirms
our agreement regarding option vesting upon the occurrence of certain events or
conditions.

As discussed, to the
extent permitted under applicable law, upon the occurrence of (i) a Change of
Control (as defined below), (ii) you are terminated without Cause (as defined
below), or (iii) you terminate your employment for Good Reason (as defined
below), all outstanding unvested stock options granted to you by Primal
Solutions, Inc. (“Primal”) shall accelerate and vest and be exercisable.

“Change of Control”
shall mean in a transaction or series of related transactions, (i) the sale of
all or substantially all of the assets of the Company, (ii) the acquisition by
any person, entity or group within the meaning of Section 13(d) or 14(d) of the
Securities Exchange Act of 1934 (“Exchange Act”) or any comparable
successor provisions of the beneficial ownership (within the meaning of Rule
13d-3 promulgated under the Exchange Act, or comparable successor rules) of
more than 50% of the outstanding capital stock of Primal, or (iii) the merger,
consolidation or other reorganization of Primal; provided, however,
that any such merger, consolidation or other reorganization of Primal whereby
securityholders of the Company immediately prior to such transaction continue
to own not less than 50% of the capital stock in the surviving company
following such transaction shall not be deemed to be a Change of Control.  Additionally, a Change of Control shall be
deemed to have occurred upon (i) Primal entering into a “going private”
transaction, (ii) the deregistration of Primal’s securities under the
Exchange Act, or (iii) Primal otherwise no longer being subject to the
reporting requirements under the Exchange Act and no longer filing periodic
reports under such Act.

“Good Reason”
shall mean any of the following: (a) a material breach by Primal of any
agreement between you and Primal concerning your employment with Primal; provided,
however, that Primal shall have ten (10) days to remedy the breach after
receipt of written notice from you that the breach has occurred if the breach
is susceptible of cure; (b) the assignment without your express and voluntary
written consent to a title, status, overall position, responsibilities, duties,
reporting relationship, or general working environment of a materially lesser
status or degree of responsibility than your title, status, overall position,
responsibilities, duties, reporting relationship, and general working
environment at the effective date of this letter agreement; (c) the requirement
by Primal that you relocate your personal residence outside the metropolitan
Orange County, California area; (d) the relocation by Primal of your office
more 

than 50 miles from its location as of the effective
date of this letter agreement; (e) any failure by Primal to obtain the
assumption of any material written agreement between you and Primal concerning
your employment by any successor of Primal or assignee of substantially all of
the business of Primal; or (f) any material change by Primal in the benefits or
incentive compensation offered to you from those in which you are participating
on the effective date of this letter agreement, or the taking of any action by
Primal which would materially and adversely affect your participation in or
reduce your benefits under any of the benefits or incentive compensation plans
of Primal or deprive you of any fringe benefit then enjoyed by you; provided,
however, that nothing contained in this subparagraph (f) shall be deemed
to permit termination by you for Good Reason if Primal offers a range of
benefit plans and programs to you which, taken as a whole, are at least
comparable to the benefits and incentive compensation in which you are
participating on the effective date of this letter agreement.

“Cause”
shall mean (a) your failure to perform (other than by reason of disability)
your duties and responsibilities to Primal in any material respect in the good
faith determination of the Board of Directors and, after receiving written
notice to such effect from Primal, you fail to cure the problem within ten (10)
days of receipt of such written notice; (b) your gross negligence or willful
misconduct in the performance of your duties and responsibilities to Primal,
such duties and responsibilities not to be unreasonably imposed; (c) your
appropriation (or attempted appropriation) of a material business opportunity
of Primal’s, including attempting to secure or securing any personal profit in
connection with any transaction entered into on behalf of Primal; (d) your
misappropriation (or attempted misappropriation) of any of Primal’s funds or
property; or (e) the conviction of, or the entering of a guilty plea or plea of
no contest by you with respect to, a felony.

If this arrangement is
acceptable to you, please sign the enclosed copy of this letter and return it
to me at your earliest convenience.

Very truly yours,

	
  

  	
   

  
	
  Joseph R.
  Simrell

  	
   

  
	
  Chief Executive
  Officer

  

 

I agree to the terms described
above:

	
  

  	
   

  	
   

  
	
  Signature

  	
  Date

  	
   

  

 

cc:           Personnel FileExhibit 10.1

TERMINATION AGREEMENT 

The Undersigned:

1.               The public company with limited liability PGI NONWOVENS B.V., incorporated
under the laws of the Netherlands, hereafter to be referred to as: “PGI”,
having its statutory seat in Cuijk, the Netherlands.

and

2.               MR R. ALTDORF, domiciled at Kleve (4190), Germany, at the
Hirschpfuhl 20,  hereafter referred to
as: “Mr Altdorf”;

Hereafter together to be referred to as: “the Parties”,

WHEREAS:

a)                 Mr
Altdorf has been employed by PGI since October 1, 1985. The current position of
Mr Altdorf at PGI is Managing Director;

b)                Recently,
the Parties have discussed a possible termination of the employment of Mr
Altdorf with PGI and of his positions as Managing Director of PGI and Vice
President & Managing Director, Europe of Polymer Group, Inc., an affiliate
of PGI. In order to prevent any uncertainty about such termination and the
consequences thereof, the Parties have consulted with one another and have come
to agreement about this, which agreement is laid down in this termination
agreement (“the Termination Agreement”).

HAVE AGREED AS FOLLOWS :

Section 1.                                          Termination Date

Mr. Altdorf’s employment
with PGI will come to an end as per June 30, 2006 (“the Termination Date”) in
mutual consent.

Section 2.                                          Resignation of Offices

2.1                   As per the Termination Date, Mr Altdorf shall
resign as Managing Director of PGI, as Vice President, Managing Director,
Europe of Polymer Group, Inc., and other similar positions (if any) which he
may hold of PGI or of any affiliated companies.

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2.2                   PGI shall procure that, at the coming annual
shareholders meetings of PGI, Mr Altdorf is granted a customary discharge (“décharge”) by the appropriate entities in respect of the
performance of his duties as Managing Director of these companies until his
resignation.

Section
3.                                          Financial Compensation

3.1                     Payment of an amount of one million five
hundred fifty-five thousand euros (EUR 1.555.000) gross by PGI to Mr. Altdorf
is in order.  PGI will pay this amount,
net of applicable taxes and/or social security contributions (if any) as
mentioned in section 3.3, on July 5, 2006.

3.2
                  The payment for notice, holidays and accrued
leave for current and/or prior years (in case such rights should exist) are
deemed to be included in the payment mentioned in section 3.1.

3.3.                  Upon Mr Altdorf’s request PGI is willing to
spread out the payment mentioned in section 3.1 as periodic payments during
2006. Further, PGI is willing to pay the payment in a manner which is
favourable to Mr Altdorf provided this does not cause any additional cost for
PGI and is permitted by tax laws (especially, but not restricted to, with
respect to the regulation of 8 December 2005 (nr. DGB2005/6722M) in conjunction
with the decision of May 26, 2005 (nr. DGB2005/3299M) of the Dutch State Secretary
of Finance), to be proved by a ruling of the applicable tax authorities. All
taxes and tax related employers’ burdens are for the account of Mr Altdorf and
will be deducted from the  payment
mentioned in section 3.1

Section 4.                                          No bonus over 2006

Mr Altdorf is not entitled to a (pro rata) bonus over 2006.

Section 5.                                          Stock options

Mr Altdorf will retain his rights to shares vested before the
Termination Date in accordance with the 2003 stock option plan of Polymer
Group, Inc.

Section 6.                                          Company property

Mr Altdorf will hand over any and all company properties, such as, but
not limited to, documents (copies thereof included), computer files and data,
personal computer / laptop (unless otherwise agreed upon in writing), business
cards and contact information related to customers and suppliers, and other
property (for instance: credit cards, mobile phones, automobile, and keys) on
or before the Termination Date.

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Section 7.                                          Confidentiality

Mr Altdorf shall maintain full secrecy with respect to any and all
information about the particulars of PGI, its affiliated companies (including
but not limited to Polymer Group, Inc.), its business and clients. To this
respect all obligations arising from his employment agreements remain fully
binding.

Section 8.                                          No negative statements

The
Parties will refrain from any negative statement about each other.

Section 9.                                          Non-solicitation

Mr Altdorf agrees with PGI that during a period of 12 months after the
Termination Date Mr Altdorf will not without the prior written consent of PGI,
either alone or jointly with others, or as employee, advisor, manager,
consultant or agent of any person or entity, directly or indirectly, solicit
the employment of any person who is, or has at any time during the two years
preceding the Termination Date been, an employee, vendor or customer of PGI
and/or any of its affiliated companies (including but not limited to Polymer
Group, Inc.).

Section 10.                                   Non-Competition

Without the prior written consent of PGI, Mr Altdorf will not during a
period of twenty-nine (29) months after the Termination Date, work directly or
indirectly with or for a company or group or individual(s), that wholly or
partially are engaged in the same business as PGI and/or its affiliated
companies (including but not limited to Polymer Group, Inc.), wherever located.
The payment mentioned in section 3.1 is also paid in return for this
non-competition clause.

Section 11.                                   Intellectual Property

11.1               As a result of his activities for PGI and/or
its subsidiaries or affiliates (including but not limited to Polymer Group,
Inc.), Mr Altdorf may have made, discovered, or created anything that will
qualify for protection by rights of an exclusive nature, such as intellectual
property rights (which expressly include, but are not limited to patent rights,
copyrights, computer programs and the like (the “Intellectual Property Rights”), or know-how rights (the “Rights”). Parties agree that the
Intellectual Property Rights and the Rights shall belong to and be the absolute
property of PGI or its designee.

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11.2               To the extent not already provided for by
Dutch Intellectual Property Law, Mr Altdorf hereby transfers in advance, and
shall — to the extent this cannot be done in advance — transfer both the
Intellectual Property Rights and the Rights to PGI or its designee. As far as
copyrights are concerned, Mr Altdorf hereby transfers in advance, and shall —
to the extent this cannot be done in advance — transfer to PGI or its designee
any moral rights. To the extent Dutch Intellectual Property Law does not provide
for the transfer of particular moral rights, PGI shall irrevocable waive, for
the benefit of PGI and its successors in title, any such moral rights.

11.3               Mr Altdorf shall, upon first request of PGI
or its designee, execute all documents and do all things reasonably necessary
or desirable, to vest — and maintain vested — the Rights (including the moral
rights) in PGI or its designee. Any reasonable costs and expenses of Mr Altdorf
in respect thereof, will be reimbursed by the PGI or its designee.

Section 12.                                   Full and final discharge

The parties grant each other a full and final discharge and declare
this agreement to be in full and final settlement of any and all claims. Mr
Altdorf hereby agrees to release and forever discharge PGI and its subsidiaries
and affiliated companies including Polymer Group, Inc., their respective
officers, directors and employees, from any and all actions, causes of action,
claims, demands, and liabilities of whatsoever nature arising out of, or in
connection with the employment agreement, the termination thereof or otherwise,
whether arising before or after the date hereof.

Section 13.                                   Miscellaneous

13.1      This
agreement shall take precedence over any and all agreements between the parties
with regard to the subject matter of this agreement.

13.2      If
any article or paragraph of this agreement will be declared null and void, this
will not affect the validity of the rest of this agreement.

13.3      This
Termination Agreement shall be governed by and interpreted in accordance with
Dutch law.

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Drawn
up and signed in duplicate in Cuijk

	
  Date: 8 May 2006

  	
   

  	
  Date: 8 May 2006

  
	
   

  	
   

  	
   

  
	
  /s/

  	
   

  	
  /s/

  
	
  Mr Jan Avéres

  	
   

  	
  Mr Rolf Altdorf

  
	
  On behalf of PGI
  Nonwovens BV

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date: 8 May
  2006

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/

  	
   

  	
   

  
	
  Mr. James
  Schaeffer

  	
   

  	
   

  
	
  On behalf of
  Polymer Group, Inc.

  	
   

  	
   

  

 

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