<PAGE>   1
                                                                    EXHIBIT 10.5

                              EMPLOYMENT AGREEMENT


        Emerald Solutions, Inc. (Emerald Solutions), whose address is 500 -
108th Avenue N.E., Suite 1800, Bellevue, Washington 98004 and Jim Gruher
(Employee), whose address is 11905 S.W. Wildwood Street, Tigard, Oregon 97224
enter this agreement.

        The parties acknowledge that Emerald Solutions sells and implements
software-based custom strategic solutions and that Employee is an experienced
and successful manager and leader.

        Emerald Solutions hires Employee under these terms:

1.      EMPLOYMENT

        1.1    LENGTH. Employee's employment with Emerald Solutions begins on or
               before January 21, 1999 (Effective Date), and continues until
               ended as this Agreement provides.

        1.2    FULL TIME. Employee will work full time. Employee will devote his
               good faith efforts in support of Emerald Solutions' operations
               and goals, during the entire term of this Agreement. While
               Employee's employment by Emerald Solutions under this Agreement
               continues, Employee will not engage in any other employment or
               consulting without Emerald Solutions' advanced written consent.

2.      EMPLOYEE'S DUTIES.

               Employee will serve as Emerald Solutions' Senior Vice President.
        If Emerald Solutions reassigns Employee without Employee's consent, the
        Employee may, at the Employee's option, decline to accept the change in
        title or the new assignment and elect instead to treat it as termination
        without cause by Emerald Solutions.

3.      COMPENSATION PLAN.

        3.1    PAY. Emerald Solutions will pay Employee initially at the rate of
               $200,000.00 a year (Base Salary), payable in equal increments on
               Emerald Solutions' standard payroll schedules, which are
               bi-weekly as of the date of this Agreement. Payment will begin as
               of the first standard payroll following the Effective Date.
               Employee's compensation will otherwise be reviewed on an annual
               basis, as with other Employees of the Company.

        3.2    STOCK OPTIONS.  Employee will be granted 300,000 stock options
               on the Effective Date under Emerald Solutions' Stock Option Plan.

        3.3    BONUS. Based on performance criterion approved by the Board of
               Directors, Employee will be eligible for a bonus according to the
               Bonus Plan in place for Senior Vice Presidents. To be eligible
               for this payment, Employee must be an active employee at end of
               calendar year. During first year of employment, any payments will
               be prorated based on the number of full calendar months of
               employment.

        3.4    BONUS OPTIONS. Based on performance criterion approved by the
               Board of Directors, Employee will be eligible for bonus options
               according to the plan in place for Senior Vice Presidents. To be
               eligible for bonus options, Employee must be an active employee
               when bonuses are distributed. Bonus options will be granted
               according to meeting of objectives. Potential bonus options
               available are 50,000 at the end of June 30, 1999 and 50,000 at
               the end of the calendar year and will be paid in the same
               proportion as the targeted bonus.




<PAGE>   2





        3.5    OFFICE OPENING OPTIONS.  Employee will be granted 25,000 options
               for each new office opened in calendar year 1999.

        3.6    OTHER COMPENSATION.

               3.6.1  HEALTH INSURANCE BENEFITS. Emerald Solutions will pay
                      medical insurance, life insurance, disability insurance,
                      retirement, and other fringe benefits in accordance with
                      Emerald Solutions' then existing policies applicable
                      generally to employees.

               3.6.2  REIMBURSEMENT. Emerald Solutions will reimburse Employee
                      for all expenses reasonably incurred in discharging duties
                      as an employee of Emerald Solutions, subject to Emerald
                      Solutions' standard policies for amounts and documentation
                      to which all comparable employees may be subject from time
                      to time.

               3.6.3  VACATION/PERSONAL TIME. In the first year of employment,
                      Employee shall be entitled to a total of 22 vacation and
                      sick days and will accrue such days in accordance with
                      Emerald Solutions' then existing Earned-Time-Off (ETO)
                      policies applicable generally to employees.

4.      TERMINATION.

        4.1    VOLUNTARY BY EMPLOYEE.  Employee may resign from Emerald
               Solutions by two weeks' notice.

        4.2    VOLUNTARY BY EMERALD SOLUTIONS.  Emerald Solutions may end
               Employee's employment, without cause, by Notice, subject to
               Emerald Solutions' obligation to pay termination pay noted
               below.

        4.3    WITH CAUSE. For the purposes of this Agreement, to be terminated
               With Cause shall only mean termination for (a) substantial
               failure or refusal to carry out lawful directions of the Board of
               Directors and/or Emerald Solutions' senior executive officers,
               which directions are reasonably consistent with the duties set
               forth to be performed by Employee; (b) an act which results in
               Employee being convicted of a felony; or (c) an act of
               misappropriation of Emerald Solutions' monies or assets, fraud
               and/or dishonesty or disloyalty to Emerald Solutions, such as but
               not limited to a violation of Employee's obligations under
               Section 5 or 7 of this Agreement. Emerald Solutions may terminate
               this Agreement effective as of the date Notice of Termination
               With Cause is given specifying the cause. Emerald will provide
               specific notice of such failure or refusal to Employee with a 30
               day opportunity to cure such act or omission.

        4.4    COMPENSATION ON TERMINATION.  Following termination, Emerald
               Solutions will pay these things:

               4.4.1  COMPENSATION AND EARNED VACATION EARNED THROUGH
                      TERMINATION DATE. Employee's Base Salary as earned through
                      the termination date, and a buyout of all accumulated but
                      unused ETO time, to be paid within thirty days of
                      termination.

               4.4.2  BASE EXTENSION. Unless Employee is terminated With
                      Cause, or voluntarily resigns for reasons other than a
                      breach of Emerald Solutions' obligations to the Employee
                      of which the Employee has given Emerald Solutions Notice
                      and at least thirty days opportunity to cure, and provided
                      the employee signs Emerald Solutions' standard Termination
                      Agreement, Emerald Solutions will continue Employee's Base
                      Salary, including the health insurance then in effect, for
                      three months after the termination date if termination
                      occurs during the first year of employment and will
                      continue Employee Base Salary, including the health
                      insurance and life insurance then in effect, for one
                      additional month for each year of service after the first
                      year of employment. Payment of the Employee Base Salary
                      shall be made on Emerald Solutions' standard payroll
                      schedules from the date of termination, as if the Employee
                      had not been terminated. In order to qualify for

<PAGE>   3




                      this extension of base salary, the employee will be
                      required to sign a "Termination of Employment Agreement."

               4.4.3  LIMIT TO PAY. Emerald Solutions shall not pay Employee any
                      continuation of base salary under Section 4.4.2 for any
                      period during which Employee violates his obligation under
                      Section 5 or 7 of this Agreement.

        4.5    OFFSET. To the extent permissible under applicable law, without
               prejudice to other remedies, Emerald Solutions may offset any
               amounts Employee owes Emerald Solutions against any amounts due
               upon termination or thereafter.

5.      CONFIDENTIALITY.

        5.1    CONFIDENTIALITY. Employee will keep Emerald Solutions' Data
               confidential. In doing so, Employee will not disclose Emerald
               Solutions' Data directly or indirectly to any person, other than
               an employee of Emerald Solutions or a person to whom disclosure
               is reasonably necessary or appropriate to further Emerald
               Solutions' business.

        5.2    EMERALD SOLUTIONS' DATA. Emerald Solutions' Data consists of any
               trade secret or proprietary or confidential information of
               Emerald Solutions or of any Emerald Solutions affiliate. Emerald
               Solutions' Data includes, but is not limited to, records, files,
               memorandum, reports, price lists, software, customer lists,
               drawings, sketches, documents, equipment, and the like relating
               to Emerald Solutions' business which Employee uses, prepares, or
               comes in contact with during the course of his work for Emerald
               Solutions. Any information known generally to the public or any
               information of a type not otherwise generally considered
               confidential by persons engaged in the same business will not be
               treated as confidential.

        5.3    THIRD PARTY DATA. Employee will also keep third party Data
               confidential as required by Emerald Solutions' obligations to the
               third party, for at least as long as is required for Emerald
               Solutions' Data, but longer if required by any agreement Emerald
               Solutions enters into with the third party.

        5.4    RETURN ON TERMINATION. Employee will return all Emerald
               Solutions' Data and third party data on termination of this
               Agreement.

        5.5    SURVIVAL OF OBLIGATION.  The provisions of this Section 5 shall
               survive termination of this Agreement.

6.      INVENTIONS

        6.1    DEFINITIONS. "Inventions" means new ideas, improvements, or
               discoveries, whether or not patentable or copyrightable, as well
               as other newly discovered or newly applied information or
               concepts. An Invention is a "Covered Invention" if it relates to
               Emerald Solutions' actual or anticipated business; or was
               developed in any part using Emerald Solutions' resources (time,
               supplies, facilities, or data); or it if results from or is
               suggested by a task assigned to, or work performed for Emerald
               Solutions by Employee. As used in this Section 6, "Emerald
               Solutions" includes Emerald Solutions' sister corporations or
               subsidiaries and Emerald Solutions' clients, consultants, and
               contractors.

        6.2    ASSIGNMENT. All Employee's right, title and interest to any
               Covered Inventions that Employee makes or conceives while
               employed by Emerald Solutions, belong to Emerald Solutions. This
               Agreement operates as a prospective assignment of all those
               rights to Emerald Solutions.

        6.3    OBLIGATION.  The provisions of this Section 6 shall survive
               termination of this Agreement.

        6.4    NOTICE.  Notwithstanding any other provision of this Agreement
               to the contrary, this Agreement does not obligate Employee to
               assign or offer to assign to Emerald Solutions any of Employee's

<PAGE>   4




            rights in an invention for which no equipment, supplies, facilities
            or trade secret information of Emerald Solutions was used and which
            was developed entirely on Employee's own time, unless (a) the
            invention relates (i) directly to the business of Emerald Solutions
            or (ii) to Emerald Solutions' actual or demonstrably anticipated
            research or development or (b) the invention results from any work
            performed by Employee for Emerald Solutions. This satisfies the
            written notice and other requirements of RCW49.44.140.

7.      NON-COMPETITION; NON-SOLICITATION.

      7.1   COMPETING DEFINED. During Employee's employment with Emerald
            Solutions, and for twelve months afterward, unless Emerald Solutions
            consents in writing, Employee will not compete with Emerald
            Solutions, or solicit business from Emerald Solutions' customers.
            This commitment will not survive termination of this Agreement if
            the Employee voluntarily terminates his employment as a result of
            Emerald Solutions' breach of its obligations to the Employee under
            this Agreement, provided the Employee has first given Emerald
            Solutions Notice of the breach and at least thirty days' opportunity
            to cure it.

               7.1.1. COMPETING DEFINED. "Competing" means to provide any
                      services or knowledge in the area of information
                      technology directly or indirectly to an Emerald Solutions'
                      customer. Service is "indirect" if the service is provided
                      to another person or company who in turn provides it to an
                      Emerald Solutions' customer. "Service" includes acting as
                      an employee, independent contractor, consultant, officer,
                      director, or agent. Being employed by a company that
                      itself provides service to an Emerald Solutions' customer
                      or competes with Emerald Solutions is not competition
                      unless the Employee himself is providing the service
                      directly, or gives assistance that is substantively
                      related to a particular Emerald Solutions' customer or to
                      providing services or knowledge that competes with Emerald
                      Solutions to others to help them perform those services or
                      compete directly.

               7.1.2. SOLICITING BUSINESS DEFINED. "Soliciting business" means
                      with respect to custom solutions, performing work for or
                      soliciting work from anyone who has been a customer or
                      client of Emerald Solutions, or providing knowledge or
                      assistance to another for any of those purposes, on either
                      a consulting or an employment basis.

               7.1.3. EMERALD SOLUTIONS' CUSTOMERS DEFINED.  Emerald Solutions'
                      "customers" are:

                      (a)    EXISTING. Entities or individuals who have
                             purchased consulting or programming services,
                             software, or goods from Emerald Solutions at
                             anytime within three years before the day
                             employment ends.

                      (b)    ACTIVE PROSPECTS. Entities or individuals who are
                             active prospects of Emerald Solutions. An active
                             prospect is one upon whom more than three calls
                             have been made in any one-month period, or to whom
                             a proposal has been submitted or by whom a proposal
                             has been requested, and from whom, on the date
                             employee's employment terminates, Emerald Solutions
                             reasonably believes it may secure work or product
                             or service orders.

                      (c)    DEPARTMENTS OR DIVISIONS OF CUSTOMERS. In the event
                             a customer has more than one department and/or
                             division, only the particular department and/or
                             division which would otherwise qualify as an
                             Emerald Solutions' Customer if considered
                             independently shall be deemed a customer of Emerald
                             Solutions under this paragraph 7.1.3, and not any
                             other department or division.

      7.2   NON-HIRING. During Employee's employment and for twelve months
            afterward, unless Emerald Solutions consents in writing, Employee
            will not solicit or assist in the solicitation of Emerald Solutions'
            employees.



<PAGE>   5




      7.3   NON-DEFAMATION. During Employee's employment and for twelve months
            afterward, Employee will not take any action or make any statement
            which could prove defamatory or prejudicial to Emerald Solutions'
            interests.

      7.4   SURVIVAL OF OBLIGATION. The provisions of this Section 7 shall
            survive termination of this Agreement.

8.      NO CONFLICTING OBLIGATIONS.

      8.1   VIOLATION OF OTHER AGREEMENTS. Execution, delivery and performance
            of this Agreement and the performance of Employee's other
            obligations and duties to Emerald Solutions will not cause any
            breach, default or violation of any other employment, nondisclosure,
            confidentiality, consulting or other agreement to which Employee is
            a party or by which Employee may be bound.

      8.2   DISCLOSURE OF OTHER TRADE SECRETS. Employee will not use in
            performance of Employee's work for Emerald Solutions or disclose to
            Emerald Solutions any trade secret, confidential or proprietary
            information of any prior employer or other Person if and to the
            extent that such use or disclosure may cause a breach, default, or
            violation of any obligation or duty that Employee owes to such other
            person (e.g., under any agreement or applicable law). Employee's
            compliance with this paragraph will not prohibit, restrict or impair
            the performance of Employee's work, obligations and duties to
            Emerald Solutions.

      8.3   FALSE REPRESENTATIONS. Employee will not (a) make any false,
            misleading or disparaging representations or statements with regard
            to Emerald Solutions or the products or services of Emerald
            Solutions or (b) make any statement that may impair or otherwise
            adversely affect the goodwill or reputation of Emerald Solutions.

9.      OTHER MATTERS.

      9.1   EMPLOYMENT AT WILL. Employee's employment with Emerald Solutions is
            "at will" and may be terminated at any time by an executive of
            Emerald Solutions. This Agreement will survive any termination of
            Employee's employment.

      9.2   NOTICE. Notice to Employee shall be sent to Employee's most recent
            address shown in Emerald Solutions' personnel records. Notice to
            Emerald Solutions shall be sent to Emerald Solutions' headquarters
            address, marked attention: President. Either party may change its
            address by Notice. Notice shall be effective when the person to whom
            it is sent actually gets it, if sent by any method that leaves a
            paper or electronic record in the hands of the recipient. If sent
            certified or registered mail, postage prepaid, return receipt
            requested, to the proper address this section defines, notice shall
            be considered effective whether or not actually received on the date
            the return receipt shows the notice was accepted, refused, or
            returned undeliverable.

      9.3   SEVERABILITY. This agreement will be enforced to the fullest extent
            permitted by applicable law. If for any reason any provision of this
            Agreement is held to be invalid or unenforceable to any extent, then
            (a) such provision will be interpreted, construed or reformed to the
            extent reasonably required to render the same valid, enforceable and
            consistent with the original intent underlying such provision and
            (b) such invalidity or unenforceability will not affect any other
            provision of this Agreement or any other agreement between Emerald
            Solutions and Employee. If the invalidity or unenforceability is due
            to the unreasonableness of the scope or duration of the provision,
            the provision will remain effective for such scope and duration as
            may be determined to be reasonable.

      9.4   NON-WAIVER. The failure of Emerald Solutions to insist upon or
            enforce strict performance of any provision of this Agreement or to
            exercises any of its rights or remedies under this Agreement will
            not be construed as a waiver or a relinquishment to any extent of
            Emerald Solutions' rights to

<PAGE>   6




        assert or rely on any such provision, right or remedy in that or any
               instance, rather, the same will be and remain in full force and
               effect.

        9.5    ASSIGNMENT. This Agreement shall be binding upon and inure to the
               benefit of Emerald Solutions, its successors and assigns and
               shall be binding upon and inure to the benefit of Employee, and
               Employee's administrators, executors, legatees, and heirs. This
               Agreement shall not be assigned by Employee.

EMERALD SOLUTIONS, INC.                  JIM GRUHER:



----------------------------------       -------------------------------------

Title:  Chief Financial Officer
        --------------------------        Date:
                                               --------------------------------

Date:   January 18, 1999
        --------------------------