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                                                                    EXHIBIT 10.1

                           ONYX SOFTWARE CORPORATION

               2001 NONOFFICER EMPLOYEE STOCK COMPENSATION PLAN

                              SECTION 1.  PURPOSE

     The purpose of the Onyx Software Corporation 2001 Nonofficer Employee Stock
Compensation Plan (the "Plan") is to enhance the long1term shareholder value of
Onyx Software Corporation, a Washington corporation (the "Company"), by offering
opportunities to selected persons who are not officers or directors of the
Company to participate in the Company's growth and success, and to encourage
them to remain in the service of the Company and its Subsidiaries and to acquire
and maintain stock ownership in the Company.

                            SECTION 2.  DEFINITIONS

     For purposes of the Plan, the following terms shall be defined as set forth
below:

2.1  Award

     "Award" means an award or grant made pursuant to the Plan, including,
without limitation, awards or grants of Options and Stock Awards, or any
combination of the foregoing.

2.2  Board

     "Board" means the Board of Directors of the Company.

2.3  Cause

     "Cause" means dishonesty, fraud, misconduct, unauthorized use or disclosure
of confidential information or trade secrets, or conviction or confession of a
crime punishable by law (except minor violations), in each case as determined by
the Plan Administrator, and its determination shall be conclusive and binding.

2.4  Code

     "Code" means the Internal Revenue Code of 1986, as amended from time to
time.

2.5  Common Stock

     "Common Stock" means the common stock, par value $0.01 per share, of the
Company.

2.6  Corporate Transaction

     "Corporate Transaction" means any of the following events:

          (a) Consummation of any merger or consolidation of the Company in
     which the Company is not the continuing or surviving corporation, or
     pursuant to which shares of the

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     Common Stock are converted into cash, securities or other property, if
     following such merger or consolidation the holders of the Company's
     outstanding voting securities immediately prior to such merger or
     consolidation own less than a majority of the outstanding voting securities
     of the surviving corporation;

          (b)  Consummation of any sale, lease, exchange or other transfer in
     one transaction or a series of related transactions of all or substantially
     all of the Company's assets other than a transfer of the Company's assets
     to a majority-owned subsidiary corporation of the Company; or

          (c)  Approval by the holders of the Common Stock of any plan or
     proposal for the liquidation or dissolution of the Company.

     Ownership of voting securities shall take into account and shall include
ownership as determined by applying Rule 13d-3(d)(1)(i) (as in effect on the
date of adoption of the Plan) under the Exchange Act.

2.7  Disability

     "Disability" means "disability" as that term is defined for purposes of
Section 22(e)(3) of the Code.

2.8  Effective Date

     "Effective Date" has the meaning set forth under Section 17.

2.9  Exchange Act

     "Exchange Act" means the Securities Exchange Act of 1934, as amended.

2.10 Fair Market Value

     "Fair Market Value" shall be as established in good faith by the Plan
Administrator or (a) if the Common Stock is listed on the Nasdaq National
Market, the average of the high and low per share sales prices for the Common
Stock as reported by the Nasdaq National Market for a single trading day or (b)
if the Common Stock is listed on the New York Stock Exchange or the American
Stock Exchange, the average of the high and low per share sales prices for the
Common Stock as such price is officially quoted in the composite tape of
transactions on such exchange for a single trading day.  If there is no such
reported price for the Common Stock for the date in question, then such price on
the last preceding date for which such price exists shall be determinative of
Fair Market Value.

2.11 Good Reason

     "Good Reason" means the occurrence of any of the following events or
conditions and the failure of the Successor Corporation to cure such event or
condition within 30 days after receipt of written notice from the Holder:

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          (a)  a change in the Holder's status, title, position or
responsibilities (including reporting responsibilities) that, in the Holder's
reasonable judgment, represents a substantial reduction in the status, title,
position or responsibilities as in effect immediately prior thereto; the
assignment to the Holder of any duties or responsibilities that, in the Holder's
reasonable judgment, are materially inconsistent with such status, title,
position or responsibilities; or any removal of the Holder from or failure to
reappoint or reelect the Holder to any of such positions, except in connection
with the termination of the Holder's employment for Cause, for Disability or as
a result of his or her death, or by the Holder other than for Good Reason;

          (b)  a reduction in the Holder's annual base salary;

          (c)  the Successor Corporation's requiring the Holder (without the
Holder's consent) to be based at any place outside a 35-mile radius of his or
her place of employment prior to a Corporate Transaction, except for reasonably
required travel on the Successor Corporation's business that is not materially
greater than such travel requirements prior to the Corporate Transaction;

          (d)  the Successor Corporation's failure to (i) continue in effect any
material compensation or benefit plan (or the substantial equivalent thereof) in
which the Holder was participating at the time of a Corporate Transaction,
including, but not limited to, the Plan, or (ii) provide the Holder with
compensation and benefits substantially equivalent (in terms of benefit levels
and/or reward opportunities) to those provided for under each material employee
benefit plan, program and practice as in effect immediately prior to the
Corporate Transaction;

          (e)  any material breach by the Successor Corporation of its
obligations to the Holder under the Plan or any substantially equivalent plan of
the Successor Corporation; or

          (f)  any purported termination of the Holder's employment or service
for Cause by the Successor Corporation that does not comply with the terms of
the Plan or any substantially equivalent plan of the Successor Corporation.

2.12  Grant Date

      "Grant Date" means the date the Plan Administrator adopted the granting
resolution or a later date designated in a resolution of the Plan Administrator
as the date an Award is to be granted.

2.13  Holder

      "Holder" means:  (a) the person to whom an Award is granted; (b) for a
Holder who has died, the personal representative of the Holder's estate, the
person(s) to whom the Holder's rights under the Award have passed by will or by
the applicable laws of descent and distribution, or the beneficiary designated
in accordance with Section 9; or (c) the person(s) to whom an Award has been
transferred in accordance with Section 9.

2.14  Option

      "Option" means an option to purchase Common Stock granted under Section 7
that is not intended to qualify as an "Incentive Stock Option" as that term is
defined in Section 422 of the Code.

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2.15  Plan Administrator

      "Plan Administrator" means the Board or any committee of the Board
designated to administer the Plan under Section 3.1.

2.16  Restricted Stock

      "Restricted Stock" means shares of Common Stock granted under Section 8,
the rights of ownership of which are subject to restrictions prescribed by the
Plan Administrator.

2.17  Securities Act

      "Securities Act" means the Securities Act of 1933, as amended.

2.18  Stock Award

      "Stock Award" means an Award granted under Section 8.

2.19  Subsidiary

      "Subsidiary" means any entity that is directly or indirectly controlled by
the Company or in which the Company has a significant ownership interest, as
determined by the Plan Administrator, and any entity that is or may become a
direct or indirect parent of the Company.

2.20  Successor Corporation

      "Successor Corporation" has the meaning set forth under Section 10.2.

                          SECTION 3.  ADMINISTRATION

3.1   Plan Administrator

      The Plan shall be administered by the Board or a committee or committees
(which term includes subcommittees) appointed by, and consisting of two or more
members of, the Board. The Board may delegate the responsibility for
administering the Plan with respect to designated classes of eligible persons to
different committees consisting of two or more members of the Board, subject to
such limitations as the Board deems appropriate. Committee members shall serve
for such term as the Board may determine, subject to removal by the Board at any
time. To the extent consistent with applicable law, the Board may authorize the
Chief Executive Officer or the President of the Company to grant Awards to
individuals eligible to receive grants under the Plan, within the limits
specifically prescribed by the Board.

3.2   Administration and Interpretation by the Plan Administrator

      Except for the terms and conditions explicitly set forth in the Plan, the
Plan Administrator shall have exclusive authority, in its discretion, to
determine all matters relating to Awards under the Plan, including the selection
of individuals to be granted Awards, the type of Awards, the number of shares of
Common Stock subject to an Award, all terms, conditions, restrictions and
limitations, if any, of an Award and the terms of any instrument that evidences
the Award.  The Plan Administrator shall also have exclusive authority to
interpret the Plan and may from time to time

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adopt, and change, rules and regulations of general application for the Plan's
administration. The Plan Administrator's interpretation of the Plan and its
rules and regulations, and all actions taken and determinations made by the Plan
Administrator pursuant to the Plan, shall be conclusive and binding on all
parties involved or affected. The Plan Administrator may delegate administrative
duties to such of the Company's officers as it so determines.

                     SECTION 4.  STOCK SUBJECT TO THE PLAN

4.1  Authorized Number of Shares

     Subject to adjustment from time to time as provided in Section 10.1, the
maximum number of shares of Common Stock that shall be available for issuance
under the Plan shall be 1,000,000 shares.

4.2  Reuse of Shares

     Any shares of Common Stock that have been made subject to an Award that
cease to be subject to the Award (other than by reason of exercise or payment of
the Award to the extent it is exercised for or settled in shares) shall again be
available for issuance in connection with future grants of Awards under the
Plan.

                            SECTION 5.  ELIGIBILITY

     Awards may be granted under the Plan to any individual who, at the time of
grant, is an employee, consultant, agent, advisor or independent contractor who
provides services to the Company or its Subsidiaries and is not an officer or
director of the Company.

                              SECTION 6.  AWARDS

6.1  Form and Grant of Awards

     The Plan Administrator shall have the authority, in its sole discretion, to
determine the type or types of Awards to be made under the Plan.  Such Awards
include Options and Stock Awards.  Awards may be granted singly or in
combination.

6.2  Acquired Company Awards

     Notwithstanding anything in the Plan to the contrary, the Plan
Administrator may grant Awards under the Plan in substitution for awards issued
under other plans, or assume under the Plan awards issued under other plans, if
the other plans are or were plans of other acquired entities ("Acquired
Entities") (or the parent of the Acquired Entity) and the new Award is
substituted, or the old award is assumed, by reason of a merger, consolidation,
acquisition of property or of stock, reorganization or liquidation (the
"Acquisition Transaction"). In the event that a written agreement pursuant to
which the Acquisition Transaction is completed is approved by the Board and said
agreement sets forth the terms and conditions of the substitution for or
assumption of outstanding awards of the Acquired Entity, said terms and
conditions shall be deemed to be the action of the Plan Administrator without
any further action by the Plan Administrator and the persons holding such Awards
shall be deemed to be Holders.

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                         SECTION 7.  AWARDS OF OPTIONS

7.1  Grant of Options

     The Plan Administrator is authorized under the Plan, in its sole
discretion, to issue Options.

7.2  Option Exercise Price

     The exercise price for shares purchased under an Option shall be as
determined by the Plan Administrator.

7.3  Term of Options

     The term of each Option shall be as established by the Plan Administrator
or, if not so established, shall be 10 years from the Grant Date.

7.4  Exercise of Options

     The Plan Administrator shall establish and set forth in each instrument
that evidences an Option the time at which or the installments in which the
Option shall vest and become exercisable, which provisions may be waived or
modified by the Plan Administrator at any time. If not so established in the
instrument evidencing the Option, the Option will vest and become exercisable
according to the following schedule, which may be waived or modified by the Plan
Administrator at any time:

<TABLE>
<CAPTION>
   Period of Holder's Continuous Employment
      or Service With the Company or Its                  Percent of Total Option
   Subsidiaries From the Option Grant Date             That Is Vested and Exercisable
-----------------------------------------------    ----------------------------------------
<S>                                                <C>
                 After 12 months                                    25%

   Each additional month completed thereafter             An additional 2.0833%

                  After 4 years                                     100%
</TABLE>

     To the extent that the right to purchase shares has accrued thereunder, an
Option may be exercised from time to time by written notice to the Company, in
accordance with procedures established by the Plan Administrator, setting forth
the number of shares with respect to which the Option is being exercised and
accompanied by payment in full as described in Section 7.5. The Plan
Administrator may determine at any time that an Option may not be exercised as
to less than 100 shares at any one time (or the lesser number of remaining
shares covered by the Option).

7.5  Payment of Exercise Price

     The exercise price for shares purchased under an Option shall be paid in
full to the Company by delivery of consideration equal to the product of the
Option exercise price and the number of shares purchased. Such consideration
must be paid in cash or by check or, unless the Plan Administrator in its sole
discretion determines otherwise, either at the time the Option is granted or at
any time before it is exercised, a combination of cash and/or check (if any) and
one or both of the following alternative forms: (a) tendering (either actually
or, if and so long as the

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Common Stock is registered under Section 12(b) or 12(g) of the Exchange Act, by
attestation) Common Stock already owned by the Holder for at least six months
(or any shorter period necessary to avoid a charge to the Company's earnings for
financial reporting purposes) having a Fair Market Value on the day prior to the
exercise date equal to the aggregate Option exercise price; or (b) if and so
long as the Common Stock is registered under Section 12(b) or 12(g) of the
Exchange Act, delivery of a properly executed exercise notice, together with
irrevocable instructions, to (i) a brokerage firm designated by the Company to
deliver promptly to the Company the aggregate amount of sale or loan proceeds to
pay the Option exercise price and any withholding tax obligations that may arise
in connection with the exercise and (ii) the Company to deliver the certificates
for such purchased shares directly to such brokerage firm, all in accordance
with the regulations of the Federal Reserve Board. In addition, to the extent
permitted by the Plan Administrator in its sole discretion, the price for shares
purchased under an Option may be paid, either singly or in combination with one
or more of the alternative forms of payment authorized by this Section 7.5, by
(y) a promissory note delivered pursuant to Section 12; or (z) such other
consideration as the Plan Administrator may permit.

7.6  Post-Termination Exercises

     The Plan Administrator shall establish and set forth in each instrument
that evidences an Option whether the Option will continue to be exercisable, and
the terms and conditions of such exercise, if a Holder ceases to be employed by,
or to provide services to, the Company or its Subsidiaries, which provisions may
be waived or modified by the Plan Administrator at any time. If not so
established in the instrument evidencing the Option, the Option will be
exercisable according to the following terms and conditions, which may be waived
or modified by the Plan Administrator at any time.

     In case of termination of the Holder's employment or services other than by
reason of death or Cause, the Option shall be exercisable, to the extent of the
number of shares purchasable by the Holder at the date of such termination, only
(a) within one year if the termination of the Holder's employment or services is
coincident with Disability or (b) within three months after the date the Holder
ceases to be an employee, director, officer, consultant, agent, advisor or
independent contractor of the Company or a Subsidiary if termination of the
Holder's employment or services is for any reason other than Disability, but in
no event later than the remaining term of the Option. Any Option exercisable at
the time of the Holder's death may be exercised, to the extent of the number of
shares purchasable by the Holder at the date of the Holder's death, by the
personal representative of the Holder's estate, the person(s) to whom the
Holder's rights under the Award have passed by will or the applicable laws of
descent and distribution or the beneficiary designated pursuant to Section 9, at
any time or from time to time within one year after the date of death, but in no
event later than the remaining term of the Option. Any portion of an Option that
is not exercisable on the date of termination of the Holder's employment or
services shall terminate on such date, unless the Plan Administrator determines
otherwise. In case of termination of the Holder's employment or services for
Cause, the Option shall automatically terminate upon first notification to the
Holder of such termination, unless the Plan Administrator determines otherwise.
If a Holder's employment or services with the Company are suspended pending an
investigation of whether the Holder shall be terminated for Cause, all the
Holder's rights under any Option likewise shall be suspended during the period
of investigation.

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     A transfer of employment or services between or among the Company and its
Subsidiaries shall not be considered a termination of employment or services.
The effect of a Company-approved leave of absence on the terms and conditions of
an Option shall be determined by the Plan Administrator, in its sole discretion.

                           SECTION 8.  STOCK AWARDS

8.1  Grant of Stock Awards

     The Plan Administrator is authorized to make Awards of Common Stock on such
terms and conditions and subject to such restrictions, if any (which may be
based on continuous service with the Company or the achievement of performance
goals), as the Plan Administrator shall determine, in its sole discretion, which
terms, conditions and restrictions shall be set forth in the instrument
evidencing the Award. The terms, conditions and restrictions that the Plan
Administrator shall have the power to determine shall include, without
limitation, the manner in which shares subject to Stock Awards are held during
the periods they are subject to restrictions and the circumstances under which
forfeiture of Restricted Stock shall occur by reason of termination of the
Holder's services.

8.2  Issuance of Shares

     Upon the satisfaction of any terms, conditions and restrictions prescribed
with respect to a Stock Award, or upon the Holder's release from any terms,
conditions and restrictions of a Stock Award, as determined by the Plan
Administrator, the Company shall release, as soon as practicable, to the Holder
or, in the case of the Holder's death, to the personal representative of the
Holder's estate or as the appropriate court directs, the appropriate number of
shares of Common Stock.

8.3  Waiver of Restrictions

     Notwithstanding any other provisions of the Plan, the Plan Administrator
may, in its sole discretion, waive the forfeiture period and any other terms,
conditions or restrictions on any Restricted Stock under such circumstances and
subject to such terms and conditions as the Plan Administrator shall deem
appropriate.

                           SECTION 9.  ASSIGNABILITY

     No Option granted under the Plan may be assigned or transferred by the
Holder other than by will or by the applicable laws of descent and distribution,
and, during the Holder's lifetime, such Awards may be exercised only by the
Holder. Notwithstanding the foregoing, the Plan Administrator, in its sole
discretion, may permit such assignment, transfer and exercisability and may
permit a Holder of such Awards to designate a beneficiary who may exercise the
Award or receive compensation under the Award after the Holder's death;
provided, however, that any Award so assigned or transferred shall be subject to
all the same terms and conditions contained in the instrument evidencing the
Award.

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                           SECTION 10.  ADJUSTMENTS

10.1  Adjustment of Shares

      In the event that, at any time or from time to time, a stock dividend,
stock split, spin-off, combination or exchange of shares, recapitalization,
merger, consolidation, distribution to shareholders other than a normal cash
dividend, or other change in the Company's corporate or capital structure
results in (a) the outstanding shares, or any securities exchanged therefor or
received in their place, being exchanged for a different number or class of
securities of the Company or of any other corporation or (b) new, different or
additional securities of the Company or of any other corporation being received
by the holders of shares of Common Stock of the Company, then the Plan
Administrator shall make proportional adjustments in (i) the maximum number and
kind of securities subject to the Plan as set forth in Section 4.1 and (ii) the
number and kind of securities that are subject to any outstanding Award and the
per share price of such securities, without any change in the aggregate price to
be paid therefor. The determination by the Plan Administrator as to the terms of
any of the foregoing adjustments shall be conclusive and binding.

10.2  Corporate Transaction

      Except as otherwise provided in the instrument that evidences the Award,
in the event of any Corporate Transaction, each Award that is at the time
outstanding shall automatically accelerate so that each such Award shall,
immediately prior to the specified effective date for the Corporate Transaction,
become 100% vested and exercisable, except that such acceleration will not occur
if, in the opinion of the Company's outside accountants, it would render
unavailable "pooling of interest" accounting for a Corporate Transaction that
would otherwise qualify for such accounting treatment. Such Award shall not so
accelerate, however, if and to the extent that such Award is, in connection with
the Corporate Transaction, either to be assumed by the successor corporation or
parent thereof (the "Successor Corporation") or to be replaced with a comparable
award for the purchase of shares of the capital stock of the Successor
Corporation. The determination of Award comparability shall be made by the Plan
Administrator, and its determination shall be conclusive and binding. All such
Awards shall terminate and cease to remain outstanding immediately following the
consummation of the Corporate Transaction, except to the extent assumed by the
Successor Corporation. Any such Awards that are assumed or replaced in the
Corporate Transaction and do not otherwise accelerate at that time shall be
accelerated in the event that the Holder's employment or services should
subsequently terminate within two years following such Corporate Transaction,
unless such employment or services are terminated by the Successor Corporation
for Cause or by the Holder voluntarily without Good Reason.

10.3  Further Adjustment of Awards

      Subject to Section 10.2, the Plan Administrator shall have the discretion,
exercisable at any time before a sale, merger, consolidation, reorganization,
liquidation or change in control of the Company, as defined by the Plan
Administrator, to take such further action as it determines to be necessary or
advisable, and fair and equitable to Holders, with respect to Awards. Such
authorized action may include (but shall not be limited to) establishing,
amending or waiving the type, terms, conditions or duration of, or restrictions
on, Awards so as to provide for earlier, later, extended or additional time for
exercise, lifting restrictions and other modifications, and the Plan
Administrator may take such actions with respect to all Holders, to certain
categories of Holders or only to individual Holders. The Plan Administrator may
take such action before or after granting Awards to

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which the action relates and before or after any public announcement with
respect to such sale, merger, consolidation, reorganization, liquidation or
change in control that is the reason for such action.

10.4  Limitations

      The grant of Awards will in no way affect the Company's right to adjust,
reclassify, reorganize or otherwise change its capital or business structure or
to merge, consolidate, dissolve, liquidate or sell or transfer all or any part
of its business or assets.

                           SECTION 11.  WITHHOLDING

     The Company may require the Holder to pay to the Company the amount of any
withholding taxes that the Company is required to withhold with respect to the
grant, vesting or exercise of any Award. Subject to the Plan and applicable law,
the Plan Administrator may, in its sole discretion, permit the Holder to satisfy
withholding obligations, in whole or in part, by paying cash, by electing to
have the Company withhold shares of Common Stock or by transferring shares of
Common Stock to the Company, in such amounts as are equivalent to the Fair
Market Value of the withholding obligation. The Company shall have the right to
withhold from any Award or any shares of Common Stock issuable pursuant to an
Award or from any cash amounts otherwise due or to become due from the Company
to the Holder an amount equal to such taxes. The Company may also deduct from
any Award any other amounts due from the Holder to the Company or a Subsidiary.

         SECTION 12.  LOANS, INSTALLMENT PAYMENTS AND LOAN GUARANTEES

     To assist a Holder in acquiring shares of Common Stock pursuant to an Award
granted under the Plan, the Plan Administrator, in its sole discretion, may
authorize, either at the Grant Date or at any time before the acquisition of
Common Stock pursuant to the Award, (a) the extension of a loan to the Holder by
the Company, (b) the payment by the Holder of the purchase price, if any, of the
Common Stock in installments, or (c) the guarantee by the Company of a loan
obtained by the Holder from a third party. The terms of any loans, installment
payments or loan guarantees, including the interest rate and terms of and
security for repayment, will be subject to the Plan Administrator's discretion.
Loans, installment payments and loan guarantees may be granted with or without
security. The maximum credit available is the purchase price, if any, of the
Common Stock acquired, plus the maximum federal and state income and employment
tax liability that may be incurred in connection with the acquisition.

                         SECTION 13.  MARKET STANDOFF

     In connection with any underwritten public offering by the Company of its
equity securities pursuant to an effective registration statement filed under
the Securities Act, a person shall not sell, make any short sale of, loan,
hypothecate, pledge, grant any option for the purchase of, or otherwise dispose
or transfer for value or otherwise agree to engage in any of the foregoing
transactions with respect to, any shares issued pursuant to an Award granted
under the Plan without the prior written consent of the Company or its
underwriters. Such limitations shall be in effect for such period of time as may
be requested by the Company or such underwriters and agreed to by the Company's
officers and directors with respect to their shares; provided, however, that in
no event shall such

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period exceed 180 days. The limitations of this paragraph shall in all events
terminate two years after the effective date of the Company's initial public
offering. Holders of shares issued pursuant to an Award granted under the Plan
shall be subject to the market standoff provisions of this paragraph only if the
officers and directors of the Company are also subject to similar arrangements.

     In the event of any stock split, stock dividend, recapitalization,
combination of shares, exchange of shares or other change affecting the
Company's outstanding Common Stock effected as a class without the Company's
receipt of consideration, then any new, substituted or additional securities
distributed with respect to the purchased shares shall be immediately subject to
the provisions of this Section 13, to the same extent the purchased shares are
at such time covered by such provisions.

     In order to enforce the limitations of this Section 13, the Company may
impose stop-transfer instructions with respect to the purchased shares until the
end of the applicable standoff period.

                SECTION 14.  AMENDMENT AND TERMINATION OF PLAN

14.1  Amendment of Plan

      The Plan may be amended only by the Board in such respects as it shall
deem advisable.

14.2  Termination of Plan

      The Board may suspend or terminate the Plan at any time.  The Plan shall
have no fixed expiration date.

14.3  Consent of Holder

      The amendment or termination of the Plan shall not, without the consent of
the Holder of any Award under the Plan, impair or diminish any rights or
obligations under any Award theretofore granted under the Plan.

                             SECTION 15.  GENERAL

15.1  Award Agreements

      Awards granted under the Plan shall be evidenced by a written agreement
that shall contain such terms, conditions, limitations and restrictions as the
Plan Administrator shall deem advisable and that are not inconsistent with the
Plan.

15.2  Continued Employment or Services; Rights in Awards

      None of the Plan, participation in the Plan or any action of the Plan
Administrator taken under the Plan shall be construed as giving any person any
right to be retained in the employ of the Company or limit the Company's right
to terminate the employment or services of any person.

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15.3  Registration

      The Company shall be under no obligation to any Holder to register for
offering or resale or to qualify for exemption under the Securities Act, or to
register or qualify under state securities laws, any shares of Common Stock,
security or interest in a security paid or issued under, or created by, the
Plan, or to continue in effect any such registrations or qualifications if made.
The Company may issue certificates for shares with such legends and subject to
such restrictions on transfer and stop-transfer instructions as counsel for the
Company deems necessary or desirable for compliance by the Company with federal
and state securities laws.

      Inability of the Company to obtain, from any regulatory body having
jurisdiction, the authority deemed by the Company's counsel to be necessary for
the lawful issuance and sale of any shares hereunder or the unavailability of an
exemption from registration for the issuance and sale of any shares hereunder
shall relieve the Company of any liability in respect of the nonissuance or sale
of such shares as to which such requisite authority shall not have been
obtained.

      As a condition to the exercise of an Option or any other receipt of Common
Stock pursuant to an Award under the Plan, the Company may require the Holder to
represent and warrant at the time of any such exercise or receipt that such
shares are being purchased or received only for the Holder's own account and
without any present intention to sell or distribute such shares if, in the
opinion of counsel for the Company, such a representation is required by any
relevant provision of the aforementioned laws.  At the option of the Company, a
stop-transfer order against any such shares may be placed on the official stock
books and records of the Company, and a legend indicating that such shares may
not be pledged, sold or otherwise transferred, unless an opinion of counsel is
provided (concurred in by counsel for the Company) stating that such transfer is
not in violation of any applicable law or regulation, may be stamped on stock
certificates to ensure exemption from registration.  The Plan Administrator may
also require such other action or agreement by the Holder as may from time to
time be necessary to comply with the federal and state securities laws.

15.4  No Rights as a Shareholder

      No Option shall entitle the Holder to any cash dividend, voting or other
right of a shareholder unless and until the date of issuance under the Plan of
the shares that are the subject of such Option, free of all applicable
restrictions.

15.5  No Trust or Fund

      The Plan is intended to constitute an "unfunded" plan. Nothing contained
herein shall require the Company to segregate any monies or other property, or
shares of Common Stock, or to create any trusts, or to make any special deposits
for any immediate or deferred amounts payable to any Holder, and no Holder shall
have any rights that are greater than those of a general unsecured creditor of
the Company.

15.6  Severability

      If any provision of the Plan or any Award is determined to be invalid,
illegal or unenforceable in any jurisdiction, or as to any person, or would
disqualify the Plan or any Award under any law deemed applicable by the Plan
Administrator, such provision shall be construed or

                                      -12-
<PAGE>

deemed amended to conform to applicable laws, or, if it cannot be so construed
or deemed amended without, in the Plan Administrator's determination, materially
altering the intent of the Plan or the Award, such provision shall be stricken
as to such jurisdiction, person or Award, and the remainder of the Plan and any
such Award shall remain in full force and effect.

                          SECTION 16.  EFFECTIVE DATE

     The Plan's Effective Date is the date on which it is adopted by the Board.

     Adopted by the Board on January 5, 2001.

                                      -13-<PAGE>

                                                                    Exhibit 10.2

                              EMPLOYMENT AGREEMENT

     This Employment Agreement ("Agreement") is made and entered into as of the
Closing (the "Effective Date"), by and between Onyx Software Corporation, a
Washington corporation (the "Company"), and Kevin Corcoran ("Employee").

     WHEREAS, the Company, RevenueLab LLC, a Delaware limited liability company,
and the Members of RevenueLab, LLC (including Employee) have entered into a Unit
Purchase Agreement (the "Purchase Agreement"), dated as of the date of this
Agreement, pursuant to which the Company will purchase all of the outstanding
Class A and Class B membership units of RevenueLab, LLC. After the closing of
the transactions contemplated by the Purchase Agreement (the "Closing"),
RevenueLab LLC will be a wholly owned subsidiary of the Company.

     WHEREAS, the Company desires to employ Employee and Employee desires to be
employed by the Company, all upon the terms and conditions set forth herein.

     WHEREAS, the execution of this Agreement by the parties hereto is a
condition to the Closing.

     NOW, THEREFORE, in consideration of the mutual covenants and agreements
contained herein, and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Company and Employee agree as
follows:

     1.   EMPLOYMENT

     1.1  Appointment.  The Company agrees to employ Employee to serve in the
capacity of Chief Marketing Officer ("CMO") or in such other position as the
Company may determine at its sole discretion, and Employee accepts such
employment in accordance with the terms of employment hereinafter specified
("Employee's Employment").

     2.  DUTIES AND SCOPE OF EMPLOYMENT

     2.1  Duties.  Employee shall report directly to Chief Executive Officer
("CEO"), or any other manager selected by the Company. Employee's duties shall
include such duties as reasonably dictated by the Company.

     2.2  Obligations.  Employee agrees to faithfully and conscientiously serve
the Company, to devote his full time, skill, attention and energy to the
business and affairs of the Company and its direct and indirect subsidiaries
(collectively, the "Affiliates"), and to perform his duties hereunder
competently, diligently and to the best of his abilities. During the term of
Employee's Employment, Employee's services shall be rendered exclusively for the
Company and its Affiliates, and Employee shall not render services for his own
account or for any third party, without the prior written approval of the CEO.
Nothing contained in this Section shall preclude or restrict Employee from (i)
making passive investments or from performing volunteer, charitable, religious,
community, or other minimally-compensated (i.e., less than $5,000 per annum)
work, which neither interfere with the performance of his duties hereunder nor
violate any other agreement between Employee and the Company or (ii) performing
the activities detailed in Schedule 1 to this Agreement.

<PAGE>

     3.   COMPENSATION AND BENEFITS

     3.1  Base Compensation.  During the term of employment under this
Agreement, the Company agrees to pay the Employee as compensation for services a
base salary at the annual rate of $150,000 or at such higher rate as the Company
may determine from time to time. Such salary shall be payable semi-monthly in
accordance with the standard payroll procedures of the Company. The annual
compensation specified in this Section 3.1, together with any adjustments in
such compensation that the Company may grant from time to time is referred to in
this Agreement as "Base Compensation."

     3.2  Bonus.  Employee shall be entitled to a one-time bonus in the amount
of $37,500, which will be due and payable upon the Closing.

     3.3  Leveraged Compensation Plan.  Employee will participate in the
Company's annual incentive compensation plan ("Leveraged Compensation Plan").
Employee shall be eligible to participate in Onyx' Leveraged Compensation
Program for a target of $150,000 if he achieves the specific performance
objectives for any given one-year period, broken out into 6 month segments and
semi-annual reviews and pay-outs. The performance objectives shall be determined
and approved at the beginning of each performance period by the CEO (or other
manager as contemplated in Section 2.1) in collaboration with the Employee.
Employees leveraged compensation will be determined based upon both the
Company's achievement of designated financial and business goals and the
designated financial and business objectives of RevenueLab. The specifics of
Employee's incentive bonus shall be detailed in Employee's individual
compensation plan, which is hereby incorporated by reference.

     3.4  Stock Options.

          3.4.1  Provided that Employee has executed a Termination of Option
Offer (as defined in the Purchase Agreement), Employee shall be granted
nonqualified stock options to purchase 105,282 shares of Onyx common stock at
$5.957 per/1/ share (the "Options") pursuant to a non-plan grant, the terms of
such non-plan grant to be materially consistent with the Company's 2001 Non-
officer Employee Stock Compensation Plan. The Options shall vest over the course
of four and one-half years, with 22% vesting on the one-year anniversary of
grant and 1/54 vesting each month thereafter; provided, however, that if (i)
Employee is terminated without Reasonable Cause or (ii) Employee resigns for
Good Reason (each term, as defined below), before the eighteen-month anniversary
of the Closing (the "First Milestone"), the Options shall, upon termination,
automatically vest and become exercisable for a total of 33%/2/ of the total
number of Onyx shares originally subject to the Option. In addition, if Employee
is still employed by the Company as of the First Milestone, but thereafter (i)
is terminated without Reasonable Cause or (ii) resigns for Good Reason, the
Options shall, upon such termination or resignation, automatically vest and

-------------------
/1/ Note: the tentative calculation for the strike price is (580,738 x fair
market value of the Company stock on date of grant - $1.84 million) 580,738. If
any of the Founders does not become employed with Onyx this calculation will be
adjusted as follows: instead of 580,738 in the numerator and denominator, the
number will be 580,738 minus the number of options that would have been
allocated to that Founder. I.e., options allocated to founders who do not join
Onyx will revert back to Onyx and the total pool of founders' options will be
decreased.]
/2/ Note: represents 18 months' worth of vesting on the 4 1/2 year schedule.

                                       2
<PAGE>

become exercisable for an additional 11%/3/ of the total number of Onyx shares
originally subject to the Option (in addition to that portion already vested and
exercisable at the time of termination).

     Notwithstanding the foregoing, in the event of either (i) Employee's death
or (ii) Employee's Permanent and Total Disability, the Options shall
automatically vest and become immediately exercisable for a total of 100% of the
total number of Onyx shares originally subject to the Option. Permanent and
Total Disability is defined as if the Employee is unable to engage in any
substantial gainful activity by reason of any medically determinable physical or
mental impairment which can be expected to last for a continuous period of not
less than 12 months. An individual shall not be considered to be permanently and
totally disabled unless he furnishes proof of the existence thereof in such form
and manner, and at such times, at the Company Secretary may require.

          3.4.2  In addition to the Options detailed in Section 3.4.1 above,
Employee shall be granted nonqualified stock options to purchase an additional
150,000 shares of Onyx common stock (the "Second Grant") pursuant to a non-plan
grant, the terms of such non-plan grant to be materially consistent with the
Company's 2001 Non-officer Employee Stock Compensation Plan. The exercise price
of the Second Grant shall be the fair market value of the Company common stock
on the date of grant. The options shall vest 25% on the first anniversary of the
date of grant, with an additional 2.0833% each month thereafter, resulting in
the option vesting 100% four years after the date of grant. For the avoidance of
doubt, the acceleration provisions contained in Section 3.4.1 shall not apply to
the Second Grant.

     3.5  Benefits.  During the term of employment under this Agreement, the
Employee shall be eligible to participate in the employee benefit plans and
employee compensation programs maintained by the Company, including (without
limitation) 401(k) and employee stock purchase plans, life, disability, medical,
dental, vision, accident and other insurance programs, transportation fringe
benefit plans, paid vacations, and similar plans or programs, subject in each
case to the generally applicable terms and conditions of the plan or program in
question and to the discretion and determinations of any person, committee or
entity administering such plan or program. Company and Employee acknowledge that
Employee shall be entitled to twenty (20) personal days off each year, which is
higher than the standard Company policy of fifteen (15) days.

     3.6  Business Expenses and Travel.  During the term of employment under
this Agreement, the Employee shall be authorized to incur necessary and
reasonable travel, entertainment and other business expenses in connection with
the Employees duties hereunder. The Company shall reimburse the Employee for
such expenses in accordance with generally applicable policies.

     3.7  Relocation.  Employee shall be required to relocate to Bellevue,
Washington in conjunction with the offer of employment hereunder. Relocation
benefits shall be paid to Employee pursuant to the Company's executive
relocation plan, which is hereby incorporated by reference.

-------------------
/3/ Note: represents 6 months' worth of vesting on the 4 1/2 year schedule.

                                       3
<PAGE>

     4.   TERMINATION OF EMPLOYMENT

     4.1  Death or Disability of the Employee.  Notwithstanding anything in this
Agreement to the contrary, with the exception for the vesting acceleration
provisions in Section 3.4, this Agreement shall automatically terminate upon the
death or disability of the Employee, as permitted by law. For the purpose of
this Agreement, disability shall mean mental or physical illness or condition
certified in writing by Employee's doctor(s), not including the death of the
Employee, which either (i) significantly impairs the Employee's abilities to
perform his duties for a period of ninety (90) consecutive days, or (ii)
significantly impairs Employee's ability to perform his duties for one hundred
eighty (180) days or more in any twelve month period.

     4.2  Termination of Employee.  The Company may terminate the Employee's
employment at any time and for any reason, with or without Reasonable Cause (as
hereinafter defined) by providing written notice of termination to Employee,
provided, however, that if such termination is without Reasonable Cause (i) the
Company shall continue to pay to Employee the then current Base Salary for a
period of three (3) months following the date of such termination and (ii) the
vesting of Employee's Options shall be accelerated as provided in Section 3.4.

     4.3  Definition of Reasonable Cause.  The term "Reasonable Cause" shall be
defined as and strictly limited to one of the following grounds: (a) failure by
the Employee to perform the duties under this Agreement, other than a failure
resulting from Employee's complete or partial incapacity due to physical or
mental illness or impairment; (b) gross misconduct by the Employee that is
materially injurious to the Company; (c) breach by the Employee of a provision
of this Agreement; (d) violation of federal or state law or regulation
applicable to the business of the Company that is injurious to the Company; and
(e) violation of the Employee's statutory duty of loyalty to the Company. Upon
termination of Employee's employment with the Company for Reasonable Cause, the
Company shall be under no further obligation to the Employee, except to pay all
accrued but unpaid base salary to the date of termination.

     4.4  Resignation by Employee For Good Reason.  The Employee may resign from
his or her employment with the Company for Good Reason (as defined below) with
thirty (30) days' written notice. Following resignation by the Employee for Good
Reason, the Company shall continue to pay to Employee the then current Base
Salary for a period of three (3) months following the date of such termination
and the vesting of Employee's Options shall be accelerated as provided in
Section 3.4. For purposes of this Agreement, "Good Reason" means the occurrence
of any of the following without Employee's express written consent, unless, in
the case of clauses (a), (c) and (d), such circumstances are fully corrected
before the date of termination specified in the notice of termination given by
Employee to the Company with respect to such circumstances: (a) failure by the
Company to timely pay, or reduction by the Company, of Employee's annual base
salary; (b) a requirement by Company that the principal place of business at
which Employee performs his or her duties be changed to a location more than 50
miles from the current location; (c) a failure by the Company to continue in
effect any benefits provided to Employee, unless the Company provides Employee
with a plan or plans that provide substantially similar benefits, or the taking
of any action by the Company that would adversely affect Employee's benefits
under any such plans or deprive Employee of any material fringe benefit enjoyed
by him or her, except to the extent that such loss or reduction of benefits is
applicable to all employees of similar position and authority; or (d) any
material breach by the Company of any provision of this Agreement.

                                       4
<PAGE>

     5.  TRADE SECRETS AND ASSIGNMENT OF INVENTIONS

     5.1  Confidential Information

          5.1.1  Acknowledgement.  The Company and the Employee acknowledge that
the services to be performed by the Employee under this Agreement are unique and
extraordinary and that, as a result of the Employee's employment, the Employee
will be in a relationship of confidence and trust with the Company and will come
into possession of "Confidential Information" (1) owned or controlled by the
Company, (2) in the possession of the Company and belonging to third parties or
(3) conceived, originated, discovered or developed, in whole or in part, by the
Employee. As used herein "Confidential Information" includes trade secrets and
other confidential or proprietary business, technical, personnel or financial
information, whether or not the Employee's work product, in written, graphic,
oral or other tangible or intangible forms, including but not limited to
specifications, samples, records, data, computer programs, drawings, diagrams,
models, customer names, ID's or e-mail addresses, business or marketing plans,
studies, analyses, projections and reports, communications by or to attorneys
(including attorney-client privileged communications), memos and other materials
prepared by attorneys or under their direction (including attorney work
product), and software systems and processes. Any information that is not
readily available to the public shall be considered to be a trade secret and
confidential and proprietary, even if it is not specifically marked as such,
unless the Company advises the Employee otherwise in writing.

          5.1.2  Nondisclosure.  The Employee agrees that the Employee will not,
without the prior written consent of the Company, directly or indirectly use or
disclose Confidential Information to any person, during or after the Employee's
employment, except as may be necessary in the ordinary course of performing the
Employee's duties under this Agreement. The Employee will keep the Confidential
Information in strictest confidence and trust. This Section 5.1.2 shall apply
indefinitely, both during and after the term of this Agreement.

          5.1.3  Surrender Upon Termination.  The Employee agrees that in the
event of the termination of the Employee's employment for any reason, the
Employee will immediately deliver to the Company all property belonging to the
Company, including all documents and materials of any nature pertaining to the
Employee's work with the Company, and will not take with the Employee any
documents or materials of any description, or any reproduction thereof of any
description, containing or pertaining to any Confidential Information. It is
understood that the Employee is free to use information that is in the public
domain (not as a result of a breach of this Agreement).

     5.2  Inventions and Creations Belong to the Corporation

          5.2.1  Any and all inventions, discoveries, improvements, or creations
(collectively "Creations") which the Employee has conceived or made or may
conceive or make during the period of employment under this Agreement in any
way, directly or indirectly, connected with the Company's business shall be the
sole and exclusive property of the Company. The Employee agrees that all
copyrightable works created by the Employee or under the Company's direction in
connection with the Company's business are "works made for hire" and shall be
the sole and complete property of the Company and that any and all copyrights to
such works shall belong to the Company. To the extent such works are not deemed
to be "works made for hire," the Employee hereby assigns all proprietary rights,
including copyright, in these works to the Company without further compensation.

                                       5
<PAGE>

          5.2.2  The Employee further agrees to (i) disclose promptly to the
Company all such Creations which the Employee has made or may make solely,
jointly, or commonly with others, (ii) assign all such Creations to the Company,
and (iii) execute and sign any and all applications, assignments, or other
instruments which the Company may deem necessary in order to enable it, at its
expense, to apply for, prosecute, and obtain copyrights, patents or other
proprietary rights in the United States and foreign countries or in order to
transfer to the Company all right, title, and interest in said Creations.

          5.2.3  NOTICE REQUIRED BY REVISED CODE OF WASHINGTON 49.44.140:  Any
assignment of Inventions required by this Agreement does not apply to an
Invention for which no equipment, supplies, facilities or trade secret
information of the Company was used and which was developed entirely on the
employee's own time, unless (a) the Invention relates (i) directly to the
business of the Company or (ii) to the Company's actual or demonstrably
anticipated research or development, or (b) the Invention results from any work
performed by the employee for the Company.

     6.   MISCELLANEOUS

     6.1  Waiver.  No provision of this Agreement shall be modified, waived or
discharged unless the modification, waiver or discharge is agreed to in writing
and signed by the Employee and by an authorized officer of the Company. No
waiver by either party of any breach of, or of compliance with, any condition or
provision of this Agreement by the other party shall be considered a waiver of
any other condition or provision or of the same condition or provision at
another time.

     6.2  Whole Agreement.  No agreements, representations or understandings
(whether oral or written and whether express or implied) that are not expressly
set forth in this Agreement have been made or entered into by either party with
respect to the subject matter hereof. In addition, the Employee hereby
acknowledges and agrees that this Agreement supersedes in its entirety any
employment agreement between the Employee and the Company and the Employee and
RevenueLab LLC. As of the effective date of this Agreement, any such employment
agreements shall terminate without any further obligation by either party
thereto, and the Employee hereby relinquishes any further rights that the
Employee may have had under any such prior employment agreements.

     6.3  Notice.  Notices and all other communications contemplated by this
Agreement shall be in writing and shall be deemed to have been duly given when
personally delivered or when mailed by U.S. registered or certified mail, return
receipt requested and postage prepaid. In the case of the Employee, mailed
notices shall be addressed to the Employee at the home of the Company, mailed
notices shall be addressed to its corporate headquarters, and all notices shall
be directed to the attention of its General Counsel.

     6.4  Choice of Law.  The validity, interpretation, construction and
performance of this Agreement shall be governed by the laws of the State of
Washington. Jurisdiction and venue for any claims arising under this Agreement
shall lie exclusively in King County, Washington State, USA.

                                       6
<PAGE>

     6.5  Severability.  The invalidity or unenforceability of any provision or
provisions of this Agreement shall not affect the validity or enforceability of
any other provision hereof, which shall remain in full force and effect.

     6.6  No Assignment of Benefits.  The rights of any person to payments or
benefits under this Agreement shall not be made subject to option or assignment,
either by voluntary or involuntary assignment or by operation of law, including
(without limitation) bankruptcy, garnishment, attachment or other creditor's
process, and any action in violation of this Subsection 6.6 shall be void.

     6.7  Employment at Will; Limitation of Remedies.  The Company and the
Employee acknowledge that the Employee's employment is at will, as defined under
applicable law. If the Employee's employment terminates for any reason, the
Employee shall not be entitled to any payments, benefits, damages, awards or
compensation other than as provided by this Agreement.

     6.8  Employment Taxes.  All payments made pursuant to this Agreement shall
be subject to withholding of applicable taxes.

     IN WITNESS WHEREOF, each of the parties has executed this Agreement, in the
case of the Company by its duly authorized officer, as of the day and year first
above written.  Employee has consulted (or has had the opportunity to consult)
with his or her own counsel prior to execution of this Agreement.

                                       ONYX SOFTWARE CORPORATION

                                       By: /s/ Brent Frei
                                           -------------------------------------
                                           Brent Frei

                                       Its: Chief Executive Officer
                                            ------------------------------------

                                       EMPLOYEE

                                                    /s/ Kevin Corcoran
                                       -----------------------------------------
                                       Kevin Corcoran

                                       7
<PAGE>

                                   Schedule l

Intentionally left blank.

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