Document:

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                                                                    Exhibit 10.4

      THIS WARRANT HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE "ACT"), OR APPLICABLE STATE SECURITIES LAWS, AND NO INTEREST MAY BE
SOLD, DISTRIBUTED, ASSIGNED, OFFERED PLEDGED OR OTHERWISE TRANSFERRED EXCEPT TO
A PERMITTED TRANSFEREE (AS DEFINED HEREIN) AND UNLESS (A) THERE IS AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS
COVERING ANY SUCH TRANSACTION INVOLVING SAID SECURITIES, (B) SUCH TRANSACTION
COMPLIES WITH RULE 144, (C) THIS CORPORATION RECEIVES AN OPINION OF LEGAL
COUNSEL FOR THE HOLDER OF THESE SECURITIES REASONABLY SATISFACTORY TO THIS
CORPORATION STATING THAT SUCH TRANSACTION IS EXEMPT FROM REGISTRATION, OR (D)
THIS CORPORATION OTHERWISE SATISFIES ITSELF THAT SUCH TRANSACTION IS EXEMPT FROM
REGISTRATION.

      SUBJECT TO THE PROVISIONS OF SECTION 10 HEREOF, THIS WARRANT SHALL BE VOID
AFTER 5:00 P.M. EASTERN TIME ON MAY 19, 2008 (the "EXPIRATION DATE").

Warrant No. P-1                                        Number of Shares:  25,000
Date of Issuance: May 19, 2003

                            ONYX SOFTWARE CORPORATION

                      WARRANT TO PURCHASE 25,000 SHARES OF

                   COMMON STOCK, PAR VALUE $0.01 PER SHARE

      For VALUE RECEIVED, Robert Majteles ("Warrantholder"), is entitled to
purchase, subject to the provisions of this Warrant, from Onyx Software
Corporation, a Washington corporation ("Company"), at any time not later than
5:00 p.m., Eastern time, on the Expiration Date (as defined above), at an
exercise price per share equal to $.8125 (the exercise price in effect being
herein called the "Warrant Price"), 25,000 shares ("Warrant Shares") of the
Company's Common Stock, par value $0.01 per share ("Common Stock"). The number
of Warrant Shares purchasable upon exercise of this Warrant and the Warrant
Price shall be subject to adjustment from time to time as described herein.

      Section 1. Registration. The Company shall maintain books for the transfer
and registration of the Warrant. Upon the initial issuance of this Warrant, the
Company shall issue and register the Warrant in the name of the Warrantholder.

      Section 2. Transfers. This Warrant may not be transferred to any person or
entity unless such person is a Permitted Transferee (as defined below) and one
of the following is true: (A) there is an effective registration statement under
the Securities Act of 1933, as amended (the "Securities Act") and applicable
state securities laws covering any such transaction involving this Warrant, (B)
such transaction complies with Rule 144, (C) the Company receives an opinion of
legal counsel for the holder of this Warrant reasonably satisfactory to the
Company stating that
<PAGE>
such transaction is exempt from registration, or (D) the Company otherwise
satisfies itself that such transaction is exempt from registration. For purposes
of this Section 2, the term "Permitted Transferee" shall mean, with respect to
the Warrantholder, (i) an Affiliate of such Warrantholder or (y) a transferee of
Warrants to purchase not less than (i) 50,000 shares of Common Stock (subject to
adjustment as provided in Section 8 hereof, including pursuant to the Reverse
Split as such term is defined in the Purchase Agreement referred to below) or
(ii) all of the shares of Common Stock then held by such Warrantholder, provided
that (A) notice of such transfer is duly given by such Warrantholder to the
Company and (B) the transferee agrees in writing to be bound by the terms of
this Warrant. Subject to such restrictions, the Company shall transfer this
Warrant from time to time upon the books to be maintained by the Company for
that purpose, upon surrender thereof for transfer properly endorsed or
accompanied by appropriate instructions for transfer and such other documents as
may be reasonably required by the Company, including, if required by the
Company, an opinion of its counsel to the effect that such transfer is exempt
from the registration requirements of the Securities Act, to establish that such
transfer is being made in accordance with the terms hereof, and a new Warrant
shall be issued to the transferee and the surrendered Warrant shall be canceled
by the Company.

      Section 3. Exercise of Warrant. Subject to the provisions hereof, the
Warrantholder may exercise this Warrant in whole or in part at any time prior to
its expiration upon surrender of the Warrant, together with delivery of the duly
executed Warrant exercise notice attached hereto as Appendix A (the "Exercise
Notice") and payment by cash, certified check or wire transfer of funds for the
aggregate Warrant Price for that number of Warrant Shares then being purchased,
to the Company during normal business hours on any business day at the Company's
principal executive offices (or such other office or agency of the Company as it
may designate by notice to the holder hereof). The Warrant Shares so purchased
shall be deemed to be issued to the holder hereof or such holder's designee, as
the record owner of such shares, as of the close of business on the date on
which this Warrant shall have been surrendered (or evidence of loss, theft or
destruction thereof and security or indemnity satisfactory to the Company), the
Warrant Price shall have been paid and the completed Exercise Notice shall have
been delivered. Certificates for the Warrant Shares so purchased, representing
the aggregate number of shares specified in the Exercise Notice, shall be
delivered to the holder hereof within a reasonable time, not exceeding three (3)
business days, after this Warrant shall have been so exercised. The certificates
so delivered shall be in such denominations as may be requested by the holder
hereof and shall be registered in the name of such holder or such other name as
shall be designated by such holder. If this Warrant shall have been exercised
only in part, then, unless this Warrant has expired, the Company shall, at its
expense, at the time of delivery of such certificates, deliver to the holder a
new Warrant representing the number of shares with respect to which this Warrant
shall not then have been exercised. As used herein, "business day" means a day,
other than a Saturday or Sunday, on which banks in New York City are open for
the general transaction of business. Each exercise hereof shall constitute the
re-affirmation by the Warrantholder that the Warrantholder's representations and
warranties contained in Section 5 of the Purchase Agreement, dated as of May 19,
2003, by and among the Company and the Investors named therein (including the
Warrantholder)(the "Purchase Agreement") are true and correct in all material
respects with respect to the Warrantholder as of the time of such exercise.

                                       -2-
<PAGE>
      Section 4. Compliance with the Securities Act of 1933. The Company may
cause the legend set forth on the first page of this Warrant to be set forth on
each Warrant or similar legend on any security issued or issuable upon exercise
of this Warrant, unless counsel for the Company is of the opinion as to any such
security that such legend is unnecessary.

      Section 5. Payment of Taxes. The Company will pay any documentary stamp
taxes attributable to the initial issuance of Warrant Shares issuable upon the
exercise of the Warrant; provided, however, that the Company shall not be
required to pay any tax or taxes which may be payable in respect of any transfer
involved in the issuance or delivery of any certificates for Warrant Shares in a
name other than that of the registered holder of this Warrant in respect of
which such shares are issued, and in such case, the Company shall not be
required to issue or deliver any certificate for Warrant Shares or any Warrant
until the person requesting the same has paid to the Company the amount of such
tax or has established to the Company's reasonable satisfaction that such tax
has been paid. The holder shall be responsible for income taxes due under
federal, state or other law, if any such tax is due.

      Section 6. Mutilated or Missing Warrants. In case this Warrant shall be
mutilated, lost, stolen, or destroyed, the Company shall issue in exchange and
substitution of and upon cancellation of the mutilated Warrant, or in lieu of
and substitution for the Warrant lost, stolen or destroyed, a new Warrant of
like tenor and for the purchase of a like number of Warrant Shares, but only
upon receipt of evidence reasonably satisfactory to the Company of such loss,
theft or destruction of the Warrant, and with respect to a lost, stolen or
destroyed Warrant, reasonable indemnity or bond with respect thereto, if
requested by the Company.

      Section 7. Reservation of Common Stock. The Company hereby represents and
warrants that there have been reserved, and the Company shall at all applicable
times keep reserved until issued (if necessary) as contemplated by this Section
7, out of the authorized and unissued shares of Common Stock, sufficient shares
to provide for the exercise of the rights of purchase represented by this
Warrant. The Company agrees that all Warrant Shares issued upon due exercise of
the Warrant shall be, at the time of delivery of the certificates for such
Warrant Shares, duly authorized, validly issued, fully paid and non-assessable
shares of Common Stock of the Company.

      Section 8. Adjustments. Subject and pursuant to the provisions of this
Section 8, the Warrant Price and number of Warrant Shares subject to this
Warrant shall be subject to adjustment from time to time as set forth
hereinafter.

            (a) If the Company shall, at any time or from time to time while
this Warrant is outstanding, pay a dividend or make a distribution on its Common
Stock in shares of Common Stock, subdivide its outstanding shares of Common
Stock into a greater number of shares or combine its outstanding shares of
Common Stock into a smaller number of shares (including pursuant to the Reverse
Split contemplated by the Purchase Agreement) or issue by reclassification of
its outstanding shares of Common Stock any shares of its capital stock
(including any such reclassification in connection with a consolidation or
merger in which the Company is the continuing corporation), then the number of
Warrant Shares purchasable upon

                                       -3-
<PAGE>
exercise of the Warrant and the Warrant Price in effect immediately prior to the
date upon which such change shall become effective, shall be adjusted by the
Company so that the Warrantholder thereafter exercising the Warrant shall be
entitled to receive the number of shares of Common Stock or other capital stock
which the Warrantholder would have received if the Warrant had been exercised
immediately prior to such event upon payment of a Warrant Price that has been
adjusted to reflect a fair allocation of the economics of such event to the
Warrantholder. Such adjustments shall be made successively whenever any event
listed above shall occur.

            (b) If at any time after the date hereof there shall be any capital
reorganization or reclassification of the capital stock of the Company (a
"Reorganization"), consolidation or merger of the Company with another
corporation in which the Company is not the survivor, or sale, transfer or other
disposition of all or substantially all of the Company's assets to another
corporation (a "Merger"), then, as a condition of such Reorganization or Merger,
lawful and adequate provision shall be made whereby each Warrantholder shall
thereafter have the right to purchase and receive upon the basis and upon the
terms and conditions herein specified and in lieu of the Warrant Shares
immediately theretofore issuable upon exercise of the Warrant, such shares of
stock, securities, cash or assets as would have been issuable or payable with
respect to or in exchange for a number of Warrant Shares equal to the number of
Warrant Shares immediately theretofore issuable upon exercise of the Warrant,
had such Reorganization or Merger not taken place, and in any such case
appropriate provision shall be made with respect to the rights and interests of
each Warrantholder to the end that the provisions hereof (including, without
limitation, provision for adjustment of the Warrant Price) shall thereafter be
applicable, as nearly equivalent as may be practicable in relation to any shares
of stock, securities, cash or assets thereafter deliverable upon the exercise
thereof. The Company shall not effect any such Reorganization or Merger unless
prior to or simultaneously with the consummation thereof the successor
corporation (if other than the Company) resulting from such Reorganization or
Merger, or the corporation purchasing or otherwise acquiring such assets or
other appropriate corporation or entity shall assume the obligation to deliver
to the holder of the Warrant, at the last address of such holder appearing on
the books of the Company, such shares of stock, securities or assets as, in
accordance with the foregoing provisions, such holder may be entitled to
purchase, and the other obligations under this Warrant. The provisions of this
paragraph (b) shall similarly apply to successive Reorganizations and Mergers.

            (c) In case the Company shall fix a payment date for the making of a
distribution to all holders of Common Stock (including any such distribution
made in connection with a consolidation or merger in which the Company is the
continuing corporation) of evidences of indebtedness or assets (other than cash
dividends or cash distributions payable out of consolidated earnings or earned
surplus or dividends or distributions referred to in Section 8(a)), or
subscription rights or warrants, the Warrant Price to be in effect after such
payment date shall be determined by multiplying the Warrant Price in effect
immediately prior to such payment date by a fraction, the numerator of which
shall be the total number of shares of Common Stock outstanding multiplied by
the Market Price (as defined below) per share of Common Stock immediately prior
to such payment date, less the fair market value (as determined by the Company's
Board of Directors in good faith) of said assets or evidences of indebtedness so
distributed, or of such subscription rights or warrants, and the denominator of
which shall be the

                                       -4-
<PAGE>
total number of shares of Common Stock outstanding multiplied by such Market
Price per share of Common Stock immediately prior to such payment date. "Market
Price" as of a particular date (the "Valuation Date") shall mean the following:
(a) if the Common Stock is then listed on a national stock exchange, the closing
sale price of one share of Common Stock on such exchange on the last trading day
prior to the Valuation Date; (b) if the Common Stock is then quoted on The
Nasdaq Stock Market, Inc. ("Nasdaq"), the closing sale price of one share of
Common Stock on Nasdaq on the last trading day prior to the Valuation Date or,
if no such closing sale price is available, the average of the high bid and the
low asked price quoted on Nasdaq on the last trading day prior to the Valuation
Date; or (c) if the Common Stock is not then listed on a national stock exchange
or quoted on Nasdaq, the fair market value of one share of Common Stock as of
the Valuation Date, shall be determined in good faith by the Board of Directors
of the Company and the Warrantholder. The Board of Directors of the Company
shall respond promptly, in writing, to an inquiry by the Warrantholder prior to
the exercise hereunder as to the Market Value of a share of Common Stock as
determined by the Board of Directors of the Company. In the event that the Board
of Directors of the Company and the Warrantholder are unable to agree upon the
Market Value in respect of subpart (c) hereof, the Company and the Warrantholder
shall jointly select an appraiser, who is experienced in such matters. The
decision of such appraiser shall be final and conclusive, and the cost of such
appraiser shall be borne evenly by the Company and the Warrantholder. Such
adjustment shall be made successively whenever such a payment date is fixed.

            (d) An adjustment to the Warrant Price shall become effective
immediately after the payment date in the case of each dividend or distribution
and immediately after the effective date of each other event which requires an
adjustment.

            (e) In the event that, as a result of an adjustment made pursuant to
this Section 8, the holder of this Warrant shall become entitled to receive any
shares of capital stock of the Company other than shares of Common Stock, the
number of such other shares so receivable upon exercise of this Warrant shall be
subject thereafter to adjustment from time to time in a manner and on terms as
nearly equivalent as practicable to the provisions with respect to the Warrant
Shares contained in this Warrant.

      Section 9. Fractional Interest. The Company shall not be required to issue
fractions of Warrant Shares upon the exercise of this Warrant. If any fractional
share of Common Stock would, except for the provisions of the first sentence of
this Section 9, be deliverable upon such exercise, the Company, in lieu of
delivering such fractional share, shall pay to the exercising holder of this
Warrant an amount in cash equal to the Market Price of such fractional share of
Common Stock on the date of exercise.

      Section 10. Extension of Expiration Date. If the Company fails to cause
any Registration Statement covering Registrable Securities (unless otherwise
defined herein, capitalized terms are as defined in the Registration Rights
Agreement dated as of May 19, 2003 by and among the Company and the Investors
named therein, including the Warrantholder (the "Registration Rights
Agreement")) to be declared effective prior to the applicable dates set forth
therein, or if any of the events specified in Section 2(c)(ii) of the
Registration Rights Agreement

                                       -5-
<PAGE>
occurs, and the Blackout Period (whether alone, or in combination with any other
Blackout Period) continues for more than 60 days in any 12 month period, or for
more than a total of 90 days, then the Expiration Date of this Warrant shall be
extended one day for each day beyond the 60-day or 90-day limits, as the case
may be, that the Blackout Period continues.

      Section 11. Benefits. Nothing in this Warrant shall be construed to give
any person, firm or corporation (other than the Company and the Warrantholder)
any legal or equitable right, remedy or claim, it being agreed that this Warrant
shall be for the sole and exclusive benefit of the Company and the
Warrantholder.

      Section 12. Notices to Warrantholder. Upon the happening of any event
requiring an adjustment of the Warrant Price, the Company shall promptly give
written notice thereof to the Warrantholder at the address appearing in the
records of the Company, stating the adjusted Warrant Price and the adjusted
number of Warrant Shares resulting from such event and setting forth in
reasonable detail the method of calculation and the facts upon which such
calculation is based. Failure to give such notice to the Warrantholder or any
defect therein shall not affect the legality or validity of the subject
adjustment.

      Section 13. Identity of Transfer Agent. The Transfer Agent for the Common
Stock is Mellon Investor Services, Seattle, Washington. Upon the appointment of
any subsequent transfer agent for the Common Stock or other shares of the
Company's capital stock issuable upon the exercise of the rights of purchase
represented by the Warrant, the Company will mail to the Warrantholder a
statement setting forth the name and address of such transfer agent.

      Section 14. Notices. Unless otherwise provided, any notice required or
permitted under this Warrant shall be given in writing and shall be deemed
effectively given as hereinafter described (i) if given by personal delivery,
then such notice shall be deemed given upon such delivery, (ii) if given by
telex or facsimile, then such notice shall be deemed given upon receipt of
confirmation of complete transmittal, (iii) if given by mail, then such notice
shall be deemed given upon the earlier of (A) receipt of such notice by the
recipient or (B) three days after such notice is deposited in first class mail,
postage prepaid, and (iv) if given by an internationally recognized overnight
air courier, then such notice shall be deemed given one day after delivery to
such carrier. All notices shall be addressed as follows: if to the
Warrantholder, at its address as set forth in the Company's books and records
and, if to the Company, at the address as follows, or at such other address as
the Warrantholder or the Company may designate by ten days' advance written
notice to the other:

                  If to the Company:

                          Onyx Software Corporation
                          1100 112th Avenue, Suite 100
                          Bellevue, Washington 98004-4504
                          Attention: Paul B. Dauber
                          Fax: (425) 732-2413

                                       -6-
<PAGE>
                  With a copy to:

                          Orrick, Herrington & Sutcliffe LLP
                          719 Second Avenue, Suite 900
                          Seattle, Washington 98104
                          Attention:  Alan C. Smith
                          Fax: (206) 839-4301

      Section 15. Registration Rights. The initial holder of this Warrant is
entitled to the benefit of certain registration rights with respect to the
shares of Common Stock issuable upon the exercise of this Warrant as provided in
the Registration Rights Agreement, and any subsequent holder hereof may be
entitled to such rights.

      Section 16. Successors. All the covenants and provisions hereof by or for
the benefit of the Warrantholder shall bind and inure to the benefit of its
respective successors and assigns hereunder.

      Section 17. Governing Law. This Warrant shall be governed by, and
construed in accordance with, the internal laws of the State of New York,
without reference to the choice of law provisions thereof. The Company and, by
accepting this Warrant, the Warrantholder, each irrevocably submits to the
exclusive jurisdiction of the courts of the State of New York located in New
York County and the United States District Court for the Southern District of
New York for the purpose of any suit, action, proceeding or judgment relating to
or arising out of this Warrant and the transactions contemplated hereby. Service
of process in connection with any such suit, action or proceeding may be served
on each party hereto anywhere in the world by the same methods as are specified
for the giving of notices under this Warrant. The Company and, by accepting this
Warrant, the Warrantholder, each irrevocably consents to the jurisdiction of any
such court in any such suit, action or proceeding and to the laying of venue in
such court. The Company and, by accepting this Warrant, the Warrantholder, each
irrevocably waives any objection to the laying of venue of any such suit, action
or proceeding brought in such courts and irrevocably waives any claim that any
such suit, action or proceeding brought in any such court has been brought in an
inconvenient forum.

      Section 18. Cashless Exercise.

            Net Issue Election. With and only with the consent of the Company in
its sole discretion, the Warrantholder may elect to receive, without the payment
by the Warrantholder of the aggregate Warrant Price in respect of the shares of
Common Stock to be acquired, shares of Common Stock equal to the value of this
Warrant or any portion hereof by the surrender of this Warrant (or such portion
of this Warrant being so exercised) together with the Net Issue Election Notice
annexed hereto as Appendix B duly executed, at the office of the Company.
Thereupon, the Company shall issue to the Warrantholder such number of fully
paid, validly issued and nonassessable shares of Common Stock as is computed
using the following formula:

                                       -7-
<PAGE>
                                  X = Y (A - B)
                                      ---------
                                          A

where

                  X = the number of shares of Common Stock which the
Warrantholder has then requested be issued to the Warrantholder;

                  Y = the total number of shares of Common Stock covered by this
Warrant which the Warrantholder has surrendered at such time for cashless
exercise (including both shares to be issued to the Warrantholder and shares to
be canceled as payment therefor);

                  A = the "Fair Market Value" of one share of Common Stock as at
the time the net issue election is made; and

                  B = the Warrant Price in effect under this Warrant at the time
the net issue election is made.

      Section 19. Call Provision. Notwithstanding any other provision contained
herein to the contrary, in the event that the closing bid price of a share of
Common Stock as traded on the Nasdaq (or such other exchange or stock market on
which the Common Stock may then be listed or quoted) equals or exceeds $.975
(appropriately adjusted for any stock split, reverse stock split, stock dividend
or other reclassification or combination of the Common Stock occurring after the
date hereof) for ten (10) consecutive trading days and all of the shares of
Common Stock issuable hereunder either (i) are registered pursuant to an
effective Registration Statement (as defined in the Registration Rights
Agreement) which is available for sales of such shares of Common Stock during
the Notice Period (as defined below) or (ii) no longer constitute Registrable
Securities (as defined in the Registration Rights Agreement), the Company, upon
ten (10) days prior written notice (the "Notice Period") given to the
Warrantholder immediately following such ten (10) trading day period, may demand
that the Warrantholder exercise its rights hereunder, and the Warrantholder must
exercise its rights prior to the expiration of the Notice Period or if such
exercise is not made or if only a partial exercise is made, any and all rights
to further exercise rights hereunder shall cease upon the expiration of the
Notice Period.

      Section 20. No Rights as Shareholder. Prior to the exercise of this
Warrant, the Warrantholder shall not have or exercise any rights as a
shareholder of the Company by virtue of its ownership of this Warrant.

      Section 21. Amendment; Waiver. This Warrant is one of a series of Warrants
of like tenor issued by the Company pursuant to the Purchase Agreement,
including a warrant to purchase an aggregate of 25,000 shares of Common Stock
issued at Closing (as defined in the Purchase Agreement) and any warrants issued
as Antidilution Warrants (as defined in the Purchase Agreement) (all such
warrants, collectively, the "Company Warrants"). Any term of this Warrant may be
amended or waived (including the adjustment provisions included in Section 8 of
this Warrant) upon the written consent of the Company and the holders of Company
Warrants representing at least 50% of the number of shares of Common Stock then
subject to all

                                       -8-
<PAGE>
outstanding Company Warrants (the "Majority Holders"); provided, that (x) any
such amendment or waiver must apply to all Company Warrants; and (y) the number
of Warrant Shares subject to this Warrant, the Warrant Price and the Expiration
Date may not be amended, and the right to exercise this Warrant may not be
altered or waived, without the written consent of the Warrantholder.

      Section 22. Section Headings.  The section headings in this Warrant are
for the convenience of the Company and the Warrantholder and in no way alter,
modify, amend, limit or restrict the provisions hereof.

                                       -9-
<PAGE>
      IN WITNESS WHEREOF, the Company has caused this Warrant to be duly
executed, as of the 19th day of May, 2003.

                                    ONYX SOFTWARE CORPORATION

                                    By: /s/ BRIAN C. HENRY
                                        -------------------------------
                                    Name:  Brian C. Henry
                                    Title: Executive Vice President and
                                           Chief Financial Officer

                                      -10-
<PAGE>
                                   APPENDIX A
                            ONYX SOFTWARE CORPORATION
                             WARRANT EXERCISE NOTICE

To: Onyx Software Corporation:

      The undersigned hereby irrevocably elects to exercise the right of
purchase represented by the within Warrant ("Warrant") for, and to purchase
thereunder by the payment of the Warrant Price and surrender of the Warrant,
_______________ shares of Common Stock ("Warrant Shares") provided for therein,
and requests that certificates for the Warrant Shares be issued as follows:

                  -------------------------------
                  Name

                  --------------------------------
                  Address

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

                  --------------------------------
                  Federal Tax ID or Social Security No.

      and delivered by (certified mail to the above address, or
                       (electronically (provide DWAC Instructions:_________), or
                       (other (specify): _____________________________________).

and, if the number of Warrant Shares shall not be all the Warrant Shares
purchasable upon exercise of the Warrant, that a new Warrant for the balance of
the Warrant Shares purchasable upon exercise of this Warrant be registered in
the name of the undersigned Warrantholder or the undersigned's Assignee as below
indicated and delivered to the address stated below.

Dated: ___________________, ____

Note:  The signature must correspond with
Signature:______________________________
the name of the registered holder as written
on the first page of the Warrant in every
particular, without alteration or enlargement   ------------------------------
or any change whatever, unless the Warrant      Name (please print)
has been assigned.

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

                                                ------------------------------
                                                Address

                                                ------------------------------
                                                Federal Identification or
                                                Social Security No.

<PAGE>
                                                Assignee:
                                                ------------------------------

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

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

                                      -12-
<PAGE>
                                   APPENDIX B

                            Net Issue Election Notice

To: Onyx Software Corporation

Date:_________________________

      The undersigned hereby elects under Section 18 of this Warrant to
surrender the right to purchase ____________ shares of Common Stock pursuant to
this Warrant and hereby requests the issuance of _____________ shares of Common
Stock. The certificate(s) for the shares issuable upon such net issue election
shall be issued in the name of the undersigned or as otherwise indicated below.

      -----------------------------------------
      Signature

      -----------------------------------------
      Name for Registration

      -----------------------------------------
      Mailing Address<PAGE>
                                                                   EXHIBIT 10.38

                     FIFTH AMENDMENT AND ASSIGNMENT OF LEASE

         This FIFTH AMENDMENT AND ASSIGNMENT OF LEASE (this "Fifth Amendment")
is made effective as of April 1, 2003 ("Effective Date"), by and among 1130
RAINIER, LLC, a Washington limited liability company, f/k/a MANUS BUILDING, with
offices located at 5030 Roosevelt Way NE, Suite 300, Seattle, Washington 98105
("Landlord"), ACTIVATE.NET CORPORATION, a Delaware corporation, n/k/a LOUDEYE
ENTERPRISE COMMUNICATIONS, INC., with offices at 1130 Rainier Avenue South,
Suite 300, Seattle, Washington 98114 ("Tenant") and LOUDEYE CORP., f/k/a LOUDEYE
TECHNOLOGIES, INC., a Delaware corporation with offices at 1130 Rainier Avenue
South, Suite 300, Seattle, Washington 98114 ("Assignee").

                                    RECITALS

         WHEREAS, Landlord and Tenant have entered into a written Lease dated
August 31, 1990, which Lease was amended by the First Amendment of Lease dated
September 21, 1999, and by the Second Amendment of Lease dated October 6, 1999,
and by the Third Amendment of Lease dated May 1, 2000, and by the Fourth
Amendment of Lease dated August 18, 2000 (collectively, the "Lease"), whereby
Landlord leased to Tenant the premises located in the County of King, State of
Washington, more particularly described in the Lease;

         WHEREAS, Assignee subleased from Tenant one half (1/2) of the premises
pursuant to a Sublease dated February 1, 2002 (the "Sublease"); and

         WHEREAS, Landlord and Tenant desire to amend the Lease for the purpose
of reducing the amount of space, length of term and rent payable under the Lease
and assign the Lease to Assignee.

                                    AGREEMENT

         NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties hereto hereby agree as
follows:

         1. Definitions. Capitalized terms that are not specifically defined
herein shall have the meaning provided in the Lease. On and after the Effective
Date, the Lease shall be deemed to incorporate the terms of this Fifth Amendment
as an integral part thereof. In the event of any conflict between the terms of
this Fifth Amendment and the Lease, the provisions of the Fifth Amendment shall
control.

         2. Application of Security. Landlord and Tenant agree that Landlord may
pay itself the Security Deposit, in which the Landlord holds a validly perfected
security interest, in the amount of Two Hundred Eighteen Thousand Five Hundred
and No/100 ($218,500.00) Dollars. Tenant grants to Landlord the right to
liquidate the letter of credit, #SLCSSEA00818 from U.S. Bank National
Association, in the remaining sum of Nineteen Thousand Six Hundred Twenty-Two
and 92/100 ($19,622.92) Dollars, and Tenant shall immediately execute all
documents needed to secure such release from the holder of the Letter of Credit.
Upon payment of the

                                       1
<PAGE>
Security Deposit or liquidation of the letter of credit, Tenant and Assignee
shall be under no obligation to replenish either the Security Deposit or the
letter of credit.

         3. Assignment. Landlord agrees to permit Assignee to take assignment of
a portion of Tenant's rights under the Lease, and occupy a portion of the
premises under the terms of the Lease, as such terms are modified herein.

                  (a) Modified Length of Assignee's Term. The modified term of
         occupancy by Assignee shall be from April 1, 2003 through and including
         June 30, 2003 ("Reduced Term"), which term may be extended as provided
         in Paragraph 6.

                  (b) Reduced Space. The Assignee shall be entitled to occupy
         only that portion of the premises described in Paragraph 4 and Exhibit
         B of this Fifth Amendment, which shall be referred to herein as the
         "Reduced Space." All portions of the premises other than the Reduced
         Space are hereby surrendered to the Landlord, and are no longer subject
         to the terms of the Lease (except to the extent that use of the Reduced
         Space requires incidental use of the common areas of the premises). The
         use of the Reduced Space shall include all improvements located therein
         and in the common areas of the premises reasonably needed for use of
         the Reduced Space, including the improvements described in paragraph
         3(e).

                  (c) Modified Rent. The Assignee shall pay to Landlord the sum
         of Three Hundred Fifty Thousand ($350,000) Dollars for the Reduced Term
         described in paragraph 3(a), in advance of the commencement of the
         term. In the event that the Assignee vacates the Reduced Space before
         the end of the Reduced Term, or any portion thereof, the Assignee shall
         not be entitled to any refund of the rent paid.

                  (d) Utility Expenses. The Assignee shall pay to Landlord, in
         advance, the sum of Sixty-Thousand ($60,000) Dollars for Assignee's
         future utility expenses for the Reduced Space for the Reduced Term, or
         to be applied toward utility expenses in any Extension Term (as
         hereinafter defined in Paragraph 6).

                  (e) Use of Fixtures. Assignee shall be entitled to use of the
         fixtures located on the premises (including those which were installed
         by the Tenant during its occupancy of the premises) during the Reduced
         Term or any Extension Term, Tenant confirms that the following assets
         of Tenant, which were affixed to the premises and are properly part of
         the premises pursuant to Section 14(a) of the Lease are the property of
         the Landlord and are held by the Landlord free and clear of any and all
         claims, liens and adverse interests:

                          Fixtures

                           (i)      Satellite improvements that are attached to,
                                    or located on, the roof;

                           (ii)     Electrical generator; and

                           (iii)    Existing Tenant Improvements including all
                                    communication and data wiring and cabling
                                    and other property, provided

                                       2
<PAGE>
                                    such property is attached to, behind the
                                    walls of, or under the floors of the
                                    Premises, and the wall mounted monitors in
                                    Grand Central but excluding all equipment
                                    racking systems.

         4. Premises. As of the Effective Date, the description of the Premises
demised by the Lease is hereby amended to specifically exclude any space on the
top floor ("Floor 3") of the Premises and approximately one-half of the ground
floor ("Floor 2") as depicted in Exhibit A, pages 1 and 2 ("Surrendered Space").
During the period from April 1, 2003 to June 30, 2003 ("Reduced Term") or any
Extension Term (as hereinafter defined), Assignee shall have the right to use
all of the space in the basement ("Floor 1") and the remaining portion of Floor
2, as depicted in Exhibit B, pages 1 and 2 ("Reduced Space").

         5. Rent. As of the Effective Date, the Annual Basic Rent and Direct
Expense amounts listed in Sections 5 and 6 of the Lease, as amended, shall be
replaced by those amounts provided for in Paragraphs 3(c) and 5, herein.

         6. Term; Extension Terms. Unless otherwise timely extended pursuant to
this paragraph, the Lease shall terminate June 30, 2003, (the "Expiration
Date"). Assignee shall have two (2) options to extend the term of the Lease,
each extension for an additional three (3) month period. Each option may be
exercised by Assignee only upon thirty (30) days written notice to Landlord
(each an "Extension Term"), under the following conditions:

                  (a) Assignee shall pay Landlord, as rent, One Hundred Thousand
         ($100,000) Dollars at the time of exercise of each option to extend the
         term of the Lease; and

                  (b) Assignee shall pay Landlord, as prepaid utility expenses,
         an amount equal to the actual utility expenses incurred by Landlord for
         the Reduced Space for the prior three month period, in advance of the
         beginning of any Extension Term (any unused utility expense funds from
         the Reduced Term or prior Extension Term shall be credited to the
         upcoming Extension Term) or returned to Assignee if the Lease is
         otherwise terminated.

         7. Landlord's Entry. Landlord may, without prior notice to Assignee,
show the Reduced Space to prospective tenants and real estate brokers. Landlord
shall have the right to place "For Lease" signs on the building and/or on the
roof of any location and in such size as Landlord deems reasonably necessary.

         8. Surrender of the Premises. Upon the Effective Date, Expiration Date,
and Termination Date (as hereinafter defined), as applicable, Tenant and
Assignee shall surrender the Surrendered Space or Reduced Space, as applicable,
to Landlord, and Landlord shall accept such portion of the Premises, subject to
the following conditions:

                  (a) Tenant and Assignee shall vacate the Premises leaving such
         space in good order, condition and repair, ordinary wear and tear
         excepted;

                  (b) Tenant and Assignee shall remove all of its personal
         property and signage from the Premises, excluding those items listed in
         Section 3(e) herein, leaving the

                                       3
<PAGE>
         Premises free from all trash and debris and in a broom-clean condition
         (Tenant and Assignee shall, at its sole cost and expense paid prior to
         commencement of any personal property removal or work, use Doyle
         Technology Consultants or other such company reasonably acceptable to
         Landlord, to remove Tenant's and Assignee's personal property and label
         all communications, data and other wiring in the Premises to facilitate
         future use);

                  (c) Tenant and Assignee shall repair and restore any damage to
         the Premises or Building caused by or resulting from Tenant's and
         Assignee's use and vacation of the Premises or Tenant's and Assignee's
         removal of personal property from the Premises as required hereunder
         (Tenant and Assignee shall, at its sole cost and expense paid prior to
         commencement of any personal property removal or work, use Carroll
         Construction, or other such company reasonably acceptable to Landlord,
         to make such required repairs and restorations); and

                  (d) Tenant and Assignee shall return all security cards, the
         security computer, and keys to Landlord.

         9. Lease Expiration. Upon the expiration of the Lease, including the
Reduced Term and any Extension Term, this Lease shall be of no force and effect
and Tenant and Assignee shall surrender to, and Landlord shall accept, the
Reduced Space, subject to the obligations set forth in Section 8 and Landlord's
refund to Assignee, within thirty five (35) days following the Expiration Date,
of any unused portion of pre-paid utility expenses as of the Expiration Date.

         10. Landlord's Termination Right. Landlord shall have the right to
terminate the Lease at any time after mutual execution of a lease for the
Reduced Space with a new tenant. Tenant and Assignee shall surrender the Reduced
Space to Landlord within forty-five (45) days ("Termination Date") following
Landlord's written notice to Assignee. In addition to the obligations set forth
in Section 7, upon such termination Landlord shall be required to refund to
Assignee any unused portion of pre-paid utility expenses and pre-paid rent on a
pro-rata basis, no later than five (5) days as to rent and thirty five (35) days
as to utility expenses following the Termination Date.

         11. Parking. Tenant and Assignee shall vacate the parking lot for the
Premises no later than April 1, 2003, except for forty (40) parking spaces on
the upper level that Assignee may use until June 30, 2003. Assignee shall be
entitled to use such parking spaces during the Reduced Term and any Extension
Term at no cost.

         12. Security. Tenant shall return to Landlord on the Effective Date all
security cards, the control of the security computer, and keys for the Premises
not currently in use and shall supply to Landlord a list of all employees of
Tenant or Assignee currently in possession of and using such cards and keys by
card number and key.

         13. Representation of Tenant. Tenant represents that the property
described in Paragraph 3(e) as property of the Landlord is delivered "as is"
with no additional representations regarding its value or condition, other than
a warranty of clear title by Tenant to Landlord.

                                       4
<PAGE>
         14. Release and Waiver. Landlord hereby releases Tenant, Loudeye Corp.,
Loudeye Enterprise Communications, Inc. and their respective officers,
shareholders, directors, employees, agents, successors, assigns, subsidiaries
and affiliates from any obligations relating to the Premises except for those
obligations provided herein, and any rights arising under that certain Sublease,
dated February 1, 2002, by and between Tenant and Sublandlord and Loudeye
Technologies, Inc., n/k/a Loudeye Corp. as subtenant, for Tenant's or
subtenant's failure to perform its obligations in relation thereto. Landlord
hereby waives and relinquishes any right to pursue or hold Tenant liable for any
default or pending default under the Lease existing as of the Effective Date.
Tenant, Loudeye Corp., and Loudeye Enterprise Communications, Inc. hereby
releases Landlord, and its respective officers, shareholders, directors,
employees, agents, successors, assigns, subsidiaries and affiliates from any
obligations relating to the Premises except for those obligations provided
herein, and any obligations arising under that certain Sublease, dated February
1, 2002, approved by Landlord, between Tenant and Sublandlord and Loudeye
Technologies, Inc., n/k/a Loudeye Corp. as subtenant. Tenant and Assignee hereby
waive and relinquish any right to pursue or hold Landlord liable for any default
or pending default under the Lease existing as of the Effective Date.

         15. Counterparts. This Fifth Amendment may be executed in any number of
counterparts, each of which shall be deemed an original and all such
counterparts shall constitute one agreement. To facilitate execution of this
Fifth Amendment, the parties may execute and exchange facsimile counterparts of
the signature pages and facsimile counterparts shall serve as originals.

         16. Settlement Costs. Upon execution of this Amendment and presentment
of an invoice for legal fees, Tenant or Assignee shall pay for Landlord's
reasonable, actual legal fees and court costs in documenting this Fifth
Amendment and vacating the judgment entered in the Pending Action which fees
shall not exceed Six Thousand and No/100 ($6,000.00) Dollars.

         17. Vacating Judgments; Confessions of Judgment. Simultaneous with the
execution of this Fifth Amendment, Landlord shall vacate that certain judgment
taken against Activate.net Corporation presently known as Loudeye Enterprise
Communications, Inc. on 21 March 2003 for the principal amount of $314,964.24 in
the underlying action entitled 1130 Rainier, LLC v. Loudeye Corporation, et al.,
No. 03-2-21144-3 SEA ("Pending Action"); deliver to Tenant the Confession of
Judgment executed by the Tenant in the Pending Action on 21 March 2003; and
dismiss the pending action with prejudice and without costs to either party.
Simultaneously with the execution of this Fifth Amendment, Assignee shall
deliver to counsel for Landlord a Confession of Judgment in the form attached as
Exhibit C, which Confession of Judgment shall be held by counsel for the
Landlord according to the terms recited therein.

                                       5
<PAGE>
         18. Assignment and Assumption. As of the Effective Date, Tenant hereby
assigns all of Tenant's obligations under the Lease to Assignee and Assignee
hereby assumes all of Tenant's obligations under the Lease. Landlord hereby
consents to the assignment and assumption of the Lease set forth herein.

LANDLORD:                                         TENANT:

1130 RAINIER, LLC                                 LOUDEYE ENTERPRISE
f/k/a MANUS BUILDING                              COMMUNICATIONS, INC. f/k/a
By Seavest Financial Corporation                  ACTIVATE.NET CORPORATION

By:_____________________________                  By:___________________________
Name: Paul E. Krug                                Name:
Title: President                                  Title:

                                                  ASSIGNEE:

                                                  LOUDEYE CORP. f/k/a Loudeye
                                                  Technologies Inc

                                                  By:___________________________
                                                  Name:
                                                  Title:

STATE OF WASHINGTON        )
                           )  ss.
COUNTY OF KING             )

         I certify that I know or have satisfactory evidence that Paul E. Krug
is the person who appeared before me, and said person acknowledged that he was
authorized to execute the instrument and acknowledged it as the President of
Seavest Financial Corporation, which corporation is the manager of 1130 Rainier,
LLC, to be the free and voluntary act of such party for the uses and purposes
mentioned in this instrument.

                                        DATED:  _____________________ 2003

                                        __________________________________
                                        ____________________ (Printed Name)
                                        Notary Public
                                        My Appointment Expires: ____________

STATE OF WASHINGTON        )
                           )  ss.
COUNTY OF ___________      )

         I certify that I know or have satisfactory evidence that
________________ is the person who appeared before me, and said person
acknowledged that _____ was authorized to execute

                                        6
<PAGE>
the instrument and acknowledged it as the ________________ of Loudeye Enterprise
Communications, Inc. to be the free and voluntary act of such party for the uses
and purposes mentioned in this instrument.

                                        DATED:  _____________________ 2003

                                        __________________________________
                                        ____________________ (Printed Name)
                                        Notary Public
                                        My Appointment Expires: ____________

STATE OF WASHINGTON        )
                           )  ss.
COUNTY OF ___________      )

         I certify that I know or have satisfactory evidence that
________________ is the person who appeared before me, and said person
acknowledged that _____ was authorized to execute the instrument and
acknowledged it as the ________________ of Loudeye Corporation to be the free
and voluntary act of such party for the uses and purposes mentioned in this
instrument.

                                        DATED:  _____________________ 2003

                                        __________________________________
                                        ____________________ (Printed Name)
                                        Notary Public
                                        My Appointment Expires: ____________

                                        7
<PAGE>
                                    EXHIBIT A

                                        8
<PAGE>
                                    EXHIBIT B

                                        9
<PAGE>
                                    EXHIBIT C

                                       10

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