Document:

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                                                                   EXHIBIT 10.15

                              EMPLOYMENT AGREEMENT

                  THIS EMPLOYMENT AGREEMENT ("Agreement") is made and entered
into as of the 7th day of February, 2001, by and among FreeMarkets, Inc., a
Delaware corporation ("Parent"), Adexa, Inc., a California corporation (the
"Company"), all of the outstanding capital stock of which will be owned by
Parent following the Merger, and Dr. K. Cyrus Hadavi, an individual (the
"Employee"). Defined terms used in this Agreement and not otherwise defined
herein shall have the meanings set forth in that certain Agreement and Plan of
Reorganization, dated as of the date hereof (the "Reorganization Agreement"), by
and among Parent, Axe Acquisition Corporation and the Company.

                              W I T N E S S E T H:

         WHEREAS, Parent and the Company are parties to the Reorganization
Agreement, which contemplates the acquisition by Parent of all of the
outstanding equity interests in the Company; and

         WHEREAS, Employee presently serves as an employee of the Company, and
the Company and Parent desire that Employee continue as an employee of the
Company following the Effective Time of the Merger on the terms and conditions
contained in this Agreement, and Employee wishes to continue as an employee of
the Company following the Effective Time on the terms and conditions contained
in this Agreement; and

         WHEREAS, in order to induce Parent to enter into the Reorganization
Agreement, Employee has agreed to continue as an employee of the Company
following the Effective Time on the terms and conditions contained in this
Agreement; and

         WHEREAS, the effectiveness of this Agreement is a condition to the
obligation of Parent to consummate the transactions contemplated by the
Reorganization Agreement.

         NOW, THEREFORE, in consideration of the promises and of the mutual
covenants contained herein, Parent, the Company and Employee, each intending to
be legally bound hereby, agree as follows:

         1. Effectiveness; Employment

                  (a) This Agreement shall become effective at the Closing of
the Merger of Axe Acquisition Corporation with and into the Company pursuant to
which the Company shall become a wholly owned subsidiary of Parent (the
"Effective Date").

                  (b) At the Effective Date, the Company shall employ Employee
as an employee of the Company, and Employee hereby accepts employment with the
Company, for

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the Term (as defined in Section 3 hereof) and upon the terms and conditions
contained in this Agreement.

                  (c) Notwithstanding anything in this Agreement to the
contrary, in the event that the Merger is not consummated, then this Agreement
shall be void and of no force and effect whatsoever.

         2. Position and Duties.

                  (a) During the Term, Employee shall serve as Vice Chairman and
General Manager of iCollaboration Business Unit, a Member of the Office of the
Chairman of Parent, and as a member of the Senior Leadership Team, and Employee
shall perform such duties and accept all responsibilities incidental to such
position or, consistent with Employee's position, as may reasonably be assigned
to Employee by the Board of Directors of the Company or by those having
supervisory authority over Employee. Employee shall report to the Chief
Executive Officer and Chairman of Parent. Employee shall cooperate fully with
the Board of Directors and the employees of the Company and of Parent. Further,
Employee agrees and acknowledges that the Chief Executive Officer of Parent has
the authority to change Employee's reporting relationships.

                  (b) Throughout the Term, Employee will faithfully and
diligently devote Employee's entire working time, energy, skill and best efforts
to the performance of Employee's duties hereunder in a manner which will further
the business and interests of the Company and its Affiliates. As used herein,
the term "Affiliate" shall mean Parent and any corporation, association or other
business entity of which more than 50% of the securities or other ownership
interests having voting power is owned or controlled, directly or indirectly, by
Parent, including, without limitation, the Company.

         3. Term of Employment. Subject to Section 1(c), the term of Employee's
employment (the "Term") pursuant to this Agreement commences on the Effective
Date and ends on December 31, 2002, unless sooner terminated as hereinafter
provided. Any continued employment by the Company or Parent upon expiration of
the Term shall be on an at-will basis, which can be terminated by either party
at any time.

         4. Compensation.

                  (a) For all of the services rendered by Employee to the
Company, Employee will be paid an initial annual base salary of $275,000 payable
in periodic installments in accordance with the Company's regular payroll
practices in effect from time to time. In addition to the annual base salary,
Employee shall be eligible for a bonus in an amount not to exceed 30% of
Employee's annual base salary. This annual base salary and bonus amount may be
increased from time to time by action of the Board of Directors or officers of
Parent or the Company.

                  (b) Throughout the Term, Employee will be eligible to receive
fringe benefits and will be eligible to participate in the benefit plans and
programs sponsored by Parent (including, without limitation, retirement, savings
or profit sharing plans, incentive or other

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bonus plans, life, disability, health, accident and other insurance programs,
and any paid vacation or leave programs) in the manner and at the level that
generally is afforded to similarly situated employees of Parent and its
Affiliates, subject, in each case, to the applicable terms and conditions of the
applicable benefit plan or program in question. To the extent provided under any
such plan or program, Parent shall retain any discretionary authority reserved
to Parent to determine the level and amount of any benefit provided to Employee.
Employee will receive full credit, for purposes of eligibility for participation
in such benefit plans or programs, for service rendered to the Company prior to
the Merger. Notwithstanding the foregoing, Parent shall not be required to offer
a particular plan, program or benefit at a work location of Parent and its
Affiliates if Parent, after exercising reasonable diligence, determines that
such plan, program or benefit is not readily available to employees at such work
location on terms that the Parent determines to be reasonable. Further, Employee
acknowledges and understands that Parent and its Affiliates will not provide
Employee with an automobile or an allowance or reimbursement to subsidize the
cost of an automobile.

         5. Discharge.

                  (a) The Company may discharge Employee at any time for Cause
upon written notice. In the event Employee is discharged for Cause, the Company
may, in its sole discretion, cease all payment of salary and provision of
benefits to Employee (except as otherwise provided under Section 5(c)).

                  (b) The Company may discharge the Employee at any time without
Cause upon written notice. In the event that the Company discharges Employee
without Cause prior to expiration of the Term, Employee shall be entitled to
receive continuation of his base salary for the period that is the longer of (i)
the remainder of the Term, or (ii) 90 days from the date of Employee's discharge
without Cause. Notwithstanding the expiration of the Term as described in
Section 3, in the event that Employee is terminated without Cause after the
expiration of the Term, Employee shall be entitled to receive continuation of
his base salary for a period of 90 days from the date of Employee's discharge
without Cause.

                  (c) Upon termination of Employee's employment for whatever
reason, Employee will be paid the value of all unused vacation and allowed to
continue medical coverage to the extent provided for by COBRA and other
applicable law.

                  (d) For purposes of this Agreement, "Cause" shall mean any of
the following:

                           (i) the substantial failure, as determined by the
Board of Directors of Parent (the "Board"), to render services in accordance
with Employee's duties under this Agreement (other than due to "disability" as
determined by the Board under the definition set forth in Section 22(e)(3) of
the Internal Revenue Code) after timely written notice of the substantial
failure is provided to Employee and a reasonable cure period of no less than 30
days has been provided by the Company to Employee, provided, however, that the
Company need not provide notice to Employee more than one (1) time in any six
(6) month period regarding a substantially similar failure and need not provide
either notice or a cure period with respect to any matter which the Board deems
to be incurable;

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                           (ii) the conviction of, or plea of nolo contendere
in, a felony, or any other crime involving moral turpitude;

                           (iii) commission of an act of personal dishonesty or
breach of fiduciary duty involving personal profit in connection with the
Company or Parent;

                           (iv) the commission of an act, or failure to act,
involving gross misconduct or gross negligence in the conduct of Employee's
duties;

                           (v) acceptance of employment other than with the
Company, Parent or an Affiliate;

                           (vi) breach of the Noncompetition Agreement, dated as
of the date hereof, by and amount Parent, the Company and Employee; or

                           (vii) violation by Employee of the Confidentiality
and Invention Assignment agreement referenced in Section 6, or any of the
provisions of Section 7 of this Agreement.

         6. Confidentiality and Invention Assignment. At the Closing, Employee
shall execute Parent's standard form of confidentiality and invention assignment
agreement for employees of Parent and its subsidiaries.

         7. Prior Agreements. Employee represents to the Company and Parent
that: (a) there are no restrictions, agreements or understandings whatsoever to
which Employee is a party or by which Employee is bound which would prevent or
make unlawful Employee's execution of this Agreement or employment hereunder;
(b) Employee's execution of this Agreement and employment hereunder do not
constitute a breach of any contract, agreement or understanding, oral or
written, to which Employee is a party or by which Employee is bound; and (c)
Employee is free and able to execute this Agreement and to enter into employment
hereunder on the terms and subject to the conditions hereof.

         8.       Miscellaneous.

                  (a) Indulgences, Etc. Any failure or delay on the part of
either party to exercise any right, remedy, power or privilege under this
Agreement will not operate as a waiver thereof, nor will any single or partial
exercise of any right, remedy, power or privilege preclude any other or further
exercise of the same or of any other right, remedy, power or privilege, nor will
any waiver of any right, remedy, power or privilege with respect to any
occurrence be construed as a waiver of that right, remedy, power or privilege
with respect to any other occurrence.

                  (b) Notices. All notices, requests, demands and other
communications required or permitted under this Agreement must be in writing and
will be deemed to have been duly given on the day established by the sender as
having been delivered personally; on the day

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delivered by a private courier as established by the sender by evidence obtained
from the courier; or on the 5th day after the date mailed, by certified or
registered mail, return receipt requested, postage prepaid, addressed as set
forth below:

                           (i)      If to Employee:

                                    Attn: Cyrus Hadavi
                                    5933 West Century Boulevard
                                    12th Floor
                                    Los Angeles, California 90045-5471

                           (ii)     If to the Company or Parent:

                                    FreeMarkets, Inc.
                                    22nd Floor, FreeMarkets Center
                                    210 Sixth Avenue
                                    Pittsburgh, PA 15222
                                    Attn: Glen T. Meakem

         In addition, notice by mail must be by airmail if posted outside of the
continental United States. Any party may alter the address to which
communications or copies are to be sent by giving notice of any change of
address to the other party in conformity with the provisions of this paragraph
for the giving of notice.

                  (c) Binding Nature of Agreement; Assignment. This Agreement
shall be binding upon and inure to the benefit of the Company, Parent, and their
successors and assigns and shall be binding upon Employee and shall inure to the
benefit of Employee and Employee's heirs, executors, and administrators. The
Company may assign this Agreement at any time to any Affiliate or any successor
in interest to the entire business of the Company, provided that such assignment
will not relieve the Company of its obligations hereunder and that such assignee
will agree in writing to be subject to all of the terms of this Agreement.
Employee may not assign this Agreement.

                  (d) Execution in Counterparts. This Agreement may be executed
in any number of counterparts, each of which will be deemed to be an original
and all of which will together constitute one and the same instrument.

                  (e) Provisions Separable. Any provision of this Agreement
which is invalid or unenforceable in any jurisdiction shall be ineffective to
the extent of such invalidity or unenforceability without invalidating or
rendering unenforceable the remaining provisions hereof, and any such invalidity
or unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

                  (f) Entire Agreement. This Agreement contains the entire
understanding between the parties hereto with respect to the subject matter
hereof, and supersedes all prior and contemporaneous agreements and
understandings, inducements or conditions, express or

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implied, oral or written, with respect to the subject matter hereof. The express
terms hereof control and supersede any course of performance and/or usage of the
trade inconsistent with any of such terms. This Agreement may not be modified or
amended other than by an agreement in writing signed by all the parties hereto.

                  (g) Section Headings. The section headings in this Agreement
are for convenience only; they form no part of this Agreement and will not
affect its interpretation.

                  (h) Gender, etc. Words used herein, regardless of the number
and gender specifically used, will be deemed and construed to include any other
number, singular or plural, and any other gender, masculine, feminine or neuter,
as the context indicates is appropriate.

                  (i) Governing Law. This Agreement shall be construed and
interpreted in accordance with and governed by the laws of the Commonwealth of
Pennsylvania excluding its conflicts of laws rules.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

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

                                     FREEMARKETS, INC.

                                     By:   /s/ JOAN HOOPER
                                         ----------------------------
                                     Name:  JOAN HOOPER
                                     Title: SENIOR VICE PRESIDENT AND
                                            CHIEF FINANCIAL OFFICER

                                     ADEXA, INC.

                                     By:  /s/ J. TIMOTHY ROMER
                                         ----------------------------
                                     Name:  J. TIMOTHY ROMER
                                     Title: CHIEF FINANCIAL OFFICER

                                     EMPLOYEE:

                                        /s/ K. CYRUS HADAVI
                                     --------------------------------<PAGE>   1
                                                                   EXHIBIT 10.16

                            NONCOMPETITION AGREEMENT

         THIS NONCOMPETITION AGREEMENT ("Agreement") is made and entered into as
of the 7th day of February, 2001, by and among FreeMarkets, Inc., a Delaware
corporation ("Parent"), Adexa, Inc., a California corporation (the "Company"),
and Dr. K. Cyrus Hadavi, an individual (the "Shareholder"). Defined terms used
in this Agreement and not otherwise defined herein shall have the meanings set
forth in that certain Agreement and Plan of Reorganization, dated as of the date
hereof (the "Reorganization Agreement"), by and among Parent, Axe Acquisition
Corporation and the Company.

                              W I T N E S S E T H:

         WHEREAS, Parent and the Company are parties to the Reorganization
Agreement, which contemplates the acquisition by Parent of all of the
outstanding equity interests in the Company; and

         WHEREAS, the Shareholder is the beneficial owner of 8,700,000 Company
Common Shares and will receive shares of Parent Common Stock upon consummation
of the Merger (the "Merger Payment");

         WHEREAS, in order to induce Parent to enter into the Reorganization
Agreement and to pay to the Shareholder the Merger Payment, the Shareholder has
agreed not to engage in competition under the terms and conditions set forth in
this Agreement;

         WHEREAS, Parent would not have entered into the Reorganization
Agreement without the execution by the Shareholder of this Agreement;

         WHEREAS, the Shareholder's covenant not to compete as set forth in this
Agreement is essential to the preservation of the goodwill and the value of the
Company to Parent and constitutes a material inducement for Parent to enter into
the Reorganization Agreement and a material portion of the consideration
bargained for by Parent thereunder;

         WHEREAS, the execution and delivery of this Agreement is a condition to
the obligation of Parent to consummate the transactions contemplated by the
Reorganization Agreement;

         NOW, THEREFORE, in consideration of the Reorganization Agreement, the
Merger Payment, the promises and the covenants contained herein, Parent, the
Company and the Shareholder, each intending to be legally bound hereby, agree as
follows:

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         1. Effectiveness. This Agreement shall become effective at the Closing
of the Merger of Axe Acquisition Corporation with and into the Company pursuant
to which the Company shall become a wholly owned subsidiary of Parent (the
"Effective Date"). In the event that the Merger is not consummated, then this
Agreement shall be void and of no force and effect whatsoever.

         2. Noncompetition.

                  (a) As used in this Agreement, the following words have the
meanings defined below:

                           (i) "Affiliate" means (A) the Company (whether it
continues as a separate corporation or whether it becomes a division or other
unit of Parent or any of its subsidiaries) and (B) any other corporation,
association or other business entity of which more than 50% of the securities or
other ownership interests having voting power is owned or controlled, directly
or indirectly, by Parent.

                           (ii) "Noncompetition Period" shall mean the period
commencing on the Effective Date and ending on the date which is the later of
the third anniversary of the Effective Date or two years following the date on
which the Shareholder ceases to be employed by Parent, the Company or any other
Affiliate for any reason.

                           (iii) "Restricted Business" means the development,
marketing, sale or distribution of products or services which incorporate or are
based upon collaborative supply chain technology.

                  (b) During the Noncompetition Period, the Shareholder shall
not:

                           (i) engage in, directly or indirectly, whether as a
principal, partner, director, officer, agent, employee, consultant or in any
other capacity, or have any direct or indirect ownership interest in, any
business anywhere in the world which is engaged, directly or indirectly, in the
Restricted Business; provided, however, that this covenant not to compete shall
not preclude the Shareholder from owning, as a passive investor, up to three
percent (3%) of the outstanding shares in a publicly traded company for the
shares of which an active public trading market exists;

                           (ii) directly or indirectly induce or attempt to
influence any employee or consultant of Parent or any Affiliate to terminate his
or her employment or relationship with Parent or any Affiliate, or hire any
person who was employed as an employee or consultant of Parent or any Affiliate
during Shareholder's employment by the Company, Parent or any other Affiliate;
or

                           (iii) solicit or entice, or attempt to solicit or
entice, any clients or customers of Parent or any Affiliate or potential clients
or customers of Parent or any Affiliate for purposes of diverting their business
or services from Parent or any Affiliate.

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<PAGE>   3

                  (c) The covenants in this Section 2 are severable and
separate, and the unenforceability of any specific covenant shall not affect the
provisions of any other covenant. If any provision of this Section 2 relating to
the scope of the Restricted Business, the time period or geographic area of the
restrictive covenants shall be declared by a court of competent jurisdiction to
exceed the maximum scope, time period or geographic area, as applicable, that
such court deems reasonable and enforceable, said scope, time period or
geographic area shall be deemed to be, and thereafter shall become, the maximum
scope, time period or largest geographic area that such court deems reasonable
and enforceable and this Agreement shall automatically be considered to have
been amended and revised to reflect such determination.

                  (d) The Shareholder has carefully read and considered the
provisions of this Section 2 and, having done so, agrees that the restrictive
covenants in this Section 2 impose a fair and reasonable restraint on the
Shareholder and are reasonably required to protect the interests of the Company
and Parent, and their respective officers, directors, employees, and
stockholders and to preserve the goodwill of the Company purchased by Parent
pursuant to the Merger Agreement. The Shareholder acknowledges that the
noncompetition covenant set forth in this Section 2 constituted a material
inducement for Parent to enter into the Reorganization Agreement and a material
portion of the consideration bargained for by Parent thereunder, and that Parent
would not have entered into the Reorganization Agreement without the execution
by Shareholder of this Agreement. The Shareholder acknowledges and stipulates
that this Agreement was made in conjunction with the Merger pursuant to which
Parent acquired all of the outstanding equity interests of the Company and the
goodwill thereof, and that the Shareholder was the principal shareholder in the
Company and exchanged all of his Company Common Shares pursuant to the Merger.

         3. Prior Agreements. The Shareholder represents to the Company and
Parent that: (a) there are no restrictions, agreements or understandings
whatsoever to which the Shareholder is a party or by which the Shareholder is
bound which would prevent or make unlawful the Shareholder's execution of this
Agreement; (b) the Shareholder's execution of this Agreement does not constitute
a breach of any contract, agreement or understanding, oral or written, to which
the Shareholder is a party or by which the Shareholder is bound; and (c) the
Shareholder is free and able to execute this Agreement on the terms and subject
to the conditions hereof. The Shareholder acknowledges that the restrictive
covenants set forth in this Agreement are in addition to any other restrictive
covenants set forth in any other agreement between the Company and the
Shareholder.

         4. Miscellaneous.

                  (a) Indulgences, Etc. Any failure or delay on the part of
either party to exercise any right, remedy, power or privilege under this
Agreement will not operate as a waiver thereof, nor will any single or partial
exercise of any right, remedy, power or privilege preclude any other or further
exercise of the same or of any other right, remedy, power or privilege, nor will
any waiver of any right, remedy, power or privilege with respect to any
occurrence be

                                       3
<PAGE>   4

construed as a waiver of that right, remedy, power or privilege with respect
to any other occurrence.

                  (b) Notices. All notices, requests, demands and other
communications required or permitted under this Agreement must be in writing and
will be deemed to have been duly given on the day established by the sender as
having been delivered personally; on the day delivered by a private courier as
established by the sender by evidence obtained from the courier; or on the 5th
day after the date mailed, by certified or registered mail, return receipt
requested, postage prepaid, addressed as set forth below:

                           (i)      If to Equity Holder:

                                    Attn:  Cyrus Hadavi
                                    5933 West Century Blvd.
                                    12th Floor
                                    Los Angeles, CA  90045-5471

                           (ii)     If to the Company or Parent:

                                    FreeMarkets, Inc.
                                    22nd Floor, FreeMarkets Center
                                    210 Sixth Avenue
                                    Pittsburgh, PA  15222
                                    Attention: Glen T. Meakem

         In addition, notice by mail must be by air mail if posted outside of
the continental United States. Any party may alter the address to which
communications or copies are to be sent by giving notice of any change of
address to the other party in conformity with the provisions of this paragraph
for the giving of notice.

                  (c) Binding Nature of Agreement; Assignment. This Agreement
shall be binding upon and inure to the benefit of the Company, Parent and their
successors and assigns and shall be binding upon the Shareholder. The Company
may assign this Agreement at any time to any Affiliate or any successor in
interest to the entire business of the Company, and any such assignee may
re-assign this Agreement to any such entity. The Shareholder may not assign this
Agreement.

                  (d) Execution in Counterparts. This Agreement may be executed
in any number of counterparts, each of which will be deemed to be an original
and all of which will together constitute one and the same instrument.

                  (e) Provisions Separable. The provisions of this Agreement are
independent of and separable from each other, and no provision will be affected
or rendered invalid or unenforceable by virtue of the fact that for any reason
any other or others of them may be invalid or unenforceable in whole or in part.

                                       4
<PAGE>   5

                  (f) Amendment. This Agreement may not be modified or amended
other than by an agreement in writing signed by all the parties.

                  (g) Section Headings. The section headings in this Agreement
are for convenience only; they form no part of this Agreement and will not
affect its interpretation.

                  (h) Gender, etc. Words used herein, regardless of the number
and gender specifically used, will be deemed and construed to include any other
number, singular or plural, and any other gender, masculine, feminine or neuter,
as the context indicates is appropriate.

                  (i) Governing Law. This Agreement shall be construed and
interpreted in accordance with and governed by the laws of the Commonwealth of
Pennsylvania excluding its conflicts of laws rules.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       5
<PAGE>   6

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

                                      FREEMARKETS, INC.

                                     By:   /s/ JOAN HOOPER
                                         ----------------------------
                                     Name:  JOAN HOOPER
                                     Title: SENIOR VICE PRESIDENT AND
                                            CHIEF FINANCIAL OFFICER

                                     ADEXA, INC.

                                     By:  /s/ J. TIMOTHY ROMER
                                         ----------------------------
                                     Name:  J. TIMOTHY ROMER
                                     Title: CHIEF FINANCIAL OFFICER

                                     SHAREHOLDER:

                                         /s/ K. CYRUS HADAVI
                                      -----------------------------

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