Document:

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                                                                    Exhibit 10.1

                              EMPLOYMENT AGREEMENT

          THIS AGREEMENT is entered into as of the 30th day of January, 2001, by
and between Leslie Rechan (the "Executive") and Onyx Software Corporation, a
Washington corporation (the "Corporation").

          For ease of reference, this Agreement is divided into the following
parts, which begin on the pages indicated:

FIRST PART:    TERM OF EMPLOYMENT, DUTIES AND SCOPE, COMPENSATION AND BENEFITS
               DURING EMPLOYMENT
               (Sections 1-12, beginning on page 2)

SECOND PART:   COMPENSATION AND BENEFITS IN CASE OF TERMINATION
               (Sections 13-16, beginning on page 6)

THIRD PART:    TRADE SECRETS, ASSIGNMENT OF INVENTIONS, SUCCESSORS,
               MISCELLANEOUS PROVISIONS, SIGNATURE PAGE
               (Sections 17-21, beginning on page 9)
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FIRST PART:    TERM OF EMPLOYMENT, DUTIES AND SCOPE, COMPENSATION AND BENEFITS
               DURING EMPLOYMENT

Section 1.  Term of Employment

(a)  Basic Rule. The Corporation agrees to continue the Executive's employment,
     and the Executive agrees to remain in employment with the Corporation, from
     January 30, 2001, until the earliest of:

     (1)  The date of the Executive's death; or

     (2)  The date when the Executive's employment terminates pursuant to
          Subsection (b), (c), (d) or (e) below.

(b)  Early Termination or Resignation. The Corporation may terminate the
     Executive's employment at any time and for any reason, with or without
     Cause, by giving the Executive written notice. The Executive may terminate
     the Executive's employment for any reason by giving the Corporation not
     less than 30 days' advance notice in writing. In the event of such
     termination, Executive shall be entitled to the compensation and benefits
     as detailed in the Second Part of this Agreement.

(c)  Termination for Cause. The Corporation may terminate the Executive's
     employment at any time for Cause shown. For all purposes under this
     Agreement, "Cause" shall mean (1) a willful failure by the Executive to
     perform the Executive's duties under this Agreement, other than a failure
     resulting from the Executive's complete or partial incapacity due to
     physical or mental illness or impairment, (2) a willful act by the
     Executive that constitutes gross misconduct and that is materially
     injurious to the Corporation, (3) a willful breach by the Executive of a
     material provision of this Agreement or (4) a material and willful
     violation of a federal or state law or regulation applicable to the
     business of the Corporation that is materially and demonstrably injurious
     to the Corporation.

(d)  Termination for Disability. The Corporation may terminate the Executive's
     employment for Disability by giving the Executive thirty (30) days advance
     written notice. For all purposes under this Agreement, "Disability" shall
     mean that the Executive, at the time the notice is given, has been unable
     to perform the Executive's duties under this Agreement for a period of not
     less than three consecutive months as a result of the Executive's
     incapacity due to physical or mental illness. In the event that the
     Executive resumes the performance of substantially all of the Executive's
     duties under this Agreement before the termination of the Executive's
     employment under this Section becomes effective, the notice of termination
     shall automatically be deemed to have been revoked.

(e)  Termination of Agreement. This Agreement shall expire when all obligations
     of the parties hereunder have been satisfied.

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Section 2.  Duties and Scope of Employment

(a)  Position. The Corporation agrees to employ the Executive for the term of
     employment under this Agreement in the position of President/Chief
     Operating Officer. Executive shall be given such duties, responsibilities
     and authorities as are appropriate to his position.

(b)  Obligations. During the term of employment under this Agreement, the
     Executive shall devote the Executive's full business efforts and time to
     the business and affairs of the Corporation as needed to carry out his
     duties and responsibilities hereunder subject to the overall supervision of
     the Corporation's Chief Executive Officer. The foregoing shall not preclude
     the Executive from engaging in appropriate civic, charitable or religious
     activities or from devoting a reasonable amount of time to private
     investments or from serving on the boards of directors of other entities,
     as long as such activities and service do not interfere or conflict with
     the Executive's responsibilities to the Corporation.

Section 3.  Base Compensation

During the term of employment under this Agreement, the Corporation agrees to
pay the Executive as compensation for services a base salary at the annual rate
of $350,000 or at such higher rate as the Corporation may determine from time to
time. Such salary shall be payable semi-monthly in accordance with the standard
payroll procedures of the Corporation. Executive's base salary shall be reviewed
at least once per calendar year. The annual compensation specified in this
Section 3, together with any adjustments in such compensation that the
Corporation may grant from time to time is referred to in this Agreement as
"Base Compensation."

Section 4.  Leveraged Compensation Plan

As a member of the executive team, Executive will participate in the
Corporation's annual incentive compensation plan ("Leveraged Compensation
Plan"). Under the Leveraged Compensation Plan, Executive will be eligible for an
incentive bonus of up to seventy five percent (75%) of his Base Compensation
prorated to the first day of Executive's commencement of employment. The full
incentive bonus which Executive will be eligible to receive each year under the
Leveraged Compensation Plan, together with any adjustments to the full incentive
bonus amount that the Corporation may grant from time to time is referred to in
this Agreement as the "Target Incentive Bonus." Executive's actual leveraged
compensation for each year will be determined based upon the Corporation's
achievement of designated financial and business goals, as detailed in
Executive's compensation plan attached hereto as Schedule 1. By no later than
January 31 of each year, the Chief Executive Officer will designate, and provide
Executive with a written statement of, the Corporation's financial and business
goals for the year, in conjunction with annual recommendations by Executive
regarding revenue, earnings per share, and net profit margin objectives, and
other appropriate measures.

Section 5.  Signing Bonus

(a)  Signing Bonus. Executive shall receive a bonus (the "Signing Bonus") of two
     hundred fifty thousand dollars ($250,000), payable within thirty (30) days
     of the first day of

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     Executive's commencement of employment. In the event that Executive is not
     employed with the Corporation at the one (1) year anniversary of the first
     day of Executive's commencement of employment, Executive shall be required
     to repay to the Corporation twenty five percent (25%) of the Signing Bonus
     for each three month period during the previous year in which Executive was
     not so employed (or such pro-rated amount for any partial period). In the
     event that Executive is not employed with the Corporation as a result of a
     Qualifying Termination (as defined in Section 13 of this Agreement), no
     such repayment shall be required.

(b)  Stay-Put Bonus. Executive shall receive an additional bonus of two hundred
     fifty thousand dollars ($250,000) at the one year anniversary of first day
     of Executive's commencement of employment, provided that either (i)
     Executive is employed with the Corporation at such time or (ii) Executive
     is no longer employed with the Corporation as a result of a Qualifying
     Termination.

Section 6.  Stock Options

(a)  Initial Grant. Subject to approval by the Corporation's Board of Directors,
     the Executive shall receive an option to purchase six hundred thousand
     (600,000) shares of the Corporation's common stock (the "Option") on
     Executive's first day of commencement of employment (the "Grant Date"), at
     an exercise price equal to the fair market value of the Corporation's
     common stock on the Grant Date (fair market value to be calculated as
     defined in the Corporation's 1998 Stock Incentive Compensation Plan). Such
     option shall be consistent with the provisions set forth in the
     Corporation's 1998 Stock Incentive Compensation Plan, and shall provide
     that twenty five percent (25%) of the shares covered by the Option shall
     vest on the one-year anniversary of the first day of Executive's employment
     (the "Initiation Date"), and an additional 2.0833% shall vest at the end of
     each month thereafter, with the result that 100% of the shares covered by
     the Option are vested four years from the Initiation Date.

(b)  Additional Grants. Subject to approval by the Corporation's Board of
     Directors, the Executive shall receive three additional options, each such
     option to purchase fifty thousand (50,000) shares of the Corporation's
     common stock (the "Additional Options"), on Executive's first day of
     commencement of employment (the "Grant Date"), at an exercise price equal
     to the fair market value of the Corporation's common stock on the Grant
     Date (fair market value to be calculated as defined in the Corporation's
     1998 Stock Incentive Compensation Plan). Such Additional Options shall be
     consistent with the provisions set forth in the Corporation's 1998 Stock
     Incentive Compensation Plan, and shall provide that all of the shares
     covered by each such Additional Option shall vest in their entirety on the
     four-year anniversary of the first day of Executive's employment (the
     "Initiation Date"). Notwithstanding the foregoing, each Additional Option
     shall further provide for immediate acceleration of the entire fifty
     thousand (50,000) shares in the event that Executive achieves the relevant
     milestones as set forth in Schedule 2 to this Agreement.

(c)  Future Grants. Executive shall receive additional annual option grants from
     the Corporation unless his overall annual performance for the prior year
     has been determined

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     by the Chief Executive Officer to be unsatisfactory. Executive's annual
     grant for the first two (2) future grants contemplated under this Section
     6(c) shall be an option to purchase a minimum of fifty thousand (50,000)
     shares. For future annual grants thereafter, Executive's annual grant shall
     be a minimum of one hundred thousand (100,000) shares. Any such additional
     grants shall be at an exercise price equal to the fair market value on the
     date of such grant and shall vest 2.0833% each month thereafter, with the
     result that 100% of any such option is vested in four (4) years. For the
     avoidance of doubt, the one hundred thousand (100,000) share targeted
     future options shall not be adjusted for future stock splits or similar
     changes in capitalization.

(d)  Stock Option Agreement. The options granted to Executive pursuant to this
     Agreement shall be subject to the Corporation's standard form of stock
     option agreement, as necessarily modified in each case by the Corporation
     to reflect the applicable terms of this Agreement regarding such options
     and to result in no material alterations or additions adverse to
     Executive's rights under this Agreement regarding such options.

Section 7.  Executive Benefits

During the term of employment under this Agreement, the Executive shall be
eligible to participate in the Executive benefit plans and executive
compensation programs maintained by the Corporation, 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.

Section 8.  Relocation

Executive shall be entitled to reimbursement from the Corporation for his
relocation expenses in accordance with the Corporation's executive relocation
program attached hereto as Schedule 3.

Section 9.  Life Insurance

Within thirty (30) days of the commencement of Executive's first day of
employment, the Corporation shall purchase for Executive two life insurance
policies. The first policy shall be for the Executive with policy limit of
$9,000,000 and the second policy shall be on the Executive's wife with a policy
limit of $1,000,000.

Section 10.  Legal Expenses

Provided that Executive commences employment with the Corporation, the
Corporation shall reimburse Executive for up to ten thousand dollars ($10,000)
in documented legal expenses incurred by Executive in association with this
Agreement.

Section 11.  Housing Equalization

In the event that (i) Executive's employment terminates as a result of a
Qualifying Termination and (ii) the amount for which Executive sells his primary
residence at such time is less than the

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amount executive originally paid for such residence, the Corporation shall
reimburse Executive for up to one hundred thousand dollars ($100,000) of such
differential.

Section 12.  Business Expenses and Travel

During the term of employment under this Agreement, the Executive shall be
authorized to incur necessary and reasonable travel, entertainment and other
business expenses in connection with the Executive's duties hereunder. The
Corporation shall reimburse the Executive for such expenses upon presentation of
an itemized account and appropriate supporting documentation, all in accordance
with generally applicable policies.

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SECOND PART:   COMPENSATION AND BENEFITS IN CASE OF TERMINATION

Section 13.  Involuntary, Actual or Constructive Termination Without Cause or
             Disability

In the event that, during the term of this Agreement, the Executive's employment
terminates in a Qualifying Termination, as defined in Subsection (a), then,
after executing the release of claims described in Section 13(e), the Executive
shall be entitled to receive the payments and benefits described in Subsections
(b) (c) and (d).

(a)  Qualifying Termination. A Qualifying Termination occurs if:

     (1)  The Corporation terminates the Executive's employment for any reason
          other than Cause or Disability; or

     (2)  The Executive separates from employment with the Corporation within
          ninety (90) days following a "Constructive Termination". "Constructive
          Termination" is defined as the occurrence of any of the following: (a)
          a reduction in Executive's Base Salary or Targeted Incentive Bonus;
          (b) a material reduction or material adverse change in Executive's
          title, position, authority, duties, or responsibilities (including
          reporting responsibilities); or (c) the requirement that Executive
          relocate more than thirty-five (35) miles from his then-current office
          location.

(b)  Severance. The Corporation shall pay to the Executive following the date of
     the employment termination and over the succeeding twelve (12) months, in
     accordance with standard payroll procedures, or, in Corporation's sole
     discretion, in one lump sum, an amount equal to the following:

     (1)  One hundred percent (100%) (i.e. twelve months) of the Executive's
          Base Compensation in effect on the date of the employment termination;
          plus

     (2)  One hundred percent (100%) (i.e. twelve months) of the Executive's
          Target Incentive Bonus; plus

     (3)  All earned, but unpaid, bonuses owed to Executive as of the date of
          the termination.

(c)  One (1) Year of Life Insurance and Health Plan Coverage. The coverage
     described in this Subsection (c) shall be provided for a "Continuation
     Period" beginning on the date when the employment termination is effective
     and ending on the earlier of (1) the one year anniversary of the date when
     the employment termination is effective or (2) the date of the Executive's
     death. During the Continuation Period, the Executive (and, where
     applicable, the Executive's dependents) shall be entitled to continue
     participation in the group term life insurance plan and in the health care
     plan for Executives maintained by the Corporation as if the Executive were
     still an Executive of the Corporation. The coverage provided under this
     Subsection (c) shall run concurrently with and shall be offset against any
     continuation coverage under Part 6 of Title I of the Employee

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     Retirement Income Security Act of 1974, as amended. Where applicable, the
     Executive's compensation for purposes of such plans shall be deemed to be
     equal to the Executive's compensation (as defined in such plans) in effect
     on the date of the employment termination. To the extent that the
     Corporation finds it undesirable to cover the Executive under the group
     life insurance and health plans of the Corporation, the Corporation shall
     provide the Executive (at its own expense) with the same level of coverage
     under individual policies.

(d)  Acceleration of Vesting. As of the effective date of termination, the
     Corporation will accelerate the vesting of all stock options held by
     Executive that would have vested during the one (1) year period following
     the effective date of such termination.

(e)  Release of Claims. As a condition to the receipt of the payments and
     benefits described in this Section 13, the Executive shall be required to
     execute a release of all claims arising out of the Executive's employment
     or the termination thereof including, but not limited to, any claim of
     discrimination under state or federal law, but excluding claims for
     indemnification from the Corporation under any indemnification agreement
     with the Corporation, its certificate of incorporation and by-laws or
     applicable law or claims for directors and officers' insurance coverage.

(f)  Conditions to Receipt of Payments and Benefits. In view of Executive's
     position and his access to Confidential Information, as defined below, and
     as a condition to the receipt of payments and benefits described in this
     Section 13, the Executive shall not, for a period of one (1) year, without
     the Corporation's prior written consent, directly or indirectly, alone or
     as a partner, joint venturer, officer, director, Executive, consultant,
     agent or stockholder (other than a less than 5% stockholder of a publicly
     traded company) (i) engage in any activity which is reasonably considered
     to be in competition with the core business, the products or services of
     the Corporation, (ii) solicit any of the Corporation's employees,
     consultants or customers, (iii) hire any of the Corporation's employees or
     consultants in an unlawful manner or actively encourage employees or
     consultants to leave the Corporation, or (iv) otherwise breach his
     Confidential Information obligations.

(g)  No Mitigation. The Executive shall not be required to mitigate the amount
     of any payment or benefit contemplated by this Section 13, nor shall any
     such payment or benefit be reduced by any earnings or benefits that the
     Executive may receive from any other source.

Section 14.  Termination Resulting from a Change in Control

In the event of a Qualifying Termination occurring at any time within two (2)
years after a change in control of the Corporation (a "Corporate Transaction"
pursuant to Section 2.6 of the 1998 Stock Incentive Compensation Plan), the
following shall occur: (i) Executive shall receive the benefits enumerated in
Subsection 13 (b) above, however such benefits shall be paid for an eighteen
(18) month period in lieu of the twelve (12) month period contemplated
thereunder, (ii) Executive shall receive the benefits enumerated in Subsection
13 (c) above and (iii) Executive's stock options shall accelerate and fully vest
as of the date of the Qualifying Termination. The

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foregoing benefits contemplated in this Subsection 14 shall be subject to the
conditions of Subsections 13 (e), 13 (f) and 13 (g) above.

Section 15.  Vesting Acceleration Resulting from a Change in Control

In the event of a change in control of the Corporation (a "Corporate
Transaction" pursuant to Section 2.6 of the 1998 Stock Incentive Compensation
Plan), the Corporation will accelerate the vesting of all stock options held by
Executive that would have vested during the six (6) month period following the
effective date of such Corporate Transaction.

Section 16.  Other Terminations Under This Part

If termination of employment, actual or constructive, is not described in
Section 13, then the Executive is entitled only to the compensation, benefits
and reimbursements payable under the terms of Part I of this Agreement for the
period preceding the effective date of the termination including any disability
or death benefits to which Executive (or his estate or beneficiary(s)) may be
entitled as a result of termination of his employment on account of Disability
or death. The payments under this Agreement shall fully discharge all
responsibilities of the Corporation to the Executive upon termination of the
Executive's employment. This Section 16 applies, without limitation, to any
termination of employment initiated by the Executive (except an Executive-
initiated termination that is described in Paragraph 2 of Section 13(a)),
termination of employment caused by the Executive's death or Disability,
termination of the Executive for Cause, and any constructive termination (not
described in Section 13).

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THIRD PART:    TRADE SECRETS, ASSIGNMENT OF INVENTIONS SUCCESSORS, MISCELLANEOUS
               PROVISIONS, SIGNATURE PAGE

Section 17.  Confidential Information

(a)  Acknowledgement. The Corporation and the Executive acknowledge that the
     services to be performed by the Executive under this Agreement are unique
     and extraordinary and that, as a result of the Executive's employment, the
     Executive will be in a relationship of confidence and trust with the
     Corporation and will come into possession of "Confidential Information" (1)
     owned or controlled by the Corporation, (2) in the possession of the
     Corporation and belonging to third parties or (3) conceived, originated,
     discovered or developed, in whole or in part, by the Executive. As used
     herein "Confidential Information" includes trade secrets and other
     confidential or proprietary business, technical, personnel or financial
     information, whether or not the Executive'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 Corporation
     advises the Executive otherwise in writing.

(b)  Nondisclosure. The Executive agrees that the Executive will not, without
     the prior written consent of the Corporation, directly or indirectly use or
     disclose Confidential Information to any person, during or after the
     Executive's employment, except as may be necessary in the ordinary course
     of performing the Executive's duties under this Agreement. The Executive
     will keep the Confidential Information in strictest confidence and trust.
     This Section 17 shall apply indefinitely, both during and after the term of
     this Agreement.

(c)  Surrender Upon Termination. The Executive agrees that in the event of the
     termination of the Executive's employment for any reason, the Executive
     will immediately deliver to the Corporation all property belonging to the
     Corporation, including all documents and materials of any nature pertaining
     to the Executive's work with the Corporation, and will not take with the
     Executive 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 Executive is free to
     use information that is in the public domain (not as a result of a breach
     of this Agreement).

Section 18.  Inventions and Creations Belong to the Corporation

Any and all inventions, discoveries, improvements, or creations (collectively
"Creations") which the Executive 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 Corporation's

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business shall be the sole and exclusive property of the Corporation. The
Executive agrees that all copyrightable works created by the Executive or under
the Corporation's direction in connection with the Corporation's business are
"works made for hire" and shall be the sole and complete property of the
Corporation and that any and all copyrights to such works shall belong to the
Corporation. To the extent such works are not deemed to be "works made for
hire," the Executive hereby assigns all proprietary rights, including copyright,
in these works to the Corporation without further compensation.

The Executive further agrees to (i) disclose promptly to the Corporation all
such Creations which the Executive has made or may make solely, jointly, or
commonly with others, (ii) assign all such Creations to the Corporation, and
(iii) execute and sign any and all applications, assignments, or other
instruments which the Corporation 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 Corporation all right, title, and interest in said Creations.

Section 19.  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.

Section 20.  Successors

(a)  Corporation's Successors. The Corporation shall require any successor
     (whether direct or indirect and whether by purchase, lease, merger,
     consolidation, liquidation or otherwise) to all or substantially all of the
     Corporation's business and/or assets, by an agreement in substance and form
     satisfactory to the Executive, to assume this Agreement and to agree
     expressly to perform this Agreement in the same manner and to the same
     extent as the Corporation would be required to perform it in the absence of
     a succession. The Corporation's failure to obtain such agreement prior to
     the effectiveness of a succession shall be a breach of this Agreement and
     shall entitle the Executive to all of the compensation and benefits to
     which the Executive would have been entitled hereunder if the Corporation
     had involuntarily terminated the Executive's employment without Cause or
     Disability, on the date when such succession becomes effective. For all
     purposes under this Agreement, the term "Corporation" shall include any
     successor to the Corporation's business and/or assets that executes and
     delivers the assumption agreement described in this Subsection (a) or that
     becomes bound by this Agreement by operation of law.

(b)  Executive's Successors. This Agreement and all rights of the Executive
     hereunder shall inure to the benefit of, and be enforceable by, the
     Executive's personal or legal representatives, executors, administrators,
     successors, heirs, distributees, devisees and legatees.

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Section 21.  Miscellaneous Provisions

(a)  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 Executive and by an authorized officer of the
     Corporation (other than the Executive). 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.

(b)  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 Executive hereby
     acknowledges and agrees that this Agreement supersedes in its entirety any
     employment agreement between the Executive and the Corporation in effect
     immediately prior to the effective date of this Agreement. As of the
     effective date of this Agreement, such employment agreement shall terminate
     without any further obligation by either party thereto, and the Executive
     hereby relinquishes any further rights that the Executive may have had
     under such prior employment agreement.

(c)  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 Executive,
     mailed notices shall be addressed to the Executive at the home address that
     the Executive most recently communicated to the Corporation in writing. In
     the case of the Corporation, mailed notices shall be addressed to its
     corporate headquarters, and all notices shall be directed to the attention
     of its General Counsel.

(d)  No Setoff. There shall be no right of setoff or counterclaim, with respect
     to any claim, debt or obligation, against payments to the Executive under
     this Agreement.

(e)  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.

(f)  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.

(g)  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 (i)
     shall be void.

(h)  Employment at Will; Limitation of Remedies. The Corporation and the
     Executive acknowledge that the Executive's employment is at will, as
     defined under applicable law. If the Executive's employment terminates for
     any reason, the Executive shall not be

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     entitled to any payments, benefits, damages, awards or compensation other
     than as provided by this Agreement.

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

(j)  Benefit Coverage Non-Additive. In the event that the Executive is entitled
     to life insurance and health plan coverage under more than one provision
     hereunder, only one provision shall apply, and neither the periods of
     coverage nor the amounts of benefits shall be additive.

(k)  Authorized Officer. The Corporation represents and warrants that the
     officer executing this Agreement on its behalf is duly authorized to do so.

IN WITNESS WHEREOF, each of the parties has executed this Agreement, in the case
of the Corporation by its duly authorized officer, as of the day and year first
above written. Executive has consulted (or has had the opportunity to consult)
with his own counsel (who is other than the Corporation's counsel) prior to
execution of this Agreement.

                                                  /s/ Leslie J. Rechan
                                           -------------------------------------
                                                           Executive

                                           ONYX SOFTWARE CORPORATION

                                           By:    /s/ Jill Maguire-Ward
                                              ----------------------------------
                                           Jill Maguire-Ward

                                           Its:  Vice-President, Human Resources

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                                   Schedule 1
                  Leveraged Compensation Program Accelerators

--------------------------------------------------------------------------------
                Attainment Range
       Minimum                            Maximum                 Adjustment
          0%                                 80%                       0%
         80%                                110%                80 - 110% Linear
  (greater than)110%                        140%                     120%
  (greater than)140%                  (greater than)up               150%
Minimum of 100% attainment must be met for booked revenue and net profit margin
prior to receiving an adjustment greater than 100%
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                                   Schedule 2
                       Milestones for Stock Acceleration

As contemplated in Section 6(b) of this Agreement, each of the three option
grants detailed therein shall be accelerated so as to vest 100% immediately upon
achievement of the relevant metric detailed below.

1.   The first additional option grant of 50,000 shares shall immediately vest
     and become exercisable at the six month anniversary of the first day of
     employment of the latter of the following two General Mangers to be hired:
     (i) General Manager for Asia/Pacific and (ii) General Manger for Europe.

2.   The second additional option grant of 50,000 shares shall immediately vest
     and become exercisable at such time as the Corporation has adopted a
     corporate realignment plan, such planning process to be led by the
     Executive. Such realignment shall include a reorganization of the
     Corporation into individual profit and loss statements for each of the
     Corporation's key geographies as well as defining clear reporting
     structures for each geography.

3.   The final additional option grant of 50,000 shares shall immediately vest
     and become exercisable at such time as the Corporation's stock price trades
     for a period of thirty (30) consecutive days at an average price greater
     than or equal to $30.00 per share. Average price is defined as the average
     high and low per share sales price of the Corporation's common stock as
     reported by the Nasdaq National Market.

                                      15
<PAGE>

                                   Schedule 3
                       Onyx Executive Relocation Program

The following summary is provided of your relocation package.  Any excess
weight, special charges or storage should be authorized by the Human Resources
Department.

<TABLE>
<CAPTION>
                  Benefit                                       Executive
---------------------------------------------------------------------------------------------
<S>                                          <C>
Relocation Allowance - Incidentals           $10,000
---------------------------------------------------------------------------------------------
House Hunting Trip                           Up to 7 days
  # of trips                                 2
  Lodging                                    7 Nights
  Meals                                      7 Days
  Airfare                                    Employee & Spouse
Car Rental                                   7 days
---------------------------------------------------------------------------------------------
Home Finding Assistance                      Yes
  Pre-move Counseling
  Cost of Living Analysis
  Relocation Package
---------------------------------------------------------------------------------------------
Rental Assistance                            Yes
  Market Research
  4 hour tour
---------------------------------------------------------------------------------------------
Expense Tracking                             Yes
---------------------------------------------------------------------------------------------
Tax Filing Assistance                        Yes - Singapore and United States for 2001
---------------------------------------------------------------------------------------------
Work Permit                                  Yes
---------------------------------------------------------------------------------------------
Temporary Living                             Up to 120 days in Singapore
Rental Car                                   Up to 30 days or until owner car arrives
---------------------------------------------------------------------------------------------
Shipment of Household Goods                  Full Pack/Unpack
  Weight                                     Full Weight
  Storage                                    45 days
  Insurance                                  Up to $250,000
  Shipment of Auto                           N/A
---------------------------------------------------------------------------------------------
Home Selling Assistance                      N/A
---------------------------------------------------------------------------------------------
Closing Cost Assistance                      Closing Costs to include mortgage points and
                                             associated normal legal fees
---------------------------------------------------------------------------------------------
</TABLE>

                                      16<PAGE>

                                                                    Exhibit 10.2

                            Stock Option Agreement
                           Onyx Software Corporation

I.     OPTION GRANT.  ONYX SOFTWARE CORPORATION, a Washington corporation (the
       "Company") hereby grants a nonqualified stock option to purchase a total
       of 600,000 shares of Common Stock of the Company, par value $0.01 per
       share, (the "Common Stock") as of January 30, 2001 ("Grant Date") to
       LESLIE RECHAN (the "Optionee"), subject in all respects to the terms and
       provisions of this Stock Option Agreement (the "Option"). This Option
       shall be governed by, and construed in accordance with, the laws of the
       state of Washington without regard for principles of conflict of laws.

II.    VESTING SCHEDULE.  The Vesting Initiation Date shall be January 30, 2001.
       This Option shall vest and become exercisable as to 25% of the total
       number of shares of Common Stock covered by this Option on the one year
       anniversary of the Vesting Initiation Date and an additional 2.0833% of
       the shares covered by the Option shall vest each month thereafter, with
       the result that the Option shall be fully vested and exercisable four
       years after the Vesting Initiation Date. Notwithstanding the foregoing,
       if Optionee's employment with the Company terminates in a Qualifying
       Termination (as defined in the Employment Agreement by and between the
       Company and Optionee entered into as of the 30th day of January, 2001
       (the "Employment Agreement")), this Option shall, upon such Qualifying
       Termination, automatically vest and become exercisable as to all of the
       shares of Common Stock originally subject to the Option that would
       otherwise have vested during the 12-month period following the effective
       date of such Qualifying Termination.

III.   PRICE.  The Option exercise price per share (the "Exercise Price") as
       determined by the Board of Directors (the "Board") of the Company is
       $16.157. The Exercise Price shall be paid by delivery of cash or, subject
       to the discretion of the Board, by delivery of an approved equivalent to
       cash.

IV.    PURCHASE FOR INVESTMENT.  This Option may not be exercised if the
       issuance of shares of Common Stock pursuant to an exercise would
       constitute a violation of any applicable federal or state securities or
       other law or valid regulation. Any other provision of this Option
       notwithstanding, the obligation of the Company to issue shares pursuant
       to an exercise of the Option shall be subject to all applicable laws,
       rules and regulations and such approval by any regulatory body as may be
       required. The Company reserves the right to restrict, in whole or in
       part, the delivery of shares prior to the satisfaction of all legal
       requirements relating to the issuance of such shares, to their
       registration, qualification or listing or to an exemption from
       registration, qualification or listing. The Optionee, as a condition to
       his exercise of this Option, shall sign a Letter of Investment
       satisfactory to the Company's counsel and represent, among other things,
       to the Company that the shares of Common Stock that he acquires under
       this Option are being acquired by him for investment and not with a view
       to distribution or resale and that he understands that such shares of
       Company Common Stock may not be sold until (a) there is an effective
       registration statement under the Securities Act of 1933, as amended, (the
       "Act") and applicable state securities laws covering any such transaction
       involving such shares

<PAGE>

       of Common Stock or (b) the Company receives an opinion of legal counsel
       for the holder of such shares of Common Stock (concurred in by legal
       counsel of the Company) stating that such transaction is exempt from
       registration.

V.     NON-ASSIGNABILITY.  The Option may not be transferred or hypothecated in
       any manner and shall only be exercisable by the Optionee or his legal
       representative. The terms of this Option shall be binding upon the
       executors, administrators, heirs, successors, and assigns of the
       Optionee.

VI.    EXERCISE.

       A.   This Option shall be exercisable, to the extent of the number of
            shares purchasable by Optionee at the date of termination, only (a)
            within one year after such termination if the Optionee's termination
            is coincident with the Optionee's death or Disability (as defined in
            the Employment Agreement) or (b) within three months after the date
            that Optionee ceases to be an employee, director, officer,
            consultant, agent, advisor or independent contractor of the Company
            or a subsidiary if termination of the Optionee's employment or
            services is for any reason other than death or Disability, but in no
            event later than the remaining Term of the Option. Any portion of
            this Option exercisable at the time of the Optionee's death may be
            exercised, to the extent of the number of shares purchasable by the
            Optionee at the date of the Optionee's death, by the personal
            representative of the Optionee's estate or the person(s) to whom the
            Optionee's rights under the Option have passed by will or the
            applicable laws of descent and distribution, 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.

       B.   This Option may not be exercised more than ten (10) years from the
            date hereof (the "Term"), and may be exercised during the Term only
            in accordance with the terms and provisions set forth herein.

       C.   In the event of a Corporate Transaction (as defined below) involving
            the Company, this Option shall automatically accelerate so that such
            Option shall, immediately prior to the specified effective date for
            the Corporate Transaction, become vested and exercisable as to all
            of the shares of Common Stock originally subject to the Option that
            would otherwise have vested during the 6-month period following the
            effective date of the Corporate Transaction. Regardless whether this
            Option continues or is assumed or replaced in a Corporate
            Transaction, the portion of the Option that does not otherwise
            accelerate at the time of the Corporate Transaction shall be
            accelerated in the event that the Optionee's employment terminates
            in a Qualifying Termination within two years following such
            Corporate Transaction. A "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 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

                                       2
<PAGE>

            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 hereof) under the Securities and Exchange Act of
            1934, as amended. The accelerated vesting of the Option pursuant to
            this Section VI (c) or pursuant to the Employment Agreement shall
            not be adversely altered or rendered null and void, without
            Optionee's express written consent, even if such accelerated vesting
            would preclude a Corporate Transaction or other transaction
            involving the Company from qualifying for financial accounting
            treatment of such transaction as a pooling of interests under APB
            Opinion No. 16.

       D.   This Option may be exercised for all or part of the shares eligible
            for exercise by presenting a written notice (the "Notice") to the
            Company that this Option is exercised in strict accordance with the
            terms and provisions of this Option. The Company shall determine
            whether or not the Notice complies with the terms and provisions of
            this Option. Such Notice shall identify this Option, state the
            number of shares as to which the Option is exercised and be signed
            by the Optionee. Delivery of the cash or cash equivalent in payment
            for the shares to be purchased pursuant to the exercise of this
            Option shall accompany the Notice. The Letter of Investment,
            representations and such other documentation required by Section IV
            hereof shall also accompany the Notice. If the Optionee is deceased,
            the Notice shall be signed, and if the Optionee is Disabled, it may
            be signed, by the Optionee's legal representatives or beneficiaries,
            and in all instances shall be accompanied by evidence satisfactory
            to the Company and its transfer agent of the right of such person or
            persons to exercise this Option.

       E.   The Optionee shall make arrangements satisfactory to the Company for
            the satisfaction of any withholding tax obligations that arise in
            connection with his Option. The Company shall not be required to
            issue any shares of Common Stock until such obligations are
            satisfied.

VII.   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, Optionee 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 this Option 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 period exceed 180 days. Holders of shares issued
       pursuant to this Option 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 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

                                       3
<PAGE>

            the provisions of this Section VII., to the same extent the
            purchased shares are at such time covered by such provisions. In
            order to enforce the limitations of this Section VII., the Company
            may impose stop-transfer instructions with respect to the purchased
            shares until the end of the applicable standoff period.

VIII.  EFFECT OF CHANGE IN COMMON STOCK SUBJECT TO OPTION.  If the outstanding
       shares of Common Stock shall at any time be changed or exchanged by
       declaration of a stock dividend, split-up, combination of shares, or
       recapitalization, the number and kind of shares subject to this Option,
       and the Exercise Price, shall be appropriately and equitably adjusted so
       as to maintain the proportionate number of shares subject to this Option
       and the Exercise Price in relation to the change in stock; provided,
       however, that no adjustment shall be made by reason of the distribution
       of subscription rights on outstanding stock.

IX.    AMENDMENT OR ALTERATION.  The Board may amend or alter this Option,
       except that no amendment or alteration shall be made which would impair
       the rights of the Optionee hereunder, without his consent, and, except
       further, this Option shall be subject to the requirement that, if, at any
       time the Board shall determine, in its discretion, that the listing,
       registration or qualification of the stock issuable or transferable upon
       exercise thereof upon any securities exchange or under any state or
       federal law or the consent or approval of any governmental regulatory
       body is necessary or desirable as a condition of, or in connection with,
       the granting of this Option or the issue, transfer, or purchase of shares
       hereunder, this Option may not be exercised in whole or in part unless
       such listing, registration, qualification, consent, or approval shall
       have been effected or obtained free of any conditions not acceptable to
       the Board.

X.     OPTION NOT A SERVICE CONTRACT.  This Option is not an employment contract
       and nothing in this Option shall be construed as giving Optionee any
       right to be retained in the employ of the Company or limit the Company's
       right to terminate the employment or services of Optionee.

XI.    NO RIGHTS AS A SHAREHOLDER.  The Optionee, or a transferee of the
       Optionee, shall have no rights as a shareholder with respect to any
       Common Stock covered by the Option until such person becomes entitled to
       receive such Common Stock by filing a Notice and paying the Exercise
       Price pursuant to the terms of this Option.

                                      ONYX SOFTWARE CORPORATION

                                      By:      /s/ Brent R. Frei
                                         ---------------------------------------
                                                  Chief Executive Officer

                                       4
<PAGE>

If the following acknowledgment and acceptance is not executed within ten (10)
days of the effective date of this Option, it shall lapse and be treated for all
purposes as if it were never granted.

The Optionee acknowledges and represents that he is familiar with and
understands the terms and provisions of this Option. The Optionee hereby accepts
this Option subject to all the terms and provisions contained herein. The
Optionee hereby agrees to accept as binding, conclusive, and final all decisions
and interpretations of the Board upon any questions arising under the Option.

Dated: February 6, 2001

WITNESS:                                    OPTIONEE:

                                                    /s/ Leslie J. Rechan
------------------------------------        ------------------------------------

                                       5

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