Document:

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                                                                    Exhibit 10.4

Personal and Confidential
October 11, 1999

Michael Sternad
Avenue of the Arts
Costa Mesa, CA

Dear Michael:

We are pleased to offer you a full-time position with Hyperion Solutions
Corporation ("Hyperion") as a Chief Financial Officer. You will report to
Stephen Imbler and will work from our Sunnyvale office. Specifics of our offer
include:

1.     Your employment will commence on or before November 1, 1999. You will be
compensated on a semi-monthly basis at an annualized rate of $185,000.00 less
tax withholdings and applicable deductions. In addition, you will also be
eligible to participate in our Executive Bonus Plan with a bonus of $75,000.00
of the actual base salary earned by you for the fiscal year. We note that bonus
payments are discretionary and are a function of Hyperion's profitability,
departmental success in meeting specified objectives and your individual
performance. Please consult your orientation package or company guidelines for
details on the Executive Bonus Plan.

1A.    As part of your employment, you will be granted, subject to approval by
the Board of Directors, a Stock Option right to purchase up to 120,000 shares of
Hyperion Solutions common stock. The price of these shares will be determined on
your start date (grant date). You will receive a plan description/prospectus
once your options have been approved. The vesting schedule is 25% vesting after
the first year from the grant date and 1/48th per month for the following 36
months, so long as you remain continuously employed by the company. In addition,
any stock option grant or bonus payment, if any, is conditioned upon your
current employment with Hyperion at the time of the grant approval.

2.     Effective with your date of hire, you will have the option to enroll for
group medical coverage for yourself and your dependents. Your local Human
Resources department will provide a detailed explanation of the various options
and their associated costs at new hire orientation. Please note that all Company
benefits are subject to change.

3.     By signing below, you acknowledge that your employment at Hyperion is for
an unspecified duration, and neither this letter, nor your acceptance thereof,
constitutes a contract of employment. Hyperion is an "at will" employer, which
means that the employment relationship may be terminated at any time by either
Hyperion or by you, with or without notice and with or without cause. Hyperion
may change your title, reporting assignment and duties from time to time in its
sole discretion.

4.     Your employment is to be considered exclusive to Hyperion. While you are
employed by Hyperion, you will not perform services for compensation for any
third party.

5.     If you have not already done so, you will be required to complete an
Application for Employment form as a condition of your employment with Hyperion.
The Application authorizes us to obtain information on your employment history
and other job qualifications. In the event the company determines that
information on the Application is incorrect, incomplete, misleading or false,
your continued employment with the company may be jeopardized.
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PERSONAL AND CONFIDENTIAL
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6.     In consideration of your agreeing to this employment offer with Hyperion
and as a condition of your reporting for work, we ask that you sign the enclosed
Employee Proprietary Information Agreement.

7.     The terms and conditions contained in this offer letter supersede any
other representations made to you, whether oral or written, and cannot be
changed without the express written approval of the President of the Company.

8.     Under the Immigration Reform and Control Act (IRCA), all employers are
required to verify the identity of all new employees as well as an employee's
right to work in the United States within three business days of the employee's
start date. Your offer of employment is contingent on your ability to provide
the necessary documentation to us in a timely manner to comply with IRCA.

7.     You need to complete the following items immediately: W-4, and benefit
election form. This paperwork will ensure you receive your first paycheck
promptly. If you need assistance completing this material please contact our
Human Resources Department. Within the first days of your employment you will
also be asked to provide us with documentation of your eligibility to work in
the United States.

If the terms of this offer are acceptable to you, please indicate below by
signing and returning one copy to us along with the signed Employee Proprietary
Information Agreement and the completed documents described in Paragraph 7. You
will find a return self addressed, stamped envelope enclosed for your
convenience. If the terms of this offer are acceptable to you, please contact
Human Resources at (408) 220-8547 with your verbal acceptance. If we do not hear
from you by 5:00PM-PST on October 18th, 1999, we will assume you are not
interested in this offer and it will automatically expire.

Mike, we look forward to your becoming a part of Hyperion.

Sincerely,

Hyperion Solutions Corporation
By Renae Bresee
Human Resources

ACCEPTED AND AGREED TO
THIS 11TH DAY OF OCTOBER 1999

/s/ Michael Sternad
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Michael Sternad
                                    10/11/99
Please indicate actual start date: ____________________

Social Security Number: ________________________<PAGE>   1
                                                                    Exhibit 10.5

October 28, 1999

James A. Perakis
59 Edgewater Drive
Wilton, CT  06897

Re:  AMENDED & RESTATED AGREEMENT BETWEEN JAMES A. PERAKIS AND HYPERION
     SOLUTIONS CORPORATION ("THE COMPANY") DATED AS OF JANUARY 1, 1999 (THE
     "EMPLOYMENT AGREEMENT")

Dear Jim:

This letter reflects our agreement as of September 30, 1999 as to certain
changes to your Employment Agreement.

1.   The term of your employment under Section 2 of the Employment Agreement is
     extended until October 31, 1999, immediately after which date the
     Employment Agreement shall expire and your employment shall terminate. Upon
     the termination of your employment, you will have no right to severance
     pay, salary, bonus pay, expense reimbursement, or benefit continuation
     except as provided in paragraphs 2 and 3 below.

2.   Promptly after the execution of this letter, the Company will pay you a
     bonus of $ 60,417 with respect to your service to the Company during fiscal
     year 1999 and that portion of fiscal 2000 ending on October 31, 1999 in
     lieu of the payment described in Section 3(b) of the Employment Agreement.

3.   Following the termination of your employment as described in paragraph 1
     above, the Company will select and pay the premium for basic major medical
     and dental insurance for you, your spouse and your children (in each case
     until such child reaches the age of twenty-one (21)), which insurance will
     be at least equivalent to the Company's current medical and dental
     insurance plans and in no event be less favorable than the more favorable
     of either medical and dental insurance, respectively, provided to the
     Company's senior executives generally or its employees generally. In the
     event that the terms of the insurance selected by the Company provide, at
     no additional cost, for coverage of children while students beyond age
     twenty one (21) but not beyond age twenty five (25), these benefits will be
     made available to you for your children. These benefits shall continue
     until you reach age sixty-five (65), or should you die earlier, until you
     otherwise would have reached the age of sixty-five (65).

4.   As provided in the Nonqualified Stock Option Agreement between you and
     Hyperion Software Corporation dated September 19, 1996 (the

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     "Option Agreement"), while you continue to maintain a Business Relationship
     with the Company, you may continue to exercise any vested and unexercised
     options granted under the Option Agreement up to and including September
     19, 2006. Service as member of the Company's Board of Directors constitutes
     a "Business Relationship" for this purpose.

5.   You hereby resign, effective October 31, 1999, from all positions as an
     officer or director of any direct or indirect subsidiaries of the Company.
     You are continuing as a member of the Board of Directors of the Company.

6.   You acknowledge that your obligations under Section 7 (restrictions on
     employee), Section 8 (covenant not compete), Section 9 (proprietary
     information), Section 10 (injunctive relief) and Section 16 (choice of law)
     will survive the expiration of the Employment Agreement. The Company
     likewise acknowledges that the provisions of Section 5 (duties and extent
     of services) of the Employment Agreement (to the extent they address your
     ability to serve on the board of directors of other corporations) and the
     provisions of Section 14 (indemnification; D&O coverage) of the Employment
     Agreement shall survive for so long as you remain a member of the Company's
     Board of Directors.

7.   With respect to your vested and exercisable Company stock options, the
     Company will, upon your request, seek all approval necessary to permit the
     option exercise price for such rights (and any applicable withholding tax)
     to be paid by delivery of shares of Company common stock having an
     aggregate fair market value equal as of the date of exercise to such option
     exercise price (and any applicable withholding tax), in accordance with the
     terms of the plan(s) and/or agreement(s) governing such rights.

Kindly acknowledge your agreement to the terms of this letter by countersigning
in the space provided below.

Signed,

HYPERION SOLUTIONS CORPORATION

By: /s/  Jeffrey R. Rodek
    ----------------------------------
    Jeffrey R. Rodek, Chairman & CEO

Agreed and accepted.
/s/ James A. Perakis
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James A. Perakis

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