<PAGE>

                                                                   EXHIBIT 10.16

[Logo]  CHAIN LINK                                       1314 Chesapeake Terrace
        TECHNOLOGIES, INC.                           Sunnyvale, California 94089
                                                               tel: 408.543.4400
                                                               fax: 408.752.8460
                                                             http://www.clti.com

                                 May 23, 2000

Mr. Paul McFeeters

Re:  Officer of Employment by Chain Link Technologies, Inc.
     ------------------------------------------------------

Dear Mr. McFeeters:

I am very pleased to confirm our offer to you of employment with Chain Link
Technologies, Inc. ("CLTI") (the "Company").  You will report to Bryan Plug,
Chief Executive Officer, in the position of Chief Financial Officer out of our
Sunnyvale, CA Office.

The terms of our offer and the benefits currently provided by the Company are as
follows:

     1.  Starting Salary. Your starting salary will be one hundred and seventy-
         ---------------
         five thousand US dollars ($175,000) per year and will be subject to
         annual review. In addition, you will be eligible for a performance-
         based bonus of up to fifty thousand US dollars ($50,000) annually. You
         will be provided with the specific performance criteria for calculation
         of your actual bonus.

     2.  Benefits. In addition, you will be eligible to participate in regular
         --------
         health insurance, bonus and other employee benefit plans established by
         the Company for its employees from time to time. The Company reserves
         the right to change or otherwise modify, in its sole discretion, the
         preceding terms of employment, as well as any of the terms set forth
         herein at any time in the future.

     3.  Vacation. Chain Link will offer you 4 weeks of vacation a year prorated
         --------
         on your year of hire accrued at 13.33 hours a month. You may carry over
         any unused accrued paid time off from year to year, not to exceed 160
         hours of paid time off accrual at any time.

     4.  Relocation. Chain Link will reimburse up to thirty thousand US dollars
         ----------
         ($30,000) in relocation related expenses. Original receipts are
         required to receive reimbursement. You are also required to pay back
         the relocation expenses to Chain Link if you choose to terminate your
         employment with Chain Link within a year from your start date.

     5.  Confidentiality. As an employee of the Company, you will have access to
         ---------------
         certain confidential information of the Company and you may, during the
         course of your employment, develop certain information or inventions
         that will be the property of the Company. To protect the interests of
         the Company, you will need to sign the Company's standard "Employee
         Invention Assignment and Confidentiality Agreement" as a condition of
         your employment. We wish to impress upon you that we do not want you
         to, and we hereby direct you not to, bring with you any confidential or
         proprietary material of any former employer or to violate any other
         obligations you may have to any former employer. During the period that
         you render services to the Company, you agree to not engage in any
         employment, business or activity that is in any way competitive with
         the business or proposed business of the Company. You will disclose to
         the Company in writing any other gainful employment, business or
         activity that you are currently associated with or participate in that
         competes with the Company. You will not assist any other person or
         organization in competing with the Company or in preparing to engage in
         competition with the business or proposed business of the Company. You
         represent that your signing of this offer letter, agreement(s)
         concerning stock options granted to you, if any, under the Plan (as
         defined below) and the Company's Employee Invention Assignment and
         Confidentiality Agreement and you
<PAGE>

[Logo]  CHAIN LINK                                       1314 Chesapeake Terrace
        TECHNOLOGIES, INC.                           Sunnyvale, California 94089
                                                               tel: 408.543.4400
                                                               fax: 408.752.8460
                                                             http://www.clti.com

         commencement of employment with the Company will not violate any
         agreement currently in place between yourself and current or past
         employers.

     6.  Options. We will recommend to the Board of Directors of the Company
         -------
         that you be granted the opportunity to purchase up to one hundred
         seventy-five thousand (175,000) shares of Common Stock of the Company
         under our 1997 Chain Link Stock Options Plan (the "Plan") at a strike
         price of $3.00 per share if you start on or before June 1, 2000. You
         may exercise 25% vested options after your first 12 months of
         employment with Chain Link and an additional twenty-five percent (25%)
         per year thereafter, so long as you remain employed by the Company.
         However, the grant of such options by the Company is subject to the
         Board's approval and this promise to recommend such approval is not a
         promise of compensation and is not intended to create any obligation on
         the part of the Company. The Company's Board of Directors will provide
         further details on the Plan and any specific option grant to you upon
         approval of such grant.

     7.  Severance. For involuntary termination without cause, your severance
         ---------
         package will consist of six months of your base salary and general
         benefits, provided, however, that you will not continue to vest in
         stock options after the date of the termination of your employment. You
         will not be entitled to any additional compensation, other than payment
         for salary earned but unpaid, accrued but unused vacation and any
         vested stock options if your employment is terminated for cause or if
         you voluntarily resign from your employment.

     7.  At Will Employment.  While we look forward to a long and profitable
         ------------------
         relationship, should you decide to accept our offer, you will be an at-
         will employee of the Company, which means the employment relationship
         can be terminated by either of us for any reason, at any time, with or
         without notice and with our without cause. Any statements or
         representations to the contrary (and, indeed, any statements
         contradicting any provision in this letter) should be regarded by you
         as ineffective. Further, your participation in any stock option or
         benefit program is not to be regarded as assuring you of continuing
         employment for any particular period of time.

     8.  Authorization to Work. Please note that because of employer regulations
         ---------------------
         adopted in the Immigration Reform and Control Act of 1986, within three
         (3) business days of starting your new position you will need to
         present documentation demonstrating that you have authorization to work
         in the United States. If you have questions about this requirement,
         which applies to U.S. citizens and non-U.S. citizens alike, you may
         contact our personnel office.

     9.  Arbitration. You and the Company agree to submit to mandatory and
         -----------
         exclusive binding arbitration any controversy or claim arising out of,
         or relating to, this Agreement or any breach hereof or your employment
         relationship, provided, however, that the parties retain their right
         to, and shall not be prohibited, limited or in any other way restricted
         from seeking or obtaining equitable relief from a court having
         jurisdiction over the parties. Such arbitration shall be conducted
         through the American Arbitration Association in the State of
         California, Santa Clara County, before a single arbitrator, in
         accordance with the National Rules for the Resolution of Employment
         Disputes of the American Arbitration Association in effect at that
         time, and judgment upon the determination or award rendered by the
         arbitrator may be entered in any court having jurisdiction thereof.
<PAGE>

[Logo]  CHAIN LINK                                       1314 Chesapeake Terrace
        TECHNOLOGIES, INC.                           Sunnyvale, California 94089
                                                               tel: 408.543.4400
                                                               fax: 408.752.8460
                                                             http://www.clti.com

     10. Acceptance. This offer will remain open until May 30, 2000. If you
         decide to accept our offer and I hope you will, please sign the
         enclosed copy of this letter in the space indicated and return it to
         me. Your signature will acknowledge that you have read and understood
         and agreed to the terms and conditions of this offer letter and the
         attached documents, if any. Should you have anything else that you wish
         to discuss, please do not hesitate to call me.

We look forward to the opportunity to welcome you to the Company.

Sincerely,

/s/ Bryan Plug

Bryan Plug                 Linda Lee for Bryan Plug
Chief Executive Officer

I have read and understood this offer letter and hereby acknowledge, accept and
agree to the terms as set forth above  and further acknowledge that no other
commitments were made to me as part of my employment offer except as
specifically set forth herein.

/s/ Paul McFeeters                           Dated signed May 30, 2000
--------------------------------                         ----------------------
Paul McFeeters

I plan to report to work at Chain Link Technologies, Inc. on  May 30, 2000    .
                                                            ------------------