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                                                                    Exhibit 10.1

                        AMENDMENT TO EMPLOYMENT AGREEMENT

         This document amends that certain Employment Agreement ("Agreement")
executed as of the July 22nd, 1998, by and between Daleen Technologies, Inc.
(hereinafter called the "Company") and David McTarnaghan (hereinafter called the
"Employee").

         The parties hereto agree that Section 8 of the Agreement shall be
amended to read as follows effective as of the date of execution hereof:

         8. SEPARATION BENEFITS.

         A. PROVISION OF SEPARATION BENEFITS. In the event that the Employee's
         employment with all members of the Company Group is terminated, the
         Company shall, subject to the requirement of subsection B below,
         provide the separation benefits specified in subsection C below unless
         the Employee's termination of employment results from:

                  1. The Employee voluntarily resigning or otherwise terminating
                  his employment or services (including job abandonment, death
                  or disability) with any member of the Company Group for any
                  reason.

                  2. The termination of the Employee's employment by a member of
                  the Company Group at a time when the Employee has an offer of
                  immediate employment with another member of the Company Group.

                  3. The termination of the Employee's employment by a member of
                  the Company Group for "Cause".

         B. SEPARATION BENEFITS CONTINGENT ON EXECUTED AND VALID RELEASE. No
         separation benefits specified in subsection C below shall be provided
         to the Employee unless and until the Employee has executed a separation
         and release agreement with the Company in a form reasonably acceptable
         to the Company, and such separation and release agreement has become
         valid and enforceable. Such separation and release agreement shall
         contain provisions in which (1) the Employee shall agree to a date of
         termination of employment with all members of the Company Group, and
         (2) the Employee shall release and discharge the Company Group and
         their related employees, directors, consultants, advisors, and other
         persons from any claim or liability, whether known or unknown, arising
         out of the Employee's employment with members of the Company Group or
         the termination of such employment.

         C. SEPARATION BENEFITS TO BE PROVIDED. The separation benefits that the
         Employee shall receive under subsection A above shall consist of:

                  1. A cash amount equal to one-twelfth (1/12) of the regular
                  annual salary (exclusive of bonuses, commissions, and any
                  other extra compensation) of the Employee in effect as of the
                  Employee's date of termination of employment multiplied by the
                  number of months of the Employee's Separation Period, which
                  shall be payable in installments consistent with the Company's
                  general payroll practices over the Employee's Separation
                  Period; and

                  2. Reimbursement of any COBRA group health plan premiums paid
                  by the Employee for the coverage of the Employee and/or any of
                  the Employee's covered dependents during the Separation
                  Period. Reimbursements will be made within fifteen (15) days
                  following submission of proof of the expense and the payment
                  thereof by the Employee.

         All payments will be subject to applicable federal, state and local tax
         withholdings.

         D. DEFINITIONS. For this purpose, the following terms shall have the
         following meanings:

                  1. The term "Disability" shall mean that the Employee has been
                  determined to be disabled under the company's long-term
                  disability plan, if any, and/or under the Federal Social
                  Security Act.

                  2. The term "Cause" shall mean an act or acts by the Employee
                  involving (a) the use for profit or willful disclosure to
                  unauthorized persons of confidential information or trade
                  secrets of the Company, a Parent or a Subsidiary in violation
                  of company policy or company agreements with such persons
                  protecting such matters, (b) the material and willful breach
                  of any written contract between the Employee and the Company,
                  a Parent or a Subsidiary, or of any employment or



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                  business policies of the Company, a Parent or a Subsidiary
                  (including, without limitation, theft or misuse of Company
                  property) (c) the unlawful trading in the securities of the
                  Company, a Parent or a Subsidiary, or of another corporation
                  based on information gained as a result of the performance of
                  services for the Company, a Parent or a Subsidiary, (d) a
                  conviction for, or pleading NOLO CONTENDERE to, a felony or
                  other crime involving moral turpitude or dishonesty (other
                  than traffic violations and similar misdemeanors), or (e) any
                  other act or omission by Employee which is in violation of the
                  Agreement or written company policy and which the Company in
                  good faith believes has occurred to its material detriment and
                  about which Employee has received at least one (1) written
                  warning by the Company and despite such prior written warning,
                  Employee has on a second occasion committed such act or
                  omission.

                  3. The term "Company Group" shall mean the Company and any
                  parent or subsidiary of the Company (or a successor entity of
                  any such entity).

                  4. The term "Separation Period" shall mean the lesser of (1) a
                  number of months equal to the sum of six (6) plus the
                  Employee's number of completed (not partial) years of service
                  with members of the Company Group as of his date of
                  termination of employment, or (2) twelve (12) months;
                  provided, however, to the extent that the Employee receives
                  any payments of base salary, excluding any earned vacation
                  pay, prior to his termination of employment for a period of
                  time while he is performing no (or DE MINIMIS) services for
                  the Company Group, such period of time shall be subtracted
                  from his Separation Period.

         All other provisions of the Agreement shall remain in full force and
effect.

         IN WITNESS WHEREOF, the parties hereto have hereunto set forth their
signatures as of this 4th day of September, 2001.


EMPLOYEE:                             COMPANY:

                                      Daleen Technologies, Inc.


/s/ David McTarnaghan
-----------------------------------
David McTarnaghan


                                      By: /s/ David B. Corey
                                          --------------------------------------
                                      Its: PRESIDENT AND CHIEF OPERATING OFFICER