Document:

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                                                                   EXHIBIT 10.40

                                          June 1, 2001

Mr. Daniel M. McGurl
375 Night Heron Drive
Boca Grande, FL 33921

Dear Dan:

   Reference is made to your employment agreement with Bottomline Technologies
(de), Inc. (the "Company") dated as of December 3, 1998 (the "Agreement").

   By delivery and execution of this letter, the Company hereby agrees to
continue the Agreement for an additional 24-month period commencing December 3,
2001 and ending on December 3, 2003, unless sooner terminated in accordance
with the provisions of Section 5 of the Agreement. For all purposes of the
Agreement, such extension shall be deemed a portion of the Employment Period,
as defined in the Agreement.

   In all respects, the Agreement shall remain in full force and effect, as so
extended, provided, however, that:

   1.It is agreed and acknowledged that your current titles, for purposes of
     the Agreement, are Chairman of the Board and Chief Executive Officer, and
     that the first sentence of Section 2 of the Agreement is hereby amended
     accordingly.

   2.It is further agreed that your current annual base salary is $270,000, and
     that Section3.1 of the Agreement is hereby amended accordingly. Further
     salary, bonus and option adjustments may be made from time to time in
     accordance with the terms of the Agreement as so extended.

   3.It is further agreed that in the event of the termination of your
     employment with the Company other than for "cause", as defined in the
     Agreement, (i) all options held by you shall immediately vest and (ii) you
     shall have a period of two years (or the remainder of the option term if
     less than two years) after the date of termination to exercise all options
     you hold; provided, however, the automatic vesting under this particular
     provision shall not apply to any prior grant of options at a strike price
     less than the closing price of Bottomline's stock on the date hereof,
     unless subsequently provided for at a later date by a vote of the Board or
     the Compensation Committee.

   By execution of this letter, you hereby agree to the foregoing extension of
the Agreement, and reaffirm your obligations under the Agreement.

                                          Very truly yours,

                                          Joseph L. Barry, Jr.
                                          Chairman of Compensation Committee

Agreed to and Acknowledged By:

--------------------------------------

Cc: Mr. James Zilinski<PAGE>

                                                                   EXHIBIT 10.41

                                          June 1, 2001

Mr. Joseph L. Mullen
One Berkshire Road
Wellesley, MA 02181

Dear Joe:

   Reference is made to your employment agreement with Bottomline Technologies
(de), Inc. (the "Company") dated as of December 3, 1998 (the "Agreement").

   By delivery and execution of this letter, the Company hereby agrees to
continue the Agreement for an additional 24-month period commencing December 3,
2001 and ending on December 3, 2003, unless sooner terminated in accordance
with the provisions of Section 5 of the Agreement. For all purposes of the
Agreement, such extension shall be deemed a portion of the Employment Period,
as defined in the Agreement.

   In all respects, the Agreement shall remain in full force and effect, as so
extended, provided, however, that:

   1.It is agreed and acknowledged that your current title, for purposes of the
     Agreement, is President, and that the first sentence of Section 2 of the
     Agreement is hereby amended accordingly.

   2.It is further agreed that your current annual base salary is $235,000, and
     that Section3.1 of the Agreement is hereby amended accordingly. Further
     salary, bonus and option adjustments may be made from time to time in
     accordance with the terms of the Agreement as so extended.

   3.It is further agreed that in the event of the termination of your
     employment with the Company other than for "cause", as defined in the
     Agreement, (i) all options held by you shall immediately vest and (ii) you
     shall have a period of two years (or the remainder of the option term if
     less than two years) after the date of termination to exercise all options
     you hold; provided, however, the automatic vesting under this particular
     provision shall not apply to any prior grant of options at a strike price
     less than the closing price of Bottomline's stock on the date hereof,
     unless subsequently provided for at a later date by a vote of the Board or
     the Compensation Committee.

   By execution of this letter, you hereby agree to the foregoing extension of
the Agreement, and reaffirm your obligations under the Agreement.

                                          Very truly yours,

                                          Daniel M. McGurl
                                          Chairman of the Board
                                          and Chief Executive Officer

Agreed to and Acknowledged By:

--------------------------------------

Cc: Mr. Joseph Leo Barry
   Mr. James Zilinski<PAGE>

                                                                   EXHIBIT 10.42

                                          June 1, 2001

Mr. Robert A. Eberle
7 Rockrimmon Road
North Hampton, NH 03862

Dear Rob:

   Reference is made to your employment agreement with Bottomline Technologies
(de), Inc. (the "Company") dated as of September 30, 1998 (the "Agreement").

   By delivery and execution of this letter, the Company hereby agrees to
continue the Agreement for an additional 24-month period commencing September
30, 2001 and ending on September 30, 2003, unless sooner terminated in
accordance with the provisions of Section 5 of the Agreement. For all purposes
of the Agreement, such extension shall be deemed a portion of the Employment
Period, as defined in the Agreement.

   In all respects, the Agreement shall remain in full force and effect, as so
extended, provided, however, that:

   1.It is agreed and acknowledged that your current titles, for purposes of
     the Agreement, are Executive Vice President, Chief Operating Officer and
     Chief Financial Officer, and that the first sentence of Section 2 of the
     Agreement is hereby amended accordingly.

   2.It is further agreed that your current annual base salary is $220,000, and
     that Section3.1 of the Agreement is hereby amended accordingly. Further
     salary, bonus and option adjustments may be made from time to time in
     accordance with the terms of the Agreement as so extended.

   3.It is further agreed that in the event of the termination of your
     employment with the Company other than for "cause", as defined in the
     Agreement, (i) all options held by you shall immediately vest and (ii) you
     shall have a period of two years (or the remainder of the option term if
     less than two years) after the date of termination to exercise all options
     you hold; provided, however, the automatic vesting under this particular
     provision shall not apply to any prior grant of options at a strike price
     less than the closing price of Bottomline's stock on the date hereof,
     unless subsequently provided for at a later date by a vote of the Board or
     the Compensation Committee.

   By execution of this letter, you hereby agree to the foregoing extension of
the Agreement, and reaffirm your obligations under the Agreement.

                                          Very truly yours,

                                          Daniel M. McGurl
                                          Chairman of the Board
                                          and Chief Executive Officer

Agreed to and Acknowledged By:

--------------------------------------

Cc: Mr. Joseph Leo Barry
   Mr. James Zilinski<PAGE>
                                                                   EXHIBIT 10.12

                      AMENDMENT NO. 1 TO ALLIANCE AGREEMENT

     THIS AMENDMENT NO. 1 TO THE ALLIANCE AGREEMENT (this "Amendment"),
effective as of December 1, 2000 (the "Effective Date"), is entered into between
Cisco Systems, Inc., a California corporation ("Cisco"), and KPMG Consulting,
LLC, a Delaware limited liability company ("KPMG"). For mutual consideration,
the sufficiency of which is hereby acknowledged by the parties, the Alliance
Agreement between the parties dated as of December 29, 1999 (the "Agreement") is
hereby amended as set forth below.

1.   In Section 4.4 entitled "Facilities and Infrastructure", delete the third
                              -----------------------------
     sentence in its entirety and replace it with the following sentence:
     "Subject to Section 4.9, five of the Solution Centers will be staffed and
     operational not later than December 31, 2000; and the remaining Solution
     Center, which will be located in the Asia-Pacific region, will be staffed
     and operational not later than July 1, 2001.".

2.   Delete, in its entirety, Exhibit A entitled "Resource Allocation Schedule",
                                                  ----------------------------
     and replace such exhibit with the Revised Exhibit A attached to this
     Amendment. The parties agree that the attached, Revised Exhibit A to this
     Amendment, is an accurate representation of the mutually agreed upon,
     amended provisions of Exhibit A, including without limitation, a revised
     Resource Allocation Schedule which conforms to the requirements if Section
     4.1.1 of the Agreement. The Parties further agree that if the Parties fail
     to agree upon a calendar year 2001 global staffing plan ("CY01 Staffing
     Plan") by December 31, 2000, then this Section 2 of Amendment No. 1 shall
     not take effect.

3.   General. This Amendment shall be effective for all purposes as of the
     -------
     Effective Date. The parties agree that all other provisions of the
     Agreement remain unchanged and continue in full force and effect. This
     Amendment shall be governed by and construed in accordance with the laws of
     the State of California, without regard to the conflicts of law principles
     thereof. In the event of a conflict between the provisions of this
     Amendment and the Agreement, the provisions of this Amendment shall
     prevail.

     IN WITNESS WHEREOF, the undersigned have duly executed and delivered this
Amendment effective as of the Effective Date.

                                       Cisco Systems, Inc.

                                       By     /s/ Simon Hayes
                                          -----------------------------------

                                       Name   Simon Hayes
                                            ---------------------------------

                                       Title  Director, Intergrator Alliances
                                             --------------------------------

                                       Date   12/11/00
                                            ---------------------------------

                                       KPMG Consulting, LLC

                                       By     /s/ Deborah Eastman
                                          -----------------------------------

                                       Name   Deborah Eastman
                                            ---------------------------------

                                       Title  Senior Vice President
                                             --------------------------------

                                       Date   12/11/00
                                            ---------------------------------

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