Document:

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                                                                    Exhibit 10.5
                                                                    ------------

June 15, 2001

Mr. Richard Labaudiniere, Ph.D.
258 Western Avenue
Sherborn, MA 01770

Dear Richard:

     This letter will confirm our offer to you of employment with Genome
Therapeutics Corp. (the "Company"), under the terms and conditions that follow:

     1.   POSITION AND DUTIES. Effective October 30, 2000, you will be employed
by the Company, on a full-time basis as its Senior Vice President of Research
and Development. You agree to perform the duties of your position and such other
duties as may reasonably be assigned to you from time to time. You also agree
that, while employed by the Company, you will devote your full business time and
your best efforts, skill and knowledge exclusively to the advancement of the
business and interests of the Company and its subsidiaries and to the discharge
of your duties and responsibilities for them. You warrant that you are free to
enter into and fully perform this agreement and are not subject to any
employment, confidentiality, non-competition or other agreement which conflicts
with this agreement.

     2.   COMPENSATION AND BENEFITS. During your employment, as compensation for
all services performed by you for the Company and its subsidiaries, the Company
will provide you the following pay and benefits:

          a.   BASE SALARY. The Company will pay you a base salary at the rate
of Two Hundred Thirty Thousand Dollars ($230,000) per year, payable in
accordance with the regular payroll practices of the Company and subject to
increase from time to time by the Board of Directors of the Company (the
"Board") in its discretion (such base salary as in effect from time to time, the
"Base Salary").

          b.   BONUS COMPENSATION. During your employment, pursuant to the
Company's Management Incentive Plan, you will be considered annually for a bonus
of up to thirty (30%) of your Base Salary. For fiscal year 2001, your target
bonus shall be pro-rated for the part of the fiscal year for which you were
employed by the Company. It is anticipated that the Company's fiscal year will
be changed to a December 31 year end. Bonus awards will be determined by the
Board, based on your performance and that of the Company against goals
established annually by the Board after consultation with you. Subject to Board
approval, half of any annual bonus will be paid in cash and half will be paid in
options on the Company's common stock.
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          c.   STOCK OPTIONS. As a bonus for commencing employment with the
Company, you have received a stock option covering 4,500 shares of the Company's
common stock with an exercise price of $0.10 per share. The Company has also
granted to you an additional stock option covering 100,000 shares of the
Company's common stock with an exercise price of $14.375 per share. The terms of
these options are governed by the Company's option plans and stock option
agreements between the Company and you.

          d.   PARTICIPATION IN EMPLOYEE BENEFIT PLANS. You will be entitled to
participate in all employee benefit plans from time to time in effect on the
same basis as other executive employees of the Company, except to the extent
such plans are duplicative of benefits otherwise provided to you under this
agreement. Your participation will be subject to the terms of the applicable
plan documents and applicable Company policies.

          e.   VACATIONS AND OTHER BENEFITS: You will be entitled to four (4)
weeks of vacation per year, in addition to holidays observed by the Company.
Vacation may be taken at such times and intervals as you shall determine,
subject to the business needs of the Company. In addition, the Company shall
provide you with a cellular telephone and related service plan.

          f.   RELOCATION EXPENSE REIMBURSEMENT. The Company shall reimburse
you, upon proper accounting, for reasonable and customary expenses up to $75,000
incurred by you in the course of relocating to the Boston, Massachusetts area.
In addition, the Company shall pay you such additional amount as is necessary to
compensate you for any tax you may incur by reason of such reimbursement
payment. Your rights to seek reimbursement pursuant to this paragraph shall
expire on October 30, 2001; provided, however, that you shall have rights to
reimbursement in accordance with this paragraph for any expenses incurred prior
to such date so long as you submit a reasonably detailed reimbursement request
within thirty days following October 30, 2001.

          g.   CONFIDENTIAL INFORMATION AND RESTRICTED ACTIVITIES. You
acknowledge that, in consideration for your employment with the Company, you
have agreed to and executed a joinder dated April 5, 2001 to Genome
Therapeutics' Intellectual Property Policy, including Appendix I thereof
("Invention, Assignment, Non-Disclosure and Covenant Not To Compete"), which
imposes certain non-competition, non-solicitation and non-disclosure
restrictions on you (such joinder referred to hereinafter as the "Intellectual
Property and Non-Compete Agreement

     3.   TERMINATION OF EMPLOYMENT; SEVERANCE. Your employment under this
agreement shall continue until one party delivers to the other party a written
notice of termination setting forth the reason, if any, for the termination. If
you terminate your employment without Good Reason (as defined below), you will
give the Company two month's written notice.

          a.   In the event of termination of your employment by the Company
other than for Cause (as defined below) or your termination of employment for
Good Reason, the Company will: (i) continue to pay you your Base Salary and
provide you with

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the benefits set forth in paragraph 2.d. hereof for the lesser of (x) a period
of nine (9) months from the date of termination or (y) such period of time that
it takes you to find comparable employment; (ii) pay you on the date of
termination any Base Salary earned but not paid through the date of termination;
and (iii) pay you any bonus to which you are entitled in accordance with
paragraph 2.b. above, prorated to the date of termination and payable at the
time such bonuses are payable to Company executives generally. All severance
payments will be payable in accordance with the normal payroll practices of the
Company.

          b.   In the event of termination of your employment by the Company for
Cause or termination by you other than for Good Reason, the Company will have no
further obligations to you other than paying you any Base Salary earned but not
paid through the date of termination.

          c.   If within two years of a Change of Control (as defined in Exhibit
A hereto) of the Company, (i) you are terminated other than for Cause, or (ii)
you terminate your employment with the surviving company due to the fact that
(a) the surviving company takes any action that results in a material diminution
in your position, authority or duties as such position, authority or duties
existed immediately prior to the Change of Control or (b) the surviving company
takes any action that would require you to have your principal place of work
changed to any location outside a thirty-five (35) mile radius of the City of
Boston, then, in the case of either (i) or (ii), the Company will continue to
pay your Base Salary (as in effect at the time of your termination) and provide
you with the benefits set forth in paragraph 2.d. above for a period of twelve
(12) months from the date of termination. The Company will also pay you on the
date of termination any Base Salary earned but not paid through the date of
termination. All severance payments will be payable in accordance with the
normal payroll practices of the Company. If you are eligible for severance
payments under this paragraph upon termination, then the provisions of paragraph
4.a. above shall not apply to such termination.

          d.   For purposes of this agreement, "Cause" shall mean: (i) your
material failure to perform (other than by reason of disability), or material
negligence in the performance of, your duties and responsibilities to the
Company or any of its subsidiaries; (ii) your material breach of this agreement
or any other agreement between you and the Company or any of its subsidiaries;
(iii) the commission of a felony or other crime involving an act of moral
turpitude; or (iv) a material act of dishonesty or breach of trust on your part
resulting or intended to result, directly or indirectly, in a personal gain or
enrichment at the expense of the Company.

          e.   For purposes of this agreement, "Good Reason" shall mean: (i) any
action by the Company that results in a material diminution in your position,
authority or duties with the Company, excluding any isolated, insubstantial or
inadvertent action not taken in bad faith and which is promptly remedied by the
Company; (ii) material failure of the Company to provide you compensation and
benefits in accordance with the terms of paragraph 2 of this agreement for more
than ten business days after notice from you specifying in reasonable detail the
nature of the failure or (iii) a Change of Control.

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<PAGE>

          f.   This agreement shall automatically terminate in the event of your
death during employment. In the event you become disabled during employment and,
as a result, are unable, in the reasonable judgment of the Board, to continue to
perform substantially all of your duties and responsibilities under this
agreement, the Company will continue to pay you your Base Salary and to provide
you benefits in accordance with paragraph 2.d. above, to the extent permitted by
plan terms, for up to twenty-six (26) weeks of disability during any period of
three hundred and sixty-five (365) consecutive calendar days. The obligations of
the Company to make payments to you due to disability pursuant to this paragraph
4.f. shall be reduced by the amount of any payments you receive pursuant to the
Company's disability insurance policy. If you are, in the reasonable judgment of
the Board, unable to return to work after twenty-six (26) weeks of disability,
the Company may terminate your employment, upon notice to you.

     4.   MISCELLANEOUS. This agreement sets forth the entire agreement between
you and the Company and replaces all prior and contemporaneous communications,
agreements and understandings, written or oral, with respect to the terms and
conditions of your employment; provided, however, that you and the Company
acknowledge and agree that the Intellectual Property and Non-Competition
Agreement shall remain in full force and effect. This agreement may not be
modified or amended, and no breach shall be deemed to be waived, unless agreed
to in writing by you and an expressly authorized representative of the Board.
This agreement may be executed in two or more counterparts, each of which shall
be an original and all of which together shall constitute one and the same
instrument. This is a Massachusetts contract and shall be governed and construed
in accordance with the laws of the Commonwealth of Massachusetts, without regard
to the conflict of laws principles thereof. All payments made hereunder shall be
net of any tax or other amount required to be withheld by the Company by law.
Neither you nor the Company may make any assignment of this agreement or any
interest in it, by operation of law or otherwise, without the prior written
consent of the other; provided, however, that the Company may assign its rights
and obligations under this agreement without your consent to one of its
subsidiaries or to any Person that acquires substantially all the assets of the
Company, by means of a merger or otherwise. Your obligations to the Company
under the Intellectual Property and Non-Competition Agreement shall survive the
termination of this agreement.

     5.   NOTICES. Any notices provided for in this agreement shall be in
writing and shall be effective when delivered in person or deposited in the
United States mail, postage prepaid, and addressed to you at your last known
address on the books of the Company or, in the case of the Company, to it at its
principal place of business, attention of the Chief Executive Officer, or to
such other address as either party may specify by notice to the other actually
received.

     6.   BINDING EFFECT. This agreement shall be binding upon and inure to the
benefit of your heirs and representatives and the successors and assigns of the
Company. The Company shall require any successor (whether direct or indirect, by
purchase, merger, reorganization, consolidation, acquisition of property or
stock, liquidation, or otherwise) to all or a significant portion of its assets,
by agreement in form and substance satisfactory to

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you, expressly to assume and agree to perform this agreement in the same manner
and to the same extent that the Company would be required to perform this
agreement if no such succession had taken place. Regardless of whether such
agreement is executed, this agreement shall be binding upon any successor of the
Company in accordance with the operation of law and such successor shall be
deemed the "Company" for purposes of this agreement.

If the foregoing is acceptable to you, please sign this letter in the space
provided and return it to me no later than June 29, 2001.  At the time you sign
and return it this letter will take effect as a binding agreement between you
and the Company on the basis set forth above.  The enclosed copy is for your
records.

Sincerely yours,                        Accepted and Agreed:

Steven M. Rauscher                      ----------------------------------
President and Chief Executive Officer   Richard Labaudiniere, Ph.D.

                                        Date:
                                             -----------------------------

                                       5
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                        Definition of Change of Control
                        -------------------------------

     A "Change of Control" shall be deemed to have occurred if and when: (i) the
Company executes an agreement of acquisition, merger, or consolidation which
contemplates that after the effective date provided for in the agreement, all or
substantially all of the business and/or assets of the Company shall be
controlled by another corporation or other entity; provided, however, for
purposes of this clause (i) that (A) if such an agreement requires as a
condition precedent approval by the Company's shareholders of the agreement or
transaction, a Change of Control shall not be deemed to have taken place unless
and until such approval is secured and, (B) if immediately after such effective
date the voting shareholders of such other corporation or entity shall be
substantially the same as the voting shareholders of the Company immediately
prior to such effective date, the execution of such agreement shall not, by
itself, constitute a "Change of Control;" (ii) any "person" (as such term is
used in Sections 13(d) or 14(d)(2) of the Securities Exchange Act of 1934)
becomes the beneficial owner, directly or indirectly, of securities of the
Company that represent 35% or more of the votes that could then be cast in an
election for members of the Company's Board; or (iii) during any period of 24
consecutive months, commencing after the effective date of this agreement,
individuals who at the beginning of such 24-month period were directors of the
Company shall cease to constitute at least a majority of the Company's Board,
unless the election of each director who was not a director at the beginning of
such period has been approved in advance by directors representing at least two
thirds of (A) the directors then in office who were directors at the beginning
of the 24-month period, or (B) the directors specified in clause (A) plus
directors whose election has been so approved by directors specified in clause
(A).

                                       6<PAGE>

                                                                    Exhibit 10.1

                     SECOND AMENDMENT TO SUBLEASE BETWEEN
                          325 CORPORATE DRIVE II, LLC
                                AS "SUBLESSOR"
                                      AND
                         BOTTOMLINE TECHNOLOGIES, INC.
                                AS "SUBLESSEE"

          THIS SECOND AMENDMENT TO SUBLEASE ("Sublease") is made by and between
325 CORPORATE DRIVE II, LLC, ("Sublessor") and BOTTOMLINE TECHNOLOGIES, INC.
("Sublessee"), the Parties to a certain Sublease dated August 31, 2000, as
amended by First Amendment to Sublease dated December 29, 2000 (collectively
referred to herein as the "Sublease"). All capitalized terms contained in this
Second Amendment to Sublease shall have the meanings given to them in the
Sublease.

          WHEREAS: The Sublease provides for the design and pricing of the
Leasehold Improvement Work to be constructed by Sublessor, and further provides
a mechanism for the Sublessee to pay the costs of such Leasehold Improvement
Work to the extent such costs exceed $2,436,496 all of which was the subject of
a "CONFIRMATION OF PRICING FOR LEASEHOLD IMPROVEMENT WORK UNDER SECTION 2.8 OF
SUBLEASE BETWEEN 325 CORPORATE DRIVE II, LLC AS 'SUBLESSOR' AND BOTTOMLINE
TECHNOLOGIES, INC. AS 'SUBLESSEE'" (the "Confirmation"); and

          WHEREAS: The Parties desire to amend the Sublease and the
Confirmation.

          NOW THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged and agreed, the parties agree that
the Sublease shall be, and is hereby, amended as follows:

1.   The defined term "Subleased Premises" shall mean no less than 62,000 and
     not more than 64,000 rentable square feet of space located on the first,
     third and fourth floor(s) of the approximately 100,000 square foot building
     at 325 Corporate Drive, Portsmouth, New Hampshire (the "Building"). After
     completion of the Leasehold Improvement Work, Sublessor shall provide
     Sublessee with a certified measurement of the rentable space within 60 days
     from the date of Sublessee's occupancy of the Subleased Premises and the
     appropriate Lease provision shall automatically be amended consistent
     therewith.

2.   Exhibit 2 to the Sublease is hereby deleted in its entirety and Exhibit 1
     hereto added in its place. Exhibit 1 hereto is a plan or plans showing the
     "Subleased Premises" or "Premises" leased under this Sublease.

3.   Section 21.3 of the Sublease is deleted in its entirety and the following
     substituted therefore:

     "21.3  Expansion Option.  Sublessee shall have the right and option to
     expand the space which comprises the Subleased Premises and is subject to
     this Sublease for up to 10,000 rentable square feet of space.  The
     foregoing expansion option shall be exercisable at any time during the
     Original Term of the Sublease only by Sublessee and only by giving
     Sublessor written notice thereof, which notice shall specify the amount of
     space (up to the maximum of 10,000 rentable square feet) (the "Expansion
     Space") and the proposed
<PAGE>

     commencement date for the expansion option (which notice shall be given at
     least six (6) months in advance). Within thirty (30) days after the receipt
     of Sublessee's notice of exercise of the expansion option, Sublessor shall
     designate the location of the Expansion Space within the Building.
     Sublessor shall use its reasonable best efforts to (i) provide contiguous
     space located on a single floor for the Expansion Space, and (ii) make the
     Expansion Space available for Sublessee's occupancy on the commencement
     date proposed by the Sublessee in its notice of exercise of the expansion
     option, but in any event no later than twelve (12) months following receipt
     of such notice. Any costs incurred by Sublessor for relocation of tenants
     and/or reconfiguration of space in creating the Expansion Space shall be
     paid by Sublessee upon demand from Sublessor. As a condition precedent to
     the occupancy of the Expansion Space by the Sublessee, Sublessor and
     Sublessee shall execute a written amendment of this Sublease to effect the
     incorporation of the Expansion Space into the Subleased Premises, which
     amendment shall contain the terms and conditions of such occupancy as
     agreed to by the parties, including, without limitation, the term of the
     lease of the Expansion Space.

     In the event Sublessee shall commence occupancy of the Expansion Space
     under this Section 21.3 on or before May 1, 2004  the Base Rent per square
     foot rental rate shall be the same Base Rent per square foot charge paid by
     the Sublessee under Article 4.1 of this Sublease plus any other additional
     charges payable by the Sublessee under this Lease, and the other terms and
     conditions of the amendment to the Sublease.

     In the event Sublessee shall commence occupancy of the Expansion Space
     under this Section 21.3 after May 1, 2004, the Base Rent per square foot
     shall be negotiated by the parties hereto, and shall be commercial
     reasonable. In no event, however, shall the Base Rent for the Expansion
     Space be less than the Base Rent per square foot charge paid by the
     Sublessee under Article 4.1 of this Sublease.

4.   A list of the final plans and specifications for the Base Building Work, as
     approved by the parties in the Confirmation, is attached hereto as Exhibit
     2A, which list is subject to the deletions and modifications listed on
     Exhibit 9 hereto.  A list of the existing plans and specifications for the
     Leasehold Improvement Work, as previously approved by the parties, is
     attached hereto as Exhibit 2, which list shall be subject to modification
     as provided in Section 5 below.  Sublessor shall use diligent efforts to
     complete construction of the Base Building Work and the Leasehold
     Improvement Work on or before April 25, 2002.  In the event Sublessor fails
     to achieve "Substantial Completion" (as defined in Section 2.5 of the
     Sublease) of the Base Building Work and the Leasehold Improvement Work on
     or before  July 1, 2002, then Sublessee shall have the right, exercisable
     by notice to Sublessor given at any time while such failure persists, to
     terminate this Sublease; provided, however, if Sublessor fails to achieve
     Substantial Completion because of delays caused by the Sublessee, its
     agents, or employees ("Sublessee Delays"), Substantial Completion shall be
     deemed to have occurred as of the date that Sublessor could reasonably have
     been expected to achieve Substantial Completion absent any Sublessee
     Delays.  The construction deadline of  July 1, 2002 shall be extended one
     (1) day, up to a maximum of one hundred eighty (180) days, for each day of
     delay caused by (a) the occurrence of an event of "Force Majeure" as
     defined in Section 2.4 of the Sublease, or (b) Sublessee Delays.

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<PAGE>

5.   The total cost of the Leasehold Improvement Work as set forth in Exhibit 2
     is presently calculated  to be Three Million One Hundred Thousand and
     00/100 Dollars ($3,100.000.00) (the "LIW Cost"). Sublessor shall be
     obligated to pay for the entire cost of the Base Building Work and for the
     LIW Cost up to the LIW Allowance.  The LIW Allowance shall be One Million
     Eight Hundred Thousand and 00/100 Dollars ($1,800,000.00) (not the
     $2,436,486.00 provided for in Section 2.8 of the Sublease).  Sublessee
     shall be obligated to reimburse Sublessor for the cost of the Leasehold
     Improvement Work in excess of the LIW Allowance, up to an agreed maximum
     amount.  In the event of any cost overruns, Sublessor shall be obligated to
     pay for any costs of the Leasehold Improvement Work, in excess of the LIW
     Cost.  In the event that the LIW Allowance exceeds the actual cost of the
     Leasehold Improvement Work, any unused portion of the LIW Allowance shall
     be applied against rent first becoming due.  Based on current design of the
     Leasehold Improvement Work, the maximum amount payable by Sublessee is  One
     Million Three Hundred Thousand and 00/100 ($1,300,000.00) (the "Sublessee's
     Cost") (i.e., the difference between the LIW Cost and the LIW Allowance).
     Section 2.8 of the Sublease is hereby deleted in its entirety.  The
     Sublessee's Costs shall be paid by Sublessee in accordance with the
     provisions of Exhibit 3 hereto. The parties agree to work in good faith and
     with due diligence to finalize the design and pricing of revised Leasehold
     Improvement Work, and in any event to reach agreement thereon no later than
     October 15, 2001. At such time as the final design of the Leasehold
     Improvement Work has been agreed upon by the parties, in writing, the plans
     therefore shall be attached to and incorporated by reference into, the
     Sublease, and the Sublessee's Cost shall be recalculated. In the event that
     the parties are unable to agree on revised design and pricing for the
     Leasehold Improvement Work on or before October 15, 2001, the Leasehold
     Improvement Work shall be completed as originally contemplated in
     accordance with the design criteria established by existing plans and
     specifications on Exhibit 2A with the exception that the back half of the
     original second floor will, to the extent reasonably possible, be
     substantially provided for on the rear half of the third floor and the
     training rooms originally in the front left section of the first floor
     will, to the extent reasonably possible, be provided for on the right half
     of the first floor and the Sublessee's Cost shall be as stated above,
     ($1,300,000.00). Sublessee acknowledges that the value of the Stock and
     Warrant delivered to Sublessor pursuant to Paragraph 11 hereof shall not be
     credited against, or otherwise reduce, the obligation of Sublessee to pay
     the Sublessee's Cost.

6.   In light of the change in the Term Commencement Day set forth below,
     Sublessor shall have until April 25, 2002 to complete the Base Building
     and the LIW.

7.   Section 4.1 of the Sublease is deleted in its entirety and the following
     substituted therefore:

     "4.1.   The Base Rent due from Sublessee to Sublessor during the first year
     of Term hereof shall be calculated by multiplying the number of square feet
     included in the Subleased Premises by Fifteen and 75/100 Dollars ($15.75).
     For each year thereafter, the Base Rent due hereunder shall be increased by
     a percentage of the previous year's Base Rent, which percentage shall be
     the lesser of (a) five (5) times the increase in the Consumer Price Index
     for the  previous calendar year, or (b) Three and One Tenth Percent (3.1%).
     By way of example, the following Base Rent schedule has been calculated
     assuming that there are 62,000 square feet of space within the Subleased
     Premises, and that the annual increase is 3.1% for each year during the
     Term:

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<PAGE>

                                                         Per
                                         Annual        Rentable        Monthly
                           Year          Amount         Sq. Ft.        Payment
                   -------------------------------------------------------------
                              1     $   976,500.00      $15.75       $ 81,375.00
                   -------------------------------------------------------------
                              2     $ 1,006,771.50      $16.24       $ 83,897.63
                   -------------------------------------------------------------
                              3     $ 1,037,981.42      $16.74       $ 86,498.45
                   -------------------------------------------------------------
                              4     $ 1,070,158.84      $17.26       $ 89,179.90
                   -------------------------------------------------------------
                              5     $ 1,103,333.76      $17.80       $ 91,944.48
                   -------------------------------------------------------------
                              6     $ 1,137,537.11      $18.35       $ 94,794.76
                   -------------------------------------------------------------
                              7     $ 1,172,800.76      $18.92       $ 97,733.40
                   -------------------------------------------------------------
                              8     $ 1,209,157.59      $19.50       $100,763.13
                   -------------------------------------------------------------
                              9     $ 1,246,641.47      $20.11       $103,886.79
                   -------------------------------------------------------------
                             10     $ 1,285,287.36      $20.73       $107,107.28
                   -------------------------------------------------------------
                     Total          $11,246,169.81                   $937,180.82
                   -------------------------------------------------------------

     For the purposes of this Sublease, the term "Consumer Price Index" shall
     mean the Consumer Price Index (All Urban Consumers, All Cities Average)
     issued by the Bureau of Labor Statistics of the United States, for the
     period from the first (1st) day of such previous calendar  year through the
     last day of such previous year. In no event shall the Base Rent due
     hereunder in any year during the Term hereof be less than the Base Rent due
     during the immediately preceding year."

8.   The phrase "Term Commencement Date" as used throughout the Sublease shall
     mean the later of (a) May 1, 2002, or (b) the date that "Substantial
     Completion" of the Base Building Work and Leasehold Improvement Work
     occurs. If, however, the issuance of a Certificate of Occupancy is delayed
     because of Sublessee Delays, Substantial Completion shall be deemed to have
     occurred as of the date that the Sublessor could reasonably have been
     expected to achieve Substantial Completion absent any Sublessee Delays.

9.   Sublessor and Sublessee agree that the scope of the Base Building Work
     shall be reduced by the deletions and modifications listed on Exhibit 9
     attached hereto, including eliminating the flagpoles, patio, fitness
     center, sports court, and generator.

10.  Article 18 of the Sublease is deleted in its entirety and the following
     substituted therefore:

                                 "ARTICLE 18"

                             SECURITY AND DEFAULT

     18.1.  If Sublessee shall default in the payment of rent or other payments
     required of Sublessee hereunder, and if Sublessee shall fail to cure said
     default within seven (7) business days after receipt of written notice of
     said default from Sublessor (or if such notice shall adversely affect the
     rights of the Sublessor in any bankruptcy or receivership, then
     immediately); or if Sublessee shall default in the performance or
     observance of any other agreement or condition on its part to be performed
     or observed, and if Sublessee shall fail to

                                                                               4
<PAGE>

     cure said default within thirty (30) days after notice thereof or such
     longer period as shall be reasonably required so long as the Sublessee
     shall be diligently pursuing such cure after receipt of written notice of
     said default from Sublessor (or if such notice shall adversely affect the
     rights of the Sublessor in any bankruptcy or receivership, then
     immediately); or if any person shall levy upon, or take this leasehold
     interest or any part hereof, upon execution, attachment, or their process
     of law; or if Sublessee shall make an assignment of its property for the
     benefit of creditors; or if Sublessee shall file voluntary bankruptcy; or
     if any bankruptcy or insolvency proceedings shall be commenced by Sublessee
     or an involuntary bankruptcy shall be filed against the Sublessee which
     remains undischarged for a period of sixty (60) days; or if a receiver,
     trustee, or assignee shall be appointed for the whole or any part of the
     Sublessee's property (which events are referred to herein as "Defaults" or
     singularly as a "Default"), then in any of said cases, Sublessor lawfully
     then or at any time thereafter, and without further notice or demand, (a)
     enter into and upon the Subleased Premises, or any part hereof in the name
     of the whole, and hold the Subleased Premises as if this Sublease had not
     been made, and expel Sublessee and those claiming under it, and remove its
     or their property without being taken or deemed to be guilty of any manner
     of trespass whereupon the term of this Sublease shall terminate; or (b)
     send written notice of such termination to Sublessee, whereupon Sublessee
     shall immediately and forthwith vacate the Subleased Premises and deliver
     same to Sublessor in a good, clear and tenantable condition. Sublessee
     hereby expressly waives any and all rights of redemption granted by or
     under any present or future laws in the event of Sublessee being evicted or
     dispossessed for any cause, or in the event Sublessor terminates this
     Sublease as provided in this Article. The Sublessee shall be liable for a
     late payment fee equal to Five Percent (5%) of any amounts not paid within
     seven (7) business days of the date due under this Sublease.
     Notwithstanding the foregoing, or any other provision of this Sublease
     (including, without limitation the provisions of Article 29 below) upon the
     occurrence of a Default (including failure to timely pay Sublessee's Cost),
     Sublessor shall also be immediately entitled to (c) exercise any and all
     rights and remedies provided by law, including initiation of legal
     proceedings for eviction of Sublessee from the Subleased Premises and
     collection of all amounts due hereunder, and (d) exercise its rights under
     Section 18.2 below.

     18.2.  In case of such termination, at the sole option of Sublessor, either
     (a) Sublessee shall remain responsible and liable for all rents and payment
     obligations as the same become due during the remaining term of this
     Sublease, in which event, Sublessee shall pay Sublessor, on demand, all
     past due rent as the same become due, less any rents collected, plus all
     Costs of Reletting, or (b) Sublessee shall immediately  pay  to Sublessor
     an amount equal to the total rent that Sublessee would have been required
     to pay for the remainder of the Term discounted to present value at the
     Prime Rate (defined below) then in effect, minus the then full amount of
     the LC (as defined in Section 18.3).  Sublessor shall use reasonable
     efforts to relet the Subleased Premises for a term that may be greater or
     less than the balance of the Term and on such conditions (which may include
     concessions, free rent and alterations of the Subleased Premises) and for
     such uses as Sublessor in its absolute discretion shall determine.
     Sublessor may collect and receive all rents and other income from the
     reletting, but shall, if Sublessee has timely made the payment provided for
     in clause (b) of this Subsection, provide Sublessee with an annual
     accounting of such income, during the original Term of this Sublease and
     pay to Sublessee so much thereof as may be necessary to repay Sublessee up
     to, but no more than, the amount paid by Sublessee pursuant to this Section
     allocable to the year in which such income was received, less costs of
     Reletting.

                                                                               5
<PAGE>

     Sublessor shall not be responsible or liable for the failure to relet all
     or any part of the Subleased Premises or for the failure to collect any
     rent. "Costs of Reletting" shall include all costs and expenses incurred by
     Sublessor in reletting or attempting to relet the Subleased Premises,
     including, without limitation, reasonable legal fees, brokerage
     commissions, the cost of alterations and other concessions or allowances
     granted to a new tenant. For purposes hereof, the "Prime Rate" shall be the
     per annum interest rate publicly announced as its prime or base rate by a
     federally insured bank selected by Sublessor in the sate in which the
     Building is located.

     18.3.  Sublessee shall, on or before October 1, 2001, deliver to Sublessor
     an irrevocable letter of credit (the "LC") in the amount of Two Million and
     00/100 Dollars ($2,000,000.00) in the form of Exhibit LC attached hereto
     issued by Silicon Valley Bank or such other FDIC insured which has been
     approved in writing by Sublessor, such approval not to be unreasonably
     withheld.  The LC shall be held by Sublessor as security for the faithful
     performance by Sublessee of all terms, covenants and conditions of this
     Sublease.  Upon the occurrence of any event of Default which remains
     uncured after the expiration of any applicable notice and grace period,
     Sublessor may (but Sublessor shall not be required to) draw on said LC and,
     without prejudice to any other remedy, use all or a portion of the LC to
     satisfy past due rent or to cure any uncured default by Sublessee and shall
     further be entitled to retain the remaining proceeds of the LC as repayment
     by Sublessee to Sublessor for costs incurred by Sublessor to construct the
     Building in accordance with the special requirements of Sublessee.  If
     Sublessor transfers its interest in the Subleased Premises, Sublessor may
     assign the LC to the transferee and, following the assignment and
     acceptance of the LC by such transferee, Sublessor shall have no further
     liability for the return of the LC.  If Sublessor intends to assign
     Sublessor's interest in the Sublease, Sublessee shall, upon notice from
     Sublessor, deliver to Sublessor an amendment to the LC naming Sublessor's
     assignee as the beneficiary thereof.  Notwithstanding anything herein to
     the contrary, provided (i) Sublessee performs all of the terms, covenants
     and conditions of this Sublease to be kept and performed by Sublessee and
     (ii) Sublessee reports EBITDA profits averaging no less than One Million
     Five Hundred Thousand and 00/100 Dollars ($1,500,000.00) per quarter for 8
     consecutive fiscal quarters, including the fiscal quarter immediately
     preceding the effective date of any reduction of the LC, Sublessee shall
     have the right to reduce the amount of the LC to be as follows: (a) One
     Million Five Hundred Thousand and 00/100 Dollars ($1,500,000.00) effective
     as of any time on or after May 1, 2005; (b) One Million and 00/100 Dollars
     ($1,000,000.00) effective any time on or after May 1, 2007; and (c) Five
     Hundred Thousand and 00/100 Dollars ($500,000) effective any time on or
     after May 1, 2009.  Should Sublessee fail to satisfy such requirements on
     the aforementioned dates, Sublessee shall have the ability to qualify for
     such reductions by meeting the aforementioned requirements for any eight
     (8) consecutive fiscal quarters after the applicable date. For example, if
     Sublessee does not satisfy the financial requirement on or before May 1,
     2005, but does satisfy the financial requirement for the first time on or
     after May 1, 2007, the amount of the LC shall be reduced to One Million and
     00/100 Dollars ($1,000,000.00).  Additionally, Sublessee shall have the
     right to reduce the LC on a dollar-for-dollar basis for any gains
     recognized by the Sublessor in excess of Three Million and 00/100 Dollars
     ($3,000,000.00) from the sale of the Stock and/or the Warrant issued
     pursuant to Section 10 of this Second Amendment to Sublease.   Such
     reduction shall be accomplished by having Sublessee provide Sublessor with
     a substitute Letter of Credit in the reduced amount, and otherwise meeting
     all of the conditions set forth above.  If Sublessee

                                                                               6
<PAGE>

     provides Sublessor with a substitute Letter of Credit, Sublessor shall
     simultaneously return the original LC to Sublessee.

     Provided no Default under this Sublease has occurred, which remains uncured
     after the expiration of any applicable notice and grace period, the LC
     shall be returned to Sublessee thirty (30) days after the expiration of the
     original Term (or the extended Term if Sublessee exercised its option to
     extend the Term) of this Sublease.

11.  Sublessee shall issue to Sublessor one hundred thousand (100,000) shares of
     Sublessee's common stock (the "Stock") and a warrant to purchase one
     hundred thousand (100,000) additional shares of Sublessee's common stock at
     an exercise price of Four and 25/100 Dollars ($4.25) (the closing price of
     Sublessee's stock on September 18, 2001) (the "Warrant") as payment for
     Leasehold Improvements completed prior to the date hereof for the sole use
     of the Sublessee under the terms and conditions of the Sublease. Such Stock
     (and any of Sublessee's common stock purchased under the Warrant) will not
     be registered by Sublessee; provided, however, if at any time after
     eighteen (18) months from the date hereof, Sublessee otherwise elects to
     file a registration of Sublessee's common stock, Sublessee agrees to
     provide Sublessor with so-called "piggy back" registration rights for such
     stock. Neither the Stock nor any of Sublessee's common stock purchased
     under the Warrant, will be assignable or transferable without the prior
     written consent of Sublessee for a period of three (3) years from the date
     hereof except (a) for transfers or assignments to Members of Sublessor or
     such Members' immediate family (provided, however that any such Member or
     family member of a Member shall abide by the restrictions contained
     herein); and (b) in conjunction with an acquisition of one hundred percent
     (100%) of the ownership of Sublessee. The Warrant shall be in the form of
     Exhibit 10 attached hereto.

12.  Sublessee confirms and acknowledges that it is in its best interest, as
     well as the best interest of the Sublessor, that Sublessor obtain permanent
     mortgage financing for the property of which the Subleased Premises are a
     part, and thus agrees to cooperate with Sublessor (so long as Sublessee
     incurs no cost or liability) in obtaining such permanent financing by
     timely providing to any potential mortgagee copies of any publicly
     available information on the financial condition of Sublessee and the
     Certificates referenced in Article 20 of the Sublease. Sublessee also
     agrees that, in conjunction with any such financing, any amendments of this
     Sublease required by such mortgagee shall be subject to Sublessee's
     approval, not to be unreasonably withheld, provided no such amendment shall
     (a) change any financial terms of the Sublease; (b) make any material
     change to any of Sublessee's other rights and benefits under the Sublease;
     and (c) impose any additional cost or liability upon Sublessee.

13.  The Sublease, as amended by this Second Amendment, contains and sets forth
     the entire agreement and understanding of the parties hereto with respect
     to the subject matter contained herein, and supersedes and cancels all
     prior agreements, promises, covenants, arrangements, communications,
     representations or warranties, whether oral or written, with respect to the
     subject matter hereof made by either party, and/or their respective
     officers, directors, members, employees and agents, including, but not
     limited to, any and all claims of default made prior hereto by or against
     either of the parties hereto.

                                                                               7
<PAGE>

14.  In all other respects, except as herein amended, the parties ratify and
     confirm that the terms and provisions contained in the Sublease shall
     remain in full force and effect and continue to apply to and bind the
     parties.

     IN WITNESS WHEREOF, Sublessor and Sublessee have executed this Second
Amendment to Sublease effective as of the 19th day of September, 2001.

                              325 CORPORATE DRIVE II, LLC

                              By:____________________________
                              Its:____________________________

                              BOTTOMLINE TECHNOLOGIES, INC.

                              By:____________________________
                              Name: Daniel M. McGurl
                              Its:  Chief Executive Officer

STATE OF NEW HAMPSHIRE
COUNTY OF ROCKINGHAM

On this   _____ day of September, 2001, personally appeared ________________,
known to me (or proved to me on the basis of satisfactory evidence) to be the
____________________ of  325 CORPORATE DRIVE II, LLC, and on oath stated that he
was authorized to execute this instrument and acknowledged it to be his free and
voluntary act for the uses and purposes set forth herein.

     Before me,
                              ________________________________
                              Notary Public/Justice of the Peace
                              Name:___________________________
                              My Commission Expires:____________

STATE OF NEW HAMPSHIRE
COUNTY OF ROCKINGHAM

On this _____ day of September, 2001, personally appeared Daniel M. McGurl,
known to me (or proved to me on the basis of satisfactory evidence) to be the
Chief Executive Officer of BOTTOMLINE TECHNOLOGIES, INC. and on oath stated that
he was authorized to execute this instrument and acknowledged it to be his free
and voluntary act for the uses and purposes set forth herein.

     Before me,
                              ________________________________
                              Notary Public/Justice of the Peace
                              Name:___________________________
                              My Commission Expires:____________

                                                                               8
<PAGE>

                                   EXHIBIT 1

                 A PLAN OR PLANS SHOWING THE SUBLEASED PREMISES

                                                                               9
<PAGE>

                                  EXHIBIT 2A

                    A LIST OF FINAL PLANS AND SPECIFICATIONS
                           FOR THE BASE BUILDING WORK

                                                                              10
<PAGE>

                                  EXHIBIT 2

                A LIST OF THE EXISTING PLANS AND SPECIFICATIONS
                       FOR THE LEASEHOLD IMPROVEMENT WORK

                                                                              11
<PAGE>

                                   EXHIBIT 3

                         SCHEDULE OF SUBLESSEE PAYMENTS
                         FOR LEASEHOLD IMPROVEMENT WORK

     On each January 1, 2002 and April 1, 2002, Sublessee shall pay to Sublessor
Fifty Percent (50%) of the total Sublessee's Cost.

                                                                              12
<PAGE>

                                   EXHIBIT 9

               A LIST OF ITEMS EXCLUDED FROM BASE BUILDING WORK

FLAGPOLES,
PATIO,
FITNESS CENTER,
SPORTS COURT,
GENERATOR

TOTALING $350,000.00 IN EXCLUDED ITEMS.

                                                                              13
<PAGE>

                                  EXHIBIT 10

                                FORM OF WARRANT

Filed separately

                                                                              14
<PAGE>

                                   EXHIBIT LC

                            FORM OF LETTER OF CREDIT

                         STANDBY LETTER OF CREDIT DRAFT

IRREVOCABLE STANDBY LETTER OF CREDIT NO. SVB01ISXXXX

DATE:

BENEFICIARY:
______________________________________
______________________________________
______________________________________
______________________________________
AS "LANDLORD"

APPLICANT:
______________________________________
______________________________________
______________________________________
______________________________________
AS "TENANT"

AMOUNT: US$__________________ (XXXXXXXXXXX AND 00/100 U.S. DOLLARS)

EXPIRATION DATE: _______________, 2001

LOCATION: AT OUR COUNTERS IN SANTA CLARA, CALIFORNIA

DEAR SIR/MADAM:

WE HEREBY ESTABLISH OUR IRREVOCABLE STANDBY LETTER OF CREDIT NO. SVB01ISXXXX IN
YOUR FAVOR AVAILABLE BY YOUR DRAFTS DRAWN ON US AT SIGHT AND ACCOMPANIED BY THE
FOLLOWING DOCUMENTS:

1. THE ORIGINAL OF THIS LETTER OF CREDIT AND ALL AMENDMENT(S), IF ANY.
2. A DATED CERTIFICATION FROM THE BENEFICIARY SIGNED BY AN AUTHORIZED
   OFFICER, FOLLOWED BY ITS DESIGNATED TITLE, STATING THE FOLLOWING:

(A)  "THE AMOUNT REPRESENTS FUNDS DUE AND OWING TO US AS A RESULT OF THE
     APPLICANT'S FAILURE TO COMPLY WITH ONE OR MORE OF THE TERMS OF THAT CERTAIN
     LEASE BY AND BETWEEN (INSERT BENEFICIARY'S NAME), AS LANDLORD, AND (INSERT
     APPLICANT'S NAME), AS TENANT"
                                       OR
(B)  "WE HEREBY CERTIFY THAT WE HAVE RECEIVED NOTICE FROM SILICON VALLEY BANK
     THAT LETTER OF CREDIT NO. SVB01ISXXXX WILL NOT BE RENEWED, AND THAT WE HAVE
     NOT RECEIVED A REPLACEMENT OF THIS LETTER OF CREDIT FROM (INSERT
     APPLICANT'S NAME). SATISFACTORY TO US AT LEAST THIRTY (30) DAYS PRIOR TO
     THE EXPIRATION DATE OF THIS LETTER OF CREDIT."

PARTIAL DRAWS ARE ALLOWED. THIS LETTER OF CREDIT MUST ACCOMPANY ANY DRAWINGS
HEREUNDER FOR ENDORSEMENT OF THE DRAWING AMOUNT AND WILL BE RETURNED TO THE
BENEFICIARY UNLESS IT IS FULLY UTILIZED.

                                  PAGE 1 OF 3
<PAGE>

IRREVOCABLE STANDBY LETTER OF CREDIT NO. SVB01ISXXXX
DATED

DRAFT(S) AND DOCUMENTS MUST INDICATE THE NUMBER AND DATE OF THIS LETTER OF
CREDIT.

THIS LETTER OF CREDIT SHALL BE AUTOMATICALLY EXTENDED FOR AN ADDITIONAL PERIOD
OF ONE YEAR, WITHOUT AMENDMENT, FROM THE PRESENT OR EACH FUTURE EXPIRATION DATE
UNLESS AT LEAST SIXTY (60) DAYS PRIOR TO THE THEN CURRENT EXPIRATION DATE WE
NOTIFY YOU AND THE APPLICANT BY REGISTERED MAIL/OVERNIGHT COURIER SERVICE AT THE
ABOVE ADDRESSES THAT THIS LETTER OF CREDIT WILL NOT BE EXTENDED BEYOND THE
CURRENT EXPIRATION DATE. IN NO EVENT SHALL THIS LETTER OF CREDIT BE
AUTOMATICALLY EXTENDED BEYOND __________________.

THIS LETTER OF CREDIT MAY ONLY BE TRANSFERRED IN ITS ENTIRETY BY THE ISSUING
BANK UPON OUR RECEIPT OF THE ATTACHED "EXHIBIT A" DULY COMPLETED AND EXECUTED BY
THE BENEFICIARY AND ACCOMPANIED BY THE ORIGINAL LETTER OF CREDIT AND ALL
AMENDMENTS, IF ANY, WITH THE PAYMENT OF OUR TRANSFER FEE OF  1/4 OF 1% OF THE
TRANSFER AMOUNT (MINIMUM USD250.00).

ALL DEMANDS FOR PAYMENT SHALL BE MADE BY PRESENTATION OF  THE ORIGINAL
APPROPRIATE DOCUMENTS PRIOR TO 10:00 A.M. CALIFORNIA TIME, ON A BUSINESS DAY AT
OUR OFFICE (THE "BANK'S OFFICE") AT: SILICON VALLEY BANK, 3003 TASMAN DRIVE
SANTA CLARA, CA 95054, ATTENTION: STANDBY LETTER OF CREDIT NEGOTIATION SECTION
OR BY FACSIMILE TRANSMISSION AT: (408) 654-6211 OR (408) 496-2418; AND
SIMULTANEOUSLY UNDER TELEPHONE ADVICE TO: (408) 654-7120 OR (408) 654-3052),
ATTENTION: STANDBY LETTER OF CREDIT NEGOTIATION SECTION WITH ORIGINALS TO FOLLOW
BY OVERNIGHT COURIER SERVICE; PROVIDED, HOWEVER, THE BANK WILL DETERMINE HONOR
OR DISHONOR ON THE BASIS OF  PRESENTATION BY FACSIMILE ALONE, AND WILL NOT
EXAMINE THE ORIGINALS.

PAYMENT AGAINST CONFORMING PRESENTATIONS HEREUNDER SHALL BE MADE BY BANK DURING
NORMAL BUSINESS HOURS OF THE BANK'S OFFICE WITHIN TWO (2) BUSINESS DAYS AFTER
PRESENTATION

WE HEREBY AGREE WITH THE DRAWERS, ENDORSERS AND BONAFIDE HOLDERS THAT THE DRAFTS
DRAWN UNDER AND IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF THIS LETTER OF
CREDIT SHALL BE DULY HONORED UPON PRESENTATION TO THE DRAWEE, IF NEGOTIATED ON
OR BEFORE THE EXPIRATION DATE OF THIS CREDIT.

                                  PAGE 2 OF 3
<PAGE>

IRREVOCABLE STANDBY LETTER OF CREDIT NO. SVB01ISXXXX
DATED

THIS LETTER OF CREDIT IS SUBJECT TO THE UNIFORM CUSTOMS AND PRACTICE FOR
DOCUMENTARY CREDITS (1993 REVISION), INTERNATIONAL CHAMBER OF COMMERCE,
PUBLICATION NO. 500.

    ___________________________                          ____________________
    AUTHORIZED SIGNATURE                                 AUTHORIZED SIGNATURE

                                  PAGE 3 0F 3
<PAGE>

                         EXHIBIT "A"

DATE:

TO: SILICON VALLEY BANK
    3003 TASMAN DRIVE                   RE: STANDBY LETTER OF CREDIT
    SANTA CLARA, CA 95054                   NO.                     ISSUED BY
    ATTN: INTERNATIONAL DIVISION.           SILICON VALLEY BANK, SANTA CLARA
          STANDBY LETTERS OF CREDIT         L/C AMOUNT:

GENTLEMEN:

FOR VALUE RECEIVED, THE UNDERSIGNED BENEFICIARY HEREBY IRREVOCABLY TRANSFERS TO:

(NAME OF TRANSFEREE)
(ADDRESS)

ALL RIGHTS OF THE UNDERSIGNED BENEFICIARY TO DRAW UNDER THE ABOVE LETTER OF
CREDIT UP TO ITS AVAILABLE AMOUNT AS SHOWN ABOVE AS OF THE DATE OF THIS
TRANSFER.

BY THIS TRANSFER, ALL RIGHTS OF THE UNDERSIGNED BENEFICIARY IN SUCH LETTER OF
CREDIT ARE TRANSFERRED TO THE TRANSFEREE. TRANSFEREE SHALL HAVE THE SOLE RIGHTS
AS BENEFICIARY THEREOF, INCLUDING SOLE RIGHTS RELATING TO ANY AMENDMENTS,
WHETHER INCREASES OR EXTENSIONS OR OTHER AMENDMENTS, AND WHETHER NOW EXISTING OR
HEREAFTER MADE. ALL AMENDMENTS ARE TO BE ADVISED DIRECT TO THE TRANSFEREE
WITHOUT NECESSITY OF ANY CONSENT OF OR NOTICE TO THE UNDERSIGNED BENEFICIARY.

THE ORIGINAL OF SUCH LETTER OF CREDIT IS RETURNED HEREWITH, AND WE ASK YOU TO
ENDORSE THE TRANSFER ON THE REVERSE THEREOF, AND FORWARD IT DIRECTLY TO THE
TRANSFEREE WITH YOUR CUSTOMARY NOTICE OF TRANSFER.

SINCERELY,

_____________________________
  (BENEFICIARY'S NAME)

_____________________________
SIGNATURE OF BENEFICIARY

SIGNATURE AUTHENTICATED

____________________________
      (NAME OF BANK)

____________________________
 AUTHORIZED SIGNATURE

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