---

---

Exhibit 4.32

AMENDED AND RESTATED
SECOND OPTION AGREEMENT

This
AMENDED AND RESTATED SECOND OPTION  AGREEMENT (the  "Agreement"),  dated as of October 9,
2006, is made by and among CTI SQUARED LTD., a company incorporated under the laws of
Israel (CTI), AUDIOCODES LTD., a company incorporated under the laws
of Israel (AudioCodes) and each of the persons listed on Schedule A hereto and Schedule B hereto (collectively, the Shareholders).

# RECITALS

WHEREAS,
 the  Shareholders  listed on  Schedule A are record  owners of the issued and
 outstanding shares of CTI; and

WHEREAS,
CTI, AudioCodes, the Shareholders and Jonathan Sherman (the Escrow
Agent) are parties to that certain Second Option Agreement dated as of December
19, 2005 (the Prior Agreement and the Effective
Date, respectively); and

WHEREAS,
simultaneously with the execution and delivery of the Prior Agreement, CTI and AudioCodes
have entered into a Share Purchase Agreement (the SPA); and

WHEREAS,
as a condition to entering into the SPA, AudioCodes wished to secure an option to purchase
all of the issued and outstanding shares of CTI (the Shares), upon the
terms and subject to the conditions set forth herein; and

WHEREAS,
in order to induce AudioCodes to enter into the SPA, CTI and each of the Shareholders
entered into the Prior Agreement; and

WHEREAS,
the parties desire to consummate the transaction in such manner, that immediately after
the acquisition of the Shares by AudioCodes from the Shareholders, AudioCodes shall become
the sole and exclusive owner of all the Shares; and

WHEREAS,
the Board of Directors of each of AudioCodes and CTI believes it is in the best interests
of its respective company and shareholders to amend and restate the Prior Agreement and,
in furtherance thereof, has approved this Agreement and the transactions contemplated
hereby; and

WHEREAS
the Prior Agreement provides that the terms thereof may be amended only with the written
consent of CTI, AudioCodes and the Majority Shareholders (as defined herein) (the
Required Majority), and the undersigned parties constitute the Required
Majority; and

WHEREAS
the parties desire to make certain representations, warranties, covenants and other
agreements in connection with the transactions contemplated hereby;

NOW,
THEREFORE, in consideration of the covenants and representations set forth herein, and for
other good and valuable consideration, the parties agree that the Prior Agreement is
hereby amended and restated as follows:



---

---



# ARTICLE I

# DEFINITIONS

Any capitalized term used and not
otherwise defined in this Agreement, shall have the following meaning:

| | Action means
any legal, administrative, governmental or regulatory proceeding or other action, suit,
proceeding, claim, arbitration, mediation, alternative dispute resolution procedure,
inquiry or investigation by or before any arbitrator, mediator, court or other
governmental entity.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Convertible
Securities means any and all options, warrants, bonds, debentures, notes,
indebtedness of any type whatsoever or other securities, that are convertible into,
exchangeable or exercisable for shares or other capital stock of CTI or that have the
right to vote on any matters on which any shareholders of CTI may vote.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Damages means
any and all direct losses, liabilities, claims, deficiencies, fines, payments, taxes,
costs and expenses (including all amounts paid in connection with any demands,
assessments, judgments, settlements and compromises relating thereto; interest and
penalties with respect thereto; and costs and expenses, including reasonable attorneys,
accountants and other experts fees and expenses, incurred in investigating,
preparing for or defending against any such Actions or in asserting, preserving or
enforcing an Indemnified Partys rights hereunder), calculated net of actual
recoveries under existing insurance policies (net of any applicable collection costs and
reserves, deductibles, premium adjustments and retrospectively rated premiums), all if
directly caused by any breach of representations, warranties and covenants of this
Agreement, and excluding any indirect or consequential damage, including lost profits,
loss of opportunities, damage to reputation etc.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | First
Option has the meaning ascribed to it in the SPA.
| | ---------------------------------------------------------

| | Indemnified
Person means AudioCodes and its officers, directors, agents and employees, and
each person, if any, who controls or may control AudioCodes.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------

| | Liability means
any and all claims, debts, obligations and commitments of whatever nature, whether
asserted or reasonably expected to be asserted, fixed, absolute or contingent, matured or
unmatured, accrued or unaccrued, liquidated or unliquidated or due or to become due, and
whenever or however arising (including those arising out of any contract or tort, whether
based on negligence, strict liability or otherwise) regardless of whether the same would
be required by GAAP to be reflected as a liability in financial statements or disclosed
in the notes thereto.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Lien means
any charge, claim, equitable interest, lien, encumbrance, option, proxy, pledge, security
interest, attachment, mortgage, right of first refusal, right of preemption, transfer or
retention of title agreement, or restriction by way of security of any kind or nature,
including any restriction on use, voting, transfer, receipt of income or exercise of any
other attribute of ownership.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Person means
any individual, firm, partnership, joint venture, trust, corporation, limited liability
entity, unincorporated organization, estate or other entity (including a governmental
entity).
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



---

---



| | Shares means
issued and outstanding shares of CTI.
| | ----------------------------------------------------

Section
1.2. Terms Generally. The definitions in Section 1.1 shall
apply equally to both the singular and plural forms of the terms defined. Whenever the
context may require, any pronoun shall include the corresponding masculine, feminine and
neuter forms. The words include, includes and including shall
be deemed to be followed by the phrase without limitation. The words herein,
hereof and hereunder and words of similar import refer to this
Agreement in its entirety and not to any part hereof unless the context shall otherwise
require. All references herein to Articles, Sections, Exhibits and Schedules shall be
deemed references to Articles and Sections of, and Exhibits and Schedules to, this
Agreement unless the context shall otherwise require. Any reference in this Agreement to
a day or a number of days (without explicit reference to Business
Days) shall be interpreted as a reference to a calendar day or number of calendar
days. If any action is to be taken or given on or by a particular calendar day, and such
calendar day is not a Business Day, then such action may be deferred until the next
Business Day.

# ARTICLE II

# SECOND OPTION

Section
2.1. Grant of Option to Purchase Shares. Upon the terms and subject to the
conditions set forth herein, each of the Shareholders hereby grants AudioCodes an option
to purchase all of the Shares of CTI currently held and that will be held by such
Shareholder prior to the Closing Date for the consideration and on the other terms and
conditions set forth below (the Second Option).

Section
2.2 Term. The Second Option shall have a term, commencing on the Effective Date and
ending on January 31, 2007 (the Option Period).

Section
2.3. Exercise of Option.

| | (a)        In
the event that AudioCodes elects to exercise the Second Option at any time
          during the Option Period, it shall deliver to CTI an exercise notice setting
out           its intent to exercise the Second Option (the Exercise
          Notice). Within seven (7) business days after the receipt of the
          Exercise Notice, CTI will deliver to the Shareholder Committee (as defined in
          Section 9.6 below) and each of the Shareholders and holders of outstanding
          options, warrants and rights to acquire share capital of CTI, a copy of the
          Exercise Notice, along with such instruments and instructions regarding any
          actions on the part of such notice recipients that may be appropriate under the
          circumstances, in form and substance reasonably satisfactory to AudioCodes.
Each           Shareholder agrees that such notice shall be deemed to be in full
satisfaction           of any right to receive notice that such Shareholder may have
under any           agreement or instrument whatsoever, including without limitation the
Articles of           Association of CTI, and such Shareholder waives any such other
notice           requirement.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b)        The
date of the closing of the sale and purchase of the Shares and the payment           by
AudioCodes for the Shares shall be February 28, 2007 (the           Closing and
the Closing Date).
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



---

---



Section
2.4 Effect of Expiration. In the event of termination of this Agreement at the sole
discretion of AudioCodes or expiration of the Second Option without delivery of Exercise
Notice in a timely manner, each party hereto, its affiliates, directors, officers and
shareholders shall be released from any and all obligations or undertaking under this
Agreement or any exhibits hereto except for obligations regarding confidentiality, and no
party shall have any liability to another hereunder.

# ARTICLE III

# DEPOSIT OF SHARES

In
order to ensure the performance of the Second Option, upon the Effective Date, each
Shareholder shall deliver the original share certificates representing its Shares and any
original warrant certificates or agreements (Share Certificates) to the
Shareholder Committee, together with duly executed, undated share transfer deeds in
respect thereof, provided that such documents shall not be effective or create any
AudioCodes rights until they are delivered to AudioCodes pursuant to the terms hereof. In
the event that a Shareholder lost a share certificate issued to it or believes it was
never issued a share certificate, such Shareholder may discharge its aforesaid obligation
to deliver the original share certificate by executing a lost certificate affirmation in a
form reasonably satisfactory to AudioCodes.

# ARTICLE IV

# PURCHASE AND SALE OF
SHARES

Section 4.1. Purchase
and Sale of Shares. Subject to the terms and conditions of this Agreement,
Shareholders will at the Closing transfer to AudioCodes all their Shares free and clear of
all Liens, and AudioCodes will purchase and acquire from Shareholders at the Closing all
such Shares, in such manner that immediately after such acquisition, AudioCodes shall
become the sole and exclusive owner of all the Shares and of all the issued and
outstanding shares of CTI. In the event that not all shareholders of CTI voluntarily
become parties to this Agreement, CTI and the Shareholders shall take all necessary
actions to cause the Shares of such other shareholders to be transferred to AudioCodes
under the terms of this Agreement, by way of a forced sale under the terms of Section 341
of the Israeli Companies Law, 1999.

Section
4.2. Consideration. The aggregate payment for the Shares will be (a) five million
United States Dollars in cash, to be paid by AudioCodes on the Closing Date (the
First Installment); and (b) five million United States Dollars in cash
(the Second Installment), to be paid by AudioCodes on February 28, 2008
(the Second Installment Date) (the First Installment and Second
Installment together shall be referred to as the Payment).

Section
4.3. The Registration Rights Agreement attached as Exhibit A to the Prior Agreement is
hereby cancelled.



---

---



Section
4.4 Payment to Distribution Trustee. On the terms and subject to the conditions set
forth in this Agreement, as full payment for the transfer of all of the outstanding shares
by Shareholders to AudioCodes as of and at the Closing, AudioCodes shall transfer to the
Distribution Trustee (as defined in Section 9.6) for the benefit of the Shareholders and
holders of options, warrants and any other rights to acquire share capital of CTI, the
First Installment at the Closing Date and the Second Installment at the Second Installment
Date.

Section
4.5 Withholding. AudioCodes shall be entitled to withhold from the Payment any
amounts required to be withheld pursuant to applicable tax laws or pursuant to reduced
rates in accordance with withholding certificates provided to it (not including any
applicable stamp tax as a result of this Agreement), provided that, to the extent legally
possible, AudioCodes will not withhold any such amount but shall transfer to the
Distribution Trustee the entire gross Payment and the Distribution Trustee shall be
responsible for withholding applicable taxes when further distributing such Payment. In
addition, AudioCodes shall withhold 50% of the amounts payable to Ross Road Partners LLC
(RRP) pursuant to Section 4.6.

Section
4.6 Brokers Fees and Stamp Tax. AudioCodes shall pay RRP directly any brokerage fee
to which RRP are entitled in accordance with the agreement between RRP and CTI of July 21,
2004. AudioCodes shall be responsible for any stamp tax imposed by the Israeli tax
authorities as a result of this Agreement.

Section
4.7 Effect of Exercise. As of the Closing, CTI shall record AudioCodes in its
shareholder register as the sole shareholder of CTI and take any other necessary action in
order to give full force and effect to the Second Option, and the parties hereto agree
that all options, warrants and any other rights to acquire share capital of CTI that have
not been exercised on or prior to the Closing shall terminate. For the avoidance of doubt,
the Payment shall constitute the aggregate amount payable by AudioCodes for all the
outstanding share capital of CTI and all options, warrants or other rights to acquire such
share capital (other than for shares of CTI held by AudioCodes or issued under the terms
of the SPA or the First Option).

# ARTICLE V

# INDEMNITY FUND

Section
5.1 Indemnity Fund. To ensure payment for any breach of representations, warranties
and covenants of this Agreement and the transfer of all outstanding Shares of CTI to
AudioCodes, an amount of $2,500,000 (two million five hundred thousand dollars) out of the
Second Installment shall be available to indemnify and hold harmless any Indemnified
Person from and against any and all Damages that may be recoverable under Article X (the
Indemnity Fund). In determining the amount of any Damages in respect of
the failure of any representation or warranty to be true and correct as of any particular
date, any materiality qualification contained in such representation or warranty shall be
disregarded.



---

---



Section
5.2 Period for Claims Against Indemnity Fund. The period during which claims for
Damages may be made against the Indemnity Fund shall commence at the Closing and terminate
on the Second Installment Date (the Indemnity Period). Notwithstanding
anything contained herein to the contrary, such portion of the Indemnity Fund at the
conclusion of the Indemnity Period necessary to satisfy any unresolved or unsatisfied
claims for Damages specified in any Officers Certificate delivered to the
Shareholder Committee prior to expiration of the Indemnity Period with respect to facts
and circumstances existing prior to the expiration of the Indemnity Period shall remain in
the Indemnity Fund until such claims have been resolved or satisfied pursuant to Article
X. Furthermore, if any Share Certificates, together with duly executed share transfer
deeds in favor of AudioCodes in respect thereof (or certifications of lost certificates),
shall not have been delivered by any shareholder of CTI (Dissenting
Shareholder) to AudioCodes prior to the end of the Indemnity Period, then
AudioCodes shall withhold the Indemnity Fund, unless a proceeding for a forced sale of
Shares in favor of AudioCodes shall have been previously concluded, under the terms of
Section 341 of the Israeli Companies Law, 1999, and if so, AudioCodes shall withhold any
portion of the Indemnity Fund at the conclusion of the Indemnity Period necessary to
satisfy any unresolved or unsatisfied claims by such Dissenting Shareholders. The
remainder of the Indemnity Fund, if any, shall be paid on the Second Installment Date to
the Distribution Trustee.

Section
5.3 Claims.

On or before the last day of the
Indemnity Period, AudioCodes may deliver to the Shareholder Committee a certificate signed
by any officer of AudioCodes (an Officers Certificate) stating
that an Indemnified Person has incurred, paid or accrued Damages or that an Indemnified
Person reasonably anticipates that it may incur, pay or accrue, Damages prior to the
expiration of the statute of limitations for such matters, stating (A) the amount of such
Damages; (B) specifying in reasonable detail (based upon the information then possessed by
AudioCodes) the individual items of such Damages included in the amount so stated and the
basis of the claim for indemnification to which such Damages are related. After the
expiration of a 30-day period from the date of receipt by the Shareholder Committee of the
Officers Certificate, the amount set forth in the Officers Certificate shall
be deducted from the Indemnity Fund and from the Second Installment; provided,
however, that if and to the extent the Shareholder Committee shall object in a
written statement to any claim or claims made in the Officers Certificate, and such
statement shall have been delivered to AudioCodes prior to the expiration of such 30
 day period, the parties shall follow the procedures set forth in Section 5.4. If
there is no Officers Certificate timely delivered by AudioCodes and no Dissenting
Shareholder holdbacks as above described, the remainder of the Indemnity Fund, if any,
shall be paid to the Distribution Trustee on the Second Installment Date as part of the
Second Installment.

Section
5.4 Resolution of Objections to Claims.

| | (a)
 If the Shareholder Committee objects in writing to any claim or claims by
          AudioCodes made in any Officers Certificate within such 30  day
          period, AudioCodes and the Shareholder Committee shall attempt in good faith
for           20 days after AudioCodes receipt of such written objection to resolve
such           objection. If AudioCodes and the Shareholder Committee shall so agree, a
          memorandum setting forth such agreement shall be prepared and signed by both
          parties and each of AudioCodes and the Shareholder Committee hereby agree to
          promptly act in accordance with the terms of the memorandum regarding amounts
          withheld (if any) from the Second Installment, which shall bind all parties to
          this Agreement.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



---

---



| | (b)
 If no such agreement can be reached during the 20-day period for good faith
          negotiation, but in any event upon the expiration of such 20-day period,
          AudioCodes and the Shareholder Committee shall mutually designate an arbitrator
          to resolve the dispute (Arbitrator). In case no timely
          agreement can be reached on the Arbitrators appointment, the competent
          court of Tel Aviv-Jaffa will be asked to designate an arbitrator. The
          determination of the Arbitrator shall be final and binding on the parties as to
          the validity and amount of any claim in such Officers Certificate and
          shall be nonappealable and conclusive upon the parties to this Agreement. The
          parties to this Agreement hereby agree to submit the dispute to the Arbitrator
          and to act in accordance with such decision.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

(c)
 Judgment upon any award rendered by the Arbitrator may be entered in any court
          having jurisdiction.

# ARTICLE VI

# CLOSING

Section 6.1. Closing
Deliveries of Shareholders and CTI. At the Closing, Shareholders and CTI,
as applicable, will deliver to AudioCodes the following:

(i)        The
Shareholder Committee shall deliver Share Certificates registered in the           name
of Shareholders (or lost certificate affirmations, if applicable),           representing
all of the Shares to be sold and transferred to AudioCodes,           accompanied by a
duly executed share transfer deed in form reasonably           satisfactory to
AudioCodes, transferring the Shares to AudioCodes (and, if           requested by
AudioCodes, with signatures thereon duly verified) and any other           documents
(including the executed notice to the Registrar of Companies for the           State of
Israel, ready for filing) that are necessary to transfer to AudioCodes           good and
valid title to the Shares, free and clear of any Liens;

(ii)        A
true copy of the register of shareholders of CTI certified by an officer of           CTI
recording the transfer of the Shares in the name of AudioCodes;

(iii)        Duly
signed resignations of all directors of CTI and of all members of all CTI           board
of directors committees in the forms set forth in Schedule           6.1,
other than the director(s) appointed by AudioCodes;

(iv)        Legal
opinion from CTIs legal counsel, in the form of Exhibit B          hereto.

Section 6.2. Closing
Deliveries of AudioCodes. At the Closing, AudioCodes will pay to the
Distribution Trustee the First Installment.

Section 6.3.
Taxes. CTI shall bear and pay any and all use, VAT, duty,
          charge, fee, levy, consumption and other Israeli transfer taxes arising out of
          the transfer of the Shares to AudioCodes, if any (excluding any taxes on income
          or capital gains on such sale) pursuant hereto. AudioCodes shall bear any stamp
          tax with respect to the transfer of the Shares to AudioCodes. To the extent any
          tax authority provides notice to AudioCodes of an audit of the taxes,
AudioCodes           shall promptly notify the Shareholder Committee and the Shareholder
Committee           shall provide reasonable cooperation to AudioCodes (at AudioCodes expense)
          in connection with such audit. For the avoidance of doubt, each Shareholder or
          recipient of any portion of the Payment shall bear and pay its own income or
          capital gains taxes on this transaction.



---

---



# ARTICLE VII

# REPRESENTATIONS AND
WARRANTIES OF SHAREHOLDERS; GENERAL RELEASE

Each
Shareholder hereby represents and warrants to AudioCodes and acknowledges that AudioCodes
is entering into the transaction in reliance hereon that, except as stated in Exhibit
C hereto, which representations and warranties shall be true and complete as of the
Effective Date and as of the Closing:

Section 7.1. Organization
and Authority.   If Shareholder is not an individual, then it is
duly organized, validly existing and in good standing under the laws of its jurisdiction
of incorporation or organization. Shareholder has all requisite power and authority,
corporate or otherwise, to execute and deliver each document delivered or to be delivered
by Shareholder and to perform all of its obligations hereunder and thereunder. The
execution, delivery and performance by Shareholder of each document delivered or to be
delivered by Shareholder and the consummation by Shareholder of the Second Option have
been duly authorized by all necessary and proper action on the part of Shareholder. This
Agreement has been duly executed and delivered by Shareholder and constitutes the legal,
valid and binding obligation of Shareholder, enforceable against Shareholder in accordance
with its terms, except as such enforceability may be limited by bankruptcy, insolvency,
reorganization, moratorium or similar laws relating to or affecting the enforcement of
creditors rights in general and by general principles of equity. Each document to be
delivered by Shareholder will be duly executed and delivered by Shareholder and, when so
executed and delivered, will constitute the legal, valid and binding obligation of
Shareholder, enforceable against Shareholder in accordance with its terms, except as such
enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or
similar laws relating to or affecting the enforcement of creditors rights in general
and by general principles of equity.

Section 7.2. Noncontravention.         None
of the execution, delivery or performance by Shareholder of any document or           the
consummation by Shareholder of the Second Option does or will, with or           without
the giving of notice or the lapse of time or both, conflict with, or           result in
a breach or violation of, or a default under, or give rise to a right           of
amendment, termination, cancellation or acceleration of any obligation or to           a
loss of a benefit under (i) the charter, bylaws or memorandum and           articles
of association (or similar governance documents) of Shareholder,           (ii) any
contract of Shareholder (other than contracts required to be           terminated
pursuant to the terms of this Agreement), or (iii) any law,           license and
permit to which Shareholder or its properties or assets is subject.



---

---



Section 7.3. Title
to Shares/No Convertible Securities. Shareholder has good and valid title
to, and is the legal and beneficial owner of, the number of Shares as set forth opposite
its name in Schedule A and the number of warrants or options set forth inSchedule B, which constitute all of the issued and outstanding shares of CTI to which
such Shareholder is entitled, and, as of the Closing will have good and valid title to,
and will be the legal and beneficial owner of, such Shares set forth on Schedule A and Schedule B, and the transfer of such Shares pursuant to this Agreement
shall be free and clear of any Liens. In the transfer of Shares to AudioCodes, the Shares
held by Shareholder shall be free and clear of any Liens. Upon transfer and delivery to
AudioCodes at the Closing, AudioCodes will have good and valid title to the Shares held by
the Shareholder free and clear of any Liens. The number of Shares set forth on
Schedule A and Schedule B constitutes all of the Shares over which any
voting or dispositive power is held by Shareholder, and Shareholder does not own,
beneficially or otherwise, directly or indirectly, any other capital stock or share
capital of, or other securities, or any Convertible Securities, equity or any other
ownership interest in CTI. As of the Closing, there are no (i) outstanding options,
warrants, purchase rights, subscription rights, conversion rights, exchange rights,
Convertible Securities or other similar contracts relating to such Shareholders
Shares, (ii) outstanding stock appreciation, phantom stock, profit participation or
similar rights with respect to such Shareholders Shares, (iii) voting trusts,
proxies, or other contracts or understandings with respect to the voting of such
Shareholders Shares, (iv) transfer restrictions with respect to such
Shareholders Shares (other than any securities laws generally applicable to equity
interests of an Israeli company), or (v) Actions pending or, to such Shareholders
knowledge, threatened, which, if determined adversely to Shareholder or CTI, would enjoin,
restrict or prohibit the transfer of all or any part of such Shareholders Shares as
contemplated by this Agreement. Schedule A and Schedule B shall be updated
by a written notice by CTI to AudioCodes in the event of any change in the capitalization
of CTI and the Shareholders whose holdings have been changed shall confirm in writing that
their representation in this Section 7.3 relates to such new updated schedule.

Section 7.4. Third
Party Approvals. No consent or order of, with or to any governmental entity
or any other third party, is required to be obtained or made by or with respect to
Shareholder in connection with the execution, delivery and performance by Shareholder of
this Agreement or the consummation by such Shareholder of the Second Option, which consent
has not been obtained.

Section 7.5. BrokersFees. Neither Shareholder nor any of its affiliates has authorized or retained any
Person to act as an investment banker, broker, finder or other intermediary who is or
might be entitled to any fee, commission or payment in connection with the negotiation,
preparation, execution or delivery of the Second Option, nor is there any basis for any
such fee, commission or payment to be claimed by any Person against Shareholder.

Section 7.6 Deleted.

Section
7.7 No Claim to Unavailability of Information. Shareholder shall not
assert any claim or institute any action or proceeding relating to or based, in whole or
in part, upon any allegation that any information relating to CTI, or the Shares was
unavailable to it.

Section
7.8 General Release. Each Shareholder (on behalf of itself and its
heirs, executors, administrators, successors or assigns) hereby releases, acquits and
forever discharges AudioCodes, CTI and their present and former officers, directors,
shareholders, employees, agents, attorneys, subsidiaries, affiliates, partners, joint
venturers and successors and assigns (the Released Parties) and
covenants not to sue or otherwise institute or cause to be instituted or in any way
participate in any legal or other proceedings or actions against any Released Party with
respect to any matter whatsoever arising out of such Shareholders investment in, or
ownership of, CTI Shares, including, but not limited to, (i) any liquidation right or
preference under the Articles of Association of CTI or any agreement or otherwise,
including without limitation any liquidation right or preference exercisable with respect
to the transactions contemplated by this Agreement, (ii) any right of first refusal or any
other right such Shareholder may have for acquiring the Shares subject to this Agreement
and any right to receive prior notice of such acquisition, and (iii) any and all manner of
action, cause of action, demands, damages and Liabilities, which Shareholder ever had, now
has, or shall have against CTI or any other Person referred to above, arising out of any
matters, causes, acts, conduct, claims, circumstances or events occurring or failing to
occur or conditions existing at or prior to the execution of this Agreement. For the
avoidance of doubt, the aforesaid release shall not relate to covenants stated in this
Agreement or between Shareholders, in connection with any agreements between Shareholders
relating to the distribution of the Payment among them that are entered into
contemporaneously or following the execution of this Agreement.



---

---



CTI
(on behalf of itself and its heirs, executors, administrators, successors or assigns)
hereby releases, acquits and forever discharges each Shareholder and such
Shareholders present and former officers, directors, shareholders, employees,
agents, attorneys, subsidiaries, affiliates, partners, joint venturers and successors and
assigns (the Shareholder Released Parties) and covenants not to
sue or otherwise institute or cause to be instituted or in any way participate in any
legal or other proceedings or actions against any Shareholder Released Party arising out
of any matters, causes, acts, conduct, claims, circumstances or events occurring or
failing to occur or conditions existing at or prior to the execution of this Agreement
that relate to, or are in connection with, such Shareholders investment in, or
ownership of, CTI Shares. For the avoidance of doubt, the aforesaid release shall not
relate to covenants stated in this Agreement or any ancillary document thereto.

# ARTICLE VIII

# REPRESENTATIONS AND
WARRANTIES OF CTI

CTI
hereby represents to AudioCodes as of the Effective Date and will represent and warrant to
AudioCodes as of the Closing, by delivery to AudioCodes of an officers certificate
signed by the chief executive officer of CTI on behalf of CTI and dated the Closing Date
provided that for purposes of such representations, Schedule A and
Schedule B hereto shall be amended to be current as of the date of the Closing, as
follows:

Section
8.1 Outstanding Shares and Convertible Securities. The Shares set forth on
Schedule Ahereto represent in the aggregate all of the issued and outstanding
share capital of CTI. Set forth on Schedule B hereto is a complete and correct list
of the number and class of shares of CTI subject to outstanding options, warrants or other
rights to purchase or receive share capital of CTI.

Section
8.2 SPA Representations and Warranties. All of the representations and warranties
made by CTI in the SPA were true and correct as the date of the closing of the SPA.

Section
8.3 Additional Representations of CTI.

| | (a)
               This Agreement has been duly authorized by all necessary corporate action
on the                part of CTI, has been executed by a duly authorized officer of CTI
and delivered                by CTI, and, assuming due authorization, execution and
delivery by AudioCodes                and each Shareholder, this Agreement constitutes a
legal, valid and binding                obligation of CTI, enforceable against CTI in
accordance with its terms.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



---

---



| | (b)
               Neither the execution and delivery of this Agreement by CTI nor the
consummation                by CTI of the transactions contemplated hereby will violate
or result in any                violation of or be in conflict with, or constitute a
default under, or require                any consent, approval or notice under, any term
of the Articles of Association                of CTI or of any judgment, decree, order,
statute, rule or governmental                regulation applicable to CTI, or any term of
any agreement or other instrument                to which CTI is a party or by which CTI
is bound, which consent has not been                obtained.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c)
               CTIs shareholders have approved this Agreement and all of the
transactions                contemplated hereby in accordance with applicable law and the
Articles of                Association of CTI, by the requisite shareholder vote and by
the requisite class                vote.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (d)
               Except as set forth in the attached Schedule AandSchedule
               B, (i) no person owns of record or is known to CTI to own
               beneficially any shares of CTI, (ii) no subscription, warrant, option,
               convertible security, or other right (contingent or other) to purchase or
               otherwise acquire from CTI equity securities of CTI is authorized or outstanding
               and (iii) there is no commitment by CTI to issue shares, subscriptions,
               warrants, options, convertible securities, or other such rights or to distribute
               to holders of any of its equity securities any evidence of indebtedness or
               asset. Except as provided for in the Articles of Association, CTI has no
               obligation (contingent or other) to purchase, redeem or otherwise acquire any of
               its equity securities or any interest therein or to pay any dividend or make any
               other distribution in respect thereof.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# ARTICLE VIII-A

# REPRESENTATIONS AND
WARRANTIES OF AUDIOCODES

AudioCodes
hereby represents and warrants to CTI and the Shareholders as of the Effective Date and as
of the Closing, and acknowledges that CTI and the Shareholders are entering into the
transaction in reliance hereon that as follows:

Section
8A.1 Organization and Authority. AudioCodes is duly organized,
validly existing and in good standing under the laws of its jurisdiction of incorporation
or organization. AudioCodes has all requisite power and authority, corporate or otherwise,
to execute and deliver each document delivered or to be delivered by AudioCodes and to
perform all of its obligations hereunder and thereunder. The execution, delivery and
performance by AudioCodes of each document delivered or to be delivered by AudioCodes and
the consummation by AudioCodes of the Second Option have been duly authorized by all
necessary and proper action on the part of AudioCodes. This Agreement has been duly
executed and delivered by AudioCodes and constitutes the legal, valid and binding
obligation of AudioCodes, enforceable against AudioCodes in accordance with its terms,
except as such enforceability may be limited by bankruptcy, insolvency, reorganization,
moratorium or similar laws relating to or affecting the enforcement of creditors
rights in general and by general principles of equity. Each document to be delivered by
AudioCodes will be duly executed and delivered by AudioCodes and, when so executed and
delivered, will constitute the legal, valid and binding obligation of AudioCodes,
enforceable against AudioCodes in accordance with its terms, except as such enforceability
may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws
relating to or affecting the enforcement of creditors rights in general and by
general principles of equity.



---

---



Section
8A.2. Noncontravention.           None of the execution, delivery or
performance by AudioCodes of any document or           the consummation by AudioCodes of
the Second Option does or will, with or           without the giving of notice or the
lapse of time or both, conflict with, or           result in a breach or violation of, or
a default under, or give rise to a right           of amendment, termination,
cancellation or acceleration of any obligation or to           a loss of a benefit under
(i) the charter, bylaws or memorandum and           articles of association (or
similar governance documents) of AudioCodes,           (ii) any contract of
AudioCodes, or (iii) any law, license and permit           to which AudioCodes or
its properties or assets is subject.

Section 8A.3. Third
Party Approvals. No consent or order of, with or to any governmental entity
or any other third party, is required to be obtained or made by or with respect to
AudioCodes in connection with the execution, delivery and performance by AudioCodes of
this Agreement or the consummation by AudioCodes of the Second Option, which consent has
not been obtained.

# ARTICLE IX

# CONDUCT DURING OPTION
PERIOD

Section
9.1 Conduct of Business of CTIAs of the Effective Date, CTI shall, and the
Shareholders shall vote their shares (should the matter be brought before the
Shareholders) to cause CTI to (except to the extent expressly contemplated by this
Agreement or the SPA) (i) subject to availability of funds, carry on its business in
the usual, regular and ordinary course in substantially the same manner as heretofore
conducted, (ii) subject to availability of funds, pay all of its debts and taxes when
due, subject to good faith disputes over such debts or taxes, (iii) subject to
availability of funds, pay or perform its other obligations when due, subject to good
faith disputes over such obligations, and (iv) subject to availability of funds, use
all commercially reasonable efforts consistent with past practice and policies to preserve
intact its present business organizations, keep available the services of its key
employees and preserve its relationships with material customers, suppliers, distributors,
licensors, licensees, and others having business dealings with it. CTI shall promptly
notify AudioCodes of any event not known to AudioCodes which it reasonably expects to have
a material adverse effect on CTI.

Section
9.2 Restriction on Conduct of Business of CTI

During
the period commencing on the date of exercise in full of the First Option and until the
earlier of the Closing Date if AudioCodes has timely delivered the Exercise Notice and the
termination of this Agreement (First Option Period), except as
expressly contemplated by this Agreement, CTI shall not do, cause or, to the extent such
matter is within the control of CTI, permit any of the following (nor shall the
Shareholders permit, to the extent such matter is brought to the vote of the
Shareholders):

| | (a)
          any declaration or payment of any dividends on or any making of any other
          distributions (whether in cash, stock or property), or any repurchase or other
          acquisition, directly or indirectly, of any shares of CTI;
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



---

---



| | (b)
any entering into           of any contract or commitment (i) involving obligations
of CTI in excess of           $100,000, or (ii) with any competitor of AudioCodes
identified in           AudioCodes most recent Form 20F filed with the SEC, or any
violation,           amendment or other modification or waiver of any of the terms of any
of the           foregoing contracts described in clauses (i) or (ii) of this
Section, other           than in the ordinary course of business and excluding any sales
and procurement           arrangements in the ordinary course of business;
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c)
any transfer to any person           or entity of any rights to Intellectual Property
owned by CTI (as defined in the           SPA), other than in the ordinary course of
business and in a manner consistent           with past practice;
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (d)
any entering into or amendment of any agreements           pursuant to which any other
party is granted exclusive marketing or other           exclusive rights of any type or
scope with respect to any of its products or           technology of CTI;
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (e)
any sale, lease, license or other disposition of or           encumbrance on any of the
tangible assets of CTI which are material,           individually or in the aggregate, to
the business of CTI, except in the ordinary           course of business and in a manner
consistent with past practice;
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (f)
any           incurrence by CTI of any indebtedness for borrowed money in excess of
$100,000           (other than trade debt incurred in the ordinary course of business),
or any           guarantee of any such indebtedness, or any issuance or sale of any debt
          securities or guarantee any debt securities of others;
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (g)
any entering by CTI           into any operating lease involving $100,000 or more of
aggregate payments over           the life of the lease;
| | -------------------------------------------------------------------------------------------------------------------------------------------------

| | (h)
any payment, discharge or satisfaction by CTI, in an           amount in excess of
$25,000 in any case, of any claim, liability or obligation           (absolute, accrued,
asserted or unasserted, contingent or otherwise) arising           other than in the
ordinary course of business and in a manner consistent with           past practice,
other than the payment, discharge or satisfaction of liabilities           reflected or
reserved against in the Financial Statements;
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (i)
any making by CTI           of any capital expenditures, capital additions or capital
improvements, other           than the ordinary course of business and in a manner
consistent with past           practice;
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (j)
any material reduction in the amount of any insurance coverage           provided by
existing insurance policies of CTI;
| | ----------------------------------------------------------------------------------------------------------------------------

| | (k)
any adoption of any employee           benefit or stock purchase or option plan;
| | ------------------------------------------------------------------------------------

| | (l)
any hiring of any new key employee           of CTI, or any payment of any special bonus
or special remuneration to any           director or employee of CTI, or any increase in
the salaries or wage rates of           any employee of CTI in excess of 5%, without
prior notice to AudioCodes;
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (m)
any           granting of any severance or termination pay (i) to any director or
officer           of CTI, or (ii) to any other employee of CTI, other than payments
made           pursuant to applicable law or written agreements outstanding on the date
hereof           or release of funds accrued in managers insurance schemes upon
resignation           of an employee;
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



---

---



| | (n)
any commencement of a lawsuit, other than (i) for the           routine collection
of bills or (ii) in such cases where CTI in good faith           determines that
failure to commence suit would result in the material impairment           of a valuable
aspect of its business, provided that CTI informs AudioCodes prior           to the
filing of such a suit;
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (o)
any acquisition, or entering into of an           agreement to acquire, by merging or
consolidating with, or by purchasing a           substantial portion of the assets or
capital stock of, or by any other manner,           any business or any corporation,
partnership, association or other business           organization or division thereof, or
otherwise acquire or agree to acquire any           assets which are material,
individually or in the aggregate, to the business of           CTI;
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (p)
any incorporation or other organization of a corporation, limited           liability
company, general or limited partnership, joint venture, business           trust,
association or other business enterprise or entity as a subsidiary of           CTI;
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (q)
any making or changing of any material election in respect of taxes, or           any
adoption or changing of any accounting method in respect of taxes, or any
          filing of any tax return, or any amendment to a tax return, or any entering
into           of any closing agreement, settle any claim or assessment in respect of
taxes, or           any consenting to any extension or waiver of the limitation period
applicable to           any claim or assessment in respect of taxes, other than any
filing or amendment           of any tax return in the ordinary course of business;
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (r)
any revaluation of any           assets or properties of CTI, including, without
limitation, any writing down of           the value of inventory or writing off of notes
or accounts receivable, other           than in the ordinary course of business and in a
manner consistent with past           practice; or
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (s)
any taking, or agreeing in writing or otherwise to take, any of           the actions
described in Section 9.2(a) hereof through Section 9.2(r)           hereof,
inclusive, or any action which would prevent CTI or the Shareholders           from
performing or cause CTI or the Shareholders not to perform its covenants           and
obligations hereunder.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Section
9.3 No Solicitation.

During
the First Option Period, CTI shall not (nor shall the Shareholders (to the extent such
matter is brought to their vote) permit CTI) and each Shareholder on its own behalf shall
nottake any of the following actions with any Person other than AudioCodes:

| | (a)
solicit, initiate, entertain or encourage any proposals or offers from, or
          conduct discussions with or engage in negotiations with any Person relating to
          any possible acquisition of CTI (whether by way of merger, purchase of shares,
          purchase of assets or otherwise);
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b)
 provide information with respect to CTI to any Person, other than AudioCodes,
          relating to, or otherwise cooperate with, facilitate or encourage any effort or
          attempt by any such person with regard to, any possible acquisition of CTI
          (whether by way of merger, purchase of shares, purchase of assets or
otherwise);           or
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c)
 enter into any agreement with any Person providing for the possible acquisition
          of CTI (whether by way of merger, purchase of shares, purchase of assets or
          otherwise).
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



---

---



Section
9.4 Covenants of Shareholders. Without prejudice to the duties of the Shareholders
set forth elsewhere in this Agreement or in the Articles of Association, each Shareholder,
severally and not jointly, agrees that during the Option Period:

| | (a)
          Such Shareholder shall not Transfer (as defined below) any or all of the Shares
          held by such Shareholder to any Transferee (as defined below) without first
          obtaining from such Transferee and delivering to CTI and AudioCodes a signed
          counterpart of this Agreement acknowledging that such Transferee is bound by
the           terms of this Agreement, substantially in the form of Exhibit D hereto.
          For purposes of this Agreement, (A) Transfer shall include
          any sale, assignment, encumbrance, hypothecation, pledge, conveyance in trust,
          gift, transfer by bequest, devise or descent, or other transfer or disposition
          of any kind, including but not limited to transfers to receivers, levying
          creditors, trustees or receivers in bankruptcy proceedings or general assignees
          for the benefit of creditors, whether voluntary or by operation of law,
directly           or indirectly, and (B) Transferee shall mean a
natural           person, partnership, corporation, limited liability company, business
trust,           joint stock company, trust, unincorporated association, joint venture,
          governmental authority or other entity or organization.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b)
          Such Shareholder shall notify AudioCodes promptly after becoming aware of any
          attachment being levied on its Shares, and will take any and all necessary
          action in order to cancel such attachment on its own expense not later then
          thirty (30) days after becoming aware of the same.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c)
          Such Shareholder shall take, or cause to be taken, all actions and do, or cause
          to be done, all things necessary under any applicable law to consummate and
make           effective the transactions contemplated by this Agreement in accordance
with the           terms of this Agreement and to consummate the performance of the
Second Option.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (d)
          Such Shareholder shall not take, and shall not cause to be taken, any action
          that might impair, harm or frustrate in any manner the consummation or
          effectiveness of the transactions contemplated by this Agreement or any of the
          rights granted to AudioCodes under this Agreement.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Section
9.5 Notices of Certain Events

CTI
and/or the Shareholders shall each promptly notify AudioCodes if they become aware of:

| | (i)        any
notice or other communication from any Person alleging that the consent of           such
Person is or may be required in connection with the transactions           contemplated
by this Agreement;
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ii)        any
notice or other communication from any governmental or regulatory agency or
          authority in connection with the transactions contemplated by this Agreement;
          and
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (iii)        any
actions, suits, claims, investigations or proceedings commenced or, to its           best
knowledge threatened against, relating to or involving or otherwise           affecting
CTI or such Shareholder that, if pending on the Effective Date, would           have been
required to have been disclosed pursuant to this Agreement or that           relate to
the consummation of the transactions contemplated by this Agreement
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



---

---



| | (iv)        any
issuance, delivery or sale, or any authorization or proposed issuance,           delivery
or sale of, or purchase or proposed purchase of, any shares or           securities
convertible into, or subscriptions, rights, warrants or options           exercisable for
shares, or any entering into of any other agreements or           commitments of any kind
or character obligating CTI to issue any such shares or           other securities
convertible into or exercisable for shares, unless the Person           to whom such
securities are issued executes a signed counterpart of this           Agreement
acknowledging that such new shareholder is bound by the terms of this
          Agreement, substantially in the form of Exhibit D hereto;
          notwithstanding, CTI may issue shares pursuant to options or warrants
          outstanding as of the Effective Date, and shall make best efforts to have any
          new shareholder execute a signed counterpart of this Agreement acknowledging
          that such new shareholder is bound by the terms of this Agreement,
substantially           in the form of Exhibit D hereto. CTI acknowledges that
AudioCodes shall           not assume or substitute for any obligation or undertaking of
Shareholders           and/or CTI, to grant, issue, exercise or accelerate options or
share purchase           rights outstanding under any of CTIs Share Option Plans.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Section
9.6    Shareholder Committee.

| | (a)
          In this Agreement, the term Shareholder Committee means a
          committee comprised of two or more members who shall be elected and removed by
          the holders of the majority of the Shares, calculated on an as-converted basis
          (the Majority Shareholders) by a written notice provided to
          the other members of the Shareholder Committee, CTI, the Shareholders and
          AudioCodes. Initially, the members of the Shareholder Committee will be Aaron
          Mankovski and Thomas Langer.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b)
          Without any further act of any Shareholder, the Shareholder Committee is hereby
          appointed as representative, agent and attorney-in-fact for and on behalf of
          each Shareholder (i) to give and receive notices and communications in respect
          of this Agreement, (ii) to appoint and replace a Distribution Trustee (the Distribution
Trustee) with notice to CTI, AudioCodes and the           Shareholders, such
Distribution Trustee to have the duties set forth in this           Agreement and in any
other agreement between the Shareholders and the           Distribution Trustee in
respect of this Agreement; initially, the Distribution           Trustee shall be Do
Ventures Ltd., an Israeli company, (iii) to authorize the           disbursement of the
Payment in such amounts and for such purposes as the           Shareholder Committee
shall deem appropriate in accordance with the terms of           distribution agreements
among the Shareholders; the Company shall provide to the           Shareholder Committee
all information requested by the Shareholder Committee in           order to determine
the identities of the persons and entities entitled to           receive the Payment and
any information required by the Shareholder Committee to           calculate the Payment
due to each such recipient, in a written statement signed           by an officer, (iv)
to take any and all action that may be required, including           voting in any and
all shareholder meetings and signing any shareholder consent,           in order to
effectuate the performance of the Second Option (including voting in           favor
thereof if shareholder approval thereof or of any portion thereof shall be
          sought), (v) to transfer to AudioCodes share transfer deeds in respect of the
          Shares and any other shares of CTI that are issued and outstanding as of the
          Closing Date, and (vi) to take all actions necessary or appropriate in the
          judgment of the Shareholder Committee for the accomplishment of the foregoing,
          and, in connection therewith, to hire or retain, with expenses borne by the
          Shareholders, such counsel, accountants, representatives and other professional
          advisors as the Shareholder Committee determines in its sole and absolute
          discretion to be necessary, advisable or appropriate in order to carry out and
          perform the Shareholder Committees duties, rights and obligations
          hereunder. Such authorization by each Shareholder of the Shareholder Committee
          is irrevocable. With respect to AudioCodes, notices or communications required
          under this Agreement to or from the Shareholder Committee shall constitute
          notice to or from each of the Shareholders.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



---

---



| | (c)
          All decisions of the Shareholder Committee shall be adopted by unanimous
          consent. In the event of any dispute among the members of the Committee the
          written decision of the Majority Shareholders shall determine and be binding.
          All instruments signed by the Shareholder Committee must be signed by at least
          two members of the Shareholder Committee, and any party receiving such an
          instrument from the Shareholder Committee shall have the right to rely in good
          faith upon such certification, and to act in accordance with the instrument
          without independent investigation.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (d)
          The Shareholder Committee and its members shall not be liable for any act which
          the Shareholder Committee may do or omit to do hereunder as the Shareholder
          Committee while acting in good faith. The Shareholders hereby jointly and
          severally agree to indemnify and hold harmless the members of the Shareholder
          Committee against any and all losses, claims, damages, liabilities and
expenses,           including reasonable costs of investigation and reasonable counsel
fees and           disbursements, which may be imposed upon any of them or incurred by
any of them           hereunder or in the performance of their duties hereunder,
including any           litigation arising from this Agreement or involving the subject
matter hereof,           unless the members of the Shareholder Committee acted with bad
faith. In           addition, the Shareholder Committee shall not be required to take any
action,           unless it receives advance payment, or other prior confirmation, from
the           Majority Shareholders, to its complete satisfaction, that any and all costs
and           expenses with regard to such action shall be borne by the Shareholders, and
it           shall not be liable to the Shareholders for any omission to act in the
absence           of such confirmation. The members of the Shareholder Committee shall be
deemed           third party beneficiaries of this Section 9.6.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (e)
          A decision, act, consent or instruction of the Shareholder Committee within the
          scope of the authorities granted to it under this Agreement shall constitute a
          decision of all the Shareholders and shall be final, binding and conclusive
upon           each of such Shareholders, and AudioCodes may rely upon any such decision,
act,           consent or instruction of the Shareholder Committee as being the decision,
act,           consent or instruction of every such Shareholder. AudioCodes is hereby
relieved           from any liability to any person for any acts done by it in accordance
with such           decision, act, consent or instruction of the Shareholder Committee.
Any act           reasonably done or omitted pursuant to the advice or opinion of counsel
or           professional advisor shall be conclusive evidence of the good faith of the
          Shareholder Committee.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (f)
          The Shareholder Committee shall have reasonable access to information about CTI
          and the Shareholders and the reasonable assistance of Shareholders, officers
and           employees of CTI for purposes of performing its duties and exercising its
rights           hereunder, provided that the Shareholder Committee shall treat
confidentially           and not disclose any nonpublic information from or about CTI or
a Shareholder to           anyone (except on a need to know basis to individuals who
agree to treat such           information confidentially).
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (g)
          The Shareholder Committee shall be obligated only for the performance of such
          duties as are specifically set forth herein and may rely and shall be protected
          in relying on any instrument reasonably believed to be genuine and to have been
          signed or presented by the proper party or parties. The Shareholder Committee
          shall not be liable for forgeries or false personations. The Shareholder
          Committee shall in no case or event be liable for any representations or
          warranties of the parties hereunder or for punitive, incidental or
consequential           damages.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



---

---



| | (h)
          The Shareholder Committee is hereby expressly authorized to comply with and
obey           orders, judgments or decrees of any court or rulings of any arbitrators.
In case           the Shareholder Committee obeys or complies with any such order,
judgment or           decree of any court or such ruling of any arbitrator, the
Shareholder Committee           shall not be liable to any of the parties hereto or to
any other person by           reason of such compliance.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Section
9.7 Confidentiality.

| | (a)
          The terms and conditions of this Agreement and all transactions contemplated
          herein (collectively, the Financing Terms), including their
          existence, shall be considered confidential information and shall not be
          disclosed by any Shareholder to any third party.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b)
          Notwithstanding the foregoing, a Shareholder may disclose any of the
          Financing Terms (i) to its shareholders, directors, officers and employees,
only           as required for the execution and performance hereof, or in order to
comply with           applicable law; (ii) to its attorneys, independent accountants and
other           professional advisors or consultants, in each case only where such
persons or           entities are under appropriate nondisclosure obligations, and (iii)
in           connection with the enforcement of this Agreement or its exhibits.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c)
          In the event that a Shareholder is requested or becomes legally compelled to
          disclose the existence of the Financing Terms in contravention of the foregoing
          provisions, the Shareholder shall provide AudioCodes with prompt written notice
          of that fact so that AudioCodes may seek (with the cooperation and reasonable
          efforts of the Shareholder and CTI) a protective order, confidential treatment
          or other appropriate remedy. In such event, Shareholder shall furnish only that
          portion of the information which is legally required, as determined by the
          written legal opinion of legal counsel, and shall exercise reasonable efforts
to           obtain reliable assurance that confidential treatment will be accorded such
          information to the extent reasonably requested by AudioCodes.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (d)
          The Shareholders will hold, and will use its reasonable commercial efforts to
          cause its officers, directors, employees, accountants, counsel, consultants,
          advisors and agents to hold, in confidence, unless compelled to disclose by
          judicial or administrative process or by other requirements of law, all
          confidential documents and information concerning CTI and/or AudioCodes
provided           to it or otherwise obtained by it by virtue of their relationship with
CTI,           excluding any information that is in the public domain.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# ARTICLE X

# INDEMNIFICATION

Section
10.1 Survival of Representations and Warranties. All of the representations and
warranties of the parties contained herein above shall survive the Closing and continue in
full force and effect until the Second Installment Date.

Section
10.2 Indemnification Subject to the terms of this Article X, Shareholders or CTI,
as relevant (the Indemnifying Parties), shall indemnify, defend and
hold harmless an Indemnified Person from and against, and pay or reimburse an Indemnified
Person for, any and all Damages as actually incurred or suffered by an Indemnified Person
in respect of:

| | (a)
          any breach of any of the representations or warranties made by the Shareholders
          or made by CTI, on the Effective Date or on the Closing Date; or
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------



---

---



| | (b)
          any breach or violation of any covenant or agreement of Shareholders or CTI
          contained in this Agreement or;
| | -----------------------------------------------------------------------------------------------------------------------------------

| | (c)
          payments in respect of stamp tax accrued by the Company prior the end of the
          Indemnity Period other than stamp tax due on this Agreement or with respect to
          the transaction hereunder (Stamp Tax) or;
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (d)
          any failure by the Distribution Trustee to withhold any tax required from the
          Payment.
| | --------------------------------------------------------------------------------------------------------------

| | (e)
          Notwithstanding anything above to the contrary: (i) the Indemnifying Parties
          shall not have any obligation to indemnify AudioCodes from and against any
          Damages until AudioCodes has suffered Damages by reason of all such breaches of
          representations and warranties and/or covenants and agreements herein in excess
          of $100,000 in the aggregate (not taking into account any           materiality qualifiers
to such representations and warranties) (the Threshold) and
thereafter, shall be liable for all Damages,           including the Threshold;
notwithstanding, there shall be no Threshold for           Damages related to claims by
Dissenting Shareholders or failure by the           Distribution Trustee to withhold tax
in the amounts required by applicable law;           (ii) the representations and
warranties contained in this Agreement shall expire           at the Second Installment
Date, except with respect to any good faith claim made           in writing by AudioCodes
prior to such date, and reasonably supported by           documentary evidence, which
claim shall survive until finally resolved between           the parties; and (iii)
except in respect of a misrepresentation under Section           7.1 above, no
Shareholder shall be liable (nor shall such Shareholder portions           in the
Indemnity Fund be used to recover Damages) for the representations,           warranties
and covenants of any other Shareholder or for any failure to withhold           any tax
(whether by the Distribution Trustee or anyone else) from Payment to any           other
Shareholder.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Section
10.3 Procedures for Indemnification

| | (a)
          If a claim or demand is made against an Indemnified Person, or if an
Indemnified           Person shall otherwise learn of an assertion, by any Person who is
not a party           to this Agreement (a Third Party Claim) as to
which CTI or           Shareholders (the Indemnifying Party) may be
obligated to           provide indemnification pursuant to this Agreement, an Indemnified
Person will           notify the Indemnifying Party in writing, and in reasonable detail,
of the Third           Party Claim in a prompt manner a reasonable amount of time after
becoming aware           of such Third Party Claim (the Claim Notice);
provided,           however, that failure to give any such notification will not
affect the           indemnification provided hereunder except to the extent the
Indemnifying Party           shall have demonstrated that it has been actually prejudiced
as a result of such           failure; provided, further, however, that in any
event, such notification           must be given within the particular survival period
noted in Section 10.1 above           to be eligible for indemnification.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



---

---



| | (b)
          If a Third Party Claim is made against an Indemnified Person, the Indemnifying
          Party will be entitled to assume the defense thereof (at the expense of the
          Indemnifying Party) with counsel selected by the Indemnifying Party and
          reasonably satisfactory to AudioCodes. Should the Indemnifying Party so elect
to           assume the defense and settlement of a Third Party Claim, the Indemnifying
Party           will not be liable to an Indemnified Person for any legal or other
expenses           incurred by an Indemnified Person in connection with the defense
thereof as long           as the Indemnifying Party diligently conducts such defense;
provided that, if a           conflict of interest exists in respect of such claim, an
Indemnified Person will           have the right to employ separate counsel to represent
the Indemnified Person           and in that event the reasonable fees and expenses of
such separate counsel will           be paid by such Indemnifying Party. An Indemnified
Person will have the right to           participate in the defense thereof and to employ
counsel, at its own expense,           separate from the counsel employed by the
Indemnifying Party. The Indemnifying           Party will be liable for the reasonable
fees and expenses of counsel employed by           an Indemnified Person for any period
after the receipt of the Claim Notice           during which the Indemnifying Party has
failed to assume the defense thereof.           The Indemnifying Party will promptly
supply to AudioCodes copies of all           correspondence and documents relating to or
in connection with such Third Party           Claim and keep AudioCodes fully informed of
all developments relating to or in           connection with such Third Party Claim
(including, without limitation, providing           to AudioCodes on request updates and
summaries as to the status thereof).           Indemnified Person will reasonably
cooperate with the Indemnifying Party in the           defense thereof if requested by
the Indemnifying Party (such cooperation to be           at the expense, including
reasonable legal fees and expenses, of the           Indemnifying Party).
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c)
          Indemnifying Party will not consent to any settlement, compromise or discharge
          (including the consent to entry of any judgment) of any Third Party Claim which
          does not include a provision whereby the plaintiff or claimant in the matter
          releases the relevant Indemnified Party from all Liability with respect
thereto,           without AudioCodes prior written consent which will not be
unreasonably           withheld.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (d)
          Any claim on account of Damages which does not involve a Third Party Claim
shall           be asserted by written notice given by an Indemnified Person to the
Indemnifying           Party and by a claim upon the Indemnity Fund as stated in Article
V.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Section
10.4 Indemnity Fund.

To
remove any doubt, the Indemnity Fund pursuant to Article V shall constitute a sole remedy
for any indemnification and any breach of representation, warranty or covenant hereunder,
except (i) in case of fraud by CTI in which event, the Indemnity Fund shall not be
AudioCodes sole remedy, or (ii) in case of a Shareholders misrepresentation in
Section 7.2-7.7 above or with regard to the amount of tax to be withheld from Payment, in
such cases the remedy against such Shareholder shall be up to full portion of the Payment
received or receivable by such Shareholder.

# ARTICLE XI

# GENERAL PROVISIONS

Section
11.1 Expenses. Each of AudioCodes and the Shareholders shall pay its own expenses
in connection with this Agreement and the transactions contemplated hereby and thereby.

Section
11.2 Notices

All
notices and other communications hereunder shall be in writing and shall be deemed given
if delivered personally or by commercial delivery service, or mailed by registered or
certified mail (return receipt requested) or sent via facsimile (with confirmation of
receipt) to the parties at the following address (or at such other address for a party as
shall be specified by like notice):



---

---



| | If
to AudioCodes, to: PO Box 255, Ben Gurion Airport 70100 Israel
 Fax: +972 3 976 4040 notices@audiocodes.com
 Attn: President with a copy (which shall not
constitute notice) to: Adv. Noma Floom, Noma Floom & Co.,
Law Offices 125 Azar, Kfar Saba, Israel, Facsimile: + 972-9-7674707
If to CTI to:5 Sapir Street, POB 12112, Herzeliya
Pituach, Israel 46733 Fax: +972-9-960-5200 with a
copy (which shall not constitute notice) to: Adv. Ori Rosen
 Ori Rosen & Co. Law Offices, 1 Azrieli Center, Tel
Aviv, Israel 67021; Facsimile: +972-3-607-4701 If to the Shareholder
Committee, to: Aaron Mankovski and Thomas Langer c/o
Pitango Venture Capital Fund 11 HaMenofim St., Eastern Tower
 Herzliya 46725, Israel Facsimile: +972-9-971-8102
If to a Shareholder, to:The addresses as provided on
such Shareholder's signature page,
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

or to such other address as the party
receiving such notice shall have properly designated to the other party hereto in writing.

Section
11.3 Counterparts. This Agreement may be executed in one or more counterparts, all
of which shall be considered one and the same agreement and shall become effective when
one or more counterparts have been signed by each of the parties hereto and delivered to
the other parties hereto, it being understood that all parties hereto need not sign the
same counterpart.

Section
11.4 Entire Agreement; Nonassignability; Parties in Interest. This Agreement and
the documents and instruments and other agreements specifically referred to herein or
delivered pursuant hereto, including the exhibits and schedules hereto (i) constitute
the entire agreement among the parties with respect to the subject matter hereof and
supersede all prior agreements and understandings, both written and oral, among the
parties with respect to the subject matter hereof, and amends and restates the Prior
Agreement in its entirety (including any side letter signed regarding the subject matter
herein prior to the date hereof), (ii) are not intended to confer upon any other
person any rights or remedies hereunder, and (iii) shall not be assigned by operation
of law or otherwise except as otherwise specifically provided herein or therein.



---

---



Section
11.5Severability.The parties hereby agree that each of the sections herein,
including each representation or warranty, is material to the transaction, and that the
breach of any section, covenant, representation or warranty shall constitute a material
breach of the Agreement. In the event that any provision of this Agreement, or the
application thereof, becomes or is declared by a court of competent jurisdiction to be
illegal, void or unenforceable, the remainder of this Agreement will continue in full
force and effect and the application of such provision to other persons or circumstances
will be interpreted so as reasonably to effect the intent of the parties hereto. The
parties further agree to replace such void or unenforceable provision of this Agreement
with a valid and enforceable provision that will achieve, to the extent possible, the
economic, business and other purposes of such void or unenforceable provision.

Section
11.6 Governing Law; Jurisdiction. This Agreement shall be governed by and construed
in accordance with the laws of Israel, without giving effect to the principles of
conflicts of law thereof. Any dispute arising under or in relation to this Agreement shall
be resolved in the competent court in the city of Tel Aviv-Jaffa, and each of the parties
hereby submits irrevocably to the jurisdiction of such court.

Section
11.7 Injunctive Relief; Specific Performance. The parties hereto acknowledge that
damages would be an inadequate remedy for a breach of this Agreement by any party hereto
and that the obligations of the parties hereto shall be enforceable by any party hereto
through injunctive relief, specific performance or other similar relief.

Section
11.8 Waivers; Amendments. Except as otherwise expressly provided herein, no action
taken pursuant to this Agreement, including any investigation by or on behalf of any party
hereto, shall be deemed to constitute a waiver by the party taking such action of
compliance with any covenant or agreement made by the parties hereto. Other than with
respect to failure to exercise the Option during the Option Period in accordance with the
terms of this Agreement, no delay or omission to exercise any right, power or remedy
accruing to any party hereunder shall be construed to be a waiver of any such breach or
default, or any acquiescence therein, or a waiver of any similar breach or default
theretofore or thereafter occurring. Except by the addition of Transferees and new
shareholders as Shareholders under this Agreement as contemplated by Sections
9.2(c) and 9.4(a) above, this Agreement may not be modified, amended, altered or
supplemented, and the observance of any term herein cannot be waived, prospectively or
retroactively, except upon the execution and delivery of a written instrument executed by
(i) AudioCodes, (ii) the Majority Shareholders (provided that any amendment or waiver that
adversely changes the rights of a certain class of shares of CTI in a manner different
from the rights of other classes of shares of CTI shall require also the consent of the
holders of the majority of the shares of such adversely and differently affected class),
and (iii) CTI. Notwithstanding, an explicit waiver hereunder with respect to Sections
9.1-9.5 shall take effect upon execution by AudioCodes and CTI.

Section
11.9 Release of Founders Shares held in Escrow. CTI and each of the parties hereto
who is a beneficiary in respect of the 51,800 Ordinary Shares of the Company that were
placed by Erez Marom and Aharon Tzadikov (the Founders) in escrow with
Yodan Trust Company Ltd. (Yodan), hereby agrees to the release of such
shares to the Founders or to companies under their control in accordance with instructions
provided by the Founders to Yodan, at the Founders discretion.



---

---



[Remainder of Page
Intentionally Left Blank]



---

---



IN
WITNESS WHEREOF, the undersigned have executed and delivered, or caused this Amended and
Restated Second Option Agreement to be executed and delivered by their respective officers
thereunto duly authorized, to be effective as of the date first above written.

| |  | AUDIOCODES LTD.By: /s/ Shabtai Adlersberg 
Name: Shabtai AdlersbergTitle:   Chairman of the Board, President and CEO
| |  | ----------------------------------------------------------------------------------------------------------------------------------



---

---



IN
WITNESS WHEREOF, the undersigned have executed and delivered, or caused this Amended and
Restated Second Option Agreement to be executed and delivered by their respective officers
thereunto duly authorized, to be effective as of the date first above written.

| |  | CTI SQUARED LTD.By: /s/ Ofer Barshad
Name: Ofer BarshadTitle:   Chief Financial Officer
| |  | -----------------------------------------------------------------------------------------------------



---

---



The
undersigned, the Escrow Agent under that certain Second Option Agreement as of December
19, 2005, between CTI Squared Ltd., AudioCodes LTD. the Shareholders of CTI (as such term
is defined therein) and the undersigned (the Agreement), hereby
acknowledges that the Agreement has been amended and restated as of October 9, 2006 (the
Amended Agreement), and that as the provision regarding the holding in
escrow of a portion of the consideration under the Agreement had been cancelled, the
undersigned is no longer a party to the Amended Agreement.

| |  | /s/ Jonathan Sherman
Jonathan Sherman, Adv.
| |  | ---------------------------------------------------------



---

---



IN WITNESS WHEREOF, the undersigned
have executed and delivered, or caused this Amended and Restated Second Option
Agreementto be executed and delivered by their respective officers thereunto duly
authorized, to be effective as of the date first above written.

|Erez-Net Holdings Ltd. | Erez Marom
|---------------------- | ----------

|By:Title:Signature:Address: | Erez Marom
CEO
/s/ Erez Marom
  | Signature: Address: | /s/ Erez Marom
  
 
|--------------------------- | --------------------------------------------------------------------------------------- | ------------------- | -----------------------------------------------

|Marom Investments LP | Aaron-Com Holdings Ltd.
|-------------------- | -----------------------

|By:Title:Signature:Address: | Erez Marom
 
/s/ Erez Marom
  | By:Title:Signature:Address: | Aaron Tzadikov
CEO
/s/ Aaron Tzadikov
 
|--------------------------- | ------------------------------------------------------------------------------------- | --------------------------- | -----------------------------------------------------------------------------------------------

|A. Eldor 1 Ltd. | Alex Eldor
|--------------- | ----------

|By:Title:Signature:Address: | Alex Aldor 
[with company stamp]
/s/ Alex Aldor
  | Signature: Address: | /s/ Alex Aldor
  
 
|--------------------------- | --------------------------------------------------------------------------------------------------------- | ------------------- | -----------------------------------------------

|Joseph Vardi | Yair Shamir
|------------ | -----------

|Signature:Address: | /s/ Joseph Vardi  | Signature:Address: | /s/ Yair Shamir
 
|------------------ | --------------------------------------------- | ------------------ | ---------------------------------------------

|Virgotech Ltd. | Bar Shekel (1991) Ltd.
|-------------- | ----------------------

|By:Title:Signature:Address: | Shulamit Langor
Manager
/s/ Shulamit Langor 
  | By:Title:Signature:Address: | 
 
 
 
|--------------------------- | ------------------------------------------------------------------------------------------------------ | --------------------------- | --------------------------------------------------------------

|Berman & Co. Trading and Investment Ltd. | D.N.S.T. Holdings Ltd.
|---------------------------------------- | ----------------------

|By:Title:Signature:Address: | [illegible]
[with company stamp]
 
  | By:Title:Signature:Address: | Ilan Orenstein 
CEO
/s/ Ilan Orenstein 
 
|--------------------------- | -------------------------------------------------------------------------------------------- | --------------------------- | -------------------------------------------------------------------------------------------------



---

---

IN WITNESS WHEREOF, the undersigned
have executed and delivered, or caused this Amended and Restated Second Option
Agreementto be executed and delivered by their respective officers thereunto duly
authorized, to be effective as of the date first above written.

|Eucalyptus Ventures LP | Eucalyptus Ventures (Israel) LP
|---------------------- | -------------------------------

|By:Title:Signature:Address: | [illegible]
 
 
  | By:Title:Signature:Address: | [illegible]
 
 
 
|--------------------------- | ------------------------------------------------------------------------- | --------------------------- | -------------------------------------------------------------------------

|Eucalyptus Ventures (Cayman) LP | Eucalyptus Ventures Affiliate Fund LP
|------------------------------- | -------------------------------------

|By:Title:Signature:Address: | [illegible]
 
 
  | By:Title:Signature:Address: | [illegible]
 
 
 
|--------------------------- | ------------------------------------------------------------------------- | --------------------------- | -------------------------------------------------------------------------



---

---

IN WITNESS WHEREOF, the undersigned
have executed and delivered, or caused this Amended and Restated Second Option
Agreementto be executed and delivered by their respective officers thereunto duly
authorized, to be effective as of the date first above written.

|CLEG, Inc. | Omniron Ltd.
|---------- | ------------

|By:Title:Signature:Address: | Lucian Bebchuk 
President
/s/ Lucian Bebchuk  
  | By:Title:Signature:Address: | Giora Bitan
Director
/s/ Giora Bitan
 
|--------------------------- | -------------------------------------------------------------------------------------------------------- | --------------------------- | ----------------------------------------------------------------------------------------------

|Polaris Fund I LP | Millmount Holdings Ltd.
|----------------- | -----------------------

|By:Title:Signature:Address: | 
 
/s/ Hila Zisapel and Amir Ashrab 
  | By:Title:Signature:Address: | 
 
 
 
|--------------------------- | ---------------------------------------------------------------------------------------------- | --------------------------- | --------------------------------------------------------------

|Pitango Fund II (Tax Exempt Investors) LLC | Pitango Fund II LLC
|------------------------------------------ | -------------------

|By:Title:Signature:Address: | 
/s/ Chemi Peres
  | By:Title:Signature:Address: | 
 
/s/ Chemi Peres
 
|--------------------------- | -------------------------------------------------------------------------- | --------------------------- | ----------------------------------------------------------------------------

|Pitango Fund II LP | DS Polaris Trust (Foreign Residents) (1997) Ltd.
|------------------ | ------------------------------------------------

|By:Title:Signature:Address: | 
 
/s/ Chemi Peres
  | By:Title:Signature:Address: | 
 
/s/ Chemi Peres
 
|--------------------------- | ---------------------------------------------------------------------------- | --------------------------- | ----------------------------------------------------------------------------



---

---

IN WITNESS WHEREOF, the undersigned
have executed and delivered, or caused this Amended and Restated Second Option
Agreementto be executed and delivered by their respective officers thereunto duly
authorized, to be effective as of the date first above written.

|Pitango Fund II LLC | Canada Israel Opportunity Fund II LP
|------------------- | ------------------------------------

|By:Title:Signature:Address: | Chemi Peres
 
/s/ Chemi Peres
  | By:Title:Signature:Address: | 
 
/s/ Hila Zisapel and Amir Ashrab 
 
|--------------------------- | --------------------------------------------------------------------------------------- | --------------------------- | ----------------------------------------------------------------------------------------------

|Dovrat Shrem Founders Group LP | DS Polaris Ltd.
|------------------------------ | ---------------

|By:Title:Signature:Address: | 
 
/s/ Hila Zisapel and Amir Ashrab
  | By:Title:Signature:Address: | Chemi Peres
 
/s/ Chemi Peres
 
|--------------------------- | --------------------------------------------------------------------------------------------- | --------------------------- | ---------------------------------------------------------------------------------------

|E.Z.A.D. Holdings Ltd. | Line Roset Ltd.
|---------------------- | ---------------

|By:Title:Signature:Address: | 
 
 
  | By:Title:Signature:Address: | 
 
/s/ illegible
 
|--------------------------- | -------------------------------------------------------------- | --------------------------- | --------------------------------------------------------------------------

|Golden Wings Ltd. | Victor Halpert
|----------------- | --------------

|By:Title:Signature:Address: | Dorit Onn
General Manager
/s/ Dori Onn
  | Signature: Address: | /s/ Victor Halpert
 
 
|--------------------------- | ------------------------------------------------------------------------------------------------ | ------------------- | --------------------------------------------------

|Dan Trajman | Sherm Fudim Kelner and Co. Ltd.
|----------- | -------------------------------

|Signature: Address: | 
   | By:Title:Signature:Address: | 
 
/s/ Hila Zisapel and Amir Ashrab  
 
|------------------- | ------------------------------- | --------------------------- | -----------------------------------------------------------------------------------------------

|Canada Israel Opportunity Fund LP | Canada Israel Opportunity Fund III LP
|--------------------------------- | -------------------------------------

|By:Title:Signature:Address: | 
 
/s/ Hila Zisapel and Amir Ashrab 
  | By:Title:Signature:Address: | 
 
/s/ Hila Zisapel and Amir Ashrab 
|--------------------------- | ---------------------------------------------------------------------------------------------- | --------------------------- | --------------------------------------------------------------------------------------------

|Aurum Holdings M.K.I. Ltd. | Aurec Capital Ltd.
|-------------------------- | ------------------

|By:Title:Signature:Address: | 
 
/s/ illegible and Benjamin Kahn 
  | By:Title:Signature:Address: | Nitzan Shalit and Avi Heller
 
/s/ Nitzan Shalit and Avi Heller
 
|--------------------------- | --------------------------------------------------------------------------------------------- | --------------------------- | -------------------------------------------------------------------------------------------------------------------------



---

---



IN WITNESS WHEREOF, the undersigned
have executed and delivered, or caused this Amended and Restated Second Option
Agreementto be executed and delivered by their respective officers thereunto duly
authorized, to be effective as of the date first above written.

|Yezuka Ltd. | International Capital Holdings LLC
|----------- | ----------------------------------

|By:Title:Signature:Address: | Nitzan Shalit
 
/s/ Nitzan Shalit
  | By:Title:Signature:Address: | Ofer
President
/s/ Ofer Warsikovsky
 
|--------------------------- | ------------------------------------------------------------------------------------------- | --------------------------- | ---------------------------------------------------------------------------------------------

|Maltan Holdings Consulting & Management Ltd. | Aurum-SBC Management Ltd.
|-------------------------------------------- | -------------------------

|By:Title:Signature:Address: | Yossi Breuer and Arie Cohen 
 
/s/ Yossi Breuer and Arie Cohen
  | By:Title:Signature:Address: | Dan Shamgar and Arie Cohen
 
/s/ Dan Shamgar and Arie Cohen 
 
|--------------------------- | ------------------------------------------------------------------------------------------------------------------------ | --------------------------- | ----------------------------------------------------------------------------------------------------------------------

|Amdocs (Denmark) APS | Paragon Industries Ltd.
|-------------------- | -----------------------

|By:Title:Signature:Address: | 
 
 
  | By:Title:Signature:Address: | 
 
 
 
|--------------------------- | -------------------------------------------------------------- | --------------------------- | --------------------------------------------------------------

|David Lisbona | Bank Leumi Le'Israel Trust Company Ltd.
|------------- | ---------------------------------------

|Signature: Address: | /s/ David Lisbona 
 
  | By:Title:Signature:Address: | 
 
 
 
|------------------- | ---------------------------------------------------------------- | --------------------------- | --------------------------------------------------------------

|US Bancorp Piper Jaffray EMC Fund I LLC | CTI Squared Investors LP
|--------------------------------------- | ------------------------

|By:Title:Signature:Address: | R. N. Dolan
Managing member
/s/ R. N. Dolan
  | By:Title:Signature:Address: | John Sternfield
Admin Partner
/s/ John Sternfield
 
|--------------------------- | ----------------------------------------------------------------------------------------------------- | --------------------------- | -----------------------------------------------------------------------------------------------------------

Zamir Bar Zion

|Signature: Address: | 
  
  |  | 
|------------------- | --------------------------------- |  | 



---

---



|             |                                                                 
|------------ | ----------------------------------------------------------------
|
|
|
|
|Exhibit A:   | Deleted                                                         
|            
|Exhibit B:   | Legal Opinion of Counsel to CTI                                 
|            
|Exhibit C:   | Exceptions Schedule by Shareholder                              
|            
|Exhibit D:   | Undertaking                                                     
|            
|Schedule A   | Outstanding Shares, Warrants, Options and Convertible Securities
|            
|Schedule B   | Outstanding Warrants, Options, Convertible Securities           
|            
|Schedule 6.1 | Director Resignation                                            



---

---