Document:

20-F

Exhibit 4.32  

Nortel Networks Agreement No. 011449

Nortel Networks Amendment No. 011449(6)

AMENDMENT #6 

TO 

OEM PURCHASE AND SALE
AGREEMENT NO. 011449 (“Agreement”) 

BETWEEN AUDIOCODES
LTD. AND NORTEL NETWORKS LIMITED 

This Amendment #6 to OEM Purchase and
Sale Agreement No. 011449 by and between Nortel Networks Limited, a Canada corporation
with offices located at 8200 Dixie Road, Suite 100, Brampton, Ontario, Canada L6T 5P6
(Nortel) and AudioCodes Ltd., an Israeli corporation with offices located at 1 Hayarden
Street, Airport City Lod, 70151 (Seller), will be effective as of April 1, 2005. 

WHEREAS, Nortel and Seller entered
into an OEM Purchase and Sale Agreement dated April 28, 2003, as amended
(“Agreement”); and 

WHEREAS, Nortel and Seller wish to
amend the Agreement for the purposes of Seller’s obtaining the use of Nortel’s
code-signing certificate and private key in relation to a Nortel customer’s use of
the Mediant Products; 

NOW, THEREFORE, in consideration of
the premises and the promises set forth herein, the parties agree as follows: 

	1.  	Amend
the Agreement by adding new Section 3.1 under Section 3 (Grant of Rights) as follows: 

	 	“3.1. 	
               Code Signing Certificate License – AudioCodes agrees to use
Nortel                Networks’ code-signing certificate and associated private key
in all                applicable Nortel Networks-specific Software loads, (i.e.,
MG3200EMS, MG3500EMS,                MS2010 and MS2020). In that regard Nortel Networks
hereby grants AudioCodes the                right to use Nortel Networks’ code-signing
certificate and associated                private key on AudioCode’s Load Builder
Server for the limited purpose of                AudioCodes’ applying the
code-signing certificate and private key (through                AudioCodes’ jar
files) to the described Nortel Networks-specific Software                loads to support
Nortel Networks’ customers launching Audiocodes                applications. The
preceding license is restricted to use with the described                Software and
must not be used for any other purpose, including, but not limited                to, use
on software loads that are provided to AudioCodes customers other than
               Nortel Networks.”

	2.  	Except
for Amendments 1 through 6, in all other respects the Agreement shall remain unchanged. 

1

IN WITNESS WHEREOF, the parties have
caused this Amendment No. 6 to the Agreement to be signed by their duly authorized
representatives. 

	NORTEL NETWORKS LIMITED

By:  /s/ Nancy Scott
——————————————

Print Name: Nancy Scott
Title:  SR Mgr. Supply Mgmt.

Date:  May 6, 2005		AUDIOCODES LTD.

By:  /s/ Ben Rabinowitz
——————————————

Print Name:  Ben Rabinowitz
Title:  VP Marketing and Sales, NA 

Date:  April 27, 2005

220-F

Exhibit 4.33  

GATEWAY OFFICE 

GATEWAY OFFICE IIC 

2099 GATEWAY PLACE 

SAN JOSE, CALIFORNIA 

OFFICE LEASE AGREEMENT 

BETWEEN 

CA-GATEWAY OFFICE
LIMITED PARTNERSHIP 

(“LANDLORD”) 

AND 

AUDIOCODES, INC. 

(“TENANT”) 

TABLE OF CONTENTS 

	  	  	  
	  	  	  
	  	  	  
	  	  	  
	  	  	  
	1.  	Basic Lease Information  	1   
	2.  	Lease Grant  	2   
	3.  	Adjustment of Commencement Date; Possession  	2   
	4.  	Rent  	3   
	5.  	Compliance with Laws; Use  	3   
	6.  	Security Deposit  	4   
	7.  	Building Services  	4   
	8.  	Leasehold Improvements  	4   
	9.  	Repairs and Alterations  	5   
	10.  	Entry by Landlord  	6   
	11.  	Assignment and Subletting  	6   
	12.  	Liens  	7   
	13.  	Indemnity and Waiver of Claims  	7   
	14.  	Insurance  	7   
	15.  	Subrogation  	8   
	16.  	Casualty Damage  	8   
	17.  	Condemnation  	9   
	18.  	Events of Default  	9   
	19.  	Remedies  	9   
	20.  	Limitation of Liability  	10   
	21.  	Relocation  	11   
	22.  	Holding Over  	11   
	23.  	Subordination to Mortgages; Estoppel Certificate  	11   
	24.  	Notice  	12   
	25.  	Surrender of Premises  	12   
	26.  	Miscellaneous  	12   

OFFICE LEASE AGREEMENT 

THIS OFFICE LEASE AGREEMENT (the “Lease”) is made and entered into as of December 29, 2004, by and between,
CA-GATEWAY OFFICE LIMITED PARTNERSHIP, a Delaware limited partnership (“Landlord”) and AUDIOCODES, INC., a
Delaware corporation (“Tenant”). The following exhibits and attachments are incorporated into and made a
part of the Lease: Exhibit A (Outline and Location of Premises), Exhibit B (Expenses and Taxes), Exhibit C
(Work Letter), Exhibit D (Commencement Letter), Exhibit E (Building Rules and Regulations), Exhibit F
(Additional Provisions), Exhibit G (Parking Agreement) and Exhibit H (Asbestos Notification), and Exhibit I
(Form of Confidentiality Agreement). 

	1.  	Basic
Lease Information. 

	 	     1.01 	“Building”
shall mean the building located at 2099 Gateway Place, San Jose, California,
commonly known as Gateway Office IIC, in the project commonly
known as Gateway Office. “Rentable Square Footage of the Building” is
deemed to be 116,043 square feet.  

	 	     1.02 	“Premises”
shall mean the area shown on Exhibit A to this Lease. The Premises is located
on the fifth floor and known as suite 500. If the Premises include
one or more floors in their entirety, all corridors and restroom
facilities located on such full floor(s) shall be considered part of
the Premises. The “Rentable Square Footage of the Premises” is deemed
to be 7,356 square feet. Landlord and Tenant stipulate and agree
that the Rentable Square Footage of the Building and the Rentable
Square Footage of the Premises are correct.  

	 	     1.03 	“Base
Rent”: 

	Period 	Annual Rate

Per Square Foot 	Monthly

Base Rent 
	1 - 12 	$17.40 	$10,666.20 
	13 - 24 	$18.00 	$11,034.00 
	25 - 36 	$18.60 	$11,401.80 
	37 - 48 	$19.20 	$11,769.60 
	49 - 60 	$19.80 	$12,137.40 

	 	1.04 	“Tenant’s
Pro Rata Share”: 6.3390%. 

	 	1.05 	“Base
Year” for Taxes (defined in Exhibit B): 2005; “Base Year” for Expenses
(defined in Exhibit B): 2005.  

	 	1.06 	“Term”:
A period of 60 months. Subject to Section 3, the Term shall commence on April 1,
2005 (the “Commencement Date”) and, unless terminated early in
accordance with this Lease, end on March 31, 2010 (the “Termination Date”). 

	 	     1.07 	Allowance(s):
$15,000.00, as more fully described in Exhibit F attached hereto.  

	 	     1.08 	“Security
Deposit”: $22,222.65, as more fully described in Section 6. 

	 	     1.09 	“Guarantor(s)”:
As of the date of this Lease, there is no Guarantor. 

	 	1.10 	“Broker(s)”:
CB Richard Ellis, Inc. 

	 	1.11 	“Permitted
Use”: General office. 

1

	 	1.12 	“Notice
Address(es)”: 

	 			
	 			
	 			
	 			
	 			
	 	Landlord:	Tenant:	 
	 	CA-Gateway Office Limited Partnership	Prior to the Commencement Date:
	 	c/o Equity Office
	 	1740 Technology Drive, Suite 150	2890 Zanker Road, Suite 200
	 	San Jose, California 95110	San Jose, California 95134	
	 	Attn:  Gateway Office Property Manager
	 	 	From and after the Commencement Date:
	 	 
	 	 	At the Premises

	 	
A
copy of any notices to Landlord shall be sent to Equity Office, One Market, 600 Spear
Tower, San Francisco, CA 94105, Attn: Regional Counsel-San Jose. 

	 	     1.13 	“Business
Day(s)” are Monday through Friday of each week, exclusive of New Year's Day,
Presidents Day, Memorial Day, Independence Day, Labor Day,
Thanksgiving Day and Christmas Day (“Holidays”). Landlord may
designate additional Holidays that are commonly recognized by other
office buildings in the area where the Building is located. “Building Service
Hours” are 8:00 a.m. to 6:00 p.m. on Business Days.  

	 	1.14 	“Landlord
Work” means the work, if any, that Landlord is obligated to perform in the
Premises pursuant to a separate agreement (the “Work Letter”), if any,
attached to this Lease as Exhibit C. 

	 	1.15 	“Property” means
the Building and the parcel(s) of land on which it is located and, at Landlord’s
discretion, the parking facilities and other improvements, if any, serving the Building
and the parcel(s) of land on which they are located. 

	 	1.16 	Intentionally
omitted.

	2.  	Lease
Grant.  

        The
Premises are hereby leased to Tenant from Landlord, together with the right to use any
portions of the Property that are designated by Landlord for the common use of tenants and
others (the “Common Areas”). 

	3.  	Adjustment
of Commencement Date; Possession.  

        3.01
If Landlord is required to perform Landlord Work prior to the Commencement Date:
(a) the date set forth in Section 1.06 as the Commencement Date shall instead be
defined as the “Target Commencement Date”; (b) the actual
Commencement Date shall be the date on which the Landlord Work is Substantially Complete
(defined below); and (c) the Termination Date will be the last day of the Term as
determined based upon the actual Commencement Date. Landlord’s failure to
Substantially Complete the Landlord Work by the Target Commencement Date shall not be a
default by Landlord or otherwise render Landlord liable for damages, provided, however,
that if Landlord fails to Substantially Complete the Landlord Work and deliver the
Premises to Tenant by the date which is sixty (60) days after the Target Commencement
Date, then Tenant shall have the right to terminate this Lease upon thirty (30) days’
prior written notice to Landlord; further provided, however, that if Landlord
Substantially Completes the Landlord’s Work within thirty (30) days after the date of
the delivery of Tenant’s notice, Tenant’s notice shall be of no force and
effect. Promptly after the determination of the Commencement Date, Landlord and Tenant
shall enter into a commencement letter agreement in the form attached as
Exhibit D. Tenant’s failure to execute and return the commencement
letter, or to provide written objection to the statements contained in the letter, within
30 days after the date of the letter shall be deemed an approval by Tenant of the
statements contained therein. If the Termination Date does not fall on the last day of a
calendar month, Landlord and Tenant may elect to adjust the Termination Date to the last
day of the calendar month in which the Termination Date occurs by the mutual execution of
a commencement letter agreement setting forth such adjusted date. The Landlord Work shall
be deemed to be “Substantially Complete” on the date that all Landlord
Work has been performed, other than any minor details of construction, mechanical
adjustment or any other similar matter, the non-completion of which does not materially
interfere with Tenant’s use of the Premises. If Landlord is delayed in the
performance of the Landlord Work as a result of the acts or omissions of Tenant, the
Tenant Related Parties (defined in Section 13) or their respective contractors or
vendors, including, without limitation, changes requested by Tenant to approved plans,
Tenant’s failure to comply with any of its obligations under this Lease, or the
specification of any materials or equipment with long lead times (a “Tenant
Delay”), the Landlord Work shall be deemed to be Substantially Complete on the
date that Landlord could reasonably have been expected to Substantially Complete the
Landlord Work absent any Tenant Delay. 

2

        3.02
Subject to Landlord’s obligation, if any, to perform Landlord Work, the Premises are
accepted by Tenant in “as is” condition and configuration without any
representations or warranties by Landlord. By taking possession of the Premises, Tenant
agrees that the Premises are in good order and satisfactory condition. Notwithstanding the
foregoing, Tenant’s acceptance of the Premises shall be subject to Landlord’s
obligation to correct portions of the Landlord Work as set forth on a construction punch
list prepared by Landlord and Tenant in accordance with the terms hereof. Within 15 days
after the Substantial Completion of the Landlord Work, Landlord and Tenant shall together
conduct an inspection of the Premises and prepare a “punch list” setting forth
any portions of the Landlord Work that are not in conformity with the Landlord Work as
required by the terms of this Lease. Notwithstanding the foregoing, at the request of
Landlord, such construction punch list shall be mutually prepared by Landlord and Tenant
prior to the date on which Tenant first begins to move its furniture, equipment or other
personal property into the Premises. Landlord, as part of the Landlord Work, shall use
good faith efforts to correct all such items within a reasonable time following the
completion of the punch list. Landlord shall not be liable for a failure to deliver
possession of the Premises or any other space due to the holdover or unlawful possession
of such space by another party, however Landlord shall use reasonable efforts to obtain
possession of the space. The commencement date for the space, in such event, shall be
postponed until the date Landlord delivers possession of the Premises to Tenant free from
occupancy by any party. If Tenant takes possession of the Premises before the Commencement
Date, such possession shall be subject to the terms and conditions of this Lease and
Tenant shall pay Rent (defined in Section 4.01) to Landlord for each day of
possession before the Commencement Date. However, except for the cost of services
requested by Tenant (e.g. freight elevator usage), Tenant shall not be required to pay
Rent for any days of possession before the Commencement Date during which Tenant, with the
approval of Landlord, is in possession of the Premises for the sole purpose of performing
improvements or installing furniture, equipment or other personal property. 

	4.  	Rent.  

        4.01
Tenant shall pay Landlord, without any setoff or deduction, unless expressly set forth in
this Lease, all Base Rent and Additional Rent due for the Term (collectively referred to
as “Rent”). “Additional Rent” means all sums (exclusive
of Base Rent) that Tenant is required to pay Landlord under this Lease. Tenant shall pay
and be liable for all rental, sales and use taxes (but excluding income taxes), if any,
imposed upon or measured by Rent. Base Rent and recurring monthly charges of Additional
Rent shall be due and payable in advance on the first day of each calendar month without
notice or demand, provided that the installment of Base Rent for the first full calendar
month of the Term shall be payable upon the execution of this Lease by Tenant. All other
items of Rent shall be due and payable by Tenant on or before 30 days after billing by
Landlord. Rent shall be made payable to the entity, and sent to the address, Landlord
designates and shall be made by good and sufficient check or by other means acceptable to
Landlord. Tenant shall pay Landlord an administration fee equal to 5% of all past due
Rent, provided that Tenant shall be entitled to a grace period of 5 days for the first 2
late payments of Rent in a calendar year. In addition, past due Rent shall accrue interest
at 12% per annum. Landlord’s acceptance of less than the correct amount of Rent shall
be considered a payment on account of the earliest Rent due. Rent for any partial month
during the Term shall be prorated. No endorsement or statement on a check or letter
accompanying payment shall be considered an accord and satisfaction. Tenant’s
covenant to pay Rent is independent of every other covenant in this Lease. 

        4.02
Tenant shall pay Tenant’s Pro Rata Share of Taxes and Expenses in accordance with
Exhibit B of this Lease. 

	5.  	Compliance
with Laws; Use.  

        The
Premises shall be used for the Permitted Use and for no other use whatsoever. Tenant shall
comply with all statutes, codes, ordinances, orders, rules and regulations of any
municipal or governmental entity whether in effect now or later, including the Americans
with Disabilities Act (“Law(s)”), regarding the operation of
Tenant’s business and the use, condition, configuration and occupancy of the
Premises. In addition, Tenant shall, at its sole cost and expense, promptly comply with
any Laws that relate to the “Base Building” (defined below), but only to the
extent such obligations are triggered by Tenant’s use of the Premises, other than for
general office use, or Alterations or improvements in the Premises performed or requested
by Tenant. “Base Building” shall include the structural portions of the
Building, the public restrooms and the Building mechanical, electrical and plumbing
systems and equipment located in the internal core of the Building on the floor or floors
on which the Premises are located. Tenant shall promptly provide Landlord with copies of
any notices it receives regarding an alleged violation of Law. Tenant shall comply with
the rules and regulations of the Building attached as Exhibit E and such other
reasonable rules and regulations adopted by Landlord from time to time, including rules
and regulations for the performance of Alterations (defined in Section 9). 

3

	6.  	Security
Deposit.  

        The
Security Deposit shall be delivered to Landlord upon the execution of this Lease by Tenant
and held by Landlord without liability for interest (unless required by Law) as security
for the performance of Tenant’s obligations. The Security Deposit is not an advance
payment of Rent or a measure of damages. Landlord may use all or a portion of the Security
Deposit to satisfy past due Rent or to cure any Default (defined in Section 18) by
Tenant, or to satisfy any other loss or damage resulting from Tenant’s Default as
provided in Section 19. If Landlord uses any portion of the Security Deposit, Tenant
shall, within 5 days after demand, restore the Security Deposit to its original amount.
Landlord shall return any unapplied portion of the Security Deposit to Tenant within 45
days after the later to occur of: (a) determination of the final Rent due from
Tenant; or (b) the later to occur of the Termination Date or the date Tenant
surrenders the Premises to Landlord in compliance with Section 25. Landlord may
assign the Security Deposit to a successor or transferee and, following the assignment,
Landlord shall have no further liability for the return of the Security Deposit. Landlord
shall not be required to keep the Security Deposit separate from its other accounts.
Tenant hereby waives the provisions of Section 1950.7 of the California Civil Code,
or any similar or successor Laws now or hereinafter in effect. 

	7.  	Building
Services.  

        7.01
Landlord shall furnish Tenant with the following services: (a) water for use in the
Base Building lavatories; (b) customary heat and air conditioning in season during
Building Service Hours, although Tenant shall have the right to receive HVAC service
during hours other than Building Service Hours by paying Landlord’s then standard
charge for additional HVAC service and providing such prior notice as is reasonably
specified by Landlord; (c) standard janitorial service on Business Days;
(d) elevator service; (e) electricity in accordance with the terms and
conditions in Section 7.02; (f) access to the Building for Tenant and its
employees 24 hours per day/7 days per week, subject to the terms of this Lease and such
protective services or monitoring systems, if any, as Landlord may reasonably impose,
including, without limitation, sign-in procedures and/or presentation of identification
cards; and (g) such other services as Landlord reasonably determines are necessary or
appropriate for the Property. 

        7.02
Electricity used by Tenant in the Premises shall, at Landlord’s option, be paid for
by Tenant either: (a) through inclusion in Expenses (except as provided for excess
usage); (b) by a separate charge payable by Tenant to Landlord; or (c) by
separate charge billed by the applicable utility company and payable directly by Tenant.
Without the consent of Landlord, Tenant’s use of electrical service shall not exceed,
either in voltage, rated capacity, use beyond Building Service Hours or overall load, that
which Landlord reasonably deems to be standard for the Building. Landlord shall have the
right to measure electrical usage by commonly accepted methods, including the installation
of measuring devices such as submeters and check meters. If it is determined that Tenant
is using excess electricity, Tenant shall pay Landlord Additional Rent for the cost of
such excess electrical usage and for the cost of purchasing and installing the measuring
device(s). 

        7.03
Landlord’s failure to furnish, or any interruption, diminishment or termination of
services due to the application of Laws, the failure of any equipment, the performance of
repairs, improvements or alterations, utility interruptions or the occurrence of an event
of Force Majeure (defined in Section 26.03) (collectively a “Service
Failure”) shall not render Landlord liable to Tenant, constitute a constructive
eviction of Tenant, give rise to an abatement of Rent, nor relieve Tenant from the
obligation to fulfill any covenant or agreement. However, if the Premises, or a material
portion of the Premises, are made untenantable for a period in excess of 3 consecutive
Business Days as a result of a Service Failure that is reasonably within the control of
Landlord to correct, then Tenant, as its sole remedy, shall be entitled to receive an
abatement of Rent payable hereunder during the period beginning on the 4th
consecutive Business Day of the Service Failure and ending on the day the service has been
restored. If the entire Premises have not been rendered untenantable by the Service
Failure, the amount of abatement shall be equitably prorated. 

	8.  	Leasehold
Improvements.  

        All
improvements in and to the Premises, including any Alterations (defined in Section 9.03)
(collectively, “Leasehold Improvements”) shall remain upon the Premises
at the end of the Term without compensation to Tenant, provided that Tenant, at its
expense, in compliance with the National Electric Code or other applicable Law, shall
remove any Cable (defined in Section 9.01 below). In addition, Landlord, by written
notice to Tenant at least 60 days prior to the Termination Date, may require Tenant, at
its expense, to remove any Landlord Work or Alterations that, in Landlord’s
reasonable judgment, are of a nature that would require removal and repair costs that are
materially in excess of the removal and repair costs associated with standard office
improvements (the Cable and such other items collectively are referred to as
“Required Removables”). Required Removables shall include, without
limitation, internal stairways, raised floors, personal baths and showers, vaults, rolling
file systems and structural alterations and modifications. The Required Removables shall
be removed by Tenant before the Termination Date. Tenant shall repair damage caused by the
installation or removal of Required Removables. If Tenant fails to perform its obligations
in a timely manner, Landlord may perform such work at Tenant’s expense. Tenant, at
the time it requests approval for a proposed Alteration, including any Initial Alterations
or Landlord Work, as such terms may be defined in the Work Letter attached as
Exhibit C, may request in writing that Landlord advise Tenant whether the
Alteration, including any Initial Alterations or Landlord Work, or any portion thereof, is
a Required Removable. Within 10 days after receipt of Tenant’s request, Landlord
shall advise Tenant in writing as to which portions of the alteration or other
improvements are Required Removables. 

4

	9.  	Repairs
and Alterations.  

        9.01
Tenant shall periodically inspect the Premises to identify any conditions that are
dangerous or in need of maintenance or repair. Tenant shall promptly provide Landlord with
notice of any such conditions. Tenant shall, at its sole cost and expense, perform all
maintenance and repairs to the Premises that are not Landlord’s express
responsibility under this Lease, and keep the Premises in good condition and repair,
reasonable wear and tear excepted. Tenant’s repair and maintenance obligations
include, without limitation, repairs to: (a) floor covering; (b) interior
partitions; (c) doors; (d) the interior side of demising walls;
(e) electronic, fiber, phone and data cabling and related equipment that is
installed by or for the exclusive benefit of Tenant (collectively,
“Cable”); (f) supplemental air conditioning units, kitchens,
including hot water heaters, plumbing, and similar facilities exclusively serving Tenant;
and (g) Alterations. Subject to the terms of Section 15 below, to the extent
Landlord is not reimbursed by insurance proceeds, Tenant shall reimburse Landlord for the
cost of repairing damage to the Building caused by the acts of Tenant, Tenant Related
Parties and their respective contractors and vendors. If Tenant fails to make any repairs
to the Premises for more than 30 days after notice from Landlord (although notice shall
not be required in an emergency), Landlord may make the repairs, and Tenant shall pay the
reasonable cost of the repairs, together with an administrative charge in an amount equal
to 10% of the cost of the repairs. Notwithstanding anything to the contrary contained in
the foregoing, if the nature of the repair is such that more than 30 days is reasonably
required to perform said repair (except for emergency repairs) and the failure to
immediately make such repair does not materially impact other tenants of the Building or
the Building systems, then Landlord shall not have the right to make the repair on
Tenant’s behalf if Tenant commences the repair as soon as reasonably possible after
receipt of notice from Landlord and diligently pursues said repair to completion, provided
that Landlord shall have the right to complete any repair not completed as of the date
that is 60 days after the initial receipt of notice of repair from Landlord. 

        9.02
Landlord shall keep and maintain in good repair and working order and perform maintenance
upon the: (a) structural elements of the Building; (b) mechanical (including
HVAC), electrical, plumbing and fire/life safety systems serving the Building in general;
(c) Common Areas; (d) roof of the Building, including the roof membrane and
structural elements; (e) exterior windows of the Building; and (f) elevators
serving the Building. Landlord shall promptly make repairs for which Landlord is
responsible. Landlord shall promptly make repairs for which Landlord is responsible.
Tenant hereby waives any and all rights under and benefits of subsection 1 of
Section 1932, and Sections 1941 and 1942 of the California Civil Code, or any
similar or successor Laws now or hereinafter in effect. 

        9.03
Tenant shall not make alterations, repairs, additions or improvements or install any Cable
(collectively referred to as “Alterations”) without first obtaining the
written consent of Landlord in each instance, which consent shall not be unreasonably
withheld or delayed. However, Landlord’s consent shall not be required for any
Alteration that satisfies all of the following criteria (a “Cosmetic
Alteration”): (a) is of a cosmetic nature such as painting, wallpapering,
hanging pictures and installing carpeting; (b) is not visible from the exterior of
the Premises or Building; (c) will not affect the Base Building; and (d) does
not require work to be performed inside the walls or above the ceiling of the Premises.
Cosmetic Alterations shall be subject to all the other provisions of this
Section 9.03. Prior to starting work, Tenant shall furnish Landlord with plans and
specifications (to the extent required by the nature of such Alteration); names of
contractors reasonably acceptable to Landlord (provided that Landlord may designate
specific contractors with respect to Base Building); required permits and approvals;
evidence of contractor’s and subcontractor’s insurance in amounts reasonably
required by Landlord and naming Landlord as an additional insured; and any security for
performance in amounts reasonably required by Landlord. Changes to the plans and
specifications must also be submitted to Landlord for its approval. Alterations shall be
constructed in a good and workmanlike manner using materials of a quality reasonably
approved by Landlord. Tenant shall reimburse Landlord for any sums paid by Landlord for
third party examination of Tenant’s plans for non-Cosmetic Alterations. In addition,
Tenant shall pay Landlord a fee for Landlord’s oversight and coordination of any
non-Cosmetic Alterations equal to 5% of the cost of the non-Cosmetic Alterations. Upon
completion, Tenant shall furnish “as-built” plans for non-Cosmetic Alterations,
completion affidavits and full and final waivers of lien. Landlord’s approval of an
Alteration shall not be deemed a representation by Landlord that the Alteration complies
with Law. 

5

	10.  	Entry
by Landlord.  

        Landlord
may enter the Premises to inspect or clean the Premises or to perform or facilitate the
performance of repairs, alterations or additions to the Premises or any portion of the
Building or, in the last 6 months of the Term (as may be renewed), to show the Premises to
prospective Tenants. Except in emergencies or to provide Building services (in which event
Landlord shall provide such notice as is reasonably practicable), Landlord shall provide
Tenant with not less than 24 hours prior verbal notice of entry and shall use reasonable
efforts to minimize any interference with Tenant’s use of the Premises. If reasonably
necessary, Landlord may temporarily close all or a portion of the Premises to perform
repairs, alterations and additions. However, except in emergencies, Landlord will not
close the Premises if the work can reasonably be completed on weekends and after Building
Service Hours. If Landlord, in its reasonable judgment, must complete work during Building
Service Hours, Landlord shall provide Tenant not less than 3 days prior verbal notice
(except in the event of emergency). Entry by Landlord shall not constitute a constructive
eviction or entitle Tenant to an abatement or reduction of Rent. 

	11.  	Assignment
and Subletting.  

        11.01
Except in connection with a Permitted Transfer (defined in Section 11.04), Tenant
shall not assign, sublease, transfer or encumber any interest in this Lease or allow any
third party to use any portion of the Premises (collectively or individually, a
“Transfer”) without the prior written consent of Landlord, which consent
shall not be unreasonably withheld, conditioned or delayed if Landlord does not exercise
its recapture rights under Section 11.02. If the entity(ies) which directly or
indirectly controls the voting shares/rights of Tenant changes at any time, such change of
ownership or control shall constitute a Transfer unless Tenant is an entity whose
outstanding stock is listed on a recognized securities exchange or if at least 80% of its
voting stock is owned by another entity, the voting stock of which is so listed. Tenant
hereby waives the provisions of Section 1995.310 of the California Civil Code, or any
similar or successor Laws, now or hereinafter in effect, and all other remedies,
including, without limitation, any right at law or equity to terminate this Lease, on its
own behalf and, to the extent permitted under all applicable Laws, on behalf of the
proposed transferee. Any Transfer in violation of this Section shall, at Landlord’s
option, be deemed a Default by Tenant as described in Section 18, and shall be
voidable by Landlord. In no event shall any Transfer, including a Permitted Transfer,
release or relieve Tenant from any obligation under this Lease. 

        11.02
Tenant shall provide Landlord with financial statements for the proposed transferee, a
fully executed copy of the proposed assignment, sublease or other Transfer documentation
and such other information as Landlord may reasonably request, subject to the execution by
Landlord of a confidentiality agreement in substantially the form attached as Exhibit
I hereto. Within 15 Business Days after receipt of the required information and
documentation, Landlord shall either: (a) consent to the Transfer by execution of a
consent agreement in a form reasonably designated by Landlord; (b) reasonably refuse
to consent to the Transfer in writing, with the reasons therefor; or (c) in the event
of an assignment of this Lease or subletting of more than 50% of the Rentable Square
Footage of the Premises for more than 50% of the remaining Term (excluding unexercised
options), recapture the portion of the Premises that Tenant is proposing to Transfer. If
Landlord exercises its right to recapture, this Lease shall automatically be amended (or
terminated if the entire Premises is being assigned or sublet) to delete the applicable
portion of the Premises effective on the proposed effective date of the Transfer, although
Landlord may require Tenant to execute a reasonable amendment or other document reflecting
such reduction or termination. Tenant shall pay Landlord a review fee of $1,500.00 for
Landlord’s review of any Permitted Transfer or requested Transfer. 

        11.03
Tenant shall pay Landlord 50% of all rent and other consideration which Tenant receives as
a result of a Transfer that is in excess of the Rent payable to Landlord for the portion
of the Premises and Term covered by the Transfer. Tenant shall pay Landlord for
Landlord’s share of the excess within 30 days after Tenant’s receipt of the
excess. Tenant may deduct from the excess, on a straight-line basis, all reasonable and
customary expenses directly incurred by Tenant attributable to the Transfer. If Tenant is
in Default, Landlord may require that all sublease payments be made directly to Landlord,
in which case Tenant shall receive a credit against Rent in the amount of Tenant’s
share of payments received by Landlord. 

        11.04
Tenant may assign this Lease to a successor to Tenant by purchase (including, without
limitation, the purchase of all or substantially all of Tenant’s assets), merger,
consolidation or reorganization (an “Ownership Change”) or assign this
Lease or sublet all or a portion of the Premises to an Affiliate without the consent of
Landlord, provided that all of the following conditions are satisfied (a
“Permitted Transfer”): (a) Tenant is not in Default; (b) in the
event of an Ownership Change, Tenant’s successor shall own substantially all of the
assets of Tenant and have a net worth which is at least equal to Tenant’s net worth
as of the day prior to the proposed Ownership Change, or in the event of a Transfer to an
Affiliate (defined below), Tenant continues to have a net worth equal to or greater than
Tenant’s net worth at the date of this Lease or the Affiliate has a net worth equal
to Tenant’s net worth at the date of this Lease; (c) the Permitted Use does not
allow the Premises to be used for retail purposes; and (d) Tenant shall give Landlord
written notice at least 15 Business Days prior to the effective date of the Permitted
Transfer. Tenant’s notice to Landlord shall include information and documentation
evidencing the Permitted Transfer and showing that each of the above conditions has been
satisfied. If requested by Landlord, Tenant’s successor shall sign a commercially
reasonable form of assumption agreement. “Affiliate” shall mean an entity
controlled by, controlling or under common control with Tenant. 

6

	12.  	Liens.  

        Tenant
shall not permit mechanics’ or other liens to be placed upon the Property, Premises
or Tenant’s leasehold interest in connection with any work or service done or
purportedly done by or for the benefit of Tenant or its transferees. Tenant shall give
Landlord notice at least 15 days prior to the commencement of any work in the Premises to
afford Landlord the opportunity, where applicable, to post and record notices of
non-responsibility. Tenant, within 10 Business Days of notice from Landlord, shall fully
discharge any lien by settlement, by bonding or by insuring over the lien in the manner
prescribed by the applicable lien Law and, if Tenant fails to do so, Tenant shall be
deemed in Default under this Lease and, in addition to any other remedies available to
Landlord as a result of such Default by Tenant, Landlord, at its option, may bond,
insure over or otherwise discharge the lien. Tenant shall reimburse Landlord for any
amount paid by Landlord, including, without limitation, reasonable attorneys’ fees. 

	13.  	Indemnity
and Waiver of Claims.  

        Except
to the extent caused by the negligence or willful misconduct of Landlord or any Landlord
Related Parties (defined below), Tenant shall indemnify, defend and hold Landlord and
Landlord Related Parties harmless against and from all liabilities, obligations, damages,
penalties, claims, actions, costs, charges and expenses, including, without limitation,
reasonable attorneys’ fees and other professional fees (if and to the extent
permitted by Law) (collectively referred to as “Losses”), which may be
imposed upon, incurred by or asserted against Landlord or any of the Landlord Related
Parties by any third party and arising out of or in connection with any damage or injury
occurring in the Premises or any acts or omissions (including violations of Law) of
Tenant, the Tenant Related Parties (defined below) or any of Tenant’s transferees,
contractors or licensees. Except to the extent caused by the negligence or willful
misconduct of Tenant or any Tenant Related Parties, Landlord shall indemnify, defend and
hold Tenant, its trustees, members, principals, beneficiaries, partners, officers,
directors, employees and agents (“Tenant Related Parties”) harmless
against and from all Losses which may be imposed upon, incurred by or asserted against
Tenant or any of the Tenant Related Parties by any third party and arising out of or in
connection with the acts or omissions (including violations of Law) of Landlord or the
Landlord Related Parties. Tenant hereby waives all claims against and releases Landlord
and its trustees, members, principals, beneficiaries, partners, officers, directors,
employees, Mortgagees (defined in Section 23) and agents (the “Landlord
Related Parties”) from all claims for any injury to or death of persons, damage
to property or business loss in any manner related to (a) Force Majeure,
(b) acts of third parties, (c) the bursting or leaking of any tank, water
closet, drain or other pipe (except where due to the negligence of Landlord or any
Landlord Related Party), (d) the inadequacy or failure of any security or protective
services, personnel or equipment, or (e) any matter not within the reasonable control
of Landlord. 

	14.  	Insurance.  

        Tenant
shall maintain the following insurance (“Tenant’s Insurance”):
(a) Commercial General Liability Insurance applicable to the Premises and its
appurtenances providing, on an occurrence basis, a minimum combined single limit of
$2,000,000.00; (b)  Property/Business Interruption Insurance written on an All Risk
or Special Cause of Loss Form, including earthquake sprinkler leakage, at replacement cost
value and with a replacement cost endorsement covering all of Tenant’s business and
trade fixtures, equipment, movable partitions, furniture, merchandise and other personal
property within the Premises (“Tenant’s Property”) and any Leasehold
Improvements performed by or for the benefit of Tenant; (c) Workers’
Compensation Insurance in amounts required by Law; and (d) Employers Liability
Coverage of at least $1,000,000.00 per occurrence. Any company writing Tenant’s
Insurance shall have an A.M. Best rating of not less than A-VIII. All Commercial General
Liability Insurance policies shall name as additional insureds Landlord (or its successors
and assignees), the managing agent for the Building (or any successor), EOP Operating
Limited Partnership, Equity Office Properties Trust and their respective members,
principals, beneficiaries, partners, officers, directors, employees, and agents, and other
designees of Landlord and its successors as the interest of such designees shall appear.
In addition, Landlord shall be named as a loss payee with respect to Property/Business
Interruption Insurance on the Leasehold Improvements. All policies of Tenant’s
Insurance shall contain endorsements that the insurer(s) shall give Landlord and its
designees at least 30 days’ advance written notice of any cancellation, termination,
material change or lapse of insurance. Tenant shall provide Landlord with a certificate of
insurance evidencing Tenant’s Insurance prior to the earlier to occur of the
Commencement Date or the date Tenant is provided with possession of the Premises, and
thereafter as necessary to assure that Landlord always has current certificates evidencing
Tenant’s Insurance. So long as the same is available at commercially reasonable
rates, Landlord shall maintain so called All Risk property insurance on the Building at
replacement cost value as reasonably estimated by Landlord, together with such other
insurance coverage as Landlord, in its reasonable judgment, may elect to maintain. 

7

	15.  	Subrogation.  

        Landlord
and Tenant hereby waive and shall cause their respective insurance carriers to waive any
and all rights of recovery, claims, actions or causes of action against the other for any
loss or damage with respect to Tenant’s Property, Leasehold Improvements, the
Building, the Premises, or any contents thereof, including rights, claims, actions and
causes of action based on negligence, which loss or damage is (or would have been, had the
insurance required by this Lease been carried) covered by insurance. For the purposes of
this waiver, any deductible with respect to a party’s insurance shall be deemed
covered by and recoverable by such party under valid and collectable policies of
insurance. 

	16.  	Casualty
Damage.  

        16.01
If all or any portion of the Premises becomes untenantable by fire or other casualty to
the Premises (collectively a “Casualty”), Landlord, but in no event later
than 45 days following the date of Casualty, shall cause a general contractor selected by
Landlord to provide Landlord and Tenant with a written estimate of the amount of time
required using standard working methods to Substantially Complete the repair and
restoration of the Premises and any Common Areas necessary to provide access to the
Premises (“Completion Estimate”). If the Completion Estimate indicates
that the Premises or any Common Areas necessary to provide access to the Premises cannot
be made tenantable within 270 days from the date the repair is started, then either party
shall have the right to terminate this Lease upon written notice to the other within 10
Business Days after receipt of the Completion Estimate. Tenant, however, shall not have
the right to terminate this Lease if the Casualty was caused by the negligence or
intentional misconduct of Tenant or any Tenant Related Parties. In addition, Landlord, by
notice to Tenant within 90 days after the date of the Casualty, shall have the right to
terminate this Lease if: (1)  the Premises have been materially damaged and there is
less than 2 years of the Term remaining on the date of the Casualty; (2) any
Mortgagee requires that the insurance proceeds be applied to the payment of the mortgage
debt; or (3) a material uninsured loss to the Building or Premises occurs. In
addition to Landlord’s right to terminate as provided herein, Tenant shall have the
right to terminate this Lease if: (a) a substantial portion of the Premises has been
damaged by Casualty and such damage cannot reasonably be repaired within 60 days after
receipt of the Completion Estimate; (b) there is less than 1 year of the Term
remaining on the date of such Casualty; (c) the Casualty was not caused by the
negligence or willful misconduct of Tenant or its agents, employees or contractors; and
(d) Tenant provides Landlord with written notice of its intent to terminate within 60
days after the date of the Casualty. 

        16.02
If this Lease is not terminated, Landlord shall promptly and diligently, subject to
reasonable delays for insurance adjustment or other matters beyond Landlord’s
reasonable control, restore the Premises and Common Areas. Such restoration shall be to
substantially the same condition that existed prior to the Casualty, except for
modifications required by Law or any other modifications to the Common Areas deemed
desirable by Landlord. Upon notice from Landlord, Tenant shall assign or endorse over to
Landlord (or to any party designated by Landlord) all property insurance proceeds payable
to Tenant under Tenant’s Insurance with respect to any Leasehold Improvements
performed by or for the benefit of Tenant; provided if the estimated cost to repair such
Leasehold Improvements exceeds the amount of insurance proceeds received by Landlord from
Tenant’s insurance carrier, the excess cost of such repairs shall be paid by Tenant
to Landlord prior to Landlord’s commencement of repairs. Within 15 days of demand,
Tenant shall also pay Landlord for any additional excess costs that are determined during
the performance of the repairs to the Premises. In no event shall Landlord be required to
spend more for the restoration of the Leasehold Improvements than the proceeds received by
Landlord, whether insurance proceeds or proceeds from Tenant. Landlord shall not be liable
for any inconvenience to Tenant, or injury to Tenant’s business resulting in any way
from the Casualty or the repair thereof. Provided that Tenant is not in Default, during
any period of time that all or a material portion of the Premises is rendered untenantable
as a result of a Casualty, the Rent shall abate for the portion of the Premises that is
untenantable and not used by Tenant. 

        16.03
The provisions of this Lease, including this Section 16, constitute an express
agreement between Landlord and Tenant with respect to any and all damage to, or
destruction of, all or any part of the Premises or the Property, and any Laws, including,
without limitation, Sections 1932(2) and 1933(4) of the California Civil Code, with
respect to any rights or obligations concerning damage or destruction in the absence of an
express agreement between the parties, and any similar or successor Laws now or
hereinafter in effect, shall have no application to this Lease or any damage or
destruction to all or any part of the Premises or the Property. 

8

	17.  	Condemnation.  

        Either
party may terminate this Lease if any material part of the Premises is taken or condemned
for any public or quasi-public use under Law, by eminent domain or private purchase in
lieu thereof (a “Taking”). Landlord shall also have the right to
terminate this Lease if there is a Taking of any portion of the Building or Property which
would have a material adverse effect on Landlord’s ability to profitably operate the
remainder of the Building. The terminating party shall provide written notice of
termination to the other party within 45 days after it first receives notice of the
Taking. The termination shall be effective as of the effective date of any order granting
possession to, or vesting legal title in, the condemning authority. If this Lease is not
terminated, Base Rent and Tenant’s Pro Rata Share shall be appropriately adjusted to
account for any reduction in the square footage of the Building or Premises. All
compensation awarded for a Taking shall be the property of Landlord. The right to receive
compensation or proceeds are expressly waived by Tenant, however, Tenant may file a
separate claim for Tenant’s Property and Tenant’s reasonable relocation
expenses, provided the filing of the claim does not diminish the amount of Landlord’s
award. If only a part of the Premises is subject to a Taking and this Lease is not
terminated, Landlord, with reasonable diligence, will restore the remaining portion of the
Premises as nearly as practicable to the condition immediately prior to the Taking. Tenant
hereby waives any and all rights it might otherwise have pursuant to Section 1265.130
of the California Code of Civil Procedure, or any similar or successor Laws. 

	18.  	Events
of Default.  

        In
addition to any other default specifically described in this Lease, each of the following
occurrences shall be a “Default”: (a) Tenant’s failure to pay
any portion of Rent when due, if the failure continues for 3 days after written notice to
Tenant (“Monetary Default”); (b) Tenant’s failure (other than a
Monetary Default) to comply with any term, provision, condition or covenant of this Lease,
if the failure is not cured within 20 days after written notice to Tenant provided,
however, if Tenant’s failure to comply cannot reasonably be cured within 20 days,
Tenant shall be allowed additional time (not to exceed 60 days) as is reasonably necessary
to cure the failure so long as Tenant begins the cure within 20 days and diligently
pursues the cure to completion; (c) Tenant permits a Transfer without Landlord’s
required approval or otherwise in violation of Section 11 of this Lease;
(d) Tenant or any Guarantor becomes insolvent, makes a transfer in fraud of
creditors, makes an assignment for the benefit of creditors, admits in writing its
inability to pay its debts when due or forfeits or loses its right to conduct business;
(e) the leasehold estate is taken by process or operation of Law; (f) in the
case of any ground floor or retail Tenant, Tenant does not take possession of or abandons
or vacates all or any portion of the Premises; or (g) Tenant is in default beyond any
notice and cure period under any other lease or agreement with Landlord at the Building or
Property. If Landlord provides Tenant with notice of Tenant’s Default under this
Lease on 3 separate occasions during any 12 month period, Tenant’s subsequent
material Default shall, at Landlord’s option, be an incurable Default by Tenant. All
notices sent under this Section shall be in satisfaction of, and not in addition to,
notice required by Law. 

	19.  	Remedies.  

        19.01
Upon the occurrence of any Default under this Lease, whether enumerated in Section 18
or not, Landlord shall have the option to pursue any one or more of the following remedies
without any notice (except as expressly prescribed herein) or demand whatsoever (and
without limiting the generality of the foregoing, Tenant hereby specifically waives notice
and demand for payment of Rent or other obligations, except for those notices specifically
required pursuant to the terms of Section 18 or this Section 19, and waives any
and all other notices or demand requirements imposed by applicable law): 

	 	(a) 	Terminate
this Lease and Tenant’s right to possession of the Premises and
               recover from Tenant an award of damages equal to the sum of the following: 

	 	(i) 	The
Worth at the Time of Award of the unpaid Rent which had been earned at the           time
of termination;  

	 	(ii) 	The
Worth at the Time of Award of the amount by which the unpaid Rent which           would
have been earned after termination until the time of award exceeds the           amount
of such Rent loss that Tenant affirmatively proves could have been           reasonably
avoided;  

	 	(iii) 	The
Worth at the Time of Award of the amount by which the unpaid Rent for the
          balance of the Term after the time of award exceeds the amount of such Rent
loss           that Tenant affirmatively proves could be reasonably avoided;  

9

	 	(iv) 	Any
other amount necessary to compensate Landlord for all the detriment either
          proximately caused by Tenant’s failure to perform Tenant’s
obligations           under this Lease or which in the ordinary course of things would be
likely to           result therefrom; and  

	 	(v) 	All
such other amounts in addition to or in lieu of the foregoing as may be
          permitted from time to time under applicable law.  

	 	
The
“Worth at the Time of Award” of the amounts referred to in parts (i) and
(ii) above, shall be computed by allowing interest at the lesser of a per annum rate
equal to: (A) the greatest per annum rate of interest permitted from time to
time under applicable law, or (B) the Prime Rate plus 5%. For purposes hereof, the
“Prime Rate” shall be the per annum interest rate publicly announced as
its prime or base rate by a federally insured bank selected by Landlord in the State of
California. The “Worth at the Time of Award” of the amount referred to
in part (iii), above, shall be computed by discounting such amount at the discount rate
of the Federal Reserve Bank of San Francisco at the time of award plus 1%; 

	 	(b) 	Employ
the remedy described in California Civil Code § 1951.4 (Landlord may
               continue this Lease in effect after Tenant’s breach and abandonment
and                recover Rent as it becomes due, if Tenant has the right to sublet or
assign,                subject only to reasonable limitations); or 

	 	(c) 	Notwithstanding
Landlord’s exercise of the remedy described in California                Civil Code
§ 1951.4 in respect of an event or events of default, at such                time
thereafter as Landlord may elect in writing, to terminate this Lease and
               Tenant’s right to possession of the Premises and recover an award of
               damages as provided above in Paragraph 19.01(a). 

        19.02
The subsequent acceptance of Rent hereunder by Landlord shall not be deemed to be a waiver
of any preceding breach by Tenant of any term, covenant or condition of this Lease, other
than the failure of Tenant to pay the particular Rent so accepted, regardless of
Landlord’s knowledge of such preceding breach at the time of acceptance of such Rent.
No waiver by Landlord of any breach hereof shall be effective unless such waiver is in
writing and signed by Landlord. 

        19.03
TENANT HEREBY WAIVES ANY AND ALL RIGHTS CONFERRED BY SECTION 3275 OF THE CIVIL CODE
OF CALIFORNIA AND BY SECTIONS 1174 (c) AND 1179 OF THE CODE OF CIVIL PROCEDURE OF
CALIFORNIA AND ANY AND ALL OTHER LAWS AND RULES OF LAW FROM TIME TO TIME IN EFFECT DURING
THE LEASE TERM PROVIDING THAT TENANT SHALL HAVE ANY RIGHT TO REDEEM, REINSTATE OR RESTORE
THIS LEASE FOLLOWING ITS TERMINATION BY REASON OF TENANT’S BREACH. TENANT ALSO HEREBY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, THE RIGHT TO TRIAL BY JURY IN ANY
LITIGATION ARISING OUT OF OR RELATING TO THIS LEASE. 

        19.04
No right or remedy herein conferred upon or reserved to Landlord is intended to be
exclusive of any other right or remedy, and each and every right and remedy shall be
cumulative and in addition to any other right or remedy given hereunder or now or
hereafter existing by agreement, applicable law or in equity. In addition to other
remedies provided in this Lease, Landlord shall be entitled, to the extent permitted by
applicable law, to injunctive relief, or to a decree compelling performance of any of the
covenants, agreements, conditions or provisions of this Lease, or to any other remedy
allowed to Landlord at law or in equity. Forbearance by Landlord to enforce one or more of
the remedies herein provided upon an event of default shall not be deemed or construed to
constitute a waiver of such default. 

        19.05
If Tenant is in Default of any of its non-monetary obligations under the Lease, Landlord
shall have the right to perform such obligations. Tenant shall reimburse Landlord for the
cost of such performance upon demand together with an administrative charge equal to 10%
of the cost of the work performed by Landlord. 

        19.06
This Section 19 shall be enforceable to the maximum extent such enforcement is not
prohibited by applicable law, and the unenforceability of any portion thereof shall not
thereby render unenforceable any other portion. 

	20.  	Limitation
of Liability.  

        NOTWITHSTANDING
ANYTHING TO THE CONTRARY CONTAINED IN THIS LEASE, THE LIABILITY OF LANDLORD (AND OF ANY
SUCCESSOR LANDLORD) SHALL BE LIMITED TO THE LESSER OF (A) THE INTEREST OF LANDLORD IN
THE PROPERTY, OR (B) THE EQUITY INTEREST LANDLORD WOULD HAVE IN THE PROPERTY IF THE
PROPERTY WERE ENCUMBERED BY THIRD PARTY DEBT IN AN AMOUNT EQUAL TO 70% OF THE VALUE OF THE
PROPERTY. TENANT SHALL LOOK SOLELY TO LANDLORD’S INTEREST IN THE PROPERTY FOR THE
RECOVERY OF ANY JUDGMENT OR AWARD AGAINST LANDLORD OR ANY LANDLORD RELATED PARTY. NEITHER
LANDLORD NOR ANY LANDLORD RELATED PARTY SHALL BE PERSONALLY LIABLE FOR ANY JUDGMENT OR
DEFICIENCY, AND IN NO EVENT SHALL LANDLORD OR ANY LANDLORD RELATED PARTY BE LIABLE TO
TENANT FOR ANY LOST PROFIT, DAMAGE TO OR LOSS OF BUSINESS OR ANY FORM OF SPECIAL, INDIRECT
OR CONSEQUENTIAL DAMAGE. BEFORE FILING SUIT FOR AN ALLEGED DEFAULT BY LANDLORD, TENANT
SHALL GIVE LANDLORD AND THE MORTGAGEE(S) WHOM TENANT HAS BEEN NOTIFIED HOLD MORTGAGES
(DEFINED IN SECTION 23 BELOW), NOTICE AND REASONABLE TIME TO CURE THE ALLEGED DEFAULT. 

10

	21.  	Relocation.  

        At
Landlord’s sole cost and expense, at any time before or during the Term, if Landlord
reasonably determines it is necessary for the health and safety of Tenant or of other
tenants in the Building, Landlord may relocate Tenant from the Premises to space of
reasonably comparable size and utility (“Relocation Space”) within the
Building or adjacent buildings within the same project upon 60 days’ prior written
notice to Tenant. The Relocation Space must contain similar finishes as the Premises, and
approximately the same Rentable Square Footage as the Premises and the same number of work
stations, offices, breakrooms and reception areas as are contained in the Premises as of
the date Tenant receives Landlord’s notice of relocation. From and after the
date of the relocation, the Base Rent and Tenant’s Pro Rata Share shall be adjusted
based on the rentable square footage of the Relocation Space. Landlord shall pay
Tenant’s actual costs of relocation, including all costs for moving Tenant’s
furniture, equipment, supplies and other personal property, as well as the cost of
printing and distributing change of address notices to Tenant’s customers and one
month’s supply of stationery showing the new address, and prior to such relocation,
Landlord, at Landlord’s cost, shall improve the Relocation Space to incorporate
improvements and finishes similar to those incorporated within the Premises (the
commercial availability of like or similar materials shall be taken into account in such
case, so that Landlord will not be required to duplicate materials or finishes which are
no longer readily available on the market, but may instead, with Tenant’s consent
[not to be unreasonably withheld, conditioned or delayed], substitute reasonable
replacement materials or finishes). Notwithstanding anything to the contrary contained
herein, Landlord’s obligation to pay actual relocation related costs shall be limited
to services directly related to the relocation and to products of a quality or grade in
use by Tenant prior to such relocation. If Landlord provides Tenant with a notice of
relocation and Tenant, in its reasonable judgment, determines that the Relocation Space is
not comparable to the Premises, Tenant shall have the right to terminate this Lease by
giving written notice of termination to Landlord within 10 days after the date of
Landlord’s notice of relocation to Tenant. Tenant’s notice of termination shall
set forth the reasons why Tenant believes the Relocation Space is not comparable to the
Premises. Such termination shall be effective 60 days after the date of Landlord’s
notice of relocation, provided that Landlord, within 10 days after receipt of
Tenant’s notice of termination, shall have the right to withdraw its notice of
relocation. In such event, this Lease shall continue in full force and effect as if
Landlord had never provided Tenant with a notice of relocation. 

	22.  	Holding
Over.  

        If
Tenant fails to surrender all or any part of the Premises at the termination of this
Lease, occupancy of the Premises after termination shall be that of a tenancy at
sufferance. Tenant’s occupancy shall be subject to all the terms and provisions of
this Lease, and Tenant shall pay an amount (on a per month basis without reduction for
partial months during the holdover) equal to 150% of the sum of the Base Rent and
Additional Rent due for the period immediately preceding the holdover. No holdover by
Tenant or payment by Tenant after the termination of this Lease shall be construed to
extend the Term or prevent Landlord from immediate recovery of possession of the Premises
by summary proceedings or otherwise. If Landlord is unable to deliver possession of the
Premises to a new tenant or to perform improvements for a new tenant as a result of
Tenant’s holdover and Tenant fails to vacate the Premises within 15 days after notice
from Landlord, Tenant shall be liable for all damages that Landlord suffers from the
holdover. 

	23.  	Subordination
to Mortgages; Estoppel Certificate.  

        Tenant
accepts this Lease subject and subordinate to any mortgage(s), deed(s) of trust, ground
lease(s) or other lien(s) now or subsequently arising upon the Premises, the Building or
the Property, and to renewals, modifications, refinancings and extensions thereof
(collectively referred to as a “Mortgage”). The party having the benefit
of a Mortgage shall be referred to as a “Mortgagee”. This clause shall be
self-operative, but upon request from a Mortgagee, Tenant shall execute a commercially
reasonable subordination agreement in favor of the Mortgagee. As an alternative, a
Mortgagee shall have the right at any time to subordinate its Mortgage to this Lease. Upon
request, Tenant, without charge, shall attorn to any successor to Landlord’s interest
in this Lease. Landlord and Tenant shall each, within 10 days after receipt of a written
request from the other, execute and deliver a commercially reasonable estoppel certificate
to those parties as are reasonably requested by the other (including a Mortgagee or
prospective purchaser). Without limitation, such estoppel certificate may include a
certification as to the status of this Lease, the existence of any defaults and the amount
of Rent that is due and payable. Notwithstanding the foregoing in this Article to the
contrary, as a condition precedent to the future subordination of this Lease to a future
Mortgage, Landlord shall be required to provide Tenant with a commercially reasonable
non-disturbance, subordination, and attornment agreement in favor of Tenant from any
Mortgagee who comes into existence after the Commencement Date. Landlord represents and
warrants that, as of the date of this Lease, the Property is not encumbered by a Mortgage. 

11

	24.  	Notice.  

        All
demands, approvals, consents or notices (collectively referred to as a
“notice”) shall be in writing and delivered by hand or sent by registered
or certified mail with return receipt requested or sent by overnight or same day courier
service at the party’s respective Notice Address(es) set forth in Section 1.
Each notice shall be deemed to have been received on the earlier to occur of actual
delivery or the date on which delivery is refused, or, if Tenant has vacated the Premises
or any other Notice Address of Tenant without providing a new Notice Address, 3 days after
notice is deposited in the U.S. mail or with a courier service in the manner described
above. Either party may, at any time, change its Notice Address (other than to a post
office box address) by giving the other party written notice of the new address. 

	25.  	Surrender
of Premises.  

        At
the termination of this Lease or Tenant’s right of possession, Tenant shall remove
Tenant’s Property from the Premises, and quit and surrender the Premises to Landlord,
broom clean, and in good order, condition and repair, ordinary wear and tear and damage
which Landlord is obligated to repair hereunder excepted. If Tenant fails to remove any of
Tenant’s Property within 2 days after termination of this Lease or Tenant’s
right to possession, Landlord, at Tenant’s sole cost and expense, shall be entitled
(but not obligated) to remove and store Tenant’s Property. Landlord shall not be
responsible for the value, preservation or safekeeping of Tenant’s Property. Tenant
shall pay Landlord, upon demand, the expenses and storage charges incurred. If Tenant
fails to remove Tenant’s Property from the Premises or storage, within 30 days after
notice, Landlord may deem all or any part of Tenant’s Property to be abandoned and
title to Tenant’s Property shall vest in Landlord. 

	26.  	Miscellaneous.  

        26.01
This Lease shall be interpreted and enforced in accordance with the Laws of the state or
commonwealth in which the Building is located without respect to conflicts of laws
principles, and Landlord and Tenant hereby irrevocably consent to the jurisdiction and
proper venue of such state or commonwealth. If any term or provision of this Lease shall
to any extent be void or unenforceable, the remainder of this Lease shall not be affected.
If there is more than one Tenant or if Tenant is comprised of more than one party or
entity, the obligations imposed upon Tenant shall be joint and several obligations of all
the parties and entities, and requests or demands from any one person or entity comprising
Tenant shall be deemed to have been made by all such persons or entities. Notices to any
one person or entity shall be deemed to have been given to all persons and entities.
Tenant represents and warrants to Landlord that each individual executing this Lease on
behalf of Tenant is authorized to do so on behalf of Tenant and that Tenant is not, and
the entities or individuals constituting Tenant or which may own or control Tenant or
which may be owned or controlled by Tenant are not, (i) in violation of any laws relating
to terrorism or money laundering, or (ii) among the individuals or entities identified on
any list compiled pursuant to Executive Order 13224 for the purpose of identifying
suspected terrorists or on the most current list published by the U.S. Treasury Department
Office of Foreign Assets Control at its official website,
http://www.treas.gov/ofac/tllsdn.pdf or any replacement website or other
replacement official publication of such list. 

        26.02
If either party institutes a suit against the other for violation of or to enforce any
covenant, term or condition of this Lease, the prevailing party shall be entitled to
reimbursement of all of its costs and expenses, including, without limitation, reasonable
attorneys’ fees. Landlord and Tenant hereby waive any right to trial by jury in any
proceeding based upon a breach of this Lease. Either party’s failure to declare a
default immediately upon its occurrence, or delay in taking action for a default, shall
not constitute a waiver of the default, nor shall it constitute an estoppel. 

        26.03
Whenever a period of time is prescribed for the taking of an action by Landlord or Tenant
(other than the payment of the Security Deposit or Rent), the period of time for the
performance of such action shall be extended by the number of days that the performance is
actually delayed due to strikes, acts of God, shortages of labor or materials, war,
terrorist acts, civil disturbances and other causes beyond the reasonable control of the
performing party (“Force Majeure”). 

12

        26.04
Landlord shall have the right to transfer and assign, in whole or in part, all of its
rights and obligations under this Lease and in the Building and Property. Upon transfer
Landlord shall be released from any further obligations hereunder and Tenant agrees to
look solely to the successor in interest of Landlord for the performance of such
obligations, provided that, any successor pursuant to a voluntary, third party transfer
(but not as part of an involuntary transfer resulting from a foreclosure or deed in lieu
thereof) shall be deemed to have assumed Landlord’s obligations under this Lease
either by written contractual obligation, assumption agreement or by operation of Law. 

        26.05
Landlord has delivered a copy of this Lease to Tenant for Tenant’s review only and
the delivery of it does not constitute an offer to Tenant or an option. Tenant represents
that it has dealt directly with and only with the Broker as a broker in connection with
this Lease. Tenant shall indemnify and hold Landlord and the Landlord Related Parties
harmless from all claims of any other brokers claiming to have represented Tenant in
connection with this Lease. Landlord shall indemnify and hold Tenant and the Tenant
Related Parties harmless from all claims of any brokers claiming to have represented
Landlord in connection with this Lease. Equity Office Properties Management Corp.
(“EOPMC”) is an affiliate of Landlord and represents only the Landlord in
this transaction. Any assistance rendered by any agent or employee of EOPMC in connection
with this Lease or any subsequent amendment or modification hereto has been or will be
made as an accommodation to Tenant solely in furtherance of consummating the transaction
on behalf of Landlord, and not as agent for Tenant. 

        26.06
Time is of the essence with respect to Tenant’s exercise of any expansion, renewal or
extension rights granted to Tenant. The expiration of the Term, whether by lapse of time,
termination or otherwise, shall not relieve either party of any obligations which accrued
prior to or which may continue to accrue after the expiration or termination of this
Lease. 

        26.07
Tenant may peacefully have, hold and enjoy the Premises, subject to the terms of this
Lease, provided Tenant pays the Rent and fully performs all of its covenants and
agreements. This covenant shall be binding upon Landlord and its successors only during
its or their respective periods of ownership of the Building. 

        26.08
This Lease does not grant any rights to light or air over or about the Building. Landlord
excepts and reserves exclusively to itself any and all rights not specifically granted to
Tenant under this Lease. This Lease constitutes the entire agreement between the parties
and supersedes all prior agreements and understandings related to the Premises, including
all lease proposals, letters of intent and other documents. Neither party is relying upon
any warranty, statement or representation not contained in this Lease. This Lease may be
modified only by a written agreement signed by an authorized representative of Landlord
and Tenant. 

[SIGNATURES ARE ON
FOLLOWING PAGE] 

13

        Landlord
and Tenant have executed this Lease as of the day and year first above written. 

			LANDLORD:

CA-GATEWAY OFFICE LIMITED PARTNERSHIP, a 

Delaware limited partnership

By: EOM GP, L.L.C., a Delaware  limited  liability  company,  its

general partner

		By:	Equity  Office   Management,   L.L.C.,   a  Delaware

limited liability company, its non-member manager

			By: /s/ Richard Scott
——————————————

Name: Richard Scott
Title: Regional Vice President - Leasing  

			TENANT:

AUDIOCODES, INC.,

a Delaware corporation

By: AudioCodes, Inc.
——————————————

Name: Nachum Falek
Title: CFO 

Tenant's Tax ID Number (SSN or FEIN): 

77 - 0448588 

EXHIBIT A 

OUTLINE AND LOCATION
OF PREMISES  

        This
Exhibit is attached to and made a part of the Lease by and between CA-GATEWAY OFFICE
LIMITED PARTNERSHIP (“Landlord”) and AUDIOCODES, INC.
(“Tenant”) for space in the Building located at 2099 Gateway Place, San Jose,
California. 

1

EXHIBIT B 

EXPENSES AND TAXES  

        This
Exhibit is attached to and made a part of the Lease by and between CA-GATEWAY OFFICE
LIMITED PARTNERSHIP (“Landlord”) and AUDIOCODES, INC.
(“Tenant”) for space in the Building located at 2099 Gateway Place, San Jose,
California. 

1.     Payments.  

        1.01
Tenant shall pay Tenant’s Pro Rata Share of the amount, if any, by which Expenses
(defined below) for each calendar year during the Term exceed Expenses for the Base Year
(the “Expense Excess”) and also the amount, if any, by which Taxes
(defined below) for each calendar year during the Term exceed Taxes for the Base Year (the
“Tax Excess”). If Expenses or Taxes in any calendar year decrease below
the amount of Expenses or Taxes for the Base Year, Tenant’s Pro Rata Share of
Expenses or Taxes, as the case may be, for that calendar year shall be $0. Landlord shall
provide Tenant with a good faith estimate of the Expense Excess and of the Tax Excess for
each calendar year during the Term. On or before the first day of each month, Tenant shall
pay to Landlord a monthly installment equal to one-twelfth of Tenant’s Pro Rata Share
of Landlord’s estimate of both the Expense Excess and Tax Excess. After its receipt
of the revised estimate, Tenant’s monthly payments shall be based upon the revised
estimate. If Landlord does not provide Tenant with an estimate of the Expense Excess or
the Tax Excess by January 1 of a calendar year, Tenant shall continue to pay monthly
installments based on the previous year’s estimate(s) until Landlord provides Tenant
with the new estimate. 

        1.02
As soon as is practical following the end of each calendar year, Landlord shall furnish
Tenant with a statement of the actual Expenses and Expense Excess and the actual Taxes and
Tax Excess for the prior calendar year. If the estimated Expense Excess or estimated Tax
Excess for the prior calendar year is more than the actual Expense Excess or actual Tax
Excess, as the case may be, for the prior calendar year, Landlord shall either provide
Tenant with a refund or apply any overpayment by Tenant against Additional Rent due or
next becoming due, provided if the Term expires before the determination of the
overpayment, Landlord shall refund any overpayment to Tenant after first deducting the
amount of Rent due. If the estimated Expense Excess or estimated Tax Excess for the prior
calendar year is less than the actual Expense Excess or actual Tax Excess, as the case may
be, for such prior year, Tenant shall pay Landlord, within 30 days after its receipt of
the statement of Expenses or Taxes, any underpayment for the prior calendar year. 

2.     Expenses.  

        2.01 “Expenses”
means all costs and expenses incurred in each calendar year in connection with operating,
maintaining, repairing, and managing the Building and the Property. Expenses include,
without limitation: (a)  all labor and labor related costs, including wages,
salaries, bonuses, taxes, insurance, uniforms, training, retirement plans, pension plans
and other employee benefits; (b) management fees; (c) the cost of equipping,
staffing and operating an on-site and/or off-site management office for the Building,
provided if the management office services one or more other buildings or properties, the
shared costs and expenses of equipping, staffing and operating such management office(s)
shall be equitably prorated and apportioned between the Building and the other buildings
or properties; (d) accounting costs; (e) the cost of services; (f) rental
and purchase cost of parts, supplies, tools and equipment; (g) insurance premiums and
deductibles; (h) electricity, gas and other utility costs; and (i) the amortized
cost of capital improvements (as distinguished from replacement parts or components
installed in the ordinary course of business) made subsequent to the Base Year which are:
(1) performed primarily to reduce current or future operating expense costs, upgrade
Building security or otherwise improve the operating efficiency of the Property; or
(2) required to comply with any Laws that are enacted, or first interpreted to apply
to the Property, after the date of this Lease. The cost of capital improvements shall be
amortized by Landlord over the lesser of the Payback Period (defined below) or the useful
life of the capital improvement as reasonably determined by Landlord. The amortized cost
of capital improvements may, at Landlord’s option, include actual or imputed interest
at the rate that Landlord would reasonably be required to pay to finance the cost of the
capital improvement. “Payback Period” means the reasonably estimated
period of time that it takes for the cost savings resulting from a capital improvement to
equal the total cost of the capital improvement. Landlord, by itself or through an
affiliate, shall have the right to directly perform, provide and be compensated for any
services under this Lease. If Landlord incurs Expenses for the Building or Property
together with one or more other buildings or properties, whether pursuant to a reciprocal
easement agreement, common area agreement or otherwise, the shared costs and expenses
shall be equitably prorated and apportioned between the Building and Property and the
other buildings or properties. 

1

        2.02
    Expenses shall not include: 

	 	(a) 	the
cost of capital improvements (except as set forth above); 

	 	(b) 	depreciation;
payments of principal, interest, points or fees on any mortgage                and other
non-operating debts of Landlord; 

	 	(c) 	the
cost of repairs or other work to the extent Landlord is reimbursed by
               insurance or condemnation proceeds; 

	 	(d) 	costs
in connection with leasing space in the Building, including brokerage
               commissions; lease concessions, rental abatements and construction
allowances                granted to specific tenants; 

	 	(e) 	costs
incurred in connection with the sale, financing or refinancing of the
               Building; 

	 	(f) 	fines,
interest and penalties incurred due to the late payment of Taxes or
               Expenses; 

	 	(g) 	organizational
expenses associated with the creation and operation of the entity                which
constitutes Landlord; 

	 	(h) 	any
penalties or damages that Landlord pays to Tenant under this Lease or to
               other tenants in the Building under their respective leases; 

	 	(i) 	any
ground lease rental; 

	 	(j) 	rentals
for items (except when needed in connection with normal repairs and
               maintenance of permanent systems) which, if purchased rather than rented,
would                constitute a capital improvement which is specifically excluded in
(a) above,                excluding, however, equipment not affixed to the Building which
is used in                providing janitorial or similar services; 

	 	(k) 	costs,
including permit, license and inspection costs incurred with respect to
               the installation of tenant or other occupants’ improvements in the
               Building, or incurred in renovating or otherwise improving, decorating,
painting                or redecorating vacant leaseable space for tenants or other
occupants of the                Building, except in connection with general maintenance
and repairs provided to                tenants of the Building in general; 

	 	(l) 	expenses
in connection with services or other benefits which are not offered to
               Tenant or for which Tenant is charged for directly, but which are provided
to                another tenant or occupant of the Building; 

	 	(m) 	expenses
in connection with utilities, services or other services which are
               provided to Tenant or another tenant or occupant of the Building to the
extent                Tenant or such other tenant or occupant reimburses Landlord fully
for such                utilities, services or benefits; 

	 	(n) 	attorney’s
fees and other costs incurred by Landlord in litigating or                otherwise
resolving any dispute with another tenant of the Building over any                alleged
violation by Landlord or any tenant of the Building of the terms and
               conditions of any lease to which it is a party and covering space in the
               Building; 

	 	(o) 	overhead
and profit increment paid to Landlord or to subsidiaries or affiliates                of
Landlord for goods or services in or to the Building to the extent the same
               exceeds the cost (including overhead and profits) of such goods or
services of                equal quality rendered by unaffiliated third parties on a
competitive basis; 

	 	(p) 	any
and all costs arising form the presence of “hazardous substances”               in
or about the Building on the Commencement Date, including without limitation,
               hazardous substances in the ground water or soil, except to the extent
such                removal, cleaning, abatement or remediation is related to the general
repair and                maintenance of the Building, Common Area or Property; 

	 	(q) 	costs
arising from Landlord’s charitable or political contributions; and 

	 	(r) 	costs
(including in connection therewith all attorneys’ fees and costs of
               settlement, judgements and payments in lieu thereof) arising from claims,
               disputes or potential disputes in connection with potential or actual
claims of                litigation or arbitration pertaining to Landlord or Landlord’s
interest in                or title to the Building. 

2

        2.03
If at any time during a calendar year the Building is not at least 95% occupied or
Landlord is not supplying services to at least 95% of the total Rentable Square Footage of
the Building, Expenses shall, at Landlord’s option, be determined as if the Building
had been 95% occupied and Landlord had been supplying services to 95% of the Rentable
Square Footage of the Building. If Expenses for a calendar year are determined as provided
in the prior sentence, Expenses for the Base Year shall also be determined in such manner.
Notwithstanding the foregoing, Landlord may calculate the extrapolation of Expenses under
this Section based on 100% occupancy and service so long as such percentage is used
consistently for each year of the Term. The extrapolation of Expenses under this Section
shall be performed in accordance with the methodology specified by the Building Owners and
Managers Association. 

     3.    
          “Taxes” shall mean: (a) all real property taxes and other
          assessments on the Building and/or Property, including, but not limited to,
          gross receipts taxes, assessments for special improvement districts and building
          improvement districts, governmental charges, fees and assessments for police,
          fire, traffic mitigation or other governmental service of purported benefit to
          the Property, taxes and assessments levied in substitution or supplementation in
          whole or in part of any such taxes and assessments and the Property’s share
          of any real estate taxes and assessments under any reciprocal easement
          agreement, common area agreement or similar agreement as to the Property;
          (b) all personal property taxes for property that is owned by Landlord and
          used in connection with the operation, maintenance and repair of the Property;
          and (c) all costs and fees incurred in connection with seeking reductions
          in any tax liabilities described in (a) and (b), including, without limitation,
          any costs incurred by Landlord for compliance, review and appeal of tax
          liabilities. Without limitation, Taxes shall not include any income, capital
          levy, transfer, capital stock, gift, estate or inheritance tax. If a change in
          Taxes is obtained for any year of the Term during which Tenant paid
          Tenant’s Pro Rata Share of any Tax Excess, then Taxes for that year will be
          retroactively adjusted and Landlord shall provide Tenant with a credit, if any,
          based on the adjustment. Likewise, if a change is obtained for Taxes for the
          Base Year, Taxes for the Base Year shall be restated and the Tax Excess for all
          subsequent years shall be recomputed. Tenant shall pay Landlord the amount of
          Tenant’s Pro Rata Share of any such increase in the Tax Excess within 30
          days after Tenant’s receipt of a statement from Landlord. 

     4.    
          Audit Rights. Tenant, within 365 days after receiving Landlord’s
          statement of Expenses, may give Landlord written notice (“Review
          Notice”) that Tenant intends to review Landlord’s records of the
          Expenses for the calendar year to which the statement applies. Within a
          reasonable time after receipt of the Review Notice, Landlord shall make all
          pertinent records available for inspection that are reasonably necessary for
          Tenant to conduct its review. If any records are maintained at a location other
          than the management office for the Building, Tenant may either inspect the
          records at such other location or pay for the reasonable cost of copying and
          shipping the records. If Tenant retains an agent to review Landlord’s
          records, the agent must be with a CPA firm licensed to do business in the state
          or commonwealth where the Property is located. Tenant shall be solely
          responsible for all costs, expenses and fees incurred for the audit. Within 90
          days after the records are made available to Tenant, Tenant shall have the right
          to give Landlord written notice (an “Objection Notice”) stating
          in reasonable detail any objection to Landlord’s statement of Expenses for
          that year. If Tenant fails to give Landlord an Objection Notice within the 90
          day period or fails to provide Landlord with a Review Notice within the 365 day
          period described above, Tenant shall be deemed to have approved Landlord’s
          statement of Expenses and shall be barred from raising any claims regarding the
          Expenses for that year. If Tenant provides Landlord with a timely Objection
          Notice, Landlord and Tenant shall work together in good faith to resolve any
          issues raised in Tenant’s Objection Notice. If Landlord and Tenant
          determine that Expenses for the calendar year are less than reported, Landlord
          shall provide Tenant with a credit against the next installment of Rent in the
          amount of the overpayment by Tenant. Likewise, if Landlord and Tenant determine
          that Expenses for the calendar year are greater than reported, Tenant shall pay
          Landlord the amount of any underpayment within 30 days. The records obtained by
          Tenant shall be treated as confidential. In no event shall Tenant be permitted
          to examine Landlord’s records or to dispute any statement of Expenses
          unless Tenant has paid and continues to pay all Rent when due. 

3

EXHIBIT C 

WORK LETTER  

        This
Exhibit is attached to and made a part of the Lease by and between CA-GATEWAY OFFICE
LIMITED PARTNERSHIP (“Landlord”) and AUDIOCODES, INC.
(“Tenant”) for space in the Building located at 2099 Gateway Place, San Jose,
California. 

As used in this Workletter, the
“Premises” shall be deemed to mean the Premises, as initially defined in the
attached Lease. 

	1. 	Landlord
shall perform improvements to the Premises substantially in accordance
                    with the space plan prepared by Reel Grobman dated November 19, 2004
and the                     construction bid prepared by McLarney Construction dated
November 29, 2004                     (collectively, the “Plans”). The
improvements to be performed                     by Landlord in accordance with the Plans
are hereinafter referred to as the                     “Landlord Work.” It
is agreed that construction of the Landlord                     Work will be completed at
Landlord’s sole cost and expense (subject to the                     terms of Section 2
below) using Building standard methods, materials and                     finishes.
Landlord shall enter into a direct contract for the Landlord Work with
                    a general contractor selected by Landlord. In addition, Landlord
shall have the                     right to select and/or approve of any subcontractors
used in connection with the                     Landlord Work. Landlord’s
supervision or performance of any work for or on                     behalf of Tenant
shall not be deemed a representation by Landlord that such                     Plans or
the revisions thereto comply with applicable insurance requirements,
                    building codes, ordinances, laws or regulations, or that the
improvements                     constructed in accordance with the Plans and any
revisions thereto will be                     adequate for Tenant’s use, it being
agreed that Tenant shall be responsible                     for all elements of the
design of Tenant’s plans (including, without                     limitation,
compliance with law, functionality of design, the structural
                    integrity of the design, the configuration of the premises and the
placement of                     Tenant’s furniture, appliances and equipment).  

	2. 	If
Tenant shall request any revisions to the Plans, Landlord shall have such
                    revisions prepared at Tenant’s sole cost and expense and Tenant
shall                     reimburse Landlord for the cost of preparing any such revisions
to the Plans,                     plus any applicable state sales or use tax thereon,
upon demand. Promptly upon                     completion of the revisions, Landlord
shall notify Tenant in writing of the                     increased cost in the Landlord
Work, if any, resulting from such revisions to                     the Plans. Tenant,
within one Business Day, shall notify Landlord in writing                     whether it
desires to proceed with such revisions. In the absence of such
                    written authorization, Landlord shall have the option to continue
work on the                     Premises disregarding the requested revision. Tenant
shall be responsible for                     any Tenant Delay in completion of the
Premises resulting from any revision to                     the Plans. If such revisions
result in an increase in the cost of Landlord Work,                     such increased
costs, plus any applicable state sales or use tax thereon, shall                     be
payable by Tenant upon demand. Notwithstanding anything herein to the
                    contrary, all revisions to the Plans shall be subject to the approval
of                     Landlord.  

	3. 	Landlord
acknowledges that the Commencement Date shall not occur until the
                    Landlord Work is Substantially Complete as provided in Section 3 of
the Lease,                     and Landlord shall use commercially reasonable efforts to
complete any                     “punch list” items as soon as reasonably
possible after the                     Commencement Date. Tenant acknowledges that such
punch list items may be                     performed by Landlord in the Premises during
Building Service Hours subsequent                     to the Commencement Date if
required by scheduling of contractors and                     subcontractors and other
factors reasonably outside of Landlord’s                     control. Landlord
and Tenant agree to cooperate with each other in order                     to enable the
Landlord Work to be performed in a timely manner and with as                     little
inconvenience to the operation of Tenant’s business as is reasonably
                    possible. Notwithstanding anything herein to the contrary, any delay
in the                     completion of the Landlord Work or inconvenience suffered by
Tenant during the                     performance of the Landlord Work shall not delay
the Commencement Date nor shall                     it subject Landlord to any liability
for any loss or damage resulting therefrom                     or entitle Tenant to any
credit, abatement or adjustment of Rent or other sums                     payable under
the Lease.  

	4. 	This
Exhibit shall not be deemed applicable to any additional space added to the
                    Premises at any time or from time to time, whether by any options
under the                     Lease or otherwise, or to any portion of the original
Premises or any additions                     to the Premises in the event of a renewal
or extension of the original Term of                     the Lease, whether by any
options under the Lease or otherwise, unless expressly                     so provided in
the Lease or any amendment or supplement to the Lease.  

1

EXHIBIT D 

COMMENCEMENT LETTER  

(EXAMPLE) 

		
		
		
		
		
	Date	______________________
	 
	Tenant	AudioCodes, Inc.
	Address	______________________
	 	______________________
	 	______________________

	Re:  	Commencement
Letter with respect to that certain Lease dated as of the _____ day of __________, 200__,
by and between CA-GATEWAY OFFICE LIMITED PARTNERSHIP, as Landlord, and AUDIOCODES,
INC., as Tenant, for 7,356 rentable square feet on the fifth floor of the
Building located at 2099 Gateway Place, San Jose, California. 

	 	
Lease
Id: _________________         
 Business Unit Number: _______________________ 

	Dear  	__________________: 

        In
accordance with the terms and conditions of the above referenced Lease, Tenant accepts
possession of the Premises and agrees: 

	 	         1. 	The
Commencement Date of the Lease is ________________________;

	 	2. 	The
Termination Date of the Lease is ____________________________. 

        Please
acknowledge your acceptance of possession and agreement to the terms set forth above by
signing all 3 counterparts of this Commencement Letter in the space provided and returning
2 fully executed counterparts to my attention. Tenant’s failure to execute and return
this letter, or to provide written objection to the statements contained in this letter,
within 30 days after the date of this letter shall be deemed an approval by Tenant of the
statements contained herein. 

Sincerely, 

___________________________________

Authorized Signatory

Agreed and Accepted: 

		
		
		
		
		
	Tenant:  	AudioCodes, Inc.,
		a Delaware corporation

By:      ______________________

Name:    ______________________

Title:   ______________________

Date:    ______________________

1

EXHIBIT E 

BUILDING RULES AND
REGULATIONS  

        This
Exhibit is attached to and made a part of the Lease by and between CA-GATEWAY OFFICE
LIMITED PARTNERSHIP (“Landlord”) and AUDIOCODES, INC.
(“Tenant”) for space in the Building located at 2099 Gateway Place, San Jose,
California. 

        The
following rules and regulations shall apply, where applicable, to the Premises, the
Building, the parking facilities (if any), the Property and the appurtenances. In the
event of a conflict between the following rules and regulations and the remainder of the
terms of the Lease, the remainder of the terms of the Lease shall control. Capitalized
terms have the same meaning as defined in the Lease. 

	1.  	Sidewalks,
doorways, vestibules, halls, stairways and other similar areas shall
                    not be obstructed by Tenant or used by Tenant for any purpose other
than ingress                     and egress to and from the Premises. No rubbish, litter,
trash, or material                     shall be placed, emptied, or thrown in those
areas. At no time shall Tenant                     permit Tenant’s employees to
loiter in Common Areas or elsewhere about the                     Building or Property. 

	2.  	Plumbing
fixtures and appliances shall be used only for the purposes for which
                    designed and no sweepings, rubbish, rags or other unsuitable material
shall be                     thrown or placed in the fixtures or appliances. Damage
resulting to fixtures or                     appliances due to the gross negligence or
willful misconduct of Tenant, its                     agents, employees or invitees shall
be paid for by Tenant and Landlord shall not                     be responsible for the
damage. 

	3.  	No
signs, advertisements or notices shall be painted or affixed to windows,
                    doors or other parts of the Building, except those of such color,
size, style                     and in such places as are first approved in writing by
Landlord. All tenant                     identification and suite numbers at the entrance
to the Premises shall be                     installed by Landlord, at Tenant’s cost
and expense, using the standard                     graphics for the Building. Except in
connection with the hanging of lightweight                     pictures and wall
decorations, no nails, hooks or screws shall be inserted into                     any
part of the Premises or Building except by the Building maintenance
                    personnel without Landlord’s prior approval, which approval
shall not be                     unreasonably withheld. 

	4.  	Landlord
may provide and maintain in the first floor (main lobby) of the
                    Building an alphabetical directory board or other directory device
listing                     tenants and no other directory shall be permitted unless
previously consented to                     by Landlord in writing. 

	5.  	Tenant
shall not place any lock(s) on any door in the Premises or Building
                    without Landlord’s prior written consent, which consent shall
not be                     unreasonably withheld, and Landlord shall have the right at
all times to retain                     and use keys or other access codes or devices to
all locks within and into the                     Premises. A reasonable number of keys
to the locks on the entry doors in the                     Premises shall be furnished by
Landlord to Tenant at Tenant’s cost and                     Tenant shall not make
any duplicate keys. All keys shall be returned to Landlord                     at the
expiration or early termination of the Lease. 

	6.  	All
contractors, contractor’s representatives and installation technicians
                    performing work in the Building shall be subject to Landlord’s
prior                     approval, which approval shall not be unreasonably withheld,
and shall be                     required to comply with Landlord’s standard rules,
regulations, policies                     and procedures, which may be revised from time
to time. 

	7.  	Movement
in or out of the Building of furniture or office equipment, or dispatch
                    or receipt by Tenant of merchandise or materials requiring the use of
elevators,                     stairways, lobby areas or loading dock areas, shall be
restricted to hours                     reasonably designated by Landlord. Tenant shall
obtain Landlord’s prior                     approval by providing a detailed listing
of the activity, which approval shall                     not be unreasonably withheld.
If approved by Landlord, the activity shall be                     under the supervision
of Landlord and performed in the manner required by                     Landlord. Tenant
shall assume all risk for damage to articles moved and injury                     to any
persons resulting from the activity. If equipment, property, or personnel
                    of Landlord or of any other party is damaged or injured as a result
of or in                     connection with the activity, Tenant shall be solely liable
for any resulting                     damage, loss or injury. 

	8.  	Landlord
shall have the right to approve the weight, size, or location of heavy
                    equipment or articles in and about the Premises, which approval shall
not be                     unreasonably withheld. Damage to the Building by the
installation, maintenance,                     operation, existence or removal of Tenant’s
Property shall be repaired at                     Tenant’s sole expense. 

1

	9.  	Corridor
doors, when not in use, shall be kept closed. 

	10.  	Tenant
shall not: (1) make or permit any improper, objectionable or
                    unpleasant noises or odors in the Building, or otherwise interfere in
any way                     with other tenants or persons having business with them; (2) solicit
                    business or distribute or cause to be distributed, in any portion of
the                     Building, handbills, promotional materials or other advertising;
or                     (3) conduct or permit other activities in the Building that
might, in                     Landlord’s sole opinion, constitute a nuisance. 

	11.  	No
animals, except those assisting handicapped persons, shall be brought into
                    the Building or kept in or about the Premises. 

	12.  	No
inflammable, explosive or dangerous fluids or substances shall be used or
                    kept by Tenant in the Premises, Building or about the Property,
except for those                     substances as are typically found in similar
premises used for general office                     purposes and are being used by
Tenant in a safe manner and in accordance with                     all applicable Laws.
Tenant shall not, without Landlord’s prior written                     consent, use,
store, install, spill, remove, release or dispose of, within or                     about
the Premises or any other portion of the Property, any asbestos-containing
                    materials or any solid, liquid or gaseous material now or
subsequently                     considered toxic or hazardous under the provisions of 42
U.S.C.                     Section 9601 et seq. or any other applicable
environmental Law which may                     now or later be in effect. Tenant shall
comply with all Laws pertaining to and                     governing the use of these
materials by Tenant and shall remain solely liable                     for the costs of
abatement and removal. 

	13.  	Tenant
shall not use or occupy the Premises in any manner or for any purpose
                    which might injure the reputation or impair the present or future
value of the                     Premises or the Building. Tenant shall not use, or
permit any part of the                     Premises to be used for lodging, sleeping or
for any illegal purpose. 

	14. 	Tenant
shall not take any action which would violate Landlord’s labor
                    contracts or which would cause a work stoppage, picketing, labor
disruption or                     dispute or interfere with Landlord’s or any other
tenant’s or                     occupant’s business or with the rights and
privileges of any person                     lawfully in the Building (“Labor
Disruption”). Tenant shall                     take the actions necessary to
resolve the Labor Disruption, and shall have                     pickets removed and, at
the request of Landlord, immediately terminate any work                     in the
Premises that gave rise to the Labor Disruption, until Landlord gives its
                    written consent for the work to resume. Tenant shall have no claim
for damages                     against Landlord or any of the Landlord Related Parties
nor shall the                     Commencement Date of the Term be extended as a result
of the above actions. 

	15.  	Tenant
shall not install, operate or maintain in the Premises or in any other
                    area of the Building, electrical equipment that would overload the
electrical                     system beyond its capacity for proper, efficient and safe
operation as                     determined solely by Landlord. Tenant shall not furnish
cooling or heating to                     the Premises, including, without limitation,
the use of electric or gas heating                     devices, without Landlord’s
prior written consent. Tenant shall not use                     more than its
proportionate share of telephone lines and other telecommunication
                    facilities available to service the Building. 

	16.  	Tenant
shall not operate or permit to be operated a coin or token operated
                    vending machine or similar device (including, without limitation,
telephones,                     lockers, toilets, scales, amusement devices and machines
for sale of beverages,                     foods, candy, cigarettes and other goods),
except for machines for the exclusive                     use of Tenant’s employees
and invitees. 

	17.  	Bicycles
and other vehicles are not permitted inside the Building or on the
                    walkways outside the Building, except in areas designated by
Landlord. 

	18.  	Landlord
may from time to time adopt systems and procedures for the security and
                    safety of the Building and Property, its occupants, entry, use and
contents.                     Tenant, its agents, employees, contractors, guests and
invitees shall comply                     with Landlord’s systems and procedures. 

	19.  	Landlord
shall have the right to prohibit the use of the name of the Building or
                    any other publicity by Tenant that in Landlord’s sole opinion
may impair                     the reputation of the Building or its desirability. Upon
written notice from                     Landlord, Tenant shall refrain from and
discontinue such publicity immediately. 

	20.  	Neither
Tenant nor its agents, employees, contractors, guests or invitees shall
                    smoke or permit smoking in the Common Areas, unless a portion of the
Common                     Areas have been declared a designated smoking area by
Landlord, nor shall the                     above parties allow smoke from the Premises
to emanate into the Common Areas or                     any other part of the Building.
Landlord shall have the right to designate the                     Building (including
the Premises) as a non-smoking building. 

2

	21.  	Landlord
shall have the right to designate and approve standard window coverings
                    for the Premises and to establish rules to assure that the Building
presents a                     uniform exterior appearance. Tenant shall ensure, to the
extent reasonably                     practicable, that window coverings are closed on
windows in the Premises while                     they are exposed to the direct rays of
the sun. 

	22.  	Deliveries
to and from the Premises shall be made only at the times in the areas
                    and through the entrances and exits reasonably designated by
Landlord. Tenant                     shall not make deliveries to or from the Premises in
a manner that might                     interfere with the use by any other tenant of its
premises or of the Common                     Areas, any pedestrian use, or any use which
is inconsistent with good business                     practice. 

	23.  	The
work of cleaning personnel shall not be hindered by Tenant after 5:30 P.M.,
                    and cleaning work may be done at any time when the offices are
vacant. Windows,                     doors and fixtures may be cleaned at any time.
Tenant shall provide adequate                     waste and rubbish receptacles to
prevent unreasonable hardship to the cleaning                     service. 

3

EXHIBIT F 

ADDITIONAL PROVISIONS  

        This
Exhibit is attached to and made a part of the Lease by and between CA-GATEWAY OFFICE
LIMITED PARTNERSHIP (“Landlord”) and AUDIOCODES, INC.
(“Tenant”) for space in the Building located at 2099 Gateway Place, San Jose,
California. 

	1.  	Asbestos
Notification. Tenant acknowledges that Tenant has
                    received the asbestos notification letter attached to this Lease as
Exhibit H hereto, disclosing the existence of asbestos in the
                    Building. As part of Tenant’s obligations under this Lease,
Tenant agrees                     to comply with the California “Connelly Act” and
other applicable                     Laws, including providing copies of Landlord’s
asbestos notification letter                     to all of Tenant’s “employees” and
“owners”, as those                     terms are defined in the Connelly Act
and other applicable Laws. 

	2.  	Renewal
Option.  

	 	A. 	Grant
of Option; Conditions. Tenant shall have the right to extend the                Term
(the “Renewal Option”) for one additional period
               of five (5) years commencing on the day following the Termination Date of
the                initial Term and ending on the fifth anniversary of the Termination
Date (the                “Renewal Term”), if: 

	 	1. 	Landlord
receives notice of exercise (“Initial Renewal           Notice”) not
less than 9 full calendar months prior to the expiration           of the initial Term
and not more than 12 full calendar months prior to the           expiration of the
initial Term; and  

	 	2. 	Tenant
is not in default under the Lease beyond any applicable cure periods at           the
time that Tenant delivers its Initial Renewal Notice or at the time Tenant
          delivers its Binding Notice (as defined below); and  

	 	3. 	Not
more than 20% of the original Premises is sublet (other than pursuant to a
          Permitted Transfer, as defined in Section 11 of the Lease) at the time that
          Tenant delivers its Initial Renewal Notice or at the time Tenant delivers its
          Binding Notice; and  

	 	4. 	The
Lease has not been assigned (other than pursuant to a Permitted Transfer,           as
defined in Section 11 of the Lease) prior to the date that Tenant delivers           its
Initial Renewal Notice or prior to the date Tenant delivers its Binding           Notice.  

	 	B. 	Terms
Applicable to Premises During Renewal Term. 

	 	1. 	The
initial Base Rent rate per rentable square foot for the Premises during the
          Renewal Term shall equal the Prevailing Market (hereinafter defined) rate per
          rentable square foot for the Premises. Base Rent during the Renewal Term shall
          increase, if at all, in accordance with the increases assumed in the
          determination of Prevailing Market rate. Base Rent attributable to the Premises
          shall be payable in monthly installments in accordance with the terms and
          conditions of Section 4 of the Lease.  

	 	2. 	Tenant
shall pay Additional Rent (i.e. Taxes and Expenses) for the Premises           during the
Renewal Term in accordance with Section 4 of the Lease, and the           manner and
method in which Tenant reimburses Landlord for Tenant’s share of           Taxes and
Expenses and the Base Year, if any, applicable to such matter, shall           be some of
the factors considered in determining the Prevailing Market rate for           the
Renewal Term.  

1

	 	C. 	Initial
Procedure for Determining Prevailing Market. Within 30 days after
               receipt of Tenant’s Initial Renewal Notice, Landlord shall advise
Tenant of                the applicable Base Rent rate for the Premises for the Renewal
Term. Tenant,                within 15 days after the date on which Landlord advises
Tenant of the applicable                Base Rent rate for the Renewal Term, shall either
(i) give Landlord final                binding written notice (“Binding
Notice”) of Tenant’s                exercise of its Renewal Option, or (ii) if
Tenant disagrees with                Landlord’s determination, provide Landlord with
written notice of rejection                (the “Rejection Notice”). If
Tenant fails to provide Landlord                with either a Binding Notice or Rejection
Notice within such 15 day period,                Tenant’s Renewal Option shall be
null and void and of no further force and                effect. If Tenant provides
Landlord with a Binding Notice, Landlord and Tenant                shall enter into the
Renewal Amendment (as defined below) upon the terms and                conditions set
forth herein. If Tenant provides Landlord with a Rejection                Notice,
Landlord and Tenant shall work together in good faith to agree upon the
               Prevailing Market rate for the Premises during the Renewal Term. When
Landlord                and Tenant have agreed upon the Prevailing Market rate for the
Premises, such                agreement shall be reflected in a written agreement between
Landlord and Tenant,                whether in a letter or otherwise, and Landlord and
Tenant shall enter into the                Renewal Amendment in accordance with the terms
and conditions hereof.                Notwithstanding the foregoing, if Landlord and
Tenant are unable to agree upon                the Prevailing Market rate for the
Premises within 30 days after the date Tenant                provides Landlord with the
Rejection Notice, Tenant, by written notice to                Landlord (the “Arbitration
Notice”) at any time after the                expiration of such 30 day period
but before the date that is 6 months prior to                the expiration of the
initial Term, shall have the right to have the Prevailing                Market rate
determined in accordance with the arbitration procedures described                in
Section D below. If Landlord and Tenant are unable to agree upon the
               Prevailing Market rate for the Premises within the 30 day period described
and                Tenant fails to timely exercise its right to arbitrate, Tenant’s
Renewal                Option shall be deemed to be null and void and of no further force
and effect. 

	 	D. 	Arbitration
Procedure. 

	 	1. 	If
Tenant provides Landlord with an Arbitration Notice, Landlord and Tenant,
          within 5 days after the date of the Arbitration Notice, shall each
          simultaneously submit to the other, in a sealed envelope, its good faith
          estimate of the Prevailing Market rate for the Premises during the Renewal Term
          (collectively referred to as the “Estimates”). If the higher of such
          Estimates is not more than 105% of the lower of such Estimates, then Prevailing
          Market rate shall be the average of the two Estimates. If the Prevailing Market
          rate is not resolved by the exchange of Estimates, then, within 7 days after
the           exchange of Estimates, Landlord and Tenant shall each select an appraiser
to           determine which of the two Estimates most closely reflects the Prevailing
Market           rate for the Premises during the Renewal Term. Each appraiser so
selected shall           be certified as an MAI appraiser or as an ASA appraiser and
shall have had at           least 5 years experience within the previous 10 years as a
real estate appraiser           working in the San Jose, California area, with working
knowledge of current           rental rates and practices. For purposes hereof, an “MAI”          appraiser
means an individual who holds an MAI designation conferred by, and is           an
independent member of, the American Institute of Real Estate Appraisers (or           its
successor organization, or in the event there is no successor organization,           the
organization and designation most similar), and an “ASA”          appraiser
means an individual who holds the Senior Member designation conferred           by, and
is an independent member of, the American Society of Appraisers (or its
          successor organization, or, in the event there is no successor organization,
the           organization and designation most similar).  

	 	2. 	Upon
selection, Landlord’s and Tenant’s appraisers shall work           together in
good faith to agree upon which of the two Estimates most closely           reflects the
Prevailing Market rate for the Premises. The Estimate chosen by           such appraisers
shall be binding on both Landlord and Tenant as the Base Rent           rate for the
Premises during the Renewal Term. If either Landlord or Tenant           fails to appoint
an appraiser within the 7 day period referred to above, the           appraiser appointed
by the other party shall be the sole appraiser for the           purposes hereof. If the
two appraisers cannot agree upon which of the two           Estimates most closely
reflects the Prevailing Market within 20 days after their           appointment, then,
within 10 days after the expiration of such 20 day period,           the two appraisers
shall select a third appraiser meeting the aforementioned           criteria. Once the
third appraiser (i.e. arbitrator) has been selected as           provided for above,
then, as soon thereafter as practicable but in any case           within 14 days, the
arbitrator shall make his determination of which of the two           Estimates most
closely reflects the Prevailing Market rate and such Estimate           shall be binding
on both Landlord and Tenant as the Base Rent rate for the           Premises. If the
arbitrator believes that expert advice would materially assist           him, he may
retain one or more qualified persons to provide such expert advice.           The parties
shall share equally in the costs of the arbitrator and of any           experts retained
by the arbitrator. Any fees of any appraiser, counsel or           experts engaged
directly by Landlord or Tenant, however, shall be borne by the           party retaining
such appraiser, counsel or expert.  

2

	 	3. 	If
the Prevailing Market rate has not been determined by the commencement date           of
the Renewal Term, Tenant shall pay Base Rent upon the terms and conditions in
          effect during the last month of the initial Term for the Premises until such
          time as the Prevailing Market rate has been determined. Upon such
determination,           the Base Rent for the Premises shall be retroactively adjusted
to the           commencement of the Renewal Term for the Premises. If such adjustment
results in           an underpayment of Base Rent by Tenant, Tenant shall pay Landlord
the amount of           such underpayment within 30 days after the determination thereof.
If such           adjustment results in an overpayment of Base Rent by Tenant, Landlord
shall           credit such overpayment against the next installment of Base Rent due
under the           Lease and, to the extent necessary, any subsequent installments,
until the           entire amount of such overpayment has been credited against Base
Rent.  

	 	E. 	Renewal
Amendment. If Tenant is entitled to and properly exercises its                Renewal
Option, Landlord shall prepare an amendment (the “Renewal                Amendment”)
to reflect changes in the Base Rent, Term, Termination Date                and other
appropriate terms. The Renewal Amendment shall be sent to Tenant                within a
reasonable time after Landlord’s receipt of the Binding Notice or
               other written agreement by Landlord and Tenant regarding the Prevailing
Market                rate, and Tenant shall execute and return the Renewal Amendment to
Landlord                within 15 days after Tenant’s receipt of same, but, upon
final                determination of the Prevailing Market rate applicable during the
Renewal Term                as described herein, an otherwise valid exercise of the
Renewal Option shall be                fully effective whether or not the Renewal
Amendment is executed. 

	 	F. 	Definition
of Prevailing Market. For purposes of this Renewal Option,                “Prevailing
Market” shall mean the arms length fair market                annual rental rate
per rentable square foot under renewal leases and amendments                entered into
on or about the date on which the Prevailing Market is being                determined
hereunder for space comparable to the Premises in the Building and                office
buildings comparable to the Building in the San Jose, California airport
               area. The determination of Prevailing Market shall take into account any
               material economic differences between the terms of this Lease and any
comparison                lease or amendment, such as rent abatements, construction costs
and other                concessions and the manner, if any, in which the landlord under
any such lease                is reimbursed for operating expenses and taxes. The
determination of Prevailing                Market shall also take into consideration any
reasonably anticipated changes in                the Prevailing Market rate from the time
such Prevailing Market rate is being                determined and the time such
Prevailing Market rate will become effective under                this Lease. 

	 	G. 	Subordination.
Notwithstanding anything herein to the contrary,           Tenant’s Renewal Option
is subject and subordinate to the expansion rights           (whether such rights are
designated as a right of first offer, right of first           refusal, expansion option
or otherwise) of any tenant of the Building existing           on the date hereof. 

	3.  	Moving
Allowance. Provided Tenant is not in default under                     the
Lease, Tenant shall be entitled to a moving allowance in the amount of up to
                    $15,000.00 (the “Moving Allowance”) toward the cost
of moving                     from its existing location into the Premises, including,
without limitation, the                     cost of telephone, data and computer cabling,
consulting fees, reprinting                     stationery on hand, moving Tenant’s
furniture, equipment and other personal                     property into the Premises (“Moving
and Relocation Costs”). Any unused portion of the Moving Allowance shall
accrue to                     the sole benefit of Landlord, it being understood and
agreed that Tenant shall                     not be entitled to receive any credit or
abatement in connection therewith.                     Landlord shall disburse the Moving
Allowance, or applicable portion thereof, to                     Tenant within forty-five
(45) days after the later to occur of (i) receipt of                     invoices from
Tenant with respect to Tenant’s actual Moving and Relocation
                    Costs, and (ii) the Commencement Date. However, in no event shall
Landlord have                     any obligation to disburse any portion of the Moving
Allowance after the date                     which is three (3) months after the
Commencement Date. 

3

EXHIBIT G 

PARKING AGREEMENT  

        This
Exhibit is attached to and made a part of the Lease by and between CA-GATEWAY OFFICE
LIMITED PARTNERSHIP (“Landlord”) and AUDIOCODES, INC.
(“Tenant”) for space in the Building located at 2099 Gateway Place, San
Jose, California. 

	 	1. 	During
the initial Term, Tenant agrees to lease from Landlord and Landlord                agrees
to lease to Tenant a total of 29 unreserved parking spaces and 0
                reserved spaces (collectively, the “Spaces”), for
the use                of Tenant and its employees, in the parking facility owned by
Landlord that                serves the Building (the “Parking Facility”),
and if the                Parking Facility includes a garage, then such Spaces may be in,
or on the roof                of, such garage. No deductions or allowances shall be made
for days when Tenant                or any of its employees does not utilize the Parking
Facility or for Tenant                utilizing less than all of the Spaces. Tenant shall
not have the right to lease                or otherwise use more than the number of
reserved and unreserved Spaces set                forth above. 

	 	2. 	During
the initial Term, Tenant shall pay Landlord, as Additional Rent in
               accordance with Section 4 of the Lease, the sum of $0.00 per month,
plus                applicable tax thereon, if any, for each unreserved Space leased by
Tenant                hereunder, and the sum of $0.00 per month, plus applicable tax
thereon, if any,                for each reserved Space leased by Tenant hereunder, as
such rates may be                adjusted from time-to-time to reflect the then current
rate for parking in the                Parking Facility. 

	 	3. 	Except
for particular spaces and areas designated by Landlord or the Operator                (as
defined in paragraph 10, below) for reserved parking, all parking in the
               Parking Facility shall be on an unreserved, first-come, first-served
basis. 

	 	4. 	Neither
Landlord nor its Operator shall not be responsible for money, jewelry,
               automobiles or other personal property lost in or stolen from the Parking
               Facility regardless of whether such loss or theft occurs when the Parking
               Facility is locked or otherwise secured. Except as caused by the
negligence or                willful misconduct of Landlord and without limiting the
terms of the preceding                sentence, Landlord shall not be liable for any
loss, injury or damage to persons                using the Parking Facility or
automobiles or other property therein, it being                agreed that, to the
fullest extent permitted by law, the use of the Spaces shall                be at the
sole risk of Tenant and its employees. Except as caused by the                negligence
or willful misconduct of Operator and without limiting the terms of                the
preceding sentence, Operator shall not be liable for any loss, injury or
               damage to persons using the Parking Facility or automobiles or other
property                therein, it being agreed that, to the fullest extent permitted by
law, the use                of the Spaces shall be at the sole risk of Tenant and its
employees. 

	 	5. 	Landlord
or its Operator shall have the right from time to time to designate the
               location of the Spaces and to promulgate reasonable rules and regulations
               regarding the Parking Facility, the Spaces and the use thereof, including,
but                not limited to, rules and regulations controlling the flow of traffic
to and                from various parking areas, the angle and direction of parking and
the like.                Tenant shall comply with and cause its employees to comply with
all such rules                and regulations as well as all reasonable additions and
amendments thereto. 

	 	6. 	Tenant
shall not store or permit its employees to store any automobiles in the
               Parking Facility without the prior written consent of Landlord. Except for
               emergency repairs, Tenant and its employees shall not perform any work on
any                automobiles while located in the Parking Facility or on the Property.
If it is                necessary for Tenant or its employees to leave an automobile in
the Parking                Facility overnight, Tenant shall provide Landlord with prior
notice thereof                designating the license plate number and model of such
automobile. 

	 	7. 	Landlord
or the Operator shall have the right to temporarily close the Parking
               Facility or certain areas therein in order to perform necessary repairs,
               maintenance and improvements to the Parking Facility, provided that
Landlord or                the Operator shall make commercially reasonable arrangements
for alternative                access to the Premises if such closure materially and
adversely affects such                access. 

	 	8. 	Tenant
shall not assign or sublease any of the Spaces without the consent of
               Landlord. Landlord shall have the right to terminate this Parking
Agreement with                respect to any Spaces that Tenant desires to sublet or
assign. 

1

	 	9. 	Landlord
or the Operator may elect to provide parking cards or keys to control
               access to the Parking Facility. In such event, Landlord or the Operator
shall                provide Tenant with one card or key for each Space that Tenant is
leasing                hereunder, provided that Landlord or the Operator shall have the
right to                require Tenant or its employees to place a deposit on such access
cards or keys                and to pay a fee for any lost or damaged cards or keys. 

	 	10. 	Landlord
hereby reserves the right to enter into a management agreement or lease
               with another entity for the operation of the Parking Facility
               (“Operator”). In such event, Tenant, upon request of
Landlord,                shall enter into a parking agreement with the Operator and pay
the Operator the                monthly charge established hereunder, and Landlord shall
have no liability for                claims arising through acts or omissions of the
Operator unless caused by                Landlord’s negligence or willful
misconduct. It is understood and agreed                that the identity of the Operator
may change from time to time during the Term.                In connection therewith, any
parking lease or agreement entered into between                Tenant and any Operator
shall be freely assignable by such Operator or any                successors thereto. 

2

EXHIBIT H 

ASBESTOS NOTIFICATION 

        This
Exhibit is attached to and made a part of the Lease by and between CA-GATEWAY OFFICE
LIMITED PARTNERSHIP (“Landlord”) and AUDIOCODES, INC.
(“Tenant”) for space in the Building located at 2099 Gateway Place, San
Jose, California. 

        Asbestos-containing
materials (“ACMs”) were historically commonly used in the construction of
commercial buildings across the country. ACMs were commonly used because of their
beneficial qualities; ACMs are fire-resistant and provide good noise and temperature
insulation. 

        Some
common types of ACMs include surfacing materials (such as spray-on fireproofing, stucco,
plaster and textured paint), flooring materials (such as vinyl floor tile and vinyl floor
sheeting) and their associated mastics, carpet mastic, thermal system insulation (such as
pipe or duct wrap, boiler wrap and cooling tower insulation), roofing materials, drywall,
drywall joint tape and drywall joint compound, acoustic ceiling tiles, transite board,
base cove and associated mastic, caulking, window glazing and fire doors. These materials
are not required under law to be removed from any building (except prior to demolition and
certain renovation projects). Moreover, ACMs generally are not thought to present a threat
to human health unless they cause a release of asbestos fibers into the air, which does
not typically occur unless (1) the ACMs are in a deteriorated condition, or (2) the
ACMs have been significantly disturbed (such as through abrasive cleaning, or maintenance
or renovation activities). 

        It
is possible that some of the various types of ACMs noted above (or other types) are
present at various locations in the Building. Anyone who finds any such materials in the
building should assume them to contain asbestos unless those materials are properly tested
and determined to be otherwise. In addition, Landlord has identified the presence of
certain ACMs in the Building. For information about the specific types and locations of
these identified ACMs, please contact the Building manager. The Building manager
maintains records of the Building’s asbestos information including any Building
asbestos surveys, sampling and abatement reports. This information is maintained as part
of Landlord’s asbestos Operations and Maintenance Plan (“O&M
Plan”). 

        The
O&M Plan is designed to minimize the potential of any harmful asbestos exposure to any
person in the building. Because Landlord is not a physician, scientist or industrial
hygienist, Landlord has no special knowledge of the health impact of exposure to asbestos.
Therefore, Landlord hired an independent environmental consulting firm to prepare the
Building’s O&M Plan. The O&M Plan includes a schedule of actions to be taken
in order to (1) maintain any building ACMs in good condition, and (2) to prevent any
significant disturbance of such ACMs. Appropriate Landlord personnel receive regular
periodic training on how to properly administer the O&M Plan. 

        The
O&M Plan describes the risks associated with asbestos exposure and how to prevent such
exposure. The O&M Plan describes those risks, in general, as follows: asbestos is not
a significant health concern unless asbestos fibers are released and inhaled. If inhaled,
asbestos fibers can accumulate in the lungs and, as exposure increases, the risk of
disease (such as asbestosis and cancer) increases. However, measures taken to minimize
exposure and consequently minimize the accumulation of fibers, can reduce the risk of
adverse health effects. 

        The
O&M Plan also describes a number of activities which should be avoided in order to
prevent a release of asbestos fibers. In particular, some of the activities which may
present a health risk (because those activities may cause an airborne release of asbestos
fibers) include moving, drilling, boring or otherwise disturbing ACMs. Consequently, such
activities should not be attempted by any person not qualified to handle ACMs. In other
words, the approval of Building management must be obtained prior to engaging in any such
activities. Please contact the Building manager for more information in this regard. A
copy of the written O&M Plan for the Building is located in the Building Management
Office and, upon your request, will be made available to tenants to review and copy during
regular business hours. 

        Because
of the presence of ACM in the Building, Landlord is also providing the
following warning, which is commonly known as a California Proposition 65 warning:
WARNING: This building contains asbestos, a chemical known to the State of California
to cause cancer. 

        Please
contact the Building manager with any questions regarding the contents of this
Exhibit H. 

1

EXHIBIT I 

FORM OF
CONFIDENTIALITY AGREEMENT 

___________________,
20_  

Fill in Tenant [or Transferee] Name

___________________

___________________

___________________ 

Dear ____________: 

        In
connection with the possible interest of AudioCodes, Inc.
(“Sublandlord”) in securing the consent of
_________________ (“Landlord”) to Sublandlord’s [subletting space or
assigning or transferring its rights and obligations] (the “Transfer”)
pursuant to Section 11 of that certain Office Lease Agreement by and between Sublandlord
and Landlord dated as of __________ (as amended, the “Lease”) to 
Fill in name of Transferee (the “Company”) in the building
located at ___________________________________ (the “Building”), you have
agreed to deliver to Landlord certain information which is either non-public, confidential
or proprietary in nature (the “Information”) relating to the business
operations of the Company. In consideration of your furnishing us with the Information, we
agree as follows: 

	 	1. 	The
Company shall disclose the Information to Landlord so that it may evaluate
               whether or not to consent to the Transfer. Landlord shall accept and hold
such                Information in strict confidence in accordance with the provisions of
this                letter. 

	 	2. 	The
Information will be kept strictly confidential and, without your prior
               written consent, Landlord shall not use the Information for any purpose
other                than in connection with evaluating the Transfer. Landlord also
agrees to                transmit the Information only to those individuals who are
actively and directly                participating in the evaluation of the Company and
who have agreed to comply                with the terms of this letter. 

	 	3. 	The
Information shall not be deemed to include information which falls within
               any of the following categories: 

	 	(a) 	Information
which has come within the public domain through no fault or action           of Landlord
or its representatives;  

	 	(b) 	Information
which was known to Landlord on a non-confidential basis prior to           its disclosure
hereunder; or  

	 	(c) 	Information
which becomes available to Landlord on a non-confidential basis           from any third
party.  

	 	4. 	Landlord,
when requested by you, shall immediately destroy the Information,
               including all notes, copies, reproductions, summaries, analyses, or
extracts                thereof, then in its possession. Such return or destruction shall
not abrogate                Landlord’s continuing obligations under this letter. 

	 	5. 	It
is understood that this letter does not constitute an agreement by either
               party to enter into a lease and does not obligate Landlord or the Company
to                enter into any further discussions or agreements in connection with the
               possibility of entering into a lease. 

	 	6. 	The
terms of this letter shall inure to the benefit of Landlord, the Company and
               their successors and assigns. 

	 	7. 	Notwithstanding
anything to the contrary contained herein, Landlord shall be                entitled to
disclose the Information in accordance with the terms of any court                order,
provided that Landlord provides the Company with prior notice of such
               disclosure.  

2

	 	8. 	The
terms of this letter shall be governed by and construed in accordance with
               the laws of the state in which the Building is located. 

        Please
indicate your acceptance of the terms of this letter by signing the enclosed copy of the
same and returning it to us at the address indicated on the first page of this letter. 

	
	                                                     Very truly yours,

                                                        LANDLORD:

                                                        ________________________________, a(n)

                                                        ___________________________

                                                        By:   ____________________________, a(n)

                                                                 _____________________

                                                                 By:   ________________________, a(n)

                                                                          ________________________

                                                                          By:      ______________________

                                                                          Name: ______________________

                                                                          Title:    ______________________

Acknowledged and Agreed to

this ____ day of ___________, 20__

COMPANY:_________________________

By: 

Name: ______________________________

Title:________________________________ 

3

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