Document:

20-F

DEBENTURE AMENDMENT
AGREEMENT  

Drawn and signed in
Herzlia on November 17, 2005 

By and between:

Formula Vision Technologies (FVT) Ltd.

3 Abba Eban Boulevard, Herzlia

(“Vision”) 

of the first part;  

And

Formula Systems (1985) Ltd.

3 Abba Eban Boulevard, Herzlia

(“Formula”) 

of the second part; 

	Whereas  	Vision
is an Israeli public company whose securities are listed for trading on the Tel Aviv
Stock Exchange Ltd. (the “Stock Exchange”); and -  

	Whereas	Vision
has a debt to its parent company, Formula, of approximately $43 million plus interest and
linkage differentials until December 31, 2006 (the “Balance of the Debt”)
arising from the debenture agreements signed between Formula and Vision in 2001 and 2002
(the “Debenture Agreement”), which is payable under the Debenture
Agreement in cash; and – 

	Whereas 	Formula
has given its consent to grant Vision certain mitigations in the manner of the repayment
of the debt, such that payments in respect of the Balance of the Debt shall be paid in
marketable shares or through the postponement of the payment date thereof upon the
fulfillment of certain conditions, all as set forth below:  

NOW THEREFORE, THE
PARTIES HAVE DECLARED, STIPULATED AND AGREED AS FOLLOWS: 

	1.  	Preamble  

	 	         1.1 	The
Preamble to this Agreement and its Appendices form an integral part hereof.

	 	         1.2 	The
captions in the Agreement are for the purpose of  orientation  only and shall not be used
                  in the construction hereof.

	 	1.3	
The parties shall act in accordance with the provisions of this Agreement upon the signing
hereof; the closing of the transaction shall be executed as provided in clause 5 below.

	2.  	The
Transaction  

	 	2.1	
Vision shall be entitled to make payments to Formula on account of the Balance of the Debt
(“Payments in Respect of the Balance of the Debt”) in any of the
following options:

	 	2.1.1 	In
cash; 

	 	2.1.2	By
means of marketable shares held by Vision, the value of the shares under sale to be
calculated according to the average price of these shares in the 30 days of trading
preceding the transfer of the shares under sale to Formula (the “First Option”),
provided, however, that on the date prescribed for making each payment on account of the
Balance of the Debt, Vision’s cash balances shall be lower than Vision’s debts
to the bank (“Liquidity Conditions”).  

	 	2.1.3 	In
this clause –

	 	
“Vision’s
cash balances” – cash and cash equivalents in Vision’s funds on the date
prescribed in the Debenture Agreement for effecting each relevant payment. 

	 	
“Vision’s
debt to the bank” – Vision’s debts to banks, including guarantees extended
to banks in respect of the debts of Vision’s subsidiaries to banks. 

	 	
“Marketable
shares” – Shares held by Vision in companies whose shares are listed for trading
on the NASDAQ stock exchange, the Tel Aviv Stock Exchange, and London stock exchanges
(including the AIM). 

	 	
“Shares
under sale” – Marketable shares to be transferred by Vision to Formula in
accordance with the terms and conditions of this Agreement. 

	 	2.2	
At any and all times when Vision shall transfer shares under sale to Formula, they shall
be transferred being free and clear of any and all attachments, encumbrances, mortgages,
debts, liens, and/or any and all other third-party rights (except as provided in clause
___ below), and Formula shall acquire the shares under sale from Vision, their value being
calculated as described in clause 2.1.2 above (the “Value of the Shares under
Sale”).

2

	 	2.3	
Insofar as Formula’s General Meeting shall not approve that Payments in Respect of
the Balance of the Debt shall be effected as prescribed in the First Option, then subject
to the fulfillment of the Liquidity Conditions the execution of Payments in Respect of the
Balance of the Debt shall be postponed to the final payment date with no further change to
the Debenture Agreement, all subject to approval by Formula’s General Meeting (the
“Second  Option”). Where the Second Option is not approved, the
Payments in Respect of the Balance of the Debt shall be made in cash and on the dates
prescribed in the Debenture Agreement.

	 	2.4	
The arrangement set forth in this clause 2 shall be in effect with respect to all Payments
in Respect of the Balance of the Debt scheduled for payment in the course of 2005, up to
and including the final payment date for the Balance of the Debt as prescribed in the
Debenture Agreement, December 31, 2006 (the “Final Date”).

	3.  	Representations
by Vision  

	 	
Vision
hereby warrants to Formula as follows:  

	 	3.1	
This Agreement, the transfer of the shares under sale in accordance herewith, insofar as
they are transferred, and the registration of the shares under sale in Formula’s name
are not contrary and/or contradictory to Vision’s incorporation documents and/or to
any agreement whereto Vision is a party and/or to any obligation imposed on Vision by
virtue of any agreement and/or by law.

	 	3.2	
Insofar as until the closing date Vision shall engage with any third party with respect to
its holdings in marketable shares, Vision shall ensure that the agreement is endorsable to
Formula without any further action being required.

	 	3.3	
The only marketable shares in Vision’s possession as at the date of the signing of
this Agreement are shares of FTS – Formula Telecom Solutions Ltd.
(“FTS”); Vision holds 14,536,000 of its ordinary shares. The FTS shares
have been listed for trading on the AIM Market of the London Stock Exchange PLC
(“AIM”) since August 18, 2005 (the “Issue Date”) under a
prospectus; In the framework of the listing of the FTS shares for trading on the AIM,
Vision has undertaken in the lock-in agreement with the underwriter of the issue (the
“Lock-In Agreement”) obligations relating to the sale of the FTS shares,
as follows: it shall not sell the FTS shares for a period of one year from the date of the
issue (the “First Limitation Period”). After the First Limitation Period
has elapsed, Vision shall not offer the FTS shares for sale for a further 12 months, other
than with the consent of the underwriter of the issue, whose consent shall not be withheld
on unreasonable grounds, and subject to internal arrangements between FTS’s
shareholders prior to its flotation. The abovementioned limitations do not apply to the
subsequent transfer of the shares, insofar as they shall be transferred, in accordance
with this Agreement, subject to Formula undertaking these obligations and substituting
Vision, all as set forth in the binding and complete text as provided in the Lock-In
Agreement, which is attached as Appendix 3.3 to this Agreement.

3

	 	3.4	
A draft of Vision’s immediate report submitted through the Magna reporting system
with respect to the transaction under this Agreement is attached hereto as Appendix 3.4.

	 	3.5	
Insofar as shares under sale shall be transferred to Formula, they shall be transferred
as-is, and no representations shall be made in their respect save and except for those
contained in this Agreement.

	 	3.6	
Vision’s Control Committee and Board of Directors have given their approval of the
transaction contemplated in this Agreement, there is no prevention by law or agreement
against Vision’s engagement in this Agreement and the implementation hereof, and no
further approvals or agreements are required save and except as provided in clause 5
below.

	4.  	Representations
by Formula  

	 	4.1	
Formula is a public company lawfully established and incorporated in accordance with the
laws of the State of Israel, and its shares are traded on the Stock Exchange and on
NASDAQ.

	 	4.2	
This Agreement, the acquisition of the shares under sale insofar as they are transferred
to Formula, and the registration of the shares under sale in Formula’s name are not
contrary and/or contradictory to Formula’s incorporation documents, to any agreement
whereto Formula is a party and/or to any obligation imposed on Formula by virtue of any
agreement and/or by law.

	 	4.3	
Insofar as in the future shares under sale shall be transferred to Formula, Formula
covenants to undertake all of Visions obligations relating to the shares under sale.

	 	4.4	
Formula’s Control Committee and Board of Directors have given their approval of the
transaction contemplated in this Agreement, there is no prevention by law or agreement
against Formula’s engagement in this Agreement and the implementation hereof, and no
further approvals or agreements are required save and except as provided in clause 5
below.

4

	5.  	Suspending
Conditions; Closing  

	 	5.1	
The closing of the transaction contemplated hereunder is subject to approval by
Formula’s General Meeting, which has been convened on December 28, 2005, provided,
however, that this approval shall be received by no later than April 30, 2006, or by such
later date insofar as agreed, in advance and in writing, by and between the parties (the
“Qualifying Date”).

	 	5.2	
Where the suspending condition as provided above shall not be fulfilled by the Qualifying
Date, this Agreement shall be deemed to be null and void and invalid, without either of
the parties having any argument and/or claim and/or demand toward the other, and all
provisions of the Debenture Agreement shall apply.

	 	5.3	
Insofar as Formula’s General Meeting has approved the First Option, the shares under
sale shall be transferred to Formula subject to the law and including receipt of approval
by Vision’s General Meeting.

	6.  	General
Provisions  

	 	6.1	
This Agreement may be modified or amended by means of a document signed by both parties.
Each of the parties hereto is entitled to waive a condition, obligation, representation or
stipulation of this Agreement by means of a written document signed by the other party.
Abstention from enforcing a condition of this Agreement shall not prevent the subsequent
enforcement of such condition by the party which had waived its enforcement prior to the
closing, and shall not prevent the enforcement of other terms and conditions of this
Agreement.

	 	6.2	
This Agreement expresses the complete and comprehensive agreement between the parties in
regard to the subjects and matters discussed herein and supersedes and annuls any and all
representations, contracts, negotiations, customs, memoranda, proposals, summaries of
discussions, letters of intent and/or undertaking, and any and all other documents that
had prevailed or had been exchanged (whether orally or in writing) on the aforesaid
subjects and matters by and between the parties prior to the signing of this Agreement.

	 	6.3	
Each of the parties to this Agreement shall pay its expenses sustained with respect to the
negotiations, the engagement in this Agreement and the implementation hereof. Stamp tax,
if applicable, shall be borne by the parties in equal parts. Any taxes, insofar as they
shall apply, shall be paid by the party liable for payment thereof by law.

	 	         6.4 	This
Agreement does not grant any rights to any third party.

5

	 	6.5	
Where Formula’s General Meeting shall approve the First Option and shares under sale
shall be transferred to Formula, insofar as Formula shall sustain any damage in respect of
a representation made by Vision in which respect it shall transpire that such
representation was incorrect and/or misleading under the circumstances in which it was
made, Vision shall indemnify Formula in respect of any and all amounts, expenses and
damages, including legal expenses and reasonable attorneys’ fees actually sustained
by Formula as a result, provided, however, that all of the following cumulative conditions
are fulfilled: (a) such damage cumulatively exceeds an amount of $100,000; (b) the amount
of the maximum cumulative indemnity Vision shall be bound to pay as aforesaid shall not
exceed the cumulative value of the shares under sale which were transferred to Formula
under this Agreement; (c) the demand was submitted to Formula by no later than one year
after the Final Date, provided, however, that Formula had informed Vision of the receipt
thereof by no later than 30 days after its receipt as aforesaid; (d) Vision shall have the
right to manage the defense and/or settlement in the framework of such demand. Formula
covenants to assist Vision in the management of any such proceeding and to provide to
Vision all information and documents in its possession in relation thereto. Formula shall
not agree to any settlement without receiving Vision’s consent thereto, in advance
and in writing.

	 	6.6	
Notices in accordance with this Agreement shall be given in writing and delivered in
person to the addressee’s officer, or shall be sent by registered mail, stamped, or
by facsimile transmission (an approved copy of the facsimile transmission shall be
simultaneously sent via express messenger). Notices hereunder shall be deemed to have been
delivered upon their delivery by hand, or four days after the date of dispatch by
registered mail to the following addresses:

	 	
To Vision: 

3 Abba Eban Boulevard, Herzlia
 To the attention of the Company CEO and Legal
Counsel 
Facsimile: 09-9598050  

	 	
To Formula: 

3 Abba Eban Boulevard, Herzlia
 To the attention of the Company CEO and Legal
Counsel 
Facsimile: 09-9598877  

	 	
Or to
such other addresses or persons of the party to the Agreement, which have been disclosed
by that party to the Agreement to the other party in writing. 

	 	
IN
WITNESS WHEREOF THE PARTIES HAVE SIGNED:  

		——————————————
Formula Vision Technologies
(FTV) Ltd.	——————————————
Formula Systems (1985) Ltd. 

620-F

EXHIBIT 4.27  

CONFIDENTIAL TREATMENT 

REQUESTED PURSUANT TO
RULE 24b-2 

Certain portions of this exhibit
have been omitted pursuant to a request for confidential treatment under Rule 24b-2 of the
Securities exchange Act of 1934. The omitted materials have been filed separately with the
Securities and Exchange Commission. 

Execution version  

CONFIDENTIAL 

AMENDMENT #4 

TO 

OEM PURCHASE AND SALE
AGREEMENT NO. 011449 

BETWEEN SELLER
CORPORATION AND NORTEL NETWORKS LIMITED 

This Amendment #4 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 Networks) and AudioCodes Ltd., an Israeli corporation with offices located at 1
Hayarden Street, Airport City Lod, 70151 (Seller), will be effective as of April 28, 2005. 

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

WHEREAS, Nortel Networks and Seller
wish to amend the Agreement for the purposes of adding Exhibits O and P, Exhibits A-4,
A-5, A-6 and A-8 and certain general terms and conditions; 

Now, therefore, the parties agree to
amend the Agreement as follows: 

	A.  	Add
new Subsection 6.5 to the Agreement as follows: 

	 	
“6.5
Business Continuity Planning 

	 	6.5.1 	Seller
represents and warrants that it will implement an effective business continuity plan to
be effective by January, 1st 2006 that will ensure that Seller is able to continue to
provide Products when the manufacture or delivery of Products isinterrupted for
any reason outside of Seller’s reasonable control (“BCP”) and will
maintain and update the BCP at least annually during the Term for each of its
manufacturing and operations sites. Seller will perform a timely assessment after the
occurrence of any event that may delay production or shipping of Products for a period of
more than 10 business days. Seller will activate the BCP, if Seller determines as a
result of its assessment that a Seller site
will be unable to produce or ship Products for a period of more than 10 business days.   

PAGE 1 OF 12

	 	6.5.2 	The
BCP will contain, at a minimum, provisions for (a) a risk assessment and business impact
analysis, (b) a prevention/mitigation plan, and (c) a resumption of services plan,
including a recovery/restoration plan. The preceding will cover, but not be limited to,
(i) Product documentation storage and protection (including, but not limited, to storage
of design documents, tools, process and fixtures), (ii) information systems security and
redundancy, and (iii) a detailed plan with relevant Contract Manufacturers to rapidly
recover the loss of Product manufacturing facilities or Product delivery capability.  

	 	6.5.3 	Seller
will provide a detailed outline of the BCP within 10 business days of Nortel Networks’ request
for the then-current BCP. Certain details of the BCP will not be shared between the
parties.  

	 	           6.5.4 	Seller's
implementation of the BCP will be at no additional cost to Nortel Networks 

	 	6.5.5 	At
Nortel Networks’ request and at no additional charge to Nortel Networks Seller will
participate in discussions initiated by Nortel Networks for purposes of evaluating and
coordinating and integrating the business continuity plans of its suppliers with Nortel
Networks’ overall business continuity plan.  

	B.  	Add
new Subsection 23.11 to the Agreement as follows: 

	 	“23.11	Information Systems Security 
– If Nortel Networks grants
Seller access to Nortel Networks’ information systems, Seller will safeguard
the security of Nortel Networks’ information systems, as set out in Exhibit O,
attached to and incorporated in this Agreement.”

	C.  	Add
new Exhibit O “Information Systems Security” to the Agreement,
               attached to and incorporated in this Amendment 4 as Attachment 1. 

	D.  	Section
2.1.2 of Exhibit A-1 is hereby deleted in its entirety. 

	E.  	The
tables labeled “Vocoders Indemnification” in Sections 2.2.1,
               2.2.2, 2.2.3, and 2.2.4 of Exhibit A-1 are hereby deleted in their
entirety.                However, it is noted that AudioCodes only offers Products under
this agreement                that support G.711, G.726, G.723.1 and G,.729A. This
Agreement does not cover                indemnification for other vocoders. Both parties
agree to discuss and mutually                agree on how to handle indemnity for
additional vocoders if these additional                vocoders are added as part of an
agreed change in the Specifications. 

	F.  	The
two lines under the heading “Indemnification” appearing in the
               table in Section 2.2.5 of Exhibit A-1 are hereby deleted in their
entirety.                However, it is noted that AudioCodes only offers Products under
this agreement                that support G.711, G.726, G.723.1 and G,.729A. This
Agreement does not cover                indemnification for other vocoders. Both parties
agree to discuss and mutually                agree on how to handle indemnity for
additional vocoders if these additional vocoders are added as part of an agreed change in the Specifications.

PAGE 2 OF 12

	G.  	Section
1(c) of Exhibit A-2 is hereby deleted in its entirety.  However,  it is noted that
AudioCodes only offers Products under this agreement that support G.711, G.726, G.723.1
and G,.729A. This Agreement does not cover indemnification for other vocoders. Both
parties agree to discuss and mutually agree on how to handle indemnity for additional
vocoders if these additional vocoders are added as part of an agreed change in the
Specifications. 

	H.  	The
two lines under the heading “Indemnification” appearing in the
               table in Section 1.1 of Exhibit A-2 are hereby deleted in their entirety.
               However, it is noted that AudioCodes only offers Products under this
agreement                that support G.711, G.726, G.723.1 and G,.729A. This Agreement
does not cover                indemnification for other vocoders. Both parties agree to
discuss and mutually                agree on how to handle indemnity for additional
vocoders if these additional                vocoders are added as part of an agreed
change in the Specifications. 

	I.  	The
following paragraph in Section 1 of Exhibit A-3, which is Attachment 1 to
               Amendment No. 1 effective May 1, 2003, is hereby deleted in its entirety: 

	 	
“With
respect to the cost reduction obligation described in Section 3 below, Seller is not
obligated in its cost reduction calculations to include the cost of indemnifying Nortel
Networks against third party intellectual property claims related to Nortel Networks
purchase of Product A0514478, which includes Voice Codec G.723.1 and G.729A. For purposes
of such cost reduction calculations the cost for Voice Codec indemnification included in
the Price for A0514478 is [*] per port per Codec.” 

	J.  	For
the avoidance of doubt, the deletion of language and references to                “Indemnification” as
set forth in Articles D, E, F, G, H and I above                in no way modifies or
reduces Seller’s obligation to provide                indemnification protection to
Nortel Networks under Section 18 of the Agreement.                However, it is noted
that AudioCodes only offers Products under this agreement                that support
G.711, G.726, G.723.1 and G,.729A. This Agreement does not cover
               indemnification for other vocoders. Both parties agree to discuss and
mutually                agree on how to handle indemnity for additional vocoders if these
additional                vocoders are added as part of an agreed change in the
Specifications. 

	K.  	Add
new Exhibit A-4 “Mediant 5000 Trunk Gateway Product” to the
               Agreement, attached to and incorporated in this Amendment 4 as Attachment
2. 

	L.  	Add
new Exhibit A-5 “M2K – CS2K DC Power Product” to the
               Agreement, attached to and incorporated in this Amendment 4 as Attachment
3. 

	M.  	Add
new Exhibit A-6 “IPM2000 – CS2K AC Powered Media Server                Product” to
the Agreement, attached to and incorporated in this Amendment 4                as
Attachment 4. 

          	[*]  Confidential 

               

PAGE 3 OF 12 

	N.  	Add
new Exhibit A-7 “Mediant 1000 (MG3100) – H.248 and Mediant 1000
               (MG3100) -SIP” to the Agreement, attached to and incorporated in this
               Amendment 4 as Attachment 5. 

	O.  	Added
new Exhibit O “Hazardous Materials Regulations” to the
               Agreement, attached and incorporated in this Amendment 4 as Attachment 6. 

Except for this Amendment No. 4, in
all other respects the Agreement shall remain unchanged. 

IN WITNESS WHEREOF, the parties have
caused this Amendment No. 4 to the Agreement to be signed by their duly authorized
representatives. 

		
		
		
		
		
	NORTEL NETWORKS LIMITED 	AUDIOCODES LTD. 
	 
	 
	By:                                                          	By: /s/ Ben Rabinowitz 
	 
	 
	Name:                                                    	Name: Ben Rabinowitz 
	                   (Type/Print)	               (Type/Print)
	 
	 
	Title:                                                     	Title: Vice President 
	 
	 
	Date:                                                     	Date: October 10, 2005 

PAGE 4 OF 12 

ATTACHMENT 1 

EXHIBIT O 

INFORMATION SYSTEMS
SECURITY  

          	1. 	
               Access – Seller shall ensure that access and use (either on-site or
               remotely) of Nortel Networks’ Technology Resources by Seller or any
               non-Nortel Networks party performing under the Agreement (each an Outside
               Access Party) shall be limited only to access and use needed for
               performance. “Technology Resources” means network systems and services
               (voice and/or data) such as the Inter/Intranet gateways , electronic-mail and
               telephony and include, but are not limited to its computer systems, all system
               hardware, all hard drives, electronic media, storage areas, files and desks and
               information services (i.e. remote access, web/file servers & services,
               etc.). The Outside Access Party will provide Nortel Networks with the name of
               each of its personnel who will access Nortel Networks’ computer system
               during their performance under the Agreement (Authorized Workers).
               Authorized Workers will establish and maintain a unique identifier for access
               and follow the same computer system security rules as Nortel Networks personnel.
               The security requirements will also apply to Authorized Workers’ access and
               use of Nortel Networks’ electronic mail system, electronic switched
               network, (either directly or via a direct inward service access [DISA] feature)
               or any other Nortel Networks property, equipment or service. 

               

	 	
Unless
explicitly authorized in writing by Nortel Networks, Outside Access Party must not (i)
attempt to reverse engineer, disassemble, reverse translate, decompile or in any other
manner decode any element of the Technology Resources; (ii) make modifications,
enhancements, adaptations or translations, in whole or in part, to or of any element of
the Technology Resources; (iii) make copies of any element of the Technology Resources;
(iv) probe host computers or networks; (v) breach or examine the security controls of a
host computer, network component or authentication system; (vi) monitor data on any
network or system; (vii) interfere with the service of any user, host or network, or
overload a server, network connected device, or network component; (viii) originate
malformed data or network traffic that results in damage to, or disruption of, a service
or network connected device; (ix) forge data or misrepresent the origination of a user or
source.  

	1.1  	Failure
of Access- Outside Access Party understands that its access to and use of the
Technology Resources may from time to time be interrupted due to circumstances within or
outside the reasonable control of Nortel Networks. Nothing in this Agreement shall be
considered a promise or covenant to deliver access to the Technology Resources. Aside
from the access as provided herein, no license of any patent, copyright, or any other
right in respect of the Technology Resources is granted to Outside Access Party by virtue
of access to the Technology Resources. 

	1.2  	Waiver
of Liability  – Notwithstanding any terms and conditions in this Agreement,
Nortel Networks hereby excludes all representations, warranties and conditions, express
or implied, including any representations, warranties or conditions of accuracy,
sufficiency, suitability or non-infringement. Outside Access Party hereby waives any
liability on the part of Nortel Networks for any damages, losses or expenses incurred by
Outside Access Party as a result of Outside Access Party’s access to and use of the
Technology Resources (including, without limitation, the inadvertent accessing of a
computer virus or other harmful computer file or program) or failure to access the
Technology Resources, whether arising in contract, tort or otherwise. 

	1.3  	Confidential
Information and Personal Data – All passwords, identification numbers and
information obtained during the Outside Access Party’s use of Nortel Networks’ Technology
Resources are Confidential Information. 

	1.4  	Unauthorized
Access  – The Outside Access Party will cooperate in the investigation of any
apparent unauthorized access to Nortel Networks’ customers or any activity resulting
in a security breach as defined under Nortel Networks’corporate policies, procedures
or standards. 

PAGE 5 OF 12 

	2.  	Segregation
Wall– Using procedures documented for                Nortel
Networks by Contractor and reviewed and approved by Nortel Networks’               security
team, the Outside Access Party will ensure that Authorized Workers
               implement effective isolation and containment procedures (for example
separate                password protected folders or storage media that facilitates
separation and                prevents open access or disclosure to non -authorized
workers or third party                companies) for the protection of Nortel Networks
technologies and intellectual                properties to ensure non-disclosure, held in
confidence, by its personnel who                are assigned to the account of a known or
potential Nortel Networks competitor                (Competitors). The Outside Access
Party must implement procedures to logically                segregate, by normal
commercial means, all Nortel Networks information, data and                communications
(including, but not limited to Confidential Information) from                Competitors
and Outside Access Party personnel who are not Authorized Workers
               (Segregation Wall). 

	3.  	Inadequate
Security – If Nortel Networks notifies the                Outside
Access Party that the Segregation Wall is not working and makes a
               reasonable request to change or replace the Segregation Wall; the Outside
Access                Party will comply with Nortel Networks’ request 

	3.1  	Security
Audit – Under Section 9.6 of this Agreement Nortel Networks may audit the
Segregation Wall. In addition to the rights and obligations set out in Section 9.6
Outside Access Party hereby grants Nortel Networks reasonable access to those of its
computer facilities that it uses or intends to use in association with the accessing the
Technology Resources for the purposes of assessing the on-going adequacy of Outside
Access Party’s security measures and procedures in effect on such computer
facilities, and shall assist and co-operate with Nortel Networks in carrying out any such
assessment. If Nortel Networks determines that Outside Access Party’s security
measures and procedures are inadequate to prevent unauthorized access to or use of the
Technology Resources, Nortel Networks may immediately deny further access until Outside
Access Party takes such measures as Nortel Networks may reasonably require. 

	3.2  	Notice
of Security Breach – The Outside Access Party will promptly notify Nortel
Networks in writing in the event (a) there is a general breach of security, the
appearance of a breach or a breach attempt at the Outside Access Party’s facilities
that may be involved in performing under the Agreement; or, (b) Outside Access Party
personnel (that are not Authorized Workers) or third parties breach the Segregation Wall.
At its expense the Outside Access Party will do whatever is necessary to preserve the
integrity of the Technology Resources and Confidential Information and correct the breach
and prevent it from recurring. 

PAGE 6 OF 12 

ATTACHMENT 2 

Exhibit A-4 

Mediant 5000 Trunk
Gateway Product 

	
HA
Mediant 5000 VoIP in a N+1 Redundant Bearer Configuration  

	MG5000	Mediant 5000 Redundant Base	[*]
	TP1610B	TP1610B cPCI 16 E1/T1, cPSB, IP	[*]
	TP1610B/HALF	TP1610B/HALF cPCI 16 E1/T1, cPSB, IP	[*]
	HW/RTM/2TELCO/CPSB/APB	RTM for TP1610,cPSB, active board (one per "N" Board)	[*]
	HW/RTM/REDUNDANCY/CPSB/APB	RTM for TP1610,cPSB, standby board (one per "+1" Board)	[*]
	TP6310A/2016/OC-3	TP6310, 1xOC-3, 2016 Channels	[*]
	TP6310A/2016/OC-3/HALF	TP6310, 1xOC-3, Half, 2016 G711 Channels	[*]
	HW/RTM/OC-3/CPSB/APB	RTM for TP-6310, 1 OC-3	[*]
	HW/RTM/REDUNDANCY/6310/CPSB/APB	RTM for TP6310,cPSB,standby board ("+1" board)	[*]
	SW/EMS/Server (One per EMS Server)	EMS Server s/w license.	[*]

– Cost Reduction
year over year     [*] 

Available Software
Options:  

	DUA	SigTran-based DUA (per active board)	[*]
	SW/IP-Sec	IP-Sec for OAM/Call Control (per active board)	[*]
	SW/BearerEncryption	Bearer Encryption (per active board)	[*]
	SW/PacketCable	PacketCable Package (TGCP) not incl bearer encryption (per active board)	[*]
	SW/M2UA/SIGTRAN/2	M2UA Sigtran Interworking SW (per 2 channels) Max of 8 links per board	[*]

Notes -AudioCodes does not provide
the EMS hardware, only a license to use our EMS server software. EMS can support up to 100
Mediant 5000s. 

TP 6310 in Mediant 5000 will be available in 2006 for sale to service providers

Price reductions on TP6310 will not
occur until April, 2007, unless mutually agreed 

In certain deployments of Mediant
5000, the fees, terms and the cap on support payments may not apply if AudioCodes is requested to provide support
beyond that is required in the Agreement 

	M5K (MG3500) FRUs 	PEC 	Price 

	HW/ES-1/NN	NTRX51XJ	[*]
	HW/RTM/LIM-1/NN	NTRX51XV	[*]
	HW/SC-2/NN	NTRX51XT	[*]
	HW/SA1C/RTM/ALARM/NN	NTRX51XH	[*]
	HW/FM-2/NN	NTRX51XP	[*]
	HW/PS-2/AC/NN	NTRX51XR	[*]
	HW/PS-2/DC/NN	NTRX51XQ	[*]
	HW/AF-2/NN	N/A	[*]
	HW/PEM-1/DC/NN	NTRX51XK	[*]
	HW/APM-2/DC/NN	NTRX51XN	[*]
	HW/PEM-1/AC/NN	NTRX51XL	[*]
	HW/APM-2/AC/NN	NTRX51XM	[*]
	HW/RTM/TP1610/ACTIVE/NN	NTRX51XF	[*]
	HW/RTM/TP1610/STDBY/NN	NTRX51XG	[*]
	HW/TP1610B/480/16SPAN/NN	NTRX51XE	[*]
	HW/TP1610B/480/16SPAN/G711/NN	NTRX51XD	[*]
	HW/GP5000/Mediant/NN	NTRX51XC	[*]

[*] Confidential 

PAGE 7 OF 12 

Lab Hardware M5K– In
coordination with Amendment #011449 to OEM Purchase and Sale Agreement No. between the
parties, Seller will provide Nortel Networks with up to [*] lab units free for internal
and external customer labs or trials at Nortel Networks’ discretion.  
At least three (3) of these free M5K units are to be used for external customers and both
parties must mutually agree on which Nortel Network customers will receive these M5K
units. Any units provided for free in calendar year 2005 will be counted in meeting this
obligation. For any further internal lab requirements Seller will provide an incremental
[*] off Nortel contracted price.  Requests for ‘lab hardware’ are to be
made in writing by the relationship prime. 

PAYMENT TERMS: [*]  

PAGE 8 OF 12 

ATTACHMENT 3 

Exhibit A-5 

M2K – CS2K DC
Power Product 

M2K – CS2K Pricing
for DC Power: 

	Part Number 	Description 	Price 
	Mediant2000/1Span/DC/H248/NN	Mediant 2000, 1 span, DC power, H.248	[*]
	Mediant2000/2Span/DC/H248/NN	Mediant 2000, 2 span, DC power, H.248	[*]
	Mediant2000/4Span/DC/H248/NN	Mediant 2000, 4 span, DC power, H.248	[*]
	Mediant2000/8Span/DC/H248/NN	Mediant 2000, 8 span, DC power, H.248	[*]
	Mediant2000/16Span/DC/H248/NN	Mediant 2000, 16 span, DC power, H.248	[*]

[*] Confidential 

PAGE 9 OF 12 

ATTACHMENT 4 

Exhibit A-6 

IPM2000 – CS2K AC
Powered Media Server Product 

	Part Number 	Description 	Price 
	IPM2K/IVR/LI/TT/120/2AC	IPMedia 2000, 120 port AC Power	[*]
	IPM2K/IVR/LI/TT/240/2AC	IPMedia 2000, 240 port AC Power	[*]
	IPM2K/IVR/LI/TT/CONF/120/2AC	IPMedia 2000, 120 port Conferencing AC Power	[*]
	IPM2K/IVR/LI/TT/CONF/240/2AC	IPMedia 2000, 240 port AC Conferencing AC Power	[*]

[*] Confidential 

PAGE 10 OF 12 

ATTACHMENT 5 

Exhibit A – 7 

	Mediant 1000 (MG 3100) - H.248 	Hardware Price 	SIP Charge 	Total 
	Mediant1000/1Span/2AC/H248/NN	[*]	[*]	[*]
	Mediant1000/2Span/2AC/H248/NN	[*]	[*]	[*]
	Mediant1000/4Span/2AC/H248/NN	[*]	[*]	[*]
	 	[*]	[*]	[*]
	Mediant1000/1Span/DC/H248/NN	[*]	[*]	[*]
	Mediant1000/2Span/DC/H248/NN	[*]	[*]	[*]
	Mediant1000/4Span/DC/H248/NN	[*]	[*]	[*]

	Mediant 1000 (MG 3100) - SIP 	 	 	 
	Mediant1000/1Span/2AC/SIP/NN	[*]	[*]	[*]
	Mediant1000/2Span/2AC/SIP/NN	[*]	[*]	[*]
	Mediant1000/4Span/2AC/SIP/NN	[*]	[*]	[*]
	 	[*]	[*]	[*]
	Mediant1000/1Span/DC/SIP/NN	[*]	[*]	[*]
	Mediant1000/2Span/DC/SIP/NN	[*]	[*]	[*]
	Mediant1000/4Span/DC/SIP/NN	[*]	[*]	[*]

[*] Confidential 

PAGE 11 OF 12 

ATTACHMENT 6 

Exhibit O 

HAZARDOUS MATERIALS
REGULATIONS  

Seller will notify Nortel Networks
about the hazardous and toxic materials, as required of it by the regulations promulgated
under all applicable laws, rules and regulations of any applicable governmental entity
including, without limitation, the following U.S. and E.U. laws: 

     	(a)	
          U.S. laws – The Toxic Substances Control Act, Resource Conservation and
          Recovery Act of 1976, Hazardous Materials Transportation Act, Occupational
          Safety and Health Act of 1970, Comprehensive Environmental Response,
          Compensation and Liability Act of 1980, Consumer Product Safety Act, Radiation
          Control for Health and Safety Act of 1968, Clean Air Act, and Clean Water Act ,
          and 

          

     	(b)	
          E.U. laws – The following European Union Environmental Directives:
          Eco-design of Energy Using Product (EuP), Waste from Electrical and Electronic
          Equipment (WEEE) directive (effective August 2005) and Restriction on Use of
          Certain Hazardous Substances (RoHS) (effective July 2006) directive. With
          respect to the RoHS Directive, Seller must be able to demonstrate to Nortel
          Networks’ satisfaction by May 30, 2006 that no lead, hexavalent chromium
          cadmium, mercury or polybrominated biphenyls (PBB)/polybrominated diphenyl
          ethers (PBDE) are present in any product covered by the ROHS Directive used or
          provided by Seller in providing the Products in the EU, except where exemptions
          allowing the use of such substances apply under applicable law. Seller shall
          monitor the implementation and local requirements of WEEE in relevant EU
          countries and shall inform and discuss with Nortel Networks on a timely basis of
          its plan regarding implementation and management of the WEEE and RoHS directives
          for Nortel Networks’ review and further discussion.. 

          

PAGE 12 OF 12

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