Exhibit 10a

                             CONTRACT OF EMPLOYMENT

      Made and signed in Tel Aviv and New York this 28th day of May 1997

BETWEEN:    1)    AMPAL (ISRAEL) LTD. - P.C.

                  of 111 Arlozorov street, Tel-Aviv 62098 ISRAEL

                  (hereinafter referred to as "Ampal Israel" or "the Company")

            2)    AMPAL - AMERICAN ISRAEL CORPORATION
                  a company registered in New York, USA

                  of 1177 Avenue of the Americas, New York, New York 10036, USA
                  (hereinafter referred to as "Ampal USA")

                                                                of the one part;

AND:              MR. YEHOSHUA GLEITMAN - I.D. NO. 008459828 of Tabenkin 33,
                  Tel-Aviv, ISRAEL (hereinafter referred to as "the Employee")

                                                              of the other part.

WHEREAS:          Ampal Israel is a subsidiary of and fully owned and controlled
                  by Ampal USA;

AND WHEREAS:      the Company wishes to employ the Employee as the
                  chief executive officer (CEO) of Ampal Israel (and/or in
                  another senior position therein), and, within the scope of
                  such position, he may also be required to operate in an
                  executive capacity at Ampal USA and companies related thereto,
                  all as specified below in this contract;

AND WHEREAS:      the Employee agrees to act in the said position on
                  the terms and conditions specified below in this contract;
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AND WHEREAS:      the provisions of any collective agreement, collective
                  arrangement and/or any other agreement or arrangement, save
                  for this contract, shall not apply to the Employee.

          ACCORDINGLY, IT IS WARRANTED, PROVIDED AND AGREED BETWEEN THE
                              PARTIES AS FOLLOWS:

1.          GENERAL

            1.1   The recitals and appendices to this contract constitute an
                  integral part hereof and shall be read together herewith.

            1.2   This contract revokes any previous understandings and/or
                  agreements which prescribed the terms and conditions of the
                  Employee's employment by the Company and his remuneration,
                  whether made in writing, orally or by way of the parties'
                  conduct. All the terms and conditions of the Employee's
                  employment with the Company and the companies are only as
                  provided in this contract (including in the allotment
                  agreement as defined below), and the terms and conditions of
                  any other arrangement whatsoever, including any collective
                  agreement or collective arrangement or practice whatsoever,
                  applicable or that shall be applicable to any of the other
                  companies' employees, shall not apply to the Employee.

            1.3   Definitions

                  In this contract, the following expressions shall have the
                  meanings set forth alongside them:

            "The companies"         means Ampal Israel, Ampal USA,
                                    any subsidiary thereof and any company
                                    controlled directly or indirectly by Ampal
                                    Israel or Ampal U.S.A.
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                                      -3-


            "CPI"                   means  the  consumer   price  index,   all
                                    states,  as  published   annually  by  the
                                    United States Department of Labor.

2.          TERM OF THE CONTRACT

            The Company agrees and undertakes to employ the Employee as its
            chief executive officer (CEO) as specified below (and/or in another
            senior position) commencing from the date of signing this contract
            and until the termination hereof as provided in clause 9 below
            (hereinafter referred to as "the term of the contract"), and the
            Employee agrees and undertakes to perform his position during the
            term of the contract and to perform all his other obligations
            pursuant hereto.

3.          DUTIES AND POWERS

            3.1.  The Employee undertakes to manage Ampal Israel and its
                  subsidiaries, to operate and advance their business in all
                  spheres and to act to the best of his ability in order to make
                  the companies profitable and successful. The Employee shall
                  dedicate all his business time and energy to the business of
                  the Company and the other companies, and shall invest his best
                  efforts to advance their affairs and business, directly and
                  through the executive. Without derogating from the generality
                  of the aforegoing, within the scope of his duties in the
                  companies the Employee shall manage Ampal Israel, and shall
                  perform certain management and executive duties for Ampal USA
                  and companies related thereto, and in such context he shall
                  engage inter alia (but not only) in the supervision and
                  management of existing investments, in the location,
                  performance and management of new investments, in the
                  management of personnel, in financial management and in
                  reporting etc.

            3.2   In addition, the Employee's duties in respect of the companies
                  shall include, inter alia, aspects relating to serving as a
                  senior executive and 
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                                      -4-


                  being involved in the management of Ampal USA, as a public
                  company registered in the USA whose securities are traded in
                  the USA, including deliberations and decisions regarding or
                  effected by securities laws and laws relating to taxation in
                  the USA and in Israel, as well as duties relating to public
                  relations, the raising of capital, strategic planning and the
                  like, as directed from time to time by the president of the
                  Board of Directors or Executive Committee of Ampal U.S.A.

            3.3   The Employee's powers and duties in the companies shall be in
                  accordance with the resolutions, instructions and guidelines
                  of the Company's board of directors or those boards of
                  directors of companies in respect of which the Employee
                  performs management or executive functions pursuant to this
                  contract, as advised to him from time to time.

            3.4   The Employee undertakes to give the companies' boards of
                  directors and/or any of their members appropriate reports and
                  other information in connection with the companies' affairs or
                  business, on the dates and in the manner that shall be
                  required by the companies' boards of directors.

4.          PERSONAL TRUST

            4.1.  The Employee undertakes to perform his duties diligently and
                  loyally and to use all his qualifications, knowledge and
                  experience for the companies' benefit. The companies undertake
                  that during the term of the Employee's employment, they shall
                  grant him appropriate employment terms and conditions as
                  specified in the provisions of this contract and subject
                  thereto.

            4.2   During the term of his employment with the Company, the
                  Employee may not engage in any additional employment
                  whatsoever, for payment or otherwise, without obtaining the
                  prior written approval of the chairman of the Company's board
                  of directors.
<PAGE>
                                      -5-


                  The Employee may also not carry on any independent business
                  activities during such period, whether for consideration or
                  otherwise, including as employee, consultant, partner, agent,
                  broker, manager, provider of services and/or in another manner
                  whatsoever (save for passive investments of not more than 5%
                  in companies whose shares are listed for trading on a major
                  stock exchange or market in Israel or the United States),
                  without obtaining prior written approval as aforesaid.

            4.3   The Employee undertakes that throughout the term of the
                  contract he shall not directly or indirectly compete with the
                  companies and or/or their business, that he shall maintain
                  confidentiality in all respects relating to the business and
                  affairs of the companies or any other entity related thereto
                  and that he shall not howsoever prejudice the companies'
                  reputation, its customer base and/or business relationships.

                  The Employee further undertakes not to place himself in a
                  position of conflict of interests which might influence the
                  performance of his duties and/or obligations pursuant to this
                  contract, and without derogating from the aforegoing, he
                  undertakes not to place himself in the position of an
                  interested party (within the meaning thereof in the Securities
                  law, 5728-1968) in a business competing with any of the
                  companies.

            4.4   For the avoidance of doubt, it is expressed that the
                  provisions of this clause do not derogate from any liability
                  and/or responsibility imposed upon the Employee at law, by
                  agreement and/or by custom, including the provisions of clause
                  10 below.

5.          SALARY

            5.1   In consideration for his employment with the Company and the
                  other companies, in consideration for all his services to them
                  and in 
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                                      -6-


                  consideration for the performance of all his obligations
                  pursuant hereto, the Company shall pay the Employee a gross
                  monthly salary in an amount in NIS equal to US$ 20,000,
                  adjusted annually (as of 31 December of each calendar year
                  beginning December 31, 1997), according to the rate of
                  increase in the CPI such adjustment to be made using 1996 as
                  the base year (hereinafter referred to as "the salary").

            5.2   The salary shall be paid to the Employee once a month on the
                  2nd of each month in respect of the preceding calendar month
                  of employment.

6.          COMPANY CAR

            The Company shall make available to the Employee a private passenger
            car of a value of up to NIS 150,000 for the Employee's personal use.
            The Company shall bear all the expenses involved in the car's use
            and maintenance. The value of the use of the car for income tax
            purposes shall be grossed up and added to the salary, but shall not
            be recorded as part of his salary for any other purpose, including
            for the purpose of calculating his social rights.

7.          SOCIAL RIGHTS & REIMBURSEMENT OF EXPENSES

            7.1   The Employee shall be entitled to social rights based on the
                  salary as defined above, as follows:

                  (a)   Pension fund - Based on the Salary, the Company and the
                        Employee shall allocate the customary accepted amounts
                        to a pension fund on behalf of the Employee, as
                        established by law.

                        The Company shall gross-up and/or bear any undeductable
                        expenses derived of this allocation.
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                                      -7-


                  (b)   Compensation fund - Based on the salary, the Company
                        shall allocate the customary and acceptable amounts to a
                        compensation fund on behalf of the Employee.

                  (c)   Professional fund - Based on the salary the Company
                        shall allocate the cotomary accepted amounts to a
                        professional education fund on behalf of the Employee.

                        The Company shall gross-up and/or bear any undeductable
                        expenses derived of this allocation.

                  (d)   Yearly  vacation - The  Employee  shall be
                        entitled to a yearly  vacation of up to 21
                        days a year.  Any  vacation  time not used
                        during   any   given   year  or  the  year
                        succeeding  it may not be carried  forward
                        into later years,  and the  Employee  will
                        not  be   entitled   to   any   additional
                        compensation    on   account   of   unused
                        vacation  time,  except as may be required
                        by Law. All  vacations  shall be scheduled
                        at mutually acceptable times.

                  (e)   the  employee  shall be  entitled  to sick
                        leave  according to to applicable  Israeli

                        law.

            7.2   The Company shall bear the expenses which the Employee shall
                  be required to expend in order to perform his duties in the
                  companies, upon submission of proper documentation and only in
                  accordance with Company policies in effect from time to time.
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                                      -8-


                  In addition, the Employee shall be entitled to Customary
                  benefits as accepted among the senior employees of the
                  Company.

8.          PLAN FOR THE ALLOTMENT OF SHARES AND OPTIONS

            At or about the time of executing this contract, the parties shall
            execute an agreement for the allotment of shares and for the
            allotment of options to the Employee as part of the consideration
            for the performance of his duties in the companies (in addition to
            his salary and ancillary conditions), subject to and in accordance
            with the provisions of section 102 of the Israeli Tax Ordinance -
            all as specified in the said agreement (hereinafter referred to as
            "the allotment agreement").

            The allotment agreement shall be deemed an integral part of his
            contract and the two shall be viewed together.

            Notwithstanding any other provision, including the provisions of the
            allotment agreement, it is hereby agreed that from the date on which
            any of the parties notifies the other of its/his wish to terminate
            this contract (whether in accordance with the provisions of clause 9
            below or in any other manner) or commencing from the date on which
            the Employee's employment with the Company ceases, whichever is the
            earlier, the Employee shall not be entitled to any shares and/or
            options in addition to those already transferred to the trustee (as
            defined in the allotment agreement) until such date and, without
            derogating from the generality of the aforegoing, it is expressed
            that upon the giving of notice as aforesaid, the Employee shall not
            be entitled to the allotment of additional shares and/or options, in
            respect of his activities performed for the Company during the
            transition period specified in sub-clause 10.1 below.

9.          TERMINATION OF THE CONTRACT

            9.1   Notwithstanding the foregoing, any of the parties may
                  terminate this contract by giving the other prior written
                  notice of at least three months for 
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                                      -9-


                  each year (or portion thereof) of employment, up to a maximum
                  of nine months (hereinafter referred to as "the prior notice
                  period"), and in such event the terms and conditions specified
                  in clause 10 shall inter alia apply. For example, at any time
                  during the first year of employment, the prior notice period
                  shall be three months; during the second year of employment,
                  the prior notice shall be six months; and thereafter the prior
                  notice period shall be nine months.

            9.2   Notwithstanding the provisions of sub-clause 9.1 above and in
                  addition thereto, the Company may terminate this contract by
                  giving at least two weeks' prior written notice on the
                  occurrence of at least one of the following incidents, and in
                  such event such two week period shall be deemed the prior
                  notice period for all intents and purposes:

                  9.2.1 if the Employee commits a fundamental breach of this
                        contract, including if he performs acts or omissions
                        involving gross negligence, willful misconduct, fraud or
                        embezzlement on his part, and he does not rectify the
                        breach within 15 days of the date on which he receives
                        written warning to do so;

                  9.2.2 if the Employee is convicted in a final judgment of an
                        offence involving moral turpitude;

                  9.2.3 if the Employee sustains a permanent disability (as
                        determined by the Company's Board of Directors), or
                        protracted illness (at least three months) or if his
                        legal capacity is limited and in consequence thereof he
                        is unable to continue performing his duties, or if he is
                        prohibited or 
<PAGE>
                                      -10-


                        prevented for any other reason from continuing to act 
                        in his position pursuant to this contract.

            9.3   In the event that one party notifies the other of its/his wish
                  to terminate this contract, the Company may, but is not bound,
                  in its exclusive discretion, require that the Employee
                  continue performing his duties in the companies until the end
                  of the term specified in sub-clause 9.1 or 9.2 above, or part
                  thereof.

                  However, it is agreed that in the event that for any reason
                  whatsoever the Employee is not employed in his position in the
                  Company during the prior notice period, he shall only be
                  entitled (if at all) to his salary pursuant to sub-clause 5.1
                  and to a company car pursuant to sub-clause 6.1 above during
                  the remainder of the prior notice period.

            9.4   It is hereby expressed that the provisions of sub-clause 9.1
                  to 9.3 above do not impair the companies' rights to terminate
                  this contract by virtue of any law and/or to insist upon their
                  rights pursuant to any law, in the event that acts and/or
                  omissions for which the Employee is at fault, which are not
                  within the scope of performing his duties in the companies,
                  are involved.

                  In addition, it is expressed that use made by one party of
                  its/his authority pursuant to this clause, or his/its failure
                  to do so, do not derogate from its/his right to any other
                  remedy or relief available to it/him at law and/or by virtue
                  hereof.

            9.5   In the event of termination of the Employee's employment with
                  the company, either by the employee himself or by the company,
                  the directors and officers' insurance policy which was issued
                  on behalf of him, shall, as far as is permissible, be
                  transferred to the name of the employee. However, it is agreed
                  that this provision shall not apply in the event of
                  termination of employment as set forth in articles 9.2.1,
                  9.2.2.
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                                      -11-


10.         HANDING OVER THE POSITION

            Upon  the termination of the Employee's employment with the Company,
                  and without excluding any obligation imposed upon him by
                  virtue of any agreement and/or law, the Employee hereby
                  undertakes to act in accordance with the following provisions:

            10.1  The Employee shall hand over his position in an orderly manner
                  and in such context he shall give the companies or anyone
                  acting on their behalf all the documents, information and
                  material which comes into his possession and/or which is
                  prepared by him in connection with his employment with the
                  Company or with the other companies.

            10.2  The Employee undertakes to maintain confidentiality in all
                  respects relating to the companies' business and/or affairs,
                  including any information or know-how which comes into his
                  possession during the period of his employment with the
                  companies.

                  Furthermore, the Employee undertakes not to make any use
                  whatsoever of the aforementioned information and/or know-how
                  and not to disclose and/or make any use of any of the
                  companies' tangible and/or intangible property, whether for
                  consideration or otherwise.

                  This undertaking shall remain valid for an unlimited period.

            10.3  The Employee undertakes not to directly or indirectly compete
                  in Israel with the companies' business in a manner that might
                  prejudice the companies and/or their business, including by
                  providing consultancy services to, managing and/or by being an
                  interested party (within the meaning thereof in the Securities
                  Law, 5728-1968) in a business directly competing with the
                  companies, as aforesaid, for the following periods:
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                                      -12-


                  10.3.1   if the  relationship  is  terminated in consequence 
                           of the Employee's resignation - for a period of two
                           years from the date of the relationship's 
                           termination;

                  10.3.2   if the relationship is terminated in consequence of
                           the Employee's dismissal by the Company - for a
                           period of one year from the date of the
                           relationship's termination.

            10.4  After the termination of his employment, the Employee shall
                  not, directly or indirectly, solicit, entice, recruit,
                  persuade or seek to induce any person who is or was an
                  employee of, or consultant to, any of the companies at the
                  date of termination or at any time during the period of
                  employment to terminate his or her employment or consultancy
                  with the companies, or approach any such employee or
                  consultant for any or the foregoing purposes, or authorize or
                  assist in the taking of any such actions by any third party.

11.         MISCELLANEOUS

            11.1  This contract is dependent an conditional upon the approval of
                  the board of directors of Ampal Israel and the Executive
                  Committee of the board of directors of Ampal USA.

            11.2  This agreement (including the allotment agreement) and all
                  rights and obligations of the parties related to it shall be
                  governed by and construed in accordance with the laws of
                  Israel, except that all matters relating to the form and
                  manner of the allotment under the allotment agreement and the
                  issuance of shares of Ampal USA shall be governed by New York
                  law.
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                  Any dispute concerning the above-mentioned agreements, rights
                  and/or obligations shall be settled pay conducted in front of
                  an Israeli tribunal exclusively.

            11.3  Notice sent by registered mail to the parties' addresses
                  specified in the recitals hereto or to their appointed
                  representatives shall be deemed to have reached its addressee
                  with 15 days from the date of dispatch, and if transmitted by
                  facsimile or delivered by hand on an ordinary business day -
                  at the time of transmission or delivery, and if transmitted or
                  delivered on a day which is not an ordinary business day - on
                  the first ordinary business day thereafter.

                           AS WITNESS THE HANDS OF THE PARTIES ON THE DATE AND
                      AT THE PLACE SPECIFIED ABOVE:


/s/Yehoshua Gleitman          /s/Lawrence Lefkowitz         /s/Raz Steinmetz
---------------------         ----------------------        --------------------
THE EMPLOYEE                  AMPAL USA                     AMPAL ISRAEL