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                                                                   EXHIBIT 10.15

                                   DEBENTURE

                  Made and executed this 28 day of April 1999

WHEREAS    the undersigned Accord Networks Ltd., P.C. 51-168376-5 whose address
           is Martin Gahal Street 10, Kiryat Arieh, Petach Tikva (hereinafter: -
           "the Pledgor"), has received and intends to receive, from time to
           time, from Bank Hapoalim B.M. whose address for the purpose of this
           debenture is Rothschild Boulevard 50, Tel - Aviv (hereinafter: "the
           Bank") credits, documentary credits, various loans, overdrafts in
           current account, in revolving debitory account or in any other
           account, letters of indemnity and guarantees for the account of the
           Pledgor or for others at the request of the Pledgor, discounting of
           Bills, granting of time and various banking facilities and various
           other banking services (hereinafter, jointly and severally - "the
           Banking Services"), on such conditions as have been and/or may be
           agreed from time to time with respect to each such Banking Service,
           and

THEREFORE, it has been agreed that the Pledgor shall secure the repayment of the
           various amounts of money which the Pledgor may owe and/or may be
           liable to the Bank in connection with the granting of the Banking
           Services and/or in connection with other liabilities not being
           Banking Services and/or otherwise, all in accordance with the terms
           hereinafter contained.

NATURE OF THE DEBENTURE

1.   This Debenture has been made to secure the full and punctual payment of all
     the sums due and to become due to the Bank from the Pledgor in connection
     with the granting of Banking Services to the Pledgor by the Bank and/or in
     connection with other liabilities not being Banking Services or in any
     other manner, whether due from the Pledgor alone or jointly with others,
     whether the Pledgor may have incurred or will incur liability with respect
     thereto in the future, as obligor and/or as guarantor and/or as endorser or
     otherwise, now due or becoming due in the future, which are payable prior
     to the realisation of the collateral security to which this Debenture is
     applicable or subsequent thereto, whether due absolutely or contingently,
     directly or indirectly, unlimited in amount together with interest,
     commissions, charges, fees and expenses of whatever nature, including costs
     of realising the collateral security, lawyers fees, insurance, stamp duty
     and any other payments arising from this Debenture and together with any
     nature of linkage differences due and becoming due from the Pledgor to the
     Bank in any manner whatsoever in respect of linked principal and interest
     and any other linked sum (all the foregoing sums being jointly and
     severally hereinafter referred to as "the Secured Sums").

THE CHARGE
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2.   As collateral security for the full and punctual payment of all of the
     Secured Sums, the Pledgor hereby charges to the Bank and its successors by
     way of a first ranking floating charge the assets and the profits and
     benefits derived therefrom as set out below (hereinafter "the Assets
     Subject to a Floating Charge").

        (a) All the assets, monies, property and rights of any kind whatsoever
            without exception, whether now or hereafter at any time in the
            future owned by or in the possession of the Pledgor in any manner or
            way whatsoever;

        (b) All the current assets, without, exception, now or hereafter at any
            time in the future owned by or in the possession of the Pledgor in
            any manner or way whatsoever, the expression "current assets"
            meaning all the assets, monies, property and rights of any kind with
            the exception of land, buildings and fixtures;

        (c) All the fixed assets now or hereafter at any time in the future
            owned by or in possession of the Pledgor in any manner or way
            whatsoever, the expression "fixed assets" to include, inter alia,
            land, buildings and fixtures;

        (d) All the securities and other documents or instruments owned b the
            Pledgor and/or which the Pledgor is entitled to give instructions to
            sell, which are now and/or will be held from time to time by the
            Bank and/or by others in favour of the Bank and/or any rights in
            respect thereof;

        (e) All rights in land and/or all contractual rights under agreements
            between the Pledgor and the Israel Lands Administration and/or the
            Israel Development Authority and/or the Jewish National Fund (Keren
            Kayemeth Le-Israel) and/or any other parties, now and hereafter
            existing at any time whatsoever.

3.   As further collateral security for the full and punctual payment of all of
     the Secured Sums, the Pledgor hereby pledges and charges to the Bank and
     its successors by way of a first ranking fixed pledge and charge the
     uncalled and/or called but unpaid share capital of the Pledgor and its
     goodwill, as presently and in the future at any time existing (hereinafter,
     jointly and severally - "the Charged Assets").

4.   As further collateral security for the full and punctual payment of all the
     Secured Sums, the Pledgor hereby pledges and charges to the Bank all such
     securities, documents and instruments, Bills drawn or made by others, which
     the Pledgor has delivered or may deliver to the Bank from time to time
     whether for collection, safekeeping or otherwise (hereinafter "the Charged
     Documents"), and upon the delivery thereof shall be and be deemed pledged
     and charged to the Bank by way of a first ranking fixed pledge and charge
     according to the terms of this Debenture the provisions of which, mutatis
     mutandis, shall apply to the charge and pledge thereof. The Bank shall be
     exempt from taking any action whatsoever in connection with the Charged
     Documents and shall not be liable for any loss or damage which may be

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     caused in connection therewith and the Pledgor undertakes to indemnify the
     Bank in any event that the Bank is sued for any such loss of damage by
     others.

     The Pledgor hereby waives in advance any defence based on prescription in
     relation to the Charged Documents.

5.   The Assets Subject to a Floating Charge, the Charged Assets and the Charged
     Documents shall be hereinafter called "the Charged Property".

     The pledge and charge created by operation of this Debenture shall apply to
     all and any rights to compensation or indemnity which may accrue to the
     Pledgor by reason of the loss of, damage to or appropriation of the Charged
     Property.

DECLARATIONS OF THE PLEDGOR

6.   The Pledgor hereby declares as follows:

     (a)  That the Charged Property is not charged, pledged or attached in
          favour of any other persons or parties, aside from the debenture given
          by the Pledgor to Bank Leumi Ltd.

     (b)  That the Charged Property is, in its entirety, in the exclusive
          possession and ownership of the Pledgor or in the possession or under
          the control of the Bank;

     (c)  That no restriction or condition of law or any agreement exists or
          applies to the ability of the Pledgor to transfer or charge the
          Charged Property, aside from limitations which apply to the Pledgor
          pursuant to grants which Pledgor received from the Bureau of the Chief
          Scientist at the Ministry of Industry and Commerce, as detailed in the
          Encouragement of Research and Development in industry Law of 1984, and
          the regulation pursuant to it, as promulgated from time to time;

     (d)  That the Pledgor is capable of and entitled to charge the Charged
          Property, subject to the exceptions in subsections (a) and (c) above;

     (e)  That no assignment of rights or other disposition or circumstance has
          occurred derogating from the value of the Charged Property.

COVENANTS OF THE PLEDGOR

7.   The Pledgor hereby covenants as follows:

     (a)  Subject to the provisions of any law, to hold the Charged Property
          according to the provisions of this debenture;

     (b)  To use and deal with the Charged Property with the utmost care and to
          notify the Bank of any case of material defect or material damage or

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          material fault or material disrepair affecting same, provided that the
          value of each of the defect, damage, the fault or disrepair is greater
          than $300,000 and to remedy any disrepair, damage, fault or defect
          affecting the Charged Property due to use or for any other reason;

     (c)  To allow any representative of the Bank, at any time, pursuant to
          coordination in advance, to inspect and examine the condition of the
          Charged Property wherever the Charged Property may be situated;

     (d)  In the instance of any of the events detailed in Section 17 below,
          upon the Bank's first demand in writing, to deliver to the Bank or to
          any bailee on its behalf, the Charged Assets and/or the Charged
          Documents. In the event of the refusal of the Pledgor to comply with
          the provisions of this sub-clause, the Bank may, without the consent
          of the Pledgor, remove the Charged Assets and/or the Charged Documents
          from the Pledgor's possession and hold the same or deliver the same to
          a bailee on behalf of the Bank at the expense of the Pledgor. Where
          the Charged Assets and/or Charged Documents have been so delivered to
          a bailee with the Pledgor's agreement, the Bank shall be exempt from
          any loss or damage which for any reason may be caused to the Charged
          Assets and/or the Charged Documents.

     (e)  While the Pledgor is obligated to the Bank in the amounts detailed in
          Section 1 above, not to sell, dispose of, hire out, let, lease or
          transfer any of the Charged Assets and the Charged Documents nor
          suffer any person to use them or any part of them, in any manner and
          not to allow any person to do any of the foregoing acts, without the
          prior written consent of the Bank;

     (f)  While the Pledgor is obligated to the Bank in the amounts detailed in
          Section 1 above, not to sell, transfer, let , lease, surrender,
          dispose of, relinquish or waive, in whole or in part, any present or
          future asset, claim or right of the Pledgor, save for transactions in
          relation to Assets Subject to a Floating Charge or assets which are
          not charged to the Bank by way of a fixed charge in the ordinary
          course of the Pledgor's business and for full consideration, and in
          these instances the Bank's prior written consent will not be required;

          Subsections (e) and (f) above shall apply to the sale of assets whose
          value is greater than $500,000 per annum and shall not apply to the
          assets included in the attached Exhibit A.

     (g)  To notify the Bank within 7 days of the levying of any attachment on
          the Charged Property, provided the attachment is in excess of
          $250,000, to notify the attacher of the charge in favour of the Bank
          and to take at the Pledgor's own expense immediately and without delay
          all such measure as are required for discharging such attachment;

     (h)  Not to charge or pledge in any manner or way the Charged Property by
          conferring any rights ranking pari-passu, prior to or deferred to the
          rights of the Bank and not to make any assignment of

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          any right which the Pledgor may have in the Charged Property without
          receiving the prior written consent of the Bank;

     (i)  To be liable towards the bank for any defect in the Pledgor's title to
          the Charged Property, provided such aforementioned defect was caused
          by bad faith on the part of the Pledgor, and to bear the
          responsibility for the authenticity, regularity and correctness of all
          the signatures, endorsements and particulars of any Bills, documents,
          instruments and securities which have been or may be delivered to the
          Bank by way of collateral security;

     (j)  To pay when due all taxes and compulsory payments levied against the
          Charged Property and/or the income accruing thereon under any law and
          to furnish the Bank, at its request, with all the receipts for such
          payments. If the Pledgor fails to make such payments when due, the
          Bank may pay the same for the account of the Pledgor and debit the
          Pledgor with the payment thereof coupled with expenses, and Interest
          at the Maximum Rate. Such payments shall be secured by this Debenture;

     (k)  To maintain proper books of account and to allow the Bank or its
          representative to inspect such books at any time, with prior
          coordination. The Pledgor undertakes to assist the Bank or its
          representatives and furnish them financial reports as specified in
          clause 5 of the letter of intent between the Bank and the Pledgor of
          7.3.99, this subject to maintenance of confidentiality with respect to
          the aforementioned Pledgor's information by the Bank, in the manner
          that the Bank maintains confidentiality in regard to its clients;

     (l)  Aside from an existing loan in the amount of $250,000 which was
          granted to the Pledgor in 1995 by Keren Nitzanim (1993) Ltd., not, in
          any year, so long as the Pledgor has not yet discharged to the Bank
          the sums due to the Bank from it in such year or prior thereto in
          respect of the Secured Sums, to make any loans to the Pledgor's
          shareholders nor repay to any of the Pledgor's shareholders, any
          existing or future loans greater than an aggregate amount of $300,000,
          without the prior written consent of the Bank;

     (m)  That no structural change as regards the Pledgor and no change in the
          control of the Pledgor will occur without the prior written consent of
          the Bank.

     (n)  Not to institute any proceedings whatsoever in respect of the Secured
          Sums that would have an adverse effect on the ability of the Bank to
          realise the property hereby charged.

8.   The Pledgor undertakes to notify the Bank forthwith:

     (a)  of any claim of right to any collateral security given to the Bank to
          which this Debenture is applicable whose value is greater than
          $250,000 and/or of any execution or injunction proceedings or other
          steps taken to realise any such collateral security. The Bank hereby
          declares that the Pledgor has advised it of a pending claim, which was
          filed against the Company in the United States in the month of
          November by the company VideoServer Inc., with respect to patent
          violation;

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     (b)  of any of the events enumerated in Clause 17 hereof;

     (c)  of any application filed for the winding-up of the Pledgor's affairs
          or for the appointment of a receiver over the Pledgor's assets as well
          as any resolution regarding any structural change in the Pledgor (as
          this term is defined in Section 32(f) below) or any intention to do
          so;

     (d)  of any change of address.

INSURANCE

9.   The Pledgor hereby undertakes to keep the Charged Property insured at all
     times for its full value against the usual risks which are usually insured,
     to pay all insurance premiums at the appointed dated and to transmit to the
     Bank, according to its written request, copies of all insurance
     certificates or insurance policies and of receipts for payment of the
     premiums.

10.  The Pledgor further undertakes, at the occurrence of each of the events
     detailed in Section 17 below, to furnish the Bank with a certificate from
     the insurance company or companies containing an undertaking on its or
     their part not to set-off any of the insurance proceeds payable to the Bank
     with respect to the Charged Property, except for the unpaid balance of
     insurance premiums for insuring the Charged Property for the current year
     only, and if the insurance policy applies also to other property, in
     addition to the Charged Property, such certificate shall include the
     agreement of the insurance company to attribute the payments of premium
     received in connection with this insurance company first of all on account
     of insurance premiums due on account of insuring the Charged Property.

11.  In any of the following events, the Bank may, in its absolute discretion,
     insure the Charged Property in the name of the Bank and to charge the
     Pledgor with any insurance premiums and any other costs of insurance,
     subject to the Bank's having given the Pledgor prior written notice at
     least 14 business days in advance:

     (a)  If the Charged Property is not insured by the Pledgor to the
          satisfaction of the Bank, as stated in Section 9 above;

     (b)  If the Pledgor does not furnish the Bank within thirty days from the
          date of signature of this Debenture with certificates or policies of
          insurance in respect of the Charged Property;

     (c)  In the event of the insurance being effected by the bank as above, the
          Bank shall not be liable for any defect or shortcoming that may come
          to light in connection with the insurance.

12.  All the rights of the Pledgor deriving from the insurance of the Charged
     Property, including rights under the Property Tax and Compensation Fund
     Law, 5721-1961, as in force at any relevant time and under any other law,
     whether or not assigned to the Bank as aforesaid, are hereby charged to the
     Bank by way of a first ranking fixed charge and pledge.

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13.  The Pledgor hereby undertakes to sign, upon the Bank's first demand, all
     documents and certificates required to implement the Pledgor's obligations
     under this heading. The Pledgor further undertakes not to cancel nor vary
     in any substantive manner any of the fundamental terms or the conditions of
     the insurance referred to above, without the prior written consent of the
     Bank, provided that the aforementioned change may be detrimental to the
     Bank.

INTEREST

14.  (a)  The Bank shall be entitled to calculate interest on the Secured Sums
          at such rate as has been or may be agreed upon from time to time
          between the Bank and the Pledgor. Where no rate of interest has been
          agreed, the Bank may determine the rate of interest but not in excess
          of Interest at the Maximum Rate and give notice thereof to the
          Pledgor. The Pledgor shall be liable to pay and shall be debited
          accordingly at the respective rate of interest as provided above and
          the Bank may compound same with the respective amount of principal at
          the end of each month or such other period as the Bank shall
          determine.

     (b)  Whenever the payment of any amount of the Secured Sums or any part of
          them is overdue, it shall bear default interest at the rate that has
          been agreed upon in the agreement for the provision of the Banking
          Services between the Bank and the Pledgor. In the absence of any
          provision concerning default interest, the Secured Sums shall bear
          Interest at the Maximum Rate;

     (c)  Upon the occurrence of any event conferring upon the Bank the right to
          realise the collateral security granted under this Debenture, the Bank
          shall be entitled to raise the rates of interest on the Secured Sums
          up to Interest at the Maximum Rate, beginning with the occurrence of
          one or more of the events detailed in Section 17 below.

REPAYMENT DATES

15.  The Pledgor hereby undertakes to pay the Bank all and any of the Secured
     Sums promptly on the maturity dates prescribed or which may be prescribed
     therefor from time to time in the agreement between the Pledgor and the
     Bank.

16.  (a)  The Bank may decline to accept any prepayment of the Secured Sums or
          payment of any part thereof prior to the date of maturity thereof and
          the Pledgor shall not be entitled to redeem all or any of the Charged
          Property by discharging the Secured Sums and/or any part thereof prior
          to their prescribed maturity dates, unless the Pledgor and the Bank
          provide otherwise.

          Neither the Pledgor nor any person having a right liable to be
          affected by the pledges and charges hereby created or the realisation
          thereof

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          shall have any right under Section 13(b) of the Pledges law. 5727-1967
          or any other statutory provisions in substitution therefor.

     (b)  Subject to the provisions of any law, if the Bank agrees to prepayment
          on account of the Secured Sums (and without being obliged to do so),
          the Pledgor shall pay such prepayment fee as may be notified to the
          Pledgor by the Bank.

17.  Without derogating from the generality of the provisions of this Debenture,
     the Bank shall be entitled to demand the immediate payment of the Secured
     Sums and to debit any account of the Pledgor with the amount thereof in any
     one of the events enumerated below, in which case the Pledgor undertakes to
     pay the Bank all of the Secured Sums, and the Bank shall be entitled to
     take whatever steps it sees fit for the collection of the Secured Sums and
     in particular to crystallise the floating charge on the Assets Subject to a
     Floating Charge as provided in Clause 23(a) hereof and to realise, at the
     Pledgor's expense, the collateral securities by any means allowed by law;

     (a)  If the Pledgor commits a breach of or fails to perform any of the
          terms and conditions contained in this Debenture or if the Pledgor are
          in breach of any covenant or other obligations which the Pledgor has
          or have incurred or may incur towards the Bank or if it transpires
          that any declaration or statement made by the Pledgor in this
          Debenture or any other declaration in connection with the Secured Sums
          made heretofore or hereafter by the Pledgor to the Bank is false or
          inaccurate, and the aforementioned material breach or defect in the
          declaration is not remedied within 30 days from the date that the
          Pledgor becomes aware of the breach or inaccuracy of the declaration
          as above or from the date on which the Bank notifies the Pledgor in
          writing, according to the earlier of them;

     (b)  If the Pledgor adopts a resolution for a structural change (as defined
          in Section 32(e) below) or any other decision to do so, as regards the
          Pledgor or adopts a voluntary winding up resolution or if an order for
          winding up is made against the Pledgor or if a temporary liquidator or
          special manager is appointed over the Pledgor and the appointment is
          not cancelled within 7 days from the date of the appointment, or if
          the name of the Pledgor is struck out or is about to be struck out
          from any official register kept by law;

     (c)  If a receiver is appointed or a receiving order is made over any or
          all of the Pledgor's assets or any part of them in an amount which
          exceeds $300,000, provided that in the event that the aforementioned
          order or appointment was made with respect to all of the assets and on
          an ex parte basis - and the order or appointment is not cancelled
          within 14 days from the date of their inception; and in the event that
          the aforementioned order or the appointment were made with respect to
          part of the Pledgor's Charged Assets - if they are not vacated within
          45 days from the date of their inception;

     (d)  If an attachment or similar process of execution is levied against any
          part of the Pledgor's assets or against any collateral security given
          by the Pledgor, in an amount which exceeds $250,000 and the above

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          attachment or process is not vacated within 30 days from the date of
          their levying;

     (e)  If there is a change in ownership or control of the Pledgor as against
          the constitution of the Pledgor on the day of signature of this
          Debenture;

     (f)  If the Pledgor ceases to pay its debts or to carry on business;

     (g)  If work at the Pledgor's business ceases or is substantially curtailed
          for two months or more;

     (h)  If the Bank in its sole discretion considers that an occurrence has
          taken place which is liable to substantially affect the Pledgor's
          financial ability, provided that the Bank notifies the Pledgor in
          writing at least 7 days in advance of its such exercising of its
          rights as above, and during this period of time the Pledgor has proven
          to the Bank or satisfied the Bank that the above event will not
          materially effect the Pledgor's financial ability;

     (i)  If the Pledgor falls behind in payment of any of the Secured Sums for
          more than 10 or more days, as agreed between the Pledgor and the Bank;

     (j)  If the Charged Property or any part thereof is destroyed, consumed by
          fire or loses its value or is lost in an amount that exceeds $300,000;

     (k)  If there is a decrease in the number of the Pledgor's shareholders or
          the number of members constituting the Pledgor falls below the minimum
          number required by law;

     (l)  If a deterioration has occurred in the value of the collateral
          security for the payment of the Secured Sums, provided that the Bank
          gives the Pledgor written notice at least 7 days in advance of
          exercising its aforementioned rights;

     (m)  If the Pledgor shall be required to make early repayment of debts
          which either of them owes to the other creditors, provided that the
          amount of the debts exceeds $300,000;

     (n)  If the Pledgor is in breach of its undertaking to furnish the Bank
          with financial reports, pursuant to Section 5 of the letter of
          understanding between the Bank and the Pledgor of 7.3.99, and provided
          that the bank gives the Pledgor written notice at least 7 days in
          advance of exercising its aforementioned rights;

RIGHTS OF THE BANK

18.  (a)  The Bank shall have the right of possession, lien, set-off and charge
          over any amounts, assets and rights including securities, coins, gold,
          banknotes, documents in respect of goods, insurance policies, Bills,

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          assignments of rights, deposits, collateral and their countervalue, in
          the possession of or under the control of the Bank at any time for or
          on behalf of the Pledgor, including such as have been delivered for
          collection, as security, for safe-keeping or otherwise. The Bank shall
          be entitled to retain the said assets with the occurrence of one of
          the events detailed in Section 17 above, until payment in full of the
          Secured Sums or to realise them by selling them and applying the
          countervalue thereof in whole or in part in payment of the Secured
          Sums, provided that the Bank notifies the Pledgor at least 14 business
          day's in advance of the aforementioned sale.

          In the event that sums capable of being applied to the Secured Sums
          are deposited in a currency other than that of the Secured Sums, the
          Pledgor hereby gives to the Bank in advance irrevocable instructions
          and authority to convert such sums into the currency of the Secured
          Sums at a rate to be fixed by the Bank or at which it can acquire same
          and to apply the proceeds, after deduction of any taxes, charges or
          commissions to the Secured Sums.

     (b)  Without derogating from the Bank's right of lien in accordance with
          sub-clause 18(a) above, with the occurrence of one of the events
          detailed in Section 17 above, the Bank may, but shall not be obliged,
          provided that the Bank notifies the Pledgor at least 14 business day's
          in advance, with the occurrence of one of the events detailed in
          Section 17 (b), (e), (f), (g), (i), (j) (k) above:

          (i)    To apply to any amounts owed by the Pledgor on account of the
                 Secured Sums, any amounts owed to the Pledgor by the Bank in
                 any account in Israeli currency or in foreign currency or in
                 any manner or for any reason, even before the maturity of the
                 amounts owed to the Pledgor by the Bank as aforesaid which are
                 to be applied but where deposits in savings schemes are to be
                 applied, they shall not be applied prior to the date the
                 Pledgor could have required early repayment of such deposits.

          (ii)   To purchase for the Pledgor's account, any amount in foreign
                 currency which may be required for payment of any of the
                 Secured Sums or to sell any foreign currency standing to the
                 Pledgor's credit at the Bank and to apply the proceeds to the
                 payment of any of the Secured Sums.

          (iii)  To debit any of the Pledgor's accounts with any of the Secured
                 Sums. However, if the state of any account does not allow it to
                 be debited by the Bank in order to effect final payment of any
                 amount, the Bank may refrain from so doing, and if the Bank has
                 acted accordingly, the Bank may reverse any such debit and
                 treat any amount the debit of which was reversed as an unpaid
                 amount on account of the Secured Sums and accordingly to take
                 whatever action it sees fit pursuant to the provisions hereof.

          (iv)   The Bank may effect such set-off by giving the Pledgor 10 (ten)
                 business days' notice prior to effecting such set-off.

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                (1)  In case of applying any time deposit which but for such
                     application would have been automatically extended or
                     renewed, so that certain rights or benefits would have
                     accrued to the Pledgor.

                (2)  Notwithstanding sub-clause(1) above, if the delay in
                     effecting such application might be detrimental to the
                     Bank, such application may be made immediately. Moreover,
                     where notice has been sent to the Pledgor and in the course
                     of the 14-day period an attachment order or notice of a
                     receiving order for the Pledgor's assets is received or a
                     similar event occurs, in an amount which exceeds $500,000,
                     such application may be made immediately.

     (c)  The Pledgor hereby declares that it is aware of the fact that in such
          cases where the Bank may use its rights of set-off prior to the
          maturity of any deposit of the Pledgor or any part thereof, the
          Pledgor's rights in connection with the relative deposit may be
          negatively affected (for example in relating to interest rates,
          linkage differences, exchange differences, rights to bonuses or loans,
          tax exemptions or reductions and deductions at source, if according to
          the terms governing any such deposit the Pledgor had such rights). The
          Pledgor shall bear all the customary costs and charges of the Bank at
          that time, resulting from making any such set-off.

     (d)  Any purchase or sale under sub-clause 18(b)(ii) above, shall be
          effected (if effected) at the rate of exchange prevailing at the Bank,
          out of the amounts in Israeli currency or foreign currency, as the
          case may be, standing to the Pledgor's credit at the Bank, or which
          may be obtained by realising collateral given or which may have been
          given by the Pledgor to the Bank.

          The term "the rate of exchange prevailing at the Bank" shall mean,
          with respect to any purchase of foreign currency for the Pledgor's
          account, the highest rate for cheques and transfers at which the Bank
          at any relevant time generally sells to its customers the relevant
          foreign currency against Israeli currency, in addition to any
          conversion charge, tax, levy, compulsory payments or any other similar
          payments; and with respect to any sale of foreign currency from the
          Pledgor's account, the lowest rate for cheques and transfers at which
          the Bank at any relevant time generally purchases from its customers
          the relevant foreign currency against Israeli currency, after
          deducting any conversion charge, tax, levy, compulsory payments or any
          other similar payments.

19.  With the occurrence of one of the events detailed in Section 17 above, the
     Bank may at any time debit any of the Pledgor's accounts with any sums
     howsoever due and becoming due from the Pledgor and apply any sums received
     from or for the Pledgor to whichever account it may see fit and to transfer
     any amount standing to the Pledgor's credit to any other account as it may
     see fit, provided that the Bank notifies the Pledgor at least 14 business
     days in advance.

                                       11
<PAGE>

20.  The Pledgor confirms that the Bank's books and accounts shall be deemed to
     be correct and shall serve as prima facie evidence against the Pledgor in
     all their particulars, including all reference to the computation of the
     Secured Sums, the particulars of the Bills, guarantees and other collateral
     securities and any other matter related hereto.

21.  The Bank shall be entitled, in its sole discretion, to accept or refuse any
     instructions or notices given verbally, by telephone, facsimile
     transmission or by any other mode that is unreliable or not reduced to
     clear and legible writing.

22.  Without derogating from the other provisions contained in this Debenture,
     any waiver, extension, concession, acquiescence or forbearance
     (hereinafter: "waiver") on the Bank's part as to the partial performance or
     incorrect performance of any of the Pledgor's obligations pursuant to this
     Debenture such waiver shall not be treated as a waiver on the part of the
     Bank of any rights but as a limited consent given in respect of the
     specific instance. Any waiver granted by the Bank to any party to any Bill
     held by the Bank as collateral for the Secured Sums shall in no way or
     manner affect any of the Pledgor's obligations.

23  (a)   In any of the events enumerated in Clause 17 hereof, the Bank shall be
          entitled to notify the Pledgor of the crystallisation immediately or
          on a date specified by the Bank of the floating charge over the
          Charged Property or any part thereof and to adopt all the measures it
          deems fit in order to recover the Secured Sums and realise all of its
          rights hereunder, including the realisation of the Charged Property,
          in whole or in part, and to apply the proceeds thereof to the Secured
          Sums without the Bank first being required to realise any other
          guarantees or collateral securities, if such be held by the Bank.

     (b)  Should the Bank decide to realise securities, Bills and other
          negotiable instruments, then 14 business days advance notice regarding
          the steps that the Bank intends to take shall be deemed to be
          reasonable advance notice for the purpose of Section 19(b) of the
          Pledges law, 5727-1967 or any other statutory provisions in
          substitution therefor.

     (c)  The Bank may sell all or any of the Charged Property by public auction
          or otherwise, by itself or through others, for cash or instalments
          thereof or otherwise, subject to and pursuant to a court order or by
          order of the execution office, the Charged property or any other
          property, inter alia, by appointing a receiver or receiver and manager
          on behalf of the Bank, who shall be empowered, inter alia, subject to
          a court order as above:

          (1)  to call in all or any part of the Charged Property.

          (2)  to carry on or to participate in the management of the business
               of the Pledgor, as they see fit.

          (3)  to sell or agree to the sale of the Charged Property, in whole or
               in part, to dispose of same or agree to dispose of same in such
               other manner on such terms as they deem fit.

                                       12
<PAGE>

          (4)  to make such other arrangement regarding the Charged Property or
               any part thereof as they deem fit.

     (d)  All income to be received by the receiver or the receiver and manager
          from the Charged Property as well as any proceeds to be received by
          the Bank and/or by the receiver or receiver and manager from the sale
          of the Charged Property or any part thereof shall be applied in the
          following order:

          (1)  to the discharge of all the costs and expenses incurred and which
               may be incurred in connection with the collection of the Secured
               Sums, including the costs and remuneration of the receiver or the
               receiver and manager in such amount as shall be prescribed by the
               Bank and shall be proven to the Pledgor by presentation of
               written documents or approved by the court or the execution
               office;

          (2)  to the discharge of the Secured Sums becoming due to the Bank by
               reason of any terms of linkage or on account of interest,
               damages, commissions, fees, charges and expenses due and becoming
               due to the Bank pursuant to this Debenture;

          (3)  to the discharge of the principal amount of the Secured Sums;

          or in such order of appropriation as the Bank shall determine.

24.  Should the payment date of the Secured Sums or any part thereof not yet
     have fallen due at the time of the sale of the Charged Property, or the
     Secured Sums be due to the Bank contingently only, then the Bank shall be
     entitled to recover out of the proceeds of the sale an amount sufficient to
     cover the Secured Sums and the amount so recovered and yet to be
     appropriated to the discharge of the amounts mentioned in Clause 23(d)
     above shall be charged to the Bank as security for, and be held by the Bank
     until the discharge in full of, the Secured Sums.

NATURE OF THE COLLATERAL SECURITY

25.  The collateral securities which have been or may be given to the Bank under
     this Debenture shall be continuing and revolving securities and shall
     remain in force until the Bank certifies in writing that this Debenture is
     null and void or until the final and absolute discharge of the Charged
     Amounts.

26.  All other collateral securities and guarantees which have been or may be
     given to the Bank for payment of the Secured Sums shall be independent of
     one another.

27.  The nature and effect of the collateral securities to which this Debenture
     is applicable shall not be affected nor shall the validity of any of the
     securities and obligations of the Pledgor hereunder be impaired or affected
     by any compromise, concession, granting of time or other like release
     consented to by the Bank with respect to the Pledgor or by any variation in
     the Pledgor's obligations towards the Bank, and all of the collateral
     securities and obligations

                                       13
<PAGE>

     of the Pledgor to the Bank covered by this debenture shall remain in full
     effect until their expiration.

28.  In the event of the occurrence of each of the events detailed in Section 17
     above, the Bank may deposit all or any of the collateral given or which may
     be given pursuant to this Debenture with a bailee of its own choosing, at
     its discretion and at the Pledgor's expense, and may substitute such bailee
     with another from time to time. The Bank may register all or any of such
     collateral's with any competent authority in accordance with any law and/or
     in any public register.

RIGHT OF ASSIGNMENT

29.  The Bank may not, without the Pledgor's prior written consent, assign this
     Debenture and its rights arising thereunder, including the collateral's in
     whole or in part, aside from assignment to a company under the full control
     of the Bank. Any assignee may not reassign the said rights without further
     consent from the Pledgor. For the purpose of this Section, the term
     "control" shall mean ownership and holding of more than 51% of the issued
     and paid up share capital of the receiving company.

NOTICE OF OBJECTION

30.  The Pledgor undertakes to notify the Bank in writing of any objection or
     contention it may have regarding any statement of account, extract thereof,
     certificate or notice received by it from the Bank including information
     received through any automatic terminal facility. Where no such objection
     or contention is received by the Bank within 21 days of the despatch of
     such statement of account, extract, certificate or notice then the Pledgor
     will be deemed to have confirmed the correctness thereof.

EXPENSES

31.  All the expenses in connection with this Debenture as detailed in the
     Bank's scale of charges, as in force from time to time, including the fee
     for preparing credit and security documents, the stamping and registration
     of documents, and all and any expenses involved in the realisation of the
     collateral security and institution of proceedings for collection
     (including the fees of the Bank's lawyers, as is customary at the Bank and
     as will be proven by the bank according to written documentation),
     insurance, safe-keeping, maintenance and repair of the Charged property -
     shall be paid by the Pledgor to the Bank (if at all) on its first demand,
     together with Interest at the Maximum Rate from the date demand was made
     until payment in full, and until payment in full, all the above expenses
     together with interest thereon shall be secured by this Debenture. The Bank
     may debit the Pledgor with the aforesaid expenses, together with interest
     thereon.

                                       14
<PAGE>

INTERPRETATION

32.  In this Debenture - (a) the singular includes the plural and vice versa;
     (b) the masculine gender includes the feminine gender and vice versa; (c)
     "Bank" means:- Bank Hapoalim B.M. and any of its branches existing on the
     date hereof and/or to be subsequently opened, wherever they may be, its
     assigns, successors, or attorneys-in-fact; (d) "Bills" means: promissory
     notes, bills of exchange, cheques, undertakings, guarantees, sureties,
     assignments, bills of lading, deposit notes and any other negotiable
     instruments; (e) "Interest at the Maximum Rate" means: interest at the
     maximum rate prevailing at the Bank at the time and from time to time for
     excess debit balances and arrears in revolving debitory accounts or in
     current account, whichever is the higher; (f) "Structural change" means
     with respect to the Pledgor, any merger or divestiture (within the meaning
     of these terms in Part E-2 of the Income Tax Ordinance or any other
     statutory provision in substitution therefor) , irrespective of whether
     according to the aforesaid Part E-2 or otherwise, aside from a merger of
     the Pledgor with another corporation where the Pledgor is the absorbing
     company; (g) "business day" shall be interpreted as a day on which the
     majority of the branches of the banks in Israel are open to the public for
     the performance of business(h) the headings are only indicative and are not
     to be used in construing this Debenture; (i) the recitals hereto form an
     integral part hereof.

NOTICES AND WARNINGS

33.  Any notice sent by one Party to the other by registered mail to the address
     above given or to the address of the Pledgor's registered office or to such
     other address as one Party shall notify the other in writing, shall be
     deemed to be sufficient legal notice received by the addressee within 72
     hours from the time of despatch of the letter containing the notice.

GOVERNING LAW AND PLACE OF JURISDICTION

34.  (a)  This Debenture shall be construed in accordance with the laws of the
          State of Israel.

     (b)  The exclusive place of jurisdiction for the purpose of this Debenture
          is hereby established as the competent court of law in Israel situated
          in the city nearest to the place of signature of this Debenture or in
          one of the following cities: Jerusalem, Tel Aviv-Jaffa, Haifa,
          Beersheba or Nazareth.

                   IN WITNESS WHEREOF THE PLEDGOR HAS SIGNED

                        /s/___________________________

                                       15
<PAGE>

                             Accord Networks Ltd.

I the undersigned, Daniel Markovich, Advocate, License NO. 19697, hereby certify
the signatures of Messrs. Zigi Gavish and Mati Karp, who are authorised to sign
this debenture on behalf of Accord Networks Ltd.

                                            - (stamp) -

/s/
----------------------------
               We the Undersigned agree with the Aforesaid:

                   /s/
                   ----------------------------
                           - (Bank Hapoalim Ltd.) -

                                       16
<PAGE>

                                   Exhibit A
                                   ---------

The Bank shall have no rights whatsoever in the shares or rights to purchase
shares of the Pledgor as detailed hereinafter:

1.   Such amount of shares which the Pledgor intends to allot to various
     investors, with whom the advanced negotiations are currently being
     conducted for investment of funds in the company, and which will represent,
     after the allotment to these investors, approximately 10% of the issued
     share capital of the company, after full dilution.

2.   Ordinary shares of the Pledgor which are reserved according to an options
     plan for the employees of the company.

3.   Shares which may be realized according to various option certificates which
     were granted by the Pledgor to existing shareholders and to various other
     parties.

For the avoidance of doubt, the aforementioned allotment of shares will be made
with no requirement for any advance notice whatsoever to the Bank or for the
receipt of any agreement whatsoever from the Bank.

                          - (Accord Networks Ltd.) -

                                       17EXHIBIT 10.3

                              Employment Agreements

<PAGE>

Following is an agreement between First Carnegie Deposit and Walter G. Kelly. On
June 12,  1997,  virtually  an identical  agreement  was executed  with Carol A.
Gilbert in the capacity of Treasurer and Chief Financial and Operations Officer.

                              EMPLOYMENT AGREEMENT

         THIS AGREEMENT, entered into this 12th day of June 1997, by and between
First Carnegie  Deposit  (formerly First Federal  Savings & Loan  Association of
Carnegie),  a Federal stock savings bank,  (the "Bank") and Walter G. Kelly (the
"Executive").

                                   WITNESSETH

         WHEREAS,  the Executive has heretofore been employed by the Bank as the
President and Chief  Executive  Officer and is  experienced in all phases of the
business of the Bank; and

         WHEREAS,  the Bank desires to be ensured of the  Executive's  continued
active participation in the business of the Bank; and

         WHEREAS,  in order to induce the  Executive  to remain in the employ of
the Bank and in  consideration  of the  Executive's  agreeing  to  remain in the
employ of the Bank,  the  parties  desire to specify the  continuing  employment
relationship of the Bank and the Executive;

         NOW  THEREFORE,  in  consideration  of  the  premises  and  the  mutual
agreements herein contained, the parties hereby agree as follows:

         1. Employment. The Bank hereby employs the Executive in the capacity of
President  and Chief  Executive  Officer.  The  Executive  hereby  accepts  said
employment and agrees to render such  administrative and management  services to
the Bank and to Skibo  Bancshares,  M.H.C.,  the parent mutual  holding  company
("Parent") as are currently rendered and as are customarily performed by persons
situated  in a similar  executive  capacity.  The  Executive  shall  promote the
business of the Bank and Parent.  The Executive's  other duties shall be such as
the Board of Directors  for the Bank (the "Board of  Directors"  or "Board") may
from time to time reasonably  direct,  including  normal duties as an officer of
the Bank.

         2. Term of  Employment.  The term of  employment  under this  Agreement
shall be for three years,  commencing on the date of this Agreement and, subject
to the requirements of the succeeding sentence,  shall be deemed  automatically,
without further action,  to extend for an additional three (3) months at the end
of each  calendar  quarter,  so  that at any  time  the  remaining  term of this
Agreement  shall be from two and three quarter (2 3/4) years to three (3) years.
Prior to the end of each calendar quarter, the Board of Directors shall consider
and review (with appropriate corporate  documentation  thereof, and after taking
into  account  all  relevant  factors,  including  the  Executive's  performance
hereunder)  extension  of the term  under  this  Agreement,  and the term  shall
continue  to extend in the manner  set forth  above  unless  either the Board of
Directors  does not approve such  extension and provides  written  notice to the
Executive of such event or the Executive gives written notice to the Bank of his
election  not to extend the term,  in each case with such  written  notice to be
given  not less  than  thirty  (30)  days  prior to any such  calendar  quarter.
References  herein to the term of this Agreement shall refer both to the initial
term and successive terms.

         3.    Compensation, Benefits and Expenses.
               -----------------------------------

               (a) Base Salary.  The Bank shall compensate and pay the Executive
during the term of this  Agreement a minimum base salary at the rate of $144,685
per annum ("Base  Salary"),  payable in cash not less frequently than bi-weekly;
provided,  that  the  rate of such  salary  shall be  reviewed  by the  Board of
<PAGE>
Directors not less often than annually,  and the Executive  shall be entitled to
receive  increases at such  percentages  or in such amounts as determined by the
Board of Directors. The base salary may not be decreased without the Executive's
express written consent.

               (b)  Discretionary  Bonus.  The  Executive  shall be  entitled to
participate in an equitable manner with all other senior management employees of
the Bank in  discretionary  bonuses that may be  authorized  and declared by the
Board of Directors to its senior  management  executives  from time to time.  No
other  compensation  provided for in this Agreement shall be deemed a substitute
for the Executive's right to participate in such discretionary  bonuses when and
as declared by the Board.

               (c)  Participation in Benefit and Retirement Plans. The Executive
shall be entitled to  participate in and receive the benefits of any plan of the
Bank which may be or may become  applicable  to senior  management  relating  to
pension or other  retirement  benefit  plans,  profit-sharing,  stock options or
incentive plans, or other plans,  benefits and privileges given to employees and
executives  of the Bank,  to the extent  commensurate  with his then  duties and
responsibilities, as fixed by the Board of Directors of the Bank.

               (d)  Participation in Medical Plans and Insurance  Policies.  The
Executive  shall be entitled to  participate  in and receive the benefits of any
plan or  policy  of the Bank  which may be or may  become  applicable  to senior
management relating to life insurance, short and long term disability,  medical,
dental, eye-care, prescription drugs or medical reimbursement plans.

               (e) Vacations and Sick Leave.  The Executive shall be entitled to
paid annual vacation leave in accordance  with the policies as established  from
time to time by the  Board of  Directors,  which  shall in no event be less than
four weeks per annum.  The  Executive  shall also be  entitled to an annual sick
leave benefit as established by the Board for senior management employees of the
Bank. The Executive shall not be entitled to receive any additional compensation
from the Bank for  failure to take a  vacation  or sick  leave,  nor shall he be
permitted to accumulate unused vacation or sick leave from one year to the next,
except to the extent authorized by the Board of Directors.

               (f) Expenses. The Bank shall reimburse the Executive or otherwise
provide for or pay for all  reasonable  expenses  incurred by the  Executive  in
furtherance of, or in connection with the business of the Bank,  including,  but
not by way of limitation,  automobile and traveling expenses, and all reasonable
entertainment expenses, subject to presentation of appropriate documentation and
other  limitations  as may be established by the Board of Directors of the Bank.
If such expenses are paid in the first instance by the Executive, the Bank shall
reimburse the Executive therefor.

               (g) Changes in  Benefits.  The Bank shall not make any changes in
such plans, benefits or privileges previously described in Section 3(c), (d) and
(e) which would adversely affect the Executive's rights or benefits  thereunder,
unless such change  occurs  pursuant to a program  applicable  to all  executive
officers of the Bank and does not result in a  proportionately  greater  adverse
change in the rights of, or benefits  to, the  Executive  as  compared  with any
other executive officer of the Bank. Nothing paid to Executive under any plan or
arrangement  presently in effect or made available in the future shall be deemed
to be in lieu of the  salary  payable to  Executive  pursuant  to  Section  3(a)
hereof.

         4.    Loyalty; Noncompetition.
               -----------------------

               (a) The Executive shall devote his full time and attention to the
performance  of his  employment  under  this  Agreement.  During the term of the
Executive's  employment under this Agreement,

                                      -2-
<PAGE>
the  Executive  shall not engage in any  business  or  activity  contrary to the
business affairs or interest of the Bank or Parent.

               (b)  Nothing  contained  in this  Section  4 shall be  deemed  to
prevent or limit the right of Executive to invest in the capital  stock or other
securities  of any  business  dissimilar  from that of the Bank or  Parent,  or,
solely as a passive or minority investor, in any business.

         5. Standards.  During the term of this  Agreement,  the Executive shall
perform his duties in  accordance  with such  reasonable  standards  expected of
executives with comparable  positions in comparable  organizations and as may be
established from time to time by the Board of Directors.

         6.   Termination and Termination Pay.  The Executive's employment under
this Agreement shall be terminated upon any of the following occurrences:

               (a) The death of the Executive during the term of this Agreement,
in  which  event  the  Executive's  estate  shall be  entitled  to  receive  the
compensation  due the Executive  through the last day of the calendar quarter in
which Executive's death shall have occurred.

               (b)  The  Board  of  Directors  may  terminate  the   Executive's
employment at any time, but any termination by the Board of Directors other than
termination  for Just  Cause,  shall  not  prejudice  the  Executive's  right to
compensation or other benefits under the Agreement.  The Executive shall have no
right to receive compensation or other benefits for any period after termination
for Just Cause. The Board may within its sole discretion,  acting in good faith,
terminate  the  Executive  for  Just  Cause  and  shall  notify  such  Executive
accordingly.  Termination for "Just Cause" shall include  termination because of
the Executive's personal dishonesty, incompetence, willful misconduct, breach of
fiduciary duty involving personal profit,  intentional failure to perform stated
duties,  willful  violation of any law, rule or  regulation  (other than traffic
violations or similar  offenses) or final  cease-and-desist  order,  or material
breach of any provision of the Agreement.

               (c) Except as provided pursuant to Section 9 herein, in the event
Executive's  employment  under  this  Agreement  is  terminated  by the Board of
Directors without Just Cause, the Bank shall be obligated to continue to pay the
Executive the salary provided pursuant to Section 3(a) herein, up to the date of
termination  of  the  remaining  term  (including  any  renewal  term)  of  this
Agreement, but in no event for a period of less than twelve months, and the cost
of Executive obtaining all health,  life,  disability,  and other benefits which
the Executive  would be eligible to  participate in through such date based upon
the benefit levels  substantially equal to those being provided Executive at the
date of termination of employment.

               (d) If the  Executive is removed  and/or  permanently  prohibited
from participating in the conduct of the Bank's affairs by an order issued under
Sections  8(e)(4) or 8(g)(1) of the Federal  Deposit  Insurance Act ("FDIA") (12
U.S.C.  1818(e)(4) and (g)(1)), all obligations of the Bank under this Agreement
shall terminate, as of the effective date of the order, but the vested rights of
the parties shall not be affected.

               (e) If the Bank is in default (as  defined in Section  3(x)(1) of
FDIA) all  obligations  under this Agreement  shall  terminate as of the date of
default,  but  this  paragraph  shall  not  affect  any  vested  rights  of  the
contracting parties.

               (f) All  obligations  under this  Agreement  shall be terminated,
except to the extent determined that continuation of this Agreement is necessary
for the  continued  operation of the Bank:  (i) by the Director

                                      -3-
<PAGE>
of the Office of Thrift Supervision ("Director of OTS"), or his or her designee,
at the time that the Federal Deposit Insurance  Corporation ("FDIC") enters into
an  agreement  to  provide  assistance  to or on  behalf  of the Bank  under the
authority  contained  in Section  13(c) of FDIA;  or (ii) by the Director of the
OTS, or his or her designee, at the time that the Director of the OTS, or his or
her  designee  approves  a  supervisory  merger to resolve  problems  related to
operation of the Bank or when the Bank is  determined by the Director of the OTS
to be in an unsafe or unsound  condition.  Any rights of the  parties  that have
already vested, however, shall not be affected by such action.

               (g) The voluntary termination by the Executive during the term of
this  Agreement  with the delivery of no less than 30 days written notice to the
Board of  Directors,  other than  pursuant  to Section  9(b),  in which case the
Executive shall be entitled to receive only the compensation, vested rights, and
all employee benefits up to the date of such termination.

               (h) Notwithstanding anything herein to the contrary, any payments
made to the Executive pursuant to the Agreement, or otherwise,  shall be subject
to and  conditioned  upon  compliance with 12 USC ss.1828(k) and any regulations
promulgated thereunder.

         7.  Suspension  of  Employment.  If the  Executive is suspended  and/or
temporarily  prohibited from  participating in the conduct of the Bank's affairs
by a notice  served  under  Section  8(e)(3)  or (g)(1)  of the FDIA (12  U.S.C.
1818(e)(3)  and (g)(1)),  the Bank's  obligations  under the Agreement  shall be
suspended as of the date of service,  unless stayed by appropriate  proceedings.
If the charges in the notice are  dismissed,  the Bank may within its discretion
(i)  pay  the  Executive  all or part of the  compensation  withheld  while  its
contract  obligations  were suspended and (ii) reinstate any of its  obligations
which were suspended.

         8. Disability.  If the Executive shall become disabled or incapacitated
to the extent  that he is unable to perform his duties  hereunder,  by reason of
medically determinable physical or mental impairment,  as determined by a doctor
engaged by the Board of Directors  and  acceptable to the  Executive,  Executive
shall  nevertheless  continue to receive the compensation and benefits  provided
under the terms of this  Agreement  as follows:  100% of such  compensation  and
benefits for a period of 12 months,  but not exceeding the remaining term of the
Agreement,  and 65%  thereafter  for the remainder of the term of the Agreement.
Such benefits noted herein shall be reduced by any benefits  otherwise  provided
to the Executive during such period under the provisions of disability insurance
coverage in effect for Bank employees.  Thereafter,  Executive shall be eligible
to receive  benefits  provided by the Bank under the  provisions  of  disability
insurance  coverage  in effect  for Bank  employees.  Upon  returning  to active
full-time  employment,  the Executive's  full  compensation as set forth in this
Agreement shall be reinstated as of the date of commencement of such activities.
In the event that the  Executive  returns to active  employment  on other than a
full-time  basis,  then his  compensation  (as set forth in Section 3(a) of this
Agreement)  shall be reduced in proportion to the time spent in said employment,
or as shall otherwise be agreed to by the parties.

         9.    Change in Control.
               -----------------

               (a) Notwithstanding any provision herein to the contrary,  in the
event of the involuntary  termination of Executive's  employment during the term
of this Agreement following any change in control of the Bank or Parent,  absent
Just Cause, Executive shall be paid an amount equal to the product of 2.99 times
the Executive's  "base amount" as defined in Section  280G(b)(3) of the Internal
Revenue  Code of 1986,  as amended  (the  "Code")  and  regulations  promulgated
thereunder.  Said sum shall be paid, at the option of  Executive,  either in one
(1) lump sum within thirty (30) days of such termination discounted to

                                      -4-
<PAGE>

the present  value of such  payment  using as the discount  rate the  Applicable
Federal Rate specified at Section 280G of the Code, or in periodic payments over
the next 36 months or the remaining term of this Agreement whichever is less, as
if Executive's employment had not been terminated, and such payments shall be in
lieu of any  other  future  payments  which  the  Executive  would be  otherwise
entitled  to receive  under  Section 6 of this  Agreement.  Notwithstanding  the
forgoing, all sums payable hereunder shall be reduced in such manner and to such
extent so that no such payments made  hereunder when  aggregated  with all other
payments to be made to the  Executive  by the Bank or the Parent shall be deemed
an "excess parachute payment" in accordance with Section 280G of the Code and be
subject to the  excise tax  provided  at Section  4999(a) of the Code.  The term
"control"  shall refer to the ownership,  holding or power to vote more than 25%
of the  Parent's  or Bank's  voting  stock,  the  control of the  election  of a
majority of the Parent's or Bank's  directors,  or the exercise of a controlling
influence over the management or policies of the Parent or Bank by any person or
by  persons  acting  as a group  within  the  meaning  of  Section  13(d) of the
Securities  Exchange Act of 1934.  The term "person"  means an individual  other
than the Executive, or a corporation,  partnership,  trust,  association,  joint
venture, pool, syndicate,  sole proprietorship,  unincorporated  organization or
any other form of entity not  specifically  listed  herein.  A change in control
shall  not be  deemed  to  have  occurred  in a  transaction  whereby  the  Bank
reorganizes  and is acquired by a new parent  corporation  of which the board of
directors  is  comprised  of more  than a  majority  of the  existing  Board  of
Directors of the Bank.

               (b)  Notwithstanding any other provision of this Agreement to the
contrary,  Executive may voluntarily terminate his employment during the term of
this  Agreement  following  a  change  in  control  of the Bank or  Parent,  and
Executive  shall  thereupon  be entitled to receive  the  payment  described  in
Section 9(a) of this Agreement,  upon the occurrence, or within ninety (90) days
thereafter,  of any of the following events, which have not been consented to in
advance by the Executive in writing:  (i) if Executive would be required to move
his personal  residence or perform his principal  executive  functions more than
twenty-five (25) miles from the Executive's  primary office as of the signing of
this Agreement;  (ii) if in the organizational  structure of the Bank, Executive
would be  required  to  report to a person or  persons  other  than the Board of
Directors  of the Bank;  (iii) if the Bank should  fail to maintain  Executive's
base  compensation  in effect as of the date of the  Change in  Control  and the
existing  employee  benefits plans,  including  material  fringe benefit,  stock
option and  retirement  plans;  (iv) if Executive  would be assigned  duties and
responsibilities  other than those  normally  associated  with his  position  as
referenced  at  Section  1,  herein;  (v)  if  Executive's  responsibilities  or
authority  have in any way been  materially  diminished  or reduced;  or (vi) if
Executive would not be reelected to the Board of Directors of the Bank.

         10. Withholding. All payments required to be made by the Bank hereunder
to the Executive  shall be subject to the  withholding of such amounts,  if any,
relating  to tax  and  other  payroll  deductions  as the  Bank  may  reasonably
determine should be withheld pursuant to any applicable law or regulation.

        11.    Successors and Assigns.
               ----------------------

               (a) This  Agreement  shall inure to the benefit of and be binding
upon any corporate or other successor of the Bank or Parent which shall acquire,
directly or indirectly, by merger, consolidation,  purchase or otherwise, all or
substantially all of the assets or stock of the Bank or Parent.

               (b) Since the Bank is  contracting  for the unique  and  personal
skills of the  Executive,  the Executive  shall be precluded  from  assigning or
delegating his rights or duties  hereunder  without first  obtaining the written
consent of the Bank.

                                      -5-
<PAGE>
        12. Amendment;  Waiver. No provisions of this Agreement may be modified,
waived or discharged unless such waiver,  modification or discharge is agreed to
in  writing,  signed by the  Executive  and such  officer or  officers as may be
specifically  designated  by the Board of  Directors  of the Bank to sign on its
behalf.  No waiver by any  party  hereto at any time of any  breach by any other
party  hereto  of, or  compliance  with,  any  condition  or  provision  of this
Agreement  to be  performed  by such  other  party  shall be  deemed a waiver of
similar or  dissimilar  provisions  or conditions at the same or at any prior or
subsequent time.

         13.  Governing  Law. The  validity,  interpretation,  construction  and
performance of this Agreement shall be governed by the laws of the United States
where  applicable and otherwise by the substantive  laws of the  Commonwealth of
Pennsylvania.

        14.  Nature of  Obligations.  Nothing  contained  herein shall create or
require the Bank to create a trust of any kind to fund any benefits which may be
payable  hereunder,  and to the extent  that the  Executive  acquires a right to
receive  benefits from the Bank  hereunder,  such right shall be no greater than
the right of any unsecured general creditor of the Bank.

         15. Headings.  The section headings contained in this Agreement are for
reference  purposes  only  and  shall  not  affect  in any  way the  meaning  or
interpretation of this Agreement.

        16.  Severability.  The  provisions  of this  Agreement  shall be deemed
severable  and the  invalidity  or  unenforceability  of any  provision  of this
Agreement  shall  not  affect  the  validity  or  enforceability  of  the  other
provisions of this Agreement, which shall remain in full force and effect.

        17. Arbitration.  Any controversy or claim arising out of or relating to
this  Agreement,  or the breach  thereof,  shall be settled  by  arbitration  in
accordance  with the rules then in effect of the district office of the American
Arbitration  Association  ("AAA")  nearest to the home  office of the Bank,  and
judgment upon the award rendered may be entered in any court having jurisdiction
thereof,  except to the extent  that the parties  may  otherwise  reach a mutual
settlement of such issue.  Further, the settlement of the dispute to be approved
by the Board of the Bank may include a provision  for the  reimbursement  by the
Bank  to  the  Executive  for  all  reasonable  costs  and  expenses,  including
reasonable  attorneys' fees, arising from such dispute,  proceedings or actions,
or the Board of the Bank or the Parent may authorize such  reimbursement of such
reasonable  costs and  expenses  by separate  action  upon a written  action and
determination   of  the  Board  following   settlement  of  the  dispute.   Such
reimbursement shall be paid within ten (10) days of Executive  furnishing to the
Bank or Parent  evidence,  which may be in the form,  among other  things,  of a
canceled check or receipt, of any costs or expenses incurred by Executive.

         18. Entire Agreement. This Agreement together with any understanding or
modifications  thereof as agreed to in writing by the parties,  shall constitute
the entire agreement between the parties hereto.

                                      -6-

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