Exhibit 10.17



                              AMENDED AND RESTATED
                               OPERATING AGREEMENT

                                       OF

                              LIGHTSTONE MEMBER LLC







                         Dated as of September 27, 2004






                              AMENDED AND RESTATED
                               OPERATING AGREEMENT

                                       OF

                              LIGHTSTONE MEMBER LLC

                  This Amended and Restated Operating Agreement is entered into
this 27 th day of September, 2004, by and among DAVID LICHTENSTEIN, an
individual ("Managing Member"), with an address c/o The Lightstone Group LLC,
326 Third Street, Lakewood, New Jersey 08701 and PRESIDENTIAL REALTY
CORPORATION, a Delaware corporation, with an address at 180 South Broadway,
White Plains, New York 10605 ("PRC").

                  WHEREAS, David Lichtenstein, as the sole member, formed the
Company by the filing of a Certificate of Formation with the Delaware Secretary
of State, and entered into the Operating Agreement of the Company dated
September 24, 2004 (the "Original Agreement"); and

                  WHEREAS, on September 24, 2004, the Property Owners, each of
which is wholly owned by the Company, acquired the Properties, subject to the
Mortgage Loan; and

                  WHEREAS, on the date hereof, the Mezzanine Lender is making
the Mezzanine Loan to the Company;
and

                  WHEREAS, David Lichtenstein desires to admit PRC as a member
of the Company and to amend and restate the terms and conditions of the Original
Agreement.

                  NOW THEREFORE, for good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, the Original Agreement
is hereby amended and restated in its entirety to read as follows:

                              EXPLANATORY STATEMENT

                  The parties have agreed to organize and operate a Delaware
limited liability company, which limited liability company shall henceforth be
organized and operated in accordance with the terms and subject to the
conditions set forth in this Agreement.

                  NOW, THEREFORE, for good and valuable consideration, the
parties, intending legally to be bound, hereby agree as follows:

                                    ARTICLE I
                                  Defined Terms

                  The following capitalized terms shall have the meanings
specified in this Article I.

                  "Act" means the Delaware Limited Liability Company Act,
Delaware Code, Title 6, Sections 18-101, et seq., as amended from time to time.




                  "Additional Capital Contribution" shall have the meaning set
forth in Section 3.2.

                  "Adjusted Book Value" means, with respect to each Company
asset, the carrying value of each such asset on the books of the Company for
federal income tax accounting purposes, as calculated pursuant to the rules set
forth in Code (as hereinafter defined) Section 704 and Regulation (as
hereinafter defined) Section 1.704.

                  "Adjusted Capital Account Deficit" means, with respect to any
Member, the deficit balance, if any, in the Member's Capital Account as of the
end of the relevant taxable year, after giving effect to the following
adjustments:

                  (a) credit to such Capital Account the amounts which the
Member is obligated to restore or is deemed obligated to restore pursuant to the
penultimate sentences of Regulation Sections 1.704-2(g)(1) and 1.704-2(i)(5);
and

                  (b) debit to such Capital Account the items described in
Regulation Sections 1.704-1 (b)(2)(ii)-(d)(4), (5), and (6).

                  The foregoing definition of Adjusted Capital Account Deficit
is intended to comply with the provisions of Section 1.704-1(b)(2)(ii)(d) of the
Regulations and shall be interpreted consistently therewith.

                  "Affiliate" means, with respect to any Member, any Person
which directly or indirectly through one or more intermediaries Controls, is
Controlled by or is under common Control with a specified Person.

                  "Agreement" means this Operating Agreement, as amended from
time to time.

                  "Approval" (and any variation thereof) of a Member shall mean
the prior written approval of such Member. Use of the term "reasonable" or
"reasonably" in connection with the term "Approval" or any variation thereof or
with the term "satisfactory" means that such Approval shall not be withheld,
conditioned or delayed unreasonably. Unless either of such terms is used in
connection with the term "Approval" (or any variation thereof), such Approval
may be granted or withheld in a Member's (or its authorized representative's)
sole discretion.

                  "Bankruptcy Action" means, with respect to a Person, (a)
instituting proceedings to be adjudicated bankrupt or insolvent; (b) consenting
to the institution of bankruptcy or insolvency proceedings against it; (c)
filing a petition seeking, or consenting to, reorganization or relief under any
applicable federal or state law relating to bankruptcy; (d) consenting to the
appointment of a receiver, liquidator, assignee, trustee, sequestrator (or other
similar official) of such Person or a substantial part of its property; (e)
making any assignment for the benefit of creditors; (f) admitting in writing its
inability to pay its debts generally as they become due or declare or effect a
moratorium on its debts; or (g) taking any action in furtherance of any such
action described in (a) through (f), or (h) any other event which would cause
such Person to cease to be a member of a limited liability company under Section
18-304 of the Act.

                  "Capital Account" means an account to be maintained by the
Company for each Member in accordance with the provisions of Regulation Section
1.704-1 (b)(2)(iv).

                  "Capital Contribution" means the total amount of cash
contributed to the Company by a Member.

                  "Capital Proceeds" means (A) the cash or other consideration
received by the Company (including interest on installment sales when received)
as a result of (i) a sale, exchange, abandonment, foreclosure, insurance award,
condemnation, easement sale or other similar transaction relating to any Company
Assets, (ii) any financing or refinancing relating to any Company Assets, (iii)
capital contributions to the Company upon admission of new members and (iv) any
other transaction which, in accordance with generally accepted accounting
principles, would be treated as a capital event, in each case less (B) any such
cash which is applied to (i) the payment of transaction costs and expenses, (ii)
the repayment of debt of the Company which is required under the terms of any
indebtedness of the Company or which has been authorized to be repaid by the
Managing Member, (iii) the repair, restoration or other improvement of Company
Assets which is required under any contractual obligation of the Company or
which has been authorized by the Managing Member and (iv) the establishment of
reserves as reasonably required by the Managing Member. "Capital Proceeds" shall
also mean any of the foregoing which are received by a partnership or other
vehicle in which the Company is a partner or investor or in which the Company
otherwise has an interest, to the extent received by the Company as dividends or
distributions.

                  "Cash Flow" means all cash funds derived from operations
(including interest received on reserves), but not including Capital Proceeds,
without reduction for any noncash charges, but less cash funds used to pay
current operating expenses (including, without limitation, all property
management and/or asset management fees) and to pay or establish reasonable
reserves for future expenses, debt payments, capital improvements, and
replacements as determined by the Managing Member.

                  "Closing Date" means the date of consummation by the Property
Owners of the acquisition of the Properties in accordance with the Purchase
Agreement.

                  "Code" means the Internal Revenue Code of 1986, as amended, or
any corresponding provision of any succeeding law.

                  "Company" means the limited liability company formed in
accordance with this Agreement.

                  "Company Assets" means all right, title and interest of the
Company in and to all or any portion of the assets of the Company and any
property (real or personal) or estate acquired in exchange therefor or in
connection therewith.

                  "Control" shall mean, with respect to a specified Person, (i)
the ownership, control or power to vote fifty percent (50%) or more of (x) the
outstanding shares of any class of voting securities or (y) beneficial
interests, of any such Person, directly or indirectly, or acting through one or
more Persons, (ii) the control in any manner over the managing member(s) or the
election of more than one director or trustee (or persons exercising similar
functions) of such Person, or (iii) the power to exercise, directly or
indirectly, control over the management or policies of such Person.
"Controlling" and "Controlled" have meanings correlative thereto.

                  "Damages" shall have the meaning set forth in Section 5.4.2.

                  "Distributions" shall mean, as to any Member, all
distributions of Proceeds made to such Member pursuant to this Agreement.

                  "Economic Interest" shall have the meaning set forth in
Section 6.3.

                  "Indemnitee" shall have the meaning set forth in Section 5.4.
1.

                  "Initial Capital Contributions" shall have the meaning set
forth in Section 3. 1.

                  "Involuntary Withdrawal" means, with respect to any Member,
the occurrence of any of the following events:

                  (a) a Bankruptcy Action occurs with respect to such Member;

                  (b) such Member files an answer or other pleading admitting or
failing to contest the material allegations of a petition filed against the
Member in any proceeding described in the definition of Bankruptcy Action;

                  (c) any proceeding against such Member seeking reorganization,
arrangement, composition, readjustment, liquidation, dissolution, or similar
relief under any statute, law, or regulation, continues for one hundred twenty
(120) days after the commencement thereof, or the appointment of a trustee,
receiver, or liquidator for the Member or all or any substantial part of the
Member's properties without the Member's agreement or acquiescence, which
appointment is not vacated or stayed for one hundred twenty (120) days or, if
the appointment is stayed, for one hundred twenty (120) days after the
expiration of the stay during which period the appointment is not vacated;

                  (d) if such Member is a partnership or a limited liability
company, the dissolution and commencement of winding up of the partnership or
limited liability company; or

                  (e) if such Member is a corporation, the dissolution of the
corporation or the revocation of its charter.

                  "Managing Member" shall mean David Lichtenstein or any
successor Managing Member appointed pursuant to this Agreement.

                  "Member" means each Person signing this Agreement as a member
of the Company and any Person who subsequently is admitted as a member of the
Company.

                  "Member Nonrecourse Deduction" means "partner nonrecourse
deduction" within the meaning of Regulation Section 1.704-2(i).

                  "Membership Interest" means all of the rights of a Member in
the Company, including a Member's: (a) Capital Account; (b) share of the Profits
and Losses of, and the right to receive distributions from, the Company; (c)
right to inspect the Company's books and records; (d) to the extent provided in
this Agreement, the right to participate in the management of and vote on
matters coming before the Company; and (e) to the extent provided under this
Agreement, the right to act as an agent of the Company.

                  "Mezzanine Lender" means PRC.

                  "Mezzanine Loan" means that certain loan in the amount of
$8,600,000 made by Mezzanine Lender to the Company as evidenced by the Mezzanine
Note and secured by a certain Pledge and Security Agreement each dated the date
hereof.

                  "Mezzanine Note" means that certain Promissory Note dated the
date hereof by the Company to Mezzanine Lender in the amount of $8,600,000.

                  "Minimum Gain" means "partnership minimum gain" as determined
pursuant to Regulation Section 1.704-2(d). Minimum Gain shall be computed
separately for each Member in a manner consistent with the Regulations under
Code Section 704(b).

                  "Mortgage Borrower" means the Property Owners.

                  "Mortgage Loan" means that certain loan from Wachovia Bank to
Property Owners and Martinsburg Mall LLC in the aggregate maximum principal
amount of $105,000,000 made pursuant to that certain Fee and Leasehold Mortgage,
Deed of Trust, Deed to Secure Debt, Assignment of Rents, Fixture Filing, and
Security Agreement dated September 24, 2004.

                  "Negative Capital Account" means a Capital Account with a
balance of less than zero.

                  "Non-Managing Member" shall mean PRC.

                  "Nonrecourse Deductions" shall have the meaning ascribed to
such term in Regulations Section 1.704-2(b)(1).

                  "Percentage"  means, as to a Member, the percentage set forth
after the Member's name on Exhibit A.

                  "Person" means and includes an individual, corporation,
limited liability company, partnership, joint venture estate, trust,
unincorporated association, or other entity, any federal, state, county or
municipal government or any bureau, department or agency thereof and any
fiduciary acting in such capacity on behalf of any of the foregoing.

                  "Proceeds" means the collective reference to Capital Proceeds
and Cash Flow.

                  "Profit" and "Loss" means, for each taxable year of the
Company (or other period for which Profit or Loss must be computed), the
Company's net taxable income or loss determined in accordance with Code Section
703(a), with the following adjustments:

                  (a) all items of income, gain, loss, deduction, or credit
required to be stated separately pursuant to Code Section 703(a)(1) shall be
included in computing taxable income or loss; and

                  (b) any income of the Company that is exempt from federal
income tax and is not otherwise taken into account in computing Profit or Loss
shall be included in computing taxable income or loss; and

                  (c) any expenditures of the Company described in Code Section
705(a)(2)(B) (or treated as such pursuant to Regulation Section
1.704-1(b)(2)(iv)(i)) and not otherwise taken into account in computing Profit
or Loss, shall be subtracted from taxable income or loss; and

                  (d) gain or loss resulting from any taxable disposition of
Company property shall be computed by reference to the adjusted book value of
the property disposed of, notwithstanding the fact that the adjusted book value
differs from the adjusted basis of the property for federal income tax purposes;
and

                  (e) in lieu of the depreciation, amortization, or cost
recovery deductions allowable in computing taxable income or loss, there shall
be taken into account the depreciation computed based upon the adjusted book
value of the asset; and

                  (f) to the extent an adjustment to the adjusted tax basis of
any Company asset pursuant to Code Sections 734(b) or 743(b) is required,
pursuant to Regulations Section 1.7041(b)(2)(iv)(m)(4), to be taken into account
in determining Capital Accounts as a result of a distribution other than in
liquidation of a Member's interest in the Company, the amount of such adjustment
shall be treated as an item of gain or loss from the disposition of such asset
for purposes of computing Profits or Losses; and

                  (g) notwithstanding any other provision of this definition,
any items which are specially allocated pursuant to Section 4.3 hereof shall not
be taken into account in computing Profit or Loss.

                  "Properties" means the properties owned by the Property
Owners.

                  "Property  Owners" means Shenango Valley Mall LLC, West
Manchester Mall LLC,  Bradley Square Mall LLC and Mount Berry Square Mall LLC

                  "Purchase Agreement" means that certain Purchase and Sale
Agreement between PREIT Associates, L.P., as seller, and Lightstone Real Estate
Partners LLC, as purchaser.

                  "Regulations" means the income tax regulations, including any
temporary regulations and proposed regulations to the extent that their proposed
effective date would cause them to be applicable as of the date of any
determination, from time to time promulgated under the Code.

                  "Removed Member" means a member who withdraws from the Company
as a result of an Involuntary Withdrawal.

                  "Sale" means any sale or final disposition of the Property.

                   "Transfer" means-when used as a noun-any sale, hypothecation,
pledge, assignment, attachment, or other transfer-and, when used as a verb-means
to sell, hypothecate, pledge, assign, or otherwise transfer, in each case
whether accomplished directly or indirectly.

                   "Treasury Regulations" means the regulations issued from time
to time by the Internal Revenue Service with respect to the Code.

                   "Unreturned Capital Contribution" means, as to each Member,
such Member's Capital Contribution less the aggregate amount previously
distributed to such Member under Section 4.1.2(b).

                   "Voluntary Withdrawal" means a Member's disassociation with
the Company by means other than a Transfer or an Involuntary Withdrawal.

                                   ARTICLE 11
                    Formation and Name: Office; Purpose; Term

                   2.1 Organization. The parties hereby organize a limited
liability company pursuant to the Act and the provisions of this Agreement and,
for that purpose, have caused the Certificate of Formation to be prepared,
executed, and filed with the Delaware Secretary of State on September 10, 2004.
The Managing Member shall take such further actions as shall be required by the
Act or other laws of the jurisdiction in which the Property is located, or as
may be desirable thereunder, to form the Company and to qualify the Company to
do business in the State of New York. At all times during the term of this
Agreement, each Member shall execute, and, on behalf of the Company, the
Managing Member shall promptly cause to be filed, such other and further
certificates or instruments and amendments thereto as may be necessary or
desirable (i) for the perfection and continued maintenance of the Company as a
limited liability company under the Act and under the laws of any state in which
the Company is then doing business, (ii) to cause such certificates or other
documents to reflect accurately the agreement of the Members and the amount
(including reductions), if required, of their respective Capital Contributions,
and (iii) to permit the Company to own the membership interest in the Property
Owner and transact business lawfully.

                   2.2 Name of the Company. The name of the Company shall be
Lightstone Member LLC. The Company may do business under that name and under any
other name or names upon which the Members agree. If the Company does business
under a name other than that set forth in its Certificate of Formation, then the
Managing Member shall file a certificate as required by the Act.

                   2.3 Purpose. (a) Notwithstanding anything to the contrary in
this Agreement or in any other document governing the formation, management or
operation of the Company, the Company is organized solely for the following
purposes: (i) to own the membership interest in each Property Owner and to act
as the sole member of each Property Owner pursuant to the terms of the Limited
Liability Company Agreement of each Property Owner dated September 20, 2004,
(ii) to enter into the Mezzanine Loan Agreement and all other documents in
connection with the Mezzanine Loan (the "Mezzanine Loan Documents") with
Mezzanine Lender, and to perform its obligations with respect thereto, and (iii)
to engage in any and all business permitted under the Act which are necessary
and incidental thereto. The Company has the power and authority to do anything
permitted by the Act and other applicable law, subject to the immediately
preceding sentence.

                   (b) The Company, by or through the Managing Member on behalf
of the Company, may enter into and perform the Mezzanine Loan, the Mezzanine
Loan Documents, and all documents, agreements, certificates, or financing
statements contemplated thereby or related thereto, all without any further act,
vote or approval of any other Person notwithstanding any other provision of this
Agreement, the Act or applicable law, rule or regulation. The foregoing
authorization shall not be deemed a restriction on the powers of the Company or
the Managing Member to enter into other agreements on behalf of the Company.

                   2.4 Duration. The duration of the Company shall begin upon
the filing of the Certificate of Formation with the Delaware Secretary of State
and shall continue until its existence is terminated pursuant to Article VII of
this Agreement.

                   2.5 Members. The name, present mailing address, taxpayer
identification number, and Percentage of each Member are set forth on Exhibit A.

                   2.6 Principal Office. The Company shall maintain its
principal place of business c/o The Lightstone Group LLC, 326 Third Street,
Lakewood, NJ 08701.

                                   ARTICLE III
                       Members; Capital; Capital Accounts

                   3.1 Capital Contributions. The parties hereto agree that the
aggregate required initial capital contributions of all Members shall be
$3,400,000 ("Initial Capital Contributions"). Set forth on Exhibit A attached
hereto is a description of the respective portion of the Initial Capital
Contributions deemed made by each Member on the date hereof.

                   3.2 Additional Capital. The Managing Member shall make any
additional capital contributions to the Company from time to time in amounts in
excess of the Initial Capital Contributions required to carry out the purpose of
the Company as set forth in Section 2.3 hereof (the "Additional Capital
Contributions").

                   3.3     No Interest on Capital Contributions. No interest
shall be paid on the Capital Contributions of Members.

                  3.4 Form of Return of Capital. If a Member is entitled to
         receive a return of a Capital Contribution, the Company shall
         distribute cash to the Member in return of same.

                  3.5      Capital Accounts. A separate Capital Account shall be
maintained for each Member.

                   3.6 Limited Liability of Members. No Member shall have any
personal liability for any obligation of the Company except for any personal
liability expressly assumed in writing by the Managing Member in connection with
the incurrence of Company indebtedness.

                                   ARTICLE IV
                   Distributions and Profit, Loss Allocations

                   4.1 Distributions Generally. Except as provided in Section
4.4 hereof, distributions of Proceeds shall be distributed to the Members at the
reasonable discretion of the Managing Member, subject to the terms and
conditions of all indebtedness of the Company; provided that Cash Flow shall be
distributed not less than annually and Capital Proceeds shall be distributed not
later than forty-five (45) days from the closing of the transaction giving rise
to such Capital Proceeds.

                  4. 1.1 Distributions of Cash Flow.

                   Except as provided in Section 4.4 hereof, distributions of
Cash Flow shall be made to the Members as follows:

                   (a) First, to the Managing Member, until the Managing Member
has received an aggregate amount under this Section 4.1.1(a) and under Section
4.1.2(a) below equal to an accrued return of eleven percent (11%) per annum on
the Managing Member's Unreturned Capital Contribution;

                  (b) Then, to the Members in accordance with their respective
Percentages.

                  4.1.2    Distribution of Capital Proceeds.

                   Except as provided in Section 4.4 hereof,  Capital  Proceeds
shall be distributed to the Members as follows:

                   (a) First, to the Managing Member, until the Managing Member
has received an aggregate amount under this Section 4.1.2(a) and under Section
4.1.1(a) above equal to an accrued return of 11 % per annum on the Managing
Member's Unreturned Capital Contribution;

                   (b) Then, to the Managing Member, until the Managing member
has received an aggregate amount under this Section 4.1.2(b) equal to the
Managing Member's Capital Contribution.

                  (c) Then, to the Members in accordance with their respective
Percentages.

                  4.2      Allocation of Profits and Losses.

                  (a) Allocations. The items of income, expense, gain and loss
of the Company comprising Profits and Losses for a taxable year shall be
allocated among the persons who were Members during such taxable year in a
manner that will reduce, proportionately, the differences between their
respective Partially Adjusted Capital Accounts and Target Capital Accounts for
such taxable year. No portion of the Losses for any taxable year shall be
allocated to a Member whose Target Capital Account is greater than or equal to
its Partially Adjusted Capital Account for such taxable year. No portion of the
Profits for any taxable year shall be allocated to any Member whose Partially
Adjusted Capital Account is greater than or equal to its Target Capital Account
for such taxable year. For this purpose "Partially Adjusted Capital Account "
means, with respect to any Member for any taxable year, the Capital Account of
such Member at the beginning of such taxable year, adjusted for all
contributions and distributions during such year and all special allocations
pursuant to Section 4.3 respect to such taxable year, but before giving effect
to any allocations of Profits or Losses for such taxable year pursuant to this
Section 4.2. For this purpose "Target Capital Account" means the amount (which
may be either a positive or a deficit balance) equal to:

                  (i) the amount of the hypothetical distribution (if any) that
         such Member would receive if, on the last day of the taxable year, (x)
         all Company assets, including cash, were sold for cash equal to their
         respective Adjusted Book Values, taking into account any adjustments
         thereto for such taxable year, (y) all Company liabilities were
         satisfied in cash according to their terms (limited, with respect to
         each nonrecourse liability, to the respective Adjusted Book Values of
         the assets securing such liability), and (z) the net proceeds thereof
         (after satisfaction of such liabilities) were distributed in full
         pursuant to Section 4.1.2, over

                  (ii) the sum of (x) the amount, if any, without duplication,
         that such Member would be obligated to contribute to the capital of
         the Company pursuant to any provision of this Agreement, (y) such
         Member's share of Company Minimum Gain determined pursuant to
         Regulations Section 1.704-2(g), and (z) such Member's share of Member
         Nonrecourse Debt Minimum Gain determined pursuant to Regulations
         Section 1.704-2(j)(5), all computed immediately prior to the
         hypothetical sale described in Section 4.2(a)(i) hereof.

         (b) Determination of Items Comprising Allocations.

                  (i) In the event that the Company has Profits for a taxable
year,

                           (A) for any Member whose Capital Account balance
                  needs to be reduced pursuant to Section 4.2 hereof, the
                  allocation required by Section 4.2 shall be comprised of a
                  proportionate share (based upon the relative amounts their
                  Capital Accounts need to be reduced) of each of the Company's
                  items of expense or loss entering into the computation of
                  Profits for such taxable year to the extent necessary to
                  eliminate to the maximum extent possible for the taxable year
                  in question, the differential between their respective
                  Partially Adjusted Capital Accounts and Target Capital
                  Accounts; and

                           (B) the allocation pursuant to Section 4.2 hereof in
                  respect of each Member (other than a Member referred to in
                  Section 4.2(b)(i)(A) hereof) shall be comprised of a
                  proportionate share (based upon the relative amounts their
                  Capital Accounts need to be adjusted) of each Company item of
                  income, gain, expense and loss entering into the computation
                  of Profits for such taxable year (other than the portion of
                  each Company item of expense and loss, if any, that is
                  allocated pursuant to Section 4.2(b)(i)(A) hereof).

                  (ii) In the event the Company has Losses for a taxable year,

                           (A) for any Member whose Capital Account balance
                  needs to be increased pursuant to Section 4.2 hereof, the
                  allocation required by Section 4.2 shall be comprised of a
                  proportionate share (based upon the relative amounts their
                  Capital Accounts need to be increased) of each of the
                  Company's items of income and gain entering into the
                  computation of Losses for such taxable year to the extent
                  necessary to eliminate to the maximum extent possible for the
                  taxable year in question, the differential between their
                  respective Partially Adjusted Capital Accounts and Target
                  Capital Accounts; and

                           (B) the allocation pursuant to Section 4.2 hereof in
                  respect of each Member (other than a Member referred to in
                  Section 4.2(b)(ii)(A) hereof) shall be comprised of a
                  proportionate share (based upon the relative amounts their
                  Capital Accounts need to be adjusted) of each Company item of
                  income, gain, expense and loss entering into the computation
                  of Losses for such taxable year (other than the portion of
                  each Company item of income and gain, if any, that is
                  allocated pursuant to Section 4.2(b)(ii)(A) hereof).

                  (iii) To the maximum extent possible in each taxable year, the
         items of taxable income and gain that are required to be specially
         allocated among any Members who need to be allocated items of Profit
         under Section 4.2(b) shall be allocated among them in the same
         proportion as the total of all Profit items that need to be allocated
         among them under Section 4.2(b). Correspondingly, to the maximum extent
         possible in each taxable year, the items of tax-deductible items of
         expense and loss that are required to be specially allocated among all
         Members who need to be allocated items of Loss under Section 4.2(b)
         shall be allocated among them in the same proportion as the total of
         all Loss items that need to be allocated among them under Section
         4.2(b). The purpose of this subsection is to assure that such taxable
         and tax-deductible items are fairly allocated among the Members each
         taxable year.


         4.3      Special Allocations.

                  4.3.1 Regulatory Allocations. Notwithstanding Section 4.2,
allocations of net income, net gain and net loss shall be made consistent with
the qualified income offset and Minimum Gain chargeback provisions of the
Regulations promulgated under Section 704(b) of the Code. Member Nonrecourse
Deductions of the Company for any fiscal year shall be specially allocated to
the Member who bears the economic risk of loss for the liability in question.
The foregoing provision relating to Member Nonrecourse Deductions is intended to
satisfy the requirements of Regulation Section 1.704-2(i)(1) and shall be
interpreted in accordance therewith. Nonrecourse Deductions of the Company for
any fiscal year shall be specially allocated to the Members in the same
proportion as their respective Percentages.

                  4.3.2 Residual Allocations; Code Section 704(c) Allocations.
All items of income, gain, loss, deduction, and any other allocations not
otherwise provided for shall be allocated among the Members for federal, state
and local income tax purposes consistent with the manner that the corresponding
constituent items of Profits and Losses shall be allocated among the Members
pursuant to this Agreement, except as may otherwise be provided herein or by the
Code. To the extent the Regulations promulgated pursuant to Subchapter K of Code
(including under Sections 704(b) and (c) of the Code) require allocations for
tax purposes that differ from the foregoing allocations, the Managing Member
shall determine the manner in which such tax allocations shall be made so as to
comply more fully with such Regulations. Allocations required under Section
704(c) (relating to items of income, gain, loss and deduction with respect to
contributed property), or under Section 704(c) principles applicable under
Regulations Sections 1.704-1(b)(2)(iv) (relating to Company property that has
been revalued for Capital Account purposes) are solely for purposes for federal,
state and local taxes, and shall not be taken into account in computing any
Member's Capital Account or share of Profit or Loss or other items or
distributions under any provisions of this Agreement.

                  4.3.3 Gross Income Allocation. In the event any Member has an
Adjusted Capital Account Deficit at the end of any fiscal year of the Company,
such Member shall be specially allocated items of Company income and gain in the
amount and manner sufficient to eliminate, to the extent required by the
Regulations, the Adjusted Capital Account Deficit of such Member as quickly as
possible, provided that an allocation pursuant to this Section 4.3.3 shall be
made only if and to the extent that such Member would have an Adjusted Capital
Account Deficit in excess of such amount after all other allocations provided
for in Section 4.2 and this Section 4.3 have been tentatively made as if the
provision for the qualified income offset in Section 4.3.1 and this Section
4.3.3 were not in the Agreement.

                  4.3.4 Loss Limitation. No Member shall be allocated Losses or
deductions if the allocation would cause the Member to have an Adjusted Capital
Account Deficit or would increase the Member's Adjusted Capital Account Deficit.
Any allocation of Loss or deduction that cannot be made to a Member by reason of
this Section 4.3.5 shall be made to such Members that have positive Capital
Account balances in accordance with their relative balances subject to the
limitation set forth in the preceding sentence. If any Members are allocated an
amount of Loss or deduction by reason of the previous sentence, subsequent items
of income or gain in of an equal amount shall be allocated to such Members as
soon as possible to reverse such prior allocation of Loss.

                  4.4      Liquidation and Dissolution.

                  4.4.1 If the Company is liquidated, in the year of such
liquidation the assets of the Company shall be distributed to the Members in
accordance with the positive balances in their respective Capital Accounts,
after taking into account all adjustments to Capital Accounts for the Company
taxable year during which the liquidation occurs.

                  4.4.2    No Member shall be obligated to restore a Negative
Capital Account.

                  4.5      General.

                  4.5.1 Except as otherwise provided in this Agreement, the
timing and amount of all distributions shall be determined by the Managing
Member.

                  4.5.2 All distributions shall be made to the Persons shown on
the records of the Company to be Members as of the day on which such
distribution is made. Notwithstanding the foregoing, unless the Company's
taxable year is separated into segments, if there is a Transfer or an
Involuntary Withdrawal during the taxable year, the Profit and Loss for such
taxable year shall be allocated between the original Member and the successor
generally on the basis of the number of days each was a Member during the
taxable year; provided, however, the Company's taxable year shall be segregated
into two or more segments in order to account for Profit, Loss or proceeds
attributable to any Sales on other extraordinary, non-recurring items of the
Company.

                   4.5.3 The Members are hereby authorized, upon the advice of
the Company's tax counsel, to amend this Article IV to the extent required to
comply with the Code and the Regulations promulgated under Code Sections
514(c)(9)(E) and 704(b); provided, however, that no amendment shall either (i)
materially affect distributions to a Member without such Member's Approval or
(ii) cause this Agreement to not comply with Code Section 514(c)(9)(E) and the
Regulations promulgated thereunder.

                   4.6 Clawback. Notwithstanding the other provisions of this
Article IV, (a) if, as a result of a mistake, any Member has received more money
under Section 4.1 than the amount to which it was entitled, the recipient shall
return the excess amounts distributed to it within 5 business days after written
notice from the Managing Member (or any Non-Managing Member if the Managing
Member fails to do so) requesting such return and (b) if for any reason after
Managing Member has received money under Section 4.1.1(b) it is determined that
any Non-Managing Member has not received any amount to which it is entitled
under a higher distribution priority in Section 4. 1.1 (a) (whether on account
of a subsequent contribution of Capital by any Non-Managing Member, the making
of a Contribution Loan or otherwise), then until such Non-Managing Member
receives such amount there shall be distributed to such Non-Managing Member all
sums otherwise distributable to Managing Member under Section 4.1, but such sums
shall in no event exceed the sums previously distributed to Managing Member
pursuant to Section 4. 1. 1 (b) and Managing Member agrees (A) to relinquish and
waive any right it may have under Section 4.1.1(b) to receive such sums and (B)
that the distribution of such sums to such Non-Managing Member shall, for
purposes of determining whether Managing Member has received the sums it is
entitled to receive under Section 4. 1. 1 (b), be deemed to have satisfied such
entitlement. If necessary, the Managing Member shall have the authority to treat
such payments to any Non-Managing Member as guaranteed payments and to specially
allocate the deduction to Managing Member to reduce any excess Capital Account
of Managing Member if permitted under Code Section 514(c)(9)(E) and the
Regulations thereunder.

                                    ARTICLE V
                     Management: Rights, Powers, and Duties

                   5.1 Management. Except as otherwise expressly provided
herein, the management and control of the Company shall be vested in the
Managing Member. Except as otherwise expressly provided herein, the Managing
Member shall have sole and exclusive continuing authority to manage the Company,
and shall have all of the rights, powers and authority conferred upon a manager
or a managing member under the Act to carry out any and all objects of the
Company and to perform all acts and enter into and perform all contracts and
undertakings which, in its sole discretion, it deems necessary, advisable or
incidental thereto. No Member shall have authority to bind the Company through
its action or inaction in connection with any matter except for the Managing
Member. Notwithstanding the foregoing, Managing Member shall cause the Company,
as the sole member of the Property Owners, to cause each of the Property Owners
to distribute all Cash Flow of the Property Owners to the Company no less
frequently than annually, subject to any restrictions or limitations imposed on
the Property Owners pursuant to the terms of the Mortgage Loan.

                  (a) All Member Approval. Notwithstanding any other provisions
of
this Agreement, including Section 5.1, the Company and/or the Managing Member
may not, without the reasonable approval of PRC, sell any of the Properties or
refinance the Mortgage Loan.

                   5.1.1 Affiliate Contracts Approval. The Property Owners, the
Company and/or the Managing Member may not, without the Approval of PRC, enter
into any agreements relating to the Property with any Affiliate of any Member
(an "Affiliate Contract").

                   5.2     Personal Service. No Member shall be required to
perform services for the Company solely by virtue of being a Member.

                   5.3      Duties of Parties.

                   5.3.1 The Members shall devote such time to the business and
affairs of the Company as is necessary to carry out the Members' duties set
forth in this Agreement.

                   5.3.2 Nothing in this Agreement shall be deemed to restrict
in any way the rights of any Member, or of any Affiliate of any Member, to
conduct any other business or activity whatsoever, and no Member shall be
accountable to the Company or to any other Member with respect to that business
or activity even if the business or activity competes with the Company's
business. The organization of the Company shall be without prejudice to the
Members' respective rights (or the rights of their respective Affiliates) to
maintain, expand, or diversify such other interests and activities and to
receive and enjoy profits or compensation therefrom. Each Member waives any
rights the Member might otherwise have to share or participate in such other
interests or activities of any other Member or the Member's Affiliates.

                   5.3.3 Managing Member shall cause the Company as the sole
member of the Property Owners, to use its best efforts to operate the Properties
so that, the rental income derived from each lease with respect to the
Properties will qualify as "rents from real property" as that term is defined in
the Internal Revenue Code Section 856(d)(1).

                  5.4      Liability and Indemnification.

                  5.4.1 Except as specifically set forth elsewhere in this
Agreement to the contrary, or as otherwise required by law, no Member nor any of
its officers, directors, advisors or agents (each of whom is an "Indemnitee")
shall be liable, responsible or accountable in damages or otherwise to any of
the other Members or the Company for any act performed by Indemnitee within the
scope of the authority conferred upon him or it by this Agreement, or for any
failure or refusal by Indemnitee to perform any act, unless such act or failure
or refusal to act constitutes willful misconduct, gross negligence, or breach of
fiduciary duty in the performance of Indenmitee's obligations to the Company or
the Members. The doing of any act or the failure to do any act by any
Indemnitee, the effect of which may cause or result in loss or damage to the
Company or the other Members, shall not subject Indemnitee to any liability
under this Agreement if done or omitted pursuant to a favorable opinion of law
issued by counsel of recognized standing engaged by the Company and experienced
in the matters at issue.

                  5.4.2 To the fall extent permitted by the Act, the Company
shall indemnify, defend and hold harmless each Indemnitee from and against any
direct claim, action, suit or proceeding brought or threatened against such
Indemnitee, and from and against any direct loss or damage incurred by such
Indemnitee ("Damages") by reason of any act performed, or failure or refusal to
act, by him or it for and on behalf of the Company within the scope of his or
its authority under this Agreement, provided that such Indemnitee acted, or
failed or refused to act, in good faith and reasonably believed that such act or
inaction was in the best interests of the Company, and, in the case of a
criminal proceeding, provided that such Indemnitee had no reasonable cause to
believe its conduct was unlawful, and provided further that in each case the act
or failure or refusal to act did not constitute willful misconduct, gross
negligence, or breach of fiduciary duty. The termination of any action, suit or
proceeding by judgment, order, settlement, conviction, or upon a plea of nolo
contendere or its equivalent, shall not, of itself, conclusively establish that
the Person did not act in good faith and in a manner which he or it reasonably
believed to be in or not opposed to the best interests of the Company, and, with
respect to any criminal action or proceeding, had reasonable cause to believe
that his or its conduct was unlawful. Expenses (including reasonable
out-of-pocket attorneys' fees and direct expenses) incurred by an Indemnitee in
defending any civil, criminal, administrative or investigative action, suit or
proceeding may be paid by the Company in advance of the final disposition of
such action, suit or proceeding upon receipt of an undertaking (Approved by the
Members) by or on behalf of such Indemnitee to repay such amount if it shall
ultimately be determined that it is not entitled to be indemnified by the
Company as authorized in this section. Notwithstanding anything to the contrary
in this Section 5.4.2, at any time prior to the indefeasible repayment in full
of the Mezzanine Loan, the Company's indemnification obligation under this
Section 5.4 shall (a) be fully subordinated to the Loan and (b) not constitute a
claim against the Company or its assets until such time as the Loan has been
indefeasibly paid in accordance with its terms and otherwise has been fully
discharged, unless otherwise agreed to by Lender in writing.

                   5.5 Fees and Expenses. Neither the Members nor any of their
Affiliates or the respective principals or employees of either of them shall be
entitled to any reimbursement for any costs and expenses or paid any salary or
other compensation incurred in furtherance of the business of the Company,
except as expressly approved by all Members; provided, however, that the
Managing Member shall be reimbursed for reasonable out-of-pocket costs and
expenses incurred by it in the performance of its duties as Managing Member
hereunder. Notwithstanding anything to the contrary provided herein, in any
Affiliate Contract or in any other agreement, in no event shall the Company
reimburse the Members for any overhead costs.

                                   ARTICLE VI

                  Transfer of Interests, Withdrawal of Members

                  6.1      Transfers.
                           ---------

                   (a) Except as set forth in Section 6.1(b) below, no Member
and no direct or indirect owner of such Member, may directly or indirectly,
voluntarily Transfer all, or any portion of, or any interest or rights in, the
Membership Interest owned by such Member without the Approval of the other
Members, which Approval may be withheld in such Member's sole and absolute
discretion. Each Member hereby acknowledges the reasonableness of this
prohibition in view of the purposes of the Company and the relationship of the
Members. The voluntary Transfer, directly or indirectly, of any Membership
Interests or interest in a Member in violation of the prohibition contained in
this Section 6.1 shall be deemed invalid, null and void, and of no force or
effect. Any Person to whom Membership Interests or interests in a Member are
attempted to be transferred in violation of this Section 6.1 shall not be
entitled to vote on matters coming before the Members, participate in the
management of the Company, act as an agent of the Company, receive distributions
from the Company, or have any other rights in or with respect to the Membership
Interests.

                   (b) Notwithstanding anything contained herein, each Member
may Transfer its Membership Interest and/or any and all of its rights under this
Agreement to an Affiliate; provided, however, that David Lichtenstein shall at
all times retain control of the Managing Member.

                   (c) If the transferring Member is a corporation whose shares
are not traded on a recognized stock exchange, the provisions of this Section
6.1 shall apply to (x) a Transfer (by one or more Transfers) of a majority of
the stock of such Member, or (y) the creation of new stock (by one or more
transactions) resulting in the vesting of a majority of the stock of such Member
in a party or parties who are nonstockholders as of the date immediately prior
to such transaction, as if such Transfer or vesting of a majority of the stock
of such Member were a Transfer of such Member's Membership Interest in violation
of the provisions of this Section 6.1.

                  (d) If the transferring Member is a partnership or a limited
liability company, the provisions of this Section 6.1 shall apply to a Transfer
(by one or more direct or indirect Transfers) of a majority interest in the
partnership or limited liability company, as if such Transfer were a Transfer of
such Member's Membership Interest in violation of the provisions of this Section
6.1.

                   (e) If the proposed transferor (whether a Member or a
constituent member, partner or shareholder of a Member) is a natural Person,
Transfers shall be permitted (i) to a trust for the benefit of any immediate
family member (father, mother, sister, brother, son, daughter, spouse, niece,
nephew, grandson and/or granddaughter) with respect to the proposed Transfer,
but only if the proposed transferor retains management authority and control of
the interest so transferred or (ii) by succession or testamentary disposition
upon death to any such immediate family members.

                   6.2 Voluntary Withdrawal. No Member shall have the right or
power to Voluntarily Withdraw from the Company, except as otherwise provided by
this Agreement. Any withdrawal in violation of this Agreement shall entitle the
Company to damages for breach, which may be offset against the amounts otherwise
distributable to such Member.

                   6.3 Involuntary Withdrawal. Immediately upon the occurrence
of an Involuntary Withdrawal, the successor of the Removed Member shall not
become a Member, but such successor shall be entitled to the Removed Member's
share of the Profits and Losses of, and the right to receive distributions from,
the Company ("Economic Interest"). If the Company is continued as provided in
Section 7. 1 (c), the successor of the Removed Member shall have all the rights
of a holder of an Economic Interest, including the right to receive the fair
market value of the Removed Member's Economic Interest upon the liquidation of
the Company (and as of such date and no other date), in accordance with the
provisions of Article VII of this Agreement.

                   6.4 New Members. Additional members who are not a party to
this Agreement shall not be admitted to the Company except as provided in this
Article VI.

                                   ARTICLE VII
            Dissolution, Liquidation, and Termination of the Company

                   7.1     Events of Dissolution. The Company shall be dissolved
upon the happening of any of the following events:

                   (a) upon the Sale of the Property and the distribution of all
Proceeds from such Sale, unless the Company provides purchase money financing in
connection with such Sale or obligates itself to retain certain contingent
liabilities and proceeds, in which case the Company shall be dissolved upon the
repayment in full of such financing or the expiration of such contingent
liability period;

                   (b) upon the written agreement of all of the Members;

                   (c) upon the occurrence of an Involuntary Withdrawal, unless
the remaining Members, within ninety (90) days after the occurrence of the
Involuntary Withdrawal, elect to continue the business of the Company pursuant
to the terms of this Agreement; or

                  (d) as may otherwise be required under the Act.

                   7.2 Procedure for Winding Up and Distribution. If the Company
is dissolved, the remaining Members shall wind up its affairs. On winding up of
the Company, the assets of the Company shall be distributed, first, to creditors
of the Company, including holders of Economic Interests who are creditors, in
satisfaction of the liabilities of the Company, and then to the Members and
holders of Economic Interests in accordance with Section 4.4 of this Agreement.

                   7.3 Filing of Articles of Dissolution. If the Company is
dissolved, the Members shall promptly file Articles of Dissolution with the
Delaware Secretary of State. If there are no remaining Members, the Articles
shall be filed by the last Person to be a Member; if there are no remaining
Members, or a Person who last was a Member, the Articles shall be filed by the
legal or personal representatives of the Person who last was a Member.

                                  ARTICLE VIII
                  Books, Records, Accounting, and Tax Elections

                   8.1 Bank Accounts. The Managing Member shall cause all funds
of the Company to be deposited in a bank account or accounts opened in the
Company's name. The Managing Member shall determine the institution or
institutions at which the accounts will be opened and maintained, the types of
accounts, and the Persons who will have authority with respect to the accounts
and the funds therein.

                   8.2 Books and Records. The Managing Member shall keep or
cause to be kept complete and accurate books and records of the Company as
required under the Act as well as supporting documentation of transactions with
respect to the conduct of the Company's business. The books and records shall be
maintained in accordance with GAAP accounting practices and shall be available
at the Company's principal office for examination by any Member or the Member's
duly authorized representative at any and all reasonable times during normal
business hours.

                   8.3 Annual Accounting Period; Accounting Methods; Tax
Elections. The annual accounting period of the Company shall be its taxable
year. The Company's taxable year shall be selected by the Managing Member,
subject to the requirements and limitations of the Code. The Company shall use
such accounting methods as the Managing Member elects in its sole discretion,
subject to the requirements and limitations of the Code. The Managing Member
shall cause the Company's accountants to prepare and file the Company's tax
returns and, together with such accountants, will determine the positions of the
Company on such tax returns subject to the requirements and limitations of the
Code. The Managing Member, on behalf of the Company, shall, from time to time,
make all elections for federal income tax purposes, including, without
limitation, elections under Code Sections 704(c) and 754, with the reasonable
Approval of the Members holding at least 51 % of the Percentages.

                  8.4 Reports.

                  (a) Within ninety (90) days after the end of each taxable year
of the Company, the Managing Member shall cause to be sent to each Person who
was a Member at any time during the taxable year then ended a complete
accounting of the affairs of the Company for the taxable year then ended. In
addition, within ninety (90) days after the end of each taxable year of the
Company, the Managing Member shall cause to be sent to each Person who was a
holder of an Economic Interest at any time during the taxable year then ended,
that tax information concerning the Company which is necessary for preparing the
income tax returns of the holder of the Economic Interest for that year. Any
Member shall have the right to cause an audit of the Company's books and records
to be prepared by independent accountants for any period deemed necessary or
advisable by such Member, the cost of which shall be borne by the party
requesting the audit.

                   (b) Within ninety (90) days after the end of each taxable
year of the Company, the Managing Member will obtain from the Property Owners
and deliver to the Members a statement itemizing the sources and types of gross
revenue for the preceding fiscal year paid by tenants at the Properties and any
other miscellaneous income from the Properties.

                   (c) Managing Member will obtain and deliver to the Members
within thirty (30) days after the end of each calendar quarter a statement
reflecting any leasable space at the Properties that is vacant at the end of the
calendar quarter and all leases and/or renewals entered into by the Property
Owners during such calendar quarter.

                   (d) Within ninety (90) days after the end of each taxable
year of the Company, the Managing Member shall prepare and deliver to the
Members a certificate stating that, except as set forth in the certificate, to
the best knowledge of the Managing Member, the Properties have been operated
during the immediately preceding fiscal year in conformity with the provisions
of Section 5.3.3.

                   8.5 Tax Matters Member. The Members designate the Managing
Member to be the "tax matters partner" ("Tax Matters Member") of the Company
within the meaning of Code Section 6231. The Tax Matters Member shall have all
powers and responsibilities granted to a "tax matters partner" (within the
meaning of Code Section 6231) under the Code and Regulations. The Tax Matters
Member shall keep all Members informed of all notices from government taxing
authorities that may come to the attention of the Tax Matters Member. The
Company shall pay and be responsible for all reasonable third-party costs and
expenses incurred by the Tax Matters Member in performing those duties. Nothing
in this Article VIII shall limit the ability of any Member to take any action in
its individual capacity relating to administrative proceedings of Company
matters that is left to the determination of any individual Member under the
Code or under any similar provision of state or local law. A Member shall be
responsible for any costs incurred by the Member with respect to any tax audit
or tax-related administrative or judicial proceeding against any Member, even
though it relates to the Company. The Tax Matters Member shall not compromise
any dispute with the Internal Revenue Service or agree to extend the statute of
limitations with respect to tax liens of the Company without the Approval of all
of the Members.

                                   ARTICLE IX
                               General Provisions

                   9.1 Assurances. Each Member shall execute all certificates
and other documents and shall do all such filing, recording, publishing, and
other acts as the Managing Member deems appropriate pursuant to Section 2.1 or
otherwise to comply with the requirements of law for the formation and operation
of the Company and to comply with any laws, rules, and regulations relating to
the acquisition, operation, or holding of the property of the Company.

                   9.2 Notifications. Any notice, demand, consent, election,
offer, approval, request, or other communication (collectively a "notice")
required or permitted under this Agreement must be in writing and either
delivered personally, by overnight mail using a nationally recognized overnight
courier or sent by certified or registered mail, postage prepaid, return receipt
requested or by facsimile transmission, provided that the sender of such
transmission can produce evidence of electronic confirmation that such notice
was received by the Member or Member's Agent to whom it was transmitted. A
notice must be addressed to a Member at the Member's last known address on the
records of the Company. A notice to the Company must be addressed to the
Company's principal office. A notice delivered personally or by overnight mail
using a nationally recognized overnight courier will be deemed given only when
acknowledged in writing or rejected by the person to whom it is delivered. A
notice that is sent by mail will be deemed given three (3) business days after
it is mailed. Any party may designate, by notice to all of the others,
substitute addresses or addressees for notices; and, thereafter, notices are to
be directed to those substitute addresses or addressees. A notice sent by
facsimile is deemed given when receipt is confirmed.

                   9.3 Specific Performance. The parties recognize that
irreparable injury will result from a breach of any provision of this Agreement
and that money damages will be inadequate to fully remedy the injury.
Accordingly, in the event of a breach or threatened breach of one or more of the
provisions of this Agreement, any party who may be injured (in addition to any
other remedies which may be available to that party) shall be entitled to seek
one or more preliminary or permanent orders (i) restraining and enjoining any
act which would constitute a breach or (ii) compelling the performance of any
obligation which, if not performed, would constitute a breach.

                   9.4 Complete Agreement. This Agreement constitutes the
complete and exclusive statement of the agreement among the Members with respect
to the subject matter thereof. It supersedes all prior written and oral
statements, including any prior representation, statement, condition, or
warranty.

                   9.5 Applicable Law. All questions concerning the
construction, validity, and interpretation of this Agreement and the performance
of the obligations imposed by this Agreement shall be governed by the internal
law, not the law of conflicts, of the State of Delaware.

                   9.6 Article and Section Titles. The headings herein are
inserted as a matter of convenience only and do not define, limit, or describe
the scope of this Agreement or the intent of the provisions hereof.

                   9.7 Binding Provisions. This Agreement is binding upon, and
inures to the benefit of, the parties hereto and their respective heirs,
executors, administrators, personal and legal representatives, successors, and
permitted assigns.

                   9.8 Exclusive Jurisdiction and Venue. Any suit involving any
dispute or matter arising under this Agreement may only be brought in the United
States District Court for the Southern District of New York or any New York
State Court located in New York County having jurisdiction over the subject
matter of the dispute or matter. All Members hereby consent to the exercise of
personal jurisdiction by any such court with respect to any such proceeding.

                   9.9 Terms. Common nouns and pronouns shall be deemed to refer
to the masculine, feminine, neuter, singular, and plural, as the identity of the
Person may in the context require.

                   9.10 Separability of Provisions. Each provision of this
Agreement shall be considered separable; and if, for any reason, any provision
or provisions herein are determined to be invalid and contrary to any existing
or future law, such invalidity shall not impair the operation of or affect those
portions of this Agreement that are valid.

                   9.11 Counterparts. This Agreement may be executed
simultaneously in two or more counterparts, each of which shall be deemed an
original and all of which, when taken together, constitute one and the same
document. The signature of any party to any counterpart shall be deemed a
signature to, and may be appended to, any other counterpart.

                   9.12 Amendments. Any amendment to this Agreement shall be
effective only if such amendment is evidenced by a written instrument duly
executed and delivered by each Member.

                                    ARTICLE X
                         Representations and Warranties

                   10.1 Each Member  represents,  warrants  and  covenants  to
each other Member and to the Company that:

                   (a) such Member, if not a natural person, is duly formed and
validly existing under the laws of the jurisdiction of its organization with
full power and authority to conduct its business to the extent contemplated in
this Agreement;

                   (b) this Agreement has been duly authorized, executed and
delivered by such Member and constitutes the valid and legally binding agreement
of such Member enforceable in accordance with its terms against such Member
except as enforceability hereof may be limited by bankruptcy, insolvency,
moratorium and other similar laws relating to creditors' rights generally and by
general equitable principles;

                   (c) the execution and delivery of this Agreement by such
Member and the performance of its duties and obligations hereunder do not result
in a breach of any of the terms, conditions or provisions of, or constitute a
default under, any indenture, mortgage, deed of trust, credit agreement, note or
other evidence of indebtedness, or any lease or other agreement, or any license,
permit, franchise or certificate, to which such Member is a party or by which it
is bound or to which its properties are subject, or require any authorization or
approval under or pursuant to any of the foregoing, or violate any statute,
regulation, law, order, writ, injunction, judgment or decree to which such
Member is subject;

                  (d) such Member is not in default (nor has any event occurred
which
with notice, lapse of time, or both, would constitute a default) in the
performance of any obligation, agreement or condition contained in any
indenture, mortgage, deed of trust, credit agreement, note or other evidence of
indebtedness or any lease or other agreement, or any license, permit, franchise
or certificate, to which it is a party or by which it is bound or to which the
properties of it are subject, nor is it in violation of any statute, regulation,
law, order, writ, injunction, judgment or decree to which it is subject, which
default or violation would materially adversely affect such Member's ability to
carry out its obligations under this Agreement;

                  (e) there is no litigation, investigation or other proceeding
pending or, to the knowledge of such Member, threatened against such Member or
any of its Affiliates which, if adversely determined, would materially adversely
affect such Member's ability to carry out its obligations under this Agreement;

                  (f) no consent, approval or authorization of, or filing,
registration or qualification with, any court or governmental authority on the
part of such Member is required for the execution and delivery of this Agreement
by such Member and the performance of its obligations and duties hereunder.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]




                  IN WITNESS WHEREOF, the parties have executed, or caused this
Agreement to be executed, under seal, as of the date set forth hereinabove.

                                                MEMBERS:

                                                /s/ David Lichtenstein
                                                ----------------------------
                                                David Lichtenstein

                                                PRESIDENTIAL REALTY CORPORATION

                                                By: /s/ Jeffrey F. Joseph
                                                --------------------------
                                                Name: Jeffrey F. Joseph
                                                Title: President






                              LIGHTSTONE MEMBER LLC
                               Operating Agreement


                                    Exhibit A
               List of Members, Capital, and Membership Interests

         Name                 Initial Cash Contribution       Percentages

David Lichtenstein                 $3,400,000.00                   71%

Presidential Realty Corporation    $0.00                           29%