EMPLOYMENT AGREEMENT


     This  Employment  Agreement,  made as of January 1,  2000,  by and  between
Jeffrey F. Joseph, residing at 19 Stillman Lane,  Pleasantville,  New York 10570
("Executive") and PRESIDENTIAL REALTY CORPORATION, a Delaware corporation having
offices at 180 South Broadway,  White Plains,  New York 10605 ("Employer" or the
"Company");
                                                W I T N E S S E T H:

         WHEREAS, Employer is desirous of employing Executive as its President;
         and

         WHEREAS, Executive desires to render such services to Employer.

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

         1. Employment.  Employer hereby employs Executive as its President, and
Executive  hereby  accepts  such  employment,  upon  the  terms  and  conditions
hereinafter set forth.


         2.  Duties.

         (a) In his capacity as President of Employer,  Executive  shall perform
for Employer the  executive,  administrative  and technical  duties  customarily
associated  with  such  position,  as  well  as  such  other  duties  reasonably
consistent  therewith as may be  reasonably  assigned to Executive  from time to
time by the Board of Directors of Employer;  provided,  however, that the duties
assigned shall be of a character and dignity  appropriate to a senior  executive
of a corporation  and  consistent  with  Executive's  experience,  education and
background.

         (b) Except as  otherwise  set forth in this  paragraph,  (i)  Executive
shall devote his full time and efforts during normal  business days and hours to
the performance of this Employment Agreement and (ii) Executive shall not engage
in the real estate  business or in any other  business  which  conflicts with or
competes in any material way with the business of Employer.  Notwithstanding the
foregoing, Executive may devote such time and efforts to winding up the business
of Ivy  Properties  Ltd. and its affiliates  (collectively,  "Ivy") as Executive
deems reasonably necessary; so long as the devotion of such time and effort does
not  conflict   (without   independent   committee  review)  or  interfere  with
Executive's  performance of his duties as President of Presidential  and in fact
Executive does diligently perform his duties as President of Presidential to the
satisfaction of the Board of Directors of Employer.
         3.  Term.

         (a) This  Employment  Agreement  shall  commence on the date hereof and
shall continue until December 31, 2002, unless terminated  earlier in accordance
with this Employment Agreement.

         (b) This Employment Agreement may be terminated at any time by Employer
for "cause," as defined herein.  For the purpose of this  Employment  Agreement,
termination of Executive's  employment  shall be deemed to have been for "cause"
only if  termination  of his  employment  shall  have been the result of (i) the
conviction  of Executive of any crime  constituting  a felony or any other crime
involving  moral  turpitude,  (ii)  Executive's  willful  refusal  to  follow  a
direction of the Board of Directors of Employer  after written  notice that such
continued  refusal shall result in termination  of his employment for cause,  or
(iii)  Executive's  failure to fulfill  his duties  hereunder  as is required by
Section 2(b) above after written notice that such continued failure shall result
in termination of his employment for cause.

         (c)      This Employment Agreement may also be terminated by Employer
as set forth in Section 11 below.

         4.  Compensation.  Employer shall pay to Executive in
consideration of the services to be rendered hereunder
compensation in the form of a salary:

         (a) for the period  beginning on the date hereof and ending on December
31, 2000, at the annual rate of Two Hundred
Sixty Two Thousand Five Hundred Eighty-four and no/100 ($262,584.00) Dollars
times the Cost of Living Adjustment Factor (as hereinafter defined);

         (b) for the  calendar  year  beginning on January 1, 2001 and ending on
December 31, 2001,  in an amount equal to the salary paid for the calendar  year
beginning  January 1, 2000 and ending on  December  31, 2000 times the lesser of
(i) 1.05 and (ii) the Cost of Living Adjustment Factor; and

         (c) for the  calendar  year  beginning on January 1, 2002 and ending on
December 31, 2002,  in an amount equal to the salary paid for the calendar  year
beginning on January 1, 2001 and ending on December 31, 2001 times the lesser of
(i) 1.05 and (ii) the Cost of Living Adjustment Factor.

          The  salary  for all  such  periods  shall  be paid  less  appropriate
deductions,   if  any,  for  federal,   state  and  city  income   taxes,   FICA
contributions, N.Y.S. disability and any other deductions required by law.

          The Cost of Living  Adjustment  Factor as it is applied in calculating
compensation  payable  to  Executive  for any  period  referred  to  above  (and
retirement compensation payable to Executive for any period described in Section
12 below)  shall be the sum of (x) one (1) plus (y) a fraction  (A) which has as
its numerator the amount,  if any, by which the Revised Consumer Price Index for
Urban Wage Earners and  Clerical  Workers for the New  York-Northern  New Jersey
area, published by the U.S. Department of Labor Statistics (the "Index") for the
last calendar month  preceding the  commence-ment  of such period (which will be
December  in each  case of  annual  salary  described  in this  Section  4) (the
"Increase  Index Month")  exceeds the Index for the calendar month occurring one
year prior to the Increase Index Month (the "Base Index  Month"),  and (B) which
has as its denominator the Index for the Base Index Month.

         In the  event  that the  Index is  converted  to a  different  standard
reference base or otherwise revised, the determination of increased compensation
under this Section 4 and/or  retirement  compensation  under Section 12 shall be
made with the use of such conversion factor, formula or table for converting the
Index as may be published by the Bureau of Labor  Statistics  or, if said Bureau
shall not publish the same, then with the use of such conversion factor, formula
or table as may be published by  Prentice-Hall,  Inc.,  or any other  nationally
recognized publisher of similar statistical information.  If the Index ceases to
be published,  and there is no successor thereto,  such other index as Executive
and Employer shall agree upon in writing shall be substituted  for the Index. If
Executive and Employer are unable to agree as to such  substituted  index,  such
substituted index shall be that determined by arbitration in accordance with the
procedures of the American Arbitration Association.

         In the event that the Index is not available for any month provided for
above, the next available Index shall be used instead, and if the next available
Index is available following a payment for which an adjustment should have been,
then a retroactive adjustment shall also be made.

         (b) Executive's  compensation shall be payable in equal installments in
arrears,  in the same  frequency as other senior  officers of Employer are paid,
but in any event not less frequent than twenty-six (26) bi-weekly installments.

         5. Indemnification.  The Indemnification Agreements previously executed
by Executive and Employer  shall remain in full force and effect during the term
of this Employment Agreement.

         6.  Vacations.  Executive  shall be  entitled,  during the term of this
Employment Agreement to four weeks' vacation annually at full compensation.

         7. Fringe Benefits. Executive shall be entitled, at Employer's expense,
during the term of this Employment Agreement to participate in (a) the following
benefit programs which Employer now maintains for its employees: (i) its Defined
Benefit  Pension Plan,  (ii) its Section 125 cafeteria  plan,  (iii) its Section
401(k) plan if any, (iv) its health  insurance plan for employees  only, (v) its
disability  insurance plan and (vi) its group life  insurance  plan; and (b) all
benefit  programs that Employer  hereafter  establishes  and makes  available to
either  employees in general or to other senior  executive  management  (without
intending to provide  duplicate  coverage to  Executive  if Employer  makes such
available to both employees in general and to senior executive  management).  If
obtainable,  at Executive's  option and, if exercised,  at Executive's sole cost
and expense,  Employer shall include  Executive's  spouse and children under the
health insurance plan maintained by Employer for Executive. In addition,  during
the term of this  Employment  Agreement,  (i)  Employer  shall  also pay for the
premiums  on  Executive's  existing  life  insurance  policy up to a maximum  of
$12,750 per annum and (ii) Employer shall pay and be  responsible  for all costs
of ownership  attributable to the automobile  which Employer  currently owns and
provides  Executive for its use, and for any  replacement  automobile  leased or
purchased  by Employer  pursuant  to Section 9 below.  In  addition,  subject to
Executive providing proper documentation, Employer shall reimburse Executive for
reasonable  travel,  entertainment  and other expenses  incurred by Executive in
providing services hereunder on behalf of Employer. Following any termination of
Executive's employment by Employer, to the extent permitted by law and the party
providing such benefits,  Executive may, at his sole cost and expense,  continue
any fringe benefits, if obtainable, then being provided to Executive.

         8. Bonus.  (a) Subject to paragraph  (b) of this Section 8, in addition
to the  compensation  set forth  above,  Executive  shall be entitled to a bonus
payable  with  respect to each of  calendar  years  2000,  2001 and 2002 (each a
"Bonus  Year") in an amount  equal to 10% of the  product  of (i) the  amount by
which the Per Share Net Cash From Operations (as  hereinafter  defined) for such
Bonus Year exceeds $.53 per share and (ii) the number of shares  outstanding  at
the end of such Bonus  Year.  Notwithstanding  the  foregoing,  the bonus in any
Bonus  Year shall not exceed  33-1/3%  of the salary  compensation  set forth in
Section 4 for such year (prorated if any partial year is involved). The term Per
Share Net Cash from operations shall mean the Net Income for such Bonus Year (as
shown  on  the  Company's  Audited  Financial  Statements)  with  the  following
adjustments:
         (i)  the addition back of any extraordinary deductions to income;
         (ii)  the  addition  back  of  depreciation  of  non-rental   property,
depreciation on rental real estate and amortization of mortgage and organization
costs;
         (iii) with respect to the sales of property and investments,  including
foreclosed  property,  recognized  in any Bonus Year (x) there shall be deducted
from net gain any discount or deferred gain, and (y) any  depreciation  taken on
the sold property during the period that it was owned by Employer shall be added
back before calculating the amount of the net loss or net gain.
         (iv) the  subtraction  of all  "amortization  of discounts on notes and
fees" which are included in Net Income.
         The  Compensation  Committee of Employer shall  calculate the Per Share
Net Cash from Operations in accordance with the formula set forth above, subject
to such adjustments for extraordinary or unforeseen transactions,  including but
not limited to capital gains transactions,  as in the reasonable judgment of the
Compensation  Committee are fair and equitable to Employer and  Executive.  Said
calculations  shall be made with respect to any Bonus Year without regard to the
bonus payable in  accordance  with this  Agreement  (or any other  employment or
similar  Agreement  with  senior  management)  attributable  to said year and/or
attributable to a prior year or years but paid in said year.
         The bonus for any Bonus Year  shall be paid on or before  March 30th of
the next following year;  provided however that if by March 30th of any year the
bonus for the prior Bonus Year has not been finally  determined,  then the bonus
shall be estimated  and an amount equal to the  estimated  bonus will be paid to
Executive on March 30th and as soon as the actual  bonus is finally  determined,
the parties will make an appropriate adjustment.

         Notwithstanding any other provisions of this Agreement, in the event of
any  changes  in the  Company's  outstanding  common  stock by reason of a stock
dividend,  recapitalization,  merger, consolidation,  reorganization,  split up,
extraordinary  dividend,  combination  or exchange of shares,  or the like,  the
Employer and Executive  shall, if applicable,  attempt in good faith to agree on
appropriate  adjustments to the bonus calculations referred to in this paragraph
so as to substantially carry out the intention of this Agreement.

         (b)  Notwithstanding  anything in this  Agreement  to the  contrary (i)
Executive shall not be entitled to a bonus on account of any Bonus Year in which
his  employment  terminates  pursuant to Section 11(e) below or in which his his
employment is terminated for cause, or any Bonus Year thereafter occurring,  and
(ii) if this  Agreement is  terminated  pursuant to paragraph  (b) of Section 11
below,  Executive's  bonus for the Bonus Year in which such  termination  occurs
shall be  prorated  as of the date on which  compensation  is no longer  payable
under said Section 11(b).  In calculating  Per Share Net Cash from Operations to
any such date (if it is not the last day of a calendar  year) the parties  shall
adjust (by projection to said date or as of said date, as the case may be) based
on the Net Income for the period  ending on March 31, June 30,  September  30 or
December 31 of such Bonus Year,  whichever  of said dates is closest to the date
with respect to which the Bonus is calculated.

         9. Purchase of  Replacement  Automobile.  Upon the request of Executive
made subsequent to April 1, 2000 but prior to December 31, 2001,  Employer shall
make  available  to  Executive  a  new  automobile  for  Executive's  use,  said
automobile to be of a make and model  reasonably  acceptable to Executive.  Said
automobile  shall,  at  Employer's  option,  be  either  leased by  Employer  or
purchased by Employer (title to remain in Employer's  name).  The purchase price
of said automobile  (exclusive of taxes),  regardless of whether said automobile
is purchased or leased by Employer, shall not exceed $43,000; provided, however,
that  Executive may select a car costing more than $43,000 if Executive pays for
the  increased  costs to purchase or lease such  automobile.  Employer  shall be
responsible for all costs of ownership  attributable to said vehicle,  including
but not  limited to  insurance,  gas,  oil,  maintenance,  repairs,  etc. On the
termination  of Executive's  employment,  if Employer has purchased the vehicle,
Executive may at any time within three (3) weeks following the effective date of
termination  purchase  the  vehicle  from  Employer at a price equal to the then
"blue book" value of the vehicle times a fraction, the numerator of which is the
amount paid for said vehicle by Employer,  including  sales tax,  "dealer prep",
etc., but excluding any contributions made by Executive,  and the denominator of
which is the  amount  (the  "Total  Purchase  Price")  paid  for  said  vehicle,
including sales tax, "dealer prep" etc. and any contributions made by Executive.
In the event  Executive  does not timely  purchase the vehicle and Executive has
made any  contribution  towards the  purchase  thereof,  if Employer  desires to
retain ownership of the vehicle Employer shall, within three weeks following the
earlier of (i) the expiration of the  aforementioned  three (3) week period,  or
(ii) receipt of notice from  Executive  that he shall not purchase said vehicle,
pay to  Executive  the "blue book value" of the vehicle,  times a fraction,  the
numerator  of which is the  amount  contributed  towards  the  purchase  of said
vehicle by Executive and the  denominator of which is the Total Purchase  Price.
If (i) Executive  does not timely  purchase the vehicle,  and (ii) Employer does
not  desire to retain  ownership  and  Executive  has  contributed  towards  the
purchase thereof, Employer shall promptly sell the vehicle and the parties shall
divide the actual net sales proceeds (after sales taxes and  advertising  costs,
if any), with Executive  receiving a fraction (being the same fraction described
in the  immediately  preceding  sentence)  thereof and  Employer  receiving  the
balance.  Employer  agrees that the automobile  presently owned or leased by the
Company and  utilized by  Executive,  and for which  Employer  pays the expenses
pursuant to Section 7 above,  may be retained or sold by Employer and  Executive
shall have no interest therein.

         10. Stock Options.  The stock options  granted by Employer to Executive
pursuant to Executive's  Employment  Agreement  dated as of January 1, 1997 (the
"Existing Stock Options") shall remain in full force and effect on the terms set
forth in said Employment Agreement. In addition,  Employer agrees that from time
to time to the extent that any Existing  Stock  Options are either (i) exercised
by  Executive  or (ii)  lapse,  if at the  time of any  such  exercise  or lapse
Executive  is  employed  by  Employer,  Employer  shall  (as of the date of such
exercise  or  lapse)  grant new  stock  options  to  Executive  (the "New  Stock
Options")  to  purchase a number of shares of  Employer's  Class B common  stock
equal to the number of shares  covered by the Existing  Stock Options which have
been  exercised  or have  lapsed.  Any New Stock  Options so granted by Employer
shall be subject to the terms and  conditions of the existing  Stock Option Plan
dated January 1, 1999 (the "Stock  Option Plan") and on the following  terms and
conditions:

         (a) the  exercise  price for each New Stock Option  granted  shall be a
price equal to the closing  price of the Class B common stock of Employer on the
date the option is granted;

         (b) each New Stock Option granted pursuant to the terms of this Section
10 shall be  exercisable  for a period of six years from the date such option is
granted,  subject  to  earlier  termination  pursuant  to the terms of the Stock
Option Plan.

         (c)  upon   termination  of  Executive's   employment  for  any  reason
whatsoever,  the  Existing  Stock  Options  and any New  Stock  Options  granted
pursuant to the terms hereof shall terminate  immediately except as provided for
in the Stock Option Plan.

         11.  Employment   Termination;   Termination  Benefits.   The  term  of
employment  hereunder  shall  be  terminated  upon  the  first  to  occur of the
following:

         (a) The  expiration of the term of employment  purusant to Section 3(a)
of this Agreement.

         (b) Executive's death or permanent disability.  "Permanent  Disability"
shall mean physical or mental  incapacity of a nature which prevents  Executive,
or will  prevent  Executive,  in the  reasonable  determination  of the Board of
Directors of Employer,  from  performing  his duties under this  Agreement for a
continuous period of four months or any aggregate period of six months in any 12
month period.  Permanent  Disability shall be deemed to have occurred as of said
determination.  If the term of employment is terminated  because of  Executive's
Permanent Disability, the Employer shall pay, when the same would otherwise have
been  payable  in  accordance   with  this   Agreement,   to  Executive  or  his
representative,  (i) Executive's salary described in Section 4 above, as then in
effect,  less  any  disability  benefits  payable  to  Executive  from  policies
maintained by Employer,  (ii) the bonus described in Section 8 above, subject to
paragraph (b) thereof,  plus (iii)  Executive's  fringe benefits as described in
Section 7 only (but not as described in Section 9 if the  automobile in question
had not yet been delivered to Executive as of the date of  determination  by the
Board),  until (again  subject to paragraph (b) of Section 8 with respect to any
payment  pursuant  to  Section  8) the  later to occur of (A) that day  which is
twenty-four (24) months after the date of determination of Executive's Permanent
Disability and (B) December 31, 2002;  provided  however that subsequent to that
day which is six (6)  months  after  the date of  determination  of  Executive's
Permanent Disability, the payments set forth in subparagraphs (i) and (ii) above
shall be reduced to 50% of such amounts,  less 100% of any  disability  payments
payable to Executive from policies maintained by Employer.

         If the term of employment is terminated  because of Executive's  death,
the  Employer  shall pay,  when the same would  otherwise  have been  payable in
accordance  with this  Agreement,  to Executive's  beneficiary or  beneficiaries
designated in writing to the Company, or to Executive's estate in the absence or
lapse of such designation,  (i) Executive's salary described in Section 4 above,
as then in  effect  and (ii) the bonus  described  in  Section  8 above,  (again
subject to paragraph  (b) of Section 8 with  respect to any payment  pursuant to
said Section 8), in each case for a period of six months  following  Executive's
death,  whether or not the term of employment would have terminated  pursuant to
Section 3(a) prior to the end of such six month period.

         (c) Executive's  employment  being  terminated by the Board "for cause"
pursuant  to  Section  3(b) of this  Agreement.  If  Executive's  employment  is
terminated  for cause,  the  Company's  only  obligation  to Executive  shall be
payment  of  Executive's  salary as  described  in  Section  4 above and  fringe
benefits as  described  in Section 7 above (but not the bonus  compensation  set
forth in Section 8 above for any  period in the year in which  such  termination
occurs),  as in  effect  at the date of  termination,  through  the date of such
termination.  Any termination of Executive's employment under this Section 11(c)
shall not affect Employer's obligation to make the retirement payments set forth
in Section 12(b) below.

         (d)  Executive's  employment  being  terminated  by the Board  "without
cause".  Termination  "without  cause"  shall  mean  termination  of the term of
employment on any basis other than those provided in paragraphs (a), (b), (c) or
(e) of this Section 11. If the term of employment is terminated  without  cause,
the Board shall give 10 days notice thereof to Executive and Executive  shall be
entitled to receive  Executive's salary per Section 4 above, fringe benefits per
Section 7 above but not per Section 9 above (unless the automobile  described in
said  Section 9 was  delivered to Executive  prior to said  termination  without
cause),   and,  subject  to  paragraph  (c)  of  Section  10  above,  all  other
compensation  (including  the bonus  compensation  set forth in Section 8 above,
without  regard to the  provisions  of Section  8(b) above)  which he would have
received  hereunder but for such termination in respect of the unexpired portion
of the term of employment  (in the amounts and at the times provided in Sections
4 and 8 hereof  in the case of  compensation  pursuant  to said  Sections).  Any
termination  of  Executive's  employment  "without  cause"  shall not affect the
Employer's obligation to make the retirement payments set forth in Section 12(b)
below.

         (e) Upon Executive voluntarily  resigning his employment hereunder.  If
Executive's  employment is terminated because Executive  voluntarily resigns his
employment  hereunder,  the Company's only  obligation to Executive shall be the
payment of Executive's  salary  pursuant to Section 4 above and fringe  benefits
pursuant  to Section 7 above (but not the bonus  provided by Section 8 above) as
in effect at the date of such  termination  through the  effective  date of such
termination.  Any termination  resulting from Executive's  voluntary resignation
from his employment hereunder shall not affect Employer's obligation to make the
retirement payments set forth in Section 12(b) below.

         12. The Retirement Period.

         (a) The Retirement  Period shall commence on the first day of the first
calendar month occurring after Executive's  sixty-fifth (65th) birthday, but may
be postponed by mutual agreement between Executive and Employer.  The Retirement
Period  shall  end on  the  day  of  Executive's  death.  The  commencement  and
continuance  of the  Retirement  Period  shall  not  depend  in any way upon the
existence of an active period of employment  relationship  between Executive and
Employer immediately prior to the commencement of the Retirement Period.

         (b)  During  the  Retirement  Period,  the  Employer  agrees  to pay to
Executive  each  year,  in  equal  monthly  installments,  the  sum of  $29,000;
provided,  however,  that the $29,000 annual payment shall be increased annually
after  the  first  year of the  Retirement  Period  to the  product  derived  by
multiplying  the payment in what is then the  immediately  preceding year by the
lesser  of (i)  one  (1)  plus  50%  of the  "fraction"  forming  a part  of the
definition of the Cost of Living Adjustment  Factor (as heretofore  defined) for
the period in question, and (ii) 1.05.

         (c)  Executive's  right to receive the  payments  provided  for in this
Section 12 (i) shall not be  contestable  by Employer for any reason  whatsoever
and  (ii)  shall be in lieu of any  right of  Executive  to  receive  retirement
payments under any previous  employment  agreement with Employer,  and Executive
hereby waives and relinquishes any such rights.

         (d)  Furthermore,  provided  that  Executive  continuously  remains  an
employee  of  Employer  from  the  date of  this  Employment  Agreement  through
Executive's 65th birthday,  unless  otherwise agreed by the parties,  during the
Retirement  Period the Employer shall  maintain in full force and effect,  Group
Life policies and Major Medical and/or "medigap" policies,  which (together with
Medicare or other  benefits  which may otherwise  then be available to Executive
without cost to Executive),  shall provide Executive with benefits substantially
similar to those  existing  for senior  employees  of the Company at the time of
Executive's  retirement.  Executive shall continue to be responsible for any and
all premiums attributable to Executive's spouse and children.

         13. Entire Agreement; Amendment. This Employment Agreement contains the
entire  agreement  between the parties hereto with respect to the subject matter
contained  herein.  This  Employment  Agreement  may  be  amended,  modified  or
supplemented  only by written  agreement of Employer and Executive  expressly to
that effect.

         14.  Waiver of  Compliance.  Any failure of either party to comply with
any obligation,  covenant,  agreement or condition on its part contained  herein
may be  expressly  waived in  writing  by the other  party,  but such  waiver or
failure to insist  upon strict  compliance  shall not operate as a waiver of, or
estoppel  with  respect  to, any  subsequent  or other  failure.  Whenever  this
Employment  Agreement  requires or permits consent by or on behalf of any party,
such consent shall be given in writing.

         15. Notices.  All notices,  requests,  demands and other communications
required or permitted hereunder shall be in writing and shall be deemed given if
delivered by hand or five days after having been mailed, certified or registered
mail with postage prepaid:
         (a) if to Employer, to:

         Presidential Realty Corporation 180 South Broadway
         White Plains, New York 10605
         Attention: Chairman of the Board of Directors

         with a copy to:

         Chairman, Compensation Committee


         (b) if to Executive, to:

         Jeffrey F. Joseph
         19 Stillman Lane
         Pleasantville, New York 10570


         16. Assignment. This Employment Agreement shall inure to the benefit of
Executive and Employer and be binding upon the uccessors and general  assigns of
Employer.  Except as expressly  provided herein,  this Employment  Agreement and
Executive's duties hereunder shall not be assigned or delegated.

         17. Invalid Provisions.  If any provision hereof is held to be illegal,
invalid or unenforceable  under present or future laws effective during the term
hereof,  such  provision  shall  be fully  severable;  this  Agreement  shall be
construed and enforced as if such illegal,  invalid or  unenforceable  provision
had never  comprised a part hereof;  and the remaining  provisions  hereof shall
remain in full  force and  effect  and shall  not be  affected  by the  illegal,
invalid or unenforceable provision or by its severance herefrom. In lieu of such
illegal,  invalid or unenforceable  provision there shall be added automatically
as a part hereof a  provision  as similar in terms to such  illegal,  invalid or
unenforceable provision as may be possible and be legal, valid and enforceable.

         18.  Applicable Law. This  Employment  Agreement shall be construed and
enforced in accordance with the laws of the State of New York.




          IN  WITNESS  WHEREOF,   the  parties  have  executed  this  Employment
Agreement as of the day and year first above written.

                           EMPLOYER:

                           PRESIDENTIAL REALTY CORPORATION

                           BY:  Robert E. Shapiro
                                -----------------
                            Robert E. Shapiro, Chairman
                            of the Board of Directors


                           EXECUTIVE:


                              Jeffrey F. Joseph
                              -----------------
                              Jeffrey F. Joseph