Document:

<PAGE>

                                                                   EXHIBIT 10.14

                              EMPLOYMENT AGREEMENT

            THIS AGREEMENT is made this 1st day of June, 2002 (the "Agreement"),
by and between ARMKEL, LLC, a Delaware limited liability company (the
"Employer"), and ADRIAN HUNS, an individual, residing at 31 Planters Row,
Skillman, NJ 08858 (the "Employee"), to be effective as of June 1, 2002 (the
"Effective Date").

                                   WITNESSETH

            WHEREAS, the Employer is a joint venture between Church & Dwight
Co., Inc. ("C&D") and Kelso & Company ("Kelso");

            WHEREAS, pursuant to an Asset Purchase Agreement (the "Asset
Purchase Agreement") dated as of May 7, 2001, between Armkel, LLC and
Carter-Wallace, Inc. ("C-W"), the Employer acquired the assets comprising the
consumer products business of C-W (the "Transaction");

            WHEREAS, prior to the acquisition, the Employee was an executive
with C-W and was a party to a Change in Control Agreement with C-W dated as of
September 28, 1998, and amended as of January 27, 2000 (collectively, the "CIC
Agreement");

            WHEREAS, as part of the Asset Purchase Agreement, the Employer sent
the Employee a letter dated as of September 28, 2001, confirming its commitment
to honor certain C-W obligations concerning the C-W Corporate Officer Medical
Expense Reimbursement Plan, Personal Financial Counseling Policy, and Split
Dollar life insurance (the "Assurance Letter");

            WHEREAS, following the close of the Transaction, the Employee became
the President of the Employer's International Consumer Products Division (the
"President");

            WHEREAS, the parties wish to enter into an agreement (the
"Agreement") governing the terms and conditions of the Employee's employment
with the Employer;

            WHEREAS, the parties hereto desire to provide for the transition
from the Employer to C&D in the event C&D purchases Kelso's entire interest in
the Employer;

          WHEREAS, the parties hereto desire this Agreement to supersede all
prior agreements governing the Employee's employment, including, without
limitation, the CIC Agreement, Assurance Letter, and the Asset Purchase
Agreement;

            NOW THEREFORE, in consideration of the mutual covenants and promises
hereinafter set forth and for other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the Employer and the Employee
hereby agree as follows:

<PAGE>

            1.    Effectiveness; Employment, Duties and Agreements.

            (a)   As of the Effective Date, this Agreement shall supersede any
other previous written or oral employment, severance, change in control,
employee benefit or other agreements or arrangements between the Employee and
the Employer or C-W, and the Employee hereby waives his rights under any and all
such agreements (including, without limitation, the CIC Agreement, Assurance
Letter, and Asset Purchase Agreement), and releases and agrees to hold harmless
the Employer, C-W, and C&D, and their respective employees, officers, directors,
shareholders, agents, representatives, affiliates, successors, and assigns, from
any and all liability, cost, expense, cause of action, claims, or obligation
thereunder.

            (b)   During the term of this Agreement, the Employer hereby agrees
to employ the Employee as the President of its International Consumer Products
Division, subject to the provisions of Article 3.

                  The Employee hereby accepts such position and agrees to serve
the Employer as the President of its International Consumer Products Division.
The Employee shall report to the Chief Executive Officer of the Employer (the
"CEO"). The Employee shall have the rights, duties and responsibilities as set
forth in this Agreement, and other duties and responsibilities commensurate with
his position or as determined by the CEO. The Employee shall be subject to, and
shall act in accordance with, all reasonable instructions and directions of the
CEO and all applicable policies and rules of the Employer. The Employee's
primary offices shall be located at the Employer's offices in Princeton, New
Jersey or such other location as the Employer may determine. During the
Employee's employment hereunder, the Employer shall reimburse the Employee, upon
receipt of proper documentation, for reasonable and necessary business expenses
incurred in connection with the performance of his duties hereunder in
accordance with the Employer's usual policies and practices.

            (c)   Until the Employee's termination of employment with the
Employer, the Employee shall, subject to Section 1(d) below, devote his full
working time, energy and attention to the performance of his duties and
responsibilities hereunder and shall faithfully and diligently endeavor to
promote the business and best interests of the Employer.

            (d)   While an employee of the Employer, the Employee may not,
without the prior written consent of the CEO, operate, participate in the
management, operations or control of, or act as an employee, officer,
consultant, agent or representative of, any type of business or service (other
than as an employee of the Employer), provided that it shall not be a violation
of the foregoing for the Employee to (i) act or serve as a director, trustee or
committee member of any civic or charitable organization and (ii) manage his
personal, financial and legal affairs, so long as such activities do not
interfere with the performance of his duties and responsibilities to the
Employer as provided hereunder.

                                       2
<PAGE>

            2.    Compensation/Vacation.

            As compensation for the agreements made by the Employee herein
(including, without limitation, his waiver of his rights under the CIC
Agreement, Assurance Letter, and Asset Purchase Agreement, and his release of
the Employer, C&D, and C-W with respect thereto), and the performance by the
Employee of his obligations hereunder, the Employer shall pay the Employee the
following compensation and benefits:

            (a)   Not less than once a month pursuant to the Employer's normal
and customary payroll procedures, a base salary at the rate of $275,000 per
annum (the "Base Salary"), beginning June 1, 2002.

            (b)   The Employee shall be paid a cash sign-on bonus of $600,000
upon the later of the first business day after the Effective Date or the date
this Agreement is signed.

            (c)   The Employee will be eligible to participate in the group
medical, dental, retirement, disability, and life insurance, and any other
benefit plans or programs made available to other similarly situated employees
of the Employer in the country where the Employee is located.

            (d)   The Employee will be eligible for an annual incentive
compensation award ranging from 0%-110% of Base Salary, with a target bonus of
55% of Base Salary (the "Target Bonus") based on the achievement of performance
goals established by the Compensation Committee of the Employer's Board of
Directors. Should such bonus be awarded, it will be paid in accordance with the
Employer's usual practices and, subject to Section 5(b), shall be paid only if
the Employee is an employee of the Employer on the date it is scheduled to be
paid.

            (e)   The Employee shall be paid a cash retention bonus of $600,000
on October 1, 2003, provided that the Employee is an employee of the Employer on
such date.

            (f)   During the term of this Agreement, if C&D purchases Kelso's
entire interest in the Employer (the "Kelso Transaction"), the Employee shall
receive a bonus (the "Change of Control Bonus") equal to $930,000 plus an
"equity appreciation award," if any, based on the return on Kelso's equity
investment in the Employer ("ROE"). The ROE (denominated as a percentage) shall
be determined by the Employer in its sole and absolute discretion within a
reasonable time following the close of the Kelso Transaction. After the Employer
determines the ROE, the equity appreciation award shall be calculated by
multiplying $270,000 by the ratio of the ROE less 23, divided by 10. Provided,
however, that the equity appreciation award shall not be less than zero ($0) nor
more than $270,000. The determination of the equity appreciation award may be
expressed mathematically as follows:

            Equity Appreciation Award = $270,000 * [(ROE - 23)/10], where ROE
            cannot be less than 23 nor more than 33.

                                       3
<PAGE>

            The Employee shall be paid the Change of Control Bonus over a
twenty-four (24) month period following the Kelso Transaction with (i) one-third
payable upon the close of the Kelso Transaction, (ii) one-third payable twelve
(12) months after the close of the Kelso Transaction and, (iii) one-third
payable twenty-four (24) months after the close of the Kelso Transaction. The
Change of Control Bonus will be paid in cash.

            (g)   The Employee hereby agrees to the assignment of his split
dollar life insurance policy and any cash build-up thereunder from C-W to the
Employer.

            (h)   The Employee shall receive 5 weeks of paid annual vacation,
per calendar year, prorated for any partial year, subject to the Employer's
normal vacation policy.

            3.    At-Will Status. The Employee shall be an at-will employee of
the Employer, provided that severance benefits may be paid in accordance with
Section 5(b) hereof upon the Employee's termination of employment with the
Employer for any of the reasons specified in such Section 5(b). The Employee's
employment hereunder shall terminate upon the earliest to occur of the following
events:

            (a)   Death. The Employee's employment hereunder shall terminate
upon his death.

            (b)   Disability. The Employer shall be entitled to terminate the
Employee's employment hereunder for "Disability." For purposes of this
Agreement, the Employee shall be subject to a "Disability" if (i) as a result of
the Employee's incapacity due to physical or mental illness, the Employee shall
have been unable to perform his duties hereunder, or the Employer reasonably
determines that the Employee will not be able to substantially perform his
duties hereunder, for a period of three (3) consecutive months or for 90 days
within any 365-day period, and (ii) within thirty (30) days after Notice of
Termination (as defined in Section 4 below) for Disability is given following
such 3-month or 90/365-day period, as the case may be, the Employee shall not
have returned to the performance of his duties on a full-time basis to the
reasonable satisfaction of the Employer. Such inability or incapacity to perform
the duties hereunder shall be documented to the reasonable satisfaction of the
CEO or his delegate by correspondence from physicians acceptable to the CEO or
his delegate.

            (c)   Cause. The Employer (except as provided herein) may terminate
the Employee's employment for Cause. For purposes of this Agreement, the term
"Cause" shall mean: (i) a material violation by the Employee of this Agreement;
(ii) excessive absenteeism or the failure by the Employee to satisfactorily
perform his duties hereunder; (iii) the Employee's insubordination, misconduct,
gross negligence, or material violation of the Employer policies, work rules, or
codes of conduct; (iv) fraud, dishonesty, theft, embezzlement, or the indictment
(or plea of guilty or nolo contendre) of the Employee of a felony or any other
crime involving moral turpitude; or (v) illegal use of drugs or abuse of
alcohol. Notwithstanding the forgoing, no act or omission described in (i),
(ii), or (iii) above shall constitute "Cause" unless the Employer notifies the
Employee in writing of the acts or omissions that the Employer believes
constitute Cause, and the Employee fails to cure such acts or omissions to the
Employer's satisfaction within 72 hours of receiving such notice.

                                       4
<PAGE>

            (d)   Voluntary Termination. The Employee's employment hereunder may
be terminated at any time by the Employee for Good Reason (as defined in Section
5(c) or for any reason other than Good Reason upon thirty (30) days written
notice to the Employer.

            (e)   Involuntary Termination. The Employer may terminate the
Employee's employment for any reason not constituting Cause, subject to the
terms of Section 5(c).

            4.    Termination Procedure.

            (a)   Notice of Termination. Any termination of the Employee's
employment by the Employee or the Employer (other than termination pursuant to
Section 3(a)) shall be communicated by written "Notice of Termination" to the
Employee or the Employer in accordance with Section 10(a).

            (b)   Date of Termination. "Date of Termination" shall mean the
actual date the Employee's employment with the Employer ends.

            5.    Termination Payments.

            (a)   For Cause or Voluntary Termination. If the Employee's
employment is terminated by the Employer for Cause or the Employee voluntarily
terminates employment with the Employer other than for Good Reason, the Employer
shall pay to the Employee any unpaid Base Salary and vacation pay unused up to
the Date of Termination, and shall have no further obligations hereunder.

            (b)   Death or Disability. If the Employee's employment with the
Employer is terminated due to death or Disability, the Employer shall pay the
Employee (or, in the case of his death, his estate or beneficiary) (i) any
unpaid Base Salary and unused vacation; and (ii) a pro rata portion of the
Target Bonus for the portion of the year he was actively at work prior to his
death or Disability, based on the Employer's and the Employee's actual
performance during such portion of the year, and the Employer shall have no
further obligations hereunder.

            (c)   Termination Not for Cause or Voluntary Termination for Good
Reason. If the Employee's employment with the Employer is terminated by the
Employer not for Cause or by the Employee for Good Reason, the Employer shall
provide the Employee severance benefits of (i) any accrued but unpaid Base
Salary and vacation pay through the Date of Termination; (ii) the Retention
Bonus (if not yet paid); and (iii) the Change of Control Bonus (if not yet
paid), but which shall only become payable one-third upon the Closing of the
Kelso Transaction, one-third twelve months later, and one-third twenty-four
months thereafter. Moreover, for purposes of determining the Change of Control
Bonus for this Section, the equity appreciation award component thereof shall be
deemed to be zero ($0), and thus the Change of Control Bonus shall be fixed at
$930,000. No part of this Change of Control Bonus shall be payable until the
Closing of the Kelso Transaction, and then shall be payable over the time period
provided above. In addition, if such termination occurs after October 1, 2003,
the Employer shall also pay to the Employee (iv) 100% of the Employee's then
current Base Salary (in accordance with the

                                       5
<PAGE>

Employer's normal payroll practices); and (v) the Target Bonus determined under
Section 2(d) for the year in which the Date of Termination occurs, such amount
to be paid in accordance with the Employer's usual practices. Payments under
this Section 5(c) shall be contingent upon the Employee executing a waiver and
release of claims acceptable to the Employer in its discretion. If the Employee
violates any provision of Section 6 or 7 hereof, the Employee shall not be
entitled to receive any amounts under this Section, and any amounts previously
paid shall be forfeited and returned to the Employer. Other than as provided in
this Section 5(c), the Employer shall have no further obligations to the
Employee.

            For purposes of this Agreement, "Good Reason" means (i) any
reduction in the Employee's Base Salary or Target Bonus opportunity; (ii)
required relocation to which the Employee does not consent of more than 45 miles
(provided that extensive travel shall not count as a relocation for this
purpose); or (iii) a transfer of significant international country
responsibilities previously handled by the Employee to another executive of the
Employer, provided that this clause (iii) shall not apply to (A) a sale or other
transfer of all or part of the Employer's international business units, or (B)
the Kelso Transaction. In addition, the occurrence of the Kelso Transaction
shall not be deemed a termination of the Employee's employment with the
Employer.

            6.    Confidential Information and Inventions. As a condition to the
effectiveness of this Agreement, the Employee shall execute the Employer's
Confidential Information and Inventions Agreement. Any violation of such
agreement shall also be deemed a violation of this Agreement.

            7.    Non-Solicitation.

            (a)   In consideration of the Employer's willingness to enter into
this Agreement and provide the payments and benefits provided hereunder, and to
give the Employee access to confidential information regarding the Employer's
business, the Employee shall not:

                  (i)   directly or indirectly, solicit any Customer (as
      hereinafter defined), or any former or prospective Customer, with a view
      to inducing such Customer to enter into an agreement, or otherwise do
      business, with any Competitor (as hereinafter defined) or attempt to
      induce any Customer to terminate its relationship with the Employer or to
      not enter into a relationship with the Employer, as the case may be, while
      an employee hereunder and for a period of two (2) years following the Date
      of Termination; or

                  (ii)  solicit or attempt to solicit the employment of any
      employee of the Employer, or any person employed by the Employer during
      the prior one (1) year period, or attempt to solicit or induce any such
      employee or person to leave the employ of the Employer for a period
      beginning on the Date of Termination and ending two (2) years following
      such date.

                                       6
<PAGE>

            (b)   For purposes of this Section 7:

                  (i)   A "Competitor" shall mean any person, corporation, firm,
      partnership, proprietorship or other entity engaged in the same business
      as the Employer or, if the Competitor is engaged in businesses other than
      such business, the departments, divisions, affiliates, subsidiaries or
      other units of the Competitor engaged in such business.

                  (ii)  A "Customer" shall mean (1) any person or entity that
      sells, purchases or in any way utilizes the products or services of the
      Employer or (2) any person or entity that has an active business
      relationship with, or has referred business to, the Employer at the time
      of the Date of Termination.

            8.    Third Party Beneficiary Right; Enforcement. The Employee
hereby agrees and acknowledges that his obligations under Sections 6 and 7
hereof are for the benefit of the Employer, and its successors and assigns, and
that such successors and assigns shall have the right to enforce such provisions
hereof to the same extent and in the same manner as the Employer. The Employee
acknowledges and agrees that in the event of the Employee's breach or threatened
breach of the covenants in Sections 6 and 7, the Employer's damage and harm
would be immediate and irreparable, would be difficult to ascertain, and not
subject to adequate remedy at law. Accordingly, the Employer shall have the
right to enforce the covenants contained in Sections 6 and 7 by specific
performance, injunction, and other equitable relief, in addition to any money or
other legal damages to which the Employer may be entitled. If the Employer
institutes any action or proceeding to enforce the provisions hereof, to the
extent permitted by applicable law, the Employee hereby waives the claim or
defense that the Employer has an adequate remedy at law, and the Employee shall
not urge in any such action or proceeding the defense that any such remedy
exists at law. In addition, the Employer need not post any bond or other
security in connection with enforcing the covenants in Sections 6 and 7.
Sections 6, 7 and 8 shall survive the termination of the Employee's employment
by the Employer.

            9.    Reasonableness. The Employee agrees that the Employer engages
in businesses worldwide and actively competes worldwide. The Employee agrees
that the Employer develops substantial confidential information and proprietary
insights and take steps to protect such information and insights. The Employee
agrees that he will be given access to such information and insights in
consideration, among other things, of his agreement to be bound by this
Agreement, including without limitation the confidentiality, non-disclosure,
non-solicitation and intellectual property restrictions and covenants set forth
in Sections 6 and 7 and in the Employer's Confidential Information and
Inventions Agreement. The Employee acknowledges that the restrictions and
covenants set forth in this Agreement, including specifically without limitation
those restrictions and covenants set forth in Sections 6 and 7, are necessary to
prevent the use and disclosure of the Employer's confidential information and to
otherwise protect the legitimate business interests of the Employer. The
Employee further acknowledges that all of the restrictions and covenants in this
Agreement are reasonable in all respects, including without limitation duration,
territory and scope of activity. The Employee agrees that the existence of any
claim or cause of action by the Employee against the Employer, whether
predicated on this Agreement or otherwise, shall not constitute a defense to the
enforcement by the Employer of the covenants and restrictions set forth in this
Agreement.

                                       7
<PAGE>

            10.   Miscellaneous.

            (a)   Any notice or other communication required or permitted under
this Agreement shall be effective only if it is in writing and delivered
personally or sent by registered or certified mail, postage prepaid, addressed
as follows (or if it is sent through any other method agreed upon by the
parties):

            If to the Employer:

            ARMKEL, LLC
            469 North Harrison
            Princeton, NJ  08543

            Attention:  Steven Cugine

            If to the Employee:

            Adrian Huns
            31 Planters Row
            Skillman, NJ  08858

or to such other address as any party hereto may designate by notice to the
other, and shall be deemed to have been given upon receipt.

            (b)   This Agreement by and between the Employee and the Employer
constitutes the entire agreement between the parties hereto with respect to the
Employee's employment, and supersedes and is in full substitution for any and
all prior understandings or agreements, whether oral or written, with respect to
the Employee's employment.

            (c)   This Agreement may be amended only by an instrument in writing
signed by the parties hereto, and any provision hereof may be waived only by an
instrument in writing signed by the party against whom or which enforcement of
such waiver is sought. The failure of any party hereto at any time to require
the performance by any other party hereto of any provision hereof shall in no
way affect the full right to require such performance at any time thereafter,
nor shall the waiver by any party hereto of a breach of any provision hereof be
taken or held to be a waiver of any succeeding breach of such provision or a
waiver of the provision itself or a waiver of any other provision of this
Agreement.

            (d)   This Agreement is binding on and is for the benefit of the
parties hereto and their respective successors, heirs, executors, administrators
and other legal representatives. Neither this Agreement nor any right or
obligation hereunder may be assigned by the Employee. The Employee specifically
consents to the assignment of this Agreement, and all rights of the Employer
contained herein, including without limitation rights under Sections 6, 7 and 8,
to any successor or assign of the Employer.

                                       8
<PAGE>

            (e)   The Employer may withhold from any amounts payable to the
Employee hereunder all federal, state, city or other taxes that the Employer may
reasonably determine are required to be withheld pursuant to any applicable law
or regulation.

            (f)   THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW JERSEY, WITHOUT REFERENCE TO HER
PRINCIPLES OF CONFLICTS OF LAW.

            (g)   Any dispute or claim, other than a violation or purported
violation by the Employee of Section 6 or 7 hereof, arising out of or relating
to this Agreement or otherwise relating to the employment relationship with the
Employer, shall be subject to binding arbitration, before a single arbitrator,
in Princeton, New Jersey, in accordance with the rules of the American
Arbitration Association as the exclusive remedy for such claim or dispute.
Judgment upon the award rendered by the arbitrator may be entered in any court
of competent jurisdiction. The Employee and the Employer agree that such
arbitration will be confidential and no details, descriptions, settlements or
other facts concerning such arbitration shall be disclosed or released to any
third party without the specific written consent of the other party, unless
required by law or court order or in connection with enforcement of any decision
in such arbitration. The arbitrator shall have no authority to add, delete, or
modify any term of this Agreement. Any damages awarded in such arbitration shall
be limited to the contract measure of damages, and shall not include punitive,
exemplary, special, consequential, indirect, or any other extra contractual
damages. Each side shall pay one-half of the arbitrator's fee and be responsible
for their own attorney's fees.

            (h)   This Agreement may be executed in several counterparts, each
of which shall be deemed an original, but all of which shall constitute one and
the same instrument.

            (i)   The headings in this Agreement are inserted for convenience of
reference only and shall not be a part of or control or affect the meaning of
any provision hereof.

            (j)   All provisions of this Agreement are intended to be severable.
In the event any provision or restriction contained herein is held to be invalid
or unenforceable in any respect, in whole or in part, such finding will in no
way affect the validity or enforceability of any other provision of this
Agreement. The parties hereto further agree that any such invalid or
unenforceable provision will be deemed modified so that it will be enforced to
the greatest extent permissible under law, and to the extent that any court of
competent jurisdiction determines any restriction herein to be unreasonable in
any respect, such court may limit this Agreement to render it reasonable in
light of the circumstances in which it was entered into and specifically enforce
this Agreement as limited.

            (k)   The Employee acknowledges and confirms that he has had the
opportunity to seek such legal, financial and other advice and representation as
he has deemed appropriate in connection with this Agreement.

                                       9
<PAGE>

            IN WITNESS WHEREOF, the parties have executed this Agreement as of
the date first written above.

                                    ARMKEL, LLC

                                    By: /s/ Steven P. Cugine
                                        --------------------------------------
                                        Name:   Steven P. Cugine
                                        Title:  Vice President, Human Resources

                                              /s/Adrian Huns
                                    ------------------------------------------
                                    ADRIAN HUNS

                                       10JEFFREY F. JOSEPH EMPLOYMENT AGREEMENT

 

Exhibit 10.7

EMPLOYMENT AGREEMENT

     This Employment Agreement, made as of January 1, 2003, 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.

1

 

     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

2

 

Board of Directors of Employer.

     3.     Term.

     (a)  This Employment Agreement shall commence on the date hereof and shall
continue until December 31, 2005, 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:

3

 

     (a)  for the period beginning on the date hereof and
ending on December 31, 2003, at the annual rate of Two Hundred
Eighty One Thousand Seven Hundred Thirty One and 30/100 ($281,731.30) Dollars
times the Cost of Living Adjustment Factor (as hereinafter defined);

     (b)  for the calendar year beginning on January 1, 2004 and ending on
December 31, 2004, in an amount equal to the salary paid for the calendar year
beginning January 1, 2003 and ending on December 31, 2003 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, 2005 and ending on
December 31, 2005, in an amount equal to the salary paid for the calendar year
beginning on January 1, 2004 and ending on December 31, 2004 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

4

 

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 (1982-84=100), published by
the U.S. Department of Labor Statistics (the “Index”) for the last calendar
month preceding the commencement 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

5

 

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

6

 

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
$15,250 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.

7

 

     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 2003, 2004 and 2005 (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, divided by the number of shares outstanding at the end
of such Bonus Year.

     (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.

8

 

     (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

9

 

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, 2003, 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

10

 

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 $47,000 during the term of this contract; provided, however, that
Executive may select a car costing more than $47,000 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,

11

 

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, 2000 (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

12

 

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 pursuant to Section 3(a) of
this Agreement.

13

 

     (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, 2005; provided however that
subsequent to that day which is six (6) months after the date of determination
of Executive’s Permanent

14

 

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

15

 

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

16

 

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) 
Commencing at the beginning of the 49th month following the
commencement of the Retirement Period, the Employer agrees to pay to Executive
each year- during the Retirement Period, in equal monthly installments, the sum
of $29,000; provided, however, that the $29,000 annual payment shall be
increased

17

 

annually after the first year of payment to an amount equal 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.

18

 

     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

19

 

	 
	(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 successors 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

20

 

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

21

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00049-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00049-of-00352.parquet"}]]