Exhibit 10.16

PRESIDENTIAL REALTY CORPORATION

2005 RESTRICTED STOCK PLAN

                1.             Purposes of the Plan. The purposes of this Plan are to attract and retain the best available personnel, to provide additional
incentives to Employees, Directors and Consultants and to promote the success of the Company’s
business.

                2.             Definitions. The following definitions shall apply as used herein and in the individual Award Agreements except
as defined otherwise in an individual Award Agreement. In the event a term is separately defined
in an individual Award Agreement, such definition shall supercede the definition contained in this
Section 2.

                                (a)           “Administrator” means the Board or any of the Committees appointed to administer the Plan.

                                (b)           “Affiliate” and “Associate” shall have the respective meanings ascribed to such terms in Rule 12b-2 promulgated under
the Exchange Act.

                                (c)           “Applicable Laws” means the legal requirements relating to the Plan and the Awards under applicable provisions
of federal securities laws, state corporate and securities laws, the Code, the rules of any applicable
stock exchange or national market system, and the rules of any non-U.S. jurisdiction applicable to
Awards granted to residents therein. 

                                (d)           “Award” means the grant of Restricted Stock under the Plan.

                                (e)           “Award Agreement” means the written agreement evidencing the grant of an Award executed by the Company and the
Grantee, including any amendments thereto.

                                (f)            “Board” means the Board of Directors of the Company.

                                (g)           “Change in Control” means a change in ownership or control of the Company effected through either of the following
transactions:

                                                (i)            the direct or indirect acquisition
by any person or related group of persons (other than an acquisition from or by the Company or by
a Company-sponsored employee benefit plan or by a person that directly or indirectly controls, is
controlled by, or is under common control with, the Company) of beneficial ownership (within the
meaning of Rule 13d-3 of the Exchange Act) of securities possessing more than fifty percent
(50%) of the total combined voting power of the Company’s outstanding securities pursuant to
a tender or exchange offer made directly to the Company’s stockholders which a majority of the
Continuing Directors who are not Affiliates or Associates of the offeror do not recommend such stockholders
accept, or



	

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                                                (ii)           a change in the composition of
the Board over a period of twelve (12) months or less such that a majority of the Board members (rounded
up to the next whole number) ceases, by reason of one or more contested elections for Board membership,
to be comprised of individuals who are Continuing Directors.

                                (h)           “Code” means the Internal Revenue Code of 1986, as amended.

                                (i)            “Committee” means any committee composed of members of the Board appointed by the Board to administer the
Plan.

                                (j)            “Common Stock” means the Class B Common Stock of the Company.

                                (k)           “Company” means Presidential Realty Corporation, a Delaware corporation, or any successor entity that
adopts the Plan in connection with a Corporate Transaction.

                                (l)            “Consultant” means any person (other than an Employee or a Director, solely with respect to rendering services
in such person’s capacity as a Director) who is engaged by the Company or any Related Entity
to render consulting or advisory services to the Company or such Related Entity. 

                                (m)          “Continuing Directors” means members of the Board who either (i) have been Board members continuously for a period
of at least twelve (12) months or (ii) have been Board members for less than twelve (12) months
and were elected or nominated for election as Board members by at least a majority of the Board members
described in the immediately preceding clause (i) who were still in office at the time such
election or nomination was approved by the Board.

                                (n)           “Continuous Service” means that the provision of services to the Company or a Related Entity in any capacity of Employee,
Director or Consultant is not interrupted or terminated. In jurisdictions requiring notice in advance
of an effective termination as an Employee, Director or Consultant, Continuous Service shall be deemed
terminated upon the actual cessation of providing services to the Company or a Related Entity notwithstanding
any required notice period that must be fulfilled before a termination as an Employee, Director or
Consultant can be effective under Applicable Laws. A Grantee’s Continuous Service shall be deemed
to have terminated either upon an actual termination of Continuous Service or upon the entity for
which the Grantee provides services ceasing to be a Related Entity. Continuous Service shall not
be considered interrupted in the case of (i) any approved leave of absence, (ii) transfers
among the Company, any Related Entity, or any successor, in any capacity of Employee, Director or
Consultant, or (iii) any change in status as long as the individual remains in the service of
the Company or a Related Entity in any capacity of Employee, Director or Consultant (except as otherwise
provided in the Award Agreement). An approved leave of absence shall include sick leave, military
leave, or any other authorized personal leave. 

                                (o)           “Corporate Transaction” means any of the following transactions, provided, however, that the Administrator shall determine
under parts (iv) and (v) whether multiple transactions are related, and its determination shall be
final, binding and conclusive: 



	

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                                                (i)            a merger or consolidation
in which the Company is not the surviving entity, except for a transaction the principal purpose
of which is to change the state in which the Company is incorporated;

                                                (ii)           the sale, transfer or other disposition
of all or substantially all of the assets of the Company;

                                                (iii)          the complete liquidation or dissolution
of the Company; 

                                                (iv)          any reverse merger or series of related
transactions culminating in a reverse merger (including, but not limited to, a tender offer followed
by a reverse merger) in which the Company is the surviving entity but (A) the shares of Common
Stock outstanding immediately prior to such merger are converted or exchanged by virtue of the merger
into other property, whether in the form of securities, cash or otherwise, or (B) in which securities
possessing more than fifty percent (50%) of the total combined voting power of the Company’s
outstanding securities are transferred to a person or persons different from those who held such
securities immediately prior to such merger or the initial transaction culminating in such merger,
but excluding any such transaction or series of related transactions that the Administrator determines
shall not be a Corporate Transaction; or

                                                (v)           acquisition in a single or series
of related transactions by any person or related group of persons (other than the Company or by a
Company-sponsored employee benefit plan) of beneficial ownership (within the meaning of Rule 13d-3
of the Exchange Act) of securities possessing more than fifty percent (50%) of the total combined
voting power of the Company’s outstanding securities but excluding any such transaction or series
of related transactions that the Administrator determines shall not be a Corporate Transaction.

                                (p)           “Covered Employee” means an Employee who is a “covered employee” under Section 162(m)(3) of the
Code.

                                (q)           “Director” means a member of the Board.

                                (r)            “Disability” means as defined under the long-term disability policy of the Company or the Related Entity
to which the Grantee provides services regardless of whether the Grantee is covered by such policy.
If the Company or the Related Entity to which the Grantee provides service does not have a long-term
disability plan in place, “Disability” means that a Grantee is unable to carry out the
responsibilities and functions of the position held by the Grantee by reason of any medically determinable
physical or mental impairment for a period of not less than ninety (90) consecutive days. A Grantee
will not be considered to have incurred a Disability unless he or she furnishes proof of such impairment
sufficient to satisfy the Administrator in its discretion.

                                (s)           “Employee” means any person, including an Officer or Director, who is in the employ of the Company or any
Related Entity, subject to the control and direction of the Company or any Related Entity as to both
the work to be performed and the manner and method of performance. The payment of a director’s
fee by the Company or a Related Entity shall not be sufficient to constitute “employment”
by the Company.



	

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                                (t)            “Exchange Act” means the Securities Exchange Act of 1934, as amended.

                                (u)           “Grantee” means an Employee, Director or Consultant who receives an Award under the Plan.

                                (v)           “Officer” means a person who is an officer of the Company or a Related Entity within the meaning of Section 16
of the Exchange Act and the rules and regulations promulgated thereunder.

                                (w)          “Parent” means a “parent corporation”, whether now or hereafter existing, as defined in Section 424(e)
of the Code.

                                (x)            “Performance-Based Compensation” means compensation qualifying as “performance-based compensation” under Section 162(m)
of the Code.

                                (y)           “Plan” means this 2005 Restricted Stock Plan.

                                (z)            “Related Entity” means any Parent or Subsidiary of the Company and any business, corporation, partnership, limited
liability company or other entity in which the Company or a Parent or a Subsidiary of the Company
holds a substantial ownership interest, directly or indirectly.

                                (aa)         “Restricted Stock” means Shares issued under the Plan to the Grantee for such consideration, if any, and subject
to such restrictions on transfer, rights of first refusal, repurchase provisions, forfeiture provisions,
and other terms and conditions as established by the Administrator. 

                                (bb)         “Rule 16b-3” means Rule 16b-3 promulgated under the Exchange Act or any successor thereto.

                                (cc)         “Share” means a share of the Common Stock.

                                (dd)         “Subsidiary” means a “subsidiary corporation”, whether now or hereafter existing, as defined in
Section 424(f) of the Code.

                3.             Stock Subject to the Plan.

                                (a)           Subject to the provisions of Section 9,
below, the maximum aggregate number of Shares which may be issued pursuant to all Awards is 115,000
Shares. The Shares to be issued pursuant to Awards may be authorized, but unissued, or reacquired
Common Stock. 

                                (b)           Any Shares covered by an Award
(or portion of an Award) which is forfeited, canceled or expires (whether voluntarily or involuntarily)
shall be deemed not to have been issued for purposes of determining the maximum aggregate number
of Shares which may be issued under the Plan. Shares that actually have been issued under the Plan
pursuant to an Award shall not be returned to the Plan and shall not become available for future
issuance under the Plan, except that if unvested Shares are forfeited such Shares shall become available
for future grant under the Plan. To the extent not prohibited by the listing requirements of The 



	

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Nasdaq National Market (or other established stock exchange or national market system on which the
Common Stock is traded) and Applicable Law, any Shares covered by an Award which are surrendered
in satisfaction of tax withholding obligations incident to the vesting of an Award shall be deemed
not to have been issued for purposes of determining the maximum number of Shares which may be issued
pursuant to all Awards under the Plan, unless otherwise determined by the Administrator.

                4.             Administration of the Plan.

                                (a)           Plan Administrator. 

                                                (i)            Administration with Respect to Directors and Officers. With respect to grants of Awards to Directors or Employees who are also Officers or Directors of
the Company, the Plan shall be administered by (A) the Board or (B) a Committee designated
by the Board, which Committee shall be constituted in such a manner as to satisfy the Applicable
Laws and to permit such grants and related transactions under the Plan to be exempt from Section 16(b)
of the Exchange Act in accordance with Rule 16b-3. Once appointed, such Committee shall continue
to serve in its designated capacity until otherwise directed by the Board. 

                                                (ii)           Administration With Respect to Consultants and Other Employees. With respect to grants of Awards to Employees or Consultants who are neither Directors nor Officers
of the Company, the Plan shall be administered by (A) the Board or (B) a Committee designated by
the Board, which Committee shall be constituted in such a manner as to satisfy the Applicable Laws.
Once appointed, such Committee shall continue to serve in its designated capacity until otherwise
directed by the Board. The Board may authorize one or more Officers to grant such Awards and may
limit such authority as the Board determines from time to time.

                                                (iii)          Administration With Respect to Covered Employees. Notwithstanding the foregoing, grants of Awards to any Covered Employee intended to qualify as Performance-Based
Compensation shall be made only by a Committee (or subcommittee of a Committee) which is comprised
solely of two or more Directors eligible to serve on a committee making Awards qualifying as Performance-Based
Compensation. In the case of such Awards granted to Covered Employees, references to the “Administrator”
or to a “Committee” shall be deemed to be references to such Committee or subcommittee.

                                                (iv)          Administration Errors. In the event an Award is granted in a manner inconsistent with the provisions of this subsection (a),
such Award shall be presumptively valid as of its grant date to the extent permitted by the Applicable
Laws. 

                                (b)           Powers of the Administrator. Subject to Applicable Laws and the provisions of the Plan (including any other powers given to the
Administrator hereunder), and except as otherwise provided by the Board, the Administrator shall
have the authority, in its discretion:

                                                (i)            to select the Employees,
Directors and Consultants to whom Awards may be granted from time to time hereunder;



	

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                                                (ii)           to determine whether and to what
extent Awards are granted hereunder;

                                                (iii)          to determine the number of Shares
to be covered by each Award granted hereunder;

                                                (iv)          to approve forms of Award Agreements
for use under the Plan;

                                                (v)           to determine the terms and conditions
of any Award granted hereunder;

                                                (vi)          to amend the terms of any outstanding
Award granted under the Plan, provided that any amendment that would adversely affect the Grantee’s
rights under an outstanding Award shall not be made without the Grantee’s written consent;

                                                (vii)         to construe and interpret the terms of the
Plan and Awards, including without limitation, any notice of award or Award Agreement, granted pursuant
to the Plan;

                                                (viii)        to grant Awards to Employees, Directors and Consultants
employed outside the United States on such terms and conditions different from those specified in
the Plan as may, in the judgment of the Administrator, be necessary or desirable to further the purpose
of the Plan; and

                                                (ix)           to take such other action, not
inconsistent with the terms of the Plan, as the Administrator deems appropriate.

                                (c)           Indemnification. In addition to such other rights of indemnification as they may have as members of the Board or as
Officers or Employees of the Company or a Related Entity, members of the Board and any Officers or
Employees of the Company or a Related Entity to whom authority to act for the Board, the Administrator
or the Company is delegated shall be defended and indemnified by the Company to the extent permitted
by law against all reasonable expenses, including attorneys’ fees, actually incurred in connection
with the defense of any claim, investigation, action, suit or proceeding, or in connection with any
appeal therein, to which they or any of them may be a party by reason of any action taken or failure
to act under or in connection with the Plan, or any Award granted hereunder, and against all amounts
paid by them in settlement thereof (provided such settlement is approved by the Company) or paid
by them in satisfaction of a judgment in any such claim, investigation, action, suit or proceeding,
except in relation to matters as to which it shall be adjudged in such claim, investigation, action,
suit or proceeding that such person is liable for gross negligence, bad faith or intentional misconduct;
provided, however, that within thirty (30) days after the institution of such claim, investigation,
action, suit or proceeding, such person shall offer to the Company, in writing, the opportunity at
the Company’s expense to defend the same.

                5.             Eligibility. Awards may be granted to Employees, Directors and Consultants. An Employee, Director or Consultant
who has been granted an Award may, if otherwise eligible, be granted additional Awards. Awards may
be granted to such Employees, Directors or Consultants who are residing in non-U.S. jurisdictions
as the Administrator may determine from time to time.
 



	

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                6.             Terms and Conditions of Awards.

                                (a)           Conditions of Award. Subject to the terms of the Plan, the Administrator shall determine the provisions, terms, and conditions
of each Award including, but not limited to, the Award vesting schedule (if any), repurchase provisions,
rights of first refusal, forfeiture provisions, payment contingencies, and satisfaction of any performance
criteria. The performance criteria established by the Administrator may be based on any one of, or
combination of, the following: (i) increase in share price, (ii) earnings per share, (iii) total
stockholder return, (iv) operating margin, (v) gross margin, (vi) return on equity, (vii) return
on assets, (viii) return on investment, (ix) operating income, (x) net operating income, (xi) pre-tax
income, (xii) cash flow, (xiii) revenue, (xiv) expenses, (xv) earnings before interest, taxes and
depreciation and (xvi) economic value added (xvii) market share. The performance criteria may be
applicable to the Company, Related Entities and/or any individual business units of the Company or
any Related Entity. Partial achievement of the specified criteria may result in a payment or vesting
corresponding to the degree of achievement as specified in the Award Agreement. 

                                (b)           Separate Programs. The Administrator may establish one or more separate programs under the Plan for the purpose of issuing
particular forms of Awards to one or more classes of Grantees on such terms and conditions as determined
by the Administrator from time to time. 

                                (c)           Individual Limitations for Restricted Stock. For awards of Restricted Stock that are intended to be Performance-Based Compensation, the maximum
number of Shares of Restricted Stock which may be granted to any Grantee in any calendar year shall
be 35,000 Shares. The foregoing limitation shall be adjusted proportionately in connection with any
change in the Company’s capitalization pursuant to Section 9, below. 

                                (d)           Transferability of Awards. Awards shall be transferable (i) by will and by the laws of descent and distribution and (ii) during
the lifetime of the Grantee, to the extent and in the manner authorized by the Administrator. 

                                (e)           Time of Granting Awards. The date of grant of an Award shall for all purposes be the date on which the Administrator makes
the determination to grant such Award, or such other later date as is determined by the Administrator.




	

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                7.             Taxes. No Shares shall be delivered under the Plan to any Grantee or other person until such Grantee or
other person has made arrangements acceptable to the Administrator for the satisfaction of any United
States federal, state, local or non-U.S. income and employment tax withholding obligations, including,
without limitation, obligations incident to the receipt of Shares. Upon vesting of an Award, the
Company shall withhold or collect from Grantee an amount sufficient to satisfy such tax obligations,
including, but not limited too, by surrender of the whole number of Shares covered by the Award sufficient
to satisfy the minimum applicable tax withholding obligations incident to the vesting of an Award.

                8.             Conditions Upon Issuance of Shares.

                                (a)           Shares shall not be issued pursuant
to an Award unless the issuance and delivery of such Shares pursuant thereto shall comply with all
Applicable Laws, and shall be further subject to the approval of counsel for the Company with respect
to such compliance.

                                (b)           As a condition to the issuance
of an Award, the Company may require the person receiving such Award to represent and warrant at
the time of any such issuance that the Shares are being purchased only for investment and without
any present intention to sell or distribute such Shares if, in the opinion of counsel for the Company,
such a representation is required by any Applicable Laws.

                9.             Adjustments Upon Changes in Capitalization. Subject to any required action by the stockholders of the Company, the number of Shares covered by
each outstanding Award, and the number of Shares which have been authorized for issuance under the
Plan but as to which no Awards have yet been granted or which have been returned to the Plan, the
maximum number of Shares with respect to which Awards may be granted to any Grantee in any calendar
year, as well as any other terms that the Administrator determines require adjustment shall be proportionately
adjusted for (i) any increase or decrease in the number of issued Shares resulting from a stock
split, reverse stock split, stock dividend, combination or reclassification of the Shares, or similar
transaction affecting the Shares, (ii) any other increase or decrease in the number of issued
Shares effected without receipt of consideration by the Company, or (iii) as the Administrator
may determine in its discretion, any other transaction with respect to Common Stock including a corporate
merger, consolidation, acquisition of property or stock, separation (including a spin-off or other
distribution of stock or property), reorganization, liquidation (whether partial or complete) or
any similar transaction; provided, however that conversion of any convertible securities of the Company
shall not be deemed to have been “effected without receipt of consideration.” Except
as the Administrator determines, no issuance by the Company of shares of any class, or securities
convertible into shares of any class, shall affect, and no adjustment by reason hereof shall be made
with respect to, the number of Shares subject to an Award. 

                10.           Corporate Transactions and Changes in Control. Except as provided otherwise in an individual Award Agreement, in the event of a Corporate Transaction
or a Change in Control, each Award which is at the time outstanding under the Plan automatically
shall become fully vested and be released from any repurchase or forfeiture rights, immediately prior
to the specified effective date of such Corporate Transaction or Change in Control, for all of the
Shares 



	

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at the time represented by such Award, provided that the Grantee’s Continuous Service has not
terminated prior to such date. 

                11.           Effective Date and Term of Plan. The Plan shall become effective upon its approval by the stockholders of the Company. It shall continue
in effect for a term of ten (10) years unless sooner terminated. 

                12.           Amendment, Suspension or Termination of the Plan. 

                                (a)           The Board may at any time amend,
suspend or terminate the Plan; provided, however, that no such amendment shall be made without the
approval of the Company’s stockholders to the extent such approval is required by Applicable
Laws. 

                                (b)           No Award may be granted during
any suspension of the Plan or after termination of the Plan.

                                (c)           No suspension or termination of
the Plan (including termination of the Plan under Section 10, above) shall adversely affect any
rights under Awards already granted to a Grantee.

                13.           Reservation of Shares.

                                (a)           The Company, during the term of
the Plan, will at all times reserve and keep available such number of Shares as shall be sufficient
to satisfy the requirements of the Plan.

                                (b)           The inability of the Company to
obtain authority from any regulatory body having jurisdiction, which authority is deemed by the Company’s
counsel to be necessary to the lawful issuance and sale of any Shares hereunder, shall relieve the
Company of any liability in respect of the failure to issue or sell such Shares as to which such
requisite authority shall not have been obtained.

                14.           No Effect on Terms of Employment/Consulting Relationship. The Plan shall not confer upon any Grantee any right with respect to the Grantee’s Continuous
Service, nor shall it interfere in any way with his or her right or the right of the Company or any
Related Entity to terminate the Grantee’s Continuous Service at any time, with or without cause,
and with or without notice. 

                15.           No Effect on Retirement and Other Benefit Plans. Except as specifically provided in a retirement or other benefit plan of the Company or a Related
Entity, Awards shall not be deemed compensation for purposes of computing benefits or contributions
under any retirement plan of the Company or a Related Entity, and shall not affect any benefits under
any other benefit plan of any kind or any benefit plan subsequently instituted under which the availability
or amount of benefits is related to level of compensation. The Plan is not a “Retirement Plan”
or “Welfare Plan” under the Employee Retirement Income Security Act of 1974, as amended.

                16.           Construction. Captions and titles contained herein are for convenience only and shall not affect the meaning or
interpretation of any provision of the Plan. Except when 



	

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otherwise indicated by the context, the singular shall include the plural and the plural shall include
the singular. Use of the term “or” is not intended to be exclusive, unless the context
clearly requires otherwise.



	

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