Document:

Term Sheet between M&T Bank and Orange Hospitality, Inc.

 Exhibit 10.5 
  
 

 
  
 January 19, 2005 
  
 Jeffery Davidson 
 Orange Hospitality 
 11 Penn Plaza – 5th Floor 
 New York, NY 10001 
  
 RE: $35 Million Revolving Line of Credit to Orange Hospitality

  
 Dear Brad: 
  
 Thank you for the opportunity to present the following financing proposal. This term sheet is for discussion purposes only. It is not
intended to be, nor should it be construed as, a commitment of M&T Bank to lend, but merely serves as an initial description of the possible terms of the proposed financing, which terms are subject to further review, analysis, consideration, and
final approval by the Bank. Additional terms and conditions may be required prior to submitting this request for approval. 
  

			
	Borrower:	  	Orange Hospitality, Inc.
		
	Facility:	  	$35,000,000 Revolving Credit Facility.
		
	Purpose:	  	To initially facilitate the purchase of flagged hotel properties including those located in Somerset, NJ, Mt. Olive, NJ, Wallingford, CT, Farmington, CT and Rocky Hill, CT. Thereafter, the
facility may be utilized to purchase flagged hotel properties in the continental United States subject to the Bank’s sole discretion.
		
	Term:	  	Three (3) years.
		
	Rate:	  	One Month LIBOR plus 225 basis points.
		
	Fee:	  	0.50% ($91,170 on the $18,234,000 in new funds) for origination and 0.25% commitment fee based on the average quarterly unused amount of the credit facility.
		
	Repayment:	  	Interest only.
		
	Collateral:	  	Secured by first mortgages on the five properties being purchased with the initial funding plus an assignment of rents, leases, management agreements, franchise agreements,
etc...
		
	Guarantors:	  	Orange Hospitality, Inc.

			
		
	Option:	  	Upon the payment of a 0.25% fee and no event of default, the borrower shall have the two, one-year extension options at the same rate and terms.
		
	Prepayment	  	 
	Penalty:	  	LIBOR breakage.
		
	Covenants:	  	1). All properties purchased with the line of credit must report no less than 1.30x pro-forma debt service coverage ratio on the debt utilized to purchase the property. In the event the
property does not achieve the above debt service coverage requirements, the borrower must contribute sufficient equity to bring the debt service coverage in compliance.
		
	 	  	2). Orange Hospitality, Inc. must maintain debt to tangible book net worth of no greater than 1.5:1.
		
	Conditions:	  	1) Subject to satisfactory appraisal, environmental and engineering reports on properties purchased with the facility. Subject to a maximum loan to value of 50% on an
“as-stabilized” appraised value.
		
	 	  	2). The borrower must raise at least $12 million in equity prior to usage of the facility.
		
	 	  	3) The Borrower is responsible for all of the Bank’s closing costs, including, but not limited to, appraisal, attorney, tax certification, and flood search fees. An estimate of legal
fees shall be provided prior to loan approval.
		
	 	  	4). Brad Honigfeld or Jeffrey Davidson must remain active in the management of Orange Hospitality, Inc.
		
	 	  	5). The Borrower and Guarantor agree to provide M&T Bank with audited financial statements, tax returns, and supporting documentation on an annual basis, quarterly financial statements
within 45-days of quarter end and an annual budget for the following year by December 1 of each year. The borrower shall also provide quarterly income and expense statements, including ADR and occupancy and market comparison reports on the five
properties serving as collateral for the facility.
		
	 	  	6) All aspects of the loan are subject to satisfactory legal review by M&T Bank’s counsel.
		
	 	  	7) No further encumbrances will be permitted on the five properties financed with the revolving credit facility.
		
	 	  	8) Orange Hospitality, Inc will maintain their primary cash management relationship with M&T Bank so long as the Bank provides the majority of Orange’s loan
facilities.

  
  

			
	 	  	In order to proceed with analyzing this request and seeking approval, we request that you sign and return this letter along with a $15,000 good faith deposit, which will be retained by the
Bank as partial payment of the origination fee upon approval of the request by the Bank. In the event that (a) the request as outlined in this letter is approved by the Bank, or (b) you insist upon material modification to the request and proposed
terms, or c) you withdraw the application, then, in any of the above circumstances, the entire amount of the good faith deposit plus any interest earned thereon shall be deemed to be a loan origination fee earned by the Bank in consideration for
processing the request. In the event that the loan is not approved by the Bank, the good faith deposit, less out-of-pocket costs, shall be refunded to the borrower. If we have not received a fully signed copy of this letter and the good faith
deposit on or before January 28, 2005 this proposal will expire. Please feel free to call me at (212) 350-2432 should you have any questions or would like to discuss any of the terms outlined above.
		
	 	  	Thank you and I look forward to hearing from you soon.

  

							
	Very truly yours,	  	 
	Manufacturers and Traders	  	 
	Trust Company	  	Agreed to and Accepted
				
	By:	  	 /s/ Jason W. Lipiec

	  	By:	  	 /s/ Jeffrey Davidson

	 	  	Jason W. Lipiec	  	Date:	  	January 21, 2005
	 	  	Vice President	  	Title:	  	Chief Executive OfficerDescription of Directors' Compensation

 Exhibit 10.1 
  
 Description of Directors’ Compensation 
  
 The following description of the compensation arrangements of the members of the Board of Directors of Consolidated Edison, Inc. was
included in the proxy statement for the Annual Meeting of Shareholders held on May 17, 2004: 
  
 Those members of the Board who are not employees of the Company or its subsidiaries are paid an annual retainer of $40,000, a fee of
$1,500 for each meeting of the Board or of the Boards of its subsidiaries attended and a fee of $1,500 for each meeting of a Committee of the Board or of the Boards of its subsidiaries attended. Con Edison will reimburse Board members who are not
currently officers of the Company for expenses incurred in attending Board and Committee meetings. No person who serves on both the Con Edison Board and on the Board of its subsidiary, Con Edison of New York, and corresponding Committees, is paid
additional compensation for concurrent service. 
  
 The Chairs of the Corporate Governance and Nominating, Environment, Health and Safety, Finance, Management Development and Compensation and Planning Committees each receive an annual retainer fee of $5,000. The Audit Committee Chair
receives an annual retainer of $10,000, and each Audit Committee member receives an annual retainer of $5,000. The Acting Chair of any Board Committee is paid an additional meeting fee of $200 for any Committee meeting at which he or she presides.
Members of the Board participate in Con Edison’s Long Term Incentive Plan and may participate in the Company’s Stock Purchase Plan described below. 
  

Members of the Board who are officers of the Company or its subsidiaries receive no retainer or meeting fees for their service on the
Board. 
  
 Pursuant to Con Edison’s
Long-Term Incentive Plan, which was approved at the last Annual Meeting, each non-management Director is allocated an annual award of 1,300 deferred stock units on the first business day following each Annual Meeting. If a non-management Director is
first appointed to the Board after an Annual Meeting, his or her first annual award will be prorated. In mid-2002, the Company terminated its retirement plan for Directors, converted each Director’s accrued benefits under the retirement plans
into deferred stock units and allocated each Director 400 deferred stock units. The 2002 deferred stock units and all annual awards of stock units will be deferred until the Director’s termination of service from the Board of Directors when, at
the Director’s option, they may be paid or further deferred for payment over a maximum of ten years. Each Director may defer all or a portion of his or her retainers and meeting fees into additional deferred stock units, which would be deferred
until the Director’s termination of service or, at the option of the Director and if earlier, for five years or more after the year in which the units were deferred. Dividend equivalents are payable on deferred stock units in the amount and at
the time that dividends are paid on Con Edison’s common stock and, at the Director’s option, are paid in cash or invested in additional deferred stock units. All payments on account of deferred stock units will be made in shares of Con
Edison common stock except that fractional stock units will be paid in cash.Form of Restricted Stock Unit Award

 Exhibit 10.2 
  
 CONSOLIDATED EDISON, INC. 
 20     Restricted Stock Unit Agreement 
  
 This Agreement (the “Agreement”) is entered into as of
                , 20     between Consolidated Edison, Inc. (the “Company”) and
                     (the “Employee”). 
  
 This Agreement allocates Restricted Stock Units (the “Units”) to the Employee under the Consolidated Edison, Inc. Long Term Incentive Plan (the
“Plan”) as follows: 
  

							
	 	 	 Number

	 	 Performance Period

	 	 Payout Date

	 20     Grant:
	 	         Units	 	                     –
                    	 	_________

  
 This Award is subject to the terms and
conditions set forth in this Agreement and the Plan. The terms of this Award are subject in all respects to the provisions of the Plan, which are incorporated herein by reference. All capitalized terms not otherwise defined herein shall have the
same meanings as set forth in the Plan. 
  
 Each Unit shall
represent the right, upon vesting, to receive one Share of Stock, the cash value of one Share of Stock, or a combination thereof. The cash value of a Unit shall equal the closing price of a Share of Stock in the Consolidated Reporting System as
reported in the Wall Street Journal or in a similarly readily available public source for the trading day immediately prior to the applicable transaction date. If no trading of Shares of Stock occurred on such date, the closing price of a Share of
Stock in such System as reported for the preceding day on which sales of Shares of Stock occurred shall be used. 
  
 Performance Factors: Fifty percent of the Units for the grant will be earned based on the Company’s Total Shareholder Return (TSR) compared to the S
& P Electric Utilities Index over the Performance Period. The remaining fifty percent of the Units for the grant will be earned based on the corporate average of the Executive Incentive Plan Award* over the Performance Period. The actual number
of Units earned can range from 0 to 150% of the above allocation for the Grant. The final determination of the number of Units to be awarded will be made by the Management Development and Compensation Committee (“Committee”) of the Board.
The Units vest after the Performance Period when they are determined and awarded by the Committee. 

	*	Or, for certain officers, Orange and Rockland Utilities, Inc.’s Annual Team Incentive Plan or goals relating to the Company’s unregulated subsidiaries

 1. Consequences of Separation from Service and Death. In the event of the Employee’s
Separation from Service with the Company or its subsidiaries or death prior to the vesting date, the Employee’s rights under this Agreement will be as set forth below: 
  

	 	a.	If the Employee Separates from Service other than by reason of retirement, disability or death, during a Performance Period his/her award is completely forfeited.

  

	 	b.	If the Employee dies during a Performance Period, his/her award is prorated based on the actual period of service during the Performance Period and is awarded as soon as
administratively possible after his/her death. The determination of the performance factors will be made by the Vice President of Human Resources of Consolidated Edison Company of New York, Inc. using the indicators as of the end of the month for
the Total Shareholder Return and using the prior year(s) corporate average(s) for Executive Incentive Plan Awards. 

  

	 	c.	If the Employee Separates from Service by reason of retirement or disability, then his/her award is prorated based on the actual period of service during the Performance Period and
is awarded, as soon as administratively possible, at the end of the Performance Period based on the performance. 

  
 2. Form of Payout. The Units will be paid in a lump sum, either in Shares of Stock, in cash, or a combination. Cash can be deferred into the
Deferred Income Plan (“DIP”). 
  
 3. Deferrals.
Employees will have a one-time election to defer the receipt of the cash value of the Award into the DIP or to defer the receipt of the Shares, or a combination of cash or Shares. Deferral election forms must be submitted by December 31 of the year
before the Grant. 
  
 4. Dividend or Dividend Equivalent
Payments. 
  

	 	a.	No Dividend or Dividend Equivalent payments will be made until the Units vest. 

  

	 	b.	If the Employee receives Shares at the time of vesting, he or she will be entitled to receive dividends on the Shares when the dividends are paid. 

  

	 	c.	However, if the Employee elects prior to the Grant to defer the receipt of the Shares, he or she will be entitled to receive the Dividend Equivalent payments on the Shares once the
Shares vest. These Dividend Equivalent payments can be received as additional Stock, cash, or as cash deferred into the DIP. 

  

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	 	d.	If at the time of vesting, the Employee receives a cash payment or defers the cash into the DIP, he or she will not receive Dividend Equivalent payments. 

 

	 	e.	Dividend Equivalent payments are made on the Dividend Payment Date, which is the date the Company pays any dividend on outstanding Shares based on the number of Units owned as of
the record date for such dividend. 

  
 5.
Deferral Election for Dividend Equivalent Payments. A deferral of Dividend Equivalent payments must be made at the same time as the deferral of the receipt of the Restricted Stock Unit Award. At that time the Employee can elect to receive the
Dividend Equivalent payments as additional Stock to be distributed or deferred to a future date, or as cash to be distributed or deferred into the DIP. 
  
 6. No Right to Continued Employment. Nothing contained in this Agreement shall confer on the Employee any right to continue in the employ of the
Company or its subsidiaries or shall limit the Company’s rights to terminate the Employees at any time, provided, however, that nothing in this Agreement shall affect any other contractual rights existing between the Employee and the Company or
its subsidiaries. 
  
 7. Leave of Absence. If the Employee
is officially granted a leave of absence for illness, military or governmental service or other reasons by the Company or its subsidiaries, for purposes of this Award, such leave of absence shall not be treated as a Separation from Service.

  
 8. Payment. Subject to any deferral election, once
Units vest, the Company shall pay, as soon as administratively possible, the Employee (a) the cash value of the Shares of Stock represented by the Units, (b) the Stock, or (c) a combination of cash and Stock. Prior to vesting the Units represent an
unfunded and unsecured promise to pay the Employee the cash value of Shares of Stock or Stock upon vesting thereof. 
  
 9. Transferability. Except as may otherwise be authorized by the Committee in accordance with the Plan, this Award shall not be transferable other
than by will or the laws of descent and distribution. Any attempted transfers shall be null and void and of no effect. 
  
 10. Tax Withholding. The Company may make such provision and take such steps as it deems necessary or appropriate for the withholding of any taxes
that the Company is required by law or regulation of any governmental authority, whether federal, state or local, domestic or foreign, to withhold in connection with this Award. 
  
  

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 11. Miscellaneous. The Agreement: (a) shall be binding upon and inure to the benefit of any
successor of the Company; (b) shall be governed by the laws of the State of New York, and any applicable laws of the United States of America; (c) may not be amended except in writing; and (d) shall in no way affect the Employee’s participation
or benefits under any other plan or benefit program maintained or provided by the Company. In the event of a conflict between this Agreement and the Plan, the terms and conditions of the Plan shall govern. 
  
 12. Acknowledgement. The Employee acknowledges that he or she may
request a copy of the Plan from the Company’s Secretary at any time. 
  
 This Agreement has been executed by the undersigned: 
  

											
	CONSOLIDATED EDISON, INC.	 	 	 	 
						
	By:	 	  

	 	 	 	By:	 	  

	 	 
	Name:	 	 	 	 	 	 	 	 	 	 
	Title:	 	 	 	 	 	 	 	 	 	 

  

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