Document:

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                                                                   EXHIBIT 10.11

                          REGISTRATION RIGHTS AGREEMENT

         THIS REGISTRATION RIGHTS AGREEMENT, dated as of November 25, 2002 (this
"Agreement"), by and among LODGIAN, INC., a Delaware corporation (the
"Company"), and the other signatories hereto (the "Shareholders").

         WHEREAS, pursuant to the First Amended Joint Plan of Reorganization
(the "Plan") of the Company and certain of its subsidiaries, as confirmed by the
United States Bankruptcy Court for the Southern District of New York on November
5, 2002, the Shareholders shall receive shares of the Company's Common Stock,
par value $0.01 per share (the "Original Issue Common Stock"), shares of the
Company's Series A Preferred Stock, par value $0.01 per share (the "Original
Issue Preferred Stock"), Class A Warrants and/or Class B Warrants (the "Original
Issue Warrants") in connection with the Plan.

         WHEREAS, in connection with the foregoing, the Company has agreed,
subject to the terms, conditions and limitations set forth in this Agreement, to
provide the Shareholders and their respective successors, assigns and
transferees as permitted herein with certain registration rights in respect of
the Original Issue Common Stock, the Original Issue Preferred Stock, the
Original Issue Warrants and the Warrant Shares (as hereinafter defined).

         NOW, THEREFORE, in consideration of the mutual covenants and promises
contained herein, the parties hereto agree as follows:

                                    ARTICLE I

                                   DEFINITIONS

         1.1. Definitions. Capitalized words and phrases used and not otherwise
defined in this Agreement shall have the following meanings:

         Class A Warrants: means the Class A Warrants of the Company issued
pursuant to the Plan, each of which is exercisable for one share of Common Stock
and, in the case of a reclassification, recapitalization or other similar change
in such warrants or in the case of a consolidation or merger of the Company with
or into another Person, such consideration to which a holder of a warrant would
have been entitled upon the occurrence of such event.

         Class B Warrants: means the Class B Warrants of the Company issued
pursuant to the Plan, each of which is exercisable for one share of Common Stock
and, in the case of a reclassification, recapitalization or other similar change
in such warrants or in the case of a consolidation or merger of the Company with
or into another Person, such consideration to which a holder of a warrant would
have been entitled upon the occurrence of such event.

         Commission: means the Securities and Exchange Commission or any other
federal agency at the time administering the Securities Act.

         Common Stock: means the common stock, par value $0.01 per share, of the
Company and all shares hereafter authorized of any class of common stock of the
Company, and, in the case of a reclassification, recapitalization or other
similar change in such Common Stock or in the case of a consolidation or merger
of the Company with or into another Person, such consideration to which a holder
of a share of Common Stock would have been entitled upon the occurrence of such
event.

         Company: includes, in addition to the Company, any successor or
assignee corporation or corporations into which or with which Lodgian, Inc. may
be merged or consolidated; any corporation for whose shares the Common Stock,
Preferred Stock, Class A Warrants and Class B Warrants may be exchanged; and any
assignee of or successor to all or substantially all of the assets of the
Company.

         Effective Date:  shall have the meaning set forth in the recitals.

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         Exchange Act: means the Securities Exchange Act of 1934, as amended,
and the rules and regulations of the Commission promulgated thereunder.

         Holder: means each of those Persons listed on Schedule A hereto, and
each Person who is a Permitted Transferee of any Shareholder.

         Original Issue Common Stock: shall have the meaning set forth in the
recitals.

         Original Issue Preferred Stock: shall have the meaning set forth in the
recitals.

         Original Issue Warrants: shall have the meaning set forth in the
recitals.

         Permitted Transferee: means:

         (i) In the case of a Shareholder which is a corporation, partnership,
limited liability company or other entity, (a) any corporation, partnership,
limited liability company or other Person controlled by, controlling, or under
common control with any Shareholder to whom any Shareholder has Transferred
shares of Common Stock, Preferred Stock, Class A Warrants, Class B Warrants or
Warrant Shares or (b) any corporation, partnership, limited liability company or
other Person to whom any Shareholder has Transferred, in the aggregate, 15% or
more of such Shareholder's shares of Common Stock, Preferred Stock, Class A
Warrants, Class B Warrants or Warrant Shares;

         (ii) In the case of any Shareholder which is an individual, any spouse
(including a former spouse under a legally terminated marriage), or descendant
(whether natural, step or adopted) of any such individual Shareholder or any
trust formed exclusively for the benefit of any such individual Shareholder; and

         (iii)  In the case of any Shareholder, any other Shareholder.

         Notwithstanding any Person's status as a Permitted Transferee, any
Transfer of Registrable Securities shall be subject to the provisions of Section
10.1.

         Person: means any individual, corporation, partnership, trust or other
entity of any nature whatsoever.

         Piggyback Registration: shall have the meaning set forth in Section
3.1.

         Plan:  shall have the meaning set forth in the recitals.

         Preferred Stock: means the Series A preferred stock, par value $0.01
per share, of the Company, and, in the case of a reclassification,
recapitalization or other similar change in such preferred stock or in the case
of a consolidation or merger of the Company with or into another Person, such
consideration to which a holder of a share of preferred stock would have been
entitled upon the occurrence of such event.

         Registrable Securities: means, with respect to any Holder, (a) all
shares of Original Issue Common Stock, Original Issue Preferred Stock, Original
Issue Warrants and Warrant Shares (collectively, with the Original Issue Common
Stock, Original Issue Preferred Stock and Original Issue Warrants, the "Original
Issue Securities") beneficially owned by such Holder; and (b) all other
securities issued or distributed by the Company with respect to, or in exchange
for, the Original Issue Securities pursuant to a stock dividend or distribution,
stock split, merger, consolidation, reorganization, recapitalization,
reclassification, conversion right or otherwise. Shares of Original Issue
Securities held by any Holder shall cease to be Registrable Securities when (i)
a registration statement with respect to the sale of such securities shall have
become effective under the Securities Act pursuant to Section 2.1 of this
Agreement and such securities shall have been disposed of pursuant to such
registration statement, (ii) such securities shall have been sold or otherwise
distributed pursuant to Rule 144 (or any successor provision) under the
Securities Act, (iii) they may be freely transferred by such Holder pursuant to
Rule 144 under the Securities Act without compliance with paragraph (e) thereto,
(iv) all such securities then held by such Holder can be transferred within a
single 90-day period pursuant to Rule 144 under the Securities Act within the
limits specified in paragraph (e)(1)(i) thereof, provided that, in the case of
clauses (iii) and (iv), the Company shall have complied with paragraph

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(c) thereof, or (v) such securities shall have ceased to be outstanding.

         Registration Statement: shall have the meaning set forth in Section
2.1.

         Securities Act: means the Securities Act of 1933, as amended, and the
rules and regulations of the Commission promulgated thereunder.

         Shareholders:  shall have the meaning set forth in the recitals.

         Shelf Registration: shall have the meaning set forth in Section 2.1.

         Transfer: means any transfer, sale, gift, assignment, distribution,
conveyance, pledge, hypothecation, encumbrance or other voluntary or involuntary
transfer of title or beneficial interest, whether or not for value, including,
without limitation, any disposition by operation of law or any grant of a
derivative or economic interest therein.

         Warrant Shares: means the shares of Common Stock issuable upon exercise
of the Class A Warrants or the Class B Warrants.

                                   ARTICLE II

                               SHELF REGISTRATION

         2.1. Shelf Registration. The Company shall use its reasonable best
efforts to cause to be filed with the Commission, on or before six months after
the Effective Date, a shelf registration statement (the "Registration
Statement") on an appropriate form under the Securities Act, relating to the
offer and sale of the Registrable Securities by the Holders thereof from time to
time in accordance with the methods of distribution set forth in the
Registration Statement and Rule 415 under the Securities Act (the "Shelf
Registration"). The Company shall use its reasonable best efforts to have such
Shelf Registration declared effective by the Commission as promptly as
practicable thereafter and in no event later than eighteen months after the
Effective Date. The Company shall use its reasonable best efforts to keep the
Registration Statement continuously effective, supplemented and amended in order
to permit the prospectus included therein to be lawfully delivered by the
Holders of the relevant Registrable Securities for the period beginning on the
date on which such Registration Statement is declared effective and ending on
the first date that there are no Registrable Securities (the "Shelf Registration
Period"). (As used herein, except as otherwise provided or unless the context
otherwise requires, the term "prospectus" refers to the prospectus included in
the Registration Statement at the time such Registration Statement is declared
effective, as amended or supplemented by any prospectus supplement and by all
other amendments thereto, including post-effective amendments, and all material
incorporated by reference into such prospectus.) The Company's obligations under
this Section 2.1 are subject to the provisions of Section 4.1.

         2.2. Notice of Offering. Notwithstanding anything in Section 2.1 to the
contrary, in the event that the Registration Statement is prepared on a Form
S-1, any Holder intending to distribute a prospectus in connection with the sale
of Registrable Securities, shall, prior to such distribution, provide the
Company with 5 business days prior written notice of such intention, in order to
provide the Company with sufficient time to amend, supplement, and/or otherwise
update the Registration Statement to permit the prospectus included therein to
be lawfully delivered.

                                   ARTICLE III

                             PIGGYBACK REGISTRATION

         3.1. Notice of Registration. In the event that the Company proposes to
register any of its Common Stock, either for its own account or for the account
of any Person other than the Holders, but not including a registration (i)
relating to employee stock option or purchase plans or (ii) relating to a
transaction pursuant to Rule 145 under the Securities Act (a "Piggyback
Registration"), the Company will:

         (X)  promptly give written notice thereof to the Holders; and

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         (Y) use its best efforts to include in such Piggyback Registration and
in any underwriting involved therein up to all of the Registrable Securities
which the Holders request in writing to be so included within 20 days after
receipt of such written notice from the Company. Any Holder of Registrable
Securities shall have the right to withdraw its request for inclusion of its
Registrable Securities in any registration statement pursuant to this Section 3
by giving written notice to the Company, within a reasonable time, of its
request to withdraw. The Company's obligations under this Section 3.1 are
subject to the provisions of Section 4.1.

         3.2. Underwriting. If the registration of which the Company gives
notice is for a registered underwritten public offering, the Company shall so
advise the Holders as a part of the written notice given pursuant to Section
3.1, and the right of the Holders to include Registrable Securities in such
registration shall be conditioned upon the Holders' participation in such
underwriting and the entry of the participating Holders (together with the
Company and other holders distributing their securities through such
underwriting) into an underwriting agreement in customary form with the
underwriter or underwriters selected for such underwriting by the Company.

         3.3. Priority. If the underwriter of the registered public offering
referred to in Section 3.2 shall advise the Company in writing that marketing
factors require a limitation of the amount of securities to be underwritten,
securities shall be included in such offering in the following priority: first,
the Common Stock proposed to be registered by the Company; and second,
Registrable Securities requested to be included in such registration by
requesting Holders pursuant to Section 3.1, pro rata on the basis of the number
of Registrable Securities requested to be included by such Holders. Any
securities excluded pursuant to the provisions of this Section 3.3 shall be
withdrawn from and shall not be included in such Piggyback Registration.

                                   ARTICLE IV

              PERMITTED DELAYS IN REGISTRATION; HOLDBACK AGREEMENTS

         4.1. Suspension of Company Obligations. Notwithstanding anything to the
contrary set forth in this Agreement, the Company's obligation under Article II
of this Agreement to file the Registration Statement and to use its best efforts
to cause Registrable Securities to be registered as provided therein shall be
suspended in the event either (i) the Company is engaged in an underwritten
primary offering and the Company is advised in writing by the underwriters that
the sale of Registrable Securities would have a material adverse effect on such
primary offering, or (ii) in the good faith opinion of counsel to the Company's
Board of Directors, effecting the registration of Registrable Securities would
adversely affect a material financing, acquisition, disposition of assets or
stock, merger or other comparable transaction or would require the Company to
make public disclosure of information the public disclosure of which would have
a material adverse effect upon the Company (any of the events set forth in
clauses (i) and (ii) being hereinafter referred to as a "Suspension Event"), but
such suspension shall occur on not more than one occasion in a 365-day period
and shall continue only for so long as such event or its effect is continuing,
but in no event will any such suspension exceed 100 days. The Company shall
promptly notify the Holders in writing of the existence of any Suspension Event,
and with such notice shall provide the Holders with a copy of such underwriters'
determination (in the case of clause (i) above), or such opinion of counsel to
the Board of Directors (in the case of clause (ii) above).

         4.2. Restrictions on Public Sale by Holders. Each Holder agrees, if
requested in writing by:

         (i) the managing underwriter or underwriters in an underwritten primary
offering of equity securities of the Company made pursuant to the Securities
Act; or

         (ii) the principal placement agent or agents in any offering of equity
securities to be effected by the Company pursuant to an exemption from
registration under the Securities Act;

not to effect any public sale or distribution of any Registrable Securities,
including a sale pursuant to Rule 144 (or any successor provision) under the
Securities Act (except to the extent included in any such offering or
distribution pursuant to Sections 2.1 or 3.1), during the period starting with
the date 15 days prior to and ending on the date 90 days after the closing date
of any such offering, sale or distribution; provided that, with respect to a
given offering of securities, (x) each other Holder is similarly restricted and
(y) each director and executive officer (including any

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"key" employees) of the Company agrees in writing to identical restrictions.

         4.3. Release from Restrictions. The Company may, in its sole and
absolute discretion, elect to waive the applicability in any particular instance
of the provisions of Section 4.2.

                                    ARTICLE V

                             REGISTRATION PROCEDURES

         5.1. Registration Procedures. In connection with each registration to
be effected by the Company pursuant to this Agreement in which any Holder is
participating, the Company shall keep the Holder advised in writing as to the
initiation of each registration and as to the completion thereof. In connection
with each such offering, the Company shall as expeditiously as possible, at its
sole expense:

         (a) prepare and file with the Commission a registration statement with
respect to such Holder's Registrable Securities and use its reasonable best
efforts to cause such registration statement to become effective, and thereafter
use its best efforts to keep such registration statement, in the case of the
Shelf Registration, continuously effective for the Shelf Registration Period,
and in the case of the Piggyback Registration, until the distribution described
in the registration statement relating thereto has been completed;

         (b) in connection with the preparation and filing of a registration
statement, give the Holders, the underwriters, if any, and their respective
counsel, the opportunity to participate (including the inclusion of any
reasonable comments proposed by the Holders) in the preparation of such
registration statement, each prospectus included therein or filed with the
Commission, and each amendment thereof or supplement thereto (provided that the
Company shall not file any such registration statement including Registrable
Securities or amendment thereto or any related prospectus or any supplement
thereto to which such Holders or the managing underwriter or underwriters, if
any, shall reasonably object in writing), and give each of them such access to
its books and records and such opportunities to discuss the business of the
Company with its officers, its counsel and the independent public accountants
who have certified its financial statements as shall be necessary, in the
opinion of the Holder's and such underwriters' respective counsel, to conduct a
reasonable due diligence investigation within the meaning of the Securities Act;

         (c) furnish to the Holders and to the underwriters of the Registrable
Securities such number of copies of the registration statement, preliminary
prospectus, final prospectus and other documents incident thereto as such
underwriters and Holders from time to time may reasonably request;

         (d) prepare and file with the Commission such amendments and
supplements to such registration statement and the prospectus used in connection
with such registration statement as may be necessary to comply with the
provisions of the Securities Act with respect to the disposition of all
securities covered by such registration statement;

         (e) register or qualify the Registrable Securities under such other
securities or Blue Sky laws of such jurisdictions as shall be reasonably
requested by any of the Holders for the distribution of the Registrable
Securities covered by the registration statement to be sold by such Holders; and
to take any other action which may be reasonably necessary to enable such
Holders to consummate the disposition in such jurisdictions in the United States
of such Registrable Securities owned by such Holders, provided that the Company
shall not be required in connection therewith or as a condition thereto to
qualify to do business or to file a general consent to service of process in any
such states or jurisdictions, or to subject itself to taxation in any such
jurisdiction;

         (f) enter into an underwriting agreement in customary form and
substance reasonably satisfactory to the Company, the Holders and the managing
underwriter or underwriters of the public offering of Registrable Securities, if
the offering is to be underwritten, in whole or in part, provided that the
Holders shall be a party to such underwriting agreement and the Holders may, at
their option, require that any or all of the conditions precedent to the
obligations of such underwriters under such underwriting agreement be conditions
precedent to the obligations of the Holders. The Holders shall not be required
to make any representations or warranties to or agreement with the Company or
the underwriters other than representations, warranties or agreements regarding
the Holders and their

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intended method of distribution and any other representation or warranty
required by law;

         (g) promptly notify the Holders at any time when a prospectus relating
thereto covered by such registration statement is required to be delivered under
the Securities Act, of the happening of any event as a result of which the
prospectus included in such registration statement, as then in effect, includes
an untrue statement of a material fact or omits to state a material fact
required to be stated therein or necessary to make the statements therein not
misleading in the light of the circumstances then existing, and at the request
of any such Holder prepare and furnish to such Holder a reasonable number of
copies of a supplement to or an amendment of such prospectus as may be necessary
so that, as thereafter delivered to the purchasers of such securities, such
prospectus shall not include an untrue statement of a material fact or omit to
state a material fact required to be stated therein or necessary to make the
statements therein not misleading in light of the circumstances then existing,
provided that each Holder agrees that upon receipt of any notice from the
Company of the happening of any event of the kind described in this Section
5.1(g), such Holder shall forthwith discontinue its disposition of Registrable
Securities pursuant to the registration statement relating to such Registrable
Securities until such Holder's receipt of the copies of the supplemented or
amended prospectus contemplated by this Section 5.1(g) and, if so directed by
the Company, such Holder shall use its reasonable best efforts to deliver to the
Company all copies, other than permanent file copies then in such Holder's
possession, of the prospectus relating to such Registrable Securities current at
the time of receipt of such notice;

         (h) use its reasonable best efforts promptly to obtain the withdrawal
of any stop order suspending the effectiveness of a registration statement, or
any order suspending or preventing the use of any related prospectus or
suspending the qualification of any securities included in such registration
statement for sale in any jurisdiction;

         (i) furnish, at the request of a Holder on the date that any
Registrable Securities are to be delivered to the underwriters for sale in
connection with a registration pursuant to this Agreement, if such securities
are being sold through underwriters, or, if such securities are not being sold
through underwriters, on the date that the registration statement with respect
to such securities becomes effective, (i) an opinion, dated such date, of the
counsel representing the Company for the purposes of such registration, in form
and substance as is customarily given to underwriters in an underwritten public
offering, addressed to the underwriters, if any, and to such Holder and (ii) a
letter dated such date, from the independent certified public accountants of the
Company who have certified the Company's financial statements included in such
registration statement, in form and substance as is customarily given by
independent certified public accountants to underwriters in an underwritten
public offering, addressed to the underwriters, if any, and to such Holder;

         (j) otherwise use its reasonable best efforts to comply with all
applicable rules and regulations of the Commission to effect the prompt
registration of the securities covered by the registration statement, and make
generally available to the Holders, as soon as reasonably practicable, an
earnings statement covering a period of at least twelve months beginning after
the effective date of such registration statement, which earnings statement
shall satisfy the provisions of Section 11(a) of the Securities Act; and

         (k) list all Registrable Securities covered by such registration
statement on the American Stock Exchange or such other national securities
exchange or inter-dealer quotation system as may be mutually agreed upon by the
parties and such securities exchange.

                                   ARTICLE VI

                                 INDEMNIFICATION

         6.1. Indemnification by the Company. In the event of any registration
of any Registrable Securities pursuant to this Agreement under the Securities
Act, the Company will, and hereby does, indemnify and hold harmless each
participating Holder, each of its trustees, beneficiaries, directors, officers,
employees, agents, advisors and controlling persons, if any, each other Person
who participates as an underwriter in the offering or sale of such securities
and each other Person who controls any such underwriter within the meaning of
the Securities Act, against any losses, claims, damages or liabilities, joint or
several, to which such participating Holder or any such Person, underwriter or
controlling person may become subject under the Securities Act or otherwise,
insofar as such losses, claims, damages or liabilities (or actions or
proceedings, whether commenced or threatened, in respect thereof) arise

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out of or are based upon any untrue statement or alleged untrue statement of any
material fact contained in the registration statement under which such
Registrable Securities were registered under the Securities Act, any preliminary
prospectus, final prospectus or summary prospectus contained therein, or any
amendment or supplement thereto, or any omission or alleged omission to state
therein a material fact required to be stated therein or necessary to make the
statements therein, in light of the circumstances under which they were made,
not misleading, and the Company will reimburse each participating Holder and
each such Person, underwriter and controlling person for any reasonable legal or
any other expenses reasonably incurred by them in connection with investigating
or defending any such loss, claim, liability, action or proceeding; provided,
however, that the Company shall not be liable in any such case to the extent
that any such loss, claim, damage, liability (or action or proceeding in respect
thereof) or expense arises out of or is based upon an untrue statement or
alleged untrue statement or omission or alleged omission made in such
registration statement, any such preliminary prospectus, final prospectus,
summary prospectus, amendment or supplement in reliance upon and in conformity
with written information furnished to the Company by such participating Holder
or any other Person who participates as an underwriter in the offering or sale
of such securities, in either case, specifically stating that it is for use in
the preparation thereof; and provided, further, that the Company shall not be
liable to any Person who participates as an underwriter in the offering or sale
of Registrable Securities or any other Person, if any, who controls such
underwriter within the meaning of the Securities Act in any such case to the
extent that any such loss, claim, damage, liability (or action or proceeding in
respect thereof) or expense arises out of such Person's failure to send or give
a copy of the final prospectus or supplement to the Persons asserting an untrue
statement or alleged untrue statement or omission or alleged omission at or
prior to the written confirmation of the sale of Registrable Securities to such
Person if such statement or omission was corrected in such final prospectus or
supplement. Such indemnity shall remain in full force and effect regardless of
any investigation made by or on behalf of any participating Holder or any such
underwriter or controlling person and shall survive the transfer of such
securities by the Holder.

         6.2. Indemnification by Participating Holders. Each of the
participating Holders whose Registrable Securities are included or to be
included in any registration statement, as a condition to including Registrable
Securities in such registration statement, agrees to indemnify and hold harmless
(in the same manner and to the same extent as set forth in Section 6.1) the
Company, each director of the Company, each officer of the Company and each
other Person, if any, who controls the Company within the meaning of the
Securities Act, and each other Person who participates as an underwriter in the
offering or sale of such securities and each other Person who controls any such
underwriter within the meaning of the Securities Act with respect to any untrue
statement or alleged untrue statement of a material fact in or omission or
alleged omission to state a material fact from such registration statement, any
preliminary prospectus, final prospectus or summary prospectus contained
therein, or any amendment or supplement thereto, if such untrue statement or
alleged untrue statement or omission or alleged omission was made in reliance
upon and in conformity with written information furnished to the Company
pertaining to such participating Holder by such participating Holder
specifically stating that it is for use in the preparation of such registration
statement, preliminary prospectus, final prospectus, summary prospectus,
amendment or supplement. The obligation to provide indemnification pursuant to
this Section 6.2 shall be several, and not joint and several, among the
participating Holders. The indemnity provided by each Holder under this Section
6.2 shall be limited to an amount equal to the net proceeds received by such
Holder from the sale of Registrable Securities pursuant to such registration
statement. Such indemnity shall remain in full force and effect regardless of
any investigation made by or on behalf of the Company or any such director,
officer, or any such underwriter or controlling person and shall survive the
transfer of such securities by any participating Holder.

         6.3. Notices of Claims. Promptly after receipt by an indemnified party
of notice of the commencement of any action or proceeding involving a claim
referred to in Section 6.1 or 6.2, such indemnified party will, if a claim in
respect thereof is to be made against an indemnifying party, give written notice
to the latter of the commencement of such action; provided, however, that the
failure of any indemnified party to give notice as provided herein shall not
relieve the indemnifying party of its obligations under Section 6.1 or 6.2,
except to the extent that the indemnifying party is actually prejudiced by such
failure to give notice. In case any such action is brought against an
indemnified party, unless in such indemnified party's reasonable judgment a
conflict of interest between such indemnified and indemnifying parties may exist
in respect of such claim, the indemnifying party shall be entitled to
participate in and to assume the defense thereof, jointly with any other
indemnifying party similarly notified to the extent that it may wish, with
counsel reasonably satisfactory to such indemnified party, and after notice from
the indemnifying party to such indemnified party of its election so to assume
the defense thereof, the indemnifying party shall not be liable to the
indemnified party for any legal or other expenses subsequently incurred by the
latter in connection with the

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defense thereof other than reasonable costs of investigation, provided that the
indemnified party may participate in such defense at the indemnified party's
expense and provided, further, that all indemnified parties shall have the right
to employ one counsel to represent them if, in the reasonable judgment of such
indemnified parties, it is advisable for them to be represented by separate
counsel by reason of having legal defenses which are different from or in
addition to those available to the indemnifying party, and in that event the
reasonable fees and expenses of such one counsel shall be paid by the
indemnifying party. If the indemnifying party is not entitled to, or elects not
to, assume the defense of a claim, it will not be obligated to pay the fees and
expenses of more than one counsel for the indemnified parties with respect to
such claim, unless in the reasonable judgment of any indemnified party a
conflict of interest may exist between such indemnified party and any other
indemnified parties with respect to such claim, in which event the indemnifying
party shall be obligated to pay the fees and expenses of such additional counsel
for the indemnified parties. No indemnifying party shall consent to entry of any
judgment or enter into any settlement without the consent of the indemnified
party which does not include as an unconditional term thereof the giving by the
claimant or plaintiff to such indemnified party of a release from all liability
in respect to such claim or litigation. No indemnifying party shall be subject
to any liability for any settlement made without its consent, which consent
shall not be unreasonably withheld.

         6.4. Other Indemnification. Indemnification similar to that specified
in the preceding Sections of this Article VI (with appropriate modifications)
shall be given by the Company and any participating Holder with respect to any
required registration or other qualification of securities under any federal or
state law or regulation of any governmental authority other than the Securities
Act.

         6.5. Indemnification Payments. The indemnification required by this
Article VI shall be made by periodic payments of the amount thereof during the
course of the investigation or defense, as and when bills are received or
expense, loss, damage or liability is incurred.

         6.6. Contribution. If, for any reason, the foregoing indemnity is
unavailable, or is insufficient to hold harmless an indemnified party, then the
indemnifying party shall contribute to the amount paid or payable by the
indemnified party as a result of the expense, loss, claim, damage or liability
(a) in such proportion as is appropriate to reflect the relative fault of the
indemnifying party on the one hand and the indemnified party on the other
(determined by reference to, among other things, whether the untrue or alleged
untrue statement of a material fact or omission or alleged omission relates to
information supplied by the indemnifying party or the indemnified party and the
parties' relative intent, knowledge, access to information and opportunity to
correct or prevent such untrue statement or omission), or (b) if the allocation
provided by clause (a) above is not permitted by applicable law or provides a
lesser sum to the indemnified party than the amount otherwise payable hereunder,
in the proportion as is appropriate to reflect not only the relative fault of
the indemnifying party and the indemnified party, but also the relative benefits
received by the indemnifying party on the one hand and the indemnified party on
the other, as well as any other relevant equitable considerations. No
indemnified party guilty of fraudulent misrepresentation (within the meaning of
Section 11(f) of the Securities Act) shall be entitled to contribution from any
indemnifying party who was not guilty of such fraudulent misrepresentation. The
contribution provided by each participating Holder under this Section 6.6 shall
be limited to an amount equal to the net proceeds received by such participating
Holder from the sale of Registrable Securities pursuant to such registration
statement.

                                   ARTICLE VII

                              REGISTRATION EXPENSES

         7.1. Registration Expenses. All expenses incident to the Company's
performance of or compliance with this Agreement will be borne by the Company,
including, without limitation: (i) all registration, filing and National
Association of Securities Dealers fees and expenses; (ii) all fees and expenses
associated with compliance with federal securities and state Blue Sky or
securities laws; (iii) all expenses of printing (including printing of
certificates for the Common Stock, Preferred Stock, Class A Warrants, Class B
Warrants, Warrant Shares and the prospectuses), messenger and delivery services
and telephone; (iv) all fees and disbursements of counsel for the Company and
the Holders, except to the extent otherwise provided in this Section 7.1; (v)
all application and filing fees in connection with listing the Registrable
Securities on a securities exchange pursuant to the requirements hereof; and
(vi) all fees and disbursements of independent certified public accountants of
the Company (including the expenses associated with preparing any special audit
and comfort letters required by or incident to such

                                      -8-
<PAGE>

performance or compliance).

         The Company will reimburse the Holders of Registrable Securities
registered pursuant to the Registration Statement, or any Piggyback
Registration, for the reasonable fees and disbursements of not more than one
counsel, which shall be chosen by Holders of a majority of Registrable
Securities being registered pursuant to such registration. Notwithstanding the
provisions of this Section 7.1, each Holder shall bear the expense of any
broker's commission, agency fee or underwriter's discount or commission.

                                  ARTICLE VIII

                             INFORMATION BY HOLDERS

         8.1. Information Regarding Holders. Each Holder shall furnish to the
Company and any applicable underwriter such information regarding such Holder
and the distribution proposed by such Holder as the Company or such underwriter
may request in writing and as shall be required in connection the registration
referred to in this Agreement.

                                   ARTICLE IX

                                 RULE 144 SALES

         9.1. Reporting. With a view to making available to the Holders the
benefits of certain rules and regulations of the Commission which may permit the
sale of Registrable Securities (and shares of Original Issue Common Stock,
Original Issue Preferred Stock, Original Issue Warrants and Warrant Shares held
by a Holder which are eligible for sale or distribution under Rule 144 (or any
successor provision) promulgated under the Securities Act) to the public without
registration or through short form registration forms the Company agrees to:

         (a) make and keep public information available, as those terms are
understood and defined in Rule 144, at all times after 90 days after the
Effective Date;

         (b) file with the Commission in a timely manner all reports and other
documents required of the Company under the Securities Act and the Exchange Act;
and

         (c) furnish to each Holder, so long as such Holder owns any Registrable
Securities (or any shares of Original Issue Common Stock, Original Issue
Preferred Stock, Original Issue Warrants or Warrant Shares held by a Holder
which are eligible for sale or distribution under Rule 144 (or any successor
provision) promulgated under the Securities Act), forthwith upon request a
written statement by the Company that it has complied with the reporting
requirements of Rule 144 (at any time after 90 days after the Effective Date),
the Securities Act and the Exchange Act (at any time after it has become subject
to such reporting requirements), a copy of the most recent annual or quarterly
report of the Company, and such other reports and documents so filed by the
Company as such Holder may reasonably request in availing itself of any rule or
regulation of the Commission permitting such Holder to sell any such securities
without registration.

                                    ARTICLE X

                               TRANSFER OF RIGHTS

         10.1. Transfer or Assignment. The rights granted hereunder by the
Company may be assigned or otherwise conveyed to the respective Permitted
Transferees of the Shareholders. It shall be a condition to any Transfer that
(a) such Transfer is effected in accordance with applicable federal and state
securities laws, (b) such transferee or assignee becomes a party to this
Agreement or agrees in writing to be subject to the terms hereof to the same
extent as if it were the Holder hereunder, and (c) the Company is given written
notice by the Holder of said Transfer, stating the name and address of said
transferee and identifying the securities with respect to which such
registration rights are being assigned.

                                      -9-
<PAGE>

                                   ARTICLE XI

                                   TERMINATION

         11.1. Termination. This Agreement and the rights provided hereunder
shall terminate and be of no further force and effect with respect to each
Holder on such date as such Holder shall no longer hold any Registrable
Securities.

                                   ARTICLE XII

                                  MISCELLANEOUS

         12.1. Remedies for Breach. It is expressly understood that the
equitable remedies of specific performance and injunction shall be available for
the enforcement of the covenants and agreements herein, and that the
availability of these equitable remedies shall not be deemed to limit any other
right or remedy to which any party to this Agreement would otherwise be
entitled.

         12.2. Successors and Assigns. Subject to the provisions of Section
10.1, the terms and conditions of this Agreement shall inure to the benefit of
and be binding upon the respective successors, assigns and transferees of the
parties. If any successor, assignee or transferee of any Holder shall acquire
Registrable Securities, in any manner, whether by operation of law or otherwise,
such Registrable Securities shall be held subject to all of the terms of this
Agreement, and by taking and holding such Registrable Securities such Person
shall be conclusively deemed to have agreed to be bound by all of the terms and
provisions hereof.

         12.3. Notices. All notices and other communications provided for
hereunder shall be in writing and sent by registered or certified mail, return
receipt requested, postage prepaid or delivered in person or by courier,
telecopier or electronic mail, and shall be deemed to have been duly given when
received, by the party to whom such notice is to be given at its address set
forth below, or at such other address for the party as shall be specified by
notice given pursuant hereto:

         (a)      if to the Company, to:

                  LODGIAN, INC.
                  3445 Peachtree Road - Suite 700
                  Atlanta, Georgia 30326
                  Attention:  General Counsel

                  with a copy to:

                  Cadwalader, Wickersham & Taft
                  100 Maiden Lane
                  New York, NY 10038
                  Attention:  Michael C. Ryan

         (b) If to a Holder, to such Holder at the address set forth for such
Holder in the stock records of the Company.

         12.4. Governing Law. This Agreement and any controversy or claim
arising out of or relating to this Agreement shall be governed by the laws of
the State of Delaware, without giving effect to the principles of conflicts of
laws.

         12.5. Consent to Jurisdiction and Service of Process. Each of the
Company and each Holder hereby irrevocably appoints the Corporation Trust
Company, at its office at 1209 Orange Street, Wilmington, DE 19801, its lawful
agent and attorney to accept and acknowledge service of any and all process
against it in any action, suit or proceeding arising in connection with this
Agreement and upon whom such process may be served, with the same effect as if
such party were a resident of the State of Delaware and had been lawfully served
with such process in

                                      -10-
<PAGE>

such jurisdiction, and waives all claims of error by reason of such service,
provided that in the case of any service upon such agent and attorney, the party
effecting such service shall also deliver a copy thereof to each other party at
the address and in the manner specified in Section 12.3. Each of the Company and
each Holder will enter into such agreements with such agent as may be necessary
to constitute and continue the appointment of such agent hereunder. In the event
that such agent and attorney resigns or otherwise becomes incapable of acting as
such, each party will appoint a successor agent and attorney in Wilmington,
Delaware, reasonably satisfactory to the Company, with like powers. Each party
hereby irrevocably submits to the non-exclusive jurisdiction of the United
States District Court for the District of Delaware or any court of the State of
Delaware located in the City of Wilmington in any such action, suit or
proceeding, and agrees that any such action, suit or proceeding shall be brought
only in such court (and waives any objection based on forum non conveniens or
any other objection to venue therein); provided, however, that such consent to
jurisdiction is solely for the purpose referred to in this Section 12.5 and
shall not be deemed to be a general submission to the jurisdiction of said
courts or in the State of Delaware other than for such purpose. Nothing herein
shall affect the right of any party to serve process in any other manner
permitted by law or to commence legal proceedings or otherwise proceed against
any other party in any other jurisdiction.

         12.6. Entire Agreement; Amendments and Waivers. This Agreement
constitutes the entire agreement among the parties pertaining to the subject
matter hereof and supersedes all prior agreements, understandings, negotiations
and discussions whether oral or written, of the parties. No supplement,
modification or waiver of this Agreement shall be binding unless executed in
writing by all parties. No waiver of any of the provisions of this Agreement
shall be deemed or shall constitute a waiver of any other provision hereof
(whether or not similar), nor shall such waiver constitute a continuing waiver
unless otherwise expressly provided.

         12.7. Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument. Copies of executed
counterparts transmitted by telecopy or other electronic transmission service
shall be considered original executed counterparts for purposes of this Section
12.7.

         12.8. Severability. In the event that any one or more of the provisions
contained in this Agreement shall, for any reason, be held to be invalid,
illegal or unenforceable in any respect, such invalidity, illegality or
unenforceability shall not affect any other provision of this Agreement.

         12.9. Attorneys' Fees. If any action at law or in equity is necessary
to enforce or interpret the terms of this Agreement, the prevailing party shall
be entitled to reasonable attorneys' fees, costs and disbursements in addition
to any other relief to which such party may be entitled.

         12.10. Headings. The headings of the Articles and Sections herein are
inserted for convenience of reference only and are not intended to be part of or
to affect the meaning or interpretation of this Agreement.

         12.11. Gender and Other References. Unless the context clearly
indicates otherwise, the use of any gender pronoun in this Agreement shall be
deemed to include all other genders, and singular references shall include the
plural and vice versa.

                            [SIGNATURE PAGE FOLLOWS]

                                      -11-
<PAGE>

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

                                      LODGIAN, INC.

                                      By: /s/ Daniel E. Ellis
                                          --------------------------------------
                                      Name: Daniel E. Ellis
                                      Title: Vice President and Secretary

                                      OCM REAL ESTATE OPPORTUNITIES
                                      FUND II, L.P.
                                          BY: OAKTREE CAPITAL
                                              MANAGEMENT, LLC,
                                              ITS GENERAL PARTNER

                                      By: /s/ Mark Porosoff
                                          --------------------------------------
                                      Name: Mark Porosoff
                                      Title: Senior Vice President, Legal

                                      By: /s/ Bruce Nuzie
                                          --------------------------------------
                                      Name: Bruce Nuzie
                                      Title: Senior Vice President

                                      BRE/HY FUNDING, L.L.C.

                                      By:
                                          --------------------------------------
                                      Name:
                                      Title:

                                      THIRD AVENUE TRUST, ON BEHALF OF
                                      THIRD AVENUE VALUE FUND

                                      By: /s/ David Barse
                                          --------------------------------------
                                      Name: David Barse
                                      Title: President

                                      THIRD AVENUE TRUST, ON BEHALF OF THIRD
                                      AVENUE REAL ESTATE VALUE FUND

                                      By: /s/ David Barse
                                          --------------------------------------
                                      Name: David Barse
                                      Title: President

                                      THIRD AVENUE MANAGEMENT LLC, as Investment
                                      Advisor for, and on behalf of,
                                      Aegon/Transamerica Series Fund, Inc.

                                      By: /s/ David Barse
                                          --------------------------------------
                                      Name: David Barse
                                      Title: President

                                      -12-
<PAGE>

                                      GENERAL MOTORS TRUST COMPANY

                                      By: /s/ Tony Kow
                                          --------------------------------------
                                      Name: Tony Kow
                                      Title: Managing Director

                                      -13-
<PAGE>

                                   SCHEDULE A

<TABLE>
<CAPTION>
             NAME                   NUMBER OF SHARES OF          NUMBER OF SHARES OF          NUMBER OF SHARES OF
              OF                      ORIGINAL ISSUE               ORIGINAL ISSUE               ORIGINAL ISSUE
         SHAREHOLDER                   COMMON STOCK                PREFERRED STOCK                 WARRANTS
         -----------                -------------------          -------------------          -------------------
<S>                                 <C>                          <C>                          <C>
OCM Real Estate                         1,578,611                   1,332,364.9               N/A
Opportunities Fund II, L.P.
General Motors Trust                     86,141.4                      72,704.3               N/A
Company
BRE/HY Funding, L.L.C.                  833,626.7                       703,590               N/A
Third Avenue Value                      439,629.6                        N/A                  Class A - 637,571.8
Fund                                                                                          Class B - 127,159.3
Third Avenue Real Estate                   31,000                        N/A                  Class A - 44,957.7
Value Fund                                                                                    Class B - 8,966.5
Ageon/Transamerica                         22,320                        N/A                  Class A - 32,369.5
Series Fund, Inc.                                                                             Class B - 6,455.9
</TABLE>

                                      -14-<PAGE>
                                                                   EXHIBIT 10.12

                              EMPLOYMENT AGREEMENT

         I, W. Thomas Parrington, and Lodgian, Inc. (Company) agree to the terms
and conditions of employment set forth in this Employment Agreement (Agreement).

         1.       TERM OF EMPLOYMENT. My employment under this Agreement shall
commence on July 1, 2003 and shall end on July 15, 2006 (Expiration Date), or
such earlier date on which my employment is terminated under Section 5 of this
Agreement ( "Employment Term"). Unless one party notifies the other in writing
that it intends to permit this Agreement to expire at least 60 days prior to the
Expiration Date, the Expiration Date shall automatically be extended for one
year. In the event that the Agreement is extended, I shall continue to be
eligible to receive the performance based incentive awards in Section 4(d) and
4(e). The Company and I shall enter into a side letter with respect to such
awards, which shall specify the Target EBITDA and how awards shall vest (or in
the case of the options, become exercisable), which shall be in a manner
consistent with the vesting schedules, as applicable, in Section 4(d) or 4(e).

         2.       NATURE OF DUTIES. I shall be the Company's President and Chief
Executive Officer reporting solely to the Board of Directors (Board). Except as
noted herein, I shall work exclusively for the Company and shall have all of the
customary powers and duties associated with these positions. I shall devote my
full business time and effort to the performance of my duties for the Company,
which I shall perform faithfully and to the best of my ability. I shall be
subject to the Company's policies, procedures, and approval practices, as
generally in effect from time-to-time and applied to Senior Executives.
Notwithstanding the foregoing, I shall be able to serve on up to two Boards for
for-profit entities. With Board approval, which shall not be unreasonably
withheld, I shall be permitted to exceed this limit of two. Nothing herein shall
be construed as limiting my ability to serve on the Board for non-profit
entities or otherwise engage in activities for charities. However, I shall not
serve on such Boards to the extent that doing so would interfere with my duties
to the Company.

         3.       PLACE OF PERFORMANCE. My primary office location shall be at
3445 Peachtree Road, Suite 700, Atlanta, Georgia, except for required travel on
the Company's business.

         4.       COMPENSATION AND RELATED MATTERS.

                  (a)      BASE SALARY. The Company shall pay me base salary at
an annual rate of $650,000, or such higher rate as it elects to pay me. My base
salary shall be paid in conformity with the Company's salary payment practices
generally applicable to other similarly situated Company senior executives, but
no less often than once monthly.

<PAGE>

                  (b)      SIGNING BONUS - STOCK.

                           (i)      The Company shall pay me a signing bonus in
the form of: (1) 200,000 restricted shares of the Company's common stock (Common
Stock) which were issued on July 15, 2003 and (2) a non-qualified option
(Option) to purchase 100,000 shares of Common Stock at a strike price of $3.00
per share, which was granted on July 15, 2003.

                           (ii)     The Option and restricted stock in Section
4(b) shall be subject to the terms of the incentive plan and incentive agreement
under which they were issued.

                           (iii)    If I remain employed by the Company through
the vesting date in question, subject to Section 5(a), one-third of the Option
and one-third of the restricted stock award in Section 4(b) shall vest (i.e.,
with respect to the Option, become exercisable) on each of July 15, 2004, 2005,
and 2006. However, subject to Section 5(a), vesting shall be postponed during
any Health-Related Leave of Absence until I return to work, unless such
postponement is prohibited by law.

                  (c)      Signing Bonus - Cash Payment. The Company shall pay
me a signing bonus of $100,000 payable in two payments of $50,000 each on April
1, 2004 and April 1, 2005.

                  (d)      ANNUAL PERFORMANCE BONUS.

                           (i)      Subject to Section 5(a), I shall be eligible
to receive an annual performance bonus in the amount shown in the applicable row
on the following table for each calendar year 2003-2006 as indicated if I remain
employed through December 31 of the year in question. If I take a Health-Related
Leave of Absence, my annual performance bonus shall be prorated by multiplying
the applicable bonus by a percentage equal to a fraction, the numerator of which
is the total number of days that I was employed during the applicable calendar
year, minus the total number of days that I was absent, the denominator of which
is 365, but the prorated bonus shall be payable only if I am employed through
December 31 of the year in question or, if my employment terminated before then,
if the bonus is to be paid pursuant to Section 5(a). Prior to payment of the
bonus, the Company's Board shall review and approve the bonus, which is subject
to Board approval. The Board shall review actual operating EBITDA performance,
and determine the percentage of Target EBITDA (as defined in the chart below)
that the Company achieved for the applicable calendar year. The Board shall not
unreasonably withhold approval upon determination of the actual operating EBITDA
performance (as defined herein) and the corresponding bonus due for that level
of performance. If the Board has not approved or disapproved the bonus by April
15, its approval shall not be required and the bonus for the calendar year in
question shall be paid if otherwise due.

                                       2
<PAGE>

<TABLE>
<CAPTION>
 IF THE COMPANY'S EBITDA
  FOR THE CALENDAR YEAR                  THE COMPANY SHALL PAY ME
    IN QUESTION IS                     AN ANNUAL PERFORMANCE BONUS OF
--------------------------------      --------------------------------------
<S>                                   <C>

125% or more of the Company's         For 2003:  $325,000
target EBITDA for the calendar year
in question as set forth in
Section 4(d)(iii) (Target EBITDA)     For 2004, 2005 & 2006:  $650,000
                                      (Maximum Bonus)

124.99% - 115% of Target EBITDA       For 2003:  $276,250

                                      For 2004, 2005 & 2006: 85% of Maximum
                                      Bonus ($552,500)

114.99% - 107.5% of Target EBITDA     For 2003: $211,250

                                      For 2004, 2005 & 2006: 65% of Maximum
                                      Bonus ($422,500)

107.49% - 100% of Target EBITDA       For 2003: $167,500

                                      For 2004, 2005 & 2006: 50% of Maximum
                                      Bonus ($325,000)

99.99% - 90% of the Target EBITDA     For 2003, $100,000
                                      For 2004, $200,000
                                      For 2005, 20% of Maximum Bonus ($130,000)
                                      For 2006, 20% of Maximum Bonus ($130,000)

Less than 90% of the Target EBITDA    For 2003, $100,000
                                      For 2004, $200,000
                                      For 2005, $0
                                      For 2006, $0
</TABLE>

                           (ii)     For calendar year 2003, my partial year of
employment is reflected by the bonus amount in the chart, but the minimum bonus
for year 2003 shall be no less than $100,000, regardless of the Company's
EBITDA. For

                                       3
<PAGE>

calendar year 2006, my bonus shall be prorated to reflect, if still applicable,
a partial year of employment. My prorated bonus in 2006, as applicable, shall be
calculated by multiplying the bonus by a percentage equal to the total number of
days in 2006 that I am employed pursuant this Agreement, divided by total number
of days in 2006.

                           (iii)    Subject to section (iv) below, the Company's
"Target EBITDA" as used herein for calendar years 2003, 2004, 2005, and 2006
are, respectively, $65 million, $76.5 million, $84.1 million, and $92.6 million.

                           (iv)     EBITDA means the Company's earnings before
interest, taxes, depreciation, and amortization of the Company's current
portfolio of assets, but shall exclude restructuring charges, asset sales, and
other nonrecurring income and expense items. EBITDA shall be calculated in a
manner consistent with the Company's presentation of financial statements to the
Board for the period commencing January 1, 2003 and ending June 30, 2003. If
changes to the portfolio are made, the Company will adjust its EBITDA targets as
follows:

                                    (1)      If a property is sold, the Target
EBITDA for the Year in which the sale occurs shall be reduced by the sold
property's EBITDA for the trailing 12 full months through the date of the sale,
and actual results for the Year will exclude the sold property's EBITDA. For
each subsequent Year, Target EBITDA shall be reduced by the sum of the reduction
for the Year of sale plus 10 percent of that reduction for each Year since the
Year of sale.

                                    (2)      If a property is acquired, the
Target EBITDA for the Year in which the purchase occurs shall be increased by
the acquired property's EBITDA for the trailing 12 full months through the date
of purchase, and actual results for the Year of purchase shall include the
acquired property's EBITDA as if it had been acquired on the first day of the
year. For each subsequent Year, Target EBITDA shall be increased by the sum of
the increase for the Year of purchase plus 10 percent of that increase for each
Year since the Year of purchase.

                                    (3)      For purposes of clauses (1) and
(2), "Year" shall mean the annual performance bonus calendar year in question
or, with respect to Section 4(e), the long-term compensation fiscal year in
question.

                           (v)      My bonus shall be paid within 30 days after
the Company has finalized its financial statement for the period in question,
but in no event later than April 15 (Bonus Payment Date). The Company shall pay
each bonus 75% in cash and 25% in restricted shares of Common Stock. The
restricted stock grant shall vest on the first anniversary of the Bonus Payment
Date if I remain employed through such date, except as provided in Sections
4(c)(vi) and 5(a). My restricted stock awards shall be subject to the terms of
the incentive plan and agreement under which they are issued. The restricted
stock in Section 4(d) is intended to qualify as "qualified performance based
compensation" for purposes of Section 162(m) of the Code.

                                       4
<PAGE>

                           (vi)     Notwithstanding Section 4(d)(v) but subject
to Section 5(a), vesting shall be postponed during any Health-Related Leave of
Absence until I return to work, unless prohibited by law.

                  (e)      LONG-TERM COMPENSATION.

                           (i)      Subject to the approval of the Board, the
Company shall grant me Options to purchase: (i) 50,000 shares of Common Stock
(2004 Options), (ii) 50,000 shares of Common Stock (2005 Options), and (iii)
50,000 shares of Common Stock (2006 Options). The strike price of these Option
shall be equal to the fair market value per share (Strike Price).

                           (ii)     Subject to Section 4(e)(iii) and 5(a), the
Options in Section 4(e) shall vest as follows:

                                    (1)      One-third of the 2004 Options shall
become exercisable on each of June 30, 2005, 2006, and 2007 if the Company's
EBITDA for the year ending June 30, 2004 is $70.8 million and I remain employed
through the vesting date in question.

                                    (2)      One-third of the 2005 Options shall
become exercisable on each of June 30, 2006, 2007, and 2008 if the Company's
EBITDA for the year ending June 30, 2005 is $80.3 million and I remain employed
through the vesting date in question.

                                    (3)      One-third of the 2006 Options shall
become exercisable on each of June 30, 2007, 2008, and 2009 if the Company's
EBITDA for the year ending June 30, 2006 is $88.4 million and I remain employed
through the vesting date in question.

                                    (4)      If the EBITDA targets in Section
4(e) are not met, the Options shall become exercisable on the seventh
anniversary of the grant date if I remain employed through this date.

                           (iii)    Notwithstanding Section 4(e)(ii), if the
EBITDA target is met for the option year in question, I remain employed through
the applicable Vesting Commencement Date, and the Strike Price of any Option
granted in this section is greater than the Target Price, the Company shall
grant me a number of restricted shares of Common Stock determined by the
Conversion Formula in Section 4(e)(iv), rounded up to the nearest whole share,
and an equal number of shares covered by the Option shall lapse. The Target
Price of the 2004, 2005, and 2006 Options, respectively, are $3, $4, and $5 per
share. The restricted stock granted in this section shall vest according to the
same three-year schedule as the options for the year in question. For example,
restricted stock granted in connection with the 2004 Options shall vest
according to analogous vesting provisions.

                                       5
<PAGE>

                           (iv)     "Conversion Formula" shall mean a fraction,
the numerator of which is the excess, if any, of the Strike Price over the
Target Price of the Option in question, multiplied by 50,000, and the
denominator of which is the fair market value of the Common Stock on the June
30, 2004 with respect to the 2004 Options, June 30, 2005 with respect to the
2005 Options, and June 30, 2006 with respect to the 2006 Options (Vesting
Commencement Date). Therefore, for example, if the Strike Price of the 2004
Options is $5 per share and the applicable fair market value is $5 per share,
then the I will receive (5-3)*50,000=100,000/5=20,000 shares of restricted stock
and 30,000 Options for 2004.

                           (v)      The Options in Section 4(e) are intended to
qualify as "qualified performance based compensation" for purposes of Section
162(m) of the Code. The Options and restricted stock in Section 4(e) will be
subject to the terms of the incentive plan under which they are issued and the
award agreement between me and the Company. Notwithstanding Section 4(e)(ii) but
subject to Section 5(a), vesting shall be postponed during any Health-Related
Leave of Absence until I return to work, unless such postponement is prohibited
by law.

                  (f)      STANDARD BENEFITS. During my employment, I shall be
entitled to participate in all employee benefit plans and programs, including
paid vacations, to the same extent generally available to other similarly
situated Company senior executives, in accordance with the terms of those plans
and programs. The Company agrees that I and my spouse shall be immediately
eligible to participate in the Company's medical/health/prescription coverage
plan without any waiting period or any pre-existing condition(s), limitations,
or exclusions whatsoever. To the extent that I or my spouse is/are not fully
covered by the medical/health/prescription plan for any reason, then the Company
shall pay or otherwise provide full coverage such that I and my spouse do not
incur any expense beyond the standard plan deductible and co-payment, if any.
Notwithstanding anything to the contrary herein, I shall not be eligible to
participate in the Company's 401(k) plan. The Company shall have the right to
terminate or change any such plan or program at any time in accordance with plan
terms.

                  (g)      INTEGRATION WITH DISABILITY BENEFITS. While I am
absent due to a health-related disability, the Company compensation otherwise
payable to me for that period shall be reduced by payments for that period from
Company-provided short or long term disability coverage and Workers'
Compensation wage replacement benefits.

                  (h)      INDEMNIFICATION. The Company shall extend to me the
same indemnification arrangements as are generally provided to other similarly
situated Company senior executives, which shall survive termination of my
employment.

                  (i)      EXPENSES. I shall be entitled to receive prompt
reimbursement for all reasonable and customary travel and business expenses I
incur in connection with my employment, but I must incur and account for those
expenses in

                                       6
<PAGE>

accordance with the policies and procedures established by the Company and as
applied to Senior Executives.

                  (j)      SARBANES-OXLEY ACT LOAN PROHIBITION. Notwithstanding
this Agreement or any other Company policy or program, the Company shall not
make a loan to me that would violate the Sarbanes-Oxley Act, and this Agreement
does not contemplate any such loans.

                  (k)      OTHER BENEFITS. I shall be entitled to the following
non-recurring benefits: (1) reimbursement of my relocation expenses, to be paid
within 30 days of presentment by me, (2) reimbursement of temporary housing
costs incurred by me to reside in Atlanta through October 7, 2003 and (3)
reimbursement of reasonable fees and expenses for legal and tax advice arising
in connection with the negotiation and documentation of this Agreement.

        5.        TERMINATION.

                  (a)      RIGHTS AND DUTIES. If my employment is terminated, I
shall be entitled to the amounts and/or benefits shown on the applicable row of
the following table, subject to the balance of this Section 5. The Company and I
shall have no further obligations to each other, except the Company's ongoing
indemnification obligation under Section 4, my confidentiality, etc. obligations
under Section 6, and our mutual arbitration obligations under Section 8, or as
set forth in any written agreement I subsequently enter into with the Company.

<TABLE>
<CAPTION>
<S>                        <C>
DISCHARGE                  Payment of (1) any unpaid base salary, reimbursement
FOR CAUSE                  of expenses incurred, and unused vacation days
OR                         accrued prior to the date of termination, (2) other
RESIGNATION                unpaid REASON vested amounts or benefits under
WITHOUT GOOD               Company compensation, incentive, and benefit plans,
                           (3) COBRA benefits.

DISABILITY                 Payment of (1) any unpaid base salary, reimbursement
                           of expenses incurred, and unused vacation days
                           accrued prior to the date of termination, (2) other
                           unpaid vested amounts or benefits under Company
                           compensation, incentive, and benefit plans, (3) COBRA
                           benefits, (4) a prorated bonus, calculated by
                           multiplying the applicable bonus by a percentage
                           equal to the total number of days that I was employed
                           for the bonus year in question, divided by 365, (5)
                           accelerated vesting and right to exercise all options
                           in Section 4(b), (6) accelerated vesting and right to
                           exercise all Options and restricted stock in Section
                           4(e) if the EBITDA target is met for the option year
                           in question and I remain employed through the
</TABLE>

                                       7
<PAGE>

<TABLE>
<S>                        <C>
                           applicable Vesting Commencement Date (all other
                           awards granted under Section 4(e) shall terminate),
                           (7) any unpaid portion of the cash signing bonus in
                           Section 4(c), and (8) a lump sum payment equal to the
                           difference, if any, between my monthly base salary
                           and my monthly Company-provided short term disability
                           benefits and Workers' Compensation wage replacement
                           benefits for up to 6 months or the date that my
                           Company-provided long-term disability benefits
                           commence if I am eligible to receive such benefits,
                           whichever is shorter. I shall be eligible to receive
                           the benefits in clauses (4) through (8) only if I am
                           terminated by the Company due to Disability, but not
                           if I resign.

DISCHARGE                  Payment of (1) any unpaid base salary, reimbursement
WITHOUT                    of expenses incurred, and unused vacation days
CAUSE OR                   accrued prior to the date of termination, (2) other
RESIGNATION                unpaid vested amounts or benefits under Company
FOR GOOD                   compensation, incentive, and benefit plans, (3) COBRA
REASON                     benefits. In exchange for my execution of a release
                           in accordance with this section, I shall also receive
                           (4) my base salary in section 4(a), any unpaid
                           portion of the cash signing bonus in Section 4(c),
                           and medical benefits all shall continue through the
                           Expiration Date or two years, whichever is shorter,
                           (5) the vesting of the stock options awarded in
                           Section 4(b) and the vesting of restricted stock
                           awarded in Section 4(d) shall accelerate and become
                           immediately exercisable, (6) I shall continue to be
                           eligible to receive the annual performance bonus in
                           section 4(d) through the Expiration Date or two
                           years, whichever is shorter, and (7) accelerated
                           vesting and right to exercise all Options and
                           restricted stock in Section 4(e) if the EBITDA target
                           is met for the option year in question and I remain
                           employed through the applicable Vesting Commencement
                           Date (all other awards granted under Section 4(e)
                           shall terminate). The annual performance bonus (if
                           any) shall be determined and paid as set forth in
                           Section 4(d) as if my employment had continued
                           through the Expiration Date, or for two years,
                           whichever is shorter.

DEATH                      Payment of (1) any unpaid base salary, reimbursement
                           of expenses incurred, and unused vacation days
                           accrued prior to the date of termination, (2) other
                           unpaid vested amounts or benefits under Company
                           compensation, incentive, and benefit plans, (3) COBRA
                           benefits, (4) accelerated vesting and right of
                           designee to exercise all options in Section 4(b) and
                           all granted but unvested restricted stock, (5)
                           prorated annual performance bonus, calculated by
                           multiplying
</TABLE>

                                       8
<PAGE>

<TABLE>
<S>                        <C>
                           the applicable bonus by a percentage equal to the
                           total number of days that I was employed for the year
                           in question, divided by 365, (6) accelerated vesting
                           and right to exercise all Options and restricted
                           stock in Section 4(e) if the EBITDA target is met for
                           the option year in question and I remain employed
                           through the applicable Vesting Commencement Date (all
                           other awards granted under Section 4(e) shall
                           terminate), and (4) any unpaid portion of the cash
                           signing bonus in Section 4(c).

TERMINATION
OF PAYMENT                 Payment of (1) any unpaid base salary, reimbursement
EMPLOYMENT                 of expenses incurred, and unused vacation days
AT                         accrued prior to the date of termination, (2) other
EXPIRATION                 unpaid vested amounts or benefits under Company
OF                         compensation, incentive, and benefit plans, (3) COBRA
AGREEMENT                  benefits.
</TABLE>

                  (b)      DISCHARGE FOR CAUSE. The Company may terminate my
employment at any time if it believes in good faith that it has Cause to
terminate me. However, my termination shall not be deemed for Cause unless the
Company sends me a written notice detailing the reasons it believes it had Cause
to terminate me on or before the date it did so. "Cause" shall mean:

                           (i)      my willful refusal to follow the Board's
lawful directions or my material failure to perform my duties (other than by
reason of physical or mental illness, injury, or condition), in either case,
only after I have been given written notice by the Board detailing the
directives I have refused to follow or the duties I have failed to perform and
at least 30 days to cure;

                           (ii)     my material and willful failure to comply
with Company policies as applied to senior executives, only after I have been
given written notice by the Board detailing the policies with which I have
failed to comply and at least 30 days to cure;

                           (iii)    my having actively sought a position with
another business, applied for such a position, and am likely to accept such a
position without the Company's written consent at any time more than 90 days
before the Expiration Date.

                           (iv)     my engaging in any of the following conduct:

                                    (1)      an act of fraud or dishonesty that
materially harms the Company or its affiliates.

                                       9
<PAGE>

                                    (2)      a felony or any violation of any
federal or state securities law or my being enjoined from violating any federal
or state securities law or being determined to have violated any such law.

                                    (3)      willful or reckless misconduct or
gross negligence in connection with any property or activity of the Company and
its subsidiaries and affiliates, and successors (Group).

                                    (4)      repeated and intemperate use of
alcohol or illegal drugs after written notice from the Board.

                                    (5)      material breach of any of my
obligations under this Agreement (other than by reason of physical or mental
illness, injury, or condition), but only after I have been given written notice
by the Board of the breach and at least 30 days to cure.

                                    (6)      becoming barred or prohibited by
the SEC from holding my position with the Company.

In the event I have tendered my resignation, the Company may not then or
thereafter terminate me for Cause.

                  (c)      TERMINATION FOR DISABILITY. Except as prohibited by
applicable law, the Company may terminate this Agreement on account of
Disability, or may transfer me to inactive employment status, which shall have
the same effect under this Agreement as a termination for Disability.
"Disability" means a physical or mental illness, injury, or condition that
prevents me from performing substantially all of my duties under this Agreement
for at least 90 consecutive calendar days or for at least 120 calendar days,
whether or not consecutive, in any 365 calendar day period.

                  (d)      DISCHARGE WITHOUT CAUSE. The Board may terminate my
employment at any time without cause by providing me with 30 days advance
written notice for any reason. If I am terminated by the Company other than for
Cause under Section 5(b) or for Disability under Section 5(c), I will only
receive the special benefits provided under the applicable provisions of Section
5(a) if I sign a mutual release form, subject to negotiation as provided below,
within 30 days after I receive the release from the Company and before asserting
any claims covered by the release against the Company other than claims
pertaining to (i) my right to severance benefits, (ii) the Company's continuing
indemnification obligations to me under Section 4, and (iii) claims for
defamation, slander and/or libel. The Company shall furnish the release to me at
my termination. Subject to the exceptions in clauses (i) through (iii) of the
second preceding sentence, the parties shall in good faith negotiate the final
form of such release, but it shall include any provision customary in formal
settlement agreements and general releases, including such things as the
Company's release of all claims against me other than my continuing obligations
under Section 5(i) and the claims that the Company has

                                       10
<PAGE>

asserted no later than 30 days after my termination of employment, my release of
the Company and all conceivably related persons or entities (affiliates) from
all known and unknown claims, my covenant never in the future to pursue any
released claim, my promise never seek employment with the Company or any
affiliate in the future, but not including any provision that expands my
obligations to the Company under Section 5(i). The Company and I acknowledge
that the severance benefits for which the release is required are intended to
effect my peaceful transition from the Company. If I choose not to sign the
release, I shall have the right to pursue any claims I may have, but I shall not
be eligible to receive the severance benefits that I would have otherwise
received had I signed this release.

                  (e)      RESIGNATION FOR GOOD REASON. I may resign my
employment for Good Reason, which shall mean the occurrence of any of the
following without my express written consent:

                           (i)      Relocation of my primary office location
more than 50 miles from the current location, as set forth in section 3;

                           (ii)     Any change in my reporting relationship as
set forth in section 2;

                           (iii)    Any diminution in title, or material
diminution in overall compensation or duties;

                           (iv)     Material failure by the Company to keep any
promise or make any payment provided herein;

                           (v)      Change in Control as defined in Section 7
below;

                           (vi)     Any transfer to any subsidiary or affiliate
or other change that removes me from the position of Chief Executive and
President of the parent company;

                           (vii)    Failure by the Company to continue, or
continue my participation in, any compensation or benefit plan in which I
participate or am entitled to participate that materially affects my total
compensation, unless an equivalent substitute is adopted or made available on a
basis not less favorable to me and my spouse;

                  However, an event that is or would constitute Good Reason
shall cease to be Good Reason if: (i) I do not provide the Company with written
notice of my intent to terminate my employment due to an event that would
constitute Good Reason within the earlier of 30 days after the occurrence of
such event or 30 days after I am officially notified or it is officially
announced that the Company will take any actions that would constitute Good
Reason to resign, (ii) the Company reverses the action or cures the default that
constitutes Good Reason within 30 days after receiving such written notice,

                                       11
<PAGE>

(iii) I do not terminate employment within 60 days after the event occurs, (iv)
I am a primary instigator of the Good Reason event other than a Change in
Control and the circumstances make it inappropriate for me to receive benefits
under this Agreement (e.g., I initiate a relocation of the Company's
headquarters); or (v) if the company in good faith temporarily suspends me for
no more than 30 days (with full pay) to investigate any suspected wrongdoing
that, if substantiated, would give the Company reason to terminate me for Cause.

                  (f)      RESIGNATION OTHER THAN FOR GOOD REASON. I may
terminate my employment hereunder at any time without good reason upon providing
the Company with 30 days written notice of my intention to do so, but the
Company shall be entitled to accept my resignation as of any earlier date and my
termination, in such event, I shall only be eligible to receive the benefits in
Section 5(a) under the subsection "Resignation Without Good Reason."
Notwithstanding anything to the contrary in this Agreement or any other
document, restricted stock, options and all other incentive compensation shall
cease vesting when I give such notice.

                  (g)      DEATH. If I die while employed under this Agreement,
the payments required by Section 5(a) in the event of my death shall be made.

                  (h)      AMOUNTS OWED TO THE COMPANY. Any amounts payable to
me under this section shall first be applied to repay any liquidated amounts I
owe the Company (i.e., personal expenses on my credit card).

                  (i)      NO FURTHER OBLIGATIONS. The Company and I shall have
no further obligations to each other, except the Company's ongoing
indemnification obligation under Section 4, my confidentiality, etc. obligations
under Section 6, and our mutual arbitration obligations under Section 8, or as
set forth in any written agreement I subsequently enter into with the Company.

         6.       CONFIDENTIALITY. I acknowledge that I currently possess or
will acquire secret, confidential, or proprietary information or trade secrets
concerning the operations, future plans, customers or business methods of the
Group (Confidential Information).

                  (a)      PROMISE NOT TO DISCLOSE. I promise never to use or
disclose any Confidential Information before it has become generally known
within the relevant industry through no fault of my own. I agree that this
promise shall never expire.

                  (b)      PROMISE NOT TO SOLICIT. I further agree that, while
this Agreement is in effect and for 6 months after termination, I will not
solicit or attempt to solicit (or assist others to solicit) for employment any
person who is, or within the preceding 6 months was, an officer, manager, or
employee of the Group.

                                       12
<PAGE>

                  (c)      PROMISE NOT TO ENGAGE IN CERTAIN EMPLOYMENT. I agree
that, while this Agreement is in effect and for 6 months after termination, I
will not accept any employment or engage in any activity, without the written
consent of the Chairman of the Board if the loyal and complete fulfillment of my
duties would inevitably require me to reveal or utilize Confidential
Information, as reasonably determined by the Chairman of the Board.

                  (d)      RETURN OF INFORMATION. When my employment with the
Company ends, I will promptly deliver to the Company, or, at its written
instruction, destroy, all documents, data, drawings, manuals, letters, notes,
reports, electronic mail, recordings, and copies thereof, of or pertaining to it
or any other Group member in my possession or control. In addition, during my
employment with the Company or the Group and thereafter, I agree to meet with
Company personnel and, based on knowledge or insights I gained during my
employment with the Company and the Group, answer any question they may have
related to the Company or the Group. The Company shall pay me for attending such
meetings at a rate not less than the hourly equivalent of my base salary, plus
reimbursement of reasonable expenses in accordance with the Company's
reimbursement policy for senior executives.

                  (e)      PROMISE TO DISCUSS PROPOSED ACTIONS IN ADVANCE. I
promise that, before I disclose or use Confidential Information and before I
commence employment, solicitations, or any other activity that could possibly
violate the promises I have just made, I will discuss my proposed actions with
the Chairman of the Board, who will advise me in writing whether my proposed
actions would violate these promises.

                  (f)      INTELLECTUAL PROPERTY. Intellectual property
(including such things as all inventions, plans, developments, software, data,
configurations, materials (whether written or machine-readable), designs,
drawings, illustrations, and photographs, that may be protectable, in whole or
in part, under any patent, copyright, trademark, trade secret, or other
intellectual property law), developed, created, conceived, made, or reduced to
practice during my Company employment (except intellectual property that has no
relation to the Group or any Group customer that I developed, purely on my own
time and at my own expense), shall be the sole and exclusive property of the
Company, and I hereby assign all my rights, title, and interest in any such
intellectual property to the Company.

         7.       CHANGE IN CONTROL.

                           (i)      EVENTS TRIGGERING CHANGE IN CONTROL. Change
in Control shall mean the first of the following to occur after the date of this
Agreement, excluding any event that is Management Action, and, if I have not yet
become entitled to severance benefits under Section 7, excluding any event that
is subsequently rescinded, revoked, abandoned, or enjoined:

                                       13
<PAGE>

                                    (1)      Acquisition of Controlling
Interest. Any Person becomes the Beneficial Owner, directly or indirectly, of
securities of the Company representing 51 percent or more of the combined voting
power of the Company's then outstanding securities, except that a voting
agreement or other voting activity shall not make the Person a Beneficial Owner
unless the voting activity in question is intended to accomplish a Change in
Control under Sections 7(d)(i)(2), (3), or (4). In applying the preceding
sentence, securities acquired directly from the Company or its affiliates by or
for the Person shall not be taken into account.

                                    (2)      Change in Board Control. During a
consecutive 2-year period commencing after the date of this Agreement,
individuals who constituted the Board at the beginning of the period cease for
any reason to constitute a majority of the Board. A new director shall be
considered an "approved replacement" director if his or her election (or
nomination for election) was approved by a vote of at least two-thirds of the
directors then still in office who either were directors at the beginning of the
period or were themselves approved replacement directors.

                                    (3)      Merger Approved. The shareholders
of the Company approve a merger or consolidation of the Company with any other
corporation unless: (a) the voting securities of the Company outstanding
immediately before the merger or consolidation would continue to represent
(either by remaining outstanding or by being converted into voting securities of
the surviving entity) at least 51 percent of the combined voting power of the
voting securities of the Company or such surviving entity outstanding
immediately after such merger or consolidation.

                                    (4)      Sale of Assets. The shareholders of
the Company approve an agreement for the sale or disposition by the Company of
all or substantially all of the Company's assets in a transaction or series of
transactions to an entity that is not owned, directly or indirectly, by the
Company's Common Stock shareholders in substantially the same proportions as the
owners of the Company's Common Stock before such transaction or series of
transactions.

                  Notwithstanding the foregoing, a Change in Control shall not
be deemed to have occurred by virtue of the consummation of any transaction or
series of integrated transactions immediately following which the record holders
of Common Stock immediately prior to such transaction or series of transactions
continue to have substantially the same proportionate ownership in an entity
which owns all or substantially all of the assets of the Company immediately
following such transaction or series of transactions.

                           (b)      CERTAIN DEFINITIONS.

                                    (i)      "Beneficial Owner" has the meaning
set forth in Rule 13d-3 under the Securities Exchange Act of 1934, as amended."

                                       14
<PAGE>

                                    (ii)     Management Action" means any event,
circumstance, or transaction that results from the action of the Management
Group.

                                    (iii)    "Management Group" means any entity
or group that includes, is affiliated with, or is wholly or partly controlled by
one or more executive officers of the Company.

                                    (iv)     "Person" has the meaning given in
Section 3(a)(9) of the Securities Exchange Act of 1934, as amended, and as
modified and used in Section 13(d) of that Act, and shall include a "group," as
defined in Rule 13d-5 promulgated thereunder. However, a Person shall not
include: (i) the Company or any of its subsidiaries, (ii) a trustee or other
fiduciary holding securities under an employee benefit plan of the Company or
any of its subsidiaries, (iii) an underwriter temporarily holding securities
pursuant to an offering of such securities, (iv) Oaktree Capital Management,
LLC, (v) the Blackstone Group, or (vi) a corporation owned, directly or
indirectly, by the stockholders of the Company in substantially the same
proportions as their ownership of stock of the Company.

         8.       NOTICE.

                  (a)      TO THE COMPANY. I will send all communications
required by this Agreement to the Company in writing by hand delivery or
overnight, both requiring signature acknowledging receipt, addressed as follows:

        If Mailed or Faxed  Lodgian Inc.
                            Attention: Daniel Ellis, Senior Vice President and
                            General Counsel
                            3445 Peachtree Road NE, Suite 700
                            Atlanta, Georgia 30326

        With a copy to      Lodgian Inc.
                            Attention: Chairman of the Board
                            3445 Peachtree Road NE, Suite 700
                            Atlanta, Georgia 30326

                  (b)      TO ME. All communications required by this Agreement
from the Company to me relating to this Agreement must be sent to me in writing
by hand delivery or overnight, both requiring my signature acknowledging receipt
at 3286 Northside Parkway, Apartment 801, Atlanta, Georgia, 30327; with a copy
to Nancy E. Rafuse at Ashe & Rafuse, LLP, 1355 Peachtree Street, Suite 500,
Atlanta, Georgia 30309, also by hand delivery or overnight, requiring signature
acknowledging receipt by her or her representative.

                                       15
<PAGE>

                  (c)      TIME NOTICE DEEMED GIVEN. Written notice as required
by this Agreement shall be deemed to have been given to either party when signed
by such party or its representative acknowledging receipt.

         9.       ARBITRATION OF DISPUTES. All disputes between the Company and
me are to be resolved by final and binding arbitration in accordance with the
separate Arbitration Agreement attached as Schedule 1 to this Agreement. This
section shall remain in effect after the termination of this Agreement.

         10.      GOLDEN PARACHUTE LIMITATION. I agree that my payments and
benefits under this Agreement and all other contracts, arrangements, or programs
shall not, in the aggregate, exceed the maximum amount that may be paid to me
without triggering golden parachute penalties under Section 280G and related
provisions of the Internal Revenue Code, as determined in good faith by the
Company's independent auditors. If any benefits must be cut back to avoid
triggering such penalties, my benefits shall be cut back in the priority order
designated by the Company but in no event may the payment in Section 4(a) be
reduced. Any payment cut back must still be paid, but may be paid over the
shortest period of time or in a method so as not to trigger golden parachute
penalties. The Company and I agree to cooperate with each other in connection
with any administrative or judicial proceedings concerning the existence or
amount of golden parachute penalties with respect to payments or benefits I
receive.

         11.      AMENDMENT. No provisions of this Agreement may be modified,
waived, or discharged except by a written document signed by the Chairman of the
Board and me. Thus, for example, promotions, commendations, and/or bonuses shall
not, by themselves, modify, amend, or extend this Agreement. A waiver of any
conditions or provisions of this Agreement in a given instance shall not be
deemed a waiver of such conditions or provisions at any other time.

         12.      INTERPRETATION; EXCLUSIVE FORUM. The validity, interpretation,
construction, and performance of this Agreement shall be governed by the laws of
the state of Georgia (excluding any that mandate the use of another
jurisdiction's laws). Any litigation, arbitration, or similar proceeding with
respect to such matters only may be brought within that state, and all parties
to this Agreement consent to that state's jurisdiction and agree that venue
anywhere in that state would be proper.

         13.      SUCCESSORS. This Agreement shall be binding upon, and shall
inure to the benefit of, me and my estate, but I may not assign or pledge this
Agreement or any rights arising under it, except to the extent permitted under
the terms of the benefit plans in which I participate. Without my consent, the
Company may not assign this Agreement to a successor that agrees in writing to
be bound by this Agreement, after which any reference to the "Company" in this
Agreement shall be deemed to be a reference to the successor. Thereafter, the
Company shall have no further primary, secondary or other responsibilities or
liabilities under this Agreement of any kind.

                                       16
<PAGE>

         14.      TAXES. The Company shall withhold taxes from payments it makes
pursuant to this Agreement as it determines to be required by applicable law.

         15.      VALIDITY. The invalidity or unenforceability of any provision
of this Agreement shall not affect the validity or enforceability of any other
provision of this Agreement, which shall remain in full force and effect.

         16.      COUNTERPARTS. This Agreement may be executed in one or more
counterparts, each of which shall be deemed to be an original but all of which
together shall constitute the same instrument.

         17.      ENTIRE AGREEMENT. All oral or written agreements or
representations, express or implied, with respect to the subject matter of this
Agreement are set forth in this Agreement. However, this Agreement does not
override other written agreements I have executed relating to specific aspects
of my employment, such as conflicts of interest.

         18.      FORMER EMPLOYERS. I am not subject to any employment,
confidentiality, or other agreement or restriction that would prevent me from
fully satisfying my duties under this Agreement or that would be violated if I
did so. Without the Company's prior written approval, I promise I will not
disclose proprietary information belonging to a former employer or other entity
without its written permission.

I will indemnify and hold the Company harmless from any liabilities, including
defense costs, it may incur because I am alleged to have broken the promises in
this section 18 or improperly revealed or used proprietary information of a
former employer without its permission, or if a former employer challenges my
entering into this Agreement or rendering services pursuant to it.

                                       17
<PAGE>

I ACKNOWLEDGE THAT ALL UNDERSTANDINGS AND AGREEMENTS BETWEEN THE COMPANY AND ME
RELATING TO THE SUBJECTS COVERED IN THIS AGREEMENT ARE CONTAINED IN IT AND THAT
I HAVE ENTERED INTO THIS AGREEMENT VOLUNTARILY AND NOT IN RELIANCE ON ANY
PROMISES OR REPRESENTATIONS BY THE COMPANY OTHER THAN THOSE CONTAINED IN THIS
AGREEMENT ITSELF.

I FURTHER ACKNOWLEDGE THAT I HAVE CAREFULLY READ THIS AGREEMENT, THAT I
UNDERSTAND ALL OF IT, AND THAT I HAVE BEEN GIVEN THE OPPORTUNITY TO DISCUSS THIS
AGREEMENT WITH MY PRIVATE LEGAL COUNSEL AND HAVE AVAILED MYSELF OF THAT
OPPORTUNITY TO THE EXTENT I WISHED TO DO SO. I UNDERSTAND THAT BY SIGNING THIS
AGREEMENT I AM GIVING UP MY RIGHT TO A JURY TRIAL.

Date:  December 18, 2003                     Lodgian, Inc.

                                             By: /s/ Daniel E. Ellis
                                                 -------------------------------
                                             Name:    Daniel E. Ellis
                                                      --------------------------
                                             Title:   Senior Vice President and
                                                      --------------------------
                                                      General Counsel
                                                      --------------------------

Date:  December 18, 2003

                                             /s/ W. Thomas Parrington
                                             -----------------------------------
                                             W. Thomas Parrington

                                       18

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