Document:

<PAGE>

                                                                 EXHIBIT 10.27.2

                             FORM OF PROMISSORY NOTE

$_____________                                                    JUNE ___, 2004

      FOR VALUE RECEIVED, the undersigned, each having an address at c/o
Lodgian, 3445 Peachtree Road NE, Suite 700, Atlanta, Georgia 30326 (each, a
"Borrower" and, collectively, the "Borrowers"), jointly and severally, promise
to pay to the order of MERRILL LYNCH MORTGAGE LENDING, INC., a Delaware
corporation (together with its successors and assigns, "Lender"), having an
address at Four World Financial Center, New York, New York 10080, or such other
place as Lender may designate in writing, the principal sum of _______
_________________________________Dollars ($_____________), with interest on the
unpaid principal balance from the date of this Note, until paid, at the Interest
Rate (as hereinafter defined) in effect from time to time hereunder. This
Promissory Note may be referred to herein as the "Note," and the loan evidenced
hereby may be referred to herein as the "Loan."

      PAYMENTS OF PRINCIPAL AND INTEREST. The Borrowers shall make a payment on
the date hereof to Lender of interest only on the outstanding principal balance
of this Note at the Interest Rate (hereinafter defined), from the date hereof
through and including the last day of the calendar month in which this Note is
executed. Commencing on August 1, 2004 (the "First Payment Date") and on the
first day of each calendar month (each, a "Payment Date") thereafter to and
including the Maturity Date (hereinafter defined), the Borrowers shall make
payments to Lender of interest and principal in monthly installments in the
amounts set forth on Schedule 1 attached hereto and made a part hereof (the
"Monthly Debt Service Payment Amounts"). The entire outstanding principal
balance of the Loan, all accrued and unpaid interest thereon and all other
amounts due hereunder and under the other Loan Documents (collectively the
"Debt") if not sooner paid, shall be due and payable on July 1, 2009 (the
"Maturity Date").

      Interest on the principal sum of this Note shall be calculated on the
basis of a 360 day year, and shall be charged for the actual number of days
elapsed during any month or other accrual period. Interest on this Note shall be
payable in arrears.

      DEFINITIONS. The term "Interest Rate" as used in this Note shall have the
meaning set forth in Section 2.2 of the Loan Agreement (hereinafter defined).

      SECURITY; LOAN DOCUMENTS. This Note is being executed and delivered
pursuant to that certain Loan and Security Agreement, dated as of the date
hereof (the "Loan Agreement"), among the Borrowers and Lender and is secured by,
among other things, those certain Mortgages/Deeds of Trust/Deeds to Secure Debt,
Assignments of Leases and Rents and Security Agreements, each dated as of the
date hereof (collectively, the "Mortgages"), each executed by the applicable
Borrower, encumbering the fee interests or ground lessee's interests of such
Borrower, as applicable, in and to certain properties more particularly
described therein (collectively, the "Properties"). This Note, the Loan
Agreement, the Mortgages, and all other documents or instruments given by the
Borrowers or any of them or any guarantor and accepted by Lender for purposes of
evidencing, securing, perfecting, or guaranteeing the indebtedness evidenced by
this Note may be referred to as the "Loan Documents." Capitalized terms used but

<PAGE>

not otherwise defined herein shall have the respective meanings given thereto in
the Loan Agreement.

      DEFEASANCE.

      A. Notwithstanding anything to the contrary contained in this Note, the
Mortgages or the other Loan Documents, at any time after the earlier to occur of
(x) the second (2nd) anniversary of the date that is the "startup day," within
the meaning of Section 860G of the Internal Revenue Code of 1986, as amended
from time to time or any successor statute (the "Code"), of a "real estate
mortgage investment conduit," within the meaning of Section 860D of the Code,
that holds this Note and (y) forty-eight (48) months after the date of this
Note, the Borrowers shall have the right to defease all or any portion of the
Loan evidenced by this Note with U.S. Government Securities (a "Defeasance");
provided that a partial Defeasance of this Note shall be permitted only in
connection with the release of one or more of the Properties from the lien of
the Mortgages and the other Loan Documents in accordance with Section 11.4 of
the Loan Agreement and upon the satisfaction of the following conditions
precedent (all of which conditions shall become covenants upon occurrence of the
Defeasance):

            (i) The Borrowers shall provide to Lender not less than thirty (30)
days' prior written notice specifying the date on which the Defeasance Deposit
(hereinafter defined) is to be made (the date so specified may be referred to as
the "Defeasance Election Date").

            (ii) The Borrowers shall pay to Lender on the Defeasance Election
Date all interest accrued and unpaid on the outstanding principal amount of this
Note due through the Defeasance Election Date, or through the end of the
Interest Accrual Period during which the Defeasance Election Date occurs if the
Defeasance Election Date is other than a Payment Date, and the scheduled
principal amortization payment due on such Defeasance Election Date, or due upon
the next succeeding Payment Date if the Defeasance Election Date is other than a
Payment Date, together with all other amounts, if any, then due and payable
under this Note, the Mortgages and the other Loan Documents.

            (iii) The Borrowers shall irrevocably deposit with Lender an amount
of U.S. Government Securities (hereinafter defined) which through the scheduled
payment of principal and interest in respect thereof in accordance with their
terms will provide, not later than the due dates of the payments owing
hereunder, cash in an amount sufficient, without reinvestment, in the opinion of
a firm of independent certified public accountants reasonably acceptable to
Lender expressed in a written certification thereof delivered to Lender (the
"CPA Certificate"), (1) with respect to a total Defeasance, to pay and discharge
the Scheduled Defeasance Payments (hereinafter defined) for the principal
balance of this Note or (2) with respect to a partial Defeasance in connection
with the release of one or more Properties, to pay and discharge the Scheduled
Defeasance Payments relating to the Release Price for such Property or
Properties (the U.S. Government Securities so deposited together with any
interest or other increase from the issuer of the securities earned thereon, and
any replacements thereof, shall be referred to herein as the "Defeasance
Deposit"). All such U.S. Government Securities, if in registered form, shall be
registered in the name of Lender or its nominee (and, if registered in nominee's
name, endorsed to Lender or in blank) and, if issued in book-entry form, the
name of Lender or its

                                       2
<PAGE>

nominee shall appear as the owner of such securities on the books of the Federal
Reserve Bank or other party maintaining such book-entry system.

            (iv) The Borrowers shall cause the following to be delivered to
Lender on or prior to the Defeasance Election Date, all in form and substance
reasonably satisfactory to Lender:

                  (a) a security agreement, in form and substance reasonably
satisfactory to Lender, creating a first priority lien on the Defeasance Deposit
(the "Defeasance Security Agreement");

                  (b) the CPA Certificate;

                  (c) a certificate of the Borrowers certifying that all
requirements for the Defeasance set forth herein have been satisfied;

                  (d) an opinion of counsel for the Borrowers in form and
substance reasonably satisfactory to Lender to the effect that (i) Lender has a
perfected first priority security interest in the Defeasance Deposit, (ii) the
holder of this Note will not recognize additional income, gain or loss for
United States federal income tax purposes as a result of the Defeasance and will
be subject to United States federal income tax on the same amounts, in the same
manner and at the same times as would have been the case if the Defeasance had
not occurred, (iii) any holder, trustee or custodian of this Note which is a
"real estate mortgage investment conduit" within the meaning of Section 860D of
the Code will not fail to maintain its status as such as a result of the
Defeasance and (iv) the Defeasance Security Agreement is enforceable against the
Borrowers in accordance with its terms;

                  (e) evidence in writing from the applicable Rating Agencies
for any Securities backed in whole or in part by this Note, to the effect that
the Defeasance will not result in a downgrading, withdrawal, or qualification of
the ratings in effect immediately prior to such Defeasance for any class of such
then outstanding Securities;

                  (f) evidence reasonably satisfactory to Lender that each of
the Borrowers remains validly existing and in good standing under the laws of
the state where it is organized and, to the extent required by applicable law,
qualified to do business in the state where its respective Property is located;
and the Borrowers shall maintain such existence during the time thereafter when
this Note shall be outstanding (unless a Successor Borrower (hereinafter
defined) assumes the obligations of each of the Borrowers or the Defeasing
Borrower(s) (as hereinafter defined), as the case may be, under this Note); and

                  (g) a certificate of the Borrowers certifying that all of the
representations, and warranties contained in the Loan Agreement and the other
Loan Documents are true and correct in all material respects as of the
Defeasance Election Date and ratifying all of the covenants and obligations of
the Borrowers under the Loan Documents as of such date and such other
certificates, documents or instruments as Lender may reasonably request or as
may be required by the Rating Agencies referred to above, provided that such
certificates, documents or instruments shall not increase the Borrowers'
obligations or decrease the Borrowers' rights under the Loan Documents.

                                       3
<PAGE>

                  (v) Either (1) each of the Borrowers in the case of a total
Defeasance, or the Defeasing Borrower(s) in the case of a partial Defeasance
shall deliver to Lender a certificate stating that at all times following the
Defeasance, the Borrowers or the Defeasing Borrower(s), as the case may be,
shall have no interest in any assets other than the Defeasance Deposit, or (2)
such Borrower(s) shall satisfy all of the requirements of Section C below.

                  (vi) The Borrowers shall pay to Lender all reasonable
out-of-pocket costs and expenses (including, without limitation, reasonable
attorneys' fees and disbursements) incurred by Lender in connection with the
Defeasance.

                  (vii) In the event only a portion of the Loan evidenced by
this Note is the subject of the Defeasance in connection with the release of any
Lien of any applicable Mortgage on one or more individual Properties under
Section 11.4 of the Loan Agreement, the Borrowers shall execute and deliver all
necessary documents to amend and restate this Note and issue two substitute
promissory notes therefor: one note having a principal balance equal to the
defeased portion of the original Note (the "Defeased Note") and one note having
a principal balance equal to the undefeased portion of the original Note (the
"Undefeased Note"). The Defeased Note and the Undefeased Note shall have
identical terms as the original Note (and the Defeased Note and the Undefeased
Note or Notes shall be cross-defaulted with each other), except for the
principal balance. A Defeased Note cannot be the subject of any further
Defeasance. An Undefeased Note may be the subject of a further Defeasance in
accordance with the terms of this Note and the Loan Agreement (the term "Note",
as used above in this clause (vii) for these purposes, being deemed to refer to
the Undefeased Note that is the subject of further defeasance); provided,
however, that no such partial Defeasance shall take place unless the conditions
hereof and the conditions of Section 11.4 of the Loan Agreement are satisfied.

      B. Upon compliance with the requirements of Section A above and compliance
with the requirements of Section 11.4 of the Loan Agreement, Lender shall cause
each of the Properties, in the case of a total Defeasance, or each Defeased
Property (as hereinafter defined), in the case of a partial Defeasance, to be
released from the lien of the applicable Mortgages and the other applicable Loan
Documents. The obligations under the Loan Documents with respect to the
Properties or each Defeased Property, as the case may be, shall no longer be
applicable, and the Defeasance Deposit shall be the sole source of collateral
securing this Note or the Defeased Note, as the case may be. Lender shall apply
the Defeasance Deposit and the payments received therefrom to the payment of all
scheduled principal and interest payments due on all successive Payment Dates
under this Note or the Defeased Note, as the case may be, after the Defeasance
Election Date to and including the Maturity Date and to payment of the entire
remaining Debt or the entire remaining principal balance, accrued and unpaid
interest and other sums due under the Defeased Note, as the case may be, on the
Maturity Date (collectively, the "Scheduled Defeasance Payments"). The
Borrowers, pursuant to the Defeasance Security Agreement or other appropriate
document, shall direct that the payments received from the Defeasance Deposit
shall be made directly to Lender and applied to satisfy the obligations of the
Borrowers under this Note or the Defeased Note, as the case may be.

      C. If, after the Defeasance, the Borrowers, in the case of a total
Defeasance, or the Defeasing Borrower(s), in the case of a partial Defeasance,
will own any assets other than the Defeasance Deposit, the Borrowers or the
Defeasing Borrower(s), as the case may be, shall

                                       4
<PAGE>

establish or designate a single-purpose, bankruptcy-remote successor entity
acceptable to Lender (the "Successor Borrower"), with respect to which a
nonconsolidation opinion reasonably satisfactory in form and substance to Lender
and any applicable Rating Agencies shall be delivered to Lender and such Rating
Agencies, in which case the Borrowers or the Defeasing Borrower(s), as the case
may be, shall transfer and assign to the Successor Borrower all of their
respective obligations, rights and duties under this Note or the Defeased Note,
as the case may be, and the Defeasance Security Agreement, together with the
pledged Defeasance Deposit. The Successor Borrower shall assume the obligations
of the Borrowers or the Defeasing Borrower(s), as the case may be, under this
Note or the Defeased Note, as the case may be, and the Defeasance Security
Agreement, and such Borrower(s) shall be relieved and released of their
respective obligations hereunder and thereunder. Each of the Borrowers or the
applicable Defeasing Borrower(s), as the case may be, shall pay not less than
$1,000 to the Successor Borrower as consideration for assuming such Borrower's
obligations.

      D. As used herein, the following terms shall have the following meanings:

            (i) "Defeased Property" shall mean any Property being released from
the lien of the Mortgage relating to such Property pursuant to a partial
Defeasance in accordance with the provisions of this Note and Section 11.4 of
the Loan Agreement.

            (ii) "U.S. Government Securities" shall mean securities that are (i)
direct obligations of the United States of America for the full and timely
payment of which its full faith and credit is pledged or (ii) obligations of an
entity controlled or supervised by and acting as an agency or instrumentality
and guaranteed as a full faith and credit obligation which shall be fully and
timely paid by the United States of America, which in either case are not
callable or redeemable at the option of the issuer thereof (including a
depository receipt issued by a bank (as defined in Section 3(a)(2) of the United
States Securities Act)) as custodian with respect to any such U.S. Government
Securities or a specific payment of principal of or interest on any such U.S.
Government Securities held by such custodian for the account of the holder of
such depository receipt, provided that (except as required by law) such
custodian is not authorized to make any deduction from the amount payable to the
holder of such depository receipt from any amount received by the custodian in
respect of the securities or the specific payment of principal of or interest on
the securities evidenced by such depository receipt.

            (iii) "Defeasing Borrower" shall mean the Borrower owning or
leasing, as the case may be, a Defeased Property.

            (iv) "Release Price" shall have the meaning set forth in the Loan
Agreement.

      E. If, after payment in full of all obligations evidenced by this Note or
any other of the Loan Documents, any of the Defeasance Deposit remains, such
remaining balance of the Defeasance Deposit shall be returned to the Borrowers
(or to the Successor Borrower, as the case may be) or Lender shall assign to the
Borrowers (or the Successor Borrower, as the case may be) all of Lender's right,
title, and interest in the Government Securities constituting the Defeasance
Deposit.

                                       5
<PAGE>

      PREPAYMENT; PREPAYMENT CONSIDERATION. The Borrowers may not prepay this
Note in whole or in part at any time except as expressly provided in Section 2.6
of the Loan Agreement.

      EVENTS OF DEFAULT; ACCELERATION. Upon and at any time following the
occurrence of any Event of Default, then at the option of Lender and without
notice, the entire principal amount and all interest accrued and outstanding
hereunder and all other amounts outstanding under any of the Loan Documents
shall at once become due and payable, and Lender may exercise any and all of its
rights and remedies under any of the Loan Documents or pursuant to applicable
law. Lender may so accelerate such obligations and exercise such remedies at any
time after the occurrence of any Event of Default, regardless of any prior
forbearance.

      LATE CHARGES; DEFAULT INTEREST. If an Event of Default relating to
non-payment of any principal, interest or other sums due under this Note or
under any of the other Loan Documents shall occur, then the Borrowers shall pay
to Lender, in addition to all sums otherwise due and payable, a late fee in an
amount equal to five percent (5.0%) of such principal, interest or other sums
due hereunder or under any other Loan Document (or, in the case of a partial
payment, the unpaid portion thereof), such late charge to be immediately due and
payable without demand by Lender.

      Upon the occurrence and during the continuance of an Event of Default and
in any event from and after the Maturity Date of the Loan, the outstanding
principal balance of this Note shall bear interest until paid in full at a rate
per annum (the "Default Rate") equal to the sum of (i) four percent (4.0%) and
(ii) the Interest Rate otherwise applicable under this Note.

      The Borrowers agree that such late charges and Default Rate of interest
are reasonable and do not constitute a penalty.

      LAWFUL INTEREST. Notwithstanding any provision to the contrary contained
in this Note, the Loan Agreement or the other Loan Documents, the Borrowers
shall not be required to pay, and Lender shall not be permitted to collect, any
amount of interest in excess of the maximum amount of interest permitted by law
("Excess Interest"). If any Excess Interest is provided for or determined by a
court of competent jurisdiction to have been provided for in this Note, the Loan
Agreement or in any of the other Loan Documents, then in such event: (1) the
provisions of this subsection shall govern and control; (2) the Borrowers shall
not be obligated to pay any Excess Interest; (3) any Excess Interest that Lender
may have received hereunder shall be, at Lender's option, (a) applied as a
credit against either or both of the outstanding principal balance of the Loan
or accrued and unpaid interest thereunder (not to exceed the maximum amount
permitted by law), (b) refunded to the payor thereof, or (c) any combination of
the foregoing; (4) the interest rate(s) provided for herein shall be
automatically reduced to the maximum lawful rate allowed from time to time under
applicable law (the "Maximum Rate"), and this Note, the Loan Agreement and the
other Loan Documents shall be deemed to have been and shall be, reformed and
modified to reflect such reduction; and (5) the Borrowers shall not have any
action against Lender for any damages arising out of the payment or collection
of any Excess Interest. Notwithstanding the foregoing, if for any period of time
interest on any Obligation is calculated at the Maximum Rate rather than the
applicable rate under this Note or the Loan Agreement, and thereafter such
applicable rate becomes less than the Maximum Rate,

                                       6
<PAGE>

the rate of interest payable on such Obligations shall, to the extent permitted
by law, remain at the Maximum Rate until Lender shall have received or accrued
the amount of interest which Lender would have received or accrued during such
period on Obligations had the rate of interest not been limited to the Maximum
Rate during such period. If the Default Rate shall be finally determined to be
unlawful, then the applicable Interest Rate shall be applicable during any time
when the Default Rate would have been applicable hereunder, provided however
that if the Maximum Rate is greater or lesser than the applicable Interest Rate,
then the foregoing provisions of this paragraph shall apply.

      CERTAIN RIGHTS AND WAIVERS. From time to time, without affecting the
obligation of the Borrowers or their successors or assigns to pay the
outstanding principal balance of this Note, interest thereon and other amounts
due hereunder and to observe the covenants contained herein, in the Loan
Agreement, the Mortgages or in any other Loan Document, without affecting the
guaranty of any person or entity for payment of the outstanding principal
balance of this Note, without giving notice to or obtaining the consent of any
Borrower or its successors or assigns or any guarantors or indemnitor, and
without liability on the part of Lender, Lender may, at its option, extend the
time for payment of the outstanding principal balance of this Note or any part
thereof, reduce the payments thereon, release anyone liable for payment of all
or a portion of said indebtedness, accept a renewal of this Note, modify the
terms and time of payment of said outstanding principal balance, join in any
extension or subordination agreement, release any security given herefor, take
or release other or additional security, and agree in writing with the
undersigned to modify the rate of interest or period of amortization of this
Note or change the amount of the monthly installments payable hereunder.

      Presentment, notice of dishonor, and protest are hereby waived by the
Borrowers and all makers, sureties, guarantors and endorsers hereof. This Note
shall be binding upon the Borrowers and their successors and assigns.

      EACH BORROWER AND LENDER HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY
WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT TO ANY LITIGATION
BASED HEREON, OR ARISING OUT OF, UNDER OR IN CONJUNCTION WITH THIS NOTE, THE
INSTRUMENTS, ANY OTHER LOAN DOCUMENT, ANY OTHER AGREEMENT CONTEMPLATED TO BE
EXECUTED IN CONNECTION HEREWITH, OR ANY COURSE OF CONDUCT, COURSE OF DEALING,
STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF ANY PARTY.

      ASSIGNMENT AND TRANSFER OF NOTE. Subject to the provisions of the Loan
Agreement, Lender shall have the right to assign or transfer, in whole or in
part (including the right to grant participation interests in) any or all of its
obligations under this Note, the Loan Agreement, the Mortgages and any or all of
the other Loan Documents. Lender shall be released of any obligations to the
extent that the same are so assigned or transferred, and the rights and
obligations of "Lender" hereunder shall become the rights and obligations of the
transferee holder.

      LIMITATION ON RECOURSE. Lender's rights of recourse for the obligations of
the Borrowers hereunder are limited in accordance with Article XII of the Loan
Agreement. This

                                       7
<PAGE>

provision shall not limit any rights of Lender under the Guaranty of Recourse
Obligations or the Environmental Indemnity, each dated as of the date hereof.

      ATTORNEYS' FEES, COSTS OF COLLECTION. The Borrowers shall pay to Lender on
demand all out-of-pocket costs and expenses, including reasonable attorneys'
fees and expenses, incurred by Lender in collecting the indebtedness arising
hereunder or under any other Loan Documents or secured thereby or otherwise
exercising any rights or remedies of Lender hereunder or thereunder or at law or
in equity or enforcing the obligations of any parties hereto or thereto, or as a
consequence of any breach or default by any Borrower or any guarantor hereunder
or thereunder, or otherwise as a consequence of any right evidenced or secured
by this Note or the Loan Documents. Without limitation, such costs and expenses
to be reimbursed by the Borrowers shall include reasonable attorneys' fees and
expenses incurred in any bankruptcy case or proceeding and in any appeal.

      APPLICABLE LAW. This Note shall be governed by and construed in accordance
with the laws of the State of New York and applicable federal law.

      TIME OF ESSENCE. Time shall be of the essence as to all of the terms,
covenants and conditions of this Note. If the due date of any payment due
hereunder or under any of the other Loan Documents shall fall on a day other
than a Business Day, the Borrowers shall be required to make such payment on the
next succeeding Business Day.

      JOINT AND SEVERAL OBLIGATIONS. The obligations and liabilities of the
Borrowers hereunder shall be joint and several.

                        [NO ADDITIONAL TEXT ON THIS PAGE]

                                       8
<PAGE>

      IN WITNESS WHEREOF, the undersigned has executed this Promissory Note as
of the date first written above.

                        BORROWERS:

                        [LODGIAN ENTITIES]

                        By:____________________________________
                            Name: Daniel E. Ellis
                            Title: Vice President and Secretary, or
                                   Authorized Signatory

<PAGE>

                                   SCHEDULE 1

                      MONTHLY DEBT SERVICE PAYMENT AMOUNTS<PAGE>

                                                                 EXHIBIT 10.27.3

                    FORM OF GUARANTY OF RECOURSE OBLIGATIONS

            This GUARANTY OF RECOURSE OBLIGATIONS (this "GUARANTY"), dated as of
June __, 2004, made by LODGIAN, INC., a Delaware corporation ("GUARANTOR"),
having an address at 3445 Peachtree Road, NE, Suite 700, Atlanta, Georgia 30326,
in favor of MERRILL LYNCH MORTGAGE LENDING, INC., a Delaware corporation, having
an office at Four World Financial Center, New York, New York 10080 (together
with its successors, transferees and assigns, "LENDER").

                                R E C I T A L S:

            A. Pursuant to that certain Loan and Security Agreement, dated as of
the date hereof (as the same may be amended, modified, supplemented or restated
from time to time, the "LOAN AGREEMENT"), among the Borrowers named therein
(each, a "BORROWER", and collectively, "BORROWERS"), and Lender, Lender has
agreed to make a loan to Borrowers in the aggregate original principal amount of
up to **[_____________________]** (the "LOAN"), subject to the terms and
conditions of the Loan Agreement;

            B. As a condition to Lender's making the Loan, Lender is requiring
that Guarantor execute and deliver to Lender this Guaranty; and

            C. Guarantor hereby acknowledges that Guarantor holds a direct
and/or indirect ownership interest in each Borrower and that Guarantor will
materially benefit from Lender's agreeing to make the Loan.

            NOW, THEREFORE, in consideration of the premises set forth herein
and as an inducement for and in consideration of the agreement of Lender to make
the Loan pursuant to the Loan Agreement and the other Loan Documents, Guarantor
hereby agrees, covenants, represents and warrants to Lender as follows:

            SECTION 1. DEFINITIONS. All capitalized terms used and not defined
herein shall have the respective meanings given such terms in the Loan
Agreement.

            SECTION 2. GUARANTY.

            (a) Guarantor (but not its members, partners, employees,
shareholders, agents, directors or officers) hereby irrevocably, absolutely and
unconditionally assumes liability for, guarantees payment to Lender of, and
agrees to pay, protect, defend, indemnify and save harmless Lender from and
against any and all Guaranteed Recourse Obligations of Borrowers (as hereinafter
defined).

The obligations which are the subject of the guaranty referred to in this
Section 2 are hereinafter collectively referred to as the "GUARANTEED
OBLIGATIONS".

<PAGE>

            (b) The term "GUARANTEED RECOURSE OBLIGATIONS OF BORROWERS" as used
in this Guaranty shall mean all obligations and liabilities of Borrowers for
which Borrowers shall be personally liable under the provisions of Section 12.2
of the Loan Agreement.

            (c) All sums payable to Lender under this Guaranty shall be payable
on demand and without reduction for any offset, claim, counterclaim or defense.

            SECTION 3. REPRESENTATIONS AND WARRANTIES. Guarantor hereby
represents and warrants to Lender as follows (which representations and
warranties shall be given as of the date hereof and shall survive the execution
and delivery of this Guaranty):

            (a) DUE EXECUTION. This Guaranty has been duly executed and
delivered by Guarantor.

            (b) ENFORCEABILITY. This Guaranty constitutes a legal, valid and
binding obligation of Guarantor, enforceable against Guarantor in accordance
with its terms, except as enforceability may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the
enforcement of creditors' rights generally, or application of general principles
of equity in any legal proceeding.

            (c) NO VIOLATION. The execution, delivery and performance by
Guarantor of its obligations under this Guaranty do not violate any law,
regulation, order, writ, injunction or decree of any court or governmental body,
agency or other instrumentality applicable to Guarantor, or result in a breach
of any of the terms, conditions or provisions of, or constitute a default under,
or result in the creation or imposition of any mortgage, lien, charge or
encumbrance of any nature whatsoever upon any of the assets of Guarantor
pursuant to the terms of any mortgage, indenture, agreement or instrument to
which Guarantor is a party or by which it or any of its properties is bound.
Guarantor is not in default under any other guaranty which it has provided to
Lender.

            (d) NO LITIGATION. Except as disclosed on Schedule 4.9 to the Loan
Agreement, there are no actions, suits or proceedings at law or at equity,
pending or, to Guarantor's knowledge, threatened against or affecting Guarantor
or which involve or could reasonably be expected to involve the validity or
enforceability of this Guaranty or which might materially adversely affect the
financial condition of Guarantor or the ability of Guarantor to perform any of
its obligations under this Guaranty. Guarantor is not in default beyond any
applicable grace or cure period with respect to any order, writ, injunction,
decree or demand of any Governmental Authority which might materially adversely
affect the financial condition of Guarantor or the ability of Guarantor to
perform any of its obligations under this Guaranty.

            (e) CONSENTS. All consents, approvals, orders or authorizations of,
or registrations, declarations or filings with, all Governmental Authorities
(collectively, the "CONSENTS") that are required in connection with the valid
execution, delivery and performance by Guarantor of this Guaranty have been
obtained and Guarantor agrees that all Consents required in connection with the
carrying out or performance of any of Guarantor's obligations under this
Guaranty will be obtained when required.

            (f) FINANCIAL STATEMENTS AND OTHER INFORMATION. All financial
statements of Guarantor heretofore delivered to Lender fairly present the
financial condition of Guarantor as of

                                       2
<PAGE>

the respective dates thereof, and no materially adverse change has occurred in
the financial conditions reflected therein since the respective dates thereof.
None of the aforesaid financial statements or any certificate or statement
furnished to Lender by or on behalf of Guarantor in connection with the
transactions contemplated hereby, and none of the representations and warranties
in this Guaranty contains any untrue statement of a material fact or omits to
state a material fact necessary in order to make the statements contained
therein or herein not materially misleading. Guarantor is not insolvent within
the meaning of the Bankruptcy Code or any other applicable law, code or
regulation and the execution, delivery and performance of this Guaranty will not
render Guarantor insolvent.

            SECTION 4. FINANCIAL STATEMENTS. Guarantor hereby agrees for the
benefit of Lender that Guarantor will deliver to Lender each of the financial
statements required to be delivered pursuant to Section 5.1 of the Loan
Agreement.

            SECTION 5. INTENTIONALLY DELETED.

            SECTION 6. UNCONDITIONAL CHARACTER OF OBLIGATIONS OF GUARANTOR.

            (a) The obligations of Guarantor hereunder shall be irrevocable,
absolute and unconditional, irrespective of the validity, regularity or
enforceability, in whole or in part, of the Note, the Loan Agreement, the
Mortgages or the other Loan Documents or any provision thereof, or the absence
of any action to enforce the same, any waiver or consent with respect to any
provision thereof, the recovery of any judgment against any Borrower, Guarantor
or any other Person or any action to enforce the same, any failure or delay in
the enforcement of the obligations of Borrowers under the Note, the Loan
Agreement, the Mortgages or any other Loan Documents or Guarantor under this
Guaranty, or any setoff, counterclaim, and irrespective of any other
circumstances which might otherwise limit recourse against Guarantor by Lender
or constitute a legal or equitable discharge or defense of a guarantor or
surety. Lender may enforce the obligations of Guarantor under this Guaranty by a
proceeding at law, in equity or otherwise, independent of any loan foreclosure
or similar proceeding or any deficiency action against Borrowers or any other
Person at any time, either before or after an action against the Properties or
any of them or any part thereof, Borrowers or any other Person. THIS GUARANTY IS
A GUARANTY OF PAYMENT AND PERFORMANCE AND NOT MERELY A GUARANTY OF COLLECTION.
Guarantor waives diligence, notice of acceptance of this Guaranty, filing of
claims with any court, any proceeding to enforce any provision of the Note, the
Loan Agreement, the Mortgages or any other Loan Documents, against Guarantor,
Borrowers or any other Person, any right to require a proceeding first against
Borrowers or any other Person, or to exhaust any security (including, without
limitation, the Properties or any of them or any part thereof) for the
performance of the Guaranteed Obligations or any other obligations of Borrowers
or any other Person, or any protest, presentment, notice of default (except as
may be expressly required under the Loan Documents) or other notice or demand
whatsoever, and Guarantor hereby covenants and agrees that Guarantor shall not
be discharged of its obligations hereunder.

            (b) The obligations of Guarantor under this Guaranty, and the rights
of Lender to enforce the same by proceedings, whether by action at law, suit in
equity or otherwise, shall not be in any way affected by any of the following:

                                       3
<PAGE>

                  (i) any insolvency, bankruptcy, liquidation, reorganization,
      readjustment, composition, dissolution, receivership, conservatorship,
      winding up or other similar proceeding involving or affecting any
      Borrower, any Property or any part thereof, Guarantor or any other Person;

                  (ii) any failure by Lender or any other Person, whether or not
      without fault on its part, to perform or comply with any of the terms of
      the Loan Agreement, or any other Loan Documents, or any document or
      instrument relating thereto;

                  (iii) except (A) with respect to activities occurring after
      the date of a Permitted Assumption or, (B) activities relating to a
      Released Property after the date of a Release with respect thereto, the
      sale, transfer or conveyance of any Property or any interest therein to
      any Person, whether now or hereafter having or acquiring an interest in
      any Property or any interest therein and whether or not pursuant to any
      foreclosure, trustee sale or similar proceeding against any Borrower or
      any Property or any interest therein;

                  (iv) the conveyance to Lender, any Affiliate of Lender or
      Lender's nominee of any Property or any interest therein by a deed-in-lieu
      of foreclosure;

                  (v) the release of any Borrower or any other Person from the
      performance or observance of any of the agreements, covenants, terms or
      conditions contained in any of the Loan Documents by operation of law or
      otherwise;

                  (vi) the release in whole or in part of any collateral for any
      or all Guaranteed Obligations or for the Loan or any portion thereof; or

                  (vii) the exercise by Mezzanine Lender of any remedies made
      available to Mezzanine Lender pursuant to the terms of the Mezzanine Loan
      Documents, including, without limitation, foreclosure or similar remedies
      under any pledge agreement encumbering Mezzanine Borrower's interest in
      any General Partner, any Member, and/or any Borrower except with respect
      to actions taken by the Mezzanine Lender following the Mezzanine Lender
      succeeding to the interests of the Mezzanine Borrowers in and to the
      Borrowers.

            (c) Except as otherwise specifically provided in this Guaranty,
Guarantor hereby expressly and irrevocably waives all defenses in an action
brought by Lender to enforce this Guaranty based on claims of waiver, release,
surrender, alteration or compromise and all setoffs, reductions, or impairments,
whether arising hereunder or otherwise.

            (d) Lender may deal with Borrowers and Affiliates of Borrowers in
the same manner and as freely as if this Guaranty did not exist and shall be
entitled, among other things, to grant Borrowers or any other Person such
extension or extensions of time to perform any act or acts as may be deemed
advisable by Lender, at any time and from time to time, without terminating,
affecting or impairing the validity of this Guaranty or the obligations of
Guarantor hereunder.

            (e) No compromise, alteration, amendment, modification, extension,
renewal, release or other change of, or waiver, consent, delay, omission,
failure to act or other action with

                                       4
<PAGE>

respect to, any liability or obligation under or with respect to, or of any of
the terms, covenants or conditions of, the Note, the Loan Agreement, the
Mortgages or the other Loan Documents or any amendment, modification or other
change of any legal requirement shall in any way alter, impair or affect any of
the obligations of Guarantor hereunder, and Guarantor agrees that if any Loan
Documents are modified with Lender's consent, the Guaranteed Obligations shall
automatically be deemed modified to include such modifications.

            (f) Lender may proceed to protect and enforce any or all of its
rights under this Guaranty by suit in equity or action at law, whether for the
specific performance of any covenants or agreements contained in this Guaranty
or otherwise, or to take any action authorized or permitted under applicable
law, and shall be entitled to require and enforce the performance of all acts
and things required to be performed hereunder by Guarantor. Each and every
remedy of Lender shall, to the extent permitted by law, be cumulative and shall
be in addition to any other remedy given hereunder or now or hereafter existing
at law or in equity.

            (g) No waiver shall be deemed to have been made by Lender of any
rights hereunder unless the same shall be in writing and signed by Lender, and
any such waiver shall be a waiver only with respect to the specific matter
involved and shall in no way impair the rights of Lender or the obligations of
Guarantor to Lender in any other respect or at any other time.

            (h) At the option of Lender, Guarantor may be joined in any action
or proceeding commenced by Lender against Borrowers in connection with or based
upon the Note, the Loan Agreement, the Mortgages or any other Loan Documents and
recovery may be had against Guarantor in such action or proceeding or in any
independent action or proceeding against Guarantor to the extent of Guarantor's
liability hereunder, without any requirement that Lender first assert, prosecute
or exhaust any remedy or claim against Borrowers or any other Person, or any
security for the obligations of Borrowers or any other Person.

            (i) Guarantor agrees that this Guaranty shall continue to be
effective or shall be reinstated, as the case may be, if at any time any payment
is made by Borrowers or Guarantor to Lender and such payment is rescinded or
must otherwise be returned by Lender (as determined by Lender in its sole and
absolute discretion) upon insolvency, bankruptcy, liquidation, reorganization,
readjustment, composition, dissolution, receivership, conservatorship, winding
up or other similar proceeding involving or affecting any Borrower or Guarantor,
all as though such payment had not been made.

            (j) In the event that Guarantor shall advance or become obligated to
pay any sums under this Guaranty or in connection with the Guaranteed
Obligations or in the event that for any reason whatsoever any Borrower or any
subsequent owner of any Property or any part thereof is now, or shall hereafter
become, indebted to Guarantor, Guarantor agrees that (i) the amount of such sums
and of such indebtedness and all interest thereon shall at all times be
subordinate as to the lien, the time of payment and in all other respects to all
sums, including principal and interest and other amounts, at any time owed to
Lender under the Loan Documents, and (ii) Guarantor shall not be entitled to
enforce or receive payment thereof until all principal, interest and other sums
due pursuant to the Loan Documents have been paid in full. Nothing herein
contained is intended or shall be construed to give Guarantor any right of
subrogation in or under the Loan Documents or any right to participate in any
way therein, or in the right, title or interest of Lender

                                       5
<PAGE>

in or to any collateral for the Loan, notwithstanding any payments made by
Guarantor under this Guaranty, until the actual and irrevocable receipt by
Lender of payment in full of all principal, interest and other sums due with
respect to the Loan or otherwise payable under the Loan Documents. If any amount
shall be paid to Guarantor on account of such subrogation rights at any time
when any such sums due and owing to Lender shall not have been fully paid, such
amount shall be paid by Guarantor to Lender for credit and application against
such sums due and owing to Lender. The foregoing shall not prohibit Borrowers
from using the proceeds of the Loan for any permitted use under the Loan
Agreement, including, without limitation, the making of distributions to
Guarantor.

            (k) Guarantor's obligations hereunder shall survive a foreclosure,
delivery of a deed-in-lieu of foreclosure, the exercise of any power of sale or
similar proceeding involving any Property or any part thereof and the exercise
by Lender of any of all of its remedies pursuant to the Loan Documents.
Notwithstanding the foregoing to the contrary, the obligations and liabilities
of Guarantor under this Guaranty shall survive for a period of two (2) years
following payment in full of the Obligations in accordance with the terms of the
Loan Documents, provided, however, in the event that any Guaranteed Obligations
or liabilities of the Guarantor under this Guaranty shall have arisen prior to
the expiration of such period, then in any such event the foregoing survival
period shall not apply and the obligations and liabilities of Guarantor
hereunder shall survive.

            SECTION 7. ENTIRE AGREEMENT/AMENDMENTS. THIS INSTRUMENT REPRESENTS
THE ENTIRE AGREEMENT BETWEEN THE PARTIES WITH RESPECT TO THE SUBJECT MATTER
HEREOF. THE TERMS OF THIS GUARANTY SHALL NOT BE WAIVED, ALTERED, MODIFIED,
AMENDED, SUPPLEMENTED OR TERMINATED IN ANY MANNER WHATSOEVER EXCEPT BY WRITTEN
INSTRUMENT SIGNED BY LENDER AND GUARANTOR.

            SECTION 8. SUCCESSORS AND ASSIGNS. This Guaranty shall be binding
upon Guarantor, and its successors and assigns, may not be assigned or delegated
by Guarantor and shall inure to the benefit of Lender and its successors and
assigns. Lender shall have the right to assign this Guaranty and the obligations
hereunder in connection with any assignment or transfer of all or any portion of
the Loan or any interest therein. All references to "Lender" hereunder shall be
deemed to include the successors and assigns of Lender and the parties hereto
acknowledge that actions taken by Lender hereunder may be taken by Lender's
agents and by the agents of the successors and assigns of Lender.

            SECTION 9. APPLICABLE LAW AND CONSENT TO JURISDICTION. This Guaranty
shall be governed by, and construed in accordance with, the substantive laws of
the State of New York. Guarantor irrevocably (a) agrees that any suit, action or
other legal proceeding arising out of or relating to this Guaranty may be
brought in a court of record in the City and County of New York or in the Courts
of the United States of America located in the Southern District of New York,
(b) consents to the jurisdiction of each such court in any such suit, action or
proceeding and (c) waives any objection which it may have to the laying of venue
of any such suit, action or proceeding in any of such courts and any claim that
any such suit, action or proceeding has been brought in an inconvenient forum.
Guarantor irrevocably consents to the service of any and all process in any such
suit, action or proceeding by service of copies of such process to Guarantor at
its address set forth on the first page hereof. Nothing in this Section 9,
however, shall affect the right of

                                       6
<PAGE>

Lender to serve legal process in any other manner permitted by law or affect the
right of Lender to bring any suit, action or proceeding against Guarantor or its
property in the courts of any other jurisdictions.

            SECTION 10. SECTION HEADINGS. The headings of the sections and
paragraphs of this Guaranty have been inserted for convenience of reference only
and shall in no way define, modify, limit or amplify any of the terms or
provisions hereof.

            SECTION 11. SEVERABILITY. Any provision of this Guaranty which may
be determined by any competent authority to be prohibited or unenforceable in
any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining
provisions hereof, and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction. To the extent permitted by applicable law, Guarantor hereby
waives any provision of law which renders any provision hereof prohibited or
unenforceable in any respect.

            SECTION 12. WAIVER OF TRIAL BY JURY. EACH OF GUARANTOR AND LENDER
HEREBY WAIVES THE RIGHT OF TRIAL BY JURY IN ANY LITIGATION, ACTION OR PROCEEDING
ARISING HEREUNDER OR IN CONNECTION THEREWITH.

            SECTION 13. OTHER GUARANTIES; SINGULAR AND PLURAL; JOINT AND SEVERAL
LIABILITY.

            (a) The obligations of Guarantor hereunder are separate and distinct
from, and in addition to, the obligations of Guarantor now or hereafter arising
under the other guaranties pursuant to which Guarantor has guaranteed the
payment and performance of certain other obligations of Borrowers described
therein.

            (b) If there is more than one entity comprising Guarantor, all
references to Guarantor herein shall be to Guarantor (but not its members,
partners, employees, shareholders, agents, directors or officers) or any one or
more of them. All obligations and liabilities of Guarantor hereunder are in
addition to, not in lieu of and are independent of: (i) all obligations of
Borrowers under any other Loan Document, including the Note and the Loan
Agreement; and (ii) any obligation of Guarantor under any other Loan Document to
which Guarantor is a party.

            (c) If there is more than one entity comprising Guarantor, all
obligations of Guarantor hereunder shall be joint and several.

            SECTION 14. NOTICES. All notices, demands, requests, consents,
approvals or other communications required or permitted to be given hereunder to
Lender or Guarantor or which are given to Lender or Guarantor with respect to
this Guaranty shall be in writing and shall be delivered to Lender at the
address set forth in Section 14.5 of the Loan Agreement and to Guarantor at the
address set forth on the first page hereof, each in the manner provided in
Section 14.5 of the Loan Agreement. Guarantor agrees to give Lender not less
than ten (10) days' prior written notice of any change in the location of
Guarantor's principal place of business.

            SECTION 15. GUARANTOR'S RECEIPT OF LOAN DOCUMENTS. Guarantor by its
execution hereof acknowledges receipt of true copies of all of the Loan
Documents, the terms and conditions of which are hereby incorporated herein by
reference.

                                       7
<PAGE>

            SECTION 16. INTEREST; EXPENSES.

            (a) If Guarantor fails to pay all or any sums due hereunder within
ten (10) days of demand by Lender, the amount of such sums payable by Guarantor
to Lender shall bear interest from the date of demand until paid at the Default
Rate in effect from time to time.

            (b) Guarantor hereby agrees to pay all reasonable out of pocket
costs, charges and expenses, including, without limitation, reasonable
attorneys' fees and disbursements, that may be incurred by Lender in enforcing
the covenants, agreements, obligations and liabilities of Guarantor under this
Guaranty.

         [THE REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK]

                                       8
<PAGE>

            IN WITNESS WHEREOF, Guarantor has executed this Guaranty as of the
date first above written.

                                              GUARANTOR:

                                              LODGIAN, INC., a Delaware
                                              corporation

                                              By: ____________________________
                                                  Name: Daniel E. Ellis
                                                  Title: Senior Vice-President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00068-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00068-of-00352.parquet"}]]