Document:

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                                  EXHIBIT 10.10

                            STOCK PURCHASE AGREEMENT

         This STOCK PURCHASE AGREEMENT (the "Agreement") is made as of January
23, 2001, by and among Hollenshead Capital Management LLC, a Nevada limited
liability company (the "Purchaser"), BioSys, Inc., an Ohio corporation (the
"Company") and American Bio Medica Corporation, a New York corporation (the
"Shareholder").

         In consideration of the mutual promises, representations, warranties,
covenants and conditions set forth in this Agreement, the parties hereto agree
as follows:

         1.       Purchase and Sale of Common Stock; Purchase Price; Payment.

                  (a)      Purchase and Sale; Purchase Price. Subject to the
terms and conditions of this Agreement, the Purchaser shall purchase from the
Shareholder and the Shareholder shall sell, assign and transfer to the
Purchaser, at the Closing (as defined below) and as of the Closing Date (as
defined below), all right, title and interest of the Shareholder in and to the
57.57576 shares of common stock of the Company (the "Common Stock") held by the
Shareholder (the "Shares"), for an aggregate purchase price of Three Hundred
Eighty Thousand Dollars ($380,000) (the "Purchase Price").

                  (b)      Payment. At the Closing and on the Closing Date, the
Purchaser shall pay to the Shareholder the aggregate Purchase Price by certified
check, wire transfer or by other mutually agreeable manner.

         2.       Representations and Warranties of the Shareholder. The
Shareholder represents and warrants to the Purchaser on and as of the date
hereof and as of the Closing Date as follows:

                  (a)      Authorization of the Shareholder. The Shareholder has
full power and authority to execute and deliver this Agreement and to perform
its obligations hereunder. All action on the part of the Shareholder necessary
for the authorization, execution and delivery of this Agreement and for the
performance of all obligations of the Shareholder hereunder has been taken and
this Agreement constitutes valid and legally binding obligations of the
Shareholder, enforceable in accordance with its terms.

                  (b)      Issuance of and Title to Common Stock. The Common
Stock that is being purchased by the Purchaser hereunder is duly and validly
issued, fully paid, and nonassessable. The Shareholder is the record owner of,
and has good title to, the shares of Common Stock, free and clear of any liens,
claims, encumbrances, restrictions, agreements and defects of any kind or nature
whatsoever and, upon the sale and transfer by the Shareholder of its certificate
or certificates therefor to the Purchaser pursuant to this Agreement, the
Shareholder will confirm and vest in the Purchaser good and valid title to their
respective shares, free and clear of any and all claims, liens, charges,
encumbrances, restrictions, agreements and defects of any kind or nature
whatsoever.

                  (c)      Claims Against the Purchaser or the Company. The
Shareholder does not have any presently existing claim, demand, action or cause
of action, whether at law or in equity, whether accrued, contingent, fixed or
otherwise, which the Shareholder might hereafter attempt to assert against the
Purchaser or the Company or any of their respective attorneys, accountants,
parents, subsidiaries, affiliates, predecessors, officers, directors, employees
or stockholders, of any kind, character or description whatsoever, arising out
of, related to or in any manner connected with, either directly or indirectly,
their participation as an employee, director, officer or shareholder of the
Company, including but not limited (i) to any rights to purchase or receive
shares of Common Stock, (ii) presently existing claim or basis for a claim for
indemnification from the Company pursuant to the Company's articles of
incorporation or bylaws, or any agreement or law, or (iii) any loans or

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debt.

         3.       Representations and Warranties of the Company. The Company
represents and warrants to the Purchaser on and as of the date hereof and on and
as of the Closing Date as follows:

                  (a)      Organization of the Company. The Company is a
corporation duly organized, validly existing, and in good standing under the
laws of the State of Ohio and has all requisite corporate power and authority to
own and operate its properties and assets and to carry on its business as now
conducted and as proposed to be conducted. The Company is qualified to do
business in Ohio and Michigan.

                  (b)      Authorization of the Company. The Company has full
power and authority to execute and deliver this Agreement and to perform its
obligations hereunder. All action on the part of the Company necessary for the
authorization, execution and delivery of this Agreement and for the performance
of all obligations of the Company hereunder has been taken and this Agreement
constitutes valid and legally binding obligations of the Company, enforceable in
accordance with its terms.

                  (c)      Corporate Matters. The authorized shares of the
Company consists of 850 shares of Common Stock, of which 303.0303 shares have
been issued and are currently outstanding, and are owned by the shareholders in
the amounts listed on Schedule 3(c)(i). The directors and officers of the
Company are listed on Schedule 3(c)(ii). The Company does not own or control,
directly or indirectly, any interest in any other corporation, association, or
other business entity and the Company is not a participant in any joint venture,
partnership, or similar arrangement.

                  (d)      Options, Commitments, Agreements. Except for the
option granted to Peter Savarino whereby he has the right to acquire up to 1% of
the issued and outstanding shares of the Company, and other than rights held by
the Purchaser, there are no existing options, warrants, commitments or
agreements of any kind or nature whatsoever calling for or relating to the
issuance of the Common Stock or other securities of the Company, nor do there
exist any agreements, trusts or understandings relating to the voting,
redemption or transfer of Common Stock or other securities of the Company.

                  (e)      Intellectual Property.

                           (i)  The Company has good and marketable title to all
                  rights, title, and interest in and to all of the Company's
                  Intellectual Property (as defined below), and such
                  Intellectual Property is free and clear of any claims of
                  former or present employees, agents, consultants or
                  contractors or other persons or entities and is not subject to
                  any liens. The term "Intellectual Property" shall mean all
                  intellectual property rights, including, without limitation,
                  (i) all trademark and service mark registrations and
                  applications therefor and all trade names, trademarks and
                  service marks, whether or not registered or registrable; (ii)
                  the goodwill pertaining thereto; (iii) all copyrightable
                  works, all copyrights, and all applications, registrations,
                  and renewals in connection therewith, whether or not
                  registered; (iv) all inventions (whether patentable or
                  unpatentable and whether or not reduced to practice), all
                  improvements thereto, and all patents and pending patent
                  applications together with all reissuances, continuations,
                  continuations-in-part, revisions, extensions, and
                  reexaminations thereof; (v) all trade secrets and confidential
                  business information (including research and development,
                  know-how, formulas, compositions, manufacturing and production
                  processes and techniques, technical data, designs, drawings,
                  specifications, customer and supplier lists, pricing and cost
                  information, and business and marketing plans and proposals);
                  (vi) all proprietary know-how, computer programs and software,
                  and other related items and other data used in and related to
                  the Company's business; (vii) all trademark licenses, royalty
                  agreements, patent licenses and other licenses used in the
                  Company's business; (viii) all technology used in the
                  operation of the Company's business; and (ix) all causes of
                  action for infringement and/or misappropriation of the
                  foregoing, now existing or arising in the future. Set forth on
                  Schedule 3(e)(i) is a list of the Company's patents, patent
                  applications, trademark registrations, trademark applications,
                  copyright registrations, and copyright applications. All such
                  Intellectual Property is valid and enforceable and properly
                  applied for.

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                           (ii)  Except as set forth on Schedule 3(e)(ii), there
                  are no additional patents, patent applications, trademark
                  registrations, trademark applications, copyright registrations
                  or copyright applications owned by or registered in the name
                  of the Company. There are no licensing agreements with respect
                  to any Intellectual Property to which the Company is a party
                  either as a licensor or licensee which currently is used,
                  useful or necessary to operate the Company's business as now
                  being conducted. The operation of the Company's business,
                  including, but not limited to any products to be manufactured
                  and sold by the Company, and the use of the Intellectual
                  Property owned or licensed by the Company do not conflict with
                  or infringe upon third party-owned Intellectual Property.
                  There are no actions, suits, claims, demands, legal or
                  administrative proceedings, or governmental investigations or
                  any actions before any arbitrator, arbitrator panel or other
                  dispute resolution panel that has been served on the Company
                  or, to the best knowledge of the Company, threatened alleging
                  that the technology used in the operation of the Company's
                  business or the use of the Intellectual Property owned or
                  licensed by the Company conflicts with, is a misappropriation
                  of, or infringes upon third-party Intellectual Property. There
                  is no unauthorized use of the Company's Intellectual Property
                  by third-parties.

                           (iii) All present and former employees of and
                  consultants to the Company who have in any way participated in
                  the development of any Intellectual Property of the Company
                  were, at the time such work was performed, bound by written
                  agreements providing for assignment to the Company of all
                  ownership rights in any inventions and copyrightable subject
                  matters resulting from the work ("Invention Agreement"). The
                  forms of Invention Agreement are attached to Schedule
                  3(e)(iii), are enforceable and have not been challenged by any
                  of such employees or consultants.

                           (iv)  All rights, including, but not limited to
                  copyrights, in any and all computer software used by or in any
                  products contemplated to be sold by the Company are owned
                  exclusively by the Company.

                  (f)      Litigation and Investigations. There are no actions,
suits, legal or administrative proceedings or governmental investigations
pending or, to the best knowledge of the Company, threatened against or
affecting or relating to the Shares, the Company, its business or any of its
property or assets, nor any judgments, decrees, orders, rulings, writs or
injunctions specifically referring to the Shares or the Company.

                  (g)      Taxes. All tax returns, including, without
limitation, income, sales, employment and personal property tax returns,
required to be filed by the Company on or prior to the date hereof with the
United States or any state or any other governmental agency or authority have
been duly prepared and filed, and were true and correct and complete. The
Company has withheld and paid all taxes required to have been withheld and paid
in connection with amounts paid or owing to its employees, independent
contractors, creditors and shareholders, except for such taxes which are accrued
for periods after December 31, 2000. All taxes, penalties and interest due by
the Company have been paid. No shareholder, director or officer of the Company
or employee of the Company responsible for tax matters expects any authority to
assess any additional taxes for any period for which tax returns have been filed
or is aware of any basis therefor. There is no dispute or claim concerning any
tax liability of the Company either (i) claimed or raised by any authority in
writing, or (ii) as to which any shareholder, director or officer of the Company
or employee of the Company responsible for tax matters has knowledge based upon
personal contact with any agent of such authority. The Company has not received
any notice of assessment of additional taxes and has not executed or filed with
any taxing authority any agreement extending the period for assessment of any
income or other taxes. The Company has never been audited by any federal, state
or local taxing authority nor is the Company currently the subject of an audit.

                  (h)      Property. The Company does not own any real property.
The Company leases real property located at 3810 Packard Road, Suite 110, Ann
Arbor, Michigan 48108.

                  (i)      Compliance with Laws. The Company's business is being
conducted in compliance with all laws, ordinances and regulations of any
governmental authority applicable to the Company, except where such
non-compliance would not have a material adverse effect on the

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Company. The Company has not received any notice or complaint from any
governmental agency or authority and none is threatened, alleging that the
Company has violated any requirement, law, ordinance or regulation.

         4.       Representations and Warranties of the Purchaser. The Purchaser
represents and warrants to the Company and the Shareholder as follows:

                  (a)      Authorization of the Purchaser. The Purchaser has
full power and authority to execute and deliver this Agreement and to perform
its obligations hereunder. All action on the part of the Purchaser necessary for
the authorization, execution and delivery of this Agreement and for the
performance of all obligations of the Purchaser hereunder has been taken and
this Agreement constitutes valid and legally binding obligations of the
Purchaser, enforceable in accordance with its terms.

                  (b)      Securities Laws Matters. The Purchaser is an
"accredited investor" within the meaning of Securities and Exchange Commission
Rule 501 of Regulation D.

         5.       Closing and Closing Date.

                  (a)      Time and Place. The closing of the purchase and sale
of the Common Stock contemplated herein (the "Closing") shall occur at such
place and time as is mutually agreed to by the parties hereto after the
satisfaction or waiver of all conditions to the obligations of the parties to
consummate the transactions contemplated hereby (which time, date, and place are
referred to in this Agreement as the "Closing Date").

                  (b)      Deliveries and Actions. As part of the Closing, the
Company, the Shareholder and the Purchaser shall make the following deliveries
and taking the following actions:

         (i)      The Company/Shareholder shall deliver to the Purchaser a stock
certificate(s) representing all of the Common Stock being purchased and sold
hereunder duly registered in the name of the Shareholder, endorsed in blank or
with accompanying stock powers duly signed.

                           (ii)   The Shareholder shall deliver to the Purchaser
                  an assignment of all of the Shareholder's rights in the Voting
                  Agreement, dated July 31, 2000 and the Loan Conversion
                  Agreement, dated July 31, 2000, in a form satisfactory to the
                  Purchaser (the "Assignment"). (iii) The Company shall deliver
                  its consent to the Assignment in a form satisfactory to the
                  Purchaser.

                           (iii)  The company shall deliver its consent to the
                  Assignment in a form satisfactory to the Purchaser.

                           (iv)   The Purchaser shall deliver to the Shareholder
                  the aggregate Purchase Price.

         6.       Indemnification.

                  (a)      The Shareholder and the Company agree to indemnify
and hold harmless the Purchaser, and their successors and assigns, against and
with respect to, any and all loss, injury, liability, claim, assessment, damage
or expense (including, without limitation, reasonable attorneys' fees), court
costs and amounts paid in settlement of claims, of any kind or character arising
out of or in any manner incident, relating or attributed to, any inaccuracy in,
or breach or violation of, the representations and warranties made by the
Shareholder or the Company and the covenants and agreements undertaken by them
pursuant to this Agreement, whether or not such inaccuracy or breach or
violation was known to, or should have been known by, any of the parties hereto
on the Closing Date.

                  (b)      The Purchaser agrees to indemnify and hold harmless
the Shareholder and

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the Company, and their successors and assigns, against and with respect to, any
and all loss, injury, liability, claim, assessment, damage or expense
(including, without limitation, reasonable attorneys' fees), court costs and
amounts paid in settlement of claims, of any kind or character arising out of or
in any manner incident, relating or attributed to, any inaccuracy in, or breach
or violation of, the representations and warranties made by the Purchaser and
the covenants and agreements undertaken by them pursuant to this Agreement,
whether or not such inaccuracy or breach or violation was known to, or should
have been known by, any of the parties hereto on the Closing Date.

         7.       Miscellaneous.

                  (a)      Entire Agreement; Amendment. This Agreement
constitutes the entire agreement and understanding of the parties hereto with
respect to the subject matter hereof. No representation, inducement, agreement,
promise or understanding altering, modifying, amending, taking from or adding to
the terms and conditions hereof shall have any force and effect unless the same
is in writing and validly executed by the parties hereto.

                  (b)      Notices. All notices or other communications required
or permitted hereunder shall be in writing and shall be deemed to have been duly
given if physically delivered, telephonically transmitted by telecopier or other
similar means, or three (3) days after having been deposited in the United
States Mail, as certified mail with return receipt requested and with postage
prepaid, addressed to the recipient as follows:

                  If to the Shareholder, to:

                           Stan Cipkowski
                           President
                           American Bio Medica Corporation
                           122 Smith Road
                           Kinderhook, NY  12106

                  If to the Company, to:

                           Gerald Moore
                           BioSys, Inc.
                           3810 Packard Road
                           Suite 110
                           Ann Arbor, MI  48108

                  If to any of the Purchaser, to:

                           Joseph Hollenshead
                           Hollenshead Capital Management LLC
                           9030 West Sahara #410
                           Las Vegas, NV  89117

The addresses and other information so indicated for any party may be changed by
similar written notice.

                  (c)      Parties in Interest. This Agreement shall be binding
upon and inure to the benefit of, and be enforceable by, the parties hereto and
their respective permitted successors and assigns, heirs and personal
representatives.

                  (d)      Assignment. The rights and obligations provided by
this Agreement shall not be assignable by the Purchaser on the one hand and the
Shareholder or the Company on the other hand without the prior written consent
of the Shareholder and the Company or the Purchaser, as the case may be.

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                  (e)      Counterparts. This Agreement may be executed in any
number of counterparts, each of which shall be treated as an original but all of
which, collectively, shall constitute a single instrument.

                  (f)      Severability. In the event that any one or more of
the provisions of this Agreement should be invalid, illegal or unenforceable in
any respect, the validity, legality and enforceability of the remaining
provisions contained herein shall not in any way be affected or impaired
thereby.

                  (g)      Captions. The captions and headings of the sections
and the subsections have been inserted as a matter of convenience and reference
only and shall not control or affect the meaning or construction of this
Agreement.

                  (h)      Governing Law. This Agreement shall be governed by
and construed in accordance with the laws of the State of Ohio without regard to
its rules regarding choice of law.

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

PURCHASER:                                  SHAREHOLDER:

HOLLENSHEAD CAPITAL MANAGEMENT              AMERICAN BIO MEDICA CORPORATION
LLC

By: /s/ Joseph Hollenshead                  By: /s/ Stan Cipkowski
   -----------------------------------         ---------------------------------
    Joseph Hollenshead                          Stan Cipkowski

COMPANY:

BIOSYS, INC.

By: /s/ Gerald Moore
   -----------------------------------
    Gerald Moore

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                        EXHIBIT 1 - INTELLECTUAL PROPERTY

THE EDENS REPRESENT THAT THEY ARE THE SOLE OWNERS OF THE ENTIRE RIGHT, TITLE AND
INTEREST IN AND TO THE FOLLOWING:

        -   DEVICE AND METHOD FOR USE IN DETECTING MICROORGANISMS IN A SAMPLE --
            US PATENT 5,366,873.
        -   CONTAINER DEVICE AND METHOD FOR USE IN DETECTING MICROORGANISMS IN
            A SAMPLE -- GB PATENT 2,309,081.
        -   TRANSPARENT VIAL -- DESIGN PATENT APPLICATION 29/089596.
        -   METHOD AND DEVICE FOR CONCENTRATING SELECTED GROUPS OF
            MICROORGANISMS -- PROVISIONAL APPLICATION 60/097,627.
        -   INSTRUMENT FOR DETECTION OF MICROORGANISMS -- PROVISIONAL
            APPLICATION 60/086,503.
        -   KNOW-HOW, AND TRADE SECRETS.
        -   USE OF MICROSYS AND BIOSYS NAMES.

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                                                                 EXHIBIT 10.4(a)

                              EMPLOYMENT AGREEMENT

         AGREEMENT effective September 27, 1999, by and between RFS Managers,
Inc., a Tennessee corporation (the "Company"), and Randall L. Churchey (the
"Executive").

                              W I T N E S S E T H:

         WHEREAS, the Company provides management services to RFS Hotel
Investors, Inc. (the "Parent") pursuant to a Management Services Agreement dated
December 30, 1994 (the "Management Agreement"); and

         WHEREAS, the Company desires to employ the Executive to serve as the
President and Chief Operating Officer of the Company; and

         WHEREAS, the parties desire to enter into this Employment Agreement
effective as of November 1, 1999 as set forth herein.

         NOW, THEREFORE, in consideration of the premises and mutual obligations
hereinafter set forth the parties agree as follows:

         1. EMPLOYMENT. The Company shall employ the Executive, and the
Executive agrees to be so employed, in the capacity of President of the Company
to serve for the Term hereof, subject to earlier termination as hereinafter
provided.

         2. TERM. The term of the Executive's employment hereunder shall
commence on November 1, 1999 and shall continue until December 31, 2002 and
shall be extended automatically, for so long as the Executive remains employed
by the Company hereunder, each January 1 beginning January 1, 2001 for an
additional twelve-month period (such period, as it may be extended from time to
time, being herein referred to as the "Term"), unless terminated earlier in
accordance with the terms of this Agreement, to the effect that on each January
1, the remaining term of this Agreement and the Executive's employment hereunder
shall be three years.

         3. SERVICES. The Executive shall devote such amount of his time and
attention to the Company's affairs as are necessary to perform his duties to the
Company and to allow the Company to perform its duties specified in the
Management Agreement. Pursuant to the Management Agreement, the Executive shall
have authority and responsibility with respect to the day to day operations and
management of the Parent and RFS Partnership, L.P. (the "Partnership"), for
which the Parent currently serves as sole general partner, as well as
implementation of the long range growth strategy of the Parent and the
Partnership, consistent with direction from the Parent's Board of Directors (the
"Board").

         4. COMPENSATION. (a) During the Term, the Company shall pay the
Executive for his

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services an annual base salary of $225,000 (the "Base Salary"), to be paid in
semi-monthly payments of $9,375, such Base Salary being subject to any increases
approved by the Compensation Committee of the Board (the "Compensation
Committee").

            (b) In addition to the Base Salary described in Section 4(a)
above, the Executive shall be entitled to a cash bonus ("Base Salary Bonus") for
1999 payable on or before February 15, 2000 in the amount of $80,000.

            (c) Effective November 1, 1999, the Executive shall be granted
an aggregate of 25,000 shares of common stock of the Parent pursuant to a
Restricted Stock Agreement in the form of Exhibit A hereto and shall be granted
options to purchase an aggregate of 100,000 shares of common stock of the
Company at a price equal to the fair market value of the common stock on
November 1, 1999 pursuant to a Stock Option Agreement in the form of Exhibit B
hereto.

            (d) In addition to the Base Salary Bonus, the Executive may be
entitled to receive other incentive compensation, including but not limited to,
additional grants of stock options or shares of stock of the Parent, which
awards shall be made (if at all) in consideration of and as an incentive for
services performed solely for the Company, in accordance with rules and criteria
established by the Compensation Committee. Such criteria may include, but not be
limited to, the growth in the Parent's net income per share, funds from
operations per share or other performance goals.

         5. BENEFITS. The Company agrees to provide the Executive with the
following benefits:

            (a) Vacation. The Executive shall be entitled each calendar year
to a vacation, during which time his compensation shall be paid in full. The
time allotted for such vacation shall be three (3) weeks.

            (b) Employee Benefits. This Agreement shall not be in lieu of any
rights, benefits and privileges to which the Executive may be entitled as a
management level employee of the Company, including but not limited to any
retirement, pension, profit-sharing, insurance, hospital or other plans which
may now be in effect or which may hereafter be adopted. The Executive shall have
the same rights and privileges to participate in such plans and benefits as any
other management level employee during the Term.

         6. EXPENSES. The Company recognizes that the Executive will have to
incur certain out-of-pocket expenses, including but not limited to travel
expenses, related to his services and the Company's and the Parent's business
and the Company agrees to reimburse the Executive for all reasonable expenses
necessarily incurred by him in the performance of his duties upon presentation
of a voucher or documentation indicating the amount and business purposes of any
such expenses.

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         7. TERMINATION IN CASE OF DEATH OR DISABILITY. In the event of the
Executive's death or a complete physical or mental inability, confirmed by a
licensed physician, to perform the services described in Section 3 above that
continues for a period of one hundred twenty (120) consecutive days) ("Permanent
Disability"), the Company may elect to terminate this Agreement, subject to
continuation of the payments described in Section 10.

         8. DEFINITIONS. For purposes of this Agreement, the following terms
shall have the following definitions:

            (a) "Voluntary Termination" means, subject to the provisions of
Section 11 hereof, the Executive's voluntary termination of his employment
hereunder, which may be effected by the Executive giving the Board not less than
90 days' prior written notice of the Executive's desire to terminate his
employment or the Executive's failure to provide substantially all the services
described in Section 3 hereof for a period greater than four consecutive weeks
by reason of the Executive's voluntary refusal to perform such services.
Notwithstanding the foregoing, if the Executive gives notice of Voluntary
Termination and, prior to the expiration of the 90-day notice period, the
Executive voluntarily refuses or fails to provide substantially all the services
described in Section 3 hereof for a period greater than two consecutive weeks,
the Voluntary Termination shall be deemed to be effective as of the date on
which the Executive so ceases to carry out his duties. For purposes of this
Section 8, voluntary refusal to perform services shall not include taking
vacation otherwise permitted in accordance with Section 5(a) hereof, the
Executive's failure to perform services on account of his illness or the illness
of a member of his immediate family, provided such illness is adequately
substantiated at the reasonable request of the Company, or any other absence
from service with the written consent of the Board.

            (b) "Termination Without Cause" means the termination of the
Executive's employment by the Company for any reason other than Voluntary
Termination or Termination With Cause.

            (c) "Termination With Cause" means the termination of the
Executive's employment by act of the Board for any of the following reasons:

                (i) the Executive's conviction for a felony;

                (ii) the Executive's theft, embezzlement, misappropriation of or
                intentional and malicious infliction of damage to the Company's
                or the Parent's property or business opportunity;

                (iii) the Executive's intentional and material breach of the
                noncompetition covenant in Section 11 hereof;

                (iv) the Executive's continuous neglect of his duties hereunder
                or his

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                continuous failure or refusal to follow any reasonable,
                unambiguous duly adopted written direction of the Board or any
                duly constituted committee thereof that is not inconsistent with
                the description of the Executive's duties set forth in Section 3
                above; and

                (v) the Executive's abuse of alcohol, drugs or other substances,
                or his engaging in other deviant personal activities in a manner
                that, in the reasonable judgment of the Board, adversely affects
                the reputation, goodwill or business position of the Company.

            (d) "Involuntary Termination" means conduct on the part of the
Company that constitutes continuous and material interference by the Company
with the Executive's performance of his duties as set forth in Section 3 hereof
or the intentional or material breach by the Company of this Agreement.

         9. VOLUNTARY TERMINATION; TERMINATION WITH CAUSE. If (i) the Executive
shall cease being an employee of the Company on account of a Voluntary
Termination or (ii) there shall be a Termination With Cause, the Executive shall
not be entitled to any compensation after the effective date of such Voluntary
Termination or Termination With Cause (except Base Salary and vacation accrued
but unpaid on the effective date of such event). In the event of a Voluntary
Termination or Termination With Cause, the Executive shall continue to be
subject to the noncompetition covenant contained in Section 11 hereof for the
remainder of the Term.

         10. DEATH OR DISABILITY; TERMINATION WITHOUT CAUSE; OR INVOLUNTARY
TERMINATION. Following (i) the death of the Executive, (ii) Permanent Disability
of the Executive, (iii) an Involuntary Termination, or (iv) a Termination
Without Cause, the Company shall continue to pay the Executive or his heirs,
devisees, executors, legatees or personal representatives, as appropriate, the
semi-monthly payments of the Base Salary then in effect for three years from the
date of the termination of the Executive's employment.

         11. CHANGE OF CONTROL COMPENSATION.

             (a) Compensation. In the event of the termination of the
Executive's employment or the Executive's resignation for Good Reason (as
defined below) on or after a Change of Control (as defined below), the Company
shall, on the date of such termination or resignation, pay the Executive, in
addition to any Base Salary earned but not paid through the date of termination
or resignation, a cash amount (the "Termination Payment") equal to three (3)
times average annual base salary and cash bonus paid to or earned by the
Executive, under this Agreement or otherwise, for the fiscal year in which the
Change of Control occurs and the two preceding fiscal years or, if the Executive
has been employed by the Company for less than this period of time, then the
Termination Payment shall be based on the average annual base salary and cash
bonus paid or earned during the term of the Executive's employment (including
the fiscal year in which the Change of Control occurs). For purposes of
calculating sums hereunder: (i) if the

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salary and cash bonus are paid or earned for any period of employment of less
than twelve months (including the fiscal year in which the Change of Control
occurs) such sums shall be annualized and in the case of a cash bonus, it shall
be assumed that the bonus shall be the same as the preceding year, and (ii) no
fiscal year for which no base salary or cash bonus is earned or paid shall be
considered. Notwithstanding the first sentence of this Section 11(a), the
Termination Payment shall be calculated and paid immediately prior to the
closing of the transactions constituting a Change of Control if (i) the
Executive receives notice prior to the Change of Control that his employment
will be terminated on or after the Change of Control, or (ii) regardless of
whether the Executive is terminated or receives notice that his employment will
be terminated on or after the Change of Control, the Parent or any of its
affiliates enter into an agreement to effect a transaction substantially similar
to that described in Section 11(b)(v) below. In addition, the Company or the
Parent shall cause the Executive's insurance benefits, as in effect immediately
prior to the Change of Control, to remain in effect for at least one year
following the date of termination of Executive's employment by the Company or
the Executive's resignation for Good Reason.

             (b) A "Change of Control", for purposes of this Agreement,
shall be deemed to have occurred if, at any time during the Term, any of the
following events occurs:

                    (i) any "person", as that term is used in Section 13(d) and
               Section 14(d)(2) of the Securities Exchange Act of 1934, as
               amended (the "Exchange Act"), becomes, is discovered to be, or
               files a report on Schedule 13D or 14D-1 (or any successor
               schedule, form or report) disclosing that such person is, a
               beneficial owner (as defined in Rule 13d-3 under the Exchange Act
               or any successor rule or regulation), directly or indirectly, of
               securities of the Parent representing 50% or more of the combined
               voting power of the Parent's then outstanding securities entitled
               to vote generally in the election of directors;

                    (ii) individuals who, as of the Effective Date, constitute
               the Board of Directors of the Parent cease for any reason to
               constitute at least a majority of the Board of Directors of the
               Parent, unless any such change is approved by the vote of at
               least 80% of the members of the Board of Directors of the Parent
               in office immediately prior to such cessation;

                    (iii) the Parent is merged, consolidated or reorganized into
               or with another corporation or other legal person, or securities
               of the Parent are exchanged for securities of another corporation
               or other legal person, and immediately after such merger,
               consolidation, reorganization or exchange less than a majority of
               the combined voting power of the then-outstanding securities of
               such corporation or person immediately after such transaction are
               held, directly or indirectly, in the aggregate by the holders of
               securities entitled to vote generally in the election of
               directors of the Parent immediately prior to such transaction;

                    (iv) the Parent in any transaction or series of related
               transactions, sells all

                                       5
<PAGE>   6

               or substantially all of its assets to any other corporation or
               other legal person and less than a majority of the combined
               voting power of the then-outstanding securities of such
               corporation or person immediately after such sale or sales are
               held, directly or indirectly, in the aggregate by the holders of
               securities entitled to vote generally in the election of
               directors of the Parent immediately prior to such sale;

                    (v) the Parent and its affiliates shall sell or transfer of
               (in a single transaction or series of related transactions) to a
               non-affiliate business operations or assets that generated at
               least two-thirds of the consolidated revenues (determined on the
               basis of the Parent's four most recently completed fiscal
               quarters for which reports have been filed under the Exchange
               Act) of the Parent and its subsidiaries immediately prior
               thereto;

                    (vi) the Parent files a report or proxy statement with the
               Securities and Exchange Commission pursuant to the Exchange Act
               disclosing in response to Form 8-K (or any successor, form or
               report or item therein) that a change in control of the Parent
               has occurred; or

                    (vii) any other transaction or series of related
               transactions occur that have substantially the effect of the
               transactions specified in any of the preceding clauses in this
               sentence.

             (c) Certain Transactions. Notwithstanding the provisions of
Section 11(b)(i) or 11(b)(vi) hereof, unless otherwise determined in a specific
case by majority vote of the Board of Directors of the Parent, a Change in
Control shall not be deemed to have occurred for purposes of this Agreement
solely because (i) the Parent, (ii) an entity in which the Parent directly or
indirectly beneficially owns 50% or more of the voting securities or (iii) any
Parent-sponsored employee stock ownership plan, or any other employee benefit
plan of the Parent, either files or becomes obligated to file a report or a
proxy statement under or in response to Schedule 13D, Schedule 14D-1, Form 8-K
or Schedule 14A (or any successor schedule, form or report or item thereon)
under the Exchange Act, disclosing beneficial ownership by it of shares of stock
of the Parent, or because the Parent reports that a Change in Control of the
Parent has or any have occurred or will or may occur in the future by reason of
such beneficial ownership.

             (d) Good Reason. "Good Reason," for purposes of this Agreement,
shall be deemed to mean any of the following:

                    (i) a change in the Executive's status, position or
               responsibilities (including reporting responsibilities) which, in
               the Executive's reasonable judgment, does not represent a
               promotion from the Executive's status, position or
               responsibilities as in effect immediately prior to a Change in
               Control; the assignment to the Executive of any duties or
               responsibilities which, in the Executive's reasonable judgment,
               are inconsistent with such status, position or

                                       6
<PAGE>   7

               responsibilities; or any removal of the Executive from or failure
               to reappoint or reelect the Executive to any of such positions,
               except in connection with a Termination with Cause as defined in
               Section 8(c), as a result of the Executive's death or Permanent
               Disability, or by Voluntary Termination;

                    (ii) a reduction in the Executive's Base Salary and Base
               Salary Bonus as in effect on the date hereof or as the same may
               be increased from time to time;

                    (iii) the relocation of the Company's or the Parent's
               principal executive offices to a location outside a thirty-mile
               radius of Memphis, Tennessee or the Company's or the Parent's
               requiring the Executive to be based at any place other than a
               location within a thirty-mile radius of Memphis, Tennessee,
               except for reasonably required travel on the Company's or the
               Parent's business which is not materially greater than such
               travel requirements prior to the Change in Control;

                    (iv) the failure by the Company or the Parent to continue to
               provide the Executive with compensation and benefits provided for
               under this agreement or benefits substantially similar to those
               provided to the Executive under any of the employee benefit plans
               in which the Executive is or becomes a participant, or the taking
               of any action by the Company or the Parent which would directly
               or indirectly materially reduce any of such benefits or deprive
               the Executive of any material fringe benefit enjoyed by the
               Executive at the time of the Change in Control;

                    (v) any material breach by the Company of any provision of
               this Agreement; and

                    (vi) the failure of the Company to obtain a satisfactory
               agreement from any successor or assign of the Company to assume
               and agree to perform this Agreement.

             (e) Tax Matters. If the excise tax on "excess parachute payments,"
as defined in section 280G of the Internal Revenue Code of 1986, as amended (the
"Code"), will be imposed on the Executive under Code section 4999 as a result of
the Executive's receipt of the Termination Payment or any other payment, benefit
or compensation (without regard to the "Additional Amount" described below)
which the Executive receives or has the right to receive from the Company or the
Parent or any of their affiliates (the "Change of Control Benefits"), the
Company shall indemnify the Executive and hold him harmless against all claims,
losses, damages, penalties, expenses, and excise taxes. To effect this
indemnification, the Company shall pay to the Executive the "Additional Amount"
described in this Section 11(e). The Additional Amount shall be the amount that
is sufficient to indemnify and hold the Executive harmless from the application
or Code sections 280G and 4999, including the amount of (i) the excise tax that
will be imposed on the Executive under section 4999 of the Code with respect to
the Change of Control Benefits; (ii) the additional (A) excise tax under section
4999 of the Code, (B) hospital insurance tax under

                                       7
<PAGE>   8

section 3111(b) of the Code and (C) federal, state and local income taxes for
which the Executive is or will be liable on account of the payment of the amount
described in item (i); and (iii) the further excise, hospital insurance and
income taxes for which the Executive is or will be liable on account of the
payment of the amount described in item (ii) and this item (iii) and any other
indemnification payment under this Section 11(e). The Additional Amount shall be
calculated and paid to the Executive at the time that the Termination Payment is
paid to the Executive. In calculating the Additional Amount, the highest
marginal rates of federal and applicable state and local income taxes applicable
to individuals and in effect for the year in which the Change of Control occurs
shall be used. Nothing in this paragraph shall give the Executive the right to
receive indemnification from the Company or the Parent for federal, state or
local income taxes or hospital insurance taxes payable solely as a result of the
Executive's receipt of (a) the Termination Payment, or (b) any additional
payment, benefit or compensation other than additional compensation in the form
of the excise tax payment specified in item (i), above. As specified in items
(ii) and (iii), above, all income, hospital insurance and additional excise
taxes resulting from additional compensation in the form of the excise tax
payment specified in item (i), above, shall be paid to the Executive.

         The provisions of this Section 11(e) are illustrated by the following
example:

                  Assume that the Termination Payment and all other Change of
Control Benefits result in a total federal, state and local income tax and
hospital insurance tax liability of $180,000; and an excise tax liability under
Code section 4999 of $70,000. Under such circumstances, the Executive is solely
responsible for the $180,000 income and hospital insurance tax liability; and
the Company or the Parent must pay to the Executive $70,000, plus an amount
necessary to indemnify the Executive for all federal, state and local income
taxes, hospital insurance taxes, and excise taxes that will result from the
$70,000 payment to the Executive and from all further indemnification to the
Executive of taxes attributable to the initial $70,000 payment.

         12. NONCOMPETITION. During the Term and for a period of two (2) years
thereafter, the Executive shall not, other than through the Parent or affiliates
of the Parent, own more than a 10% interest in any hotel property (other than
hotels owned by the Parent and the Partnership), as partner, shareholder or
otherwise, or directly or indirectly, for his own account or for the account of
others, either as an officer, director, shareholder, owner, partner, promoter,
employee, consultant, advisor, agent, manager, or in any other capacity engage
in the acquisition, development, operation or management of any hotel property
located within 20 miles of any hotel property owned by the Parent or the
Partnership at the time of termination of employment. The foregoing sentence
shall not restrict the Executive from owning up to 10% of the outstanding
securities of any entity, including any entity whose securities are traded in
public securities markets.

         The Executive agrees that damages at law for violation of the
restrictive covenant contained herein would not be an adequate or proper remedy
to the Company, and that should the Executive violate or threaten to violate any
of the provisions of such covenant, the Company, its successors or assigns,
shall be entitled to obtain a temporary or permanent injunction against the
Executive in any

                                       8
<PAGE>   9

court having jurisdiction over the person and the subject matter, prohibiting
any further violation of any such covenants. The injunctive relief provided
herein shall be in addition to any award of damages, compensatory, exemplary or
otherwise, payable by reason of such violation.

         Furthermore, the Executive acknowledges that this Agreement has been
negotiated at arms' length by the parties, neither being under any compulsion to
enter into this Agreement, and that the foregoing restrictive covenant does not
in any respect inhibit his ability to earn a livelihood in his chosen profession
without violating the restrictive covenant contained herein. The Company by
these presents has attempted to limit the Executive's right to compete only to
the extent necessary to protect the Company from unfair competition. The Company
recognizes, however, that reasonable people may differ in making such a
determination. Consequently, the Company agrees that if the scope or
enforceability of the restricted covenant contained herein is in any way
disputed at any time, a court or other trier of fact may modify and enforce the
covenant to the extent that it believes to be reasonable under the circumstances
existing at the time.

         13. RELOCATION EXPENSES. The Company shall pay, or shall reimburse the
Executive for, the Executive's direct costs of relocating from Dallas, Texas to
Memphis, Tennessee, including moving expenses and reimbursement for the real
estate commission on the Executive's current home in Dallas, Texas.

         14. NOTICES. All notices or deliveries authorized or required pursuant
to this Agreement shall be deemed to have been given when in writing and
personally delivered or when deposited in the U.S. mail, certified, return
receipt requested, postage prepaid, addressed to the parties at the following
addresses or to such other addresses as either may designate in writing to the
other party:

             To the Company:                RFS Managers, Inc.
                                            850 Ridge Lake Boulevard
                                            Suite 220
                                            Memphis, TN 38120

             To the Executive:              Randall L. Churchey
                                            850 Ridge Lake Boulevard
                                            Suite 220
                                            Memphis, TN 38120

         15. ENTIRE AGREEMENT. This Agreement contains the entire understanding
between the parties hereto with respect to the subject matter hereof and shall
not be modified in any manner except by instrument in writing signed, by or on
behalf of, the parties hereto; provided, however, that any amendment or
termination of the covenant of noncompetition in Section 12 must be approved by
a majority of the Directors of the Parent other than the Executive, if the
Executive is then a director of the Parent. This Agreement shall be binding upon
and inure to the benefit of the heirs, successors and assigns of the parties
hereto.

                                       9
<PAGE>   10

         16. ARBITRATION. Any claim or controversy arising out of, or relating
to, this Agreement or its breach, shall be settled by arbitration in accordance
with the governing rules of the American Arbitration Association. Judgment upon
the award rendered may be entered in any court of competent jurisdiction.

         17. APPLICABLE LAW. This Agreement shall be governed and construed in
accordance with the laws of the State of Tennessee.

         18. ASSIGNMENT. The Executive acknowledges that his services are unique
and personal. Accordingly, the Executive may not assign his rights or delegate
his duties or obligations under this Agreement, except with respect to certain
rights to receive payments as described in Section 10. The Company's rights and
obligations under this Agreement shall inure to the benefit of and shall be
binding upon the Company's successors and assigns.

         19. HEADINGS. Headings in this Agreement are for convenience only and
shall not be used to interpret or construe its provisions.

         20. AMENDED AGREEMENT. This Agreement amends and restates the Amended
Agreement in its entirety as of the effective date of this Agreement.

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

                                        RFS MANAGERS, INC.

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

                                        EXECUTIVE:

                                        -----------------------------------
                                        Randall L. Churchey

                                       10

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