Document:

EXHIBIT 4.3

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                                  LODGIAN, INC.

                                       and

                              WACHOVIA BANK, N.A.,

                                as Warrant Agent

                            CLASS B WARRANT AGREEMENT

                          Dated as of November 25, 2002

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                                TABLE OF CONTENTS

Section

1.    DEFINITIONS............................................................1

2.    EXECUTION AND DELIVERY OF WARRANT CERTIFICATES.........................1

3.    EXERCISE OF WARRANT....................................................1
      3.1.    Manner of Exercise.............................................1
      3.2.    Procedure......................................................1
      3.3.    Payment of Taxes...............................................1
      3.4.    Fractional Shares..............................................1

4.    TRANSFER, DIVISION AND COMBINATION.....................................1
      4.1.    Division and Combination.......................................1
      4.2.    Expenses.......................................................1
      4.3.    Maintenance of Books...........................................1
      4.4.    Transfer.......................................................1

5.    ADJUSTMENTS............................................................1
      5.1.    Stock Dividends, Subdivisions and Combinations.................1
      5.2.    Certain Other Distributions....................................1
      5.3.    Below Market Issuances of Common Stock.........................1
      5.4.    Below Market Issuances of Convertible Securities...............1
      5.5.    Superseding Adjustment.........................................1
      5.6.    Other Provisions Applicable to Adjustments under this Section..1
      5.7.    Reorganization, Reclassification, Merger, Consolidation or
              Disposition of Assets..........................................1
      5.8.    Other Action Affecting Common Stock............................1
      5.9.    Certain Limitations............................................1

6.    NOTICES OF AdJUSTMENT..................................................1

7.    NO IMPAIRMENT..........................................................1

8.    RESERVATION AND AUTHORIZATION OF COMMON STOCK; REGISTRATION WITH OR
      APPROVAL OF ANY GOVERNMENTAL AUTHORITY.................................1

9.    STOCK AND WARRANT TRANSFER BOOKS.......................................1

10.   SUPPLYING INFORMATION..................................................1

11.   LOSS OR MUTILATION.....................................................1

12.   OFFICE OF COMPANY......................................................1

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13.   APPRAISAL..............................................................1

14.   LIMITATION OF LIABILITY................................................1

15.   CONCERNING THE WARRANT AGENT...........................................1
      15.1.   Correctness of Statement.......................................1
      15.2.   Breach of Covenants............................................1
      15.3.   Reliance on Counsel............................................1
      15.4.   Reliance on Documents..........................................1
      15.5.   Compensation and Indemnification...............................1
      15.6.   Legal Proceedings..............................................1
      15.7.   Other Transactions in Securities of the Company................1
      15.8.   Liability of Warrant Agent.....................................1
      15.9.   Adjustments....................................................1

16.   MISCELLANEOUS..........................................................1
      16.1.   Nonwaiver......................................................1
      16.2.   Notice Generally...............................................1
      16.3.   Appointment of Warrant Agent...................................1
      16.4.   Successors and Assigns.........................................1
      16.5.   Amendment......................................................1
      16.6.   Severability...................................................1
      16.7.   Headings.......................................................1
      16.8.   Governing Law..................................................1

SIGNATURES     .............................................................20

Exhibit A      Form of Warrant Certificate...................................1

Exhibit B      Subscription Form.............................................1

Exhibit C      Assignment Form...............................................1

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                                WARRANT AGREEMENT

            WARRANT AGREEMENT, dated as of November 25, 2002 (the "Warrant
Agreement"), between LODGIAN, INC., a Delaware corporation (the "Company"), and
Wachovia Bank, N.A., as Warrant Agent (the "Warrant Agent").

            WHEREAS, pursuant to the First Amended Joint Plan of Reorganization
(the "Plan") of the Company and certain of its subsidiaries, as confirmed by the
United States Bankruptcy Court for the Southern District of New York on November
5, 2002, the Company proposes to issue Class B Warrants (as defined herein),
representing the right to purchase up to an aggregate of 1,029,366 shares of its
Common Stock (as defined herein), subject to adjustment as hereinafter provided;
and

            WHEREAS, the Company desires to appoint the Warrant Agent to act on
behalf of the Company, and the Warrant Agent is willing so to act in connection
with the issuance, transfer, exchange, replacement and exercise of the Class B
Warrant Certificates (as defined herein) and other matters as provided herein;

            NOW THEREFORE, in consideration of the foregoing and for the purpose
of defining the terms and conditions of the Class B Warrants and the respective
rights and obligations thereunder of the Company and the holders from time to
time of the Class B Warrants, the Company and the Warrant Agent hereby agree as
follows:

1.    DEFINITIONS

            As used in this Warrant Agreement, the following terms have the
respective meanings set forth below:

            "Additional Shares of Common Stock" means all shares of Common Stock
issued by the Company after the Closing Date, other than shares of Class B
Warrant Stock.

            "Appraised Value" means, in respect of the Common Stock on any date
herein specified, the fair saleable value of one share of Common Stock as of the
last day of the most recent fiscal month ended at least 15 days prior to such
specified date, based on (i) the equity value of the Company, as determined by
an investment banking firm selected in accordance with the terms of Section 13,
divided by (ii) the number of Fully Diluted Outstanding shares of Common Stock.

            "Business Day" means any day that is not a Saturday or Sunday or a
day on which banks are required or permitted to be closed in the State of New
York.

            "Class A Warrant" means each of the Company's warrants issued
pursuant to that certain Warrant Agreement dated as of even date herewith, each
of which evidences the right to purchase one share of Common Stock, subject to
adjustment as set forth in such Warrant Agreement, and all warrants issued upon
transfer, division or combination of, or in substitution for, any thereof.

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            "Class B Warrant" means each of the Company's warrants issued
pursuant to this Warrant Agreement, each of which evidences the right to
purchase one share of Common Stock, subject to adjustment as set forth in this
Warrant Agreement, and all warrants issued upon transfer, division or
combination of, or in substitution for, any thereof.

            "Class B Warrant Certificate" means a certificate, substantially in
the form of Exhibit A hereto, representing one or more Class B Warrants held by
a Holder. All Class B Warrant Certificates shall be identical as to terms and
conditions, except as to the number of Class B Warrants represented thereby.

            "Class B Warrant Price" means an amount equal to (i) the number of
shares of Common Stock being purchased upon exercise of Class B Warrants
pursuant to Section 3.1, multiplied by (ii) the Current Class B Warrant Price as
of the date of such exercise.

            "Class B Warrant Stock" means the shares of Common Stock purchased
by the Holders of the Class B Warrants upon the exercise thereof.

            "Closing Date" means November 25, 2002.

            "Commission" means the Securities and Exchange Commission or any
other federal agency then administering the Securities Act and other federal
securities laws.

            "Common Stock" means the Common Stock, $0.01 par value, of the
Company, and any capital stock into which such Common Stock may hereafter be
changed, whether as a result of any change in the capital structure of the
Company or otherwise, and shall also include (i) capital stock of the Company of
any other class (regardless of how denominated) issued to the holders of shares
of Common Stock upon any reclassification thereof which is not preferred as to
dividends or assets over any other class of stock of the Company and which is
not subject to redemption and (ii) shares of common stock of any successor or
acquiring corporation (as defined in Section 5.7) received by or distributed to
the holders of Common Stock of the Company in the circumstances contemplated by
Section 5.7.

            "Convertible Securities" means evidences of indebtedness, shares of
stock or other securities which are convertible into or exchangeable for
Additional Shares of Common Stock, either immediately or upon the occurrence of
a specified date or a specified event.

            "Current Class B Warrant Price" means, at any date herein specified,
the price at which one share of Common Stock may be purchased pursuant to this
Warrant Agreement on such date. The Current Class B Warrant Price as of the date
of this Warrant Agreement is $25.44, subject to adjustment in accordance with
the terms hereof.

            "Current Market Price" means, in respect of any share of Common
Stock on any date herein specified, (a) for so long as there shall then be a
public market for the Common Stock, the average of the Daily Market Prices for
the 20 consecutive Business Days immediately prior to such specified date, and
(b) if there is then no public market for the Common Stock, the Appraised Value
per share of Common Stock as at such specified date.

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            "Daily Market Price" means, for each Business Day (i) if the Common
Stock is then listed or admitted to trading on any stock exchange, the last sale
price per share of Common Stock on such day on the principal stock exchange on
which the Common Stock is then listed or admitted to trading, (ii) if the Common
Stock is then listed or admitted to trading on any stock exchange but no sale
takes place on such day on such exchange, the average of the last reported
closing bid and asked prices per share of Common Stock on such day as officially
quoted on such exchange, (iii) if the Common Stock is not then listed or
admitted to trading on any stock exchange, the closing sale price per share of
Common Stock on such day in the over-the-counter market, as furnished by the
Nasdaq Stock Market or the National Quotation Bureau, Inc., provided, that if no
sale takes place on such day in the over-the-counter market, the average closing
bid and asked price per share of Common Stock on such day as furnished by the
Nasdaq Stock Market or the National Quotation Bureau, Inc., (iv) if neither such
corporation at the time is engaged in the business of reporting such prices, the
closing sale price per share of Common Stock on such day in the over-the-counter
market as furnished by any similar firm then engaged in such business, (v) if
there is no such firm, the closing sale price per share of Common Stock on such
day in the over-the-counter market as furnished by any member of the NASD
selected by the Company or (vi) if there is then no public market for the Common
Stock, the Appraised Value per share of Common Stock as at such specified date.

            "Exchange Act" means the Securities Exchange Act of 1934, as
amended, or any similar federal statute, and the rules and regulations of the
Commission thereunder, as the same shall be in effect from time to time.

            "Exercise Period" means the period during which the Class B Warrants
are exercisable pursuant to Section 3.1.

            "Expiration Date" means the 7th anniversary of the Closing Date.

            "Fully Diluted Outstanding" means, when used with reference to
Common Stock, at any date as of which the number of shares thereof is to be
determined, all shares of Common Stock Outstanding at such date and all shares
of Common Stock issuable in respect of the Class B Warrants outstanding on such
date, and other options or warrants to purchase, or securities convertible into,
shares of Common Stock outstanding on such date which would be deemed
outstanding in accordance with GAAP for purposes of determining book value or
net income per share.

            "GAAP" means generally accepted accounting principles in the United
States of America as in effect on the applicable date of determination.

            "Holder" means, at any time, a Person in whose name a Class B
Warrant or Class B Warrants is then registered on the books of the Company
maintained by the Warrant Agent for such purpose.

            "NASD" means the National Association of Securities Dealers, Inc.,
or any successor corporation thereto.

            "Other Property" shall have the meaning set forth in Section 5.7.

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            "Outstanding" means, when used with reference to Common Stock, at
any date as of which the number of shares thereof is to be determined, all
issued shares of Common Stock, except shares then owned or held by or for the
account of the Company or any subsidiary thereof, and shall include all shares
issuable in respect of outstanding scrip or any certificates representing
fractional interests in shares of Common Stock.

            "Permitted Issuances" means (i) the issuance of the Class B Warrants
and Class A Warrants, (ii) the issuance of shares of Common Stock upon the
exercise of the Class B Warrants and the Class A Warrants, (iii) the issuance of
(x) shares of Common Stock and (y) warrants, options or other rights to acquire
shares of Common Stock to the Company's management and other eligible
participants under the Company's 2002 Stock Incentive Plan, in accordance with
its terms as in effect on the effective date of the Plan, (iv) the issuance of
shares of Common Stock upon exercise of the warrants, options and other rights
referred to in clause (iii)(y), and (v) all other issuances of Common Stock and
warrants by the Company expressly authorized by the Plan.

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

            "Plan" has the meaning assigned to such term in the recitals in this
Warrant Agreement.

            "Securities Act" means the Securities Act of 1933, as amended, or
any similar federal statute, and the rules and regulations of the Commission
thereunder, all as the same shall be in effect at the time.

2.    EXECUTION AND DELIVERY OF WARRANT CERTIFICATES

            Class B Warrant Certificates evidencing 1,029,366 Class B Warrants,
each Class B Warrant to purchase initially one share of Common Stock, may be
executed, on or after the date of this Warrant Agreement, by the Company and
delivered to the Warrant Agent for countersignature, and the Warrant Agent shall
thereupon countersign and deliver such Class B Warrant Certificates upon the
order and at the written direction of the Company signed by its Chief Executive
Officer or other duly authorized executive officer. The Warrant Agent is hereby
authorized to countersign and deliver Class B Warrant Certificates as required
by this Section 2 or by Section 3.2, 4 or 11 hereof.

            The Class B Warrant Certificates shall be executed on behalf of the
Company by its Chairman of the Board, Chief Executive Officer, President, any
Vice President or other duly authorized executive officer of the Company either
manually or by facsimile signature printed thereon. The Class B Warrant
Certificates shall be countersigned by manual signature of the Warrant Agent and
shall not be valid for any purpose unless so countersigned.

            In case any officer or director of the Company whose signature shall
have been placed upon any Class B Warrant Certificate shall cease to be such
officer or director of the Company before countersignature by the Warrant Agent
and the issuance and delivery thereof, such Class B Warrant Certificate may
nevertheless be countersigned by the Warrant Agent and

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issued and delivered with the same force and effect as though such person had
not ceased to be such officer or director of the Company.

3.    EXERCISE OF WARRANT

            3.1. Manner of Exercise. From and after the date hereof and until
5:00 P.M., New York time, on the Expiration Date, a Holder may exercise Class B
Warrants, at any time and from time to time, on any Business Day, for all or any
part of the number of shares of Class B Warrant Stock purchasable hereunder.

            3.2. Procedure.

            (a) In order to exercise Class B Warrants, a Holder shall deliver to
      the Company at its principal office located at 3445 Peachtree Road - Suite
      700, Atlanta, Georgia 30326, Attn: General Counsel, or, if so requested in
      writing by the Company, to the Warrant Agent, at the office or agency
      designated by the Company pursuant to Section 12, (i) a written notice of
      such Holder's election to exercise such Class B Warrants substantially in
      the form attached hereto as Exhibit B (the "Subscription Form"), duly
      executed by such Holder or its designated agent or attorney, which notice
      shall specify the number of shares of Common Stock to be purchased by such
      Holder, (ii) payment of the Class B Warrant Price made against delivery of
      the shares, at the option of such Holder, by certified or official bank
      check or wire transfer or, at the option of the Holder, as provided in
      subsection (b), and (iii) the Class B Warrant Certificate in respect of
      the Class B Warrants being exercised.

            (b) In lieu of payment of the Class B Warrant Price by certified or
      official bank check or wire transfer, as provided for in subsection
      (a)(ii), a Holder may elect to pay all or any portion of the Class B
      Warrant Price, as indicated by such Holder on the Subscription Form, (i)
      by agreeing to accept a reduction in the number of shares of Class B
      Warrant Stock that would have otherwise been issued to such Holder upon
      exercise of such Class B Warrants, which would result in the Holder
      receiving from the Company, pursuant to such exercise, a number of shares
      of Class B Warrant Stock computed using the following formula:

            X = Y (A-B)
                -------
                   A

      Where:

      X = the number of shares of Class B Warrant Stock to be issued to the
          Holder.

      Y = the number of shares of Class B Warrant Stock purchasable under the
          Class B Warrants being exercised by such Holder.

      A = the Daily Market Price of one share of the Common Stock on the trading
          day preceding such exercise date.

      B = the Current Class B Warrant Price (as adjusted to the date of such
          calculation).

      or (ii) by surrender to the Company of debt securities of the Company
      having a value equal to the Class B Warrant Price of the Class B Warrant
      Stock being purchased upon

<PAGE>

      such exercise, which value shall be the principal amount thereof, plus
      accrued interest and premium (if any) or less any unamortized discount
      thereon, as reasonably determined by the Company.

            (c) Upon receipt thereof, the Company shall, as promptly as
      practicable, and in any event within ten (10) Business Days thereafter,
      (i) have executed by a duly authorized executive officer of the Company,
      either manually or by facsimile signature printed thereon, and (ii) cause
      the Warrant Agent to execute and deliver or cause to be delivered to such
      Holder a certificate or certificates representing the aggregate number of
      full shares of Class B Warrant Stock issuable upon such exercise, together
      with cash in lieu of any fraction of a share, as hereinafter provided. The
      stock certificate or certificates so delivered shall be, to the extent
      possible, in such denomination or denominations as the exercising Holder
      shall request in the notice and shall be registered in the name of such
      Holder or, such other name as shall be designated in the notice delivered
      to the Company by such Holder. Class B Warrants shall be deemed to have
      been exercised and such certificate or certificates shall be deemed to
      have been issued, and the exercising Holder or any other Person so
      designated to be named therein shall be deemed to have become a holder of
      record of such shares for all purposes, as of the date the notice,
      together with payment therefor (in whatever form, as provided in this
      Warrant Agreement) and the Class B Warrant Certificate, is received by the
      Company as described above and all taxes required to be paid by such
      Holder, if any, pursuant to Section 3.3 prior to the issuance of such
      shares, have been paid. If the Class B Warrants represented by a Class B
      Warrant Certificate shall have been exercised in part, the Warrant Agent
      shall, at the time of delivery of the certificate or certificates
      representing Class B Warrant Stock, deliver to the exercising Holder a new
      Class B Warrant Certificate representing Class B Warrants to purchase a
      number of shares of Common Stock equal to the unpurchased balance of the
      shares of Common Stock issuable upon exercise of the Class B Warrants
      represented by the Class B Warrant Certificate surrendered, which new
      Class B Warrant Certificate shall in all other respects be identical to
      the Class B Warrant Certificate so surrendered, or, at the request of the
      exercising Holder, appropriate notation may be made on the Class B Warrant
      Certificate so surrendered and the same returned to such Holder. Until a
      Holder has complied with Section 3.3 with respect to the payment of
      certain taxes and charges specified in such section, the Company shall not
      be required to issue or deliver shares in the name of any Person who
      acquired Class B Warrants or any Class B Warrant Stock.

            3.3. Payment of Taxes. All shares of Common Stock issuable upon the
exercise of Class B Warrants pursuant to the terms hereof shall be validly
issued, fully paid and nonassessable and without any preemptive rights. The
Company shall pay all expenses in connection with, and all taxes and other
governmental charges that may be imposed with respect to, the issuance or
delivery thereof, unless such tax or charge is imposed by law upon a Holder, in
which case such taxes or charges shall be paid by such Holder. The Company shall
not be required, however, to pay any tax or other charge imposed in connection
with any transfer involved in the issuance of any certificate for shares of
Common Stock issuable upon exercise of Class B Warrants in any name other than
that of a Holder, and in such case the Company shall not be required to issue or
deliver any stock certificate until such tax or other charge has been paid or it
has been established to the satisfaction of the Company that no such tax or
other charge is due. If such tax or other charge

<PAGE>

is due, the Warrant Agent shall have no duty or obligation under this Section
3.3 or any other similar provision of this Warrant Agreement unless and until it
is satisfied that all such taxes and/or governmental charges have been paid in
full.

            3.4. Fractional Shares. The Company shall not be required to issue a
fractional share of Common Stock upon exercise of any Class B Warrants. As to
any fraction of a share which a Holder of one or more Class B Warrants, the
rights under which are exercised in the same transaction, would otherwise be
entitled to purchase upon such exercise, the Company shall pay a cash adjustment
in respect of such fraction in an amount equal to the same fraction of the
Current Market Price per share of Common Stock on the date of exercise.

4.    TRANSFER, DIVISION AND COMBINATION

            4.1. Division and Combination. A Class B Warrant Certificate may be
exchanged for a new Class B Warrant Certificate and Class B Warrants may be
divided or combined with other Class B Warrants upon presentation of the Class B
Warrant Certificate(s) therefor at the aforesaid office or agency of the Warrant
Agent, together with a written notice specifying the names and denominations in
which new Class B Warrant Certificates are to be issued, signed by the Holder of
such Class B Warrant Certificate or Certificates or its agent or attorney.
Subject to compliance with this Section 4.1, as to any transfer which may be
involved in such division or combination, the Warrant Agent shall execute and
deliver a new Class B Warrant Certificate(s) in exchange for the Class B Warrant
Certificate(s) representing the Class B Warrants to be divided or combined in
accordance with such notice.

            4.2. Expenses. The Company shall prepare, issue and deliver at its
own expense (other than transfer taxes) the new Class B Warrant Certificates
under this Section 4. The Company shall not be required, however, to pay any tax
or other charge imposed in connection with any transfer of any Class B Warrants,
including, but not limited to, any transfer involved in the division or
combination of any Class B Warrant Certificates under this Section 4, and in
such case the Company shall not be required to issue or deliver any Class B
Warrant Certificates until such tax or other charge has been paid or it has been
established to the satisfaction of the Company that no such tax or other charge
is due. If such tax or other charge is due, the Warrant Agent shall have no duty
or obligation under this Section 4 or any other similar provision of this
Warrant Agreement unless and until it is satisfied that all such taxes and/or
governmental charges have been paid in full.

            4.3. Maintenance of Books. The Company agrees to maintain, at its
aforesaid office or agency, books for the registration and the registration of
transfer of the Class B Warrants.

            4.4. Transfer. Subject to Section 4.2, the Class B Warrants and all
rights hereunder are transferable, in whole or in part, without charge to the
Holder hereof upon surrender of the Class B Warrant Certificate with a form of
assignment, substantially in the form attached hereto as Exhibit C, at the
office or agency of the Warrant Agent as provided for in Section 12. Upon any
partial transfer, the Warrant Agent shall promptly issue and deliver to the
Holder hereof a new Class B Warrant Certificate of like tenor, in the name of
the Holder hereof,

<PAGE>

which shall be exercisable for such number of shares of Class B Warrant Stock
which were not so transferred.

5.    ADJUSTMENTS

            The number of shares of Common Stock for which each Class B Warrant
is exercisable, and the price at which such shares may be purchased upon
exercise of Class B Warrants, shall be subject to adjustment from time to time
as set forth in this Section 5. The Company shall give each Holder notice of any
event described below which requires an adjustment pursuant to this Section 5 at
the time of such event.

            5.1. Stock Dividends, Subdivisions and Combinations. If at any time
after the Closing Date the Company shall:

            (a) pay a dividend, or make any other distribution of, Additional
      Shares of Common Stock to all holders of its Common Stock,

            (b) subdivide its outstanding shares of Common Stock into a larger
      number of shares of Common Stock, or

            (c) combine its outstanding shares of Common Stock into a smaller
      number of shares of Common Stock,

then (i) the number of shares of Common Stock for which each Class B Warrant is
exercisable immediately after the occurrence of any such event shall be adjusted
to equal the number of shares of Common Stock which a record holder of the same
number of shares of Common Stock for which one Class B Warrant is exercisable
immediately prior to the occurrence of such event would own or be entitled to
receive after the happening of such event, and (ii) the Current Class B Warrant
Price shall be adjusted to equal (A) the Current Class B Warrant Price
multiplied by the number of shares of Common Stock for which one Class B Warrant
is exercisable immediately prior to such adjustment divided by (B) the number of
shares for which one Class B Warrant is exercisable immediately after such
adjustment.

            5.2. Certain Other Distributions. If at any time after the Closing
Date the Company shall make:

            (a) any distribution of evidences of its indebtedness or any other
      assets of any nature whatsoever (other than cash or Convertible Securities
      covered by Section 5.4) to all holders of its Common Stock, or

            (b) any distribution of warrants or other rights to subscribe for or
      purchase any evidences of its indebtedness (other than warrants or rights
      covered by Section 5.3 hereof) to all holders of its Common Stock,

then (i) the number of shares of Common Stock for which each Class B Warrant is
exercisable shall be adjusted to equal the product obtained by multiplying the
number of shares of Common Stock for which one Class B Warrant is exercisable
immediately prior to such distribution by a fraction (A) the numerator of which
shall be the Current Market Price per share of Common

<PAGE>

Stock at the time of such distribution and (B) the denominator of which shall be
the Current Market Price per share of Common Stock minus the amount allocable to
one share of Common Stock of the fair value (as determined in good faith by the
Board of Directors of the Company) of any and all such evidences of
indebtedness, shares of stock, other securities or property or warrants or other
subscription or purchase rights so distributed, and (ii) the Current Class B
Warrant Price shall be reduced to equal (A) the Current Class B Warrant Price
immediately prior to such distribution multiplied by the number of shares of
Common Stock for which one Class B Warrant is exercisable immediately prior to
such distribution divided by (B) the number of shares for which one Class B
Warrant is exercisable immediately after such distribution. A reclassification
of the Common Stock (other than a change in par value, or from par value to no
par value or from no par value to par value) into shares of Common Stock and
shares of any other class of stock shall be deemed a distribution by the Company
to the holders of its Common Stock of such shares of such other class of stock
within the meaning of this Section 5.2 and, if the outstanding shares of Common
Stock shall be changed into a larger or smaller number of shares of Common Stock
as a part of such reclassification, such change shall be deemed a subdivision or
combination, as the case may be, of the outstanding shares of Common Stock
within the meaning of Section 5.1.

            5.3. Below Market Issuances of Common Stock. If at any time after
the Closing Date the Company shall (other than in a Permitted Issuance) issue
Additional Shares of Common Stock (or options, warrants or other rights to
subscribe for or purchase any Additional Shares of Common Stock or any
Convertible Securities, whether or not the rights to exchange, subscribe or
convert thereunder are immediately exercisable), at a price per share (or having
an effective exercise, exchange or conversion price per share together with the
purchase price thereof) of less than 90% of the Current Market Price in effect
immediately prior to the time of such issue, then in each such case (i) the
number of shares of Common Stock for which each Class B Warrant is exercisable
shall be adjusted to equal the product obtained by multiplying the number of
shares of Common Stock for which one Class B Warrant is exercisable immediately
prior to such issuance by a fraction (A) the numerator of which shall be the
number of shares of Common Stock Outstanding immediately prior to such issuance
plus the total number of Additional Shares of Common Stock issued or offered for
subscription or purchase, as the case may be, and (B) the denominator of which
shall be the number of shares of Common Stock Outstanding immediately prior to
such issuance plus the number of shares of Common Stock which the aggregate
purchase, subscription and/or exercise price to be paid for all Additional
Shares of Common Stock would purchase at the then Current Market Price; and (ii)
the Current Class B Warrant Price in effect immediately prior to such issuance
shall be reduced by multiplying such Current Class B Warrant Price by a fraction
(X) the numerator of which shall be the number of shares for which one Class B
Warrant is exercisable immediately prior to such issuance; and (Y) the
denominator of which shall be the number of shares of Common Stock for which one
Class B Warrant is exercisable immediately after such issuance. No further
adjustments of the number of shares for which Class B Warrants are exercisable
or of the Current Class B Warrant Price shall be made upon the actual issue of
such Common Stock or such Convertible Securities upon exercise of any such
options, warrants or other rights or upon the actual issuance of such Common
Stock upon such conversion or exchange of such Convertible Securities. No
adjustment of the number of shares of Common Stock for which Class B Warrants
are exercisable or of the Current Class B Warrant Price shall be made under this
Section 5.3 for the issuance of any shares of Common Stock upon the conversion
or exchange of

<PAGE>

any Convertible Securities, the issuance of which Convertible Shares is covered
by Section 5.4 or is expressly exempt from Section 5.4 by reason of the price
per share (or effective price per share) for which Common Stock is issuable upon
exchange or conversion thereof. No adjustment of the number of shares of Common
Stock for which Class B Warrants are exercisable or of the Current Class B
Warrant Price shall be made under this Section 5.3 for any issuance of shares of
Common Stock covered by Section 5.1.

            5.4. Below Market Issuances of Convertible Securities. If at any
time after the Closing Date the Company shall (other than in a Permitted
Issuance) make a distribution to all holders of its Common Stock of, or
otherwise issue, any Convertible Securities (whether or not the rights to
exchange or convert thereunder are immediately exercisable), for which Common
Stock is issuable upon such exchange or conversion at a price per share (or
effective price per share together with the purchase price thereof) of less than
90% of the Current Market Price in effect immediately prior to the time of such
issuance, then (i) the number of shares of Common Stock for which each Class B
Warrant is exercisable shall be adjusted to equal the product obtained by
multiplying the number of shares of Common Stock for which one Class B Warrant
is exercisable immediately prior to such issuance by a fraction (A) the
numerator of which shall be the number of shares of Common Stock Outstanding
immediately prior to such issuance plus the total number of Additional Shares of
Common Stock into which such Convertible Securities would be convertible and (B)
the denominator of which shall be the number of shares of Common Stock
Outstanding immediately prior to such issuance plus the number of shares of
Common Stock which the aggregate consideration to be paid upon the exchange or
conversion thereof would purchase at the then Current Market Price, and (ii) the
Current Class B Warrant Price in effect immediately prior to such issuance shall
be reduced by multiplying such Current Class B Warrant Price by a fraction (X)
the numerator of which shall be the number of shares for which one Class B
Warrant is exercisable immediately prior to such issuance and (Y) the
denominator of which shall be the number of shares of Common Stock for which one
Class B Warrant is exercisable immediately after such issuance. No further
adjustments of the number of shares of Common Stock for which Class B Warrants
are exercisable or of the Current Class B Warrant Price shall be made upon the
actual issue of such Common Stock upon conversion or exchange of such
Convertible Securities. No adjustment of the number of shares of Common Stock
for which Class B Warrants are exercisable or of the Current Class B Warrant
Price shall be made under this Section 5.4 upon the issuance of any Convertible
Securities which are issued pursuant to the exercise of any warrants or other
subscription or purchase rights therefor, the issuance of which warrants or
other subscription or purchase rights is covered by Section 5.3 or is expressly
exempt from Section 5.3 by reason of the price per share (or effective price per
share) for which Common Stock is issuable upon exchange or conversion of the
Convertible Securities covered thereby.

            5.5. Superseding Adjustment. If, at any time after any adjustment of
the number of shares of Common Stock for which Class B Warrants are exercisable
and the Current Class B Warrant Price shall have been made pursuant to Section
5.3 or Section 5.4 as the result of any issuance of warrants, rights or
Convertible Securities,

            (a) such warrants or rights, or the right of conversion or exchange
      in such other Convertible Securities, shall expire, and all or a portion
      of such warrants or rights,

<PAGE>

      or the right of conversion or exchange with respect to all or a portion of
      such other Convertible Securities, as the case may be, shall not have been
      exercised, or

            (b) the consideration per share for which shares of Common Stock are
      issuable pursuant to such warrants or rights, or the terms of such other
      Convertible Securities, shall be increased solely by virtue of provisions
      therein contained for an automatic increase in such consideration per
      share upon the occurrence of a specified date or event,

then for each outstanding Class B Warrant such previous adjustment shall be
rescinded and annulled and the Additional Shares of Common Stock which were
deemed to have been issued by virtue of the computation made in connection with
the adjustment so rescinded and annulled shall no longer be deemed to have been
issued by virtue of such computation. Thereupon, a recomputation shall be made
of the effect of such rights or options or other Convertible Securities on the
basis of

                  (i) treating the number of Additional Shares of Common Stock
            or other property, if any, theretofore actually issued or issuable
            pursuant to the previous exercise of any such warrants or rights or
            any such right of conversion or exchange, as having been issued on
            the date or dates of any such exercise and for the consideration
            actually received and receivable therefor, and

                  (ii) treating any such warrants or rights or any such other
            Convertible Securities which then remain outstanding as having been
            granted or issued immediately after the time of such increase of the
            consideration per share for which shares of Common Stock or other
            property are issuable under such warrants or rights or other
            Convertible Securities; whereupon a new adjustment of the number of
            shares of Common Stock for which Class B Warrants are exercisable
            and the Current Class B Warrant Price shall be made, which new
            adjustment shall supersede the previous adjustment so rescinded and
            annulled.

            5.6. Other Provisions Applicable to Adjustments under this Section.
The following provisions shall be applicable to the making of adjustments of the
number of shares of Common Stock for which Class B Warrants are exercisable and
the Current Class B Warrant Price provided for in this Section 5:

            (a) Computation of Consideration. To the extent that any Additional
      Shares of Common Stock or any Convertible Securities or any warrants or
      other rights to subscribe for or purchase any Additional Shares of Common
      Stock or any Convertible Securities shall be issued for cash
      consideration, the consideration received by the Company therefor shall be
      the amount of the cash received by the Company therefor, or, if such
      Additional Shares of Common Stock or Convertible Securities are offered by
      the Company for subscription, the subscription price. To the extent that
      such issuance shall be for a consideration other than cash, then, except
      as herein otherwise expressly provided, the amount of such consideration
      shall be deemed to be the fair value of such consideration at the time of
      such issuance as determined in good faith by the Board of Directors of the
      Company. In case any Additional Shares of Common Stock or any

<PAGE>

      Convertible Securities or any warrants or other rights to subscribe for or
      purchase such Additional Shares of Common Stock or Convertible Securities
      shall be issued in connection with any merger in which the Company issues
      any securities, the amount of consideration therefor shall be deemed to be
      the fair value, as determined in good faith by the Board of Directors of
      the Company, of such portion of the assets and business of the
      nonsurviving corporation as such Board in good faith shall determine to be
      attributable to such Additional Shares of Common Stock, Convertible
      Securities, warrants or other rights, as the case may be. The
      consideration for any Additional Shares of Common Stock issuable pursuant
      to any warrants or other rights to subscribe for or purchase the same
      shall be the consideration received by the Company for issuing such
      warrants or other rights plus the additional consideration payable to the
      Company upon exercise of such warrants or other rights. The consideration
      for any Additional Shares of Common Stock issuable pursuant to the terms
      of any Convertible Securities shall be the consideration received by the
      Company for issuing warrants or other rights to subscribe for or purchase
      such Convertible Securities, plus the consideration paid or payable to the
      Company in respect of the subscription for or purchase of such Convertible
      Securities, plus the additional consideration, if any, payable to the
      Company upon the exercise of the right of conversion or exchange in such
      Convertible Securities. In case of the issuance at any time of any
      Additional Shares of Common Stock or Convertible Securities in payment or
      satisfaction of any dividends upon any class of stock other than Common
      Stock, the Company shall be deemed to have received for such Additional
      Shares of Common Stock or Convertible Securities a consideration equal to
      the amount of such dividend so paid or satisfied.

            (b) When Adjustments to Be Made. The adjustments required by this
      Section 5 shall be made whenever and as often as any specified event
      requiring an adjustment shall occur, except that any adjustment of the
      number of shares of Common Stock for which Class B Warrants are
      exercisable that would otherwise be required may be postponed (except in
      the case of a subdivision or combination of shares of the Common Stock, as
      provided in Section 5.1) up to, but not beyond the date of exercise if
      such adjustment either by itself or with other adjustments not previously
      made adds or subtracts less than 1% of the shares of Common Stock for
      which Class B Warrants are exercisable immediately prior to the making of
      such adjustment. Any adjustment representing a change of less than such
      minimum amount (except as aforesaid) which is postponed shall be carried
      forward and made as soon as such adjustment, together with other
      adjustments required by this Section 5 and not previously made, would
      result in a minimum adjustment or on the date of exercise. For the purpose
      of any adjustment, any specified event shall be deemed to have occurred at
      the close of business on the date of its occurrence.

            (c) Fractional Interests. In computing adjustments under this
      Section 5, fractional interests in Common Stock shall be taken into
      account to the nearest 1/100th of a share.

            5.7. Reorganization, Reclassification, Merger, Consolidation or
Disposition of Assets. In case the Company shall, after the Closing Date,
reorganize its capital or reclassify its capital stock (other than in a capital
reorganization or reclassification resulting solely in the

<PAGE>

issuance of Additional Shares of Common Stock or Convertible Securities or
options, warrants or other rights to subscribe for or purchase Additional Shares
of Common Stock or Convertible Securities, the issuance of which is covered by
Section 5.1, 5.3 or 5.4 or is expressly exempt from Section 5.3 or 5.4 by reason
of the price per share (or effective price per share) for which Common Stock is
issuable upon exercise, exchange or conversion thereof), consolidate or merge
with or into another Person (where the Company is not the surviving corporation
or where as a result of such consolidation or merger there is a change in or
distribution with respect to the Common Stock of the Company), or sell, transfer
or otherwise dispose of all or substantially all its property, assets or
business to another Person and, pursuant to the terms of such reorganization,
reclassification, merger, consolidation or disposition of assets, shares of
common stock of the successor, acquiring Person or surviving corporation (or of
the Company if the Company is the surviving corporation), or any cash, shares of
stock or other securities or property of any nature whatsoever (including
warrants or other subscription or purchase rights) in addition to or in lieu of
common stock of the successor, acquiring Person or surviving corporation ("Other
Property"), are to be received by or distributed to the holders of Common Stock
of the Company, then, subject to the terms and conditions of this Warrant
Agreement, each Class B Warrant shall thereafter entitle the Holder thereof to
receive, upon exercise thereof, the number of shares of common stock of the
successor, acquiring Person or surviving corporation (or of the Company, if the
Company is the surviving corporation), and Other Property receivable upon or as
a result of such reorganization, reclassification, merger, consolidation or
disposition of assets by a holder of the number of shares of Common Stock for
which one Class B Warrant is exercisable immediately prior to such event. In
case of any such reorganization, reclassification, merger, consolidation or
disposition of assets, the successor or acquiring corporation (if other than the
Company) shall expressly assume the due and punctual observance and performance
of each and every covenant and condition of this Warrant Agreement to be
performed and observed by the Company and all the obligations and liabilities
hereunder, subject to such modifications as may be deemed appropriate (as
determined by resolution of the Board of Directors of the Company) in order to
provide for adjustments of shares of the Common Stock for which Class B Warrants
are exercisable which shall be as nearly equivalent as practicable to the
adjustments provided for in this Section 5. For purposes of this Section 5.7,
"common stock of the successor, acquiring Person or surviving corporation" shall
include stock of such Person of any class which is not preferred as to dividends
or assets over any other class of stock of such Person and which is not subject
to redemption and shall also include any evidences of indebtedness, shares of
stock or other securities which are convertible into or exchangeable for any
such stock, either immediately or upon the arrival of a specified date or the
happening of a specified event and any warrants or other rights to subscribe for
or purchase any such stock. The foregoing provisions of this Section 5.7 shall
similarly apply to any successive reorganizations, reclassifications, mergers,
consolidations or disposition of assets.

            5.8. Other Action Affecting Common Stock. In case at any time or
from time to time the Company shall take any action in respect of its Common
Stock, other than any action described in this Section 5, then the number of
shares of Common Stock or other stock for which Class B Warrants are exercisable
and/or the Class B Warrant Price thereof shall be adjusted in such manner as may
be equitable in the circumstances consistent with the fundamental intent of such
provisions making an appropriate adjustment in the Current Class B Warrant Price
and the number of Class B Warrant Stock obtainable upon exercise of the Class B
Warrants so as to protect the rights of the Holder of the Class B Warrants.

<PAGE>

            5.9. Certain Limitations. Notwithstanding anything herein to the
contrary, the Company agrees not to enter into any transaction which, by reason
of any adjustment hereunder, would cause the Current Class B Warrant Price to be
less than the par value per share of Common Stock.

6.    NOTICES OF AdJUSTMENT

            Whenever the number of shares of Common Stock for which Class B
Warrants are exercisable, or whenever the Current Class B Warrant Price shall be
adjusted pursuant to Section 5, the Company shall forthwith prepare a
certificate to be executed by the chief financial officer of the Company setting
forth, in reasonable detail, the event requiring the adjustment and the facts,
computations, and method by which such adjustment was calculated (including a
description of the basis on which the Board of Directors of the Company
determined the fair value of any evidences of indebtedness, shares of stock,
other securities or property or warrants or other subscription or purchase
rights referred to in Section 5), specifying the number of shares of Common
Stock for which Class B Warrants are exercisable and (if such adjustment was
made pursuant to Section 5.7) describing the number and kind of any shares of
other common stock or Other Property for which Class B Warrants are exercisable,
and any change in the Current Class B Warrant Price (or, if such adjustment was
made pursuant to Section 5.7, the purchase price or prices at which a share of
such other common stock or Other Property may be purchased upon exercise of
Class B Warrants), after giving effect to such adjustment. The Company shall
promptly cause a signed copy of such certificate to be delivered to the Warrant
Agent and to each Holder in accordance with Section 16.2. The Company shall keep
at its office or agency designated pursuant to Section 12 copies of all such
certificates and cause the same to be available for inspection at said office
during normal business hours by any Holder or any prospective purchaser of Class
B Warrants designated by a Holder thereof.

7.    NO IMPAIRMENT

            The Company shall not by any action, including, without limitation,
amending its certificate of incorporation or through any reorganization,
transfer of assets, consolidation, merger, dissolution, issue or sale of
securities or any other voluntary action, avoid or seek to avoid the observance
or performance of any of the terms of this Warrant Agreement, but will at all
times in good faith assist in the carrying out of all such terms and in the
taking of all such actions as may be necessary or appropriate to protect the
rights of Holders against impairment. Without limiting the generality of the
foregoing, the Company will (a) not increase the par value of any shares of
Common Stock receivable upon the exercise of a Class B Warrant above the amount
payable therefor upon such exercise immediately prior to such increase in par
value, (b) take all such action as may be necessary or appropriate in order that
the Company may validly and legally issue fully paid and nonassessable shares of
Common Stock upon the exercise of a Class B Warrant, and (c) use its best
efforts to obtain all such authorizations, exemptions or consents from any
public regulatory body having jurisdiction thereof as may be necessary to enable
the Company to perform its obligations under this Warrant Agreement.

<PAGE>

8.    RESERVATION AND AUTHORIZATION OF COMMON STOCK; REGISTRATION WITH OR
      APPROVAL OF ANY GOVERNMENTAL AUTHORITY

            From and after the Closing Date, the Company shall at all times
reserve and keep available for issue upon the exercise of Class B Warrants such
number of authorized but unissued shares of Common Stock as will be sufficient
to permit the exercise in full of all outstanding Class B Warrants. All shares
of Common Stock which shall be so issuable, when issued upon exercise of any
Class B Warrant and payment therefor in accordance with the terms of this
Warrant Agreement, shall be duly and validly issued and fully paid and
nonassessable, not subject to preemptive rights, and free from all taxes, liens,
charges, security interests, encumbrances and other restrictions created by or
through the Company.

            Before taking any action which would cause an adjustment reducing
the Current Class B Warrant Price below the then par value, if any, of the
shares of Common Stock issuable upon exercise of the Class B Warrants, the
Company shall take any corporate action which may be necessary in order that the
Company may validly and legally issue fully paid and nonassessable shares of
such Common Stock at such adjusted Current Class B Warrant Price.

            Before taking any action which would result in an adjustment in the
number of shares of Common Stock for which Class B Warrants are exercisable or
in the Current Class B Warrant Price, the Company shall use its best efforts to
obtain all such authorizations or exemptions thereof, or consents thereto, as
may be necessary from any public regulatory body or bodies having jurisdiction
thereof.

            If any shares of Common Stock required to be reserved for issuance
upon exercise of Class B Warrants require registration or qualification with any
governmental authority or other governmental approval or filing under any
federal or state law before such shares may be so issued, the Company will in
good faith (subject to all applicable laws including, without limitation, those
rules and regulations promulgated under the Securities Act) and as expeditiously
as possible and at its expense endeavor to cause such shares to be duly
registered.

9.    STOCK AND WARRANT TRANSFER BOOKS

            The Company will not at any time, except upon dissolution,
liquidation or winding up of the Company, close its stock transfer books or
Class B Warrant transfer books so as to result in preventing or delaying the
exercise or transfer of any Class B Warrant.

10.   SUPPLYING INFORMATION

            The Company shall cooperate with each Holder of a Class B Warrant
and each holder of Class B Warrant Stock in supplying such information as may be
reasonably necessary for such holder to complete and file any information
reporting forms presently or hereafter required by the Commission as a condition
to the availability of an exemption from the Securities Act for the sale of any
Class B Warrant or Class B Warrant Stock.

<PAGE>

11.   LOSS OR MUTILATION

            Upon receipt by the Company from any Holder of evidence satisfactory
to the Company of the ownership of and the loss, theft, destruction or
mutilation of a Class B Warrant Certificate and indemnity satisfactory to the
Company, and in case of mutilation upon surrender and cancellation thereof, the
Company will execute and deliver to such Holder in exchange for or in lieu
thereof a new Class B Warrant Certificate of like tenor and for the same
aggregate number of Class B Warrants.

12.   OFFICE OF COMPANY

            As long as any of the Class B Warrants remain outstanding, the
Warrant Agent, on behalf of the Company, shall maintain an office or agency
(which shall be the principal executive offices of the Warrant Agent) where the
Class B Warrants may be presented for exercise, registration of transfer,
division or combination as provided in this Warrant Agreement.

13.   APPRAISAL

            The determination of the Appraised Value per share of Common Stock
shall be made by an investment banking firm of nationally recognized standing
selected by the Company. The Company shall retain, at its sole cost, such
investment banking firm as may be necessary for the determination of Appraised
Value required by the terms of this Warrant Agreement.

14.   LIMITATION OF LIABILITY

            No provision hereof, in the absence of affirmative action by a
Holder to purchase shares of Common Stock, and no enumeration herein of the
rights or privileges of a Holder hereof, shall give rise to any liability of
such Holder for the purchase price of any Common Stock or as a stockholder of
the Company, whether such liability is asserted by the Company or by creditors
of the Company.

15.   CONCERNING THE WARRANT AGENT

            The Warrant Agent undertakes the duties and obligations imposed by
this Warrant Agreement upon the following terms and conditions, by all of which
the Company and the Holders, by their acceptance of the Class B Warrants, shall
be bound:

            15.1. Correctness of Statement. The statements contained herein and
in the Class B Warrant Certificates shall be taken as statements of the Company,
and the Warrant Agent assumes no responsibility for the correctness of any of
the same except such as describe the Warrant Agent or action to be taken by it.
The Warrant Agent assumes no responsibility with respect to the distribution of
the Class B Warrant Certificates except as herein otherwise provided.

            15.2. Breach of Covenants. The Warrant Agent shall not be
responsible for any failure of the Company to comply with any of the covenants
contained in this Warrant Agreement or in the Class B Warrant Certificates to be
complied with by the Company.

<PAGE>

            15.3. Reliance on Counsel. The Warrant Agent may consult at any time
with counsel satisfactory to it (who may be counsel for the Company) and the
Warrant Agent shall incur no liability or responsibility to the Company or to
any Holder in respect of any action taken, suffered or omitted by it hereunder
in good faith and in accordance with the opinion or the advice of such counsel.

            15.4. Reliance on Documents. The Warrant Agent shall incur no
liability or responsibility to the Company or to any Holder for any action
taken, suffered or omitted in reliance on any Class B Warrant Certificate,
certificate of shares, notice, resolution, waiver, consent, order certificate,
or other paper, document or instrument believed by it to be genuine and to have
signed, sent or presented by the proper party or parties.

            15.5. Compensation and Indemnification. The Company agrees to pay to
the Warrant Agent reasonable compensation for all services rendered by the
Warrant Agent in the execution of this Warrant Agreement, to reimburse the
Warrant Agent for all expenses, taxes and governmental charges and other charges
of any kind and nature incurred by the Warrant Agent in the execution of this
Warrant Agreement to indemnify the Warrant Agent and save it harmless against
any and all liabilities, including judgments, costs and counsel fees, for
anything done or omitted by the Warrant Agent in the execution of its duties and
powers under this Warrant Agreement, except for such liabilities that arise as a
result of the Warrant Agent's negligence, willful misconduct or bad faith.

            15.6. Legal Proceedings. The Warrant Agent shall be under no
obligation to institute any action, suit or legal proceeding or to take any
other action likely to involve expense unless the Company or one or more Holders
shall furnish the Warrant Agent with reasonable security and indemnity for any
costs and expenses which may be incurred, but this provision shall not affect
the power of the Warrant Agent to take such action as it may consider proper,
whether with or without any such security indemnity. All rights of action under
this Warrant Agreement or under any of the Class B Warrant Certificates may be
enforced by the Warrant Agent without possession of any of the Class B Warrant
Certificates or the production thereof at any trial or other proceeding relative
thereto, and any such action, suit or proceeding instituted by the Warrant Agent
shall be brought in its name as Warrant Agent, and any recovery of judgment
shall be for the ratable benefit of the Holders, as their respective rights or
interests may appear.

            15.7. Other Transactions in Securities of the Company. Except as
prohibited by law, the Warrant Agent, and any stockholder, director, officer or
employee of it, may buy, sell or deal in any of the Class B Warrants or other
securities of the Company or become pecuniarily interested in any transaction in
which the Company may be interested, or contract with or lend money to the
Company or otherwise act as fully and freely as though it were not Warrant Agent
under this Warrant Agreement. Nothing herein shall preclude the Warrant Agent
from acting in any other capacity for the Company or for any other legal entity.

            15.8. Liability of Warrant Agent. The Warrant Agent shall act
hereunder solely as agent for the Company, and its duties shall be determined
solely by the provisions hereof. The Warrant Agent shall not be liable for
anything which it may do or refrain from doing in

<PAGE>

connection with this Warrant Agreement except for its own negligence, willful
misconduct or bad faith.

            15.9. Adjustments. The Warrant Agent shall not at any time be under
any duty or responsibility to any Holder to make or cause to be made any
adjustment of the Current Class B Warrant Price or number of shares of Class B
Warrant Stock deliverable as provided in this Warrant Agreement, or to determine
whether any facts exist which may require any of such adjustments, or with
respect to the nature or extent of any such adjustments, when made, or with
respect to the method employed in making the same. The Warrant Agent shall not
be accountable with respect to the validity or value or the kind or amount of
any shares of Class B Warrant Stock or of any securities or property which may
at any time be issued or delivered upon the exercise of any Class B Warrant or
with respect to whether any such shares of Class B Warrant Stock or other
securities will be, when issued, validly issued, fully paid and nonassessable,
and makes no representation with respect thereto.

16.   MISCELLANEOUS

            16.1. Nonwaiver. No course of dealing or any delay or failure to
exercise any right hereunder on the part of any Holder shall operate as a waiver
of such right or otherwise prejudice Holder's rights, powers or remedies.

            16.2. Notice Generally. Any notice, demand, request, consent,
approval, declaration, delivery or other communication hereunder to be made
pursuant to the provisions of this Warrant Agreement shall be sufficiently given
or made if in writing and either (i) delivered in person with receipt
acknowledged, (ii) sent by registered or certified mail, return receipt
requested, postage prepaid, or (iii) by telecopy and confirmed by telecopy
answer back, addressed as follows:

            (a) If to any Holder or holder of Class B Warrant Stock, at its last
      known address appearing on the books of the Company maintained by the
      Warrant Agent for such purpose;

            (b) If to the Warrant Agent, to Wachovia Bank, N.A., as Warrant
      Agent, Corporate Trust Group, Corporate Actions Department, 1525 West W.T.
      Harris Blvd., Bldg. 3C3, Charlotte, NC 28262-1153 (overnight courier)
      28288-1153 (first class mail); or

            (c) If to the Company, at 3445 Peachtree Road, N.E. - Suite 700,
      Atlanta, Georgia 30326, Attn: General Counsel;

or at such other address as may be substituted by notice given as herein
provided. The giving of any notice required hereunder may be waived in writing
by the party entitled to receive such notice. Every notice, demand, request,
consent, approval, declaration, delivery or other communication hereunder shall
be deemed to have been duly given or served on the date on which personally
delivered, with receipt acknowledged, telecopied and confirmed by telecopy
answerback, or three (3) Business Days after the same shall have been deposited
in the United States mail. Failure or delay in delivering copies of any notice,
demand, request, approval, declaration, delivery or other communication to the
person designated above to receive a copy

<PAGE>

shall in no way adversely affect the effectiveness of such notice, demand,
request, approval, declaration, delivery or other communication.

            16.3. Appointment of Warrant Agent. The Company hereby appoints the
Warrant Agent to act as agent for the Company in accordance with the
instructions set forth herein, and the Warrant Agent hereby accepts such
appointment.

            16.4. Successors and Assigns. This Warrant Agreement and the rights
evidenced hereby shall inure to the benefit of and be binding upon the
successors of the Company, the Warrant Agent and the successors and assigns of
each Holder. The provisions of this Warrant Agreement are intended to be for the
benefit of all Holders from time to time of a Class B Warrant or Class B
Warrants and holders of Class B Warrant Stock, and shall be enforceable by any
such Holder or holder of Class B Warrant Stock.

            16.5. Amendment. The Company and the Warrant Agent may from time to
time supplement or amend this Warrant Agreement without the approval of any
Holders in order to cure any ambiguity or to correct or supplement any provision
contained herein which may be defective or inconsistent with any other provision
herein, or to make any other provisions or change in regard to matters or
questions arising hereunder which the Company and the Warrant Agent may deem
necessary or desirable and which shall not adversely affect the interests of any
Holder.

            16.6. Severability. Wherever possible, each provision of this
Warrant Agreement shall be interpreted in such manner as to be effective and
valid under applicable law, but if any provision of this Warrant Agreement shall
be prohibited by or invalid under applicable law, such provision shall be
ineffective to the extent of such prohibition or invalidity, without
invalidating the remainder of such provision or the remaining provisions of this
Warrant Agreement.

            16.7. Headings. The headings used in this Warrant Agreement are for
the convenience of reference only and shall not, for any purpose, be deemed a
part of this Warrant Agreement.

            16.8. Governing Law. This Warrant Agreement shall be governed by the
laws of the State of Delaware, without regard to the provisions thereof relating
to conflict of laws.

<PAGE>

            IN WITNESS WHEREOF, the Company and the Warrant Agent have caused
this Warrant Agreement to be duly executed as of the date first written above.

                                       LODGIAN, INC.

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

                                       WACHOVIA BANK, N.A.

                                       By: /s/  Ted Wiener
                                          ------------------------------------
                                          Name:  Ted Wiener
                                          Title: Assistant Vice President

<PAGE>

                                    EXHIBIT A

                       FORM OF CLASS B WARRANT CERTIFICATE

                                 CLASS B WARRANT

                                  LODGIAN, INC.

No. __________________                          [______] Class B Warrants

              Incorporated Under the Laws of the State of Delaware

            THIS CERTIFIES THAT, for value received, ______________________, the
registered holder hereof or registered assigns (the "Holder"), is the owner of
the number of Class B Warrants set forth above, each of which represents the
right to purchase from LODGIAN, INC., a Delaware corporation (the "Company"), at
any time commencing with the opening of business on November __, 2002, and until
the close of business on November __, 2009 (the "Expiration Date"), at the
purchase price of $25.44 (subject to adjustment as described below) (the
"Current Class B Warrant Price"), one fully paid and nonassessable share of
Common Stock, par value $0.01 per share (the "Common Stock"), of the Company.
The number of shares of Common Stock purchasable upon exercise of each Class B
Warrant and the Current Class B Warrant Price per whole share shall be subject
to adjustment from time to time as set forth in the Warrant Agreement referred
to below.

            The Class B Warrants represented hereby may be exercised in whole or
in part by presentation of this Class B Warrant Certificate with the
Subscription Form included herein duly executed, which signature shall, in
certain circumstances (as indicated on the Subscription Form), be guaranteed by
a bank or trust company having an office or correspondent in the United States
or a broker or dealer which is a member of a registered securities exchange or
the National Association of Securities Dealers, Inc., and simultaneous payment
of the exercise price thereof (in the form indicated on the Subscription Form)
to the Company at 3445 Peachtree Road - Suite 700, Atlanta, Georgia 30326, Attn:
General Counsel, or as otherwise provided in the Warrant Agreement (defined
below).

            The Class B Warrants represented hereby are of a duly authorized
issue of Class B Warrants evidencing the right to purchase up to an aggregate of
1,029,366 shares of Common Stock and are issued under and in accordance with a
Warrant Agreement (the "Warrant Agreement"), dated as of November __, 2002,
between the Company and Wachovia Bank, N.A. (the "Warrant Agent") and are
subject to the terms and provisions contained in the Warrant Agreement, to all
of which the Holder of this Class B Warrant Certificate by acceptance hereof
consents. A copy of the Warrant Agreement is available for inspection at the
principal office of the Company.

            Upon any partial exercise of the Class B Warrants represented
hereby, there shall be countersigned and issued to the Holder hereof a new
Warrant Certificate in respect of the shares of Common Stock as to which the
Class B Warrants represented hereby shall not have

<PAGE>

been exercised. The Class B Warrants represented hereby may be exchanged at the
office of the Warrant Agent by surrender of this Class B Warrant Certificate
properly endorsed either separately or in combination with one or more other
Class B Warrant Certificates for one or more new Class B Warrant Certificates
representing Class B Warrants entitling the Holder thereof to purchase the same
aggregate number of shares of Common Stock as were purchased on exercise of the
Class B Warrant or Class B Warrants exchanged. No fractional shares will be
issued upon the exercise of these Class B Warrants. Subject to compliance with
applicable securities laws, the Class B Warrants represented hereby are
transferable at the office of the Warrant Agent, in the manner and subject to
the limitations set forth in the Warrant Agreement.

            The Holder hereof may be treated by the Company, the Warrant Agent
and all other persons dealing with this Warrant Certificate as the absolute
owner hereof for any purpose and as the person entitled to exercise the rights
represented hereby, or to the transfer hereof on the books of the Company, any
notice to the contrary notwithstanding, and until such transfer on such books,
the Company may treat the Holder hereof as the owner for all purposes.

            The Class B Warrants represented hereby do not entitle any Holder
hereof to any of the rights of a shareholder of the Company.

            The Class B Warrants represented hereby shall not be valid or
obligatory for any purpose until this Warrant Certificate shall have been
countersigned by the Warrant Agent.

<PAGE>

            Witness the facsimile seal of the Company and the facsimile
signatures of its duly authorized officers.

Dated: [_______________]

Countersigned and Registered:

WACHOVIA BANK, N.A.
as Warrant Agent

By:
    ---------------------------
       Authorized Signature

                                       LODGIAN, INC.

                                       By:
                                           ---------------------------------
                                                    President or
                                                   Vice President

                                       Attest:
                                               -----------------------------
                                                    Secretary or
                                                 Assistant Secretary

<PAGE>

                                    EXHIBIT B

                                SUBSCRIPTION FORM

          [To be executed only upon exercise of a Warrant or Warrants]

            The undersigned ___________ (the "Registered Holder") hereby
irrevocably exercises the right to purchase _______ shares of Common Stock of
LODGIAN, INC., an entity organized and existing under the laws of the State of
Delaware (the "Company"), evidenced by the attached Warrant Certificate, and
herewith makes payment of the exercise price against delivery of the shares with
respect to such shares in full in the form of (check the appropriate box) (i)
certified or official bank check or wire transfer in the amount of $________;
(ii) by surrendering ______ shares of Class B Warrant Stock, which represent the
amount of Class B Warrant Stock, as provided in the Warrant Agreement, to be
cancelled in connection with such exercise; or (iii) by the surrender to the
Company of the attached original debt securities of the Company in the principal
amount (plus accrued interest and premium (if any) or less any unamortized
discount thereon) of $______, all in accordance with the conditions and
provisions of the Warrant Agreement, and requests that certificates for the
shares of Common Stock hereby purchased (and any securities or other property
issuable upon such exercise) be issued in the name of and delivered to
[_____________] whose address is [______________________________] and, if such
shares of Common Stock shall not include all of the shares of Common Stock
issuable as provided in the Class B Warrant Certificate, that a new Class B
Warrant Certificate of like tenor and date for the balance of the shares of
Common Stock issuable thereunder be delivered to the undersigned.

                                          ------------------------------------
                                          (Name of Registered Owner)

                                          ------------------------------------
                                           (Signature of Registered Owner)

                                          ------------------------------------
                                           (Street Address)

-----------------------------             ------------------------------------
(Signature Guarantee)                     (City)(State) (Zip Code)

NOTICE:     The signature on this subscription form must correspond with the
            name as written upon the face of the Class B Warrant Certificate in
            every particular, without alteration or enlargement or any change
            whatsoever.

<PAGE>

            Witness the facsimile seal of the Company and the facsimile
signatures of its duly authorized officer.

Dated: [_______________]

Countersigned and Registered:

WACHOVIA BANK, N.A.
as Warrant Agent

By:
   ---------------------------
   Authorized Signature
   [Name]
   [Title]

                                       LODGIAN, INC.

                                       By:
                                          --------------------------------------
                                          President and Chief Executive Officer

                                       Attest:
                                               ---------------------------------
                                                       Secretary

<PAGE>

                                    EXHIBIT C

                                 ASSIGNMENT FORM

            FOR VALUE RECEIVED the undersigned registered owner of the Class B
Warrant(s) represented by Class B Warrant Certificate No. [_______] hereby
sells, assigns and transfers unto the Assignee named below all of the rights of
the undersigned under the Warrant Agreement, with respect to the number of Class
B Warrants set forth below:

Name and Address of Assignee                    No. of Class B Warrants
----------------------------                    -----------------------

and does hereby irrevocably constitute and appoint [_____________________]
attorney-in-fact to register such transfer on the books of LODGIAN, INC.
maintained for the purpose, with full power of substitution in the premises.

Dated:                                    Print Name:
       ----------------------                         -------------------------
                                          Signature:
                                                      -------------------------
                                          Witness:
                                                      -------------------------

-------------------------------
    (Signature Guarantee)

NOTICE:     The signature on this assignment must correspond with the name as
            written upon the face of the Warrant in every particular, without
            alteration or enlargement or any change whatsoever.EXHIBIT 10.1

                          REGISTRATION RIGHTS AGREEMENT

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

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

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

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

                                   ARTICLE I

                                   DEFINITIONS

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

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

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

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

<PAGE>

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

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

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

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

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

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

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

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

            Permitted Transferee: means:

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

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

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

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

<PAGE>

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

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

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

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

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

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

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

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

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

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

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

<PAGE>

                                   ARTICLE II

                               SHELF REGISTRATION

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

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

                                  ARTICLE III

                             PIGGYBACK REGISTRATION

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

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

                    (Y) use its best efforts to include in such Piggyback
Registration and in any underwriting involved therein up to all of the
Registrable Securities which the Holders request in writing to be so included
within 20 days after receipt of such written notice from the

<PAGE>

Company. Any Holder of Registrable Securities shall have the right to withdraw
its request for inclusion of its Registrable Securities in any registration
statement pursuant to this Section 3 by giving written notice to the Company,
within a reasonable time, of its request to withdraw. The Company's obligations
under this Section 3.1 are subject to the provisions of Section 4.1.

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

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

                                   ARTICLE IV

              PERMITTED DELAYS IN REGISTRATION; HOLDBACK AGREEMENTS

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

<PAGE>

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

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

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

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

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

                                   ARTICLE V

                             REGISTRATION PROCEDURES

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

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

            (b) in connection with the preparation and filing of a registration
statement, give the Holders, the underwriters, if any, and their respective
counsel, the opportunity to participate (including the inclusion of any
reasonable comments proposed by the Holders) in the preparation of such
registration statement, each prospectus included therein or filed with the
Commission, and each amendment thereof or supplement thereto (provided that the
Company shall not file any such registration statement including Registrable
Securities or amendment thereto or any related prospectus or any supplement
thereto to which such Holders or the managing underwriter or underwriters, if
any, shall reasonably object in writing), and give each

<PAGE>

of them such access to its books and records and such opportunities to discuss
the business of the Company with its officers, its counsel and the independent
public accountants who have certified its financial statements as shall be
necessary, in the opinion of the Holder's and such underwriters' respective
counsel, to conduct a reasonable due diligence investigation within the meaning
of the Securities Act;

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

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

            (e) register or qualify the Registrable Securities under such other
securities or Blue Sky laws of such jurisdictions as shall be reasonably
requested by any of the Holders for the distribution of the Registrable
Securities covered by the registration statement to be sold by such Holders; and
to take any other action which may be reasonably necessary to enable such
Holders to consummate the disposition in such jurisdictions in the United States
of such Registrable Securities owned by such Holders, provided that the Company
shall not be required in connection therewith or as a condition thereto to
qualify to do business or to file a general consent to service of process in any
such states or jurisdictions, or to subject itself to taxation in any such
jurisdiction; (f) enter into an underwriting agreement in customary form and
substance reasonably satisfactory to the Company, the Holders and the managing
underwriter or underwriters of the public offering of Registrable Securities, if
the offering is to be underwritten, in whole or in part, provided that the
Holders shall be a party to such underwriting agreement and the Holders may, at
their option, require that any or all of the conditions precedent to the
obligations of such underwriters under such underwriting agreement be conditions
precedent to the obligations of the Holders. The Holders shall not be required
to make any representations or warranties to or agreement with the Company or
the underwriters other than representations, warranties or agreements regarding
the Holders and their intended method of distribution and any other
representation or warranty required by law;

            (g) promptly notify the Holders at any time when a prospectus
relating thereto covered by such registration statement is required to be
delivered under the Securities Act, of the happening of any event as a result of
which the prospectus included in such registration statement, as then in effect,
includes an untrue statement of a material fact or omits to state a material
fact required to be stated therein or necessary to make the statements therein
not misleading in the light of the circumstances then existing, and at the
request of any such Holder prepare and furnish to such Holder a reasonable
number of copies of a supplement to or an amendment of such prospectus as may be
necessary so that, as thereafter delivered to the purchasers of such securities,
such prospectus shall not include an untrue statement of a material fact or omit
to state a material fact required to be stated therein or necessary to make the

<PAGE>

statements therein not misleading in light of the circumstances then existing,
provided that each Holder agrees that upon receipt of any notice from the
Company of the happening of any event of the kind described in this Section
5.1(g), such Holder shall forthwith discontinue its disposition of Registrable
Securities pursuant to the registration statement relating to such Registrable
Securities until such Holder's receipt of the copies of the supplemented or
amended prospectus contemplated by this Section 5.1(g) and, if so directed by
the Company, such Holder shall use its reasonable best efforts to deliver to the
Company all copies, other than permanent file copies then in such Holder's
possession, of the prospectus relating to such Registrable Securities current at
the time of receipt of such notice;

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

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

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

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

                                   ARTICLE VI

                                 INDEMNIFICATION

            6.1. Indemnification by the Company. In the event of any
registration of any Registrable Securities pursuant to this Agreement under the
Securities Act, the Company will, and hereby does, indemnify and hold harmless
each participating Holder, each of its trustees, beneficiaries, directors,
officers, employees, agents, advisors and controlling persons, if any,

<PAGE>

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

            6.2. Indemnification by Participating Holders. Each of the
participating Holders whose Registrable Securities are included or to be
included in any registration statement, as a condition to including Registrable
Securities in such registration statement, agrees to indemnify and hold harmless
(in the same manner and to the same extent as set forth in Section 6.1) the
Company, each director of the Company, each officer of the Company and each
other Person, if any, who controls the Company within the meaning of the
Securities Act, and each other Person who participates as an underwriter in the
offering or sale of such securities and each other Person who controls any such
underwriter within the meaning of the Securities Act with respect to any untrue
statement or alleged untrue statement of a material fact in or omission or
alleged

<PAGE>

omission to state a material fact from such registration statement, any
preliminary prospectus, final prospectus or summary prospectus contained
therein, or any amendment or supplement thereto, if such untrue statement or
alleged untrue statement or omission or alleged omission was made in reliance
upon and in conformity with written information furnished to the Company
pertaining to such participating Holder by such participating Holder
specifically stating that it is for use in the preparation of such registration
statement, preliminary prospectus, final prospectus, summary prospectus,
amendment or supplement. The obligation to provide indemnification pursuant to
this Section 6.2 shall be several, and not joint and several, among the
participating Holders. The indemnity provided by each Holder under this Section
6.2 shall be limited to an amount equal to the net proceeds received by such
Holder from the sale of Registrable Securities pursuant to such registration
statement. Such indemnity shall remain in full force and effect regardless of
any investigation made by or on behalf of the Company or any such director,
officer, or any such underwriter or controlling person and shall survive the
transfer of such securities by any participating Holder.

            6.3. Notices of Claims. Promptly after receipt by an indemnified
party of notice of the commencement of any action or proceeding involving a
claim referred to in Section 6.1 or 6.2, such indemnified party will, if a claim
in respect thereof is to be made against an indemnifying party, give written
notice to the latter of the commencement of such action; provided, however, that
the failure of any indemnified party to give notice as provided herein shall not
relieve the indemnifying party of its obligations under Section 6.1 or 6.2,
except to the extent that the indemnifying party is actually prejudiced by such
failure to give notice. In case any such action is brought against an
indemnified party, unless in such indemnified party's reasonable judgment a
conflict of interest between such indemnified and indemnifying parties may exist
in respect of such claim, the indemnifying party shall be entitled to
participate in and to assume the defense thereof, jointly with any other
indemnifying party similarly notified to the extent that it may wish, with
counsel reasonably satisfactory to such indemnified party, and after notice from
the indemnifying party to such indemnified party of its election so to assume
the defense thereof, the indemnifying party shall not be liable to the
indemnified party for any legal or other expenses subsequently incurred by the
latter in connection with the defense thereof other than reasonable costs of
investigation, provided that the indemnified party may participate in such
defense at the indemnified party's expense and provided, further, that all
indemnified parties shall have the right to employ one counsel to represent them
if, in the reasonable judgment of such indemnified parties, it is advisable for
them to be represented by separate counsel by reason of having legal defenses
which are different from or in addition to those available to the indemnifying
party, and in that event the reasonable fees and expenses of such one counsel
shall be paid by the indemnifying party. If the indemnifying party is not
entitled to, or elects not to, assume the defense of a claim, it will not be
obligated to pay the fees and expenses of more than one counsel for the
indemnified parties with respect to such claim, unless in the reasonable
judgment of any indemnified party a conflict of interest may exist between such
indemnified party and any other indemnified parties with respect to such claim,
in which event the indemnifying party shall be obligated to pay the fees and
expenses of such additional counsel for the indemnified parties. No indemnifying
party shall consent to entry of any judgment or enter into any settlement
without the consent of the indemnified party which does not include as an
unconditional term thereof the giving by the claimant or plaintiff to such
indemnified party of a release from all liability in respect to such claim or
litigation. No indemnifying party shall be subject to any liability for any
settlement made without its consent, which consent shall not be unreasonably
withheld.

<PAGE>

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

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

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

                                  ARTICLE VII

                              REGISTRATION EXPENSES

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

<PAGE>

the expenses associated with preparing any special audit and comfort letters
required by or incident to such performance or compliance).

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

                                  ARTICLE VIII

                             INFORMATION BY HOLDERS

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

                                   ARTICLE IX

                                 RULE 144 SALES

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

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

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

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

<PAGE>

                                   ARTICLE X

                               TRANSFER OF RIGHTS

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

                                   ARTICLE XI

                                   TERMINATION

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

                                  ARTICLE XII

                                  MISCELLANEOUS

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

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

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

<PAGE>

      (a)   if to the Company, to:

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

            with a copy to:

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

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

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

            12.5. Consent to Jurisdiction and Service of Process. Each of the
Company and each Holder hereby irrevocably appoints the Corporation Trust
Company, at its office at 1209 Orange Street, Wilmington, DE 19801, its lawful
agent and attorney to accept and acknowledge service of any and all process
against it in any action, suit or proceeding arising in connection with this
Agreement and upon whom such process may be served, with the same effect as if
such party were a resident of the State of Delaware and had been lawfully served
with such process in such jurisdiction, and waives all claims of error by reason
of such service, provided that in the case of any service upon such agent and
attorney, the party effecting such service shall also deliver a copy thereof to
each other party at the address and in the manner specified in Section 12.3.
Each of the Company and each Holder will enter into such agreements with such
agent as may be necessary to constitute and continue the appointment of such
agent hereunder. In the event that such agent and attorney resigns or otherwise
becomes incapable of acting as such, each party will appoint a successor agent
and attorney in Wilmington, Delaware, reasonably satisfactory to the Company,
with like powers. Each party hereby irrevocably submits to the non-exclusive
jurisdiction of the United States District Court for the District of Delaware or
any court of the State of Delaware located in the City of Wilmington in any such
action, suit or proceeding, and agrees that any such action, suit or proceeding
shall be brought only in such court (and waives any objection based on forum non
conveniens or any other objection to venue therein); provided, however, that
such consent to jurisdiction is solely for the purpose referred to in this
Section 12.5 and shall not be deemed to be a general submission to the
jurisdiction of said courts or in the State of Delaware other than for such
purpose. Nothing herein shall affect the right of any party to serve process in
any other manner permitted by law or to commence legal proceedings or otherwise
proceed against any other party in any other jurisdiction.

<PAGE>

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

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

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

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

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

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

                            [SIGNATURE PAGE FOLLOWS]

<PAGE>

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

                        LODGIAN, INC.

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

                        OCM REAL ESTATE OPPORTUNITIES FUND II, L.P.
                        By: OAKTREE CAPITAL MANAGEMENT, LLC,
                            its General Partner

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

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

                        BRE/HY FUNDING, L.L.C.

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

                        THIRD AVENUE TRUST, on behalf of THIRD AVENUE VALUE
                            FUND

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

<PAGE>

                        THIRD AVENUE TRUST, on behalf of THIRD AVENUE REAL
                            ESTATE VALUE FUND

                        By:_____________________________________________
                            Name:
                            Title:

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

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

                        GENERAL MOTORS TRUST COMPANY

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

<PAGE>

                                   SCHEDULE A

NAME OF SHAREHOLDER   NUMBER OF SHARES   NUMBER OF SHARES OF   NUMBER OF SHARES
                      OF ORIGINAL        ORIGINAL ISSUE        OF ORIGINAL ISSUE
                      ISSUE COMMON       PREFERRED STOCK       WARRANTS
                      STOCK

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