Document:

<PAGE>

                                                                  Exhibit 10.3

                          U.S. FRANCHISE SYSTEMS, INC.
                              EMPLOYMENT AGREEMENT

         This EMPLOYMENT AGREEMENT (the "AGREEMENT"), is made as of June 30,
2000, by and between U.S. FRANCHISE SYSTEMS, INC., a Delaware corporation having
its principal place of business in Atlanta, Georgia (the "COMPANY"); and STEVEN
ROMANIELLO, an individual resident of the State of Georgia ("EMPLOYEE"). This
Agreement shall become effective upon the Effective Date. The Company desires to
continue the employment of Employee and Employee desires to continue to be
employed by the Company, on the terms and conditions set forth in this
Agreement. Accordingly, both parties, in consideration of the mutual and
exchanged promises and agreements contained herein and of wages paid and
services rendered hereunder and other consideration the receipt and sufficiency
of which are acknowledged, hereby agree as follows:

         SECTION 1.  DEFINITIONS.  For purposes hereof, the following terms
shall be defined as follows:

         a. "Affiliate" shall mean, with respect to a specified entity, an
entity that directly, or indirectly through one or more intermediaries, controls
or is controlled by or is under common control with, the entity specified. For
purposes of this definition, the term "control" (including the terms "controlled
by" and "under common control with") means possession, directly or indirectly,
of the power to direct or cause the direction of the management and policies of
an entity, whether through ownership of voting securities, by contract, or
otherwise.

         b. "Base Compensation" shall mean with respect to each calendar year,
the sum of (i) $3,000 times the number of newly executed Microtel franchise and
license agreements (the "MICROTEL FRANCHISE AGREEMENTS") in that calendar year,
up to a maximum of 110 such newly executed Microtel Franchise Agreements in any
calendar year, PLUS (ii) $2,000 times the number of newly executed Microtel
Franchise Agreements in that calendar year in excess of 110, PLUS (iii) $2,000
times the number of newly executed franchise and license agreements (excluding
Microtel Franchise Agreements) of all the Company's currently existing or
hereafter acquired or licensed brands in that calendar year.

         c. "Board" or "Board of Directors" shall mean Board of Directors of the
Company.

         d. "Cause" shall mean:

            (i) the conviction of or plea of guilty or nolo contendere by
         Employee of any felony other than a traffic-related offense;

           (ii) fraud, theft, embezzlement or intentional misappropriation by
         Employee of funds of the Company or the Group;

<PAGE>

                  (iii) repeated neglect by Employee of his duties hereunder
         (other than on account of Disability); provided, however, that Cause as
         defined in this clause (iii) shall in no event mean:

                        (a) bad judgment or incompetence;

                        (b) negligence other than repeated neglect of duty or
                  gross negligence;

                        (c) dissatisfaction by the Company with Employee's
                  performance of his duties hereunder (other than as a result of
                  any of the occurrences set forth in clauses (i), (ii) or (iii)
                  set forth above) or a bona fide disagreement over corporate
                  policy;

                        (d) any act or omission believed by Employee in good
                  faith to have been in the interest of the Company (without
                  intent of Employee to gain therefrom, directly or indirectly,
                  a profit to which Employee was not legally entitled), unless
                  such act or omission is in contravention of a lawful and
                  reasonable direction of the Company's Board of Directors;

                  (iv) a material breach of Employee's obligations pursuant to
         this Employment Agreement.

Notwithstanding the foregoing, Employee shall not be deemed to have repeatedly
neglected his duties within the meaning of clause (iii) or materially breached
his obligations under this Employment Agreement within the meaning of clause
(iv) above unless the Company gives written notice to Employee thereof, and
Employee fails to remedy the matter within 15 days after receiving such notice.

         e. "Change of Control" shall mean any one of the following events:

            (i) Any "Person" (having the meaning ascribed to such term in
         Section 3(a)(9) of the Exchange Act and used in Sections 13(d) and
         14(d) thereof, including a "group" within the meaning of Section
         13(d)(3)) other than a member of the Investor Group acquires
         "Beneficial Ownership" (within the meaning of Rule 13d-3 under the
         Exchange Act) of 50% or more of the combined voting power of the
         Company's then outstanding voting securities entitled to vote generally
         in the election of directors ("VOTING SECURITIES"); provided, however,
         that in determining whether a Change of Control has occurred, Voting
         Securities which are held or acquired by (i) the Company or any of its
         subsidiaries or (ii) an employee benefit plan (or a trust forming a
         part thereof) maintained by the Company or any of its subsidiaries
         shall not constitute a Change of Control;

            (ii) Consummation of a merger, consolidation or reorganization
         or approval by the Company's stockholders of a liquidation or
         dissolution of the Company or the

                                        2

<PAGE>

         occurrence of a liquidation or dissolution of the Company ("BUSINESS
         COMBINATION"), unless, following such Business Combination:

                     (a) the Persons with Beneficial Ownership of the Company,
              immediately before such Business Combination, have Beneficial
              Ownership of more than 25% of the combined voting power of the
              then outstanding voting securities entitled to vote generally in
              the election of directors of the corporation (or in the election
              of a comparable governing body of any other type of entity)
              resulting from such Business Combination (including, without
              limitation, an entity which as a result of such transaction owns
              the Company or all or substantially all of the Company's assets
              either directly or through one or more subsidiaries) (the
              "SURVIVING COMPANY");

                     (b) the individuals who were members of the Incumbent Board
              immediately prior to the execution of the initial agreement
              providing for such Business Combination constitute more than 50%
              of the members of the board of directors (or comparable governing
              body of a noncorporate entity) of the Surviving Company; and

                     (c) no Person (other than the Company, any of its
              subsidiaries or any employee benefit plan (or any trust forming a
              part thereof) maintained by the Company, the Surviving Company or
              any Person who immediately prior to such Business Combination had
              Beneficial Ownership of 25% or more of the then outstanding Voting
              Securities) has Beneficial Ownership of 50% or more of the then
              combined voting power of the Surviving Company's then outstanding
              voting securities;

         provided that no change of control shall be deemed to have occurred
         under this subparagraph (ii) if the Investor Group shall continue to
         have Beneficial Ownership of more than 25% of the then combined voting
         power of the then outstanding voting securities and no other Person has
         Beneficial Ownership of a greater percentage of the then combined
         voting power;

                  (iii) Approval by the Company's stockholders of an agreement
         for the assignment, sale, conveyance, transfer, lease or other
         disposition (other than a transaction described in the preceding clause
         (ii)) of all or substantially all of the assets of the Company to any
         Person (other than a subsidiary of the Company or other entity, the
         Persons with Beneficial Ownership of which are the same Persons with
         Beneficial Ownership of the Company and such Beneficial Ownership is in
         substantially the same proportions), or the occurrence of the same; and

                  (iv) The Shares (a) are held of record by less than 300
         persons, (b) cease to be listed on a national securities exchange, or
         (c) cease to be authorized to be quoted in an inter-dealer quotation
         system of a registered national securities association.

                                        3

<PAGE>

         f. "Disability" shall be defined as the inability for a continuous
period of six months or for a total of six months in any 12 month period of
Employee to render substantial services to the Company or to perform the daily
functions required of such Employee due to accident, illness, sickness, or other
physical or mental condition, as certified to the Company by a physician
licensed to practice medicine in the State of Georgia.

         g. "Effective Date" shall be the Closing Date as defined in the
Recapitalization Agreement dated June 2, 2000, among the Company, SDI, Inc.,
Meridian Associates, L.P., and HSA Properties Inc.

         h. "Exchange Act" shall mean the Securities Exchange Act of 1934, as
amended.

         i. "Good Reason" means the occurrence of any one of the following
events:

            (i) any material breach (which is not corrected within 30 days
         following written notice from Employee to the Company specifying such
         breach) by the Company of its obligations under this Agreement
         (including, without limitation, (a) the refusal or failure of the
         Company to pay the compensation and/or benefits due under this
         Agreement, (b) any diminution (without Employee's consent), other than
         an insignificant or incidental diminution, in Employee's duties,
         authority, responsibilities or reporting requirements (whether or not
         accompanied by a change in title), (c) the failure to elect Employee to
         and continue his membership on the Board of Directors of the Company,
         or (d) the involuntary relocation of Employee outside Atlanta, Georgia
         or Chicago, Illinois, or

            (ii) resignation by Employee at the written request of the
         Company which has been authorized by the Company's Board of Directors.

         j. "Group" shall mean the Company and any other Affiliate of the
Company, including any subsidiary entity; and shall also include all other
companies or entities under common management as Company even if not an
Affiliate.

         k. "Investor Group" means Meridian Associates, L.P., SDI, Inc., HSA
Properties, Inc., and any and all of the lineal descendants of Nicholas J.
Pritzker, deceased, any and all trusts for their benefit or for the benefit of
any of their spouses, and any Person owned or controlled by such lineal
descendants or trusts and any Affiliate of any of the foregoing.

         l. "Share" shall mean a share of common stock of the Company.

         m. "Year" shall mean the twelve calendar month period commencing on the
Effective Date if the Effective Date is the first day of a given calendar month,
and as of the first day of the first calendar month immediately following if the
Effective Date is a date other than the first day of a given calendar month, and
ending on the last day of the twelfth full calendar month thereafter.

                                        4

<PAGE>

         SECTION 2.  EMPLOYMENT.

         a. Subject to the terms contained in this Agreement, the Company hereby
employs Employee and Employee hereby accepts such employment. Employee shall
serve as President and Chief Operating Officer of the Company and shall serve
and perform the duties, exercise the powers, and have the authority given to
Employee by the Chief Executive Officer or Board of Directors of the Company.

         b. During the Term and unless otherwise agreed with the Company,
Employee shall devote his primary attention to the performance of his duties and
responsibilities on a substantially full time and exclusive basis during such
business hours and such other periods and times as may be necessary for the
proper performance of his duties. Notwithstanding any other provision to the
contrary contained in this SECTION 2 but consistent with the commitment to
perform services for the Company on substantially a full time and exclusive
basis, nothing in this SECTION 2 is intended to preclude Employee from devoting
reasonable time to (i) serving on the boards of other entities (profit or
not-for-profit), making public appearances, making speaking engagements, writing
books or articles or other similar activities and retaining all compensation
received from such activities; (ii) engaging in charitable and community
activities; and (iii) managing his own investments.

         SECTION 3.  TERM.

         The term of Employee's employment hereunder (the "TERM") shall commence
on the Effective Date and unless earlier terminated as provided in SECTION 5 of
this Agreement, Employee's employment hereunder shall continue for a period of
seven years from the Effective Date.

         SECTION 4.  COMPENSATION.  During the Term, the Company shall provide
to Employee the following:

         a. Employee shall be entitled to receive cash compensation each
calendar year equal to the Base Compensation accrued during the Term. The
Company shall pay Employee an annual draw at a rate of $110,000 per year,
payable in regular installments in accordance with the Company's general payroll
practices for salaried employees ("BI-MONTHLY DRAW"), against the Base
Compensation accrued for such calendar year. If the Base Compensation accrued
and unpaid as of the end of a given calendar quarter is greater than the
aggregate Bi-Monthly Draws paid from the beginning of that year through the end
of such quarter, then the Company shall pay Employee an amount equal to such
excess in a lump sum payment within 30 days after the end of such quarter.
Within 45 days of the end of each calendar year, the Company shall deliver to
Employee a schedule setting forth its determination of the Base Compensation for
such year.

         b. Employee shall be eligible for participation in all employee welfare
and benefit plans, programs and arrangements of the Company now or hereafter
made generally available to all senior executives of the Company, as such plans,
programs and arrangements may be in effect from time to time (including, without
limitation, each retirement plan, supplemental and excess retirement

                                        5

<PAGE>

plans, annual and long-term incentive compensation plans, group life insurance,
accident and death insurance, medical and dental insurance, sick leave, pension
plans and disability plans). Without limiting the generality of the foregoing,
the Company will continue the split dollar life insurance and disability
insurance benefits provided the Employee as of the date hereof; premiums paid by
the Company for those benefits shall not be refundable by the Employee following
termination of his employment.

         c. Prompt reimbursement of all out-of-pocket expenses properly incurred
by Employee in the performance of his duties and as shall properly be incurred
by him and vouched for in connection with the Company's business.

         d. Subject to stockholder approval of the requisite amendment to the
Amended and Restated 1996 Stock Option Plan, Employee shall be granted on the
Effective Date two hundred fifty thousand (250,000) options ("OPTIONS") to
purchase shares of Class A Common Stock of the Company ("SHARES"). The per share
exercise price for the Shares to be issued pursuant to the exercise of the
Options ("OPTION SHARES") shall be the "Initial Conversion Price" established
for the Company's Series B 6.0% Cumulative Convertible/Exchangeable Preferred
Stock. The Options shall become vested and exercisable with respect to
one-seventh (1/7) of the Option Shares on each anniversary of the Effective
Date. Notwithstanding the foregoing, the Options shall be vested and exercisable
with respect to all Option Shares upon the termination of Employee's employment
by the Company other than for Cause or by Executive for Good Reason, or upon a
Change of Control.

         e. The Company will afford Employee a one-time opportunity to purchase
up to 250,000 newly issued shares of Class A Common Stock within 270 days after
the Effective Date at a price equal to the market price at the close of business
on the date the Employee gives notice of his election to make such purchase. The
closing of such purchase will take place on the first business day following the
Employee's notice of election to make such purchase.

         SECTION 5.  TERMINATION.

         Notwithstanding anything contained herein to the contrary, this
Agreement may be terminated at any time by either party in accordance with the
following terms:

         a. DEATH. In the event of Employee's death, this Agreement shall
terminate immediately, provided, however, the Company shall be obligated to pay
within 30 days after Employee's death to Employee's family or estate a lump sum
payment equal to the Base Compensation as determined in SECTION 4(a) actually
earned or accrued as of the date of Employee's death, and the Company shall for
a period of 12 months from the date of Employee's death pay to Employee's
surviving spouse and dependents cash compensation equal to Employee's Base
Compensation earned with respect to the calendar year preceding the date of
Employee's death, and continue for the benefit of Employee's surviving spouse
and dependents health insurance and other employee welfare and benefit plans,
programs and arrangements in effect at such time (if available under the plans).

                                        6

<PAGE>

         b. DISABILITY. In the event the employment of Employee is interrupted
due to the Disability of Employee, the benefits payable to Employee shall be
continued by the Company for a period of six full calendar months from the date
of last regular employment. Should such Disability continue thereafter, no
additional Base Compensation, fringe benefits, or other benefits shall be paid
to Employee, and the Company shall have the right to terminate Employee's
employment under this Agreement upon written notice to Employee. During the
period of his Disability (including any period after the date of termination),
Employee shall be entitled to continued participation for himself, his spouse
and his dependents Employee's benefits under the Company's health and welfare
plans to the extent permitted under the plans, and all vested rights which
Employee may have shall remain in full force and effect. Upon request, Employee
shall submit to tests and examination by a physician on behalf of the Company.
In the event of disagreement of the two physicians consulted by Employee and the
Company, the two shall select a third physician whose determination shall be
deemed conclusive.

         c. TERMINATION WITHOUT CAUSE OR FOR GOOD REASON. If Company terminates
Employee's employment hereunder without Cause or Employee resigns for Good
Reason, Company shall be obligated to pay all fringe benefits, and the Base
Compensation as determined in SECTION 4(a) accrued as of the date of termination
and shall pay Employee within three days after termination of employment a
single lump sum amount equal to the Base Compensation as determined in SECTION
4(a) with respect to the calendar year preceding such termination of employment.
The Company shall continue to pay Employee's health insurance and other employee
welfare benefits for one year following the effective date of termination of
employment. Any Base Compensation shall accrue through the date of termination.
During the Term (including the one-year period after the effective date of such
termination), Employee shall be entitled to continue participation for himself,
his spouse and his dependents under the Company's health and welfare plans and
to continued participation in all of the Company's employee benefit plans other
than so-called perquisites, and all vested rights which Employee may have shall
remain in full force and effect and shall be deemed vested.

         d. TERMINATION FOLLOWING CHANGE OF CONTROL. If Employee resigns for any
reason within 90 days following a Change of Control, the Company shall be
obligated to pay all fringe benefits, and the Base Compensation as determined in
SECTION 4(a) accrued as of the date of termination, and all vested rights which
Employee may have shall remain in full force and effect and shall be deemed
vested. Unless and until Employee is offered and accepts employment with an
Affiliate of the Investor Group, the Company shall pay Employee for one year
after such termination of employment a monthly amount equal to one-twelfth of
the Base Compensation as determined in SECTION 4(a) with respect to the calendar
year preceding such termination of employment. During the one-year period after
the effective date of such termination, unless and except to the extent Employee
is entitled to such benefits by reason of his employment with another employer,
Employee shall be entitled to continue participation for himself, his spouse and
his dependents under the Company's health and welfare plans and to continued
participation in all of the Company's employee benefit plans other than
so-called perquisites.

                                        7

<PAGE>

         e. RESIGNATION. In addition to Employee's right to resign for Good
Reason, Employee may resign from employment hereunder at any time by providing
Company with written notice at least three months in advance of the effective
date of the resignation. If Employee resigns without Good Reason, Company shall
pay the Base Compensation actually earned or accrued through the effective date
of resignation.

         f. TERMINATION FOR CAUSE. Company may terminate Employee's employment
hereunder at any time effective immediately for Cause. If Company terminates
Employee for Cause, Company shall be obligated to pay Employee's Base
Compensation as determined in SECTION 4(a) and fringe benefits accrued only
through the effective date of termination and shall not be responsible to pay
any other amounts or provide any other benefits thereafter.

         SECTION 6. OTHER PROVISIONS GOVERNING TERMINATION. Employee shall not
be required to mitigate amounts payable pursuant to SECTION 5 by seeking other
employment or otherwise. Employee's acceptance of other employment during the
Term shall not, directly or indirectly, diminish or impair the amounts payable
by the Company pursuant to SECTION 5.

         SECTION 7. NON-COMPETITION:

         a. During his employment with the Company and for a period of three
years following termination of such employment, unless such termination is by
the Company without Cause or by Employee for Good Reason or by the Employee for
any reason within 90 days following a Change of Control, Employee will not,
directly or indirectly, Compete (as hereinafter defined) with the Company or any
of its Affiliates. "Compete" means to work for, represent, consult for or invest
in (except owning less than one-half of one percent of a publicly traded
company) as an officer, director, employee, agent, or independent contractor,
for a person or entity engaged in the Business (as hereinafter defined) anywhere
within the Restricted Territory (as hereinafter defined).

"Business" means any of the following services:

            (i) Hotel franchise system marketing, advertising and/or
       promotion, including, without limitation, specific hotel franchise sales
       and solicitation; or

            (ii) Hotel franchise system operation, management, or maintenance,
       including, without limitation, system specifications, quality control and
       policing, franchisee training, system design and implementation, hotel
       site selection formats, hotel space planning, standard system accounting,
       advertising fund support and maintenance, reservation system support and
       maintenance, and creation and maintenance of Standards, Operations or
       Site Construction Manuals.

"Restricted Territory" means any area within the United States that is (i)
within a 50 mile radius surrounding the principal offices of the Company or any
of its Affiliates at the time of Employee's termination, (ii) within a 10 mile
radius surrounding any hotel licensed or franchised by the Company or any of its
Affiliates at the time of Employee's termination, (iii) within a 10 mile

                                        8

<PAGE>

radius surrounding any hotel for which the Company or any of its Affiliates is
rendering services at the time of Employee's termination, or (iv) within a 10
mile radius surrounding the site of any proposed hotel licensed or franchised by
the Company or any of its Affiliates at the time of Employee's termination.

         b. Employee acknowledges that the above covenants are a reasonable
means of protecting and preserving the Company's goodwill, its investment in
Employee and its other legitimate business interests. Employee agrees that any
breach of these covenants will result in irreparable damage and injury to the
Company and that the Company will be entitled to injunctive relief in any court
of competent jurisdiction. Employee also agrees that any such injunctive relief
shall be in addition to any damages that may be recoverable by the Company.

         c. It is understood that the Employee shall not be prevented by this
Section 7, after termination of his employment, from entering into contracts or
business arrangements with any licensee or franchisee of the Company relating to
matters that do not constitute the conduct of the Business.

         SECTION 8. NONDISCLOSURE OF TRADE SECRETS AND CONFIDENTIAL INFORMATION.

         a. During his employment with the Company and for a period of three
years following termination of such employment, regardless of the reason
therefor, Employee will not (except where Employee believes in good faith that
disclosure is in furtherance of his employment hereunder), directly or
indirectly, copy, reproduce, disseminate, use, exploit or disclose for the
benefit of a competitor of Company (or the Group) or for Employees' own benefit
or account, or publish and abandon to the public domain, any trade secrets of
Company and the Group (regardless of whether evidenced by a written medium of
expression), including but not limited to, those related to any of their hotel
franchise systems and pending or prospective franchisees without the prior
consent of the Company, including, without limitation:

                  (i) The identity of pending franchisees and franchise
         applications or particular prospects, regardless of whether such
         potential or pending franchisees are independently known to Employee or
         obtained or obtainable from Company's data base (provided that Company
         policy limits access to such data based on a need-to-know basis), and
         further provided that such restriction shall lapse when any such
         pending franchisee commences construction of a hotel under an executed
         franchise agreement from Company or its Affiliates, or their
         subfranchisors;

                  (ii) Trade secrets included within any of the Company's
         franchise, construction, Standards, Operations or Site Construction
         Manuals;

                  (iii) Hotel design, construction and space plan documents,
         including working drawings, related to the Microtel Hotel Franchise
         System owned by Company (but not the Best Hotel or Hawthorne Suites
         Systems) and any other so-called "Cookie Cutter" hotel

                                        9

<PAGE>

         franchise system operated by Company in the future during the term of
         this Employment Agreement; and

                  (iv) The specific portions of any hotel reservation system
         software (constituting proprietary trade secrets) information, utilized
         by the Company, that are owned by or exclusively licensed to the
         Company that are not protected by federal patent or copyright
         registration, now or in the future.

         b. Employee acknowledges that the nondisclosure covenants contained in
this Section are a reasonable means of protecting and preserving Company's
interest in the confidentiality of this information. Employee agrees that any
breach of these covenants will result in irreparable damage and injury to
Company and that Company will be entitled to injunctive relief in any court of
competent jurisdiction. Employee also agrees that any such injunctive relief
shall be in addition to any damages that may be recoverable by Company.

         SECTION 9. NONSOLICITATION.

         a. In consideration for the compensation and benefits being paid and to
be paid by the Company to Employee hereunder or otherwise, Employee agrees that,
during his employment with the Company and for a period of three years following
termination of such employment for any reason, he shall not, in any manner
(other than as an employee of or a consultant to the Company or an Affiliate),
directly or indirectly:

            (i) employ or seek to employ, on his own behalf or on behalf
         of any other any person or entity other than the Company or any member
         of the Group, any person who was employed by the Company or any member
         of the Group during Employee's employment with the Company or any
         person who is thereafter employed by the Company or a member of the
         Group; unless such person who was employed by the Company or a member
         of the Group was not employed by the Company or a member of the Group
         for a period of one full year prior to such person's acceptance of
         employment with Employee or any other person or entity on whose behalf
         Employee is acting; or

            (ii) induce or attempt to induce any licensee, franchisee or
         supplier of the Company or any member of the Group to terminate its
         contractual relationship with the Company or such Group member.

         b. Employee agrees that, during his employment with the Company and for
a period of three years following termination of such employment for any reason,
other than by the Company without Cause or by Employee for Good Reason or by the
Employee for any reason within 90 days following a Change of Control, he shall
not, in any manner, directly or indirectly, solicit the Business or enter into
any contractual relationship for the Business of any person or entity who was a
franchisee or licensee of the Company or any Group member as of the termination
date, unless such person or entity was a franchisee or licensee of a competitor
of the Company as of the

                                       10

<PAGE>

termination date and Employee's efforts to solicit such Business do not violate
any other covenant of this Agreement.

         c. Employee acknowledges that the above covenants are a reasonable
means of protecting and preserving Company's goodwill, its investment in
Employee and its other legitimate business interests. Employee agrees that any
breach of these covenants will result in irreparable damage and injury to
Company and that Company will be entitled to injunctive relief in any court of
competent jurisdiction. Employee also agrees that any such injunctive relief
shall be in addition to any damages that may be recoverable by Company.

         d. It is understood that the Employee shall not be prevented by this
Section 9, after termination of his employment, from entering into contracts or
business arrangements with any licensee or franchisee of the Company relating to
matters that do not constitute the conduct of the Business.

         SECTION 10. INDEMNIFICATION. The Company shall indemnify Employee to
the maximum extent permitted by applicable law and the Company's charter and
by-laws as currently in effect (copies of which have heretofore been provided to
Employee) against all costs, charges and expenses (including, without
limitation, legal fees or the provision of counsel by the Company) incurred or
sustained by him in connection with any action, suit or proceeding to which he
may be made a party by reason of his being an officer, director or employee of
the Company or the Group whether or not such action, suit or proceeding is
brought during Employee's employment by the Company. The Company will reimburse
Employee for all reasonable legal fees and disbursements incurred by Employee in
connection with the negotiation and preparation of this Agreement and all
reasonable fees and disbursements incurred by Employee in connection with any
dispute over the enforcement by Employee of his rights under this Agreement, but
only if Employee prevails in such dispute.

         SECTION 11. NOTICE. All notices or other communications hereunder shall
be in writing and shall be deemed to have been duly given (a) when delivered
personally, (b) on the business day following the day such notice or other
communication is sent by recognized overnight courier, (c) on acknowledgment of
the receipt of a facsimile of such notice or other communication, or (d) on the
fifth day following the date of deposit in the United States mail if sent first
class, postage prepaid, by registered or certified mail. The addresses for such
notices shall be as follows:

         If to the Company:

         U.S. Franchise Systems, Inc.
         ATTN:_____________________
         13 Corporate Square
         Suite 250
         Atlanta, Georgia  30329
         Facsimile No.:____________

                                       11

<PAGE>

         If to Employee:

         Steven Romaniello
         _____________________
         _____________________
         Facsimile No.:________________

         SECTION 12. MISCELLANEOUS.

         a. Severability. The covenants set forth in this Agreement shall be
considered and construed as separate and independent covenants. Should any part
or provision of any covenant be held invalid, void or unenforceable in any court
of competent jurisdiction, such invalidity, voidness or unenforceability shall
not render invalid, void or unenforceable any other part or provision of this
Agreement. If any portion of this Agreement is found to be invalid or
unenforceable by a court of competent jurisdiction because its duration, the
territory, the definition of activities or the definition of information covered
is invalid or unreasonable in scope, the invalid or unreasonable term shall be
redefined, or a new enforceable term provided, such that the intent of Company
and Employee in agreeing to the provisions of this Agreement will not be
impaired and the provision in question shall be enforceable to the fullest
extent of the applicable laws.

         b. WAIVER. The waiver by any party to this Agreement of a breach of any
of the provisions of this Agreement shall not operate or be construed as a
waiver of any other or subsequent breach.

         c. GOVERNING LAW. This Agreement shall be deemed to be made in and
shall in all respects be interpreted, construed and governed by and in
accordance with the laws of the State of Georgia (without giving effect to the
conflict of law principles thereof). No provision of this Agreement or any
related documents shall be construed against, or interpreted to the disadvantage
of, any party hereto, by any court or any governmental or judicial authority by
reason of such party having or being deemed to have structured or drafted such
provision.

         d. ENTIRE AGREEMENT. This Agreement is intended by the parties hereto
to be the final expression of their agreement with respect to the subject matter
hereof and this is the complete and exclusive statement of the terms of their
agreement with respect to the subject matter hereof, notwithstanding any
representations, statements or agreements to the contrary heretofore made. This
Agreement supersedes any former agreements, correspondence, or other
communication governing the same subject matter. This Agreement may be modified,
and its provisions may be waived, only by a written instrument signed by each of
the parties hereto.

         e. COUNTERPARTS. This Agreement may be executed simultaneously 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.

                                       12

<PAGE>

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

COMPANY:                                   EMPLOYEE:

U.S. FRANCHISE SYSTEMS, INC.,
a Delaware corporation                     STEVEN ROMANIELLO

By: /s/ Stephen D. Aronson                 /s/ Steven Romaniello
   ------------------------------          --------------------------

                                       13<PAGE>

                                                                  Exhibit 10.4

                              SEPARATION AGREEMENT

                  The parties to this Agreement (the "Agreement"), entered into
this 2nd day of June 2000 are Neal K. Aronson ("Employee") and U.S. Franchise
Systems, Inc. (the "Company").

                  The Company, SDI, Inc., HSA Properties, Inc. and Meridian
Associates, L.P., have entered into a Recapitalization Agreement dated as of
June 2, 2000 (the "Recapitalization Agreement"), contemplating, among other
things, an investment by the Investors in new Preferred Stock of the Company and
an offer by the Company to purchase shares of its Common Stock.

                  Employee and the Company are parties to (a) the Employment
Agreement made as of October 1, 1995, as amended by the Amendment to Employment
Agreement made as of January 15, 1997 (as amended, the "Employment Agreement")
and (b) an Indemnification Agreement dated as of November ___, 1996 (the
"Indemnification Agreement"). Subject to the occurrence of the Closing Date, the
parties have agreed that Employee's employment with the Company shall end on the
terms and conditions set forth herein.

                  In consideration of the promises, mutual covenants and
agreements contained in this Agreement, Employee and the Company agree as
follows:

                  1. Capitalized words used in this Agreement as defined terms
shall have the meanings given to them in the Recapitalization Agreement, unless
otherwise defined herein.

                  2. Notwithstanding any of the provisions contained herein, the
Employee's obligations and resignations and releases in favor of the Company
stated in this Agreement, and the Company's obligations and releases in favor of
Employee as stated in this Agreement, shall cease to be effective if: (a) the
Offer shall have expired in accordance with its terms without the acceptance for
purchase of at least 3,000,000 Shares, (b) the Offer shall have been terminated
or withdrawn for any reason (other than a breach of any of Employee's
obligations to the Company and/or the Investor Group), (c) the Recapitalization
Agreement is earlier terminated for any reason other than a breach of any of
Employee's obligations to the Company and/or the Investor Group) in accordance
with Article 8 thereof or otherwise, (d) the Offer shall have been amended or
otherwise modified in any material respect (other than the extension of the time
for tenders of Shares), including, without limitation, to reduce the

<PAGE>

number of Shares which the Company is offering to purchase or the price at which
the Company will purchase Shares pursuant thereto, or (e) the Restricted Stock
shall not have fully vested (and no longer be subject to forfeiture) immediately
before the Closing Date (but subject to the Closing).

                  3. Employee's employment pursuant to the Employment Agreement
shall end effective as of the close of business sixty (60) days after the
Closing Date (the "Ending Date"). From and after the Closing Date, Employee
shall have no further authority to act as an officer or agent of the Company or
otherwise bind the Company with respect to any obligation or undertaking, except
to the extent expressly authorized by the Company's Chief Executive Officer
after the Closing Date. Employee shall resign from any and all offices and
positions he holds with the Company effective as of the Ending Date (except with
respect to his position as a director, which resignation shall be effective as
of the Closing Date). The Employment Agreement shall continue in effect through
the Ending Date and Employee shall be entitled through such date to all salary,
bonuses, expense reimbursement, property, medical insurance, dental insurance,
life insurance, and other employment related benefits (other than severance,
holiday pay, vacation pay, stock options and other compensation and benefits on
or after the Ending Date by reason of the termination of Employee's employment
or other events) provided for in the Employment Agreement through the Ending
Date. If Employee resigns from the Company for any reason on or after the
Closing Date and prior to the Ending Date, he shall nevertheless be entitled to
receive all of the payments and other rights provided for on Schedule A (except
that the payments provided in the preceding sentence shall be through the
effective date of his resignation). For the purposes of calculating any bonus
that accrues based on the number of franchises signed during any calendar
quarter, Employee shall be entitled to the pro rata portion, calculated on a
daily basis, based on the amount of the bonus the Employee would be entitled to
if such Employee had remained employed by the Company for the full calendar
quarter.

                  4. After the Ending Date, the Company shall provide Employee
with such compensation, payments and benefits as are described on Schedule A,
incorporated by reference herein. Employee acknowledges and agrees that the
payments and benefits specified in this Agreement are in full and complete
satisfaction of any and all obligations of the Company to Employee on and after
the Ending Date, for salary, severance pay, bonuses, expense reimbursement,
property, holiday pay, vacation pay, stock options, medical insurance, dental
insurance, life insurance, and other employment - related benefits to which
Employee might otherwise be entitled. Employee acknowledges that a portion of
the payments and benefits may be subject to any and all applicable withholding
and other employment taxes.

                  5. Notwithstanding any other provision of this Agreement,
Employee, and his beneficiaries and dependents as applicable, shall retain his
entitlement to: (a) any and all benefits to which he is entitled under the terms
of any plan maintained or contributed to by the Company which is qualified under
Section 401(a) of the Internal Revenue Code of 1986, as amended, (b) any
continuation of health or medical coverage at the Employee's, beneficiary's or
dependent's expense, to the extent required by the relevant provisions of the
Consolidated

                                       -2-

<PAGE>

Omnibus Budget Reconciliation Act of 1985, (c) the rights to which Employee is
entitled as of the Ending Date under any vested options not yet exercised under
the Company's Amended and Restated 1996 Stock Option Plan or with respect to any
Shares then owned by Employee, and (d) the indemnification rights (and rights to
maintenance of directors' and officers' insurance) to which Employee is entitled
as a director or an officer of the Company or its Affiliates with respect to his
services as such prior to the Ending Date to the fullest extent provided in the
Company's certificate of incorporation, bylaws, Article 7 of the
Recapitalization Agreement, the Indemnification Agreement, or Section 10 of the
Employment Agreement, each as in effect as of the date hereof. The Company
confirms that the rights of Employee under clause (d) of this Section 5 shall
extend to the Shareholder Litigation and any related lawsuits or similar
litigation in accordance with the terms and conditions of such rights.

                  6. Employee agrees to turn over to the Company on the Ending
Date all confidential information, materials and tangible personal property of
the Company, which are used in or pertain to the business of the Company, in
each case that are within his possession or control on that date, it being
understood that Employee shall not be precluded from retaining copies of
information or materials that reasonably relate to Employee's compensation and
benefits and other contractual rights or that Employee may reasonably require
for personal tax purposes or for litigation purposes.

                  7. After the Closing Date and until the Ending Date, Employee
shall(a) continue to serve the Company in pursuit of an orderly transition of
his duties, (b) make himself available, upon the request of the Company, to
render services to the Company relevant to the transition of responsibilities of
Employee to other employees of the Company and (c) receive compensation as
provided in this Agreement.

                  8. EFFECTIVE ON THE CLOSING DATE, EMPLOYEE HEREBY RELEASES,
FOREVER DISCHARGES AND COVENANTS NOT TO SUE THE COMPANY, ANY PREDECESSOR OR
SUCCESSOR OF THE COMPANY, AND ANY AND ALL OF THEIR RESPECTIVE PAST OR PRESENT
OFFICERS, DIRECTORS, SHAREHOLDERS, AGENTS, AND EMPLOYEES (ALL COLLECTIVELY, THE
"RELEASED PARTIES"), FROM ANY AND ALL MANNER OF ACTIONS, CAUSES OF ACTION,
DEMANDS, CLAIMS, AGREEMENTS, PROMISES, DEBTS, LAWSUITS, LIABILITIES, RIGHTS,
CONTROVERSIES, COSTS, EXPENSES AND FEES WHATEVER WITH RESPECT TO THE EMPLOYMENT
AGREEMENT (COLLECTIVELY, "EMPLOYEE CLAIMS"), WHETHER ARISING IN CONTRACT, TORT
OR ANY OTHER THEORY OF ACTION, WHETHER ARISING IN LAW OR EQUITY, WHETHER KNOWN
OR UNKNOWN, CHOATE OR INCHOATE, MATURED OR UNMATURED, CONTINGENT OR FIXED,
LIQUIDATED OR UNLIQUIDATED, ACCRUED OR UNACCRUED, ASSERTED OR UNASSERTED, FROM
THE BEGINNING OF TIME UP TO THE CLOSING DATE, EXCEPT FOR, IN EACH CASE, THOSE
OBLIGATIONS OF THE COMPANY (a) CREATED BY OR ARISING OUT OF THIS AGREEMENT, OR
TO THE EXTENT ARISING ON OR AFTER THE CLOSING DATE AND PRIOR TO THE ENDING DATE,
CREATED OR ARISING OUT OF THE

                                       -3-

<PAGE>

EMPLOYMENT AGREEMENT (OTHER THAN RIGHTS TO COMPENSATION AND BENEFITS ON OR AFTER
THE ENDING DATE BY REASON OF THE TERMINATION OF EMPLOYEE'S EMPLOYMENT OR OTHER
EVENTS, WHICH EMPLOYEE IS RELEASING), (b) TO WHICH EMPLOYEE HAS RETAINED
ENTITLEMENT UNDER SECTION 5 OF THIS AGREEMENT, CREATED BY OR ARISING OUT OF
SECTION 10 OF THE EMPLOYMENT AGREEMENT OR THE INDEMNIFICATION AGREEMENT OR (c)
FOR SALARY AND BENEFITS ACCRUED UNDER THE EMPLOYMENT AGREEMENT AS OF THE
TERMINATION DATE (OTHER THAN RIGHTS TO COMPENSATION AND BENEFITS ON OR AFTER THE
ENDING DATE BY REASON OF THE TERMINATION OF EMPLOYEE'S EMPLOYMENT OR OTHER
EVENTS, WHICH EMPLOYEE IS RELEASING). EMPLOYEE EXPRESSLY WAIVES THE BENEFIT OF
ANY STATUTE OR RULE OF LAW WHICH, IF APPLIED TO THIS AGREEMENT, WOULD OTHERWISE
PRECLUDE FROM ITS BINDING EFFECT ANY EMPLOYEE CLAIM AGAINST ANY RELEASED PARTY
NOT NOW KNOWN BY EMPLOYEE TO EXIST. EXCEPT AS NECESSARY FOR EMPLOYEE TO ENFORCE
THIS AGREEMENT, THIS AGREEMENT IS INTENDED TO BE A SPECIAL RELEASE AND A
COVENANT NOT TO SUE THAT EXTINGUISHES ALL EMPLOYEE CLAIMS AND PRECLUDES ANY
ATTEMPT BY EMPLOYEE TO INITIATE ANY LITIGATION AGAINST ANY RELEASED PARTY BASED
ON EMPLOYEES CLAIMS. IF EMPLOYEE COMMENCES OR CONTINUES ANY EMPLOYEE CLAIM IN
VIOLATION OF THIS AGREEMENT, THE RELEASED PARTY SHALL BE ENTITLED TO ASSERT THIS
AGREEMENT AS A BAR TO SUCH ACTION OR PROCEEDING AND SHALL BE ENTITLED TO RECOVER
ITS ATTORNEYS' FEES AND COSTS OF LITIGATION FROM THE PARTY COMMENCING OR
CONTINUING THE EMPLOYEE CLAIM, INCLUDING REASONABLE COMPENSATION FOR THE
SERVICES OF THE INTERNAL PERSONNEL OF THE RELEASED PARTY. EMPLOYEE IS NOT,
HOWEVER, WAIVING ANY RIGHT OR CLAIM THAT MAY ARISE AFTER THE DATE THIS AGREEMENT
IS EXECUTED.

                  9. EFFECTIVE ON THE CLOSING DATE, THE COMPANY HEREBY RELEASES,
FOREVER DISCHARGES AND COVENANTS NOT TO SUE EMPLOYEE, FROM ANY AND ALL MANNER OF
ACTIONS, CAUSES OF ACTION, DEMANDS, CLAIMS, AGREEMENTS, PROMISES, DEBTS,
LAWSUITS, LIABILITIES, RIGHTS, DUES, CONTROVERSIES, COSTS, EXPENSES AND FEES
WHATEVER, WITH RESPECT TO THE EMPLOYMENT AGREEMENT OR EMPLOYEE'S SERVICE AS AN
EMPLOYEE, DIRECTOR OR OFFICER OF THE COMPANY (COLLECTIVELY, "COMPANY CLAIMS"),
WHETHER ARISING IN CONTRACT, TORT OR ANY OTHER THEORY OF ACTION, WHETHER ARISING
IN LAW OR EQUITY, WHETHER KNOWN OR UNKNOWN, CHOATE OR INCHOATE, MATURED OR
UNMATURED, CONTINGENT OR FIXED, LIQUIDATED OR UNLIQUIDATED, ACCRUED OR
UNACCRUED, ASSERTED OR UNASSERTED, FROM THE BEGINNING OF TIME UP TO THE CLOSING
DATE, EXCEPT FOR, IN EACH CASE, THOSE OBLIGATIONS OF EMPLOYEE (a) CREATED BY OR
ARISING OUT OF THIS AGREEMENT OR TO THE EXTENT ARISING ON OR PRIOR TO THE ENDING
DATE, CREATED OR ARISING

                                       -4-

<PAGE>

OUT OF THE EMPLOYMENT AGREEMENT, (b) THOSE OBLIGATIONS ARISING UNDER SECTION 7
OF THE EMPLOYMENT AGREEMENT AND SECTION 9 OF THE EMPLOYMENT AGREEMENT TO THE
EXTENT IT RELATES TO SECTION 7 OF THE EMPLOYMENT AGREEMENT, (c) ANY ACT OR
OMISSION OF EMPLOYEE INVOLVING FRAUD, BREACH OF DUTY OF LOYALTY, OR ANY OTHER
MATTER FOR WHICH HE MAY BE HELD LIABLE TO STOCKHOLDERS OF THE COMPANY OR LIABLE
TO THE COMPANY IN A STOCKHOLDER DERIVATIVE CLAIM, (d) ANY ACT OR OMISSION NOT
TAKEN OR MADE IN GOOD FAITH AND IN A MANNER EMPLOYEE REASONABLY BELIEVES TO BE
IN OR NOT OPPOSED TO THE BEST INTERESTS OF THE COMPANY, OR (e) ANY CLAIM THE
RELEASE OF WHICH BY THE COMPANY WOULD IMPAIR THE RIGHTS OF THE COMPANY OR ITS
DIRECTORS AND OFFICERS UNDER THE COMPANY'S DIRECTORS' AND OFFICERS' INSURANCE.
THE COMPANY EXPRESSLY WAIVES THE EMPLOYEE COVENANT NOT TO COMPETE IN SECTION
8(b) (1) OF THE EMPLOYMENT AGREEMENT. THE COMPANY EXPRESSLY WAIVES THE BENEFIT
OF ANY STATUTE OR RULE OF LAW WHICH, IF APPLIED TO THIS AGREEMENT, WOULD
OTHERWISE PRECLUDE FROM ITS BINDING EFFECT ANY COMPANY CLAIM AGAINST EMPLOYEE
NOT NOW KNOWN BY THE COMPANY TO EXIST. EXCEPT AS NECESSARY FOR THE COMPANY TO
ENFORCE THIS AGREEMENT, THIS AGREEMENT IS INTENDED TO BE A SPECIAL RELEASE AND A
COVENANT NOT TO SUE THAT EXTINGUISHES ALL COMPANY CLAIMS AND PRECLUDES ANY
ATTEMPT BY THE COMPANY TO INITIATE ANY LITIGATION AGAINST EMPLOYEE BASED UPON
COMPANY CLAIMS. IF THE COMPANY COMMENCES OR CONTINUES ANY COMPANY CLAIM IN
VIOLATION OF THIS AGREEMENT, EMPLOYEE SHALL BE ENTITLED TO ASSERT THIS AGREEMENT
AS A BAR TO SUCH ACTION OR PROCEEDING AND SHALL BE ENTITLED TO RECOVER HIS
ATTORNEYS' FEES AND COSTS OF LITIGATION FROM THE PARTY COMMENCING OR CONTINUING
THE COMPANY CLAIM. THE COMPANY IS NOT, HOWEVER, WAIVING ANY RIGHT OR CLAIM THAT
MAY ARISE AFTER THE DATE THIS AGREEMENT IS EXECUTED.

                  10. Employee represents and warrants that Employee has not
assigned or transferred, or purported to assign or transfer, to any person or
entity, any Employee Claim or any portion thereof or interest therein.

                  11. Any notice provided for in this Agreement shall be in
writing and shall be either personally delivered, or mailed first class
certified mail (postage prepaid and return receipt requested) or sent by
reputable overnight courier service (charges prepaid) to any other recipient at
the address indicated on the signature pages hereof, or at such address or to
the attention of such other person as the recipient party has specified by prior
written notice to the sending party. Notices will be deemed to have been given
hereunder when delivered personally, when received if sent by U.S. mail and one
day after deposit with a reputable overnight courier service.

                                       -5-

<PAGE>

                  12. This Agreement, together with the other agreements dated
the date hereof to which Employee is a party relating to the transactions
contemplated by the Recapitalization Agreement, shall serve as the entire
agreement of the parties concerning the subject matter of this Agreement and
supersedes and preempts any prior understandings, agreements or representations
by or among the parties, written or oral, which may have related to the subject
matter hereof in any way.

                  13. Each party agrees that such party shall not make or
publish any statement (orally or in writing), or instigate or assist or
participate in the making or publication of any statement that would libel,
slander, or disparage (whether or not such disparagement legally constitutes
libel or slander) or expose to contempt or ridicule the other party. For
purposes of the preceding sentence, the Company shall be deemed to have made
(and shall be deemed to be responsible for) all statements made by its Chief
Executive Officer or its Chief Operating Officer or any other authorized officer
or agent speaking on behalf of the Company in the capacity of an authorized
representative or any authorized officer or agent of Meridian, HSA Properties or
SDI speaking on their behalf in the capacity of an authorized representative.
The provisions of this Section 13 shall not apply to any statement made in
connection with any legal or administrative proceeding or otherwise required by
law.

                  14. This Agreement shall be binding upon and inure to the
benefit of the respective successors, heirs, assigns, administrators, executors
and legal representatives of the parties and other Persons described in this
Agreement.

                  15. This Agreement shall be deemed to have been executed and
delivered within the State of Georgia and the rights and obligations of the
parties shall be construed and enforced in accordance with, and governed by, the
laws of the State of Georgia without regard to that state's rules regarding
conflict of laws. The language of all parts of this Agreement shall in all cases
be construed as a whole, according to its fair meaning and not strictly for or
against any of the parties.

                  16. The parties agree that any dispute relating to this
Agreement or Employee's employment with the Company or the termination thereof
shall be submitted by the parties to, and decided by, the courts in Atlanta,
Georgia.

                  17. In the event that either party shall initiate legal action
to enforce the terms and conditions of this Agreement, in addition to any other
legal or equitable relief to which the prevailing party in such action may be
entitled, the prevailing party in such action shall be entitled to recover from
the other party its legal fees and other expenses reasonably incurred in
connection with such action; in the event that a party shall prevail as to some
but not all matters at issue in such action, each party shall be entitled to a
recovery of its or his legal fees and other expenses reasonably incurred with
respect to the matters as to which such party prevailed, as shall be determined
by the court upon application of any party.

                                       -6-

<PAGE>

                  18. The remedy for a breach of this Agreement shall be limited
to an action for damages, and no party shall assert as a right or remedy for
breach of any provision of this Agreement, the validity or unenforceability of
any other provision of this Agreement.

                  19. EMPLOYEE HAS BEEN ADVISED AND ENCOURAGED BY THE COMPANY TO
CONSULT WITH AN ATTORNEY BEFORE SIGNING THIS AGREEMENT. EMPLOYEE AFFIRMS THAT HE
HAS CAREFULLY READ AND FULLY UNDERSTANDS THIS AGREEMENT, HAS HAD SUFFICIENT TIME
TO CONSIDER IT, HAS HAD AN OPPORTUNITY TO ASK QUESTIONS AND HAVE IT EXPLAINED,
AND IS ENTERING INTO THIS AGREEMENT FREELY AND VOLUNTARILY, WITH AN
UNDERSTANDING THAT THE GENERAL RELEASE WILL HAVE THE EFFECT OF WAIVING ANY
ACTION OR RECOVERY HE MIGHT PURSUE FOR ANY CLAIMS ARISING ON OR PRIOR TO THE
DATE OF THE EXECUTION OF THIS AGREEMENT.

                            [SIGNATURE PAGE FOLLOWS.]

                                       -7-

<PAGE>

                  IN WITNESS WHEREOF, the parties have executed this Agreement
on this date or dates set forth below.

                                            U.S. FRANCHISE SYSTEMS, INC.
/s/ Neal Aronson
---------------------------                 By: /s/ Stephen D. Aronson
Neal Aronson                                   ---------------------------------
                                            Name: Stephen D. Aronson
                                                  ------------------------------
                                            Its: VP/General Counsel
                                                 -------------------------------

[Address]                                   13 Corporate Square, Suite 250
                                            Atlanta, Georgia 30329

Subscribed and sworn to before              Subscribed and sworn to before
me this 2nd day of                          me this 2nd day of
June 2000.                                  June 2000.

 /s/ Hilary Ann Bush                         /s/ Hilary Ann Bush
--------------------------                  --------------------------------
   Notary Public                                   Notary Public

<PAGE>

                                   SCHEDULE A

1.     Medical insurance plan coverage for Employee and his dependents continued
       at the cost of the Company for a period of 16 months from and after the
       Ending Date; provided, however, that such coverage shall cease if
       Employee becomes eligible for similar coverage provided by another
       employer.

2.     A cash payment in the amount of $350,000.00 payable on the Ending Date.

3.     Reimbursement for any and all documented employee business expenses not
       yet reimbursed as of the Ending Date, subject to the Company's normal
       reimbursement policies.

4.     Employee shall be entitled to request and receive from the Company at the
       Company's expense office space determined by the Company at the Company's
       headquarters, use of phone services and customary office support services
       for a period of 30 days following the Ending Date.

5.     Reimbursement of the reasonable out-of-pocket costs of travel relating to
       pursuit of other employment opportunities for a period beginning on the
       date of this Agreement and ending 60 days after the Ending Date, up to a
       maximum aggregate reimbursement of $15,000.00.

6.     Reimbursement of legal fees in connection with this Agreement up to a
       maximum amount of $10,000.00.

7      Reimbursement of relocation expenses incurred in connection with one
       relocation incident to his next employment position to the extent not
       reimbursed by such employer, up to a maximum reimbursement of $15,000.00.

8.     The Company shall assign to Employee, as of the Closing Date, the
       Company's interest in the split-dollar life insurance insuring Employee's
       life and the Company shall not be obligated for any further payments with
       respect thereto, it being understood that neither Employee, his estate or
       beneficiaries shall be required to reimburse the Company (out of the
       proceeds of such life insurance or otherwise) for any premiums paid by
       the Company prior to the Ending Date.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00013-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00013-of-00352.parquet"}]]