Item 1.01. Entry into a Material Definitive Agreement.
On February 4, 2009, the Board of Directors (the "Board") of Lodgian, Inc. (the "Company") approved a form of Indemnification Agreement (the "Indemnification Agreement") to be entered into with its directors and executive officers. The Indemnification Agreement supplements the indemnification rights provided under the Company's certificate of incorporation, bylaws and applicable law. The Indemnification Agreement provides that the Company will indemnify the director or executive officer ("Indemnitee") against all expenses (as defined in the agreement), judgments, fines and amounts paid in settlement actually and reasonably incurred by the Indemnitee and arising out of the Indemnitee's service as a director or executive officer to the fullest extent permitted by the Company's certificate of incorporation, bylaws and state or other applicable law and to any greater extent that applicable law may in the future permit. The Indemnification Agreement further provides procedures for the determination of an Indemnitee's right to receive indemnification and the advancement of expenses.
The foregoing description of the Indemnification Agreement is a general description only and is qualified in its entirety by reference to the Indemnification Agreement, the form of which is attached hereto as Exhibit 10.1 and incorporated herein by reference.
Item 8.01. Other Information.
On February 4, 2009, the Board approved a reduction of all cash compensation received by directors by 20%. The annual retainer received by directors will be reduced from $24,000 to $19,200, the fee for attendance at an in-person meeting will be reduced from $1,500 to $1,200, the fee for attendance at a telephonic meeting will be reduced from $500 to $400 and the fee for attendance at an in-person committee meeting will be reduced from $1,000 to $800. The Company's annual equity grant to directors will remain the same. Item 9.01. Financial Statements and Exhibits.
(d) Exhibits Exhibit 10.1 Form of Indemnification Agreement.

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