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Employee Benefits Security Administration

EBSA Federal Register Notice

Lodgian, Inc. 401(k) Plan and Trust Agreement (the Plan) Exemption Application No. D-11180 [10/14/2003]

[PDF Version]

Volume 68, Number 198, Page 59208

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DEPARTMENT OF LABOR

Employee Benefits Security Administration

 
Lodgian, Inc. 401(k) Plan and Trust Agreement (the Plan) 
Exemption Application No. D-11180

AGENCY: Employee Benefits Security Administration, Department of Labor 
(the Department).

ACTION: Notice of technical correction.

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    On September 29, 2003, the Department published in the Federal 
Register (68 FR 56013) a notice of a proposed exemption (the Notice) 
which would apply, effective December 3, 2002, to (1) the past 
acquisition and holding by the Plan of certain warrants (the 
Warrant(s)) issued by the employer, Lodgian, Inc. (Lodgian), a party in 
interest with respect to the Plan, which would permit the purchase of 
new common stock (New Lodgian Stock); (2) the cancellation payment (the 
Cancellation Payment) by Lodgian to the Plan in exchange for the 
Warrants (i) at the election of active participants (ii) at the 
election of the terminated vested participants whose vested interests 
exceed $5,000, or (iii) in accordance with the procedures for the 
automatic cash out of the value of Warrants held in the accounts of 
terminated vested participants whose vested interests are $5,000 or 
less, for an amount that represents the highest value of the Warrants 
determined by an independent, qualified, appraiser between December 31, 
2002 and the date of the individual election; (3) the sale of the 
Warrants from Plan participants to Lodgian to cash out active and 
terminated vested participants; and (4) the potential exercise of the 
Warrants into the New Lodgian Stock.
    On page 56015 of the Notice, the first sentence of Representation 8 
states the following: Lodgian's obligation to purchase the Warrants is 
effective at a time when the New Lodgian Stock price is greater than 
the Warrant exercise price; the Department notes that this sentence is 
inaccurate and should be deleted, and hereby amends the proposal to 
incorporate such change.
    On page 56016 of the Notice, paragraph (j) of Representation 9 
states the following:
    (j) Lodgian is required to purchase the Warrants upon request by a 
Plan participant provided that on the day of the request the price of 
the New Lodgian Stock is greater than the exercise price of the 
Warrants;
    The Department notes that paragraph (j) of Representation 9 should 
be corrected to read as follows:
    (j) Lodgian is required to purchase the Warrants upon request by a 
Plan participant provided that on the day of the request the price of 
the New Lodgian Stock is less than the exercise price of the Warrants; 
The Department hereby amends the proposal to incorporate such change.

FOR FURTHER INFORMATION CONTACT: Mr. Khalif Ford of the Department at 
(202) 693-8540. (This is not a toll-free number.)

    Signed at Washington, DC this 8th day of October, 2003.
Ivan L. Strasfeld,
Director of Exemption, Determinations, Pension and Welfare Benefits 
Administration, U.S. Department of Labor.
[FR Doc. 03-25912 Filed 10-10-03; 8:45 am]

BILLING CODE 4520-29-P