Document:

Exhibit 4.4

                                WARRANT AGREEMENT

      Agreement  made  as  of  ,  2005  between  Key   Hospitality   Acquisition
Corporation,  a Delaware corporation,  with offices at 1775 Broadway, Suite 604,
New York, NY 10019 ("Company"),  and Continental Stock Transfer & Trust Company,
a New York  corporation,  with offices at 17 Battery  Place,  New York, New York
10004 ("Warrant Agent").

      WHEREAS,  the Company is engaged in a public offering ("Public  Offering")
of Units  ("Units")  and, in connection  therewith,  has determined to issue and
deliver up to 6,900,000  Warrants  ("Public  Warrants")  to the investors in the
Public  Offering,  and (ii) 300,000 Warrants to Maxim Group LLC ("Maxim") or its
designees  ("Representative's  Warrants" and, together with the Public Warrants,
the "Warrants"), each of such Public Warrants evidencing the right of the holder
thereof to purchase one share of common stock, par value $.001 per share, of the
Company ("Common Stock") for $6.00,  subject to adjustment as described  herein;
and

      WHEREAS, the Company has filed with the Securities and Exchange Commission
a Registration  Statement,  File No.  333-125009 on Form S-1 (as the same may be
amended from time to time, the  "Registration  Statement") for the registration,
under the Securities Act of 1933, as amended ("Act") of, among other securities,
the Warrants and the Common Stock issuable upon exercise of the Warrants; and

      WHEREAS,  the Company  desires  the Warrant  Agent to act on behalf of the
Company,  and the  Warrant  Agent is willing to so act, in  connection  with the
issuance,  registration,  transfer,  exchange,  redemption  and  exercise of the
Warrants; and

      WHEREAS, the Company desires to provide for the form and provisions of the
Warrants,  the terms upon which  they  shall be issued  and  exercised,  and the
respective  rights,  limitation of rights,  and  immunities of the Company,  the
Warrant Agent, and the holders of the Warrants; and

      WHEREAS,  all acts and  things  have  been  done and  performed  which are
necessary  to make the  Warrants,  when  executed  on behalf of the  Company and
countersigned  by or on behalf of the Warrant  Agent,  as provided  herein,  the
valid,  binding and legal  obligations  of the  Company,  and to  authorize  the
execution and delivery of this Agreement.

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

      1.  Appointment of Warrant Agent.  The Company hereby appoints the Warrant
Agent to act as agent for the Company for the  Warrants,  and the Warrant  Agent
hereby  accepts such  appointment  and agrees to perform the same in  accordance
with the terms and conditions set forth in this Agreement.

      2. Warrants.

            2.1 Form of Warrant. Each Warrant shall be issued in registered form
only, shall be in substantially the form of Exhibit A hereto,  the provisions of
which are  incorporated  herein,  and shall be signed by, or bear the  facsimile
signature of, the Chairman of the Board or President and Treasurer, Secretary or
Assistant  Secretary of the Company and shall bear a facsimile of the  Company's
seal. In the event the person whose facsimile signature has been placed upon any
Warrant  shall have ceased to serve in the capacity in which such person  signed
the Warrant before such Warrant is issued, it may be issued with the same effect
as if he or she had not ceased to be such at the date of issuance.

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            2.2 Effect of  Countersignature.  Unless and until  countersigned by
the Warrant Agent pursuant to this Agreement,  a Warrant shall be invalid and of
no effect and may not be exercised by the holder thereof.

            2.3 Registration.

                  2.3.1 Warrant Register. The Warrant Agent shall maintain books
("Warrant  Register"),  for  the  registration  of  original  issuance  and  the
registration  of transfer  of the  Warrants.  Upon the  initial  issuance of the
Warrants,  the Warrant  Agent shall issue and register the Warrants in the names
of the  respective  holders  thereof  in such  denominations  and  otherwise  in
accordance with instructions delivered to the Warrant Agent by the Company.

                  2.3.2  Registered   Holder.   Prior  to  due  presentment  for
registration  of transfer of any Warrant,  the Company and the Warrant Agent may
deem and treat the person in whose name such Warrant  shall be  registered  upon
the  Warrant  Register  ("registered  holder"),  as the  absolute  owner of such
Warrant and of each Warrant represented thereby (notwithstanding any notation of
ownership or other writing on the Warrant  Certificate made by anyone other than
the Company or the Warrant Agent), for the purpose of any exercise thereof,  and
for all other  purposes,  and neither the Company nor the Warrant Agent shall be
affected by any notice to the contrary.

            2.4 Detachability of Warrants.  The securities  comprising the Units
will not be separately  transferable  until 90 days after the date hereof unless
Maxim informs the Company of its decision to allow earlier separate trading, but
in no event will Maxim allow separate  trading of the securities  comprising the
Units until the  Company  files a Current  Report on Form 8-K which  includes an
audited  balance  sheet  reflecting  the  receipt  by the  Company  of the gross
proceeds of the Public Offering  including the proceeds  received by the Company
from  the  exercise  of  the   Underwriter's   over-allotment   option,  if  the
over-allotment option is exercised prior to the filing of the Form 8-K.

            2.5 Warrants and  Representative's  Warrants.  The  Representative's
Warrants  shall  have  the same  terms  and be in the  same  form as the  Public
Warrants  except with respect to the Warrant Price as set forth below in Section
3.1.

      3. Terms and Exercise of Warrants.

            3.1 Warrant Price. Each Public Warrant shall, when  countersigned by
the  Warrant  Agent,  entitle  the  registered  holder  thereof,  subject to the
provisions  of such Public  Warrant and of this Warrant  Agreement,  to purchase
from the Company the number of shares of Common  Stock  stated  therein,  at the
price of $6.00 per whole share, subject to the adjustments provided in Section 4
hereof and in the last  sentence  of this  Section  3.1.  Each  Representative's
Warrant shall, when  countersigned by the Warrant Agent,  entitle the registered
holder thereof,  subject to the provisions of such Representative's  Warrant and
of this Warrant Agreement,  to purchase from the Company the number of shares of
Common Stock stated therein,  at the price of $7.50 per whole share,  subject to
the  adjustments  provided in Section 4 hereof and in the last  sentence of this
Section 3.1. The term "Warrant Price" as used in this Warrant  Agreement  refers
to the price  per share at which  Common  Stock may be  purchased  at the time a
Warrant is exercised.  The Company in its sole  discretion may lower the Warrant
Price at any time prior to the Expiration Date.

            3.2 Duration of Warrants. A Warrant may be exercised only during the
period  ("Exercise  Period")  commencing on the later of the consummation by the
Company of a merger, capital stock exchange,  asset acquisition or other similar
business  combination  ("Business  Combination") (as described more fully in the
Company's  Registration  Statement) or , 2006 and  terminating at 5:00 p.m., New
York City time on the  earlier to occur of (i) , 2009 or (ii) the date fixed for
redemption  of  the  Warrants  as  provided  in  Section  6  of  this  Agreement
("Expiration Date").  Except with respect to the right to receive the Redemption
Price (as set forth in Section 6  hereunder),  each Warrant not  exercised on or
before the Expiration Date shall become void, and all rights  thereunder and all
rights in respect  thereof  under  this  Agreement  shall  cease at the close of
business on the Expiration  Date. The Company in its sole  discretion may extend
the duration of the Warrants by delaying the Expiration Date.

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            3.3 Exercise of Warrants.

                  3.3.1  Payment.  Subject to the  provisions of the Warrant and
this Warrant Agreement,  a Warrant, when countersigned by the Warrant Agent, may
be exercised by the registered  holder thereof by surrendering it, at the office
of the Warrant Agent, or at the office of its successor as Warrant Agent, in the
Borough of Manhattan, City and State of New York, with the subscription form, as
set forth in the Warrant, duly executed,  and by paying in full, in lawful money
of the United States,  in cash,  good certified check or good bank draft payable
to the order of the  Company (or as  otherwise  agreed to by the  Company),  the
Warrant  Price for each full  share of Common  Stock as to which the  Warrant is
exercised and any and all applicable  taxes due in connection  with the exercise
of the  Warrant,  the  exchange  of the Warrant  for the Common  Stock,  and the
issuance of the Common Stock.

                  3.3.2 Issuance of Certificates.  As soon as practicable  after
the  exercise of any Warrant  and the  clearance  of the funds in payment of the
Warrant Price, the Company shall issue to the registered  holder of such Warrant
a certificate or  certificates  for the number of full shares of Common Stock to
which he is  entitled,  registered  in such name or names as may be  directed by
him, her or it, and if such Warrant shall not have been exercised in full, a new
countersigned  Warrant for the number of shares as to which such  Warrant  shall
not have been exercised. Notwithstanding the foregoing, the Company shall not be
obligated to deliver any securities pursuant to the exercise of a Warrant unless
(i) a registration  statement  under the Act with respect to the Common Stock is
effective or (ii) in the opinion of counsel to the Company,  the exercise of the
Warrants  is  exempt  from  the  registration  requirements  of the Act and such
securities are qualified for sale or exempt from qualification  under applicable
securities  laws of the states or other  jurisdictions  in which the  registered
holders reside.  Warrants may not be exercised by, or securities  issued to, any
registered holder in any state in which such exercise would be unlawful.

                  3.3.3 Valid  Issuance.  All shares of Common Stock issued upon
the proper  exercise of a Warrant in  conformity  with this  Agreement  shall be
validly issued, fully paid and nonassessable.

                  3.3.4  Date of  Issuance.  Each  person in whose name any such
certificate  for  shares of Common  Stock is issued  shall for all  purposes  be
deemed to have  become the holder of record of such  shares on the date on which
the  Warrant  was  surrendered  and  payment  of the  Warrant  Price  was  made,
irrespective  of the date of delivery of such  certificate,  except that, if the
date of such  surrender and payment is a date when the stock  transfer  books of
the Company are closed, such person shall be deemed to have become the holder of
such shares at the close of business  on the next  succeeding  date on which the
stock transfer books are open.

                  3.3.5 Warrant Solicitation and Warrant Solicitation Fee.

                         (a) The Company has  engaged  Maxim,  on  an  exclusive
basis, as its agent for the  solicitation  of the exercise of the Warrants.  The
Company,  at its cost, will: (i) assist Maxim with respect to such solicitation,
if requested by Maxim, and (ii) provide Maxim, and direct the Company's transfer
agent and the Warrant Agent to deliver to Maxim, lists of the record and, to the
extent known,  beneficial owners of the Company's  Warrants.  The Company hereby
instructs  the  Warrant  Agent to  cooperate  with  Maxim in  every  respect  in
connection with Maxim's solicitation activities,  including, but not limited to,
providing  to Maxim,  at the  Company's  cost,  a list of record and  beneficial

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holders of the  Warrants  and  circulating  a  prospectus  or offering  circular
disclosing the compensation arrangements referenced in Section 3.3.5(b) below to
holders of the Warrants at the time of exercise of the Warrants.  In addition to
the conditions set forth in Section 3.3.5(b),  Maxim shall accept payment of the
warrant  solicitation  fee provided in Section  3.3.5(b) only if it has provided
services to the Company in connection with the exercise of the Warrants and only
to  the  extent  that  an  investor  who  exercises  his  Warrants  specifically
designates,  in  writing,  that Maxim  solicited  his  exercise.  In addition to
soliciting,  either orally or in writing,  the exercise of Warrants by a Warrant
holder, such services may also include disseminating information,  either orally
or in  writing,  to  Warrant  holders  about the  Company  or the market for the
Company's  securities,  or  assisting  in  the  processing  of the  exercise  of
Warrants.

                         (b) In each  instance in which a Warrant is  exercised,
the Warrant  Agent shall  promptly  give written  notice of such exercise to the
Company and Maxim ("Warrant Agent's Exercise Notice").  If, upon the exercise of
any  Warrant  more than one year  from the  effective  date of the  Registration
Statement,  (i) the market price of the  Company's  Common Stock is greater than
the Warrant Price,  (ii)  disclosure of  compensation  arrangements  between the
Company  and Maxim  with  respect to the  solicitation  of the  exercise  of the
Warrants  was made both at the time of the  Public  Offering  and at the time of
exercise (by delivery of the  Prospectus or as otherwise  required by applicable
law, rule or  regulation),  (iii) the holder of the Warrant  confirms in writing
that the exercise of the Warrant was  solicited  by Maxim,  (iv) the Warrant was
not held in a discretionary account, and (v) the solicitation of the exercise of
the Warrant was not in violation of  Regulation M (as such rule or any successor
rule  may be in  effect  as of such  time of  exercise)  promulgated  under  the
Securities   Exchange  Act  of  1934,  as  amended,   then  the  Warrant  Agent,
simultaneously with the distribution of the Common Stock underlying the Warrants
so exercised in  accordance  with the  instructions  from the Company  following
receipt  of  the  proceeds  to  the  Company  received  upon  exercise  of  such
Warrant(s),  shall,  on behalf of the  Company,  pay a fee of 3% of the  Warrant
Price to Maxim,  provided  that Maxim  delivers to the Warrant  Agent within ten
(10) business days from the date on which Maxim has received the Warrant Agent's
Exercise  Notice,  a certificate  that the conditions set forth in the preceding
clauses (iii), (iv) and (v) have been satisfied.  Notwithstanding the foregoing,
no fee will be paid to Maxim with respect to the exercise by the Underwriters or
their affiliates or the Company's officers or directors of Warrants purchased by
it or them and still  held by them for its or their own  account.  Maxim and the
Company  may at any time  during  business  hours,  examine  the  records of the
Warrant Agent, including its ledger of original Warrant certificates returned to
the Warrant Agent upon exercise of Warrants.

                         (c) The  provisions  of  this  Section 3.3.5 may not be
modified, amended or deleted without the prior written consent of Maxim.

      4. Adjustments.

            4.1 Stock  Dividends  -  Split-Ups.  If after the date  hereof,  and
subject to the provisions of Section 4.6 below, the number of outstanding shares
of Common  Stock is increased  by a stock  dividend  payable in shares of Common
Stock, or by a split-up of shares of Common Stock, or other similar event, then,
on the effective date of such stock  dividend,  split-up or similar  event,  the
number of shares of Common Stock  issuable on exercise of each Warrant  shall be
increased in proportion to such increase in outstanding shares of Common Stock.

            4.2 Aggregation of Shares. If after the date hereof,  and subject to
the provisions of Section 4.6, the number of outstanding  shares of Common Stock
is  decreased  by  a   consolidation,   combination,   reverse  stock  split  or
reclassification  of shares of Common Stock or other similar event, then, on the
effective  date  of  such  consolidation,   combination,  reverse  stock  split,
reclassification or similar event, the number of shares of Common Stock issuable
on exercise of each Warrant shall be decreased in proportion to such decrease in
outstanding shares of Common Stock.

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            4.3 Adjustments in Exercise Price.  Whenever the number of shares of
Common Stock  purchasable  upon the  exercise of the  Warrants is  adjusted,  as
provided in Section 4.1 and 4.2 above,  the Warrant  Price shall be adjusted (to
the nearest cent) by multiplying  such Warrant Price  immediately  prior to such
adjustment  by a  fraction  (x) the  numerator  of which  shall be the number of
shares of Common Stock purchasable upon the exercise of the Warrants immediately
prior to such  adjustment,  and (y) the denominator of which shall be the number
of shares of Common Stock so purchasable immediately thereafter.

            4.4 Replacement of Securities upon  Reorganization,  etc. In case of
any reclassification or reorganization of the outstanding shares of Common Stock
(other than a change covered by Section 4.1 or 4.2 hereof or that solely affects
the par value of such shares of Common  Stock),  or in the case of any merger or
consolidation  of the Company  with or into  another  corporation  (other than a
consolidation  or merger in which the Company is the continuing  corporation and
that  does  not  result  in  any   reclassification  or  reorganization  of  the
outstanding shares of Common Stock), or in the case of any sale or conveyance to
another  corporation or entity of the assets or other property of the Company as
an entirety or substantially as an entirety in connection with which the Company
is dissolved,  the Warrant  holders shall  thereafter have the right to purchase
and receive,  upon the basis and upon the terms and conditions  specified in the
Warrants  and in lieu of the shares of Common  Stock of the Company  immediately
theretofore   purchasable  and  receivable  upon  the  exercise  of  the  rights
represented  thereby, the kind and amount of shares of stock or other securities
or   property   (including   cash)   receivable   upon  such   reclassification,
reorganization,  merger or  consolidation,  or upon a dissolution  following any
such sale or  transfer,  that the  Warrant  holder  would have  received if such
Warrant  holder had exercised his, her or its  Warrant(s)  immediately  prior to
such event;  and if any  reclassification  also results in a change in shares of
Common Stock covered by Section 4.1 or 4.2, then such  adjustment  shall be made
pursuant to Sections 4.1, 4.2, 4.3 and this Section 4.4. The  provisions of this
Section   4.4   shall   similarly   apply   to   successive   reclassifications,
reorganizations, mergers or consolidations, sales or other transfers.

            4.5  Notices of Changes in  Warrant.  Upon every  adjustment  of the
Warrant Price or the number of shares  issuable upon exercise of a Warrant,  the
Company shall give written  notice  thereof to the Warrant  Agent,  which notice
shall state the Warrant Price resulting from such adjustment and the increase or
decrease,  if any,  in the number of shares  purchasable  at such price upon the
exercise  of a  Warrant,  setting  forth in  reasonable  detail  the  method  of
calculation  and the facts  upon  which  such  calculation  is  based.  Upon the
occurrence of any event specified in Sections 4.1, 4.2, 4.3 or 4.4, then, in any
such event, the Company shall give written notice to the Warrant holder,  at the
last  address set forth for such holder in the warrant  register,  of the record
date or the  effective  date of the event.  Failure to give such notice,  or any
defect therein, shall not affect the legality or validity of such event.

            4.6 No Fractional Shares. Notwithstanding any provision contained in
this Warrant  Agreement to the contrary,  the Company shall not issue fractional
shares upon exercise of Warrants.  If, by reason of any adjustment made pursuant
to this  Section  4, the  holder  of any  Warrant  would be  entitled,  upon the
exercise of such  Warrant,  to receive a  fractional  interest  in a share,  the
Company  shall,  upon such  exercise,  round up to the nearest  whole number the
number of the shares of Common Stock to be issued to the Warrant holder.

            4.7 Form of Warrant. The form of Warrant need not be changed because
of any  adjustment  pursuant to this Section 4, and  Warrants  issued after such
adjustment  may state the same Warrant Price and the same number of shares as is
stated in the Warrants initially issued pursuant to this Agreement. However, the
Company  may at any time in its sole  discretion  make any change in the form of
Warrant  that the  Company  may deem  appropriate  and that does not  affect the
substance thereof,  and any Warrant thereafter issued or countersigned,  whether
in exchange or substitution for an outstanding  Warrant or otherwise,  may be in
the form as so changed.

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      5. Transfer and Exchange of Warrants.

            5.1  Registration of Transfer.  The Warrant Agent shall register the
transfer,  from  time to time,  of any  outstanding  Warrant  upon  the  Warrant
Register,  upon surrender of such Warrant for transfer,  properly  endorsed with
signatures properly  guaranteed and accompanied by appropriate  instructions for
transfer.  Upon any such transfer, a new Warrant representing an equal aggregate
number of Warrants shall be issued and the old Warrant shall be cancelled by the
Warrant Agent. The Warrants so cancelled shall be delivered by the Warrant Agent
to the Company from time to time upon request.

            5.2 Procedure for Surrender of Warrants. Warrants may be surrendered
to the Warrant Agent,  together with a written request for exchange or transfer,
and thereupon the Warrant Agent shall issue in exchange therefor one or more new
Warrants as requested by the registered  holder of the Warrants so  surrendered,
representing an equal aggregate number of Warrants;  provided,  however, that in
the event that a Warrant  surrendered  for transfer bears a restrictive  legend,
the  Warrant  Agent  shall not cancel  such  Warrant  and issue new  Warrants in
exchange therefor until the Warrant Agent has received an opinion of counsel for
the Company  stating that such transfer may be made and  indicating  whether the
new Warrants must also bear a restrictive legend.

            5.3 Fractional Warrants.  The Warrant Agent shall not be required to
effect any  registration  of  transfer  or  exchange  which  will  result in the
issuance of a warrant certificate for a fraction of a warrant.

            5.4  Service  Charges.  No  service  charge  shall  be made  for any
exchange or registration of transfer of Warrants.

            5.5 Warrant  Execution  and  Countersignature.  The Warrant Agent is
hereby authorized to countersign and to deliver, in accordance with the terms of
this Agreement, the Warrants required to be issued pursuant to the provisions of
this Section 5, and the Company,  whenever  required by the Warrant Agent,  will
supply the Warrant  Agent with  Warrants  duly executed on behalf of the Company
for such purpose.

      6. Redemption.

            6.1 Redemption.  Subject to Section 6.4 hereof, not less than all of
the outstanding  Warrants may be redeemed,  at the option of the Company, at any
time after they become exercisable and prior to their expiration,  at the office
of the Warrant Agent,  upon the notice referred to in Section 6.2., at the price
of $.01 per Warrant ("Redemption Price"),  provided that the last sales price of
the Common  Stock has been at least  $11.50 per  share,  on each of twenty  (20)
trading  days  within any thirty  (30)  trading  day period  ending on the third
business  day prior to the date on which  notice  of  redemption  is given.  The
provisions of this Section 6.1 may not be modified,  amended or deleted  without
the prior written consent of Maxim.

            6.2 Date Fixed for,  and  Notice  of,  Redemption.  In the event the
Company shall elect to redeem all of the Warrants,  the Company shall fix a date
for the  redemption.  Notice of redemption  shall be mailed by first class mail,
postage  prepaid,  by the  Company not less than 30 days prior to the date fixed
for redemption to the registered holders of the Warrants to be redeemed at their
last addresses as they shall appear on the registration books. Any notice mailed
in the manner herein provided shall be  conclusively  presumed to have been duly
given whether or not the registered holder received such notice.

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            6.3  Exercise  After  Notice  of  Redemption.  The  Warrants  may be
exercised  in  accordance  with  Section 3 of this  Agreement  at any time after
notice of  redemption  shall have been given by the Company  pursuant to Section
6.2.  hereof and prior to the time and date fixed for  redemption.  On and after
the  redemption  date,  the record holder of the Warrants  shall have no further
rights except to receive, upon surrender of the Warrants, the Redemption Price.

            6.4  Outstanding  Warrants  Only. The Company  understands  that the
redemption  rights  provided  for by this  Section 6 apply  only to  outstanding
Warrants.  To the  extent a person  holds  rights  to  purchase  Warrants,  such
purchase  rights shall not be  extinguished  by redemption.  However,  once such
purchase  rights are exercised,  the Company may redeem the Warrants issued upon
such exercise  provided that the criteria for  redemption is met. The provisions
of this  Section 6.4 may not be modified,  amended or deleted  without the prior
written consent of Maxim.

      7. Other Provisions Relating to Rights of Holders of Warrants.

            7.1 No  Rights  as  Stockholder.  A  Warrant  does not  entitle  the
registered  holder thereof to any of the rights of a stockholder of the Company,
including,  without  limitation,  the  right  to  receive  dividends,  or  other
distributions,  exercise  any  preemptive  rights  to vote or to  consent  or to
receive notice as stockholders in respect of the meetings of stockholders or the
election of directors of the Company or any other matter.

            7.2 Lost, Stolen,  Mutilated,  or Destroyed Warrants. If any Warrant
is lost, stolen,  mutilated, or destroyed, the Company and the Warrant Agent may
on such  terms as to  indemnity  or  otherwise  as they may in their  discretion
impose (which shall, in the case of a mutilated  Warrant,  include the surrender
thereof),  issue a new  Warrant  of like  denomination,  tenor,  and date as the
Warrant so lost,  stolen,  mutilated,  or destroyed.  Any such new Warrant shall
constitute a substitute  contractual  obligation of the Company,  whether or not
the allegedly lost, stolen, mutilated, or destroyed Warrant shall be at any time
enforceable by anyone.

            7.3  Reservation  of Common  Stock.  The Company  shall at all times
reserve and keep  available a number of its  authorized  but unissued  shares of
Common  Stock  that will be  sufficient  to permit the  exercise  in full of all
outstanding Warrants issued pursuant to this Agreement.

            7.4  Registration of Common Stock.  The Company agrees that prior to
the commencement of the Exercise  Period,  it shall file with the Securities and
Exchange Commission a post-effective amendment to the Registration Statement, or
a new registration  statement,  for the registration,  under the Act, of, and it
shall take such action as is necessary  to qualify for sale,  in those states in
which the  Warrants  were  initially  offered by the  Company,  the Common Stock
issuable upon exercise of the Warrants. In either case, the Company will use its
best  efforts  to  cause  the  same to  become  effective  and to  maintain  the
effectiveness  of  such  registration  statement  until  the  expiration  of the
Warrants in accordance with the provisions of this Agreement.  The provisions of
this  Section  7.4 may not be  modified,  amended or deleted  without  the prior
written consent of Maxim.

      8. Concerning the Warrant Agent and Other Matters.

            8.1 Payment of Taxes.  The Company  will from time to time  promptly
pay all taxes and  charges  that may be imposed  upon the Company or the Warrant
Agent in respect of the  issuance or delivery of shares of Common Stock upon the
exercise of Warrants, but the Company shall not be obligated to pay any transfer
taxes in respect of the Warrants or such shares.

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            8.2 Resignation, Consolidation, or Merger of Warrant Agent.

                  8.2.1  Appointment  of Successor  Warrant  Agent.  The Warrant
Agent, or any successor to it hereafter appointed,  may resign its duties and be
discharged from all further duties and liabilities  hereunder after giving sixty
(60) days' notice in writing to the Company.  If the office of the Warrant Agent
becomes  vacant by  resignation  or incapacity to act or otherwise,  the Company
shall  appoint  in writing a  successor  Warrant  Agent in place of the  Warrant
Agent. If the Company shall fail to make such appointment  within a period of 30
days after it has been notified in writing of such  resignation or incapacity by
the Warrant Agent or by the holder of the Warrant (who shall,  with such notice,
submit  his  Warrant  for  inspection  by the  Company),  then the holder of any
Warrant may apply to the  Supreme  Court of the State of New York for the County
of New York for the  appointment  of a successor  Warrant Agent at the Company's
cost. Any successor  Warrant Agent,  whether appointed by the Company or by such
court, shall be a corporation organized and existing under the laws of the State
of New York, in good standing and having its principal  office in the Borough of
Manhattan,  City and  State of New  York,  and  authorized  under  such  laws to
exercise  corporate  trust powers and subject to  supervision  or examination by
federal or state authority. After appointment, any successor Warrant Agent shall
be vested  with all the  authority,  powers,  rights,  immunities,  duties,  and
obligations of its  predecessor  Warrant Agent with like effect as if originally
named as Warrant Agent  hereunder,  without any further act or deed;  but if for
any reason it becomes  necessary or appropriate,  the predecessor  Warrant Agent
shall  execute  and  deliver,  at the  expense  of the  Company,  an  instrument
transferring  to such  successor  Warrant Agent all the authority,  powers,  and
rights of such  predecessor  Warrant  Agent  hereunder;  and upon request of any
successor  Warrant  Agent the Company  shall  make,  execute,  acknowledge,  and
deliver  any and all  instruments  in  writing  for more  fully and  effectually
vesting in and  confirming to such successor  Warrant Agent all such  authority,
powers, rights, immunities, duties, and obligations.

                  8.2.2  Notice  of  Successor  Warrant  Agent.  In the  event a
successor  Warrant  Agent  shall be  appointed,  the  Company  shall give notice
thereof to the  predecessor  Warrant Agent and the transfer agent for the Common
Stock not later than the effective date of any such appointment.

                  8.2.3  Merger  or   Consolidation   of  Warrant   Agent.   Any
corporation  into which the Warrant  Agent may be merged or with which it may be
consolidated or any corporation  resulting from any merger or  consolidation  to
which the Warrant  Agent shall be a party shall be the  successor  Warrant Agent
under this Agreement without any further act.

            8.3 Fees and Expenses of Warrant Agent.

                  8.3.1  Remuneration.  The  Company  agrees to pay the  Warrant
Agent the fees set forth on Exhibit A hereto for its  services as Warrant  Agent
hereunder and will  reimburse  the Warrant Agent upon demand for all  documented
expenditures that the Warrant Agent may reasonably incur in the execution of its
duties hereunder.

                  8.3.2  Further  Assurances.  The  Company  agrees to  perform,
execute,   acknowledge,  and  deliver  or  cause  to  be  performed,   executed,
acknowledged,  and delivered all such further and other acts,  instruments,  and
assurances  as may  reasonably be required by the Warrant Agent for the carrying
out or performing of the provisions of this Agreement.

                                       8
<PAGE>

            8.4 Liability of Warrant Agent.

                  8.4.1   Reliance  on  Company   Statement.   Whenever  in  the
performance of its duties under this Warrant Agreement,  the Warrant Agent shall
deem it necessary or desirable  that any fact or matter be proved or established
by the Company prior to taking or suffering any action  hereunder,  such fact or
matter  (unless  other  evidence  in  respect  thereof  be  herein  specifically
prescribed)  may be  deemed  to be  conclusively  proved  and  established  by a
statement  signed by the  President  or Chairman of the Board of the Company and
delivered to the Warrant  Agent.  The Warrant Agent may rely upon such statement
for any action taken or suffered in good faith by it pursuant to the  provisions
of this Agreement.

                  8.4.2  Indemnity.  The Warrant Agent shall be liable hereunder
only for its own negligence, willful misconduct or bad faith. The Company agrees
to  indemnify  the  Warrant  Agent  and  save it  harmless  against  any and all
liabilities,  including  judgments,  costs  and  reasonable  counsel  fees,  for
anything done or omitted by the Warrant Agent in the execution of this Agreement
except as a result of the Warrant Agent's negligence, willful misconduct, or bad
faith.

                  8.4.3   Exclusions.   The   Warrant   Agent   shall   have  no
responsibility with respect to the validity of this Agreement or with respect to
the validity or execution of any Warrant (except its countersignature  thereof);
nor shall it be  responsible  for any breach by the  Company of any  covenant or
condition  contained  in this  Agreement  or in any  Warrant;  nor  shall  it be
responsible to make any  adjustments  required under the provisions of Section 4
hereof or responsible for the manner,  method,  or amount of any such adjustment
or the  ascertaining  of the  existence  of facts  that would  require  any such
adjustment;   nor  shall  it  by  any  act  hereunder  be  deemed  to  make  any
representation  or warranty as to the authorization or reservation of any shares
of Common Stock to be issued  pursuant to this Agreement or any Warrant or as to
whether any shares of Common  Stock will when issued be valid and fully paid and
nonassessable.

            8.5  Acceptance  of Agency.  The Warrant  Agent  hereby  accepts the
agency  established  by this  Agreement  and agrees to perform the same upon the
terms and  conditions  herein set forth and among other  things,  shall  account
promptly to the Company  with  respect to Warrants  exercised  and  concurrently
account for, and pay to the Company,  all moneys  received by the Warrant  Agent
for the purchase of shares of the Company's Common Stock through the exercise of
Warrants.

      9. Miscellaneous Provisions.

            9.1  Successors.  All the covenants and provisions of this Agreement
by or for the benefit of the  Company or the Warrant  Agent shall bind and inure
to the benefit of their respective successors and assigns.

            9.2  Notices.  Any notice,  statement or demand  authorized  by this
Warrant  Agreement to be given or made by the Warrant  Agent or by the holder of
any Warrant to or on the Company shall be  sufficiently  given when so delivered
if by hand, overnight delivery or facsimile  transmission  (followed by delivery
by regular mail) or if sent by certified mail or private  courier service within
five days after  deposit  of such  notice,  postage  prepaid,  addressed  (until
another address is filed in writing by the Company with the Warrant  Agent),  as
follows:

                         Key Hospitality Acquisition Corporation
                         1775 Broadway, Suite 604
                         New York, NY 10019
                         Attn:  Chairman
                         Fax No.: __________________

                                       9
<PAGE>

Any notice, statement or demand authorized by this Agreement to be given or made
by the holder of any Warrant or by the Company to or on the Warrant  Agent shall
be sufficiently  given when so delivered if by hand or overnight  delivery or if
sent by certified mail or private courier service within five days after deposit
of such notice,  postage  prepaid,  addressed (until another address is filed in
writing by the Warrant Agent with the Company), as follows:

                         Continental Stock Transfer & Trust Company
                         17 Battery Place
                         New York, New York 10004
                         Attn:  Compliance Department
                         Fax No.: __________________

                  with a copy in each case to:

                         Ellenoff Grossman & Schole LLP
                         370 Lexington, 19th Floor
                         New York, NY 10017
                         Attn:  Douglas S. Ellenoff, Esq.
                         Fax No.: (212) 370-7889

                  and

                         Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.
                         666 Third Avenue
                         New York, New York 10017
                         Attn:  Kenneth R. Koch, Esq.
                         Fax No.: (212) 983-3115

                  and

                         Maxim Group LLC
                         405 Lexington Ave.
                         New York, NY 10174
                         Attn:  Clifford A. Teller
                         Fax No.: (212) 895-3783

            9.3 Applicable law. The validity, interpretation, and performance of
this Agreement and of the Warrants shall be governed in all respects by the laws
of the State of New York, without giving effect to conflict of laws. The Company
hereby agrees that any action,  proceeding or claim against it arising out of or
relating  in any way to this  Agreement  shall be brought  and  enforced  in the
courts of the State of New York located in New York County or the United  States
District Court for the Southern District of New York, and irrevocably submits to
such jurisdiction,  which  jurisdiction  shall be exclusive.  The Company hereby
waives  any  objection  to such  exclusive  jurisdiction  and that  such  courts
represent an inconvenience  forum. Any such process or summons to be served upon
the  Company  may be served by  transmitting  a copy  thereof by  registered  or
certified mail, return receipt  requested,  postage prepaid,  addressed to it at
the  address  set forth in Section  9.2  hereof.  Such  mailing  shall be deemed
personal  service and shall be legal and binding upon the Company in any action,
proceeding or claim.

            9.4 Persons  Having  Rights  under this  Agreement.  Nothing in this
Agreement  expressed and nothing that may be implied from any of the  provisions
hereof is  intended,  or shall be  construed,  to confer  upon,  or give to, any
person or entity other than the parties hereto and the registered holders of the

                                       10
<PAGE>

Warrants  (who  shall,  for  all  purposes  hereunder,  be  deemed  third  party
beneficiaries  of this Agreement) and, for the purposes of Sections 3.3.5,  6.1,
6.4, 7.4 and 9.2 hereof,  Maxim, any right,  remedy, or claim under or by reason
of this Warrant Agreement or of any covenant, condition,  stipulation,  promise,
or agreement hereof. It is specifically  agreed that Maxim shall be deemed to be
a third-party beneficiary of this Agreement with respect to Sections 3.3.5, 6.1,
6.4, 7.4 and 9.2 hereof. All covenants, conditions,  stipulations, promises, and
agreements  contained  in this  Warrant  Agreement  shall  be for the  sole  and
exclusive  benefit of the parties hereto (and Maxim with respect to the Sections
3.3.5, 6.1, 6.4, 7.4 and 9.2 hereof) and their successors and assigns and of the
registered holders of the Warrants.

            9.5 Examination of the Warrant  Agreement.  A copy of this Agreement
shall be available at all reasonable times at the office of the Warrant Agent in
the Borough of  Manhattan,  City and State of New York,  for  inspection  by the
registered holder of any Warrant.  The Warrant Agent may require any such holder
to submit his Warrant for inspection by it.

            9.6  Counterparts.  This  Agreement may be executed in any number of
counterparts  and  each of  such  counterparts  may be  delivered  by  facsimile
transmission  and shall for all  purposes be deemed to be an  original,  and all
such counterparts shall together constitute but one and the same instrument.

            9.7  Effect  of  Headings.  The  Section  headings  herein  are  for
convenience only and are not part of this Warrant Agreement and shall not affect
the interpretation thereof.

      IN WITNESS  WHEREOF,  this Agreement has been duly executed by the parties
hereto as of the day and year first above written.

Attest                                  KEY HOSPITALITY ACQUISITION CORPORATION

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

                                        CONTINENTAL STOCK TRANSFER
Attest                                    & TRUST COMPANY

                                        By:
--------------------------------------     -------------------------------------
                                           Name:    Steven Nelson
                                           Title:   Chairman

                                       11
<PAGE>

                                    Exhibit A

                               Warrant Agent Fees

                                       1Exhibit 4.5

                              UNIT PURCHASE OPTION

                               FOR THE PURCHASE OF

                                  300,000 UNITS

                                       OF

                     KEY HOSPITALITY ACQUISITION CORPORATION

                                       i
<PAGE>

                                TABLE OF CONTENTS

                                                                            Page

1.   PURCHASE OPTION...........................................................1

2.   EXERCISE..................................................................2

     2.1    Exercise Form......................................................2

     2.2    Legend.............................................................2

     2.3    Cashless Exercise..................................................2

            2.3.1   Determination of Amount....................................2

            2.3.2   Mechanics of Cashless Exercise.............................3

3.   TRANSFER..................................................................3

     3.1    General Restrictions...............................................3

     3.2    Restrictions Imposed by the Act....................................3

4.   NEW PURCHASE OPTIONS TO BE ISSUED.........................................3

     4.1    Partial Exercise or Transfer.......................................3

     4.2    Lost Certificate...................................................3

5.   REGISTRATION RIGHTS.......................................................4

     5.1    Demand Registration................................................4

            5.1.1   Grant of Right.............................................4

            5.1.2   Terms......................................................4

     5.2    "Piggy-Back" Registration..........................................4

            5.2.1   Grant of Right.............................................4

            5.2.2   Terms......................................................5

     5.3    Damages............................................................5

     5.4    General Terms......................................................5

            5.4.1   Indemnification............................................5

            5.4.2   Exercise of Purchase Options...............................6

            5.4.3   Documents Delivered to Holders.............................6

            5.4.4   Underwriting Agreement.....................................6

            5.4.5   Rule 144 Sale..............................................7

            5.4.6   Supplemental Prospectus....................................7

6.   ADJUSTMENTS...............................................................7

     6.1    Adjustments to Exercise Price and Number of Securities.............7

            6.1.1   Stock Dividends - Split-Ups................................7

            6.1.2   Aggregation of Shares......................................8

                                       ii
<PAGE>

            6.1.3   Replacement of Securities upon Reorganization, etc.........8

            6.1.4   Changes in Form of Purchase Option.........................8

     6.2    Substitute Purchase Option.........................................8

     6.3    Elimination of Fractional Interests................................9

7.   RESERVATION AND LISTING...................................................9

8.   CERTAIN NOTICE REQUIREMENTS...............................................9

     8.1    Holder's Right to Receive Notice...................................9

     8.2    Events Requiring Notice............................................9

     8.3    Notice of Change in Exercise Price................................10

     8.4    Transmittal of Notices............................................10

9.   MISCELLANEOUS............................................................10

     9.1    Amendments........................................................10

     9.2    Headings..........................................................10

10.  ENTIRE AGREEMENT.........................................................10

     10.1   Binding Effect....................................................10

     10.2   Governing Law; Submission to Jurisdiction.........................10

     10.3   Waiver, Etc.......................................................11

     10.4   Exchange Agreement................................................11

     10.5   Underlying Warrants...............................................11

                                      iii
<PAGE>

THE REGISTERED HOLDER OF THIS PURCHASE OPTION, BY ITS ACCEPTANCE HEREOF,  AGREES
THAT IT WILL NOT SELL, TRANSFER OR ASSIGN THIS PURCHASE OPTION, EXCEPT AS HEREIN
PROVIDED,  AND THE REGISTERED HOLDER OF THIS PURCHASE OPTION AGREES THAT IT WILL
NOT SELL,  TRANSFER,  ASSIGN,  PLEDGE OR HYPOTHECATE  THIS PURCHASE OPTION FOR A
PERIOD OF ONE YEAR FOLLOWING THE EFFECTIVE DATE (DEFINED  BELOW) TO ANYONE OTHER
THAN (I) MAXIM GROUP LLC OR ITS  AFFILIATES  ("MAXIM")  OR AN  UNDERWRITER  OR A
SELECTED DEALER IN CONNECTION WITH THE OFFERING (DEFINED HEREIN), OR (II) A BONA
FIDE  OFFICER,  PARTNER  OR  EMPLOYEE  OF MAXIM OR OF ANY  SUCH  UNDERWRITER  OR
SELECTED DEALER.

THIS   PURCHASE   OPTION  IS  NOT   EXERCISABLE   PRIOR  TO  THE  LATER  OF  (I)
______________,  2006 AND (II) THE  CONSUMMATION BY KEY HOSPITALITY  ACQUISITION
CORPORATION  ("COMPANY") OF A MERGER, CAPITAL STOCK EXCHANGE,  ASSET ACQUISITION
OR OTHER SIMILAR BUSINESS  COMBINATION  ("BUSINESS  COMBINATION")  (AS DESCRIBED
MORE FULLY IN THE  COMPANY'S  REGISTRATION  STATEMENT  (DEFINED  HEREIN)).  THIS
PURCHASE  OPTION  SHALL  BE  VOID  AFTER  5:00  P.M,  NEW  YORK  CITY  TIME,  ON
_____________, 2010.

                              UNIT PURCHASE OPTION

                               FOR THE PURCHASE OF

                                  300,000 UNITS

                                       OF

                     KEY HOSPITALITY ACQUISITION CORPORATION

1. Purchase Option.

      THIS CERTIFIES THAT, in consideration of $100 duly paid by or on behalf of
Maxim Partners LLC  (collectively,  with its  successors  and permitted  assigns
and/or transferees,  the "Holder"),  as registered owner of this Purchase Option
(the "Purchase Option"), to Key Hospitality Acquisition Corporation ("Company"),
Holder  is  entitled,  at any time or from  time to time  upon the  later of (i)
___________,   2006  and  (ii)  the  consummation  of  a  Business   Combination
("Commencement  Date"),  and  at or  before  5:00  p.m.,  New  York  City  Time,
_____________,  2010 ("Expiration Date"), but not thereafter,  to subscribe for,
purchase  and  receive,  in  whole  or in part,  up to  Three  Hundred  Thousand
(300,000) units ("Units") of the Company, with each Unit consisting of one share
of common stock of the Company,  par value $.001 per share ("Common Stock"), and
one  warrant  ("Warrant(s)")   expiring  four  years  from  the  effective  date
("Effective  Date") of the  registration  statement  ("Registration  Statement")
pursuant to which Units are  offered for sale to the public  ("Offering").  Each
Warrant is the same as the warrants  included in the Units being  registered for
sale to the public by way of the  Registration  Statement  ("Public  Warrants"),
except that the Warrants  underlying the Units  comprising  this Purchase Option
have an exercise price of $7.50 per share.  If the  Expiration  Date is a day on
which banking  institutions  are authorized by law to close,  then this Purchase
Option may be  exercised on the next  succeeding  day which is not such a day in
accordance  with the terms herein.  During the period  ending on the  Expiration
Date,  the  Company  agrees not to take any  action  that  would  terminate  the
Purchase Option. This Purchase Option is initially exercisable at $8.80 per Unit
so purchased;  provided,  however, that upon the occurrence of any of the events
specified  in Section 6 hereof,  the rights  granted  by this  Purchase  Option,
including  the  exercise  price per Unit and the number of Units (and  shares of
Common Stock and Warrants) to be received upon such exercise,  shall be adjusted
as therein specified.  The term "Exercise Price" shall mean the initial exercise
price or the adjusted exercise price, as the context requires.

<PAGE>

2.    Exercise.

      2.1 Exercise Form. In order to exercise this Purchase Option, the exercise
form  attached  hereto must be duly  executed and completed and delivered to the
Company,  together with this Purchase  Option and payment of the Exercise  Price
for the Units being purchased  payable in cash or by certified check or official
bank check. If the subscription rights represented hereby shall not be exercised
at or before  5:00  p.m.,  New York City  Time,  on the  Expiration  Date,  this
Purchase  Option shall become and be void without  further force or effect,  and
all rights represented hereby shall cease and expire.

      2.2 Legend.  If necessary,  each certificate for the securities  purchased
under this Purchase Option shall bear a legend as follows unless such securities
have been registered under the Securities Act of 1933, as amended ("Act"):

                  "The securities  represented by this certificate have not been
                  registered  under  the  Securities  Act of  1933,  as  amended
                  ("Act") or  applicable  state law. The  securities  may not be
                  offered  for  sale,  sold  or  otherwise   transferred  except
                  pursuant to an effective registration statement under the Act,
                  or pursuant to an exemption  from  registration  under the Act
                  and applicable state law."

      2.3 Cashless Exercise.

            2.3.1  Determination  of  Amount.  In  lieu  of the  payment  of the
Exercise Price  multiplied by the number of Units for which this Purchase Option
is  exercisable  (and in lieu of being  entitled  to  receive  Common  Stock and
Warrants) in the manner required by Section 2.1, the Holder shall have the right
(but not the obligation) to convert any  exercisable but unexercised  portion of
this Purchase Option into Units  ("Cashless  Exercise  Right") as follows:  upon
exercise of the Cashless Exercise Right, the Company shall deliver to the Holder
(without payment by the Holder of any of the Exercise Price in cash) that number
of shares of Common Stock and Warrants  comprising that number of Units equal to
the  quotient  obtained  by dividing  (x) the "Value" (as defined  below) of the
portion of the Purchase  Option being  converted by (y) the Current Market Value
(as defined  below).  The "Value" of the portion of the  Purchase  Option  being
converted  shall  equal  the  remainder  derived  from  subtracting  (a) (i) the
Exercise Price  multiplied by (ii) the number of Units underlying the portion of
this Purchase Option being converted from (b) the Current Market Value of a Unit
multiplied by the number of Units  underlying the portion of the Purchase Option
being converted. As used herein, the term "Current Market Value" per Unit at any
date means the remainder  derived from subtracting (x) the exercise price of the
Warrants  multiplied  by the  number of shares of  Common  Stock  issuable  upon
exercise of the  Warrants  underlying  one Unit from (y) (i) the Current  Market
Price of the  Common  Stock  multiplied  by (ii) the  number of shares of Common
Stock  underlying  one Unit,  which  shall  include  the shares of Common  Stock
underlying the Warrants  included in such Unit. The "Current  Market Price" of a
share of Common Stock shall mean (i) if the Common Stock is listed on a national
securities  exchange or quoted on the Nasdaq  National  Market,  Nasdaq SmallCap
Market or NASD OTC Bulletin  Board (or successor  trading  market),  the average
last sale  price of the Common  Stock in the  principal  trading  market for the
Common Stock as reported by the  exchange,  Nasdaq or the NASD,  as the case may
be, for the 5 trading  days prior to  exercise;  (ii) if the Common Stock is not
listed on a  national  securities  exchange  or quoted  on the  Nasdaq  National
Market,  Nasdaq  SmallCap  Market or the NASD OTC Bulletin  Board (or  successor
trading  market),  but is traded in the residual  over-the-counter  market,  the
average closing sale price for the Common Stock for the 5 trading days preceding
the date of exercise for which such  quotations are reported by the Pink Sheets,
LLC or similar publisher of such quotations;  and (iii) if the fair market value
of the Common Stock cannot be  determined  pursuant to clause (i) or (ii) above,
such price as the Board of Directors  of the Company  shall  determine,  in good
faith,  with reference to industry  standard  methods of evaluating  fair market
value.

                                       2
<PAGE>

            2.3.2 Mechanics of Cashless  Exercise.  The Cashless  Exercise Right
may be exercised by the Holder on any business day on or after the  Commencement
Date and not later than the Expiration  Date by delivering  the Purchase  Option
with the duly executed  exercise form attached hereto with the cashless exercise
section  completed to the Company,  exercising  the Cashless  Exercise Right and
specifying  the total number of Units the Holder will purchase  pursuant to such
Cashless Exercise Right.

3.    Transfer.

      3.1 General  Restrictions.  The registered Holder of this Purchase Option,
by its acceptance hereof, agrees that it will not sell, transfer, assign, pledge
or  hypothecate  this  Purchase  Option for a period of one year  following  the
Effective  Date  to  anyone  other  than  (i)  Maxim  or  its  affiliates  or an
underwriter or a selected dealer in connection with the Offering, or (ii) a bona
fide  officer,  partner  or  employee  of Maxim or of any  such  underwriter  or
selected  dealer.  On and after the first  anniversary  of the  Effective  Date,
transfers to others may be made subject to compliance  with or  exemptions  from
applicable  securities  laws.  In order to make any  permitted  assignment,  the
Holder must  deliver to the Company the  assignment  form  attached  hereto duly
executed and  completed,  together  with the Purchase  Option and payment of all
transfer  taxes,  if any,  payable in connection  therewith.  The Company shall,
within five  business  days of its  receipt of such  assignment,  transfer  this
Purchase  Option on the books of the Company and shall execute and deliver a new
Purchase Option or Purchase Options of like tenor to the appropriate assignee(s)
expressly  evidencing  the  right to  purchase  the  aggregate  number  of Units
purchasable hereunder or such portion of such number as shall be contemplated by
any such assignment.

      3.2  Restrictions  Imposed by the Act.  The  securities  evidenced by this
Purchase  Option shall not be  transferred  unless and until (i) the Company has
received  the  opinion of  counsel  for the Holder  that the  securities  may be
transferred  pursuant  to an  exemption  from  registration  under  the  Act and
applicable  state  securities  laws, the availability of which is established to
the reasonable satisfaction of the Company (the Company hereby agreeing that the
opinion of Ellenoff Grossman & Schole LLP shall be deemed satisfactory  evidence
of the availability of an exemption),  or (ii) the Registration Statement (which
shall register all Registrable  Securities (as defined below), and including any
post-effective  amendment thereto) or another registration statement relating to
such  securities  has been filed by the Company and  declared  effective  by the
Securities  and  Exchange   Commission  and  compliance  with  applicable  state
securities law has been established.

4.    New Purchase Options to be Issued.

      4.1 Partial Exercise or Transfer. Subject to the restrictions in Section 3
hereof,  this Purchase  Option may be exercised or assigned in whole or in part,
in the  discretion  of the Holder.  In the event of the  exercise or  assignment
hereof in part only,  upon surrender of this Purchase  Option for  cancellation,
together with the duly executed  exercise or assignment  form and, except in the
case of an exercise of this Purchase Option  contemplated by Section 2.3 hereof,
funds  sufficient  to pay any Exercise  Price and/or  transfer  tax, the Company
shall cause to be delivered to the Holder without  charge a new Purchase  Option
of like tenor to this Purchase  Option in the name of the Holder  evidencing the
right of the Holder to purchase the number of Units purchasable  hereunder as to
which this Purchase Option has not been exercised or assigned.

      4.2 Lost Certificate. Upon receipt by the Company of evidence satisfactory
to it of the loss, theft,  destruction or mutilation of this Purchase Option and
of reasonably satisfactory indemnification or the posting of a bond, the Company
shall execute and deliver a new Purchase Option of like tenor and date. Any such
new  Purchase  Option  executed and  delivered as a result of such loss,  theft,
mutilation or destruction shall constitute a substitute  contractual  obligation
on the part of the Company.

                                       3
<PAGE>

5.    Registration Rights.

      5.1 Demand Registration.

            5.1.1 Grant of Right.  The Company,  upon written  demand  ("Initial
Demand Notice") of the Holder(s) of at least 51% of the Purchase  Options and/or
the underlying  Units and/or the  underlying  securities  ("Majority  Holders"),
register, on one occasion,  all or any portion of the Purchase Options requested
by the Majority  Holders in the Initial  Demand Notice and all of the securities
underlying  such  Purchase  Options,  including  the Units,  Common  Stock,  the
Warrants  and the  Common  Stock  underlying  the  Warrants  (collectively,  the
"Registrable   Securities").   On  such  occasion,   the  Company  will  file  a
registration  statement  or  a  post-effective  amendment  to  the  Registration
Statement  covering the Registrable  Securities within thirty days after receipt
of the Initial Demand Notice and use its best efforts to have such  registration
statement or  post-effective  amendment  declared  effective as soon as possible
thereafter.  The demand for registration may be made at any time during a period
of five years beginning on the Effective Date. The Company  covenants and agrees
to give  written  notice of its  receipt  of any  Initial  Demand  Notice by any
Holder(s) to all other  registered  Holders of the Purchase  Options  and/or the
Registrable  Securities within ten days from the date of the receipt of any such
Initial Demand Notice.

            5.1.2 Terms. The Company shall bear all fees and expenses  attendant
to registering the Registrable  Securities,  including the expenses of any legal
counsel selected by the Holders to represent them in connection with the sale of
the Registrable  Securities,  but the Holders shall pay any and all underwriting
commissions,  if any.  The  Company  agrees,  at its sole  expenses,  to use its
reasonable  best efforts to qualify or register the  Registrable  Securities  in
such States as are  reasonably  requested by the Majority  Holder(s);  provided,
however,  that in no event  shall  the  Company  be  required  to  register  the
Registrable Securities in a State in which such registration would cause (i) the
Company to be  obligated  to  qualify to do  business  in such  State,  or would
subject the Company to taxation as a foreign  corporation doing business in such
jurisdiction  or (ii) the principal  stockholders of the Company to be obligated
to escrow their shares of capital stock of the Company.  The Company shall cause
any  registration  statement or  post-effective  amendment filed pursuant to the
demand rights  granted  under Section 5.1.1 to remain  effective for a period of
twelve consecutive months from the effective date of such registration statement
or post-effective amendment.

      5.2 "Piggy-Back" Registration.

            5.2.1  Grant  of  Right.   In  addition  to  the  demand   right  of
registration  provided for in Section  5.1, the Holders of the Purchase  Options
shall have the right,  for a period of seven years  commencing  on the Effective
Date, and to the extent that the Registrable  Securities are not registered with
the Registration Statement for any reason, to include the Registrable Securities
as part of any other registration of securities filed by the Company (other than
in connection with a transaction  contemplated by Rule 145(a)  promulgated under
the Act or pursuant  to Form S-8);  provided,  however,  that if, in the written
opinion of the Company's managing underwriter or underwriters,  if any, for such
offering,  the  inclusion  of the  Registrable  Securities,  when  added  to the
securities being registered by the Company or the selling  stockholder(s),  will
exceed the maximum amount of the Company's  securities which can be marketed (i)
at a price  reasonably  related to their then  current  market  value,  and (ii)
without materially and adversely affecting the entire offering, then the Company
will still be required to include the  Registrable  Securities,  but may require
the Holders to agree, in writing, to delay the sale of all or any portion of the
Registrable  Securities  for a period of 90 days from the effective  date of the
offering,  provided,  further, that if the sale of any Registrable Securities is
so delayed, then the number of securities to be sold by all stockholders in such
public  offering  during such 90 day period shall be apportioned  pro rata among
all  such  selling  stockholders,  including  all  holders  of  the  Registrable
Securities,  according to the total amount of securities of the Company owned by
said selling stockholders, including all holders of the Registrable Securities.

                                       4
<PAGE>

            5.2.2 Terms. The Company shall bear all fees and expenses  attendant
to registering the Registrable  Securities,  including the expenses of any legal
counsel selected by the Holders to represent them in connection with the sale of
the  Registrable  Securities but the Holders shall pay any and all  underwriting
commissions  related  to the  Registrable  Securities.  In the  event  of such a
proposed registration, the Company shall furnish the then Holders of outstanding
Registrable  Securities  with not less than fifteen days written notice prior to
the proposed date of filing of such registration  statement.  Such notice to the
Holders shall continue to be given for each  applicable  registration  statement
filed  (during the period in which the Purchase  Option is  exercisable)  by the
Company  until  such  time  as all  of  the  Registrable  Securities  have  been
registered and sold. The holders of the  Registrable  Securities  shall exercise
the "piggy-back" rights provided for herein by giving written notice, within ten
days  of the  receipt  of  the  Company's  notice  of its  intention  to  file a
registration statement. The Company shall cause any registration statement filed
pursuant to the above  "piggyback"  rights to remain effective for at least nine
months from the date that the Holders of the  Registrable  Securities  are first
given the opportunity to sell all of such securities. The Company agrees, at its
sole  expenses,  to use its  reasonable  best efforts to qualify or register the
Registrable  Securities  in  such  States  as are  reasonably  requested  by the
Majority  Holder(s);  provided,  however,  that in no event shall the Company be
required  to  register  the  Registrable  Securities  in a State in  which  such
registration  would  cause (i) the  Company  to be  obligated  to  qualify to do
business  in such State,  or would  subject the Company to taxation as a foreign
corporation   doing  business  in  such   jurisdiction  or  (ii)  the  principal
stockholders  of the Company to be  obligated  to escrow their shares of capital
stock of the Company.

      5.3 Damages. Should the registration or the effectiveness thereof required
by  Sections  5.1 and 5.2  hereof  be  delayed  by the  Company  or the  Company
otherwise fails to comply with such  provisions,  the Company shall, in addition
to any other equitable or other relief available to the Holder(s), be liable for
any and all  incidental,  special and  consequential  damages  sustained  by the
Holder(s),  including,  but not limited  to, the loss of any profits  that might
have been  received  by the  holder  upon the sale of shares of Common  Stock or
Warrants (and shares of Common Stock  underlying the Warrants)  underlying  this
Purchase Option.

      5.4 General Terms.

            5.4.1 Indemnification.  The Company shall indemnify the Holder(s) of
the Registrable  Securities to be sold pursuant to the Registration Statement or
any other registration statement contemplated hereunder and each person, if any,
who controls such Holders within the meaning of Section 15 of the Act or Section
20(a) of the Securities  Exchange Act of 1934, as amended  ("Exchange Act"), and
any of their respective heirs, successors,  permitted assigns and transfers, and
agents  and  representatives,  against  all  loss,  claim,  damage,  expense  or
liability   (including  all  reasonable   attorneys'  fees  and  other  expenses
reasonably incurred in investigating, preparing or defending against litigation,
commenced or  threatened,  or any claim  whatsoever  whether  arising out of any
action between the  underwriter  and the Company or between the  underwriter and
any third party or otherwise) to which any of them may become  subject under the
Act, the Exchange Act or otherwise, arising from such registration statement but
only to the same extent and with the same effect as the  provisions  pursuant to
which the Company has agreed to indemnify the underwriters  contained in Section
5 of the  Underwriting  Agreement  between  the  Company,  Maxim  and the  other
underwriters  named  therein  dated the  Effective  Date.  The  Holder(s) of the
Registrable Securities to be sold pursuant to such registration  statement,  and
their successors and assigns,  shall severally,  and not jointly,  indemnify the
Company,  its officers and directors  and each person,  if any, who controls the
Company  within the  meaning  of  Section 15 of the Act or Section  20(a) of the
Exchange Act, against all loss, claim,  damage,  expense or liability (including
all  reasonable  attorneys'  fees and  other  expenses  reasonably  incurred  in
investigating,  preparing or defending  against any claim  whatsoever)  to which
they may become  subject under the Act, the Exchange Act or  otherwise,  arising
from information  furnished by or on behalf of such Holders, or their successors
or assigns, in writing, for specific inclusion in such registration statement to
the same extent and with the same effect as the provisions  contained in Section
5 of the Underwriting  Agreement  pursuant to which the underwriters have agreed
to indemnify the Company.

                                       5
<PAGE>

            5.4.2  Exercise  of  Purchase  Options.  Nothing  contained  in this
Purchase  Option shall be construed as requiring the Holder(s) to exercise their
Purchase Options or Warrants  underlying such Purchase Options prior to or after
the initial filing of any registration statement or the effectiveness thereof.

            5.4.3  Documents  Delivered to Holders.  The Company  shall  furnish
Maxim, as  representative  of the Holders  participating in any of the foregoing
offerings, a signed counterpart, addressed to the participating Holders, of: (i)
an  opinion  of  counsel  to the  Company,  dated  the  effective  date  of such
registration  statement  (and,  if such  registration  includes an  underwritten
public offering, an opinion dated the date of the closing under any underwriting
agreement related thereto), and (ii) a "cold comfort" letter dated the effective
date of such  registration  statement  (and,  if such  registration  includes an
underwritten  public offering,  a letter dated the date of the closing under the
underwriting  agreement) signed by the independent  public  accountants who have
issued  a  report  on  the  Company's  financial  statements  included  in  such
registration  statement,  in each case covering  substantially  the same matters
with  respect  to such  registration  statement  (and  the  prospectus  included
therein) and, in the case of such  accountants'  letter,  with respect to events
subsequent to the date of such financial statements,  as are customarily covered
in  opinions  of  issuer's  counsel and in  accountants'  letters  delivered  to
underwriters in underwritten  public offerings of securities.  The Company shall
also deliver promptly to Maxim, as representative  of the Holders  participating
in any of the foregoing  offerings,  the correspondence and memoranda  described
below and copies of all  correspondence  between the Commission and the Company,
its counsel or auditors  and all  memoranda  relating  to  discussions  with the
Commission  or its staff with respect to the  registration  statement and permit
Maxim,  as  representative  of  the  Holders,  to do  such  investigation,  upon
reasonable advance notice,  with respect to information  contained in or omitted
from the registration  statement as it deems reasonably necessary to comply with
applicable  securities  laws or rules of the National  Association of Securities
Dealers, Inc ("NASD"). Such investigation shall include access to books, records
and properties and opportunities to discuss the business of the Company with its
officers and independent  auditors,  all to such  reasonable  extent and at such
reasonable times and as often as Maxim, as representative of the Holders,  shall
reasonably  request.   The  Company  shall  not  be  required  to  disclose  any
confidential  information or other records to Maxim,  as  representative  of the
Holders,  or to any other  person,  until and  unless  such  persons  shall have
entered  into  reasonable  confidentiality  agreements  (in form  and  substance
reasonably satisfactory to the Company), with the Company with respect thereto.

            5.4.4  Underwriting  Agreement.  The  Company  shall  enter  into an
underwriting agreement with the managing underwriter(s), if any, selected by any
Holders  whose  Registrable  Securities  are being  registered  pursuant to this
Section 5, which  managing  underwriter  shall be  reasonably  acceptable to the
Company.  Such agreement shall be reasonably  satisfactory in form and substance
to the Company,  each Holder and such managing  underwriters,  and shall contain
such  representations,  warranties  and  covenants by the Company and such other
terms as are  customarily  contained  in  agreements  of that  type  used by the
managing underwriter. The Holders shall be parties to any underwriting agreement
relating to an  underwritten  sale of their  Registrable  Securities and may, at
their  option,  require  that  any or all the  representations,  warranties  and
covenants of the Company to or for the benefit of such  underwriters  shall also
be made to and for the  benefit  of such  Holders.  Such  Holders  shall  not be
required to make any  representations  or warranties  to or agreements  with the
Company or the underwriters  except as they may relate to such Holders and their
intended methods of  distribution.  Such Holders,  however,  shall agree to such
covenants  and   indemnification   and  contribution   obligations  for  selling
stockholders as are customarily contained in agreements of that type used by the
managing  underwriter.  Further,  such Holders shall execute appropriate custody
agreements and otherwise  cooperate fully in the preparation of the registration
statement  and other  documents  relating to any  offering in which they include
securities  pursuant to this  Section 5. Each Holder  shall also  furnish to the
Company such information  regarding itself,  the Registrable  Securities held by
it,  and the  intended  method of  disposition  of such  securities  as shall be
reasonably required to effect the registration of the Registrable Securities.

                                       6
<PAGE>

            5.4.5  Rule 144 Sale.  Notwithstanding  anything  contained  in this
Section 5 to the  contrary,  the Company  shall have no  obligation  pursuant to
Sections 5.1 or 5.2 for the  registration of Registrable  Securities held by any
Holder  (i) where such  Holder  would  then be  entitled  to sell under Rule 144
within any three-month period (or such other period prescribed under Rule 144 as
may be provided by amendment  thereof) all of the  Registrable  Securities  then
held by such Holder, and (ii) where the number of Registrable Securities held by
such Holder is within the volume  limitations  under  paragraph  (e) of Rule 144
(calculated as if such Holder were an affiliate within the meaning of Rule 144).

            5.4.6 Supplemental Prospectus. Each Holder agrees, that upon receipt
of any  notice  from the  Company of the  happening  of any event as a result of
which  the  prospectus  included  in the  Registration  Statement  or any  other
applicable  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
light  of  the  circumstances  then  existing,   such  Holder  will  immediately
discontinue  disposition of Registrable  Securities pursuant to the Registration
Statement  covering such  Registrable  Securities until such Holder's receipt of
the copies of a supplemental  or amended  prospectus,  and, if so desired by the
Company,  such  Holder  shall  deliver  to the  Company  (at the  expense of the
Company)  or  destroy  (and  deliver  to  the  Company  a  certificate  of  such
destruction) all copies,  other than permanent file copies then in such Holder's
possession,  of the prospectus  covering such Registrable  Securities current at
the time of receipt of such notice.

6.    Adjustments.

      6.1  Adjustments to Exercise Price and Number of Securities.  The Exercise
Price and the number of Units underlying the Purchase Option shall be subject to
adjustment from time to time as hereinafter set forth:

            6.1.1 Stock  Dividends - Split-Ups.  If after the date  hereof,  and
subject to the provisions of Section 6.4 below, the number of outstanding shares
of Common  Stock is increased  by a stock  dividend  payable in shares of Common
Stock or by a split-up of shares of Common Stock or other similar  event,  then,
on the effective date thereof,  the number of shares of Common Stock  underlying
each of the Units purchasable hereunder shall be increased in proportion to such
increase in  outstanding  shares.  In such case,  the number of shares of Common
Stock,  and the  exercise  price  applicable  thereto,  underlying  the Warrants
underlying  each  of the  Units  purchasable  hereunder  shall  be  adjusted  in
accordance with the terms of the Warrants.  For example, if the Company declares
a  two-for-one  stock  dividend and at the time of such  dividend  this Purchase
Option is for the  purchase  of one Unit at $8.80 per whole Unit  (each  Warrant
underlying the Units is exercisable for $6.00 per share),  upon effectiveness of
the dividend, this Purchase Option will be adjusted to allow for the purchase of
one Unit at $8.80 per Unit, each Unit entitling the holder to receive two shares
of Common Stock and two Warrants (each Warrant exercisable for $3.00 per share).

                                       7
<PAGE>

            6.1.2 Aggregation of Shares.  If after the date hereof,  and subject
to the  provisions  of Section 6.4, the number of  outstanding  shares of Common
Stock is decreased by a consolidation, combination or reclassification of shares
of Common Stock or other similar event, then, on the effective date thereof, the
number  of  shares  of Common  Stock  underlying  each of the Units  purchasable
hereunder  shall be  decreased in  proportion  to such  decrease in  outstanding
shares.  In such case,  the number of shares of Common  Stock,  and the exercise
price applicable  thereto,  underlying the Warrants underlying each of the Units
purchasable  hereunder  shall be  adjusted in  accordance  with the terms of the
Warrants.

            6.1.3 Replacement of Securities upon Reorganization, etc. In case of
any reclassification or reorganization of the outstanding shares of Common Stock
other  than a change  covered by Section  6.1.1 or 6.1.2  hereof or that  solely
affects  the par value of such  shares of  Common  Stock,  or in the case of any
merger or consolidation of the Company with or into another  corporation  (other
than  a  consolidation  or  merger  in  which  the  Company  is  the  continuing
corporation and that does not result in any  reclassification  or reorganization
of the  outstanding  shares  of  Common  Stock),  or in the  case of any sale or
conveyance to another corporation or entity of the property of the Company as an
entirety or substantially as an entirety in connection with which the Company is
dissolved,  the Holder of this Purchase  Option shall have the right  thereafter
(until the  expiration  of the right of  exercise  of this  Purchase  Option) to
receive upon the exercise hereof,  for the same aggregate Exercise Price payable
hereunder  immediately  prior to such  event,  the kind and  amount of shares of
stock or other  securities or property  (including  cash)  receivable  upon such
reclassification, reorganization, merger or consolidation, or upon a dissolution
following  any such sale or  transfer,  by a Holder  of the  number of shares of
Common Stock of the Company obtainable upon exercise of this Purchase Option and
the  underlying   Warrants   immediately   prior  to  such  event;  and  if  any
reclassification  also results in a change in shares of Common Stock  covered by
Section 6.1.1 or 6.1.2,  then such adjustment shall be made pursuant to Sections
6.1.1,  6.1.2 and this Section 6.1.3 The  provisions of this Section 6.1.3 shall
similarly  apply to successive  reclassifications,  reorganizations,  mergers or
consolidations, sales or other transfers.

            6.1.4  Changes in Form of  Purchase  Option.  This form of  Purchase
Option need not be changed because of any change  pursuant to this Section,  and
Purchase  Options issued after such change may state the same Exercise Price and
the same number of Units as are stated in the Purchase Options  initially issued
pursuant to this Agreement.  The acceptance by any Holder of the issuance of new
Purchase Options  reflecting a required or permissive change shall not be deemed
to waive any rights to an adjustment  occurring after the  Commencement  Date or
the computation thereof.

      6.2  Substitute  Purchase  Option.  In  case of any  consolidation  of the
Company  with,  or merger of the Company  with,  or merger of the Company  into,
another  corporation (other than a consolidation or merger which does not result
in  any  reclassification  or  change  of the  outstanding  Common  Stock),  the
corporation  formed by such consolidation or merger shall execute and deliver to
the Holder a  supplemental  Purchase  Option  providing  that the holder of each
Purchase  Option  then  outstanding  or to be  outstanding  shall have the right
thereafter  (until the stated  expiration of such  Purchase  Option) to receive,
upon  exercise of such Purchase  Option,  the kind and amount of shares of stock
and other securities and property  receivable upon such consolidation or merger,
by a holder of the  number of shares of Common  Stock of the  Company  for which
such  Purchase  Option  might  have  been  exercised  immediately  prior to such
consolidation, merger, sale or transfer. Such supplemental Purchase Option shall
provide for adjustments which shall be identical to the adjustments  provided in
Section  6.  The  above  provision  of this  Section  shall  similarly  apply to
successive consolidations or mergers.

                                       8
<PAGE>

      6.3 Elimination of Fractional Interests. The Company shall not be required
to issue  certificates  representing  fractions  of shares  of  Common  Stock or
Warrants upon the exercise of the Purchase  Option,  nor shall it be required to
issue scrip or pay cash in lieu of any fractional interests, it being the intent
of the parties that all fractional interests shall be eliminated by rounding any
fraction up to the nearest  whole number of Warrants,  shares of Common Stock or
other securities, properties or rights.

7.    Reservation  and Listing. The Company shall at all times  reserve and keep
available out of its authorized  shares of Common Stock,  solely for the purpose
of issuance upon exercise of the Purchase Options or the Warrants underlying the
Purchase  Option,  such  number of shares of Common  Stock or other  securities,
properties or rights as shall be issuable upon the exercise thereof. The Company
covenants and agrees that, upon exercise of the Purchase  Options and payment of
the Exercise  Price  therefor,  all shares of Common Stock and other  securities
issuable upon such  exercise  shall be duly and validly  issued,  fully paid and
non-assessable  and not subject to  preemptive  rights of any  stockholder.  The
Company  further  covenants  and  agrees  that  upon  exercise  of the  Warrants
underlying the Purchase  Options and payment of the respective  Warrant exercise
price therefor,  all shares of Common Stock and other  securities  issuable upon
such exercise shall be duly and validly  issued,  fully paid and  non-assessable
and not subject to preemptive rights of any stockholder. As long as the Purchase
Options  shall be  outstanding,  the Company shall use its best efforts to cause
all (i) Units and shares of Common Stock  issuable upon exercise of the Purchase
Options,  (iii) Warrants issuable upon exercise of the Purchase Options and (iv)
shares of Common Stock  issuable upon  exercise of the Warrants  included in the
Units  issuable  upon exercise of the Purchase  Option to be listed  (subject to
official  notice of issuance) on all securities  exchanges (or, if applicable on
the Nasdaq National Market, SmallCap Market, OTC Bulletin Board or any successor
trading  market) on which the Units,  the  Common  Stock or the Public  Warrants
issued to the public in connection herewith may then be listed and/or quoted.

8.    Certain Notice Requirements.

      8.1 Holder's Right to Receive Notice. Nothing herein shall be construed as
conferring  upon the Holders the right to vote or consent as a  stockholder  for
the  election  of  directors  or any  other  matter,  or as  having  any  rights
whatsoever as a stockholder of the Company.  If,  however,  at any time prior to
the  expiration of the Purchase  Options and their  exercise,  any of the events
described in Section 8.2 shall occur,  then, in one or more of said events,  the
Company  shall give written  notice of such event at least fifteen days prior to
the date fixed as a record  date or the date of closing the  transfer  books for
the determination of the stockholders  entitled to such dividend,  distribution,
conversion or exchange of securities or subscription rights, or entitled to vote
on such proposed dissolution, liquidation, winding up or sale. Such notice shall
specify  such record date or the date of the closing of the transfer  books,  as
the case may be.  Notwithstanding  the  foregoing,  the Company shall deliver to
each Holder a copy of each notice given to the other stockholders of the Company
at the  same  time and in the  same  manner  that  such  notice  is given to the
stockholders.

      8.2 Events  Requiring  Notice.  The Company  shall be required to give the
notice described in this Section 8 upon one or more of the following events: (i)
if the Company  shall take a record of the holders of its shares of Common Stock
for the purpose of entitling them to receive a dividend or distribution  payable
otherwise  than in cash, or a cash dividend or  distribution  payable  otherwise
than out of retained earnings,  as indicated by the accounting treatment of such
dividend or distribution on the books of the Company,  or (ii) the Company shall
offer to all the holders of its Common  Stock any  additional  shares of capital
stock of the Company or securities  convertible  into or exchangeable for shares
of capital  stock of the Company,  or any option,  right or warrant to subscribe
therefor, or (iii) a dissolution,  liquidation or winding up of the Company or a
sale of all or  substantially  all of its  property,  assets and  business  or a
merger of the Company wherein the separate  existence of the Company shall cease
shall be proposed.

                                       9
<PAGE>

      8.3 Notice of Change in Exercise Price. The Company shall,  promptly after
an event  requiring a change in the Exercise Price pursuant to Section 6 hereof,
send notice to the Holders of such event and change ("Price Notice").  The Price
Notice shall describe the event causing the change and the method of calculating
same and  shall  be  certified  as being  true  and  accurate  by the  Company's
President and Chief Financial Officer.

      8.4  Transmittal  of Notices.  All notices,  requests,  consents and other
communications  under this  Purchase  Option  shall be in  writing  and shall be
deemed to have been duly made when hand  delivered,  mailed by  express  mail or
private courier service, or sent by facsimile transmission, with confirmation of
receipt:  (i) If to the registered Holder of the Purchase Option, to the address
and/or fax number of such Holder as shown on the books of the  Company,  or (ii)
if to the Company,  to the following  address and/or fax number or to such other
address or and fax number as the Company may designate by notice to the Holders:

                     Key Hospitality Acquisition Corporation
                     1775 Broadway, Suite 604
                     New York, New York 10019
                     Attn:  Chairman
                     Fax No.: _______________________________

9.    Miscellaneous.

      9.1 Amendments.  The Company and Maxim may from time to time supplement or
amend this Purchase  Option  without the approval of any of the Holders in order
to cure any ambiguity,  to correct or supplement any provision  contained herein
that may be defective or inconsistent  with any other provisions  herein,  or to
make any other  provisions in regard to matters or questions  arising  hereunder
that the Company and Maxim may deem  necessary or desirable and that the Company
and Maxim deem shall not adversely affect the interest of the Holders. All other
modifications  or amendments  shall require the written consent of and be signed
by the party  against  whom  enforcement  of the  modification  or  amendment is
sought.

      9.2 Headings.  The headings  contained  herein are for the sole purpose of
convenience  of reference,  and shall not in any way limit or affect the meaning
or interpretation of any of the terms or provisions of this Purchase Option.

10.   Entire Agreement. This Purchase Option (together with the other agreements
and documents  being  delivered  pursuant to or in connection with this Purchase
Option)  constitutes the entire  agreement of the parties hereto with respect to
the  subject   matter  hereof,   and   supersedes   all  prior   agreements  and
understandings  of the parties,  oral and  written,  with respect to the subject
matter hereof.

      10.1  Binding  Effect.  This  Purchase  Option  shall inure  solely to the
benefit of and shall be binding  upon,  the  Holder  and the  Company  and their
permitted assignees,  respective  successors,  legal representative and assigns,
and no other  person  shall have or be  construed to have any legal or equitable
right,  remedy or claim  under or in  respect  of or by virtue of this  Purchase
Option or any provisions herein contained.

      10.2 Governing Law; Submission to Jurisdiction. This Purchase Option shall
be governed by and  construed  and enforced in  accordance  with the laws of the
State of New York, without giving effect to conflict of laws. The Company hereby
agrees  that any  action,  proceeding  or claim  against it  arising  out of, or
relating in any way to this Purchase Option shall be brought and enforced in the
courts  of the State of New York  located  in New York  County or of the  United
States of America for the Southern District of New York, and irrevocably submits
to such jurisdiction,  which jurisdiction shall be exclusive. The Company hereby
waives  any  objection  to such  exclusive  jurisdiction  and that  such  courts
represent an  inconvenient  forum.  Any process or summons to be served upon the
Company may be served by  transmitting a copy thereof by registered or certified
mail, return receipt requested,  postage prepaid, addressed to it at the address
set forth in Section 8 hereof. Such mailing shall be deemed personal service and
shall be legal and binding upon the Company in any action,  proceeding or claim.
The  Company and the Holder  agree that the  prevailing  party(ies)  in any such
action  shall be  entitled  to  recover  from the  other  party(ies)  all of its
reasonable  attorneys'  fees and expenses  relating to such action or proceeding
and/or incurred in connection with the preparation therefor.

                                       10
<PAGE>

      10.3 Waiver,  Etc. The failure of the Company or the Holder to at any time
enforce any of the  provisions  of this  Purchase  Option shall not be deemed or
construed  to be a waiver of any such  provision,  nor to in any way  affect the
validity of this  Purchase  Option or any  provision  hereof or the right of the
Company or any Holder to  thereafter  enforce  each and every  provision of this
Purchase Option. No waiver of any breach,  non-compliance or  non-fulfillment of
any of the  provisions  of this  Purchase  Option shall be effective  unless set
forth in a written  instrument  executed by the party or parties against whom or
which  enforcement  of such waiver is sought;  and no waiver of any such breach,
non-compliance or non-fulfillment shall be construed or deemed to be a waiver of
any other or subsequent breach, non-compliance or non-fulfillment.

      10.4  Exchange  Agreement.  As a  condition  of the  Holder's  receipt and
acceptance of this Purchase Option, Holder agrees that, at any time prior to the
complete  exercise of this Purchase  Option by Holder,  if the Company and Maxim
enter into an agreement ("Exchange Agreement") pursuant to which they agree that
all outstanding  Purchase  Options will be exchanged for securities or cash or a
combination of both, then Holder shall agree to such exchange and become a party
to the Exchange Agreement.

      10.5 Underlying Warrants. At any time after exercise by the Holder of this
Purchase  Option,  the Holder may exchange his Warrants  (with a $7.50  exercise
price) for Public  Warrants  (with a $6.00  exercise  price) upon payment to the
Company of the  difference  between  the  exercise  price of his Warrant and the
exercise price of the Public Warrants.

      IN WITNESS  WHEREOF,  the Company has caused  this  Purchase  Option to be
signed by its duly authorized officer as of the ____ day of __________, 2005.

                                   KEY HOSPITALITY ACQUISITION CORPORATION

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

                                       11
<PAGE>

Form to be used to exercise Purchase Option:

Key Hospitality Acquisition Corporation
1775 Broadway, Suite 604
New York , New York

 Date:_________________, 200__

      The undersigned  hereby elects irrevocably to exercise all or a portion of
the  within  Purchase  Option  and to  purchase  ____  Units of Key  Hospitality
Acquisition  Corporation and hereby makes payment of $____________  (at the rate
of  $_________  per Unit) in payment of the  Exercise  Price  pursuant  thereto.
Please issue the Common Stock and Warrants as to which this  Purchase  Option is
exercised in accordance with the instructions given below.

                                       or

      The undersigned hereby elects irrevocably to convert its right to purchase
_________ Units purchasable under the within Purchase Option by surrender of the
unexercised  portion of the attached  Purchase  Option (with a "Value"  based of
$_______  based on a "Market  Price" of $_______).  Please issue the  securities
comprising the Units as to which this Purchase Option is exercised in accordance
with the instructions given below.

                                      -----------------------------------------
                                      Signature

                                      -----------------------------------------
                                      Signature Guaranteed

                   INSTRUCTIONS FOR REGISTRATION OF SECURITIES

Name
    -------------------------------------------------
                    (Print in Block Letters)

Address
       ----------------------------------------------

      NOTICE:  THE  SIGNATURE  TO THIS  FORM  MUST  CORRESPOND  WITH THE NAME AS
WRITTEN UPON THE FACE OF THE WITHIN PURCHASE OPTION IN EVERY PARTICULAR  WITHOUT
ALTERATION OR ENLARGEMENT OR ANY CHANGE WHATSOEVER,  AND MUST BE GUARANTEED BY A
BANK,  OTHER THAN A SAVINGS  BANK,  OR BY A TRUST  COMPANY  OR BY A FIRM  HAVING
MEMBERSHIP ON A REGISTERED NATIONAL SECURITIES EXCHANGE.

<PAGE>

Form to be used to assign Purchase Option:

                                   ASSIGNMENT

      (To be  executed  by the  registered  Holder to effect a  transfer  of the
within Purchase Option):

      FOR VALUE RECEIVED,___________________________________________ does hereby
sell, assign and transfer  unto______________________________________  the right
to  purchase  __________  Units  of  Key  Hospitality   Acquisition  Corporation
("Company")  evidenced by the within Purchase  Option and does hereby  authorize
the Company to transfer such right on the books of the Company.

Dated:___________________, 200_

                                      -----------------------------------------
                                      Signature

                                      -----------------------------------------
                                      Signature Guaranteed

      NOTICE:  THE  SIGNATURE  TO THIS  FORM  MUST  CORRESPOND  WITH THE NAME AS
WRITTEN UPON THE FACE OF THE WITHIN PURCHASE OPTION IN EVERY PARTICULAR  WITHOUT
ALTERATION OR ENLARGEMENT OR ANY CHANGE WHATSOEVER,  AND MUST BE GUARANTEED BY A
BANK,  OTHER THAN A SAVINGS  BANK,  OR BY A TRUST  COMPANY  OR BY A FIRM  HAVING
MEMBERSHIP ON A REGISTERED NATIONAL SECURITIES EXCHANGE.

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