Document:

Exhibit 4.1

                    CERTIFICATE OF DESIGNATION OF PREFERENCES
                     AND RIGHTS OF SERIES G PREFERRED STOCK
                         OF BAYWOOD INTERNATIONAL, INC.

              (PURSUANT TO NEVADA REVISED STATUTES SECTION 78.1955)

     The undersigned, being the President and Chief Executive Officer of Baywood
International, Inc., a Nevada corporation (the "Corporation"), certifies that
the Board of Directors of the Corporation, pursuant to the authority granted in
"Article IV:  Capital Stock" of the Corporation's Articles of Incorporation, as
amended, has adopted the following resolutions:

     WHEREAS, the Articles of Incorporation of the Corporation, as amended,
provides for a class of shares known as preferred stock, issuable from
time-to-time in one or more classes, par value $1.00;

     WHEREAS, the Board of Directors of the Corporation is authorized to
prescribe the classes, and the number of each class or series of stock and the
voting powers, designations, preferences, conversion features, restrictions and
relative rights of each class or series of stock and that the foregoing may be
fixed and determined by resolution of the Board of Directors, without further
amendment to the Articles of Incorporation;

     WHEREAS, the Board of Directors of the Corporation desires, pursuant to its
authority, to determine and fix the rights, preferences, privileges and
restrictions relating to the class of preferred stock and the number of shares
constituting and the designation of such initial series;

     NOW, THEREFORE, BE IT RESOLVED, that the Board of Directors establishes a
class of preferred stock and has prescribed the following voting powers,
designations, preferences, limitations, restrictions and relative rights of such
series:

A.   Designation. The series of Preferred Stock shall be designated as
     Series G Preferred Stock (the "Series G Preferred Stock").

B.   Number. The number of shares constituting the Series G Preferred Stock
     shall be 200,000.

C.   Liquidation Rights. The holders of the Series G Preferred Stock shall
     have liquidation rights as follows (the "Liquidation Rights"):

     In the event of any liquidation, dissolution or winding up of the
Corporation, holders of shares of Series G Preferred Stock are entitled to
receive, out of legally available assets, a liquidation preference of $1.00 per
share, plus an amount equal to any accrued and unpaid dividends to the payment
date, and no more, before any payment or distribution is made to the holders of
Common Stock, any previous series of the Corporation's preferred stock or any
series or class of the Corporation's stock hereafter issued that ranks junior as
to liquidation rights to the Series G Preferred Stock.  But the holders of
Series G Preferred Stock will not be entitled to receive the liquidation
preference of such shares until the liquidation preferences of any series or
class of the Corporation's stock hereafter issued that ranks senior as to
liquidation rights to the Series G Preferred Stock ("senior liquidation stock")
has been paid in full.  The holders of Series G Preferred Stock and all other
series or

<PAGE>
classes of the Corporation's stock hereafter issued that rank on a parity as to
liquidation rights with the Series G Preferred Stock are entitled to share
ratably, in accordance with the respective preferential amounts payable on such
stock, in any distribution (after payment of the liquidation preference of the
senior liquidation stock) which is not sufficient to pay in full the aggregate
of the amounts payable thereon.  After payment in full of the liquidation
preference of the shares of Series G Preferred Stock, the holders of such shares
will not be entitled to any further participation in any distribution of assets
by the Corporation.

D.   Conversion.  The holders of the Series G Preferred Stock shall not have
conversion rights.

E.   Corporate Change.  In the event of a merger, reorganization,
recapitalization or similar event of, or with respect to, the Corporation (a
"Corporate Change") (other than a Corporate Change in which the Corporation is
the surviving entity or in which all of substantially all of the consideration
received by the holders of the Corporation's capital stock upon such Corporate
Change consists of cash or assets other than securities issued by the acquiring
entity or any affiliate thereof), this Series G Preferred Stock shall be assumed
by the acquiring entity.

F.   Voting Rights.  The Holders of the Series G Preferred Stock shall have
250 votes for every share of Series G Preferred Stock held and shall be entitled
to vote on any and all matters brought to a vote of shareholders of Common
Stock.  Holders of Series G Preferred Stock shall be entitled to notice of all
shareholder meetings or written consents with respect to which they would be
entitled to vote, which notice would be provided pursuant to the Corporation's
Bylaws and applicable statutes.

G.   Protective Provisions.  So long as shares of Series G Preferred Stock are
outstanding, the Corporation shall not without first obtaining the approval (by
voting or written consent, as provided by Nevada law) of the holders of at least
a majority of the then outstanding shares of Series G Preferred Stock:

     1.  alter or change the rights, preferences or privileges of the shares of
     Series G Preferred Stock so as to affect adversely the Series G Preferred
     Stock;

     2.  create any new class or series of stock having a preference over the
     Series G Preferred Stock;

     3.  do any act or thing not authorized or contemplated by this Designation
     which would result in taxation of the holders of shares of the Series G
     Preferred Stock under Section 305 of the Internal Revenue Code of 1986, as
     amended (or any comparable provision of the Internal Revenue Code as
     hereafter from time-to-time amended).

H.   Redemption of Stock.

     1.  Redemption Price. The holders of shares of Series G Preferred Stock are
     entitled to receive, out of legally available assets, a redemption value of
     $1.00 per share, plus an amount equal to any accrued and unpaid dividends
     to the payment date. For each share of Series G Preferred Stock which is to
     be redeemed, the Corporation will be obligated on the Redemption Date (as
     defined below) to pay to the holder thereof (upon surrender by such holder
     at the Corporation's principal office or to the Corporation's transfer
     agent of the certificates representing such shares of Series G Preferred
     Stock) an amount in immediately available funds equal to the Liquidation
     Value plus all accrued dividends as of the Redemption Date.

<PAGE>
     2.  Notice of Redemption. The Corporation will mail written notice of each
     redemption of Series G Preferred Stock to each record holder of Series G
     Preferred Stock not more than sixty (60) nor less than thirty (30) days
     prior to the date on which such redemption is to be made. The date
     specified in such notice for redemption is herein referred to as the
     "Redemption Date."

     3.  Termination of Rights. On the Redemption Date all rights pertaining to
     the Series G Preferred Stock, including, but not limited to, any right of
     conversion, will cease, and such Series G Preferred Stock will not be
     deemed to be outstanding. All certificates representing the Series G
     Preferred Stock subject to redemption will represent only the right to
     receive payment in accordance with the provisions of this Paragraph H.

     4.  Redeemed or Otherwise Acquire Shares. Any shares of Series G Preferred
     Stock which are redeemed or otherwise acquired by the Corporation shall be
     canceled, may not be reissued as Series G Preferred Stock, and shall be
     returned to the status of authorized and unissued shares of Preferred Stock
     without designation as to series.

I.   Amendments.  Subject to Paragraph G above, the designation, number of,
and voting powers, designations, preferences, limitations, restrictions and
relative rights of the Series G Preferred Stock may be amended by a resolution
of the Board of Directors.

DATED this 20th day of September, 2005.

/s/ Neil Reithinger
-------------------
Neil Reithinger, President &
Chief Executive OfficerINVESTMENT MANAGEMENT TRUST AGREEMENT

         This  Agreement  is made as of , 2005 by and  between  Key  Hospitality
Acquisition  Corporation (the "Company") and Continental  Stock Transfer & Trust
Company ("Trustee").

         WHEREAS,  the  Company's  Registration  Statement on Form S-1, File No.
333-125009  ("Registration  Statement"),  for its  initial  public  offering  of
securities  ("IPO")  has been  declared  effective  as of the date hereof by the
Securities and Exchange Commission ("Effective Date"); and

         WHEREAS, Maxim Group LLC ("Maxim") is acting as the  representative  of
the underwriters in the IPO; and

         WHEREAS, as described in the Company's Registration  Statement,  and in
accordance with the Company's  Certificate of Incorporation,  $72,900,000 of the
gross proceeds of the IPO ($84,165,000 if the underwriters over-allotment option
is exercised in full) will be delivered to the Trustee to be deposited  and held
in a trust  account  for the  benefit  of the  Company  and the  holders  of the
Company's  common  stock,  par  value  $.001  per  share,  issued  in the IPO as
hereinafter  provided  and, in the event the Units are  registered  in Colorado,
pursuant to Section 11-51-302(6) of the Colorado Revised Statutes. A copy of the
Colorado  Statute is  attached  hereto and made a part  hereof (the amount to be
delivered  to the  Trustee  will be referred  to herein as the  "Property";  the
stockholders  for whose  benefit the  Trustee  shall hold the  Property  will be
referred to as the "Public  Stockholders,"  and the Public  Stockholders and the
Company will be referred to together as the "Beneficiaries"); and

         WHEREAS,  the  Company  and the  Trustee  desire  to  enter  into  this
Agreement  to set forth the terms and  conditions  pursuant to which the Trustee
shall hold the Property.

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

         1.  Agreements and Covenants of Trustee.  The Trustee hereby agrees and
covenants to:

             (a) Hold the Property in trust for the  Beneficiaries in accordance
with the terms of this Agreement, including the terms of Section 11-51-302(6) of
the  Colorado  Statute  with respect to Public  Stockholders  in Colorado,  in a
segregated  trust  account  ("Trust  Account")  established  by the Trustee at a
branch of JPMorgan Chase NY Bank selected by the Trustee;

             (b) Manage,  supervise and administer the Trust Account  subject to
the terms and conditions set forth herein;

             (c) In a timely manner,  upon the  instruction  of the Company,  to
invest and reinvest the Property in United States "government securities" within
the meaning of Section  2(a)(16) of the Investment  Company Act of 1940 having a
maturity of 180 days or less, or in any open ended investment company registered
under the Investment Company Act of 1940 that holds itself out as a money market
fund meeting the conditions of paragraphs (c)(2), (c)(3) and (c)(4) of Rule 2a-7
promulgated under the Investment Company Act of 1940;

             (d) Collect and receive, when due, all principal and income arising
from the Property,  which shall become part of the  "Property,"  as such term is
used herein;

             (e) Notify the  Company of all  communications  received by it with
respect to any Property requiring action by the Company;
<PAGE>

             (f)  Supply  any  necessary  information  or  documents  as  may be
requested by the Company in connection with the Company's preparation of the tax
returns for the Trust Account;

             (g)  Participate  in any  plan  or  proceeding  for  protecting  or
enforcing  any  right or  interest  arising  from the  Property  if, as and when
instructed by the Company to do so;

             (h) Render to the Company and to Maxim, and to such other person as
the Company may instruct,  monthly  written  statements of the activities of and
amounts in the Trust Account  reflecting all receipts and  disbursements  of the
Trust Account; and

             (i) Commence liquidation of the Trust Account only after receipt of
and only in accordance with the terms of a letter ("Termination  Letter"),  in a
form  substantially  similar  to that  attached  hereto as  either  Exhibit A or
Exhibit B, signed on behalf of the Company by its  President  or Chairman of the
Board and  Secretary,  and complete  the  liquidation  of the Trust  Account and
distribute the Property in the Trust Account only as directed in the Termination
Letter and the other documents referred to therein.  The Trustee understands and
agrees that  disbursements from the Trust Account shall be made only pursuant to
a duly executed Termination Letter, together with the other documents referenced
herein.  In all  cases,  the  Trustee  shall  provide  Maxim  with a copy of any
Termination  Letters  and/or  any other  correspondence  that it  receives  with
respect to any proposed  withdrawal  from the Trust  Account  promptly  after it
receives same.

         2.  Agreements and Covenants of the Company. The Company hereby  agrees
and covenants to:

             (a) Give all  instructions  to the  Trustee  hereunder  in writing,
signed by the Company's President or Chairman of the Board. In addition,  except
with  respect to its duties under  paragraph  1(i) above,  the Trustee  shall be
entitled  to rely on,  and shall be  protected  in  relying  on,  any  verbal or
telephonic  advice or instruction which it in good faith believes to be given by
any one of the persons authorized above to give written  instructions,  provided
that the Company shall promptly confirm such instructions in writing;

             (b) Hold the Trustee  harmless and  indemnify  the Trustee from and
against,   any  and  all  expenses,   including   reasonable  counsel  fees  and
disbursements,  or loss suffered by the Trustee in  connection  with any action,
suit or other proceeding  brought against the Trustee involving any claim, or in
connection with any claim or demand which in any way arises out of or relates to
this Agreement,  the services of the Trustee  hereunder,  or the Property or any
income earned from  investment  of the Property,  except for expenses and losses
resulting from the Trustee's gross  negligence or willful  misconduct.  Promptly
after  the  receipt  by  the  Trustee  of  notice  of  demand  or  claim  or the
commencement  of any action,  suit or proceeding,  pursuant to which the Trustee
intends  to seek  indemnification  under  this  paragraph,  it shall  notify the
Company in writing of such claim  (hereinafter  referred to as the  "Indemnified
Claim").  The  Trustee  shall have the right to conduct  and manage the  defense
against such  Indemnified  Claim,  provided,  that the Trustee  shall obtain the
consent of the Company with respect to the  selection of counsel,  which consent
shall not be unreasonably  withheld.  The Company may participate in such action
with its own counsel; and

             (c) Pay the  Trustee  an  initial  acceptance  fee of $1,000 and an
annual fee of $3,000 (it being expressly  understood that the Property shall not
be used to pay  such  fee).  The  Company  shall  pay the  Trustee  the  initial
acceptance  fee  and  first  year's  fee at the  consummation  of  the  IPO  and
thereafter on the anniversary of the Effective Date. The Trustee shall refund to
the Company the fee (on a pro rata basis) with  respect to any period  after the
liquidation  of the Trust Fund.  The Company  shall not be  responsible  for any
other fees or charges of the Trustee except as may be provided in paragraph 2(b)
hereof (it being  expressly  understood  that the Property  shall not be used to
make any payments to the Trustee under such paragraph).

                                       2
<PAGE>

         3.  Limitations of Liability. The Trustee shall have no  responsibility
or liability to:

             (a) Take any action  with  respect to the  Property,  other than as
directed in  paragraph 1 hereof and the Trustee  shall have no  liability to any
party except for  liability  arising out of its own gross  negligence or willful
misconduct;

             (b) Institute any  proceeding  for the  collection of any principal
and income arising from, or institute, appear in or defend any proceeding of any
kind with  respect  to,  any of the  Property  unless  and  until it shall  have
received instructions from the Company given as provided herein to do so and the
Company  shall have  advanced or  guaranteed  to it funds  sufficient to pay any
expenses incident thereto;

             (c) Change the investment of any Property, other than in compliance
with paragraph 1(c);

             (d) Refund any depreciation in principal of any Property;

             (e)  Assume  that the  authority  of any person  designated  by the
Company to give  instructions  hereunder shall not be continuing unless provided
otherwise  in such  designation,  or unless the Company  shall have  delivered a
written revocation of such authority to the Trustee;

             (f) The other parties hereto or to anyone else for any action taken
or omitted by it, or any action  suffered by it to be taken or omitted,  in good
faith  and in the  exercise  of its own  best  judgment,  except  for its  gross
negligence or willful misconduct. The Trustee may rely conclusively and shall be
protected  in acting upon any order,  notice,  demand,  certificate,  opinion or
advice  of  counsel  (including  counsel  chosen  by  the  Trustee),  statement,
instrument,  report or other paper or document (not only as to its due execution
and the validity and  effectiveness of its provisions,  but also as to the truth
and acceptability of any information therein contained) which is believed by the
Trustee,  in good  faith,  to be genuine  and to be signed or  presented  by the
proper  person or  persons.  The  Trustee  shall  not be bound by any  notice or
demand, or any waiver, modification, termination or rescission of this agreement
or any of the terms hereof,  unless evidenced by a written instrument  delivered
to the  Trustee  signed by the  proper  party or parties  and,  if the duties or
rights of the  Trustee  are  affected,  unless it shall  give its prior  written
consent thereto;

             (g)  Verify the  correctness  of the  information  set forth in the
Registration  Statement or to confirm or assure that any acquisition made by the
Company or any other action taken by it is as contemplated  by the  Registration
Statement; and

             (h)  Pay any  taxes  on  behalf  of the  Trust  Account  (it  being
expressly  understood  that the Property shall not be used to pay any such taxes
and that such taxes, if any, shall be paid by the Company from funds not held in
the Trust Account).

         4. Termination. This Agreement shall terminate as follows:

             (a) If the Trustee  gives  written  notice to the  Company  that it
desires to resign under this  Agreement,  the Company  shall use its  reasonable
efforts to locate a  successor  trustee,  during  which time the  Trustee  shall
continue to act in accordance with this Agreement. At such time that the Company
notifies the Trustee that a successor  trustee has been appointed by the Company
and has agreed to become  subject to the terms of this  Agreement,  the  Trustee
shall  transfer the  management of the Trust  Account to the successor  trustee,
including  but  not  limited  to the  transfer  of  copies  of the  reports  and
statements  relating  to the  Trust  Account,  whereupon  this  Agreement  shall
terminate;  provided,  however,  that,  in the event that the  Company  does not
locate a successor  trustee  within  ninety  days of receipt of the  resignation
notice from the Trustee,  the Trustee may, but shall not be obligated to, submit
an  application to have the Property  deposited with the United States  District
Court for the Southern  District of New York and upon such deposit,  the Trustee
shall be immune from any liability whatsoever;

                                       3
<PAGE>

             (b) At such time that the Trustee has completed the  liquidation of
the Trust Account in accordance  with the  provisions of paragraph  1(i) hereof,
and   distributed  the  Property  in  accordance  with  the  provisions  of  the
Termination  Letter,  this  Agreement  shall  terminate  except with  respect to
Paragraph 2(b); or

             (c) On such date after, 2006  (unless  extended to  a later date as
described in the Registration  Statement) when the Trustee deposits the Property
with the United States  District Court for the Southern  District of New York in
the event that,  prior to such date,  the Trustee has not received a Termination
Letter from the Company pursuant to paragraph 1(i).

         5.  Miscellaneous.

             (a) The Company and the Trustee each  acknowledge  that the Trustee
will  follow the  security  procedures  set forth  below  with  respect to funds
transferred from the Trust Account.  Upon receipt of written  instructions,  the
Trustee will confirm  such  instructions  with an  Authorized  Individual  at an
Authorized  Telephone  Number listed on the attached  Exhibit C. The Company and
the Trustee will each restrict  access to confidential  information  relating to
such security procedures to authorized persons. Each party must notify the other
party  immediately  if it has reason to believe  unauthorized  persons  may have
obtained  access  to  such  information,  or of any  change  in  its  authorized
personnel.  In  executing  funds  transfers,  the Trustee will rely upon account
numbers or other  identifying  numbers of a beneficiary,  beneficiary's  bank or
intermediary  bank,  rather than names.  The Trustee shall not be liable for any
loss,  liability  or expense  resulting  from any error in an account  number or
other  identifying  number,  provided it has accurately  transmitted the numbers
provided.

             (b) This Agreement  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. It may be executed in several counterparts,  each one of which
may be delivered by facsimile transmission and each of which shall constitute an
original, and together shall constitute but one instrument.

             (c) This Agreement  contains the entire agreement and understanding
of the parties hereto with respect to the subject matter hereof.  This Agreement
or any  provision  hereof may only be changed,  amended or modified by a writing
signed by each of the parties hereto;  provided,  however,  that no such change,
amendment  or  modification  may be made  without the prior  written  consent of
Maxim,  who,  along  with  the  other  underwriters  of  the  IPO,  the  parties
specifically  agree, are and shall be a third-party  beneficiary for purposes of
this Agreement. As to any claim, cross-claim or counterclaim in any way relating
to this Agreement, each party waives the right to trial by jury.

             (d) The parties hereto consent to the jurisdiction and venue of any
state or federal  court located in the State and County of New York for purposes
of resolving any disputes  hereunder.  The parties hereto  irrevocably submit to
such jurisdiction,  which  jurisdiction  shall be exclusive.  The parties hereto
hereby waive any objection to such exclusive  jurisdiction  and that such courts
represent an inconvenient forum.

                                       4
<PAGE>

             (e) Any notice,  consent or request to be given in connection  with
any of the terms or provisions of this  Agreement  shall be in writing and shall
be sent by express mail or similar  private courier  service,  by certified mail
(return receipt requested), by hand delivery or by facsimile transmission:

                    If to the Trustee, to:

                             Continental Stock Transfer
                             & Trust Company
                             17 Battery Place
                             New York, New York 10004
                             Attn:  Steven G. Nelson
                             Fax No.:  (212) 509-5150

                    If to the Company, to:

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

                    in either case with a copy to:

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

             (f) This  Agreement may not be assigned by the Trustee  without the
prior consent of the Company.

             (g) Each of the Trustee and the Company hereby  represents  that it
has the full  right and power and has been duly  authorized  to enter  into this
Agreement and to perform its respective  obligations as contemplated  hereunder.
The Trustee acknowledges and agrees that it shall not make any claims or proceed
against  the  Trust  Account,  including  by way of  set-off,  and  shall not be
entitled to any funds in the Trust Account under any circumstance.

                                       5
<PAGE>

         IN WITNESS  WHEREOF,  the parties have duly  executed  this  Investment
Management Trust Agreement as of the date first written above.

                                CONTINENTAL STOCK TRANSFER
                                  & TRUST COMPANY, as Trustee

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

                                KEY HOSPITALITY ACQUISITION CORPORATION

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

                                       6
<PAGE>

                                                                      EXHIBIT A

                             [Letterhead of Company]

                                  [Insert date]

Continental Stock Transfer
  & Trust Company
17 Battery Place
New York, New York 10004
Attn:  Steven Nelson

Re:    Trust Account No.                    Termination Letter

Gentlemen:

         Pursuant to paragraph 1(i) of the Investment Management Trust Agreement
between Key  Hospitality  Acquisition  Corporation  ("Company")  and Continental
Stock  Transfer & Trust Company  ("Trustee"),  dated as of  ______________, 2005
("Trust Agreement"),  this is to advise you that the Company has entered into an
agreement  ("Business  Agreement")  with  ("Target  Business")  to  consummate a
business  combination with Target Business ("Business  Combination") on or about
[insert date].  The Company shall notify you at least 48 hours in advance of the
actual  date of the  consummation  of the  Business  Combination  ("Consummation
Date").

         In  accordance  with  the  terms  of the  Trust  Agreement,  we  hereby
authorize you to commence  liquidation  of the Trust Account to the effect that,
on the  Consummation  Date,  all of  funds  held in the  Trust  Account  will be
immediately  available  for transfer to the account or accounts that the Company
shall direct on the Consummation Date.

         On the  Consummation  Date (i) counsel for the Company shall deliver to
you written  notification that (a) the Business Combination has been consummated
and (b) the provisions of Section  11-51-302(6)  and Rule 51-3.4 of the Colorado
Statute,  if required,  have been met, and (ii) the Company shall deliver to you
written instructions with respect to the transfer of the funds held in the Trust
Account  ("Instruction  Letter").  You are hereby  directed  and  authorized  to
transfer the funds held in the Trust  Account  immediately  upon your receipt of
the counsel's letter and the Instruction Letter, in accordance with the terms of
the  Instruction  Letter.  In the event that certain  deposits held in the Trust
Account may not be liquidated by the Consummation Date without penalty, you will
notify the  Company of the same and the Company  shall  direct you as to whether
such  funds  should  remain  in the  Trust  Account  and  distributed  after the
Consummation Date to the Company.  Upon the distribution of all the funds in the
Trust  Account  pursuant  to the  terms  hereof,  the Trust  Agreement  shall be
terminated.

                                      A-1
<PAGE>

         In the event that the Business  Combination  is not  consummated on the
Consummation  Date  described in the notice thereof and we have not notified you
on or before the original Consummation Date of a new Consummation Date, then the
funds held in the Trust  Account  shall be  reinvested  as provided in the Trust
Agreement on the business day immediately following the Consummation Date as set
forth in the notice.

                                         Very truly yours,

                                         KEY HOSPITALITY ACQUISITION CORPORATION

                                         By:
                                            ------------------------------------

                                         By:
                                            ------------------------------------

                                      A-2
<PAGE>

                                                                       EXHIBIT B

                             [Letterhead of Company]

                                  [Insert date]

Continental Stock Transfer
  & Trust Company
17 Battery Place
New York, New York 10004
Attn:  Steven Nelson

Re:    Trust Account No.                    Termination Letter

Gentlemen:

         Pursuant to paragraph 1(i) of the Investment Management Trust Agreement
between Key  Hospitality  Acquisition  Corporation  ("Company")  and Continental
Stock Transfer & Trust Company  ("Trustee"),  dated as of _______,  2005 ("Trust
Agreement"),  this is to advise you that the Board of  Directors  of the Company
has voted to dissolve and liquidate the Trust Account. Attached hereto is a copy
of the minutes of the meeting of the Board of Directors of the Company  relating
thereto,  certified  by the  Secretary of the Company as true and correct and in
full force and effect.

         In  accordance  with the terms of the Trust  Agreement,  we hereby  (a)
certify to you that the  provisions of Section  11-51-302(6)  and Rule 51-3.4 of
the  Colorado  Statute  have  been  met  and  (b)  authorize  you,  to  commence
liquidation of the Trust Account. You will notify the Company and JPMorgan Chase
NY Bank  ("Designated  Paying  Agent") in writing as to when all of the funds in
the Trust Account will be available for immediate  transfer  ("Transfer  Date").
The  Designated  Paying Agent shall  thereafter  notify you as to the account or
accounts  of the  Designated  Paying  Agent that the funds in the Trust  Account
should be  transferred  to on the Transfer  Date so that the  Designated  Paying
Agent may commence  distribution  of such funds in accordance with the Company's
instructions.  You shall have no  obligation  to oversee the  Designated  Paying
Agent's  distribution  of the funds.  Upon the payment to the Designated  Paying
Agent of all the  funds in the  Trust  Account,  the  Trust  Agreement  shall be
terminated.

                                         Very truly yours,

                                         KEY HOSPITALITY ACQUISITION CORPORATION

                                         By:
                                            ------------------------------------

                                         By:
                                            ------------------------------------

                                      B-1
<PAGE>

                                    EXHIBIT C

AUTHORIZED INDIVIDUAL(S)                             AUTHORIZED
FOR TELEPHONE CALL BACK                          TELEPHONE NUMBER(S)

----------------------------------------  --------------------------------------

Company:

Key Hospitality Acquisition Corporation
1775 Broadway, Suite 604

New York, New York 10019

Attn:                                     [Telephone]

Trustee:

Continental Stock Transfer
  & Trust Company

17 Battery Place
New York, New York 10004

Attn:  Steven G. Nelson, Chairman         [Telephone]

                                      C-1

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