Document:

INVESTMENT
        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, $72,500,000 of the gross proceeds of the
        IPO ($83,375,000 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;

      

      
        
           

        

        
           

          
            

          

        

        
           

        

         

      

      (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

          
            

          

        

        
           

        

         

      

      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

          
            

          

        

        
           

        

         

      

      (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

          
            

          

        

        
           

        

         

      

      (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

          
            

          

        

        
           

        

      

      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

          
            

          

        

        
           

          
          

        

      

      

      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.

      

      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-1

          
            

          

        

        
           

          
          

        

      

      

      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

          
            

          

        

        
           

          
          

        

      

      

      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-1STOCK
        ESCROW AGREEMENT

       

      STOCK
        ESCROW AGREEMENT, dated as of
                          ,
        2005 (“Agreement”), by and among Key Hospitality Acquisition Corporation, a
        Delaware corporation (“Company”), and the undersigned parties listed under
        Initial Stockholders on the signature page hereto (collectively, the “Initial
        Stockholders”) and Continental Stock Transfer & Trust Company, a New York
        corporation (“Escrow Agent”).

       

      WHEREAS,
        the Company has entered into an Underwriting Agreement, dated
                 ,
        2005 (“Underwriting
        Agreement”), with Maxim Group LLC (“Maxim”) acting as representative of the
        several underwriters (collectively with Maxim, the “Underwriters”), pursuant to
        which, among other matters, the Underwriters have agreed to purchase 10,000,000
        units (“Units”) of the Company.  Each Unit consists of one share of the
        Company’s common stock, par value $.001 per share (“Common Stock”), and one
        Warrant, with each Warrant granting the holder thereof the right to purchase
        one
        share of Common Stock, all as more fully described in the Company’s final
        Prospectus, dated
                   ,
        2005
        (“Prospectus”) comprising part of the Company’s Registration Statement on Form
        S-1 (File No. 333-125009) under the Securities Act of 1933,
        as amended
        (“Registration Statement”), declared effective on
                            ,
        2005 (“Effective Date”).

       

      WHEREAS,
        the Initial Stockholders have agreed as a condition of the sale of the Units
        to
        deposit their shares of Common Stock, as set forth opposite their respective
        names in Exhibit A attached hereto (collectively “Escrow Shares”), in escrow as
        hereinafter provided.

       

      WHEREAS,
        the Company and the Initial Stockholders desire that the Escrow Agent accept
        the
        Escrow Shares, in escrow, to be held and disbursed as hereinafter
        provided.

       

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

       

      1.            
        Appointment of Escrow Agent. 
        The Company and the Initial Stockholders hereby appoint the Escrow Agent
        to act
        in accordance with and subject to the terms of this Agreement, and the Escrow
        Agent hereby accepts such appointment and agrees to act in accordance with
        and
        subject to such terms.

       

      2.            
        Deposit of Escrow Shares. 
        On or before the Effective Date, each of the Initial Stockholders shall deliver
        to the Escrow Agent certificates representing his respective Escrow Shares,
        to
        be held and disbursed subject to the terms and conditions of this
        Agreement.  Each Initial Stockholder acknowledges that the certificate
        representing his Escrow Shares is legended to reflect the deposit of such
        Escrow
        Shares under this Agreement.

       

      3.            
        Disbursement of the Escrow Shares. 
        The Escrow Agent shall hold the Escrow Shares until the third anniversary
        of the
        Effective Date (“Escrow Period”), on which date it shall, upon written
        instructions from each Initial Stockholder, disburse each of the Initial
        Stockholder’s Escrow Shares to such Initial Stockholder; provided, however, that
        if the Escrow Agent is notified by the Company pursuant to Section 6.7
        hereof that the Company is being liquidated at any time during the Escrow
        Period, then the Escrow Agent shall promptly destroy the certificates
        representing the Escrow Shares; provided further, however, that if, after
        the
        Company consummates a Business Combination (as such term is defined in the
        Registration Statement), it (or the surviving entity) subsequently consummates
        a
        liquidation, merger, stock exchange or other similar transaction which results
        in all of the stockholders of such entity having the right to exchange their
        shares of Common Stock for cash, securities or other property, then the Escrow
        Agent will, upon receipt of a certificate, executed by the Chief Executive
        Officer or Chief Financial Officer of the Company, in form reasonably acceptable
        to the Escrow Agent, that such transaction is then being consummated, release
        the Escrow Shares to the Initial Stockholders upon consummation of the
        transaction so that they can similarly participate.  The Escrow Agent
        shall
        have no further duties hereunder after the disbursement or destruction of
        the
        Escrow Shares in accordance with this Section 3.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

         

      

      4.            
        Rights of Initial Stockholders in Escrow Shares.

       

      4.1          
        Voting Rights as a Stockholder. 
        Subject to the terms of the Insider Letter described in Section 4.4
        hereof
        and except as herein provided, the Initial Stockholders shall retain all
        of
        their rights as stockholders of the Company during the Escrow Period, including,
        without limitation, the right to vote such shares.

       

      4.2          
        Dividends and Other Distributions in Respect of the Escrow
        Shares. 
        During the Escrow Period, all dividends payable in cash with respect to the
        Escrow Shares shall be paid to the Initial Stockholders, but all dividends
        payable in stock or other non-cash property (“Non-Cash Dividends”) shall be
        delivered to the Escrow Agent to hold in accordance with the terms hereof. 
        As used herein, the term “Escrow Shares” shall be deemed to include the Non-Cash
        Dividends distributed thereon, if any.

       

      4.3          
        Restrictions on Transfer. 
        During the Escrow Period, no sale, transfer or other disposition may be made
        of
        any or all of the Escrow Shares except (i) by gift to a member of Initial
        Stockholder’s immediate family or to a trust, the beneficiary of which is an
        Initial Stockholder or a member of an Initial Stockholder’s immediate family,
        (ii) by virtue of the laws of descent and distribution upon death of any
        Initial
        Stockholder, or (iii) pursuant to a qualified domestic relations order;
provided,
        however,
        that
        such permissive transfers may be implemented only upon the respective
        transferee’s written agreement to be bound by the terms and conditions of this
        Agreement and of the Insider Letter signed by the Initial Stockholder
        transferring the Escrow Shares.  During the Escrow Period, the Initial
        Stockholders shall not pledge or grant a security interest in the Escrow
        Shares
        or grant a security interest in their rights under this Agreement.

       

      4.4          
        Insider Letters. 
        Each of the Initial Stockholders has executed a letter agreement with Maxim
        and
        the Company, dated as indicated on Exhibit A hereto, and which is
        filed as
        an exhibit to the Registration Statement (“Insider Letter”), respecting the
        rights and obligations of such Initial Stockholder in certain events, including
        but not limited to the liquidation of the Company.

       

      5.            
        Concerning the Escrow Agent.

       

      5.1          
        Good
        Faith Reliance. 
        The Escrow Agent shall not be liable for any action taken or omitted by it
        in
        good faith and in the exercise of its own best judgment, and 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
        Escrow Agent), 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 Escrow Agent to be genuine and
        to be
        signed or presented by the proper person or persons.  The Escrow Agent
        shall not be bound by any notice or demand, or any waiver, modification,
        termination or rescission of this Agreement unless evidenced by a writing
        delivered to the Escrow Agent signed by the proper party or parties and,
        if the
        duties or rights of the Escrow Agent are affected, unless it shall have given
        its prior written consent thereto.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

         

      

       5.2         
        Indemnification. 
        The Escrow Agent shall be indemnified and held harmless by the Company from
        and
        against any expenses, including counsel fees and disbursements, or loss suffered
        by the Escrow Agent in connection with any action, suit or other proceeding
        involving any claim which in any way, directly or indirectly, arises out
        of or
        relates to this Agreement, the services of the Escrow Agent hereunder, or
        the
        Escrow Shares held by it hereunder, other than expenses or losses arising
        from
        the gross negligence or willful misconduct of the Escrow Agent.  Promptly
        after the receipt by the Escrow Agent of notice of any demand or claim or
        the
        commencement of any action, suit or proceeding, the Escrow Agent shall notify
        the other parties hereto in writing.  In the event of the receipt
        of such
        notice, the Escrow Agent, in its sole discretion, may commence an action
        in the
        nature of interpleader in an appropriate court to determine ownership or
        disposition of the Escrow Shares or it may deposit the Escrow Shares with
        the
        clerk of any appropriate court or it may retain the Escrow Shares pending
        receipt of a final, non-appealable order of a court having jurisdiction over
        all
        of the parties hereto directing to whom and under what circumstances the
        Escrow
        Shares are to be disbursed and delivered.  The provisions of this
        Section 5.2 shall survive in the event the Escrow Agent resigns or
        is
        discharged pursuant to Sections 5.5 or 5.6 below.

       

      5.3          
        Compensation. 
        The Escrow Agent shall be entitled to the compensation from the Company set
        forth on Exhibit
        B
        attached
        hereto for all services rendered by the Escrow Agent hereunder.  The
        Escrow
        Agent shall also be entitled to reimbursement from the Company for all
        documented expenses paid or incurred by it in the administration of its duties
        hereunder including, but not limited to, all counsel, advisors’ and agents’ fees
        and disbursements and all taxes or other governmental charges.

       

      5.4          
        Further Assurances. 
        From time to time on and after the date hereof, the Company and the Initial
        Stockholders shall deliver or cause to be delivered to the Escrow Agent such
        further documents and instruments and shall do or cause to be done such further
        acts as the Escrow Agent shall reasonably request to carry out more effectively
        the provisions and purposes of this Agreement, to evidence compliance herewith
        or to assure itself that it is protected in acting hereunder.

       

      5.5          
        Resignation. 
        The Escrow Agent may resign at any time and be discharged from its duties
        as
        escrow agent hereunder by its giving the other parties hereto written notice
        and
        such resignation shall become effective as hereinafter provided. 
        Such
        resignation shall become effective only at such time that the Escrow Agent
        shall
        turn over to a successor escrow agent appointed by the Company, the Escrow
        Shares held hereunder.  If no new escrow agent is so appointed within
        the
        60 day period following the giving of such notice of resignation, the Escrow
        Agent may submit an application to have the Escrow Shares deposited with
        the
        United States District Court for the Southern District of New York and upon
        such
        deposit, the Escrow Agent shall be immune from any liability
        whatsoever.

       

      5.6          
        Discharge of Escrow Agent. 
        The Escrow Agent shall resign and be discharged from its duties as escrow
        agent
        hereunder if so requested in writing at any time by the Company and a majority
        of the Initial Stockholders, jointly, provided, however, that such resignation
        shall become effective only upon acceptance of appointment by a successor
        escrow
        agent as provided in Section 5.5.

       

      5.7          
        Liability. 
        Notwithstanding anything herein to the contrary, the Escrow Agent shall not
        be
        relieved from liability hereunder for its own gross negligence or its own
        willful misconduct.

       

      6.            
        Miscellaneous.

       

      6.1          
        Governing Law. 
        This Agreement shall for all purposes be deemed to be made under and shall
        be
        construed in accordance with the laws of the State of New York, with regard
        to
        the conflicts of laws principals thereof.

       

      6.2          
        Third
        Party Beneficiaries. 
        Each of the Initial Stockholders, the Company and the Escrow Agent hereby
        specifically acknowledges and agrees that the Underwriters are third party
        beneficiaries of this Agreement and this Agreement may not be modified or
        changed without the prior written consent of Maxim.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

         

      

      6.3          
        Entire Agreement. 
        This Agreement contains the entire agreement of the parties hereto with respect
        to the subject matter hereof and, except as expressly provided herein, may
        not
        be changed or modified except by an instrument in writing signed by the party
        to
        be charged.

       

      6.4          
        Headings. 
        The headings contained in this Agreement are for reference purposes only
        and
        shall not affect in any way the meaning or interpretation thereof.

       

      6.5          
        Binding Effect. 
        This Agreement shall be binding upon and inure to the benefit of the respective
        parties hereto and their legal representatives, successors and
        assigns.

       

      6.6          
        Notices. 
        Any notice or other communication required or which may be given hereunder
        shall
        be in writing and either be delivered personally, by facsimile transmission
        (followed by regular mail delivery) or be mailed, certified or registered
        mail,
        or by private national courier service, return receipt requested, postage
        prepaid, and shall be deemed given when so delivered personally or by facsimile
        or, if mailed, two days after the date of mailing, as follows:

       

      If
        to the
        Company, to:

       

      Key
        Hospitality Acquisition Corporation

      1775
        Broadway, Suite 604

      New
        York,
        New York 10019

      Attn:  
        Chairman

      Fax
        No:
        ______________________

       

      If
        to a
        Stockholder, to the address and fax number set forth on Exhibit A.

       

      and
        if to
        the Escrow Agent, to:

       

      Continental
        Stock Transfer & Trust Company

      17
        Battery Place

      New
        York,
        New York 10004

      Attn:  
        Chairman

      Fax
        No:
        ______________________

       

      A
        copy of
        any notice sent hereunder shall be sent to:

       

      Mintz
        Levin Cohn Ferris Glovsky and Popeo, PC

      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,
        New York 10174

      Attn:
        Clifford A. Teller

      Fax
        No:
        (212) 895-3783

      

      
        
           

        

        
           

          
            

          

        

        
           

        

         

      

      and:

       

      Ellenoff
        Grossman & Schole LLP

      370
        Lexington Ave.

      New
        York,
        New York 10017

      Attn:      
        Douglas S. Ellenoff, Esq.

      Fax
        No:
        (212) 370-7889

       

      The
        parties may change the persons and addresses to which the notices or other
        communications are to be sent by giving written notice to any such change
        in the
        manner provided herein for giving notice.

       

      6.7          Liquidation
        of Company.
        The
        Company shall give the Escrow Agent written notification of the liquidation
        and
        dissolution of the Company in the event that the Company fails to consummate
        a
        Business combination within the time period(s) specified in the
        Prospectus.

      

      6.8
                  Counterparts.
        This
        Agreement 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.

      

      

      [signature
        page follows]

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

       

      WITNESS
        the execution of this Agreement as of the date first above written.

       

       

      
        
          	 	
                  KEY
                    HOSPITALITY ACQUISITION CORPORATION

                
	
                   

                	
                   

                
	
                   

                	
                   

                
	 	
                  By:
                                                                                                 
                    

                
	 	
                  [Name],
                    [Title]

                
	
                   

                	
                   

                
	
                   

                	
                   

                
	 	
                  INITIAL
                    STOCKHOLDERS:

                
	
                   

                	
                   

                
	
                   

                	
                                                                                                        
                    

                
	 	
                  Jeffrey
                    and Mary Beth Davidson

                
	
                   

                	
                   

                
	
                   

                	
                   

                
	
                   

                	
                  
                                                                                                          
                      

                  

                
	 	
                  Udi
                    Toledano

                
	 	 
	 	 
	 	
                                                                                                        
                    

                
	 	
                  Janet
                    Toledano

                
	
                   

                	
                   

                   

                
	
                   

                	
                  Trust
                    F/B/O Alexander & Anna Toledano DTD 9/2/93

                
	 	 
	 	 
	 	
                                                                                                        
                    

                
	 	
                  Name:

                  Title:

                
	
                   

                	
                   

                
	 	 
	
                   

                	
                  
                                                                                                          
                      

                  

                
	 	
                  Rick
                    Davidson

                
	
                   

                	 
	
                   

                	 
	 	
                                                                                                        
                    

                
	
                   

                	 
	 	 
	
                   

                	
                                                                                                        
                    

                
	 	
                  Glyn
                    F. Aeppel

                

           

          
            
               

            

            
               

              
                

              

            

            
               

            

             

          

          
            	
                     

                  	
                     

                    
                                                                                                            

                    

                  
	 	
                    W.
                      Thomas Parrington

                  
	 	 
	 	 
	
                     

                  	
                    
                                                                                                            
                        

                    

                  
	 	
                    Stephen
                      B. Siegel

                  
	
                     

                  	
                     

                  
	 	 
	 	
                                                                                                          
                      

                  
	
                     

                  	
                    Burton
                      Koffman

                  
	 	 
	 	 
	
                     

                  	
                    
                                                                                                            
                        

                    

                  
	 	
                    Robert
                      and Laurie Chefitz

                  
	 	 
	 	 
	 	
                                                                                                          
                      

                  
	
                     

                  	
                    Michael
                      Signorelli

                  
	
                     

                  	
                     

                  
	
                     

                  	
                     

                  
	 	
                    CONTINENTAL
                      STOCK TRANSFER

                  
	 	
                     
                      & TRUST COMPANY

                  
	
                     

                  	
                     

                  
	
                     

                  	
                     

                  
	 	
                    By:                                                                                
                      

                  
	 	
                    Name:

                  
	 	
                    Title:

                  

          

        

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      EXHIBIT
        A

       

      
        	
                Name
                  and Address of

                Initial
                  Stockholder

              	 	
                Number

                of
                  Shares

              	 	
                Stock

                Certificate
                  Number

              	 	
                Date
                  of

                Insider
                  Letter

              	 
	
                 

              	 	
                 

              	 	
                 

              	 	
                 

              	 
	
                Jeffrey
                  and Mary Beth Davidson

                [add
                  in address and fax]

              	 	 	
                943,750

              	 	 	 	 	 	 	 
	
                Udi
                  Toledano

                [add
                  in address and fax]

              	 	 	
                362,500

              	 	 	 	 	 	 	 
	
                Janet
                  Toledano

                [add
                  in address and fax]

              	 	 	
                250,000

              	 	 	 	 	 	 	 
	
                Trust
                  F/B/O Alexander & Anna Toledano DTD 9/2/93

                [add
                  in address and fax]

              	 	 	
                133,333

              	 	 	 	 	 	 	 
	
                Rick
                  Davidson

                [add
                  in address and fax]

              	 	 	
                52,083

              	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	
                Glyn
                  F. Aeppel

                [add
                  in address and fax]

              	 	 	
                150,000

              	 	 	 	 	 	 	 
	
                W.
                  Thomas Parrington

                [add
                  in address and fax]

              	 	 	
                208,333

              	 	 	 	 	 	 	 
	
                Stephen
                  B. Siegel

                [add
                  in address and fax]

              	 	 	
                125,000

              	 	 	 	 	 	 	 
	
                Robert
                  and Laurie Chefitz

                [add
                  in address and fax]

              	 	 	
                125,000

              	 	 	 	 	 	 	 
	
                Burton
                  Koffman

                [add
                  in address and fax]

              	 	 	
                66,666

              	 	 	 	 	 	 	 
	
                Michael
                  Signorelli

                [add
                  in address and fax]

              	 	 	
                83,333

              	 	 	 	 	 	 	 

      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      EXHIBIT
        B

      

      Escrow
        Agent Fees

      

      

      [to
        be
        provided]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00089-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00089-of-00352.parquet"}]]