Document:

As of ________, 2005

Key Hospitality Acquisition Corporation
1775 Broadway, Suite 604
New York, New York 10019

Maxim Group LLC
405 Lexington Ave.
New York, New York 10174

Re: Initial Public Offering

Gentlemen:

      This letter replaces the letter addressed to the parties named above dated
as of May 12, 2005. The undersigned stockholder, officer and director of Key
Hospitality Acquisition Corporation ("Company"), in consideration of Maxim Group
LLC ("Maxim") entering into a letter of intent, dated April 22, 2005 ("Letter of
Intent") to underwrite an initial public offering of the securities of the
Company ("IPO") and embarking on the IPO process, hereby agrees as follows
(certain capitalized terms used herein are defined in paragraph 11 hereof):

      1. If the Company solicits approval of its stockholders of a Business
Combination, the undersigned will (i) vote all Insider Shares owned by the
undersigned in accordance with the majority of the votes cast by the holders of
the IPO Shares and (ii) vote any shares of common stock acquired following the
IPO in favor of the Business Combination.

      2. In the event that the Company fails to consummate a Business
Combination within 18 months from the effective date ("Effective Date") of the
registration statement relating to the IPO (or 24 months under the circumstances
described in the prospectus relating to the IPO), the undersigned will take all
reasonable actions within the undersigned's power to cause the Company to
liquidate as soon as reasonably practicable. In such event, the undersigned
hereby waives any and all right, title, interest or claim of any kind in or to
any liquidating distributions by the Company, including, without limitation, any
distribution of the Trust Fund (as defined in the Letter of Intent) as a result
of such liquidation with respect to his Insider Shares ("Claim") and hereby
further waives any Claim the undersigned may have in the future as a result of,
or arising out of, any contracts or agreements with the Company and will not
seek recourse against the Trust Fund for any reason whatsoever. The undersigned
agrees to indemnify and hold harmless the Company, pro rata with Udi Toledano,
the Company's President and Director, based on the number of Insider Shares held
by each such individual, against any and all loss, liability, claims, damage and
expense whatsoever (including, but not limited to, any and all legal or other
expenses reasonably incurred in investigating, preparing or defending against
any litigation, whether pending or threatened, or any claim whatsoever) which
the Company may become subject as a result of any claim by any vendor that is
owed money by the Company for services rendered or products sold but only to the
extent necessary to ensure that such loss, liability, claim, damage or expense
does not reduce the amount in the Trust Fund (as defined in the Letter of
Intent).

      3.In order to minimize potential conflicts of interest which may arise
from multiple affiliations, the undersigned agrees to present to the Company for
its consideration, prior to the undersigned's exploitation of that opportunity
in any way or the presentation to any other person or entity, any suitable
opportunity to acquire an operating business or any real property or related
assets, until the earlier of the consummation by the Company of a Business
Combination, the liquidation of the Company or until such time as the
undersigned ceases to be an officer or director of the Company, but subject, in
each case, to any pre-existing fiduciary obligations the undersigned might have.

      4. The undersigned acknowledges and agrees that the Company will not
consummate any Business Combination which involves a company which is affiliated
with any of the Insiders unless the Company obtains an opinion from an
independent investment banking firm reasonably acceptable to Maxim Group LLC
that the business combination is fair to the Company's stockholders from a
financial perspective.
<PAGE>

      5. Neither the undersigned, any member of the family of the undersigned,
nor any Affiliate of the undersigned will be entitled to receive and will not
accept any compensation for services rendered to the Company prior to the
consummation of the Business Combination; provided that commencing on the
Effective Date, an affiliate of the undersigned ("Related Party"), shall be
allowed to charge the Company up to $7,500 per month, representing an allocable
share of Related Party's overhead, to compensate it for the Company's use of
Related Party's offices, utilities and personnel. Related Party and the
undersigned shall be entitled to reimbursement from the Company for their
out-of-pocket expenses incurred in connection with seeking and consummating a
Business Combination.

      6. The undersigned agrees that neither the undersigned, any member of the
family of the undersigned, or any Affiliate of the undersigned will be entitled
to receive or accept, and the undersigned, on behalf of the undersigned and the
aforementioned parties, hereby waives any rights to a finder's fee or any other
compensation in the event the undersigned, any member of the family of the
undersigned or any Affiliate of the undersigned originates a Business
Combination.

      7. The undersigned will escrow his Insider Shares for the three year
period commencing on the Effective Date subject to the terms of a Stock Escrow
Agreement which the Company will enter into with the undersigned and an escrow
agent acceptable to the Company.

      8.The undersigned agrees to be the Co-Chairman, Chief Executive Officer
and a member of the Board of Directors of the Company until the earlier of the
consummation by the Company of a Business Combination or the liquidation of the
Company. The undersigned's biographical information furnished to the Company and
Maxim and attached hereto as Exhibit A is true and accurate in all respects,
does not omit any material information with respect to the undersigned's
background and contains all of the information required to be disclosed pursuant
to Section 401 of Regulation S-K, promulgated under the Securities Act of 1933.
The undersigned's Questionnaire furnished to the Company and Maxim and annexed
as Exhibit B hereto is true and accurate in all respects. The undersigned
further represents and warrants to the Company and Maxim that:

      (a)he is not subject to or a respondent in any legal action for, any
injunction, cease-and-desist order or order or stipulation to desist or refrain
from any act or practice relating to the offering of securities in any
jurisdiction;

      (b)he has never been convicted of or pleaded guilty to any crime (i)
involving any fraud or (ii) relating to any financial transaction or handling of
funds of another person, or (iii) pertaining to any dealings in any securities
and he is not currently a defendant in any such criminal proceeding; and (c)he
has never been suspended or expelled from membership in any securities or
commodities exchange or association or had a securities or commodities license
or registration denied, suspended or revoked.

      9.The undersigned has full right and power, without violating any
agreement by which the undersigned is bound, to enter into this letter agreement
and to serve as Co-Chairman, Chief Executive Officer and a member of the Board
of Directors of the Company.

      10.The undersigned authorizes any employer, financial institution, or
consumer credit reporting agency to release to Maxim and its legal
representatives or agents (including any investigative search firm retained by
Maxim) any information they may have about the undersigned's background and
finances ("Information"). Neither Maxim nor its agents shall be violating the
undersigned's right of privacy in any manner in requesting and obtaining the
Information and the undersigned hereby releases them from liability for any
damage whatsoever in that connection.

      11. As used herein, (i) a "Business Combination" shall mean an acquisition
by merger, capital stock exchange, asset or stock acquisition, reorganization or
otherwise and as otherwise described in the registration statement relating to
the IPO, of an operating business or real property assets in the hospitality and
related industries selected by the Company; (ii) "Insiders" shall mean all
officers, directors and stockholders of the Company immediately prior to the
IPO; (iii) "Insider Shares" shall mean all of the shares of Common Stock of the
Company owned by an Insider prior to the IPO; and (iv) "IPO Shares" shall mean
the shares of Common Stock issued in the Company's IPO.
<PAGE>

      12. The undersigned hereby agrees that any action, proceeding or claim
against the undersigned 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 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 undersigned hereby waives any objection to such exclusive jurisdiction and
that such courts represent an inconvenience forum.

                                       Jeffrey Davidson
                                       -----------------------------------------
                                       Print Name of Stockholder

                                       /s/ Jeffrey Davidson
                                       -----------------------------------------
                                       Signature

                                    EXHIBIT A

Jeffrey S. Davidson has been our chief executive officer and co-chairman of our
board of directors since our inception. From January 2003 until March 2005, Mr.
Davidson served as chief executive officer and director of Orange Hospitality
Inc., a real estate investment trust, and has served as a principal and managing
director of Coqui Capital Partners since 2000. Coqui Capital Partners is a Small
Business Investment Company (SBIC) venture capital fund. As managing director of
Coqui Capital Partners, Mr. Davidson has invested in various early stage
companies, including real estate related opportunities. From 1997 through 1999,
Mr. Davidson was a private investor and was not associated with any particular
entity. From 1991 until 1997, Mr. Davidson was the chief executive officer and
president of Magic Cinemas, LLC, a chain of motion pictures theaters with
approximately $30 million of annual revenue. At Magic Cinemas, he developed over
$100 million of real estate and was responsible for over 200 employees. In May
1997, he successfully negotiated the sale of the company to Regal Cinemas, Inc.
From 1987 to 1991, Mr. Davidson founded and served as president of Mary Beth
Associates, Inc., a $10 million chain of Taco Bell restaurants, where he was
also responsible for establishing sales/marketing strategies and developing
operating infrastructure. From 1984 to 1987, Mr. Davidson was the national sales
manager of Grants Broadcasting, WGBS-TV, which was an owner and operator of
independent television stations in Philadelphia, Miami and Chicago. Mr. Davidson
received his undergraduate degree from Ohio University, where he received a BSJ
in Journalism.As of June 27, 2005

Key Hospitality Acquisition Corporation
1775 Broadway, Suite 604
New York, New York 10019

Maxim Group LLC
405 Lexington Ave.
New York, New York 10174

Re: Initial Public Offering

Gentlemen:

         This letter replaces the letter addressed to the parties named above
dated as of May 12, 2005. The undersigned stockholder, officer and director of
Key Hospitality Acquisition Corporation ("Company"), in consideration of Maxim
Group LLC ("Maxim") entering into a letter of intent ("Letter of Intent") to
underwrite an initial public offering of the securities of the Company ("IPO")
and embarking on the IPO process, hereby agrees as follows (certain capitalized
terms used herein are defined in paragraph 11 hereof):

         1. If the Company solicits approval of its stockholders of a Business
Combination, the undersigned will (i) vote all Insider Shares owned by the
undersigned in accordance with the majority of the votes cast by the holders of
the IPO Shares and (ii) vote any shares of common stock acquired following the
IPO in favor of the Business Combination.

         2. In the event that the Company fails to consummate a Business
Combination within 18 months from the effective date ("Effective Date") of the
registration statement relating to the IPO (or 24 months under the circumstances
described in the prospectus relating to the IPO), the undersigned will take all
reasonable actions within his power to cause the Company to liquidate as soon as
reasonably practicable. In such event, the undersigned hereby waives any and all
right, title, interest or claim of any kind in or to any liquidating
distributions by the Company, including, without limitation, any distribution of
the Trust Fund (as defined in the Letter of Intent) as a result of such
liquidation with respect to his Insider Shares ("Claim") and hereby waives any
Claim the undersigned may have in the future as a result of, or arising out of,
any contracts or agreements with the Company and will not seek recourse against
the Trust Fund for any reason whatsoever. The undersigned agrees to indemnify
and hold harmless the Company, pro rata with Jeffrey Davidson, the Company's
Co-Chairman, Chief Executive Officer and Director, based on the number of
Insider Shares held by each such individual, against any and all loss,
liability, claims, damage and expense whatsoever (including, but not limited to,
any and all legal or other expenses reasonably incurred in investigating,
preparing or defending against any litigation, whether pending or threatened, or
any claim whatsoever) which the Company may become subject as a result of any
claim by any vendor that is owed money by the Company for services rendered or
products sold but only to the extent necessary to ensure that such loss,
liability, claim, damage or expense does not reduce the amount in the Trust Fund
(as defined in the Letter of Intent).

         3.In order to minimize potential conflicts of interest which may arise
from multiple affiliations, the undersigned agrees to present to the Company for
its consideration, prior to presentation to any other person or entity, any
suitable opportunity to acquire an operating business, until the earlier of the
consummation by the Company of a Business Combination, the liquidation of the
Company or until such time as the undersigned ceases to be an officer or
director of the Company, subject to any pre-existing fiduciary obligations the
undersigned might have.
<PAGE>

         4. The undersigned acknowledges and agrees that the Company will not
consummate any Business Combination which involves a company which is affiliated
with any of the Insiders unless the Company obtains an opinion from an
independent investment banking firm reasonably acceptable to Maxim Group LLC
that the business combination is fair to the Company's stockholders from a
financial perspective.

         5. Neither the undersigned, any member of the family of the
undersigned, nor any Affiliate of the undersigned will be entitled to receive
and will not accept any compensation for services rendered to the Company prior
to the consummation of the Business Combination; provided that commencing on the
Effective Date, an affiliate of the undersigned ("Related Party"), shall be
allowed to charge the Company up to $7,500 per month, representing an allocable
share of Related Party's overhead, to compensate it for the Company's use of
Related Party's offices, utilities and personnel. Related Party and the
undersigned shall be entitled to reimbursement from the Company for their
out-of-pocket expenses incurred in connection with seeking and consummating a
Business Combination.

         6. Neither the undersigned, any member of the family of the
undersigned, or any Affiliate of the undersigned will be entitled to receive or
accept a finder's fee or any other compensation in the event the undersigned,
any member of the family of the undersigned or any Affiliate of the undersigned
originates a Business Combination.

         7. The undersigned will escrow his Insider Shares for the three year
period commencing on the Effective Date subject to the terms of a Stock Escrow
Agreement which the Company will enter into with the undersigned and an escrow
agent acceptable to the Company.

         8.The undersigned agrees to be the President and a member of the Board
of Directors of the Company until the earlier of the consummation by the Company
of a Business Combination or the liquidation of the Company. The undersigned's
biographical information furnished to the Company and Maxim and attached hereto
as Exhibit A is true and accurate in all respects, does not omit any material
information with respect to the undersigned's background and contains all of the
information required to be disclosed pursuant to Section 401 of Regulation S-K,
promulgated under the Securities Act of 1933. The undersigned's Questionnaire
furnished to the Company and Maxim and annexed as Exhibit B hereto is true and
accurate in all respects. The undersigned represents and warrants that:

         (a)he is not subject to or a respondent in any legal action for, any
injunction, cease-and-desist order or order or stipulation to desist or refrain
from any act or practice relating to the offering of securities in any
jurisdiction;

         (b)he has never been convicted of or pleaded guilty to any crime (i)
involving any fraud or (ii) relating to any financial transaction or handling of
funds of another person, or (iii) pertaining to any dealings in any securities
and he is not currently a defendant in any such criminal proceeding; and

         (c)he has never been suspended or expelled from membership in any
securities or commodities exchange or association or had a securities or
commodities license or registration denied, suspended or revoked.

         9.The undersigned has full right and power, without violating any
agreement by which he is bound, to enter into this letter agreement and to serve
as President and a member of the Board of Directors of the Company.

         10.The undersigned authorizes any employer, financial institution, or
consumer credit reporting agency to release to Maxim and its legal
representatives or agents (including any investigative search firm retained by
Maxim) any information they may have about the undersigned's background and
finances ("Information"). Neither Maxim nor its agents shall be violating the
undersigned's right of privacy in any manner in requesting and obtaining the
Information and the undersigned hereby releases them from liability for any
damage whatsoever in that connection.

         11. As used herein, (i) a "Business Combination" shall mean an
acquisition by merger, capital stock exchange, asset or stock acquisition,
reorganization or otherwise, of an operating business in the hospitality and
related industries selected by the Company; (ii) "Insiders" shall mean all
officers, directors and stockholders of the Company immediately prior to the
IPO; (iii) "Insider Shares" shall mean all of the shares of Common Stock of the
Company owned by an Insider prior to the IPO; and (iv) "IPO Shares" shall mean
the shares of Common Stock issued in the Company's IPO.
<PAGE>

         12. The undersigned hereby agrees that any action, proceeding or claim
against the undersigned 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 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 undersigned hereby waives any objection to such exclusive jurisdiction and
that such courts represent an inconvenience forum.

                                       Udi Toledano
                                       -----------------------------------------
                                       Print Name of Stockholder

                                       /s/ Udi Toledano
                                       -----------------------------------------
                                       Signature

                                    EXHIBIT A

      Udi Toledano has been our president and a member of our board of directors
since our inception. Since January 2000, he has managed Millennium 3 Opportunity
Fund, a venture capital fund, and since 1999, he has been the president of
Millennium 3 Capital, Inc., a private investment company. From December 1993
until December 1999, Mr. Toledano was the president of Andromeda Enterprises,
Inc., a private investment company. From 1983 to 1993, Mr. Toledano was the
president of CR Capital Inc., where he made investments and completed financings
in excess of $500 million in real estate, hotels, and in the shipping industry.
Mr. Toledano was a partner in several hotel ventures, including as a
co-developer of Hotel Nikko at Beverly Hills (now Le Meridien at Beverly Hills),
a 304-room luxury hotel which opened in December 1991. Since 1994, Mr. Toledano
has been a director of Universal Stainless & Alloy Products Inc. (NMS:USAP), a
public company with year 2004 revenue in excess of $120 million. Mr. Toledano
has served on boards of both public and private companies in various fields,
including technology, software and healthcare. Mr. Toledano holds a BSc in
Physics and Mathematics and an MBA, both from the Hebrew University of
Jerusalem.

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