Document:

Key
      Hospitality Acquisition Corporation

     

    
      	 	
              [Date]

            

    

    David
      Schwarz

     

    
      	
            	Re:	
              Employment
                Agreement

            

    

     

    Dear
      David:

     

    This
      letter is to confirm our understanding with respect to (i) your future
      employment by Key Acquisition Corp. or any present or future parent, subsidiary
      or affiliate thereof (collectively, the “Company”), (ii) your agreement not to
      compete with the Company, (iii) your agreement to protect and preserve
      information and property which is confidential and proprietary to the Company
      and (iv) your agreement with respect to the ownership of inventions, ideas,
      copyrights and patents which may be used in the business of the Company (the
      terms and conditions agreed to in this letter are hereinafter referred to as
      the
“Agreement”). In consideration of the mutual promises and covenants contained in
      this Agreement, and for other good and valuable consideration, the receipt
      and
      sufficiency of which are hereby mutually acknowledged, we have agreed as
      follows:

     

    
      	
            	1.	
              Employment.

            

    

     

    (a) Subject
      to the terms and conditions of this Agreement, the Company will employ you,
      and
      you will be employed by the Company, as President and Chief Operating Officer
      reporting only to the Board of Directors (the “Board”). You will have the
      responsibilities, duty and authority commensurate with the position of President
      and COO. You will also perform such other services of an executive nature for
      the Company as may be assigned to you from time to time by the Board and agreed
      to by you. The principal locations at which you will perform such services
      will
      be at the Company’s facilities located within Florida.

     

    (b) Devotion
      to Duties.
      For so
      long as you are employed hereunder, you will devote substantially all of your
      business time and energies to the business and affairs of the Company, provided
      that nothing contained in this Section 1(b) will be deemed to prevent or limit
      your right to manage your personal investments on your own personal time,
      including, without limitation, the right to make passive investments in the
      securities of (i) any entity which you do not control, directly or indirectly,
      and which does not compete with the Company, or (ii) any publicly held entity
      so
      long as your aggregate direct and indirect interest does not exceed five percent
      of the issued and outstanding securities of any class of securities of such
      publicly held entity, and provided further, that nothing contained in this
      Agreement will be deemed to prohibit you from (A) serving on a reasonable
      number of corporate, civic or charitable boards or committees that do not
      compete with the Company, provided that serving on those boards or committees
      does not prevent or interfere in any way with your ability to be President
      and
      COO of the Company and that you may not serve on any public company boards
      or
      committees without prior written consent from the Board, (B) delivering
      lectures, fulfilling speaking engagements or teaching at educational
      institutions, and (C) managing personal investments, so long as such
      activities do not significantly interfere with the performance of you
      responsibilities as an employee of the Company in accordance with this
      Agreement.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
            	2.	
              Term
                of Employment.

            

    

     

    (a) Term;
      Termination.
      Subject
      to the terms hereof, your employment hereunder will commence on [DATE OF
      CLOSING] [_____________________]
      (the
“Commencement Date”) and will continue until three years from the Commencement
      Date (the “Initial Term”), provided that on the third anniversary
      of the Commencement Date, the term of your employment hereunder will be
      automatically extended for an additional period of one year (the “Subsequent
      Term”) unless either you or the Company has given written notice to the other
      that such automatic extension will not occur (a “Non-Renewal Notice”), which
      notice was given not less than 60 days prior to the relevant anniversary of
      the
      Commencement Date. The Initial Term and the Subsequent Term are referred to
      herein as the “Term.”

     

    Notwithstanding
      the foregoing, your employment hereunder will terminate upon the first to occur
      of the following:

     

    (i) Immediately
      upon your death;

     

    (ii) By
      the
      Company:

     

    (A) By
      written notice to you effective the date of such notice, following your failure,
      due to illness, accident or any other physical or mental incapacity, to perform
      the essential functions of your position for an aggregate of 120 business days
      within any period of 180 consecutive days during the term hereof as determined
      by a physician selected by you (“Disability”), provided that if applicable law
      provides any provision regarding disability that is more favorable to you than
      that set forth herein, such more favorable provision will govern;

     

    (B) By
      written notice to you effective after the termination of any applicable cure
      period stated herein commencing on the date of such notice, for Cause (as
      defined below); or

     

    (C) By
      written notice to you effective 30 days after the date of such notice and
      subject to Section 4 hereof, without Cause; or

     

    (iii) By
      you:

     

    (A) At
      any
      time by written notice to the Company effective 30 days after the date of such
      notice; or

     

    
      
        
        

      

      
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    (B) By
      written notice to the Company for Good Reason (as defined below) effective
      the
      date of such notice.

     

    (b) Definition
      of “Cause”.
      For
      purposes of this Agreement, “Cause” means (i) your conviction of a felony,
      either in connection with the performance of your obligations to the Company
      or
      which otherwise materially and adversely affects your ability to perform such
      obligations, (ii) your willful disloyalty or deliberate dishonesty, (iii) the
      commission by you of an act of fraud or embezzlement against the Company, or
      (iv) a material breach by you of any material provision of this Agreement which
      breach is not cured within 30 days after delivery to you by the Company of
      written notice of such breach, provided that if such breach is not capable
      of
      being cured within such 30 day period, you will have a reasonable additional
      period to cure such breach but only if you promptly commence and continue good
      faith efforts to cure such breach. Any determination under this Section 2(b)
      will be made by two thirds of the Board voting on such determination. With
      respect to any such determination, the Board will act fairly and in utmost
      good
      faith and will give you and your counsel an opportunity to appear and be heard
      at a meeting of the Board and present evidence on your behalf. No act or
      omission on your part will be considered “willful” unless done, or admitted to
      be done, by you in bad faith or without your reasonable belief that such act
      or
      omission was in the best interest of the Company.

     

    (c) Definition
      of “Good Reason”.
      For
      purposes of this Agreement, a “Good Reason” means any of the
      following:

     

    (i) A
      change
      in the principal location outside of the State of Florida at which you provide
      services to the Company, without your prior written consent;

     

    (ii) The
      assignment to you of duties not commensurate or consistent with your position
      as
      President and COO of the Company without your prior written consent or any
      other
      action by the Company which results in a diminution in such position, authority,
      duties or responsibilities, excluding for this purpose an isolated,
      insubstantial and inadvertent action not taken in bad faith and which is
      remedied by the Company promptly after receipt of notice thereof given by
      you;

     

    (iii) A
      reduction in your compensation or other benefits except such a reduction in
      connection with a general reduction in compensation or other benefits of all
      senior executives of the Company;

     

    (iv) A
      material breach of this Agreement by the Company that has not been cured within
      30 days after written notice thereof by you to the Company;
      

     

    (v) A
      Change
      of Control (as defined in Section 2(d) below) of the Company; or

     

    (vi) Failure
      by the Company to obtain the assumption of this Agreement by any successor
      to
      the Company.

     

    
      
        
        

      

      
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    (d) Definition
      of “Change of Control”
      For
      purposes of this Agreement, a Change of Control means that any of the following
      events has occurred:

     

    (i) Any
      person (as such term is used in Section 13(d) of the Securities Exchange Act
      of
      1934 (the “Exchange Act”)), other than the Company, any employee benefit plan of
      the Company or any entity organized, appointed or established by the Company
      for
      or pursuant to the terms of any such plan, together with all “affiliates” and
“associates” (as such terms are defined in Rule 12b-2 under the Exchange Act)
      becomes the beneficial owner or owners (as defined in Rule 13d-3 and 13d-5
      promulgated under the Exchange Act), directly or indirectly (the “Control
      Group”), of more than 50% of the outstanding equity securities of the Company,
      or otherwise becomes entitled, directly or indirectly, to vote more than 50% of
      the voting power entitled to be cast at elections for directors (“Voting Power”)
      of the Company, provided that a Change of Control will not have occurred if
      such
      Control Group acquired securities or Voting Power solely by purchasing
      securities from the Company, including, without limitation, acquisition of
      securities by one or more third party investors such as venture capital
      investor(s);

     

    (ii) A
      consolidation or merger (in one transaction or a series of related transactions)
      of the Company pursuant to which the holders of the Company’s equity securities
      immediately prior to such transaction or series of related transactions would
      not be the holders, directly or indirectly, immediately after such transaction
      or series of related transactions of more than 50% of the Voting Power of the
      entity surviving such transaction or series of related
      transactions;

     

    (iii) The
      sale,
      lease, exchange or other transfer (in one transaction or a series of related
      transactions) of all or substantially all of the assets of the Company;
      or

     

    (iv) The
      liquidation or dissolution of the Company or the Company ceasing to do
      business.

     

    
      	
            	3.	
              Compensation.

            

    

     

    (a) Base
      Salary.
      While
      you are employed hereunder, the Company will pay you a base salary at the annual
      rate of $500,000 (the “Base Salary”). The Base Salary will be payable in
      substantially equal installments in accordance with the Company’s payroll
      practices as in effect from time to time. The Company will deduct from each
      such
      installment any amounts required to be deducted or withheld under applicable
      law
      or under any employee benefit plan in which you participate. The Base Salary
      shall also be reviewed, at least annually, for merit increases and may, by
      action and in the discretion of the Board, be increased at any time or from
      time
      to time. The Base Salary, if increased, shall not thereafter be decreased for
      any reason, except for an overall reduction in Company executive salaries due
      to
      prevailing economic or industry conditions.

     

    
      
        
        

      

      
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    (b) Bonus.

     

    (i) Annual
      Bonus.
      You
      will be entitled to a performance based annual bonus (the “Annual Bonus”) up to
      100% of your Base Salary, at the discretion of the Board.

     

    (c) Equity
      Compensation.

     

    (i) Options.
      You
      will be entitled to participate in and may receive additional options under
      any
      option plan adopted by the Company. The granting of such options will be at
      the
      discretion of the Board.

     

    (d) Vacation.
      You
      will be entitled to paid vacation in each calendar year and paid holidays and
      personal days in accordance with the most favorable plans, policies, programs
      and practices of the Company and its subsidiaries as in effect at any time
      hereafter with respect to other key executives of the Company and its
      subsidiaries; provided,
      however,
      that in
      no event shall you be entitled to fewer than four weeks paid vacation per year.
      Accrued unused vacation may be carried over for one year. 

     

    (e) Fringe
      Benefits.
      You
      will be entitled to participate in the same manner as other senior executives
      of
      the Company in any employee benefit plans which the Company provides or may
      establish for the benefit of its senior executives generally (including, without
      limitation, group life, disability, medical, dental and other insurance, tax
      benefit and planning services, 401(k), retirement, pension, profit-sharing
      and
      similar plans) (collectively, the “Fringe Benefits”), provided that the Fringe
      Benefits will not include any stock option or similar plans relating to the
      grant of equity securities of the Company.

     

    (f) Automobile;
      Computer; Mobile Phone.
      The
      Company will pay you an automobile allowance for two automobiles in the amount
      of $1,500 per month per car. One car is to be stored in Clearwater and the
      other
      in the Florida Keys. The amount of such allowance will be reviewed and adjusted
      not less frequently than annually. The Company will also provide you with a
      mobile telephone and laptop computer at the expense of the Company. The Company
      will pay for all charges related to use of your mobile telephone, however,
      you
      agree to reimburse the Company for all personal use of your mobile phone.

     

    (g) Reimbursement
      of Expenses.
      The
      Company will reimburse you for all ordinary and reasonable out-of-pocket
      business expenses that are incurred by you in furtherance of the Company’s
      business in accordance with the Company’s policies with respect thereto as in
      effect from time to time.

     

    (h) Indemnification.
      The
      Company will indemnify you to the extent permitted by its charter and by-laws
      and by applicable law against all costs, charges and expenses, including,
      without limitation, attorneys’ fees, incurred or sustained by you in connection
      with any action, suit or proceeding to which you may be made a party by reason
      of being an officer, director or employee of the Company. In connection with
      the
      foregoing, you will be covered under any liability insurance policy that
      protects other officers of the Company.

     

    
      
        
        

      

      
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    (i) Working
      Facilities.
      During
      the term of your employment hereunder, the Company shall furnish you with an
      office, a secretary and such other facilities and services suitable to your
      position and adequate for the performance of your duties hereunder.

     

    (j) Company
      Aircraft.
      During
      the term of your employment, you may use the Company’s aircraft for business
      reasons in accordance with the Company’s policies applying to the key executives
      of the Company. You agree to reimburse the Company for any personal use of
      the
      Company’s aircraft.

     

    (k) Location
      and Relocation.
      The
      Company agrees that you, in the ordinary course of performing your duties,
      will
      work in the Company’s various offices located throughout the state of Florida;
      provided, however, that if, at any time during the Term, you and the Company
      agree that you will perform your duties at a different location causing you
      to
      commute more than 60 miles from your then-current residence, the Company will:
      (a) reimburse you for all costs incurred by you in connection with the
      relocation of you and your family, but not the purchase price of a new
      residence, and (b) provide you, at the Company’s cost, temporary accommodations
      at your new work location that are reasonably acceptable to you, until the
      earlier of (i) the date on which you are able to occupy permanent housing of
      your choice within 60 miles of your new work location, and (ii) the date that
      is
      twelve (12) months after the first date on which the temporary accommodation
      is
      made available to you. Additionally, the Company agrees to provide you with
      accommodations reasonably acceptable to you in Clearwater when you travel there
      for business reasons.

    

    
      	
            	4.	
              Severance
                Compensation.

            

    

     

    (a) Definition
      of Accrued Obligations.
      For
      purposes of this Agreement, “Accrued Obligations” means (i) the portion of your
      Base Salary as has accrued prior to any termination of your employment with
      the
      Company and has not yet been paid, (ii) an amount equal to the value of your
      accrued unused vacation days, and (iii) the amount of any expenses properly
      incurred by you on behalf of the Company prior to any such termination and
      not
      yet reimbursed.

     

    (b) Death
      or Disability.
      If your
      employment hereunder is terminated as a result of your death or
      Disability:

     

    (i) The
      Company will pay the Accrued Obligations to you (or your estate) promptly
      following such termination.

     

    (ii) The
      Company will continue to pay you (or your estate) an amount equal to the Base
      Salary at the rate in effect at the date of such termination in accordance
      with
      Section 3(a) of this Agreement for the period commencing on the date of such
      termination and ending on the earlier of six months from such termination or
      the
      date of the end of the then current Term.

     

    
      
        
        

      

      
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    (iii) The
      Company will continue to provide you or your covered beneficiaries with the
      Fringe Benefits for so long as it is obligated to continue payments equal to
      the
      Base Salary pursuant to Section 4(b)(ii) above, subject to applicable law and
      the terms of the respective policies.

     

    (c) Termination
      for Cause or in the Absence of a Good Reason.
      If your
      employment hereunder is terminated either by the Company for Cause or by you
      in
      the absence of a Good Reason (either pursuant to Section 2(a)(iii)(A) above
      or
      by delivery by you of a Non-Renewal Notice), the Company will pay the Accrued
      Obligations to you promptly following such termination.

     

    (d) Termination
      Without Cause or for a Good Reason.
      If your
      employment hereunder is terminated either by the Company without Cause (either
      pursuant to Section 2(a)(ii)(c) above or by delivery of a Non-Renewal Notice
      by
      the Company) or by you for a Good Reason:

     

    (i) The
      Company will pay the Accrued Obligations to you promptly following such
      termination.

     

    (ii) The
      Company will continue to pay you an amount equal to the Base Salary at the
      rate
      in effect at such termination in accordance with Section 3(a) of this Agreement
      for the period commencing on the date of such termination and ending the later
      of (A) the date of the end of the then current Term, or (B) 18 months, whichever
      is greater. 

     

    (iii) The
      Company will continue to provide you with the Fringe Benefits for a period
      of
      twelve months, subject to applicable law and the terms of the respective
      policies.

     

    (iv) The
      Company will allow you to keep and transfer ownership for you of
      your laptop
      computer, cell phone, etc., provided that you will provide the Company with
      an
      opportunity to delete any Company information from any such equipment and you
      will be responsible for all costs in connection with such equipment after the
      date of termination of your employment.

     

    (e) No
      Duty to Mitigate.
      Notwithstanding any other provision of this Agreement, (i) you will have no
      obligation to mitigate your damages for any breach of this Agreement by the
      Company or for any termination of this Agreement, whether by seeking employment
      or otherwise and (ii) the amount of any benefit due to you after the date of
      such termination pursuant to this Agreement will not be reduced or offset by
      any
      payment or benefit that you may receive from any other source.

     

    
      	
            	5.	
              Prohibited
                Competition.

            

    

     

    (a) Certain
      Acknowledgements and Agreements.

     

    (i) We
      have
      discussed, and you recognize and acknowledge the competitive and proprietary
      aspects of the business of the Company.

     

    
      
        
        

      

      
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    (ii) You
      acknowledge that a business will be deemed competitive with the Company if
      it
      performs any of the services or manufactures or sells any of the products
      provided or offered by the Company or if it performs any other services and/or
      engages in the production, manufacture, distribution or sale of any product
      similar to services or products, which services or products were performed,
      produced, manufactured, distributed or sold by the Company during the period
      while you are employed hereunder.

    

    (iii) You
      further acknowledge that, while you are employed hereunder, the Company will
      furnish, disclose or make available to you Confidential Information (as defined
      below) related to the Company’s business and that the Company may provide you
      with unique and specialized training. You also acknowledge that such
      Confidential Information and such training have been developed and will be
      developed by the Company through the expenditure by the Company of substantial
      time, effort and money and that all such Confidential Information and training
      could be used by you to compete with the Company.

     

    (iv) For
      purposes of this Agreement, “Confidential Information” means confidential and
      proprietary information of the Company, whether in written, oral, electronic
      or
      other form, including but not limited to, information and facts concerning
      business plans, customers, future customers, suppliers, licensors, licensees,
      partners, investors, affiliates or others, training methods and materials,
      financial information, sales prospects, client lists, inventions, or any other
      scientific, technical or trade secrets of the Company or of any third party
      provided to you or the Company under a condition of confidentiality, provided
      that Confidential Information will not include information that is (1) in the
      public domain other than through any fault or act by you, (2) known to you
      prior
      to its disclosure to you in the course of your employment hereunder, or (3)
      lawfully disclosed to you by a source other than the Company which source has
      a
      legal right to disclose such information. 

     

    (b) Non-Competition;
      Non-Solicitation.
      During
      the period while you are employed hereunder and for a period of two years
      following the termination of your employment hereunder for any reason or for
      no
      reason you will not, without the prior written consent of the
      Company:

     

    (i) For
      yourself or on behalf of any other person or entity, directly or indirectly,
      either as principal, partner, stockholder, officer, director, member, employee,
      consultant, agent, representative or in any other capacity, own, manage, operate
      or control, or be concerned, connected or employed by, or otherwise associate
      in
      any manner with, engage in, or have a financial interest in, any business which
      is directly or indirectly competitive with the business of the Company (each,
      a
“Restricted Activity”) in each state that the Company has properties at the time
      of termination (the “Restricted Territory”), except that (A) nothing contained
      herein will preclude you from purchasing or owning securities of any such
      business if such securities are publicly traded, and provided that your holdings
      do not exceed four percent of the issued and outstanding securities of any
      class
      of securities of such business, and (B) nothing contained herein will prevent
      you from engaging in a Restricted Activity for or with respect to any
      subsidiary, division or affiliate or unit (each, a “Unit”) of an entity if that
      Unit is not engaged in any business which is competitive with the business
      of
      the Company, irrespective of whether some other Unit of such entity engages
      in
      such competition (as long as you do not engage in a Restricted Activity for
      such
      other Unit); or

    

    
      
        
        

      

      
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    (ii) Either
      individually or on behalf of or through any third party, directly or indirectly,
      solicit, divert or appropriate or attempt to solicit, divert or appropriate,
      for
      the purpose of competing with the Company, any customers or patrons of the
      Company, or any prospective customers or patrons with respect to which the
      Company has developed or made a sales presentation (or similar offering of
      services); or

    

    (iii) Either
      individually or on behalf of or through any third party, solicit, entice or
      persuade or attempt to solicit, entice or persuade any employee of or consultant
      to the Company to leave the service of the Company; provided, however, that
      the
      foregoing provisions will not prevent you from hiring any such person who
      contacts you on his or her own initiative without any direct or indirect
      solicitation by or encouragement from or on behalf of you or your
      representatives.

     

    (c) Survival
      of Acknowledgements and Agreements.
      Your
      acknowledgements and agreements set forth in this Section 5 will survive the
      termination of your employment hereunder for any reason or for no reason for
      the
      periods set forth in this Agreement.

     

    6.    Protected
      Information.
      You
      will at all times, both during the period while you are employed hereunder
      and
      after the termination of your employment hereunder for a period of four
      years thereafter,
      for any reason or for no reason, maintain in confidence and will not, without
      the prior written consent of the Company, use, except in the course of
      performance of your duties for the Company or by court order, disclose or give
      to others any Confidential Information. Upon the termination of your employment
      hereunder for any reason or for no reason, you will return to the Company all
      tangible Confidential Information and copies thereof (regardless how such
      Confidential Information or copies are maintained). 

     

    
      	
            	7.	
              Ownership
                of Ideas, Copyrights and Patents.

            

    

     

    (a) Property
      of the Company.
      All
      ideas, discoveries, creations, manuscripts and properties, innovations,
      improvements, know-how, inventions, designs, developments, apparatus,
      techniques, methods, and formulae (collectively the “Inventions”) which may be
      used in the business of the Company, whether patentable, copyrightable or not,
      which you may conceive, reduce to practice or develop while you are employed
      hereunder, alone or in conjunction with another or others, and whether at the
      request or upon the suggestion of the Company or otherwise, will be the sole
      and
      exclusive property of the Company, and that you will not publish any of the
      Inventions without the prior written consent of the Company. You hereby assign
      to the Company all of your right, title and interest in and to all of the
      foregoing. 

    

    
      
        
        

      

      
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    (b) Cooperation.
      At any
      time during your employment hereunder or after the termination of your
      employment hereunder for any reason or for no reason, you will fully cooperate
      with the Company and its attorneys and agents in the preparation and filing
      of
      all papers and other documents as may be required to perfect the Company’s
      rights in and to any of such Inventions, including, but not limited to, joining
      in any proceeding to obtain letters patent, copyrights, trademarks or other
      legal rights with respect to any such Inventions in the United States and in
      any
      and all other countries, provided that the Company will bear the expense of
      such
      proceedings, and that any patent or other legal right so issued to you
      personally will be assigned by you to the Company or its designee without charge
      by you. The Company will reimburse you for reasonable expenses incurred by
      you
      in connection with the performance of your obligations under this Section
      7.

    

    8.     Records.
      Upon
      termination of your employment hereunder for any reason or for no reason, you
      will deliver to the Company any property of the Company which may be in your
      possession, including products, materials, memoranda, notes, records, reports
      or
      other documents or photocopies of the same.

     

    9.     Insurance.
      The
      Company, in its sole discretion, may apply for and purchase key person life
      insurance on your life in an amount determined by the Company with the Company
      as beneficiary. You will submit to any medical or other examinations and to
      execute and deliver any applications or other instruments in writing that are
      reasonably necessary to effectuate such insurance.

     

    10.   General.

     

    (a) Notices.
      All
      notices, requests, consents and other communications hereunder will be in
      writing, will be addressed to the receiving party’s address set forth above or
      to such other address as a party may designate by notice hereunder, and will
      be
      either (i) delivered by hand, (ii) sent by overnight courier, or (iii) sent
      by
      registered or certified mail, return receipt requested, postage prepaid. All
      notices, requests, consents and other communications hereunder will be deemed
      to
      have been given either (i) if by hand, at the time of the delivery thereof
      to
      the receiving party at the address of such party set forth above, (ii) if sent
      by overnight courier, on the next business day following the day such notice
      is
      delivered to the courier service, or (iii) if sent by registered or certified
      mail, on the fifth business day following the day such mailing is
      made.

     

    (b) Entire
      Agreement.
      This
      Agreement and the other agreements specifically referred to herein, embodies
      the
      entire agreement and understanding between the parties hereto with respect
      to
      the subject matter hereof and supersedes all prior oral or written agreements
      and understandings relating to the subject matter hereof. No statement,
      representation, warranty, covenant or agreement of any kind not expressly set
      forth in this Agreement will affect, or be used to interpret, change or
      restrict, the express terms and provisions of this Agreement.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    (c) Modifications
      and Amendments.
      The
      terms and provisions of this Agreement may be modified or amended only by
      written agreement executed by the parties hereto.

     

    (d) Waivers
      and Consents.
      The
      terms and provisions of this Agreement may be waived, or consent for the
      departure therefrom granted, only by written document executed by the party
      entitled to the benefits of such terms or provisions. No such waiver or consent
      will be deemed to be or will constitute a waiver or consent with respect to
      any
      other terms or provisions of this Agreement, whether or not similar. Each such
      waiver or consent will be effective only in the specific instance and for the
      purpose for which it was given, and will not constitute a continuing waiver
      or
      consent.

     

    (e) Assignment.
      The
      Company may assign its rights and obligations hereunder to any person or entity
      that succeeds to all or substantially all of the Company’s business or that
      aspect of the Company’s business in which you are principally involved. You may
      not assign your rights and obligations under this Agreement without the prior
      written consent of the Company.

     

    (f) Benefit.
      All
      statements, representations, warranties, covenants and agreements in this
      Agreement will be binding on the parties hereto and will inure to the benefit
      of
      the respective successors and permitted assigns of each party hereto. Nothing
      in
      this Agreement will be construed to create any rights or obligations except
      among the parties hereto, and no person or entity will be regarded as a
      third-party beneficiary of this Agreement. The Company will require any
      successor (whether direct or indirect, by purchase, merger, consolidation or
      otherwise) to all or substantially all of the business and/or assets of the
      Company to expressly assume and agree to perform this Agreement in the same
      manner and to the same extent that the Company would be required to perform
      it
      if no such succession had taken place. As used in this Agreement, "Company"
      shall mean the Company as hereinbefore defined and any successor to its business
      and/or assets which assumes and agrees to perform this Agreement by operation
      of
      law or otherwise.

     

    (g) Governing
      Law.
      This
      Agreement and the rights and obligations of the parties hereunder will be
      construed in accordance with and governed by the law of the State of Florida,
      without giving effect to the conflict of law principles thereof.

     

    (h) Jury
      Waiver.
      The
      parties agree to
      waive
      trial by jury with respect to any claims arising out of or relating to this
      Agreement or your employment by the Company.

     

    (i) Severability.
      The
      parties intend this Agreement to be enforced as written. However, (i) if any
      portion or provision of this Agreement is to any extent be declared illegal
      or
      unenforceable by a duly authorized court having jurisdiction, then the remainder
      of this Agreement, or the application of such portion or provision in
      circumstances other than those as to which it is so declared illegal or
      unenforceable, will not be affected thereby, and each portion and provision
      of
      this Agreement will be valid arid enforceable to the fullest extent permitted
      by
      law and (ii) if any provision, or part thereof, is held to be unenforceable
      because of the duration of such provision, the geographic area covered thereby,
      or other aspect of the scope of such provision, the court making such
      determination will have the power to reduce the duration, geographic area of
      such provision, or other aspect of the scope of such provision, and/or to delete
      specific words and phrases (“blue-penciling”), and in its reduced or
      blue-penciled form, such provision will then be enforceable and will be
      enforced.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    (j) Headings
      and Captions.
      The
      headings and captions of the various subdivisions of this Agreement are for
      convenience of reference only and will in no way modify or affect the meaning
      or
      construction of any of the terms or provisions hereof

     

    (k) No
      Waiver of Rights, Powers and Remedies.
      No
      failure or delay by a party hereto in exercising any right, power or remedy
      under this Agreement, and no course of dealing between the parties hereto,
      will
      operate as a waiver of any such right, power or remedy of the party. No single
      or partial exercise of any right, power or remedy under this Agreement by a
      party hereto, nor any abandonment or discontinuance of steps to enforce any
      such
      right, power or remedy, will preclude such party from any other or further
      exercise thereof or the exercise of any other right, power or remedy hereunder.
      The election of any remedy by a party hereto will not constitute a waiver of
      the
      right of such party to pursue other available remedies. No notice to or demand
      on a party not expressly required under this Agreement will entitle the party
      receiving such notice or demand to any other or further notice or demand in
      similar or other circumstances or constitute a waiver of the rights of the
      party
      giving such notice or demand to any other or further action in any circumstances
      without such notice or demand.

     

    (l) Expenses.
      Should
      the Company breach this Agreement, in addition to all other remedies available
      at law or in equity, the Company will pay all of your costs and expenses
      resulting therefrom and/or incurred in enforcing this Agreement, including
      legal
      fees and expenses. The Company will reimburse you for reasonable fees of
      one counsel
      retained by you in connection with the negotiation and execution of this
      Agreement.

     

    (m) Counterparts.
      This
      Agreement may be executed in two or more counterparts, and by different parties
      hereto on separate counterparts, each of which will be deemed an original,
      but
      all of which together will constitute one and the same instrument.

     

    (n) Election
      as Director.
      For so
      long as you continue to serve as the Company’s Chairman and CEO, the Company
      shall cause you to be nominated as a director of the Company at each shareholder
      meeting at which election of directors is considered and otherwise use its
      best
      efforts to cause you to be elected as a director of the Company.

     

    

     

    REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    If
      the
      foregoing accurately sets forth our agreement, please so indicate by signing
      and
      returning to us the enclosed copy of this letter.

     

     

    
      	 	
              Very
                truly yours,

               

              Key
                Hospitality Acquisition Corp.

               

              By:     

              Name:                                                
                 

              Title:                                    
                   

            

    

     

    Accepted
      and Approved

     

    

    
      	_________________________ 	_______________________	 
	
              David
                Schwarz

            	Date	 

    

     

         

     

    
      
        
        

      

      
        13ESCROW
      AGREEMENT

     

    

    THIS
      ESCROW AGREEMENT
      (this
“Agreement”),
      dated
      as
      of [____], 2007, is made by and among KEY
      HOSPITALITY ACQUISITION CORP.,
      a
      Delaware corporation (“Parent”),
      PARENT,
      F. DAVE CLARK IRREVOCABLE TRUST UNDER AGREEMENT DATED AUGUST 31,
      2004 (“Clark”),
      DAVID
      SCHWARZ
      (“Schwarz”
and
      together with Clark, the “Stockholders”);
      and
      CONTINENTAL
      STOCK TRANSFER AND TRUST COMPANY,
      in its
      capacity as escrow agent hereunder (the “Escrow
      Agent”,
      which
      term shall also include any successor escrow agent appointed in accordance
      with
      Section 5.3 hereof).
      The
      Stockholders and Parent are collectively referred to as the “Interested
      Parties”).

    

    A. Reference
      is made to the Agreement and Plan of Merger, dated as of March 22, 2007 (the
      “Merger
      Agreement”)
      by and
      among Parent, Key Merger Sub, LLC, a Florida limited liability company and
      a
      direct wholly-owned subsidiary of Parent (the “Buyer”),
      the
      Company and the Members, providing for, among other things, the merger of the
      Buyer with and into the Company (the “Merger”).
      Capitalized terms used but not otherwise defined herein shall have the meanings
      given them in the Merger Agreement.

     

    B. This
      Agreement is designed to implement the provisions of the Merger Agreement
      pursuant to which Parent shall deposit with the Escrow Agent the shares of
      Common Stock, $.0001 par value per share, of Parent (“Parent
      Common Stock”)
      identified as Escrow Shares pursuant to Section 1.6 of the Merger Agreement,
      as
      security for the satisfaction of the indemnification obligations of the Members
      pursuant to Article VII of the Merger Agreement and to provide for the return
      of
      certain shares of Parent Common Stock in the event that certain performance
      criteria set forth in Section 1.19 of the Merger Agreement are not
      met.

     

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

     

    ARTICLE
      I

     

    ENGAGEMENT
      OF THE ESCROW AGENT

     

    The
      Escrow Agent is hereby engaged to act as escrow agent hereunder, and the Escrow
      Agent agrees to act as such.

     

    ARTICLE
      II

     

    THE
      ESCROW FUND

     

    2.1 Establishment,
      Maintenance and Investment of the Escrow Fund.
      

     

    (a) In
      accordance with Sections 1.6 and 1.15 of the Merger Agreement, the Parent shall
      deposit or cause to be deposited with the Escrow Agent one or more certificates
      registered in the name of the Stockholders representing the Escrow Shares issued
      to the Stockholders in the Merger. The Escrow Shares, together with all stock
      dividends issued in respect of the Escrow Shares (including, without limitation,
      any shares issued pursuant to any stock dividend, stock split, reverse stock
      split, combination or reclassification thereof) shall hereinafter be referred
      to
      as the “Escrow
      Fund.”
      

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (b) The
      Escrow Agent shall hold the Escrow Fund for the benefit of (i) Parent and the
      other Parent Indemnitees (collectively, the “Indemnified
      Persons”)
      and
      (ii) the Stockholders, all pursuant to the provisions of this Agreement. Any
      distributions of the Escrow Fund shall be made in accordance with Sections
      2.3
      and 2.4 hereof. 

     

    (c) If
      the
      Escrow Agent receives a joint written investment instruction (which may be
      in
      separate counterparts and/or in the form of standing instructions) on a timely
      basis from Parent and the Stockholders directing it to invest any cash portion
      of the Escrow Fund, the Escrow Agent shall invest such amounts as so instructed
      (subject to investment availability). In such event, the Escrow Agent shall
      have
      no responsibility or liability for any losses incurred on any such investment
      (including, without limitation, losses incurred upon liquidation prior to
      maturity, when needed to make a distribution hereunder). If the Escrow Agent
      has
      not received a joint written investment instruction at the close of any Business
      Day, the Escrow Agent shall invest any uninvested cash in the Escrow Fund in
      an
      interest-bearing account, until an investment instruction to the contrary is
      received. For purposes hereof, the term “Business
      Day”
shall
      mean any day other than a Saturday, Sunday or other day on which the corporate
      headquarters of the Escrow Agent is closed for business.

     

    2.2 Rights
      to the Escrow Fund.
      The
      Escrow Fund shall be for the exclusive benefit of the Indemnified Persons as
      provided herein and in Article VII of the Merger Agreement, and no other Person
      shall have any right, title or interest therein other than (i) the Stockholders’
residual underlying ownership interests in the Escrow Fund and (ii) the lien
      of
      the Escrow Agent for its fees and expenses pursuant to Article VII
      hereof.

     

    2.3 General
      Operation of the Escrow Fund.

     

    (a) The
      Escrow Agent shall continue to hold the Escrow Fund in its possession until
      authorized or required hereunder to make distributions therefrom. 

     

    (b)
       The
      Escrow Fund shall consist of the Escrow Shares, as defined in Section 1.6 of
      the
      Merger Agreement, subject to adjustments as provided herein.

     

    (c) Section
      1.19 of the Merger Agreement provides that the Stockholders may forfeit certain
      Escrow Shares if certain performance targets set forth therein fail to be
      achieved (such forfeited Escrow Shares constituting “Forfeited
      Shares”).
      If
      the Interested Parties collectively deliver to the Escrow Agent a joint written
      notice to such effect (a “Forfeiture Notice”),
      which
      Forfeiture Notice shall provide the number of Escrow Shares that then constitute
      Forfeited Shares and shall instruct the Escrow Agent to deliver to Parent a
      number of Escrow Shares within the Escrow Fund equal to the number of shares
      that constitute such Forfeited Shares (or, if the number of shares that
      constitute Forfeited Shares shall be greater than the Escrow Shares remaining
      in
      the Escrow Fund, the balance of the Escrow Fund). The Escrow Agent shall, within
      five (5) days following its receipt of a Forfeiture Notice, disburse to the
      Parent from the Escrow Fund a number of Escrow Shares equal to the Forfeited
      Shares designated on the Forfeiture Notice (or, if the Forfeited Shares shall
      be
      greater than the Escrow Shares remaining in the Escrow Fund, the balance of
      the
      Escrow Fund). The Escrow Agent shall be entitled to rely on any Forfeiture
      Notice without making any inquiry as to its validity or genuineness

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    (d) Section
      1.19 of the Merger Agreement provides that Escrow Shares that do not constitute
      Forfeited Shares due to the achievement of certain performance targets set
      forth
      therein constitute Earned Shares. Whenever Escrow Shares constitute Earned
      Shares under Section 1.19 of the Merger Agreement, the Interested Parties shall
      collectively deliver to the Escrow Agent a joint written notice that identifies
      the number of Escrow Shares that constitute Earned Shares (an “Earned
      Share Notice”).
      The
      Earned Share Notice shall also designate those Earned Shares that shall be
      maintained in the Earned Shares Indemnity Escrow Account (as defined below)
      and
      those Earned Shares, if any, that shall be returned to the Shareholders
      (“Excess
      Earned Shares”).
      The
      Escrow Agent shall, within five (5) days following its receipt of an Earned
      Share Notice, disburse to the Stockholders Earned Shares from the Escrow Fund
      in
      an amount equal to the Excess Earned Shares, if any, designated on the Earned
      Share Notice. The Escrow Agent shall be entitled to rely on any Earned Share
      Notice without making any inquiry as to its validity or
      genuineness.

     

    (e) The
      “Earned
      Shares Indemnity Escrow Account”
      consists of certain Earned Shares that the parties hereto have agreed to set
      aside and treat as deposited into a separate account for the purpose of
      providing for the possible satisfaction of the indemnification obligations
      of
      Clark and Schwarz pursuant to Article VII of the Merger Agreement. 

     

    2.4 Distribution
      of the Escrow Fund - Indemnity Claims. 

     

    (a) If
      any
      Indemnified Person (the “Claiming
      Person”)
      asserts a right of indemnity against any of the Stockholders in accordance
      with
      Article VII of the Merger Agreement for which it seeks payment out of that
      portion of the Escrow Fund equal to the number of shares of Parent Common Stock
      identified by the parties hereto as deposited into the Earned Shares Indemnity
      Escrow Account (the “Indemnity
      Fund”),
      such
      Claiming Person shall deliver to the Escrow Agent (with a copy being sent to
      the
      Stockholders) a written notice to such effect (a “Notice
      of Claim”;
      and
      the right of indemnity asserted in a Notice of Claim being hereinafter referred
      to as a “Claim”),
      which
      Notice of Claim shall provide the date on which such Notice of Claim is deemed
      to be delivered to the Stockholders in accordance with Section 10.1 hereof,
      and
      shall instruct the Escrow Agent to deliver to such Claiming Person that portion
      of the Indemnity Fund equal to the Claimed Amount (as defined below) as
      specified in the Notice of Claim (or, if the Claimed Amount shall be greater
      than the remaining value of the Indemnity Fund, the balance of the Indemnity
      Fund) and in accordance with the terms and conditions of Article VII of the
      Merger Agreement; provided,
      however,
      the
      following shall apply:

     

    (1) In
      order
      to be effective hereunder, a Notice of Claim delivered to the Escrow Agent
      pursuant to this Section 2.4(a) must (A) set forth the name of the Claiming
      Person, the nature and description of such Claim (to the extent known) in
      reasonable detail, and the amount thereof (or if not ascertainable, a reasonable
      estimate of the maximum amount thereof) (the “Claimed
      Amount”)
      and
      (B) be delivered to the Escrow Agent on or prior to the Escrow Agent’s close of
      business on the 18-month anniversary of the date of this Agreement (or the
      immediately succeeding Business Day if the Escrow Agent is not open for business
      on such date) (the “Escrow
      Expiration Date”).
      The
      Escrow Agent shall provide the Interested Parties notice of the Escrow
      Expiration Date at least fifteen (15) days, but no greater than sixty (60)
      days,
      prior to the Escrow Expiration Date; provided,
      however,
      that
      the Escrow Agent shall have no liability for failing to provide such notice
      absent bad faith, willful misconduct or gross negligence. The Escrow Agent
      shall
      be entitled to rely on any Notice of Claim without making any inquiry as to
      its
      validity or genuineness. 

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    (2) Within
      ten (10) Business Days after the delivery to it of a Notice of Claim, the
      Stockholders shall provide to the Claiming Person and the Escrow Agent a written
      response (the “Response
      Notice”)
      in
      which the Stockholders shall: (i) agree that all of the Claimed Amount may
      be
      released from the Indemnity Fund to the Claiming Person in accordance with
      the
      terms and conditions of Article VII of the Merger Agreement, (ii) agree that
      part, but not all, of the Claimed Amount (the “Agreed
      Amount”)
      may be
      released from the Indemnity Fund to the Claiming Person in accordance with
      the
      terms and conditions of Article VII of the Merger Agreement or (iii) assert
      that
      none of the Claimed Amount may be released from the Indemnity Fund to the
      Claiming Person. If the Stockholders do not provide the Claiming Person and
      the
      Escrow Agent a Response Notice in accordance with this Section 2.4(a)(2) within
      such 10-Business Day period, the Stockholders shall be deemed to have agreed
      that all of the Claimed Amount may be released to the Claiming Person from
      the
      Indemnity Fund.

     

    (3) If
      the
      Stockholders agree in the Response Notice (or are deemed to have agreed pursuant
      to the last sentence of Section 2.4(a)(2)) that all of the Claimed Amount may
      be
      released from the Indemnity Fund to the Claiming Person in accordance with
      the
      terms and conditions of Article VII of the Merger Agreement, the Escrow Agent
      shall, within five (5) days following the earlier of the due date for the
      Response Notice or receipt of the Response Notice, disburse to the Claiming
      Person from the Indemnity Fund the Claimed Amount (or such lesser amount as
      is
      then the entire balance of the Indemnity Fund).

     

    (4) If
      the
      Stockholders in the Response Notice agree that the Agreed Amount may be released
      from the Indemnity Fund to the Claiming Person in accordance with the terms
      and
      conditions of Article VII of the Merger Agreement, the Escrow Agent shall,
      within five (5) days following receipt of the Response Notice, disburse to
      the
      Claiming Person from the Indemnity Fund an amount equal to the Agreed Amount
      set
      forth in such Response Notice (or such lesser amount as is then the entire
      balance of the Indemnity Fund), and the remainder of the Claimed Amount shall
      be
      subject to Section 2.4(a)(5).

     

    (5) If
      the
      Stockholders in the Response Notice contest the release of all or part of the
      Claimed Amount (the “Contested
      Amount”),
      the
      Escrow Agent shall continue to hold the entire balance of the Escrow Fund until
      such dispute has been resolved as provided in Article X below or until the
      Escrow Agent has received joint written instructions from Parent and the
      Stockholders with respect to such Contested Amount (any such resolution, a
      “Determination”).
      If
      such Determination provides for payment by the Escrow Agent to the Claiming
      Person of all or a portion of the Contested Amount in accordance with the terms
      and conditions of Article VII of the Merger Agreement, within five (5) days
      following the Escrow Agent’s receipt of such Determination, the Escrow Agent
      shall disburse such portion of the Indemnity Fund (or such lesser amount as
      is
      then the entire balance of the Indemnity Fund) to the Claiming Person in
      accordance with such Determination.

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    Any
      distributions from the Indemnity Fund to satisfy a Claim shall be made by the
      delivery of Earned Shares then held in the Indemnity Fund, with the Earned
      Shares so distributed valued at the Release Price. For purposes hereof, the
      “Release
      Price”
shall
      mean a value equal to $7.50 per Escrow Share notwithstanding the market price
      for the Parent Common Stock as reported on the OTC BB or any other applicable
      exchange or automated quotation system at the time any Claim is made
      hereunder.

     

    (b) If
      the
      Escrow Agent is authorized to deliver all or any portion of the Indemnity Fund
      to a Claiming Person with respect to a Claim pursuant to Section 2.4(a), then
      (i) such delivery shall be made regardless of the Escrow Agent’s prior or
      subsequent receipt of any Notice of Claim or subsequent receipt of any notice
      of
      dispute with respect to any other Claim or Claims and (ii) the Escrow Agent
      shall (1) deliver to Parent’s transfer agent for the Parent Common Stock (who
      shall be identified to the Escrow Agent in writing by Parent) (the “Transfer
      Agent”)
      a
      certificate or certificates representing at least such number of Escrow Shares
      necessary to satisfy the Claim, together with a completed stock power or stock
      powers and instructions necessary to transfer to such Claiming Person such
      number of the Escrow Shares being delivered to such Claiming Person, and (B)
      instruct the Transfer Agent to issue and deliver to the Escrow Agent for
      retention hereunder as part of the Escrow Fund a new certificate in the name
      of
      the Escrow Agent as escrow agent hereunder (or in the name of its nominee)
      representing the remaining balance of the portion of the Escrow Shares so
      delivered to the Transfer Agent. 

     

    (c) The
      twelve (12) month anniversary of this Agreement is referred to herein as the
      “Initial
      Reduction Date”.
      On the
      Initial Reduction Date, the Escrow Shares within the Indemnity Fund shall
      automatically be reduced to 5,000,000 Earned Shares, if applicable, less the
      number of Escrow Shares that may have already reduced the Indemnity Fund
      pursuant to the payment of Claims prior to such date (the amount of such
      distribution, being referred to as the “Initial
      Escrow Disbursement”).
      On or
      before the third (3rd)
      Business Day following the receipt of written notice from the Interested Parties
      by the Escrow Agent notifying the Escrow Agent of the Initial Reduction Date,
      the Escrow Agent shall issue to the Stockholders the Initial Escrow
      Disbursement.   The balance of the Indemnity Fund shall be held
      in escrow
      to
      fund claims for indemnification by any Indemnified Person pursuant to Article
      VII of the Merger Agreement.

     

    (d) Subject
      to Section 2.4(a) hereof,
      promptly following the Escrow Expiration Date, the Escrow Agent shall distribute
      to the Stockholders the entire then remaining balance, if any, of the Escrow
      Fund; provided,
      however,
      that if
      any Notices of Claim have been delivered in accordance with Section 2.3(a)
      prior
      to the Escrow Expiration Date but the Claims specified therein have not been
      resolved or settled prior to the Escrow Expiration Date (the “Remaining
      Claims”),
      the
      Escrow Agent will retain the entire balance of the Indemnity Fund, but shall
      release all other shares remaining in the Escrow Fund, until all Remaining
      Claims are resolved; provided,
      however,
      that in
      the event there is a Contested Amount in a Remaining Claim, then within five
      (5)
      days following the receipt by the Escrow Agent of a Determination with respect
      to any such Contested Amount in a Remaining Claim, the Escrow Agent shall
      disburse the amount specified in such Determination from the Indemnity Fund
      (to
      the extent such amount is then in the Indemnity Fund) to the Claiming Person
      in
      accordance with such Determination. Any distributions from the Escrow Fund
      to a
      Claiming Person pursuant to this Section 2.4(d) shall be made in the same manner
      as is specified in the last paragraph of Section 2.4(a).

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    (e) If
      the
      balance of the Escrow Fund is to be delivered to the Stockholders as provided
      in
      Section 2.3(d), the Escrow Agent shall deliver to the Transfer Agent a
      certificate or certificates representing the remaining Escrow Shares in the
      Escrow Fund, together with a completed stock power or stock powers and
      instructions to deliver to each Stockholder such Stockholder’s Pro Rata Share of
      such Escrow Shares. 

     

    (f) Under
      no
      circumstances shall the Escrow Agent (i) be required to release or distribute
      any portion of the Escrow Fund or take any action under this Agreement sooner
      than two (2) Business Days after the Escrow Agent has received the requisite
      notices or other required documents in good form, or passage of the applicable
      claims period or release date, as the case may be, or (ii) release or distribute
      any portion of the Escrow Fund to any Person other than an Indemnified Person
      without first providing Parent with at least two (2) Business Days’ prior
      written notice of such release or distribution.

     

    ARTICLE
      III

     

    COVENANTS
      RELATING TO THE ESCROW SHARES AND THE STOCKHOLDERS

    

    3.1 Rights
      Incident to Ownership of Shares.
      Except
      as
      otherwise expressly provided herein, each Stockholder shall at all times retain
      and have the full and absolute right to exercise all rights and indicia of
      ownership with respect to the Escrow Shares (collectively, the “Shares”)
      beneficially owned by such Stockholder, including, without limitation, voting
      rights; provided,
      however,
      that
      the Stockholders shall have no right to transfer, pledge or encumber or
      otherwise dispose of in any manner whatsoever any Shares that are held by the
      Escrow Agent pursuant to this Agreement. The Shares shall be treated as having
      been actually issued and transferred to the Stockholders in accordance with
      the
      terms of the Merger Agreement. In accordance with the provisions of Articles
      II
      and III hereof, Parent shall cause all dividends or distributions issued in
      respect of the Shares to be paid to the Shareholders. If any shares of Parent
      Common Stock are transferred to a Claiming Person in accordance with the
      provisions of Article II hereof in satisfaction of a Claim or Claims, all rights
      and indicia of ownership with respect to such shares (and any future dividends
      or distribution with respect thereto) shall thereupon reside with such Claiming
      Person or any subsequent holder thereof.

     

    3.2 Transfer
      of Shares.
      The
      Parent shall be solely responsible for providing, at its cost and expense,
      any
      certification, opinion of counsel or other instrument or document necessary
      to
      comply with or satisfy any transfer restrictions to which the Shares are
      subject, including, without limitation, any opinion of counsel required to
      be
      delivered pursuant to any restrictive legend appearing on the certificate
      evidencing Shares in connection with any distribution of Shares to be made
      by
      the Escrow Agent under or pursuant to this Agreement. Any such opinion of
      counsel shall include the Escrow Agent as an addressee or shall expressly
      consent to the Escrow Agent’s reliance thereon.

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    3.3 Voting
      of and Other Rights with Respect to Shares.
      The
      Escrow Agent shall be under no duty to preserve, protect or exercise rights
      in
      the Shares, and shall be responsible only for taking reasonable measures to
      maintain the physical safekeeping thereof, and otherwise to perform such duties
      on its part as are expressly set forth in this Agreement, except that it will,
      at the written request of a Stockholder given to the Escrow Agent at least
      three
      (3) Business Days prior to the date on which the Escrow Agent is requested
      therein to take any action, deliver to such Stockholder a proxy or other
      instrument in the form supplied to it by Parent for voting or otherwise
      exercising any right of consent with respect to any of the Shares held by the
      Escrow Agent hereunder on behalf of such Stockholder, and shall vote such Shares
      in the manner instructed by such Stockholder in writing. The Escrow Agent will
      not be responsible for authenticating the right of any Stockholder to exercise
      voting authority in respect of Shares held by it hereunder. The Escrow Agent
      shall, upon receiving proper written instructions from a Stockholder (which
      instructions shall be received at least three (3) Business Days prior to the
      date on which Escrow Agent is required to take any action hereunder), be
      responsible for forwarding to or notifying any party or taking any other action
      with respect to any reasonable notice (as specifically set forth in such written
      instruction), solicitation or other document or information, received by the
      Escrow Agent from an issuer or other Person with respect to Shares held by
      the
      Escrow Agent on behalf of such Stockholder hereunder, including, without
      limitation, any proxy material, tenders, options, the pendency of calls and
      maturities or the expiration of rights.

     

    3.4 The
      Stockholders.

     

    (a) The
      Stockholders represent and warrant that each has the irrevocable right, power
      and authority to enter into and perform this Agreement.

     

    (b) The
      Escrow Agent and Parent may rely conclusively and act upon the directions,
      instructions and notices of the Stockholders if such direction, instruction
      and
      notice are signed by a Stockholder entitled to a majority of the Escrow Shares
      as set forth on Schedule I attached hereto.

     

    ARTICLE
      IV

     

    TERMINATION

     

    This
      Agreement shall automatically terminate if and when the entire Escrow Fund
      shall
      have been completely distributed by the Escrow Agent in accordance with the
      terms of this Agreement.

     

    ARTICLE
      V

     

    THE
      ESCROW AGENT

     

    5.1 Obligations
      of the Escrow Agent.
      Each
      party acknowledges and agrees that the Escrow Agent (i) shall not be responsible
      for any of the agreements referred to or described herein (including, without
      limitation, the Merger Agreement), or for determining or compelling compliance
      therewith, and shall not otherwise be bound thereby, (ii) shall be obligated
      only for the performance of such duties as are expressly and specifically set
      forth in this Agreement on its part to be performed, each of which is
      ministerial (and shall not be construed to be fiduciary) in nature, and no
      implied duties or obligations of any kind shall be read into this Agreement
      against or on the part of the Escrow Agent, (iii) shall not be obligated to
      take
      any legal or other action hereunder that might in its judgment involve or cause
      it to incur any expense or liability unless it shall have been furnished with
      acceptable indemnification, (iv) may rely on and shall be protected in acting
      or
      refraining from acting upon any written notice, instruction (including, without
      limitation, wire transfer instructions, whether incorporated herein or provided
      in a separate written instruction), instrument, statement, certificate, request
      or other document furnished to it hereunder and believed by it to be genuine
      and
      to have been signed or presented by the proper Person, and shall have no
      responsibility to inquire as to or to determine the genuineness, accuracy or
      validity thereof, and (v) may consult counsel satisfactory to it, including
      in-house counsel, and the opinion or advice of such counsel in any instance
      shall be full and complete authorization and protection in respect of any action
      taken, suffered or omitted by it hereunder in good faith and in accordance
      with
      the opinion or advice of such counsel. 

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    5.2 Limitation
      of Liability.
      The
      Escrow Agent shall not be liable to anyone for any action taken or omitted
      to be
      taken by it hereunder except in the case of the Escrow Agent’s gross negligence,
      bad faith or willful misconduct. In no event shall the Escrow Agent be liable
      for indirect, punitive, special or consequential damage or loss (including
      but
      not limited to lost profits) whatsoever, even if the Escrow Agent has been
      informed of the likelihood of such loss or damage and regardless of the form
      of
      action.

     

    5.3 Resignation
      and Removal of the Escrow Agent.
      The
      Escrow Agent may resign and be discharged from its duties hereunder at any
      time
      by giving at least thirty (30) days’ prior written notice of such resignation to
      the Interested Parties specifying a date upon which such resignation shall
      take
      effect; provided,
      however,
      that
      the Escrow Agent shall continue to serve as escrow agent hereunder until its
      successor accepts the Escrow Fund and assumes the Escrow Agent’s obligations
      under this Agreement. Upon receipt of such notice, a successor escrow agent
      shall be appointed by the Interested Parties, such successor escrow agent to
      become the Escrow Agent hereunder and to succeed to all of the rights and
      obligations of the resigning Escrow Agent on the resignation date specified
      in
      such notice. If a written instrument of acceptance by a successor escrow agent
      shall not have been delivered to the Escrow Agent within forty (40) days after
      the giving of such notice of resignation, the resigning Escrow Agent may at
      the
      expense of the Interested Parties petition any court of competent jurisdiction
      for the appointment of a successor escrow agent. The Interested Parties may
      at
      any time substitute a new escrow agent by giving ten (10) days’ prior written
      notice thereof to the Escrow Agent then acting and by the Interested Parties
      paying all fees and expenses of such Escrow Agent accrued as of such
      date.

     

    5.4 Self-Dealing.
      The
      Escrow Agent is hereby authorized, in making or disposing of any investment
      permitted by this Agreement, to deal with itself (in its individual capacity)
      or
      with any one or more of its affiliates, whether it or such affiliate is acting
      as a sub-agent of the Escrow Agent or for any third Person or dealing as
      principal for its own account. 

     

    5.5 Payments.
      Unless
      and except to the extent otherwise expressly provided herein, all deposits
      and
      payments to the Escrow Agent hereunder, or pursuant to the terms hereof
      (including without limitation all payments to the Escrow Agent pursuant to
      Article VII), shall be in U.S. dollars.

     

    ARTICLE
      VI

     

    INDEMNIFICATION

     

    Except
      as
      otherwise provided in Article VII, and without determining or limiting any
      rights as between the Interested Parties, the Parent and each of the
      Stockholders (up to each Stockholder’s Pro Rata Share) covenants and agrees,
      jointly and severally, to indemnify the Escrow Agent (and its directors,
      officers and employees) and hold it (and such directors, officers and employees)
      harmless from and against any loss, liability, damage, cost and expense of
      any
      nature incurred by the Escrow Agent arising out of or in connection with third
      party claims relating to this Agreement, including but not limited to,
      reasonable attorney’s fees and other costs and expenses of defending or
      preparing to defend against any claim of liability unless and except to the
      extent such loss, liability, damage, cost and expense shall be caused by the
      Escrow Agent’s gross negligence, bad faith or willful misconduct. Without
      altering or limiting the joint and several liability of the Parent and the
      Stockholders under this Article VI, the Parent and the Stockholders as a group
      shall each be responsible for one-half (1/2) of all amounts that become due
      to
      the Escrow Agent pursuant to this Article VI. The foregoing indemnification
      obligation shall survive the termination of this Agreement and the resignation
      or removal of the Escrow Agent.

     

    ARTICLE
      VII

     

    FEES
      AND EXPENSES

     

    7.1 Customary
      Fees and Expenses.
      The
      Parent
      agrees to pay the Escrow Agent’s compensation for its normal services hereunder
      in accordance the fee schedule set forth in Schedule
      II
      attached
      hereto. 

     

    7.2 Extraordinary
      Fees and Expenses. The
      Parent and each of the Stockholders (up to each Stockholder’s Pro Rata Share)
      agrees, jointly and severally, to reimburse the Escrow Agent on demand for
      all
      costs and expenses incurred in connection with the administration of this
      Agreement or the escrow created hereby or the performance or observance of
      its
      duties hereunder which are in excess of its compensation for normal services,
      including without limitation, payment of any reasonable legal fees and expenses
      incurred by the Escrow Agent in connection with the resolution of any claim
      made
      by a party to this Agreement. Without altering or limiting the joint and several
      liability of the Parent and the Stockholders under this Section 7.2, the Parent
      and the Stockholders as a group shall each be responsible for one-half (1/2)
      of
      all amounts that become due to the Escrow Agent pursuant to this Section 7.2.
      The Escrow Agent shall periodically bill Parent and the Stockholders for such
      fees and expenses, as applicable. Notwithstanding anything herein to the
      contrary, the Escrow Agent shall have and is hereby granted a possessory lien
      on
      and security interest in the Escrow Fund, and all proceeds thereof, to secure
      payment of all amounts owing to it from time to time under this Section 7.2,
      whether now existing or hereafter arising. The Escrow Agent shall have the
      right
      to deduct from the Escrow Fund, and proceeds thereof, any such sums, upon two
      (2) Business Day’s notice to the Interested Parties of its intent to do so. If,
      pursuant to the preceding sentence, the Escrow Agent deducts any sums from
      the
      Escrow Fund as a result of Parent’s or the Stockholders’ failure to pay or
      reimburse the Escrow Agent for its fees and expenses as required by this Section
      7.2, the party failing to make such payment shall indemnify the other party
      for
      the full amount deducted by the Escrow Agent as a result of such
      failure.

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    ARTICLE
      VIII

     

    TAX
      MATTERS

     

    8.1 Obligations
      of the Interested Parties.
      Without
      determining or limiting any rights as between the Interested Parties, each
      of
      the Interested Parties agrees severally, and not jointly, (i) to assume any
      and
      all obligations now or hereafter arising under any applicable tax law with
      respect to any payment or distribution of the Escrow Fund to, or performance
      of
      other activities under this Agreement by, such Interested Party, (ii) to
      instruct the Escrow Agent in writing with respect to the Escrow Agent’s
      responsibility for withholding and other taxes, assessments or other
      governmental charges, and to instruct the Escrow Agent with respect to any
      certifications and governmental reporting that may be required under any laws
      or
      regulations that may be applicable in connection with its action as Escrow
      Agent
      under this Agreement, and (iii) to indemnify and hold the Escrow Agent harmless
      from any liability or obligation on account of taxes, assessments, additions
      for
      late payment, interest, penalties, expenses and other governmental charges
      that
      may be assessed or asserted against the Escrow Agent in connection with or
      relating to any payment made or other activities performed under the terms
      of
      this Agreement including, without limitation, any liability for the withholding
      or deduction of (or the failure to withhold or deduct) the same, and any
      liability for failure to obtain proper certifications or to report properly
      to
      governmental authorities in connection with this Agreement, including costs
      and
      expenses (including reasonable legal fees and expenses), interest and penalties,
      to the extent that it relates to such individual Interested Party. The foregoing
      indemnification obligation shall survive the termination of this Agreement
      and
      the resignation or the removal of the Escrow Agent. 

     

    8.2 Treatment
      of Earnings.
      The
      Interested Parties agree that the Stockholders will be treated for federal,
      state and local income and other tax purposes as owning the Escrow Fund
      (including any distributions in respect thereof) in accordance with their
      respective Pro Rata Share thereof, and agree that all earnings, if any, with
      respect thereto will be reported by the Escrow Agent as earnings of the
      Stockholders according to such respective interests whether or not distributed.
      On or promptly after the date hereof, the Stockholders shall, on behalf of
      the
      Stockholders, provide the Escrow Agent with a completed IRS Form W-9 for each
      Stockholder certifying thereon such Stockholder’s taxpayer identification or
      social security number. The Stockholders acknowledges that withholding of a
      portion of the earnings on the Escrow Fund may be required for federal, state
      or
      local income tax purposes in the event any Stockholder fails to certify such
      party’s taxpayer identification number or social security number to the Escrow
      Agent. 

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    ARTICLE
      IX

     

    DISPUTES

     

    If
      any
      dispute should arise with respect to the distribution or ownership or right
      of
      possession of all or any portion the Escrow Fund (including, without limitation,
      any Contested Claim), or the duties of the Escrow Agent hereunder, or should
      any
      claim be made upon the Escrow Agent or the Escrow Fund by any third party,
      the
      Escrow Agent is authorized and shall be entitled (at its sole option and
      election) to retain in its possession, without liability to anyone, all or
      any
      part of the Escrow Fund in dispute until such dispute shall have been settled
      either by mutual agreement of the Interested Parties (evidenced by appropriate
      instructions in writing to the Escrow Agent signed by the Interested Parties)
      or
      by the final order, decree or judgment of a court of competent jurisdiction
      or
      arbitral panel, with respect to any arbitrated disputes, in the United States
      of
      America (the time for appeal having expired with no appeal having been taken)
      in
      a proceeding to which the Interested Parties are parties, but the Escrow Agent
      shall be under no duty whatsoever to institute or defend any such
      proceedings.

     

    ARTICLE
      X

     

    MISCELLANEOUS

     

    10.1 Notices.
      All
      notices or other communications which are required or permitted hereunder shall
      be in writing and sufficient if delivered personally or sent by
      nationally-recognized overnight courier, or by facsimile or electronic mail
      transmission with a copy thereof to be delivered by nationally-recognized
      overnight courier within 24 hours of such facsimile transmission addressed as
      follows:

     

    

    
      	 	
              (i)

            	
              if
                to Parent, to:[add
                email]

            

    

    

    Key
      Hospitality Acquisition Corp.

    ____________________________

    ____________________________

    ____________________________

    Attention:
      Chief Executive Officer

    Phone:
      (___) ___-____

    Facsimile:
      (___) ___-____

    

    with
      a
      copy to (which copy shall not constitute notice):

    

    Mintz,
      Levin, Cohn, Ferris, Glovsky and Popeo, P.C.

    666
      Third
      Avenue, 25th
      Floor

    New
      York,
      NY 10017

    Attention:
      Kenneth R. Koch, Esq.

    Phone:
      (212) 935-3000

    Facsimile:
      (212) 983-3315

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    
 

    
      	
            	(ii)	
              if
                to the Stockholders, to; 

            

    

    

    ____________________________

    ____________________________

    ____________________________

    

    with
      a
      copy to (which copy shall not constitute notice):

    

    ____________________________

    ____________________________

    ____________________________

    

    

    
      	
            	(iii)	
              if
                to the Escrow Agent, to the address set forth on Schedule
                II
                hereto,

            

    

     

    or
      to
      such other address as the party to whom notice is to be given may have furnished
      to the other parties hereto in writing in accordance herewith. All
      such
      notices or communications shall be deemed to be delivered and received (a)
      in
      the case of personal delivery, on the date of such delivery, (b) in the case
      of
      nationally-recognized overnight courier, on the next Business Day after the
      date
      when sent, or (c) in the case of facsimile transmission or electronic mail
      upon
      confirmed receipt; provided, however, that no notice to the Escrow Agent shall
      be deemed delivered until actually received by the Escrow Agent.

     

    10.2 Counterparts.
      This
      Agreement may be executed in any number of counterparts by original or facsimile
      signature, and each such counterpart hereof shall be deemed to be an original
      instrument, but all such counterparts together shall constitute but one
      agreement.

     

    10.3 Governing
      Law.
      This
      Agreement will be governed by and construed and enforced in accordance with
      the
      laws of the State of New York without giving effect to any choice of law or
      conflicting provision or rule that would cause the laws of any jurisdiction
      other than the State of New York to be applied.

     

    10.4 Wiring
      Instructions.
      All
      funds, if any, to be paid to or by the Escrow Agent shall be sent by wire
      transfer in accordance with the instructions provided on Schedule
      II
      hereto,
      or by such other method of payment and in accordance with such instructions
      as
      may be given in advance and in writing to the Escrow Agent or the Interested
      Parties by notice in compliance with Section 10.1 of this Agreement. The parties
      acknowledge that the Stockholders may request that all or any part of any
      payment required to be delivered to the Stockholders pursuant to this Agreement
      may, at the request of the Stockholders, be wired directly to the Stockholders
      pursuant to wire transfer instructions provided by the Stockholders to the
      Escrow Agent at least two (2) Business Days prior to the date on which such
      payment is due, provided that, the Escrow Agent shall be entitled to rely
      exclusively on any such instructions received from the Stockholders without
      liability to the Escrow Agent or any other Interested Parties.

     

    10.5 Parties
      in Interest.
      This
      Agreement shall be binding upon, inure to the benefit of, and be enforceable
      by,
      the parties hereto and their respective successors and assigns. Anything
      contained herein to the contrary notwithstanding, this Agreement shall not
      be
      assigned by any party without the consent of the other parties hereto;
provided,
      however,
      that
      if
      the
      Escrow Agent consolidates, mergers or converts into, or transfers all or
      substantially all of its corporate trust business to, another corporation,
      the
      successor corporation without any further act shall be the successor Escrow
      Agent. 

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    10.6 Amendments.
      This
      Agreement may be amended only by a written instrument duly executed by the
      parties hereto. No course of conduct shall constitute a waiver of any of the
      terms and conditions of this Agreement, unless such waiver is specified in
      a
      writing signed by the party against whom enforcement of any waiver is sought,
      and then only to the extent so specified. A waiver of any of the terms and
      conditions of this Agreement on one occasion shall not constitute a waiver
      of
      the other terms of this Agreement, or of such terms and conditions on any other
      occasion. 

     

    10.7 Headings.
      The
      section and paragraph headings contained in this Agreement are for reference
      purposes only and shall not affect in any way the meaning or interpretation
      of
      this Agreement.

     

    10.8 Entire
      Agreement.
      This
      Agreement and, with respect to the Interested Parties only, the Merger Agreement
      and the documents delivered in connection therewith, contain the entire
      agreement among the parties hereto with respect to the transactions contemplated
      hereby and supersede all prior agreements or understandings, written or oral,
      among the parties identified above with respect thereto; provided,
      however,
      that
      anything contained herein to the contrary notwithstanding, the parties hereto
      agree that the Escrow Agent shall perform its obligations under this Agreement
      solely by reference to this Agreement.

     

    10.9 Force
      Majeure.
      The
      Escrow Agent shall not be responsible for delays or failures in performing
      its
      duties resulting from acts beyond its control such as, but not limited to,
      acts
      of God, strikes, lockouts, riots, acts of war, epidemics, acts of terrorism,
      governmental regulations superimposed after the fact, fire, communication line
      failures, computer viruses, power failures, earthquakes or other
      disasters.

     

    10.10 Severability.
      If any
      provision of this Agreement, including any phrase, sentence, clause, section
      or
      subsection is inoperative or unenforceable for any reason, such circumstances
      shall not have the effect of rendering the provision in question inoperative
      or
      unenforceable in any other case or circumstance, or of rendering any other
      provision or provisions herein contained invalid, inoperative, or unenforceable
      to any extent whatsoever.

    

    10.11 Waiver
      of Jury Trial.
      THE
      ESCROW AGENT AND THE INTERESTED PARTIES HEREBY WAIVE A TRIAL BY JURY OF ANY
      AND
      ALL ISSUES ARISING IN ANY ACTION OR PROCEEDING BETWEEN THEM OR THEIR SUCCESSORS
      OR ASSIGNS, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY OF ITS PROVISIONS
      OR ANY NEGOTIATIONS IN CONNECTION HEREWITH.

    

    

    [Remainder
      of Page Intentionally Left Blank]

    

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF,
      the
      parties hereto have caused this Escrow Agreement to be executed and delivered
      on
      the date first above written.

    

     

    
      	 	
              PARENT:

              

              KEY
                HOSPITALITY ACQUISITION CORP.

              

              

              By:       

              Name:                                                                
                

              Title:                                                             
                     

              

              

              THE
                STOCKHOLDERS:

              

              

               

              F.
                Dave Clark Irrevocable Trust under Agreement dated August 31,
                2004

               

               

              
                By:       
F.
                Dave Clark, as Trustee

              

               

              David
                Schwarz      

              

              

              THE
                ESCROW AGENT:

              

              CONTINENTAL
                STOCK TRANSFER AND TRUST COMPANY

              

              

              
                By:       

                
                  Name:                                                              

                

              

              
                Title:                                                                

              

            

    

    

    
      [Signature
        Page to Escrow Agreement]

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    Schedule
      I

    

    Stockholders

    

    

    
      	
              Stockholder

              (including
                address and taxpayer or social security number)

            	
              Pro
                Rata Share

            
	 	 
	
              F.
                Dave Clark Irrevocable Trust under Agreement dated August 31,
                2004

            	 
	
              David
                Schwarz

            	 
	 	 
	 	 
	 	 
	 	 

    

    

    
 

    
      
         

      

      
         

        
          

        

      

      
         

      

       

    

    Schedule
      II

    

    Information
      Concerning The Escrow Agent

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