Exhibit
10.221


 


FIFTH
AMENDMENT TO EMPLOYMENT AGREEMENT


 


This Fifth Amendment to Employment Agreement is made
and entered into as of January 1, 2009 by and between KW Multi-Family
Management Group, Ltd., a Delaware corporation (“Company”), and Robert E. Hart
(“Employee”).


 


RECITALS


 


WHEREAS, Company and Employee have entered into
that certain Employment Agreement dated as of January 1, 2006, and amended
August 1, 2006, January 1, 2007, August 1, 2008 and January 1, 2009 (the
“Agreement”), providing for the employment of Employee by Company pursuant to
the terms of the Agreement; and


 


WHEREAS, Company and Employee have agreed that
the terms of the Agreement should be modified for compliance with the
applicable requirements of Section 409A of the Internal Revenue Code of 1986,
as amended.


 


AMENDMENT
TO AGREEMENT


 


NOW, THEREFORE, for good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties
hereby amend the Agreement, as follows:


 


1.               Section 5(b) of the Agreement is hereby
amended by deleting the first sentence of the second paragraph and replacing it
with the following:


 


“Employee understands and
acknowledges that the Bonus Pool as so calculated shall be distributed by the
Company amongst the Company’s employees in the sole and absolute discretion of
the Company.”


 


2.               Section 5(b) of the Agreement is hereby
further amended by the addition of the following sentence to the end thereof:


 


“Any such bonus determined to be payable to Employee
for any period during the Term shall be paid in a cash lump sum payment by no
later than the fifteenth day of the third calendar month next following the
later of the end of the calendar year, or the end of Company’s fiscal year, in
either case in which such bonus is determined and declared by the Company.”


 


3.               Section 11(c) of the Agreement is hereby
deleted in its entirety and replaced with the following:


 

















 


“If the Term of the Agreement is terminated by Company
without cause, then Company shall continue to pay Employee the basic salary
described in Section 5(a) for the remainder of the Term of the Agreement, and
any bonus to which Employee may be entitled under Section 5(b), on the
Company’s ordinary payroll dates then applicable to similarly situated
employees of the Company, together with such other employee benefits (other
than continued participation under the Company’s Section 401(k) plan) as
Employee may be entitled to under the provisions of Section 6 (or if such
benefits cannot be provided pursuant to the terms of the applicable plans,
comparable benefits due hereunder and remaining to be paid during the Term in
the ordinary course, provided that the payment of fringe or comparable benefits
shall be subject to the availability of such benefits following Employee’s
termination of employment at no additional cost above what was previously paid
by the Company).”


 


4.               Section 13 of the Agreement is hereby
amended by the addition of a new Section 13(g) to read as follows:


 


“(g) Section 409A.


 


(i)            The Company intends that the reimbursements,
payments and benefits to which Employee could become entitled under this
Agreement be exempt from or comply with Section 409A of the Code and the
regulations and other guidance promulgated thereunder (“Section 409A”).  The provisions of this section shall qualify
and supersede all other provisions of this Agreement as necessary to fulfill
the foregoing intention.  If Company
believes, at any time, that any of such reimbursement, payment or benefit is
not exempt or does not so comply, Company will promptly advise Employee and
will reasonably and in good faith amend the terms of such arrangement such that
it is exempt or complies (with the most limited possible economic effect on
Employee and on Company) or to minimize any additional tax, interest and/or
penalties that may apply under Section 409A if exemption or compliance is not
practicable.  Company agrees that it will
not, without Employee’s prior written consent, knowingly take any action, or
knowingly refrain from taking any action, other than as required by law, that
would result in the imposition of tax, interest and/or penalties upon Employee
under Section 409A, unless such action or omission is pursuant to Employee’s
written request.


 


(ii)           To the extent applicable, each and
every payment to be made pursuant to this Agreement shall be treated as a
separate payment and not as one of a series of payments treated as a single
payment for purposes of Treasury Regulation Section 1.409A-2(b)(2)(iii).


 


(iii)          If Employee is a “specified employee”
(determined by Company in accordance with Section 409A and Treasury Regulation
Section 1.409A-3(i)(2)) as of the date that Employee experiences a separation
from


 


2

















 


service, as defined in Treasury Regulations Section
1.409A-1(h)(1), from the Company (a “Separation from Service”) and if any
reimbursement, payment or benefit to be paid or provided under this Agreement
or otherwise both (A) constitutes a “deferral of compensation” within the
meaning of and subject to Section 409A (“Nonqualified Deferred Compensation”)
and (B) cannot be paid or provided in a manner otherwise provided herein
without subjecting Employee to additional tax, interest and/or penalties under
Section 409A, then any such reimbursement, payment or benefit that is payable
during the first six months following Employee’s date of termination shall be
paid or provided to Employee in a lump sum cash payment to be made, with
interest at the applicable federal rate, on the earlier of (X) Employee’s death
and (Y) the first business day of the seventh (7th) month immediately following
Employee’s Separation from Service.  To
the extent available, all the exceptions of Treasury Regulations Section
1.409A-1(b)(9) shall apply in implementing the rules of this section.


 


(iv)          Except to the extent any
reimbursement, payment or benefit to be paid or provided under this Agreement
does not constitute Nonqualified Deferred Compensation, (A) the amount of
expenses eligible for reimbursement or the provision of any in-kind benefit (as
defined in Section 409A) to Employee during any calendar year will not affect
the amount of expenses eligible for reimbursement or provided as in-kind
benefits to Employee in any other calendar year (subject to any lifetime and
other annual limits provided under Company’s health plans), (B) the
reimbursements for expenses for which Employee is entitled shall be made on or
before the last day of the calendar year following the calendar year in which
the applicable expense is incurred and (C) the right to payment or
reimbursement or in-kind benefits may not be liquidated or exchanged for any
other benefit.


 


(v)           Any reimbursement, payment or benefit
to be paid or provided under this Agreement due to a Separation from Service
that is exempt from Section 409A pursuant to Treasury Regulation Section
1.409A-1(b)(9)(v) will be paid or provided to Employee only to the extent the
expenses are not incurred or the benefits are not provided beyond the last day
of the Employee’s second taxable year following the Employee’s taxable year in
which the Separation from Service occurs; provided, however, that Company shall
reimburse such expenses no later than the last day of the third taxable year
following the Employee’s taxable year in which the Employee’s Separation from
Service occurs.


 


(vi)          Any reimbursement, payment or benefit
to be paid or provided under this Agreement that constitutes Nonqualified
Deferred Compensation due upon a termination of employment shall be paid or
provided to Employee only in the event of a Separation from Service.


 


3

















 


Subject to the foregoing, the Agreement remains in
full force and effect, and Company and Employee hereby ratify and affirm the
Agreement in each and every respect.


 


IN WITNESS WHEREOF, the undersigned have executed this
Amendment as of the date first above written.


 


 


	
  “COMPANY”

  	
   

  	
  “EMPLOYEE”

  
	
  KW Multi-Family Management Group, Ltd.,

  	
   

  	
   

  
	
  a Delaware corporation

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ William J. McMorrow

  	
   

  	
  /s/ Robert E. Hart

  
	
  Name:

  	
  William J. McMorrow

  	
   

  	
  Robert E. Hart

  



 


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