Document:

Exhibit 10.36

 

FIFTH AMENDMENT TO

 

EMPLOYMENT AGREEMENT

 

This Fifth Amendment to Employment Agreement (the “Fifth Amendment”) is
made and entered into as of May 19, 1997, by and between KENNEDY-WILSON,
INC., A Delaware corporation, with its principal office located in Santa
Monica, California (the “Company”), and WILLIAM J. McMORROW, an individual (“Employee”).

 

RECITALS

 

WHEREAS, Company and Employee have entered into that
certain Employment Agreement dated as of August 14, 1992, as amended January 1,
1993, January 1, 1994, March 31, 1995 and January 1, 1996,
providing for the employment of Employee by Company pursuant to the terms of
such Agreement; and

 

WHEREAS, Company and Employee have agreed that the terms of the
Employment Agreement should be modified to change the Term of Employment, Bonus
and Severance Agreement.

 

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, effective as of May 19, 1997 as follows:

 

1. Section 2 of the Employment Agreement is
deleted in its entirety and the following is inserted in lieu thereof:

 

2.                                        Term (a): Employee
shall be employed by the Company pursuant to his Employment Agreement for a
term beginning in August 14, 1992, and continuing through to and
terminating at the close of business on December 31, 1999, (unless earlier
terminated pursuant to Section 9 hereof).

 

(b): In the event the Employment Agreement is terminated due to change
in control, or non renewal of the Agreement, except if change in control or non
renewal is for cause (which shall mean only Employee’s violation of criminal
law, material wrong act or omission, malfeasance or gross negligence which
causes material damage to the business or reputation of the Companies),
disability or death, the Employee shall in consideration of his execution of
the General Release attached as Exhibit “A”, hereof, be entitled to
payment from the Company equal to two (2) times the Employee’s annual
compensation. The annual compensation would be the arithmetic average of the
most recent three (3) year period and would include salary and bonus as
reported in the Proxy Statement, (the “Severance Payment”). Such Severance
Payment shall be paid to Employee ten (10) days following his execution
and delivery to Company of such General Release, provided Employee has not
revoked such General Release in the meanwhile.

 

 

2.                                          Section 4(ii) of
the Employment Agreement is deleted in its entirety and the following is inserted
in lieu thereof:

 

4(ii).
An annual bonus payable in an amount as follows:

 

1998 Bonus     20% on profits of 3MM to 17.5MM (pretax,
pre bonus)

1997 Bonus    20% on profits of 3MM to 12.5MtvI (pre tax,
pre bonus)

1999 Bonus   
20% on profits of 3MM to 22.5MM (pre tax, pre bonus)

 

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

 

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

 

 

	
  COMPANY

  	
   

  	
  ATTEST:

  
	
  KENNEDY-WILSON, Inc. a Delaware
  corporation

  	
   

  	
  /s/
  Kent Y. Mouton

  
	
  /s/
  James C. Ozello, Acting Secretary

  	
   

  	
  Chairman,
  Compensation

  
	
  Compensation
  Committee

  	
   

  	
  Committee

  
	
   

  	
   

  	
   

  
	
  EMPLOYEE

  	
   

  	
  /s/ Freeman Lyle

  
	
  /s/ William J. McMorrow,
  Chairman

  	
   

  	
  Senior Managing Director,
  and Chief Financial Officer

  

 

 

GENERAL RELEASE

 

I,
WILLIAM A. McMORROW (“Releasing Party”), in consideration for payment of the
sum of
                      dollars
($                    ),
less applicable payroll deductions:

 

1.                                       Release and discharge forever KENNEDY-WILSON, INC., a Delaware
corporation, and its present and former directors, officers, employees, agents,
attorneys, divisions, subsidiaries, parent corporation, affiliates, successors,
insurance carriers and assigns and each of them (hereinafter “Released
Parties”), from all liabilities, claims, causes of action, charges, complaints,
obligations, costs, losses, damages, injuries, attorneys’ fees, and other legal
responsibilities, of any form whatsoever (hereinafter “Claims”), whether known
or unknown, unforeseen, unanticipated, unsuspected or latent, which I or my
successors in interest now on or hold, or have at any time heretofore owned or
held, or may at any time own or hold by reason of any matter or thing arising
from any cause whatsoever prior to the date of execution of this instrument,
and without limiting the generality of the foregoing, from (a) all Claims
based upon, relating to, or arising out of my employment and the termination of
that relationship; and (b) all Claims for age discrimination under the
Federal Age Discrimination and Employment Act, as amended, 29 U.S.C. §621, et
seq.

 

2.                                       Acknowledge that I have been made aware of Section 1542 of the
California Civil Code, which provides as follows:

 

Section 1542.
[Certain claims not affected by general release.] A general release does not
extend to claims which the creditor does not know or suspect to exist in his
favor at the time of executing the release, which if known to him must have
materially affected his settlement with the debtor.

 

and
hereby waive and release any rights which I may have under Section 1542 of
the Civil Code to the full extent that all such rights may lawfully be
waived.

 

3.                                       Covenant that I have made no assignment and will make no assignment or
the claims released herein and agree that I will not institute legal
proceedings based upon, arising out of, or relating to any Claims released
herein. I further agree to indemnify and
hold harmless Released Parties, and each of them, against any loss or
liability, whatsoever, including reasonable attorneys’ tees, caused by any
action or proceeding, before any court or governmental agency, commission,
division or department, whether state, federal or local, which is brought by me
or my successors in interest if such action or proceeding arises out at, is
based upon, or is related to any Claims released herein.

 

4.                                       Understand that the aforesaid payment is not to be construed as an admission
on the part of said Released Parties of any wrongdoing or liability whatsoever.

 

5.                                       I understand and agree that this General Release is binding upon my
heirs, personal representatives, spouse, executors, administrators and assigns.

 

 

6.                                       Acknowledge that I an advised in writing to consult With an attorney
prior to executing this General Release and that I have been given a period of
twenty one (21) calendar days to consider this General Release before executing
it.  I further understand that Tor a period
of seven (7) calendar days following the execution of this General
Release, I may revoke it by delivering written notice of such revocation to
KENNEDY-WILSON, INC. at its principal place of business, and that neither this
general Release nor the obligation to make the payment referenced above shall
become effective or enforceable until such revocation period has expired.

 

 

	
  DATED:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  WILLIAM J. McMORROW

  

 

2Exhibit
10.119

 

FIFTEENTH
AMENDMENT TO EMPLOYMENT AGREEMENT

 

This Fifteenth Amendment to Employment Agreement is
made and entered into as of January 1, 2009 by and between Kennedy-Wilson
Properties, Ltd., an Illinois corporation (“Company”), and James Rosten
(“Employee”).

 

RECITALS

 

WHEREAS, Company and Employee have entered into
that certain Employment Agreement dated as of January 4, 1999, and amended
January 1, 2001, March 15, 2001, January 3, 2003, September 5, 2003, October 1,
2003, January 1, 2004, April 19, 2004, January 1, 2005, February 11, 2005,
January 1, 2006, August 1, 2006, January 1, 2007, January 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 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.”

 

2.               Section 5(d)(i) of the Agreement is
hereby 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.               The Agreement is hereby further amended
by replacing all references to “Section 5(d)(iii)” with “Section 5(d)(ii)”.

 

4.               Section 5(d)(ii) is hereby amended by
deleting the second to last sentence thereof and replacing it with the
following:

 

“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.”

 

5.               The first sentence of 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 and
other benefits described in Sections 5(a) and (b) for the remainder of the Term
of the Agreement (less the aggregate value of compensation and benefits
received by Employee during the remainder of the Term from any source and
without regard to characterization), 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).

 

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

 

“(h) Code 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,

 

2

 

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 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

 

3

 

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.

 

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”

  
	
  Kennedy-Wilson
  Properties, Ltd.,

  	
   

  	
   

  
	
  an Illinois
  corporation

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ William J.
  McMorrow

  	
   

  	
  /s/ James Rosten

  
	
  Name:

  	
  William J.
  McMorrow

  	
   

  	
  James Rosten

  
	
  Its:

  	
  Chairman/CEO

  	
   

  	
   

  

 

4

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