Document:

Exhibit 10.42

 

ELEVENTH AMENDMENT TO
EMPLOYMENT AGREEMENT

 

This Eleventh Amendment to
Employment Agreement (the “Eleventh Amendment”) is made and entered into as of October 1,
2003, by and between KENNEDY-WILSON, INC.,
a Delaware corporation (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, January 1, 1996, May 19, 1997, August 20, 1998, August 9,
1999, January 3, 2000, October 1, 2000, and April 22, 2002
(collectively, the “Agreement”) 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 as set forth below.

 

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 October 1,
2003:

 

1.         Section 4 (i) of
the Employment Agreement is amended such that the annual salary of $400,000 is
deleted and the annual salary of $800,000 is inserted in lieu thereof:

 

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 Eleventh
Amendment as of the date first above written.

 

 

	
  COMPANY

  	
   

  	
   

  
	
  KENNEDY-WILSON, Inc. a Delaware
  corporation

  	
   

  	
  Kent
  Y. Mouton

  
	
  /s/
  James C. Ozello, Acting Secretary

  	
   

  	
  /s/
  Chairman, Compensation

  
	
  Compensation
  Committee

  	
   

  	
  Committee

  
	
   

  	
   

  	
   

  
	
  EMPLOYEE

  	
   

  	
   

  
	
  /s/
  William J. McMorrow, Chairman

  	
   

  	
  /s/ Freeman Lyle

  
	
   

  	
   

  	
  Senior
  Managing Director, and Chief Financial OfficeExhibit 10.43

 

TWELFTH AMENDMENT TO EMPLOYMENT AGREEMENT

 

This Twelfth Amendment to
Employment Agreement (the “Twelfth Amendment”) is made and entered into as of April 21,
2004, by and between KENNEDY-WILSON, INC., a Delaware corporation (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, January 1, 1996, May 19, 1997, August 20, 1998, August 9,
1999, January 3, 2000, October 1, 2000, April 22, 2002 and October 1,
2003 (collectively, the “Agreement”) 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 as set forth below.

 

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 April 21,
2004:

 

1.          Section 2 (a) is
amended such that the Term of the Agreement is extended until December 31,
2014. Therefore, the termination date of “December 31, 2009” is deleted
and the termination date of “December 31, 2014” is inserted in lieu
thereof.

 

2.          Section 4 (v.) of the
Employment Agreement is added as follows:

 

Section 4
(v.)

 

a.                Entrance Fee and monthly
dues (commencing May 1, 2004) for membership in Tokyo Golf Club, Japan;

Note:     If
Tokyo Golf Club will not allow membership fee and monthly dues to be paid
directly by Company, then Company will reimburse Employee on a tax equalized
and tax neutral basis.

 

b.               Admission Fee and monthly
dues for membership in LA Country Club, Los Angeles;

Note:     If
LA Country Club will not allow membership fee and monthly dues to be paid
directly by Company, then Company will reimburse Employee on a tax equalized
and tax neutral basis.

 

 

c.                Annual premium
payments of $250,000 each to be made January 2005 and January 2006
for variable annuity life insurance policy underwritten by Mass Mutual.
Reimbursement to Employee of $250,000 premium payment Employee made January 2004.

 

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 Eleventh Amendment as of the date first above written.

 

 

	
  COMPANY

  	
   

  	
   

  
	
  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 OfficerExhibit 10.44

 

THIRTEENTH AMENDMENT TO EMPLOYMENT AGREEMENT

 

This Thirteenth Amendment to
Employment Agreement (the “Thirteenth Amendment”) is made and entered into as
of January 1, 2008, by and between KENNEDY-WILSON, INC., a Delaware
corporation (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, January 1, 1996, May 19, 1997, August 20, 1998, August 9,
1999, January 3, 2000, October 1, 2000, April 22, 2002, October 1,
2003, and April 21, 2004 (collectively, the “Agreement”) 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 as set forth below.

 

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 January 1,
2008:

 

1.          Section 4 (i) of
the Employment Agreement is amended such that the annual salary of $800,000 is
deleted and the annual salary of $950,000 is inserted in lieu thereof:

 

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 Thirteenth Amendment as of the date first above
written.

 

	
  COMPANY

  	
   

  	
   

  
	
  KENNEDY-WILSON, Inc. a Delaware
  corporation

  	
   

  	
  /s/
  Kent Y. Mouton

  
	
  /s/
  James C. Ozello, Acting Secretary

  	
   

  	
  Chairman,
  Compensation

  
	
  Compensation
  Committee

  	
   

  	
  Committee

  
	
   

  	
   

  	
   

  
	
  EMPLOYEE

  	
   

  	
   

  
	
  /s/ William J. McMorrow,
  ChairmanExhibit 10.45

 

FOURTEENTH AMENDMENT TO
EMPLOYMENT AGREEMENT

 

This Fourteenth Amendment
to Employment Agreement (the “Fourteenth Amendment”) is made and entered into
as of February 1, 2009, by and between KENNEDY-WILSON, INC., a Delaware
corporation (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, January 1, 1996, May 19, 1997, August 20,
1998, August 9, 1999, January 3, 2000, October 1, 2000, April 22,
2002, October 1, 2003, April 21, 2004, and January 1, 2008
(collectively, the “Agreement”) 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 as set forth below.

 

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 February 1, 2009:

 

1.                                         Section 2 (a) is
amended such that the Term of the Agreement is extended until December 31,
2019. Therefore, the termination date of “December 31, 2014” is deleted
and the termination date of “December 31, 2019” is inserted in lieu
thereof.

 

2.                                         Section 2(b) is
deleted in its entirety and the following is substituted in its place:

 

(b)                                  Change in
Control. In the event of a “Change in Control” as defined below the Company
shall make a one-time payment to Employee upon such Change in Control equal to
two (2) times the Employee’s “annual compensation”. The annual
compensation would be the arithmetic average of all compensation paid to
Employee in each of the most recent three (3) year periods and would
include salary and bonus as reported in the Proxy Statement or the Company’s
books, as applicable.

 

“Change
in Control” shall mean the first to occur of any of the following events:

 

(i)                                      Any “person”
(as that term is used in Section 13 and 14 (d) (2) of the
Securities Exchange Act of 1934 (“Exchange Act”) becomes the beneficial owner
(as that term is used in Section 13 (d) of the Exchange Act),
directly or indirectly, of 50% or more of the Company’s capital stock entitled
to vote in the election of Directors;

 

 

(ii) If at anytime after the date of this
Agreement, individuals who constitute the incumbent Board of Directors cease
for any reason to constitute at least a majority of the Board. For this purpose,
any person who becomes a member of the Board after the date of this Agreement
and who is approved by the vote of at least a majority of the persons who
constitute the incumbent Board shall be considered a member of the incumbent
Board, but any person whose election as a director occurs as the result of an
actual or threatened election contest, or actual or threatened solicitation of
proxies or consents by or on behalf of any person or entity shall not be
considered a member of the incumbent Board;

 

(iii) The shareholders of the Company approve any consolidation or
merger of the Company, other than a consolidation or merger of the Company in
which the holders of the common stock of the Company immediately prior to the
consolidation or merger hold more than 50% of the common stock of the surviving
corporation immediately after the consolidation or merger;

 

(iv) The shareholders of the Company approve any plan or proposal
for the liquidation or dissolution of the Company; or

 

(v)                                   The
shareholders of the Company approve the sale or transfer of all or
substantially all of the assets of the Company to parties that are not within a
“controlled group of corporations” (as defined in Code Section 1563) in
which the Company is a member.”

 

3.                                          Section g
is deleted in its entirety and the following is substituted in its place:

 

9.                                      Termination.

 

(a)                                    Either Company
or Employee may terminate this Agreement at any time during the Term, in the
event of a material breach of this Agreement by Employee or Company which is not
corrected within thirty (30) days after the written notice of the breach is
delivered to the other party. The written notice from Company to Employee shall
include a reasonably detailed description of Employee’s acts or omissions,
which constitute cause for termination. The term “cause” shall mean: (i) the
breach of any material provision of this Agreement; (ii) persistent
misconduct, neglect or negligence in the performance of Employee’s duties and
obligations as set forth in this Agreement; (iii) disloyal, dishonest or
illegal conduct or moral turpitude of Employee; (iv) such material
carelessness or inefficiency in the performance of his’ duties that Employee,
in the reasonable discretion of Company, is deemed unfit to continue in the
service of Company; and (v) the material and persistent failure of
Employee to comply with the policies or directives of Company and/or failure to
take direction from Company management.

 

(b) Employee’s employment with Company shall cease upon the date
of his death or physical or mental disability to the extent that Employee
becomes disabled for more than sixty (60) consecutive days or ninety (90) days
in the aggregate in any 12-month period to perform his duties on a full-time
basis. Upon termination for death or physical or mental disability, Company
shall continue to pay Employee the salary and other benefits described in Section 4
for the remainder of the Term of the Agreement, together with such other

 

 

compensation as Employee may be entitled to under
the provisions of Section 6, Benefits (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).

 

(c)                                    If the term of
the Agreement is terminated by Company for cause, then Company shall continue
to pay Employee the salary and other benefits described in Section 4 for
the remainder of the Term of the Agreement, together with such other
compensation as Employee may be entitled to under the provisions of Section 6,
Benefits (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).

 

(d)                                   If after a
Change in Control Company instructs Employee to work full-time or substantially
full-time at any location not acceptable to Employee (other than the Company’s
main headquarters) or eliminates or materially reduces his duties as CEO I
Chairman , then Employee may elect to deem such action(s) as a
constructive termination by Company in which case Employee’s employment shall
be deemed terminated, and Company shall continue to pay Employee the salary and
other benefits described in Section 4 of the Agreement and Section 2 (b) hereof
for the remainder of the Term of the Agreement, together with such other
compensation as Employee may be entitled to under the provisions of Section 6,
Benefits (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).

 

(e)                                    If Employee
terminates this Agreement without cause, then Employee shall be entitled to
receive only the compensation described in Section 4 above earned to the
date of termination. Company shall not pay Employee the salary and other
benefits which Employee would have been entitled to for the remainder of the
term of the Agreement under Sections 4 and Section 6 above, provided that
in the event Employee so resigns, Employee will receive a bonus for the year in
which he resigned in the ordinary course but prorated based on the number of
days the Employee was employed by the Company that year. In all other cases,
Employee, or his estate, will receive all salary and bonuses due herein and
remaining to be paid during the term hereof in the ordinary course.

 

3

 

(f) This Agreement may be terminated by Employee at any time,
provided such termination shall have the effect set forth as follows:

 

(i)                      Termination of
this Agreement pursuant to this Section 9 shall not relieve Employee of
his obligations to comply with Sections 7 and 8 hereof, which provisions shall
survive the termination of this Agreement. If and only if, Employee resigns due
to the Company’s material breach of this Agreement which is not corrected
within thirty (30) days after the Employee’s written notice of the breach to
the Company, then Employee shall be relieved of his obligations under Section 7
and 8 hereof.

 

3.                                   Section 10
(a) is amended such that the addresses of notices to be delivered to the
parties is changed to:

 

If to the Company, to:                            Kennedy Wilson

9601 Wilshire Boulevard, Suite 200

Beverly Hills, CA 90210

Attention:  
President

 

If to Employee, to:                                  William 3. McMorrow

Kennedy Wilson

9601 Wilshire Boulevard, Suite 200

Beverly Hills, CA 90210

 

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 Fourteenth
Amendment as of the date first above written.

 

	
  COMPANY

  	
   

  	
   

  
	
  KENNEDY-WILSON, Inc. a Delaware
  corporation

  	
   

  	
   

  
	
  /s/
  James C. Ozello, Acting Secretary

  	
   

  	
  /s/
  Kent Y. Mouton

  
	
  Compensation
  Committee

  	
   

  	
  Chairman,
  Compensation

  
	
   

  	
   

  	
  Committee

  
	
   

  	
   

  	
   

  
	
  EMPLOYEE

  	
   

  	
   

  
	
  /s/ William J. McMorrow,
  Chairman

  	
   

  	
   

  

 

4

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