Document:

Exhibit
10.70

 

AMENDMENT
TO EMPLOYMENT AGREEMENT

 

This Amendment to Employment Agreement (the “Amendment”) is-made and
entered into as of January 1, 2001 by and between~ Kennedy-Wilson Properties,
Ltd., an Illinois corporation (“The Company”) a wholly owned subsidiary of
Kennedy-Wilson Inc. a Delaware corporation, haying an address of 9601 Wilshire
Boulevard, Suite 220, Beverly Hills, California 90210, (“Company”), and James
Rosten, an individual (“Employee”).

 

RECITALS

 

WHEREAS, Company and Employee have entered into that certain Employment
Agreement dated as of January 4, 1999, 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 Services Provided to the
Company, Term, and Bonus.

 

AMENDMENT TO AGREEMENT

 

NOW, THEREFORE, for good and valuable
consideration the receipt and sufficiently of which are hereby acknowledged,
the parties hereby amend the Agreement, effective as of January 1, 2001. as
follows:

 

1.                                       Paragraph one
of Section 2. Services provided to the Company is deleted in its
entirety and the following paragraph is added in lieu thereof:

 

2.                                    Services
Provided to the Company. Subject to the policy guidelines and
directives of the Company which are provided to him by Company from time to
time during the term of this Agreement, Employee shall serve as President of
and be responsible for the operation of Kennedy-Wilson Proper-ties, Ltd. and to
advance the business and welfare of Kennedy-Wilson Properties, Ltd. as
determined by the Company from time to time. Employee shall have no authority
to bind or obligate Company. to the purchase or sale of any real property, or
to make any other financial commitment, including without limitation the
borrowing of any monies on a secured or unsecured basis, without obtaining the
prior written authorization of Company as to the specific transaction. Employee’s
duties may not be materially changed by the Company without Employee’ s prior
notice and also shall include such other matters or responsibilities as Company
and Employee may jointly agree upon from time to time during the term of this
Agreement.

 

2.                                       The term of
this Agreement is extended to December 31, 2002. Therefore, Section 3 of the
Agreement is deleted in its entirety and the following is added in lieu
thereof:

 

3.   Term
of Employment. Employee shall be employed by the Company pursuant to this
Agreement for a term (the “Term”) beginning on January 1, 2001, and continuing
through to, and terminating at the close of business on December 31, 2002
(unless earlier terminated pursuant to Section 11).

 

3.                               Section 5 (b) Bonus,
is deleted in its entirety and the following is inserted in lieu thereof:

 

5  (b) Bonus. “Employee
shall be eligible as of December 31 of each calendar year to receive a bonus
(the “Bonus”) which shall be calculated and paid as follows:

 

 

	
   

  	
   

  	
  Net Profit Bonus Revenue

  	
   

  	
  Bonus

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  0-

  	
   

  	
  $3MM

  	
   

  	
  -0-

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  $3MM

  	
   

  	
  -$7MM

  	
   

  	
  10%

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  $7MM

  	
   

  	
  - $9MM

  	
   

  	
  12.5%

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  $9MM

  	
   

  	
  - Above

  	
   

  	
  15%

  	
   

  	
   

  	
   

  

 

“Net Profits” shall mean the gross revenue realized during the
applicable fiscal year less costs and expenses which include without limitation
Employee’s salary and benefits, the salaries and benefits of employees of
Kennedy Wilson Properties, Ltd., and other expenses properly charged to such
gross revenue according to generally acceptable accounting principles as
determined in the commercially reasonable judgment of Company’s Chief Financial
Officer, but excluding depreciation & amortization, interest expense, cost
of capital and corporate overhead allocation charges.

 

(c) Stub Year Bonus: Employee shall be eligible for a bonus for
the period of September 1, 2000, through December 31, 2000 associated with
Employee’s Executive Managing Director responsibilities. The bonus shall be
discretionary and shall be determined at the sole and absolute discretion of
the Compensation Committee. The Compensation Committee shall be composed of
William McMorrow, Barry Schlesinger and James Ozello. Said bonus shall be paid
in January 2001 and shall be charged to Corporate and not as a charge against
Employee’s Accounting Unit.

 

Employee acknowledges that
Company has not provided Employee with any projections or estimates of Bonus
Pool Revenue that might be received by Employee under the terms of this
Agreement as an inducement to Employee to accept employment with Company.

 

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 Amendment as of
the date first written above.

 

	
  THE COMPANY:

  	
   

  	
  EMPLOYEE:

  
	
  KENNEDY-WILSON
  INTERNATIONAL

  	
   

  	
  /s/
  Jim Rosten

  
	
  a
  California corporation

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/
  William McMorrow

  	
   

  	
   

  
	
  Title:   Chairman/ CEOExhibit 10.71

 

SECOND AMENDMENT TO EMPLOYMENT AGREEMENT

 

This Second Amendment to Employment Agreement (the “Second Amendment”)
is made and entered into as of 3-15-01 2001 by and between Kennedy-Wilson
Properties, Ltd., an Illinois corporation (“The Company”) a wholly owned
subsidiary of Kennedy-Wilson Inc. a Delaware corporation, having an address of
9601 Wilshire Boulevard, Suite 220, Beverly Hills, California 90210, (“Company”),
and James Rosten, an individual (“Employee”).

 

RECITALS

 

WHEREAS. Company and Employee have entered into that certain Employment
Agreement dated as of January 4, 1999, and amended January 1, 2001,
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 Services Provided to the
Company, Term, and Bonus.

 

AMENDMENT
TO AGREEMENT

 

NOW THEREFORE, for. good and valuable consideration
the receipt and sufficiently of which are hereby acknowledged, the parties
hereby amend the Agreement, effective as of March 15, 2001 as follows:

 

1.              Section 5 (a) of
the Agreement is amended such that, effective March 15, 2001, the Company
shall pay Employee a salary equal to $11,538.46 per pay period ($300,000.00
annualized) payable in equal installments every two weeks (based on 26 pay
periods per year) and subject to such deductions and withholdings as Company
may from time to time be required to make pursuant to applicable law,
governmental regulation or

 

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

 

 

	
  THE COMPANY:

  	
   

  	
  EMPLOYEE:

  
	
  KENNEDY-WILSON
  INTERNATIONAL

  	
   

  	
  /s/
  Jim Rosten

  
	
  a
  California corporation

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/
  William McMorrow

  	
   

  	
   

  
	
  Title:     Chairman/
  CEOExhibit 10.72

 

THIRD
AMENDMENT TO EMPLOYMENT AGREEMENT

 

This
Third Amendment to Employment Agreement (the “Third Amendment”) is made and
entered into as of 1-03-03 by and between Kennedy-Wilson Properties, Ltd., an
Illinois corporation (“The Company”) a wholly owned subsidiary of
Kennedy-Wilson Inc. a Delaware corporation, having an address of 9601 Wilshire
Boulevard, Suite 220, Beverly Hills, California 90210, (“Company”), and
James Rosten, an individual (“Employee”).

 

RECITALS

 

WHEREAS,
Company and Employee have entered into that certain Employment Agreement dated
as of January 4, 1999, and amended January 1, 2001, and March 15,
2001 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, and Bonus.

 

AMENDMENT TO AGREEMENT

 

NOW,
THEREFORE, for good and valuable consideration the receipt and sufficiently of
which are hereby acknowledged, the parties hereby amend the Agreement,
effective as of January 1, 2003 as follows:

 

1.                   Section 3 Term of
Employment is amended such that the term of this Agreement is extended to December 31,
2003. Therefore, Section 3 of the Agreement is amended such that the termination
date of December 31, 2002 is deleted and the termination date of “December 31,
2003” is inserted in lieu thereof.

 

2.                   Section 5 (b) Bonus
is deleted in its entirety and the following is added in lieu thereof:

 

(b)        Bonus. Employee
shall be eligible as of December 31 of each calendar year to receive a
bonus (the “Bonus”) based on the net income of Kennedy Wilson Properties, LTD,
(“Division”) which shall be calculated and paid as follows:

 

	
   

  	
  Net Income

  	
   

  	
  Bonus

  	
   

  	
   

  
	
   

  	
  0 -MM

  	
   

  	
  10

  	
  %

  	
   

  
	
   

  	
  51MM -Above

  	
   

  	
  15

  	
  %

  	
   

  

 

Net income shall be equal to (i) the gross revenue credited to the
Division, less (ii) cost and expenses incurred by the Division including
without limitation office rent and expenses, salaries, bonuses and benefits of
all employees and consultants who provide services for the Division, marketing
costs, write-offs, depreciation and amortization, interest expense, a charge
for general corporate overhead, and a cost of capital factor equal to twelve
percent (12%) per annum of the amount of any indebtedness incurred or extended
by Company for the operation of the Division and two percent (2%) per annum of
the amount of any indebtedness which is guarantied by Company for the benefit
of the Division, and other expenses properly charged to such gross revenue according
to generally acceptable accounting principles as determined in the commercially
reasonable judgment of Company’s Chief Financial Officer.

 

 

3.              Section 5(d) is
added as follows:

 

(d)         Incentive Bonus and Promote - KW Property Fund II
(Fund II) and KW Private Equity Partnership I (Equity I). Employee
shall participate in the origination, marketing, and management of Fund II and
Equity I.

 

(i)            Promote II. Net profits
generated upon the ultimate sale of any property acquired by Fund II and Equity
I during the term of Employee’s employment are defined as the “Promote-Il”. Net
profit shall mean the difference between the net sales price of a given
property and the original acquisition price of the property plus any
out-of-pocket investment in the applicable property of the Fund, less cost of
capital and any other operating expenses with respect to such property. As
Promote-Il Properties are sold and the Promote-Il is recorded and funded, a
disbursement will be made to Employee equal to his participation in two thirds
of the funded Promote-Il. The remaining one third will be held in reserve (“Promote-Il
a Reserve” for Fund II properties and “Promote-Il b Reserve” for Equity I
properties) to offset potential Fund II or Equity I property sale losses.
Promote-Il a Reserve is only to be used for losses associated with Fund II
properties and Promote-Il b Reserve is only to be used for losses associated
with Equity I properties. When the last of the Promote-Il properties in each
reserve is sold, any funds remaining in the appropriate Promote-Il Reserve, II
a or II b, will be paid to the Employee within thirty (30) days of the
properties sale. To the extent possible, all sums paid under this Promote-Il Section shall
be treated for tax purposes in the same manner as distributions made to
Kennedy-Wilson Property Services, Inc., General Partner. Promote-II
multiplied by 20% is defined as the “Promote-II Bonus Pool”. The Employee’s
portion of the Promote-Il Bonus Pool is equal to 1/3 of the first 50% of the
Promote-Il Bonus Pool and Employee shall be eligible for a discretionary bonus
of up to 80% of the second 50% of the Promote-II Bonus Pool. The discretionary
bonus will be at the sole and absolute discretion of the Fund Compensation
Committee. The Fund Compensation Committee shall be comprised of William
McMorrow, Kent Mouton, Freeman Lyle, Barry Schlesinger, James Rosten, Philip
Capron, and James Ozello.

 

(ii)          Bonus Pool II. Net profits
generated from the operation of Fund II and Equity I multiplied by 20% is
defined as Bonus Pool II. Bonus Pool II is further defined to be the total fee
revenues Kennedy Wilson receives from Fund II and Equity I less the total
expenses incurred in generating those fees, multiplied by 20%. The Employee’s
portion of Bonus Pool II is equal to 1/3 of the first 50% of Bonus Pool II and
Employee shall be eligible for a discretionary bonus of up to 80% of the second
50% of the Bonus Pool. The discretionary bonus will be at the sole and absolute
discretion of the Fund Compensation Committee. The Fund Compensation Committee
shall be comprised of William McMorrow, Kent Mouton, Freeman Lyle, Barry
Schlesinger, James Rosten, Philip Capron, and James Ozello.

 

 

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

 

 

	
  THE
  COMPANY:

  	
   

  	
  EMPLOYEE:

  
	
  KENNEDY-WILSON
  INTERNATIONAL

  	
   

  	
  /s/ Jim Rosten

  
	
  a California corporation

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ William McMorrow

  	
   

  	
   

  
	
  Title:      Chairman/
  CEO

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