Document:

Exhibit 10.1

 

AMENDMENT NO. 1 TO

AGREEMENT AND PLAN OF MERGER

 

THIS
AMENDMENT NO. 1 (this “Amendment”)
dated as of October 22, 2009, to that certain AGREEMENT AND PLAN OF MERGER
dated as of September 8, 2009 (the “Original
Agreement”), by and among PROSPECT ACQUISTION CORP., a company
incorporated under the laws of Delaware (“Prospect”),
KW MERGER SUB CORP., a company incorporated under the laws of Delaware and a
wholly owned subsidiary of Prospect (“Merger
Sub”) and KENNEDY-WILSON, INC., a company incorporated under
the laws of Delaware (“KW”).

 

RECITALS

 

WHEREAS,
the Parties are parties to the Original Agreement; and

 

WHEREAS,
the Parties wish to amend the Original Agreement pursuant to and in accordance
with Section 11.2 thereof as further set forth herein.

 

NOW,
THEREFORE, in consideration of the mutual promises contained herein and in the
Original Agreement, pursuant to and in accordance with Section 11.2 of the
Original Agreement, the Parties agree to amend the Original Agreement as
follows:

 

1.  Definitions.  All capitalized terms used herein without
definition shall have the meanings assigned to such terms in the Original
Agreement.

 

2.  Amendment to
Background Section.  The
fourth full paragraph of the Background section of the Original Agreement shall
be deleted in its entirety and replaced with the following:

 

“Concurrently
with the execution of this Agreement, Prospect, the Prospect Founders, De
Guardiola Advisors, Inc. (“DGA”), De Guardiola Holdings, Inc. (“DGH”) and KW are
entering into a letter agreement, of even date herewith, as may be amended
and/or restated from time to time hereafter (as so amended and/or restated, the
“Forfeiture Agreement”),
in the form attached hereto as Exhibit A, pursuant to which, subject to the terms
and conditions set forth therein (i) the Prospect Founders have agreed to
the forfeiture and cancellation of 4,750,000 shares of Prospect Common Stock
and (ii) Prospect has agreed to issue to DGH an aggregate of 250,000
shares of Prospect Common Stock upon the closing of the transaction
contemplated by this Agreement in satisfaction of an obligation of Prospect
under its engagement letter with DGA.”

 

3.  Replacement
of Section 6.8.  Section 6.8
of the Original Agreement shall be deleted in its entirety and replaced with
the following:

 

“Section 6.8
Management Incentive Plan.  Prior to Closing, Prospect shall adopt an
equity incentive plan (the “Management Incentive Plan”), for the issuance of up to
2,475,000 shares of Prospect Common Stock (the “Management Incentive Shares”) and,
effective at the Closing, Prospect shall grant awards under the Management
Incentive Plan for the aggregate number of Management Incentive Shares to key
employees of the Surviving Corporation in the amounts and upon terms and
conditions to be mutually agreed upon between Prospect and KW.

 

4.  Replacement
of Section 8.2(w).  Section 8.2(w) of
the Original Agreement shall be deleted in its entirety and replaced with the
following:

 

“(w)  Prospect Founder
Forfeited Shares.  The
Prospect Founders will have delivered certificates representing 4,750,000
shares of Prospect Common Stock duly endorsed in blank with executed blank
stock powers pursuant to the terms of the Forfeiture Agreement.”

 

5.  Full Force
and Effect.  Except as
expressly amended hereby, the Original Agreement shall continue in full force
and effect in accordance with the provisions thereof.

 

 

6.  Governing
Law.  This Amendment shall be
governed by and construed in accordance with the laws of the State of New York
regardless of the laws that might otherwise govern under applicable principles
of conflicts of laws thereof.

 

7.  Counterparts;
Facsimile Execution.  This
Amendment may be executed in one or more counterparts, all of which shall be
considered one and the same agreement and shall become effective when one or
more counterparts have been signed by each of the Parties and delivered to the
other Parties. Facsimile or electronic execution and delivery of this Amendment
is legal, valid and binding for all purposes.

 

8.  Headings.  All section titles and captions contained in
this Amendment are for convenience only and shall not be deemed a part of this
Amendment.

 

9.  Severability.  If any term or other provision of this
Amendment is invalid, illegal or incapable of being enforced by any rule or
Law, or public policy, all other conditions and provisions of this Amendment
shall nevertheless remain in full force and effect so long as the economic or
legal substance of the transactions contemplated hereby are not affected in any
manner materially adverse to any Party. Upon such determination that any term
or other provision is invalid, illegal or incapable of being enforced, the
Parties shall negotiate in good faith to modify this Amendment so as to effect
the original intent of the Parties as closely as possible in an acceptable
manner to the end that transactions contemplated by this Amendment are
fulfilled to the extent possible.

 

 

IN
WITNESS WHEREOF, the Parties hereto have caused this Amendment to be duly
executed by their respective authorized signatories as of the date first
indicated above.

 

	
   

  	
  PROSPECT
  ACQUISITION CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ DAVID A. MINELLA

  
	
   

  	
  Name: David A. Minella

  
	
   

  	
  Title: Chairman &
  CEO

  
	
   

  	
  Address: 9130 Galleria
  Court, Suite 318

  
	
   

  	
  Naples, FL 34109

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  With a copy to:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Bingham McCutchen LLP

  
	
   

  	
  399 Park Avenue

  
	
   

  	
  New York, NY 10022

  
	
   

  	
  Attention: Floyd I.
  Wittlin, Esq.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  KW MERGER
  SUB CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ DAVID A. MINELLA

  
	
   

  	
  Name: David A. Minella

  
	
   

  	
  Title:
  President & Secretary

  
	
   

  	
  Address: c/o Prospect
  Acquisition Corp.

  
	
   

  	
  9130 Galleria Court,
  Suite 318

  
	
   

  	
  Naples, FL 34104

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  KENNEDY-WILSON, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ WILLIAM J. MCMORROW

  
	
   

  	
  Name: William J. McMorrow

  
	
   

  	
  Title: Chief Executive
  Officer

  
	
   

  	
  Address: 9601 Wilshire
  Blvd.

  
	
   

  	
  Beverly Hills, CA 90210Exhibit 10.2

 

AMENDMENT NO. 2 TO

AGREEMENT AND PLAN OF MERGER

 

THIS AMENDMENT NO. 2 (this “Amendment”) dated
as of October 26, 2009, to that certain AGREEMENT AND PLAN OF MERGER dated
as of September 8, 2009 (the “Original Agreement”), as amended by
Amendment No. 1 dated as of October 22, 2009, in each case by and
among PROSPECT ACQUISTION CORP., a company incorporated under the laws of
Delaware (“Prospect”), KW MERGER SUB CORP., a company incorporated under
the laws of Delaware and a wholly owned subsidiary of Prospect (“Merger Sub”)
and KENNEDY-WILSON, INC., a company incorporated under the laws of Delaware (“KW”).

 

RECITALS

 

WHEREAS, the Parties are parties to the Original
Agreement, as amended; and

 

WHEREAS, the Parties wish to amend the Original
Agreement, as amended, pursuant to and in accordance with Section 11.2
thereof as further set forth herein.

 

NOW, THEREFORE, in consideration of the mutual
promises contained herein and in the Original Agreement, pursuant to and in
accordance with Section 11.2 of the Original Agreement, the Parties agree
to amend the Original Agreement, as amended, as follows:

 

1.             Definitions. 
All capitalized terms used herein without definition shall have the
meanings assigned to such terms in the Original Agreement.

 

2.             Amendment
to Definition of Prospect Warrant Agreement Amendment.  The definition of Prospect Warrant Agreement
Amendment in Annex A of the Original Agreement shall be deleted in its
entirety and replaced with the following:

 

“Prospect Warrant Agreement Amendment” means
an amendment to the Prospect Warrant Agreement substantially in the form
attached as Exhibit E that provides
that, simultaneously with the Closing: (i) each Sponsor Warrant (as
defined in the Prospect Warrant Agreement) will be converted into the Amended
Sponsor Warrant; and (ii) each Public Warrant (as defined in the Prospect
Warrant Agreement) will be converted into either (x) the Cash
Consideration or (y) the Amended Public Warrant, in each case as the
holder of Public Warrants shall have elected or be deemed to have elected;
provided that no more than 50% of the outstanding Public Warrants shall be
converted into the right to receive the Amended Public Warrant (the “Warrant
Limit”); and provided further that in the event that holders of in excess of
the Warrant Limit shall have elected to receive the Amended Public Warrant, the
holders of the Public Warrants who elect to receive the Amended

 

 

Public Warrant and the holders of the Sponsor Warrants will receive the
Cash Consideration for a portion of their Warrants, as further set forth in and
in accordance with Exhibit E hereto.

 

3.             Full
Force and Effect.  Except as
expressly amended hereby, the Original Agreement shall continue in full force
and effect in accordance with the provisions thereof.

 

4.             Governing
Law.  This Amendment shall be
governed by and construed in accordance with the laws of the State of New York
regardless of the laws that might otherwise govern under applicable principles
of conflicts of laws thereof.

 

5.             Counterparts;
Facsimile Execution.  This Amendment
may be executed in one or more counterparts, all of which shall be considered
one and the same agreement and shall become effective when one or more
counterparts have been signed by each of the Parties and delivered to the other
Parties.  Facsimile or electronic
execution and delivery of this Amendment is legal, valid and binding for all
purposes.

 

6.             Headings. 
All section titles and captions contained in this Amendment are for
convenience only and shall not be deemed a part of this Amendment.

 

7.             Severability.  If any term or other provision of this
Amendment is invalid, illegal or incapable of being enforced by any rule or
Law, or public policy, all other conditions and provisions of this Amendment
shall nevertheless remain in full force and effect so long as the economic or
legal substance of the transactions contemplated hereby are not affected in any
manner materially adverse to any Party. 
Upon such determination that any term or other provision is invalid,
illegal or incapable of being enforced, the Parties shall negotiate in good
faith to modify this Amendment so as to effect the original intent of the
Parties as closely as possible in an acceptable manner to the end that
transactions contemplated by this Amendment are fulfilled to the extent
possible.

 

 

IN WITNESS WHEREOF, the Parties
hereto have caused this Amendment to be duly executed by their respective
authorized signatories as of the date first indicated above.

 

 

	
   

  	
  PROSPECT
  ACQUISITION CORP.

  
	
   

  	
  By:

  	
  /s/ David A.
  Minella

  
	
   

  	
  Name: David A.
  Minella

  
	
   

  	
  Title:
  Chairman & CEO

  
	
   

  	
  Address: 9130
  Galleria Court, Suite 318

  
	
   

  	
  Naples, FL 34109

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  With a copy to:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Bingham
  McCutchen LLP

  
	
   

  	
  399 Park Avenue

  
	
   

  	
  New York, NY
  10022

  
	
   

  	
  Attention: Floyd
  I. Wittlin, Esq.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  KW MERGER
  SUB CORP.

  
	
   

  	
  By:

  	
  /s/ David A.
  Minella

  
	
   

  	
  Name: David A.
  Minella

  
	
   

  	
  Title: President
  and Secretary

  
	
   

  	
  Address: c/o
  Prospect Acquisition Corp.

  
	
   

  	
  9130 Galleria
  Court, Suite 318

  
	
   

  	
  Naples, FL 34109

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  KENNEDY-WILSON,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ William J.
  McMorrow

  
	
   

  	
  Name: William J.
  McMorrow

  
	
   

  	
  Title: Chief
  Executive Officer

  
	
   

  	
  Address: 9601
  Wilshire Blvd.

  
	
   

  	
  Beverly Hills, CA 90210

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00164-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00164-of-00352.parquet"}]]