Document:

Exhibit
10.22

 

CONFIDENTIAL

 

September 4,
2009

 

David
A. Minella

Chairman &
CEO

Prospect
Acquisition Corp.

9130
Galleria Court, Suite 318

Naples,
FL  34109

 

Dear
Mr. Minella:

 

We are pleased to confirm the arrangements
under which DE GUARDIOLA ADVISORS, INC. (“DGA”) is engaged by PROSPECT
ACQUISITION CORP. (the “Company”) as its financial advisor in connection with a
Transaction (defined below) with the Target (defined below).

 

As
used in this agreement, the term “Target” shall refer to Kennedy Wilson, Inc.

 

During the term of our engagement, DGA will
provide you with customary financial advice and assistance in connection with
this Transaction, including performing financial analyses and assisting you in
negotiating the financial and contractual aspects of a Transaction.  This engagement, however, does not include
the rendering of an opinion as to the fairness of the consideration to be paid
to the Target in a Transaction, nor does it include the solicitation or recommendation
to purchase any securities of the Company or the Target.

 

DGA’s cash fee for this Transaction will be
$1,500,000.  In addition, the Company
will issue to DGA 375,000 shares, which will be substantially similar to the
existing Founders’ Shares (as defined in the Company’s offering documents),
which together with the cash fee, represent the “Transaction Fee” that will be
payable by the Company only upon the closing of the transaction.  The 375,000 Founders’ Shares included as part
of the Transaction Fee will be subject to adjustment as described in the Letter
of Intent dated July 12, 2009 and confirmed in either the forthcoming
definitive agreements between the Company and the Target or a separate letter
agreement.

 

 

As used in this agreement, the term “Transaction”
shall mean any merger, reverse merger, acquisition, or other business
combination involving the Target.

 

The Company also agrees to
reimburse DGA periodically for its reasonable out-of-pocket expenses, including
all travel and other out-of-pocket expenses and fees and disbursements.  Notwithstanding the previous sentence, unless
otherwise agreed, the Company shall not be required to reimburse DGA for any
fees and disbursements to third party professionals unless the Company shall
have consented in writing to DGA retaining them.  This paragraph shall not apply to any expenses
incurred pursuant to Annex A hereof.

 

The
Company recognizes and confirms that DGA, in performing the service
contemplated under this agreement, will be relying on publicly available
information and on information furnished by the Company and/or the Target
without independent verification, that DGA will not assume responsibility for
the accuracy and completeness of such information, and that DGA will not under
this agreement undertake to make an independent appraisal or valuation of any
of the assets of the Target.

 

The
Company’s interest in a Transaction, the subject matter of this agreement and
all confidential information and data furnished to DGA by or at the request of
the Company, whether oral or written, will be maintained in confidence by DGA
and not disclosed to any third party, except as provided herein, without the
Company’s prior written consent, so long as such information or data remains
confidential, unless required by applicable law or legal process.  At the written request of the Company, DGA
will destroy all confidential information of the Company in the event this
agreement terminates.

 

In
connection with an engagement such as this, it is DGA’s policy to receive
indemnification pursuant to the provisions set forth in Annex A.  The Company agrees to the provisions with
respect to our indemnity and other matters set forth in Annex A, which is
incorporated by reference into this letter.

 

DGA
acknowledges that, as contemplated by the Company’s Prospectus dated November 14,
2007, the Company established a trust account for the benefit of its public
stockholders and that the Company has agreed with its public stockholders to
obtain a waiver from all third party vendors and prospective target businesses
waiving any and all right, title, interest or claim of any kind in or to any
monies in the Trust Account.  DGA agrees
to execute the waiver set forth in Annex B on the date hereof.

 

2

 

The
Company also recognizes and acknowledges that DGA will be providing advisory
services and assistance to both the Company and the Target in connection with
this transaction.

 

Any
written or oral opinion or advice provided by DGA in connection with our
engagement is exclusively for the information of the Board of Directors and
senior management of the Company and does not constitute a recommendation to
any shareholder of the Company concerning action that such shareholder might or
should take in connection with a Transaction. 
Such opinions or advice may not be disclosed to any third party or
circulated or referred to publicly without our prior written consent.  DGA may, at our own expense, place announcements
or advertisements in financial newspapers, journals and marketing materials
describing our services hereunder.

 

The
Company acknowledges that it is not relying on the advice of DGA for tax, legal
or accounting matters, it is seeking and will rely on the advice of its own
professionals and advisors for such matters and it will make an independent
analysis and decision regarding any Transaction based upon such advice.

 

The
initial term of this agreement shall run six (6) months from the execution
of this agreement. The services of DGA may be terminated at any time with or without
cause effective upon receipt of written notice to that effect.  From and after the date a termination notice
is delivered to DGA hereunder, DGA shall render no additional service to the
Company hereunder, except as otherwise agreed in writing by DGA and the
Company, provided that in all events DGA’s obligation to keep certain
information confidential will survive any termination.  DGA will be entitled to the Transaction Fee
set forth above in the event that at any time prior to the expiration of Eighteen
(18) months after such termination a Transaction with the Target is consummated
by the Company.

 

This
agreement may not be modified, amended or supplemented except by written
agreement executed by both parties hereto. 
This agreement amends and supersedes all prior agreements of the parties
with respect to the subject matter herein, and in the event of any conflict or
ambiguity between the terms of any such prior agreement and this agreement, the
terms of this agreement shall control.

 

The Company agrees to cause
any affiliate, including a newly formed affiliate, which may become a party to
a Transaction, to execute appropriate documentation binding it to the terms of
this agreement.

 

3

 

This
agreement shall be governed by and construed in accordance with the laws of the
State of New York without regard to the conflict of laws provisions thereof.

 

Please
confirm that the foregoing is in accordance with your understanding by signing
and returning to us the enclosed copy of this letter, which shall become a
binding agreement upon our receipt.  We
are delighted to accept this engagement and look forward to working with you on
this assignment.

 

4

 

	
  Very
  truly yours,

  	
   

  
	
  DE
  GUARDIOLA ADVISORS, INC.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  Henry Hardaway

  	
   

  
	
   

  	
   

  
	
  Title:
  Vice-President

  	
   

  
	
   

  	
   

  
	
  Date:
  September 4, 2009

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Agreed
  and Accepted:

  	
   

  
	
  PROSPECT
  ACQUISITION CORP.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  James J. Cahill

  	
   

  
	
   

  	
   

  
	
  Title:
  Chief Financial Officer

  	
   

  
	
   

  	
   

  
	
  Date:
  September 4, 2009

  	
   

  

 

5

 

ANNEX A

 

In the event that DGA becomes involved in any capacity in any pending
or threatened claim or any action, proceeding or investigation brought by or
against any person in connection with or as a result of our engagement pursuant
to this letter, the Company periodically will reimburse DGA for its reasonable
legal and other costs and expenses (including the costs of any investigation
and preparation) incurred in connection therewith.  The Company also will indemnify and hold DGA
harmless against any and all losses, claims, damages or liabilities to any such
person in connection with or as a result of our engagement pursuant to this
letter.  If for any reason (other than by
reason of the waiver set forth in Annex B to this letter) the foregoing
indemnification is unavailable to DGA or insufficient to hold it harmless, then
the Company shall contribute to the amount paid or payable by DGA in respect of
such losses, claims, damages or liabilities in such proportion as is
appropriate to reflect the relative benefits received by the Company on the one
hand and DGA on the other hand in the matters contemplated by this letter, and,
if applicable law does not permit allocation solely on the basis of benefits,
the relative fault of the Company and DGA with respect to such loss, claim,
damage or liability and any other relevant equitable considerations, subject to
the limitation that in any event the aggregate contributions of DGA (and all
other parties indemnified hereunder) will not exceed the amount of fees
actually received by DGA pursuant to this Agreement.  For purposes hereof, the relative benefits to
the Company and DGA of any Transaction consummated hereunder shall be deemed to
be in the same proportion that the total value paid or contemplated to be paid
by the Company and/or its affiliates bears to the fees paid to DGA in
connection with such Transaction.  The
reimbursement, indemnity and contribution obligations of the Company under this
paragraph shall be in addition to any liability which the Company may otherwise
have, and shall be binding upon and inure to the benefit of the successors and
assignsof the Company and DGA.  The
provisions of this Annex A shall not apply to the extent that any such losses,
claims, damages, liabilities, costs and expenses that arise out of the gross
negligence, willful misconduct or bad faith by DGA in performing the services
that are the subject of this letter.  The
Company also agrees that neither DGA nor any of its affiliates, partners,
directors, agents, employees or controlling persons shall have any liability to
the Company or any person asserting claims on behalf or in right of the Company
in connection with or as a result of our engagement pursuant to this letter
except to the extent that any losses, claims, damages or liabilities incurred
by the Company arise out of the gross negligence, willful misconduct or bad
faith by DGA in performing the services that are the subject of this letter.  The Company will not, without the prior
written consent of DGA, which consent shall not be unreasonably withheld or
delayed, settle any action or proceeding in connection with or resulting from
our engagement pursuant to this letter unless such settlement includes an
express, complete and unconditional release of DGA (and its affiliates,
partners, directors, agents, employees and controlling persons), signed by all
parties to such settlement, from all losses, claims, damages and liabilities
asserted in such action or proceeding and relating to our engagement pursuant
to this letter.  Notwithstanding anything
to the contrary herein, the Company will not be required to indemnify DGA for
any amount paid or payable by DGA in the settlement of any claim, action,
proceeding or investigation without the written consent of the Company, which
consent will not be unreasonably withheld or delayed.  The provisions of this Annex A shall survive
any termination or completion of the engagement provided by this letter, and
shall in all cases be subject to the provisions of the waiver set forth in
Annex B of this letter.

 

6

 

Annex B

 

De Guardiola Advisors

405 Park Avenue, Suite 1201

New York, NY

 

September 4, 2009

Prospect
Acquisition Corp.

9130
Galleria Court

Naples,
FL  34109

 

Ladies
and Gentlemen:

 

De Guardiola Advisors (“we”) understand that Prospect
Acquisition Corp. (the “Company”) is a recently organized blank-check
company formed for the purpose of acquiring (an “Initial Business Combination”)
one or more businesses or assets in the financial services industry.  We further understand that the Company’s sole
assets consist of the cash proceeds of the recent public offering (the “IPO”)
and private placements of its securities, and that substantially all of those
proceeds have been deposited in a trust account with a third party (the “Trust
Account”) for the benefit of the Company, certain of its stockholders and
the underwriters of its IPO.  The monies
in the Trust Account may be disbursed only (1) to the Company in limited
amounts from time to time (and in no event more than $2,750,000 in total) in
order to permit the Company to pay its operating expenses; (2) if the
Company completes an Initial Business Combination, to certain dissenting public
stockholders, to the underwriters in the amount of underwriting discounts and
commissions they earned in the IPO but whose payment they have deferred, and
then to the Company; and (3) if the Company fails to complete an Initial
Business Combination within the allotted time period and liquidates, subject to
the terms of the agreement governing the Trust Account, to the Company in
limited amounts to permit the Company to pay the costs and expenses of its
liquidation and dissolution, and then to the Company’s public stockholders (as
such term is defined in the agreement governing the Trust Account).

 

For and in consideration of the Company’s entry into
the Confidentiality Agreement between us and the Company dated as of the date
hereof, we hereby waive any right, title, interest or claim of any kind (any “Claim”)
we have or may have in the future in or to any monies in the Trust Account and
agree not to seek recourse against the Trust Account or any funds distributed
therefrom (except amounts released to the Company as described in clause (1) of
the preceding paragraph) as a result of, or arising out of, any Claims against
the Company in connection with contracts or agreements with the Company or in
connection with services performed for or products provided to the Company.

 

This letter shall be governed by and construed and
enforced in accordance with the laws of the State of New York.  We hereby irrevocably waive, to the fullest
extent permitted by applicable

 

7

 

law, any and all right to trial by jury in any legal
proceeding arising out of or relating to this letter or any Claim subject
hereto.

 

	
   

  	
  Yours
  very truly,

  
	
   

  	
   

  
	
   

  	
  DE
  GUARDIOLA ADVISORS

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By
  

  	
  /s/
  Henry Hardaway

  
	
   

  	
  Name:
  Henry Hardaway

  
	
   

  	
  Title: Vice President

  

 

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  Exhibit 10.23    
    

 LOCK-UP AGREEMENT  

        THIS LOCK-UP AGREEMENT (this "Lock-Up Agreement"), dated as of
                        , 2009, by and among Prospect Acquisition Corp., a Delaware corporation (the "Company") and
                                     (the
"Stockholder"). 

        WHEREAS, the Company was organized to serve as a vehicle to effect a merger, capital stock exchange, asset acquisition, stock purchase,
reorganization or other similar business combination with one or more operating business in the financial services industry ("Business Combination"); 

        WHEREAS, the Company consummated an initial public offering in November 2007 ("IPO") in connection with which it raised net proceeds of
approximately $247.0 million which were placed in a trust account pending the consummation of a Business Combination, or the dissolution and liquidation of the Company, in the event it is
unable to consummate a Business Combination by November 14, 2009; 

        WHEREAS, the Company expects to consummate a Business Combination with Kennedy-Wilson, Inc. (the "Acquisition") pursuant to certain
agreements. 

        WHEREAS, the Stockholder owns                      shares of the Company's common stock, of which the Company
desires that                      shares(1) (the "Three Month Shares") be locked up for three months and that
                    
shares(2) (the "One-Year Shares") be locked up for one year, and which the Stockholder has agreed that it will lock-up for such periods of time. 

        (1)   10%
of shares received as merger consideration. 

        (2)   90%
of shares received as merger consideration and 100% of Management Incentive Shares. 

 

        NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree
that, subject to consummation of the Business Combination: 

         Section 1.    (a)    The Stockholder may not offer, sell, contract to sell, pledge or grant any option to
purchase or otherwise dispose
of or offer to dispose of (collectively, a "Disposition") any of the Three-Month Shares for a period commencing on the date hereof and ending on
                        , 2010,
inclusive, or any of the One-Year Shares for a period commencing on the date hereof and ending on                         ,
2010, inclusive, without the prior written
consent of the Company; provided, however, that the Stockholder may transfer any Shares: (1) to any partner, shareholder or member of the Stockholder if, prior to such transfer, such partner,
shareholder or member agrees in writing to be bound by the restrictions set forth herein; (2) to any controlled affiliate of the Stockholder if, prior to such transfer, such affiliate agrees in
writing to be bound by the restrictions set forth herein, or (3) for estate planning purposes if, prior to such transfer, the person receiving such Shares agrees in writing to be bound by the
restrictions set forth herein. 

        (b)   For
the purpose of effectuating this Lock-Up Agreement, the Stockholder hereby consents to the Company issuing a stop transfer instruction to the transfer
agent in accordance with the terms of this Lock-Up Agreement. Any sale of Shares in violation of this Lock-Up Agreement by the Stockholder without the consent of the Company
shall constitute a material breach of this Lock-Up Agreement. 

        (c)   The
Stockholder acknowledges that its breach or impending violation of any of the provisions of this Lock-Up Agreement may cause irreparable damage to the
Company for which remedies at law would be inadequate. The Stockholder further acknowledges and agrees that the provisions set forth herein are essential terms and conditions of the
Lock-Up Agreement that the Company may seek to enforce in addition to any of its rights or remedies provided under any other agreement decree or order by any court of competent
jurisdiction enjoining such impending or actual violation of any of such provisions. Such decree or order, to the extent appropriate, shall specifically enforce the full performance of any such
provision by the Stockholders. This remedy shall be in addition to all other remedies available to the Company at law or equity. 

         Section 2.    This Lock-Up Agreement shall inure to the benefit of and be binding upon the Company and its successors and assigns,
and upon the Stockholder and his or her heirs, executors, administrators, legatees and legal representatives. 

        Section 3.    Should any part of this Lock-Up Agreement, for any reason whatsoever, be declared invalid, illegal, or incapable of
being enforced in whole or in part, such decision shall not affect the validity of any remaining portion, which remaining portion shall remain in full force and effect as if this Lock-Up
Agreement had been executed with the invalid portion thereof eliminated, and it is hereby declared the intention of the parties hereto that they would have executed the remaining portion of this
Lock-Up Agreement without including therein any portion which may for any reason be declared invalid. 

        Section 4.    This Lock-Up Agreement shall be construed and enforced in accordance with the laws of the State of New York applicable
to agreements made and to be performed in such State without application of the principles of conflicts of laws of such State. 

         Section 5.    This Lock-Up Agreement and all rights hereunder are personal to the parties and shall not be assignable, and any
purported assignment in violation thereof shall be null and void. 

        Section 6.    (a) All notices, requests, demands and other communications to any party hereunder shall be in writing and shall be
given to such
party at its address or telecopier number set forth on the 

2

 

signature
page hereto, or such other address or telecopier number as such party may hereinafter specify by notice to each other party hereto. 

        (b)   Each
notice, request or other communication shall be effective (i) if given by telecopy, when such telecopy is transmitted to the telecopy number specified herein
and a confirmation of the telecopy being sent is received or, (ii) if given by certified mail, 72 hours after such communication is deposited in the mails with first class and certified
postage prepaid, properly addressed or, (iii) if given by any other means, when delivered at the address specified on the signature page hereto. 

         Section 7.    The failure of either party to insist upon the strict performance of any of the terms, conditions and provisions of
this
Lock-Up Agreement shall not be construed as a waiver or relinquishment of future compliance therewith, and said terms, conditions and provisions shall remain in full force and effect. No
waiver of any term or any condition of this Lock-Up Agreement on the part of either party shall be effective for any purpose whatsoever unless such waiver is in writing and signed by such
party. 

3

 

        IN
WITNESS WHEREOF, the parties hereto have executed this Lock-Up Agreement as of the day and year first written above. 

				
	 	PROSPECT ACQUISITION CORP.
	
 	
 By:	
 	
  

  Name:

Title:
	
 	

Address:
	
 	

Telecopy Number:
	
 	
[Stockholder]
	
 	
 By:	
 	
  

  Name:

Title:
	
 	

Address:
	
 	

Telecopy Number:

4

QuickLinks

Exhibit 10.23

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