Document:

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                                                                  EXHIBIT 10.5.3

                              SEVENTH AMENDMENT TO

                              EMPLOYMENT AGREEMENT

        This Seventh Amendment to Employment Agreement (the "Seventh Amendment")
is made and entered into as of August 9, 1999, by and between KENNEDY-WILSON,
INC., a Delaware corporation, with its principal office located in Beverly
Hills, 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, January 1, 1996, May 19, 1997, August 20, 1998 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, Salary and Bonus
Plan.

                             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 August 9, 1999 as follows:

        1.      The Term of the Agreement is extended until December 31, 2000.
                Therefore, Section 2(a) of the Employment Agreement is amended
                such that the termination date of "December 31, 1999" is deleted
                and the termination date of "December 31, 2000" is inserted in
                lieu thereof.

        2.      Section 4(ii) the annual bonus is amended such that the
                existing bonus cap at $25MM for 1998 and $35MM for 1999 is
                deleted and the following bonus cap is inserted in lieu thereof:

                      2000 Bonus: 20% of profits of $3MM to $35MM

                Bonus calculations are to be based on Company profit; pre-tax,
                pre-bonus paid to all other employees, pre-reserves and
                pre-Company contributions to the Deferred Compensation Plan.

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        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 Seventh Amendment
as of the date first above written.

KENNEDY-WILSON, INC.                        ATTEST:
a Delaware corporation

/s/ JAMES C. OZELLO                         /s/ KENT Y. MOUTON
-----------------------------               ------------------------------------
James C. Ozello, Acting Secretary           Kent Y. Mouton
Compensation/Stock Option Committee         Chairman, Compensation/Stock
                                            Option Committee

ACCEPTED FOR THE
BOARD OF DIRECTORS

/s/ WILLIAM J. MCMORROW                     /s/ FREEMAN LYLE
-----------------------------               ------------------------------------
William J. McMorrow, Chairman               Freeman Lyle
                                            Executive Vice President and
                                            Chief Financial Office<PAGE>   1

                                                                  EXHIBIT 10.5.4

                               EIGHTH AMENDMENT TO

                              EMPLOYMENT AGREEMENT

        This Eighth Amendment to Employment Agreement (the "Eighth Amendment")
is made and entered into as of January 3, 2000, by and between KENNEDY-WILSON,
INC., a Delaware corporation, with its principal office located in Beverly
Hills, 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, January 1, 1996, May 19, 1997, August 20, 1998 and August
9, 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 Term, Salary and Bonus
Plan.

                             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, 2000 as follows:

        1.      The Term of the Agreement is extended until December 31, 2002.
                Therefore, Section 2(a) of the Employment Agreement is amended
                such that the termination date of "December 31, 2000" is deleted
                and the termination date of "December 31, 2002" is inserted in
                lieu thereof.

        2.      Section 4(i) of the Employment Agreement shall be amended such
                that the annual salary of "$300,000. plus an annual salary
                advance amount of $100,000. payable against bonus earned " is
                deleted and the annual salary of "$400,000." is inserted in lieu
                thereof.

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

                4(ii) An annual bonus of 10% of profits.

        Bonus calculations are to be based on Company profit; pre-tax, pre-bonus
        paid to all other employees, pre-reserves and pre-Company contributions
        to the Deferred Compensation Plan.

<PAGE>   2

        4(iii) A one-time grant of Restricted Stock of seven hundred thousand
        (700,000) shares of Kennedy-Wilson, Inc. common stock shall be granted
        to Employee effective 1-1-00. The seven hundred thousand shares of
        restricted stock will vest equally over the three-year term of the
        Agreement according to the following schedule:

<TABLE>
<CAPTION>
                      Year Ending                 Number of Shares Vested
                      -----------                 -----------------------
<S>                                               <C>
                       1-01-01                          233,333
                       1-01-02                          233,333
                       1-01-03                          233,334
</TABLE>

        All Restricted Stock Granted as detailed in 4(iii) may be deferred in
        the Company's Deferred Compensation Plan at the election of the Employee
        but shall not be subject to the Company match as otherwise defined in
        the Deferred Compensation Plan.

        All Restricted Stock Granted as detailed in 4(iii) above would vest
        immediately upon change in control. "Change in control" shall mean the
        first to occur of any of the following events:

                (a) Any "person" (as that term is used 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;

                (b) During any period of not more than two consecutive years,
        not including any period prior to the adoption of this Amendment,
        individuals who at the beginning of such period constitute the board of
        directors of the Company, and any new director (other than a director
        designated by a person who has entered into an agreement with the
        Company to effect a transaction described in clause (a), (c), (d) or (e)
        of this section) whose election by the board of directors or nomination
        for election by the Company's stockholders was approved by a vote of at
        least three-fourths (3/4ths) of the directors then still in office who
        either were directors at the beginning of the period or whose election
        or nomination for election was previously so approved, cease for any
        reason to constitute at least a majority thereof;

                (c) 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;

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

                (e)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.

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<PAGE>   3

        4(iv) A one-time contribution of $1.25 million shall be granted to
        Employee, $625,000 payable 2-29-00 and $625,00 payable 6-30-00. The
        $1.25 million may be deferred in the Company's Deferred Compensation
        Plan at the election of the Employee and shall be subject to the Company
        match as otherwise defined in the Deferred Compensation Plan.

        4.      Section 9(d) is amended such that the following is added: "In
                the event of the Employee's death, the Restricted Stock Grant as
                detailed in 4(iii) will immediately vest and be awarded to
                Employee's estate.

        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 Eighth Amendment
as of the date first above written.

KENNEDY-WILSON, Inc.                        ACCEPTED FOR THE
a Delaware corporation                      BOARD OF DIRECTORS

/s/ JAMES C. OZELLO                         /s/ KENT Y. MOUTON
-----------------------------               ------------------------------------
James C. Ozello, Acting Secretary           Kent Y. Mouton
Compensation/Stock Option Committee         Chairman, Compensation/Stock
                                            Option Committee

ACCEPTED FOR THE
BOARD OF DIRECTORS

/s/ WILLIAM J. MCMORROW                     /s/ FREEMAN LYLE
-----------------------------               ------------------------------------
William J. McMorrow, Chairman               Freeman Lyle
                                            Executive Vice President and
                                            Chief Financial Office

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