Document:

Exhibit 10.35

 

AMENDMENT
TO EMPLOYMENT AGREEMENT

OF WILLIAM J. MCMORROW

 

1.  Term:   Extended from 8/15/97 to
12/31/97.

 

2.  Salary:  $300,000 per annum

 

3.   Salary Advance
payable against bonus earned; $100,000 per annum.

 

4.    Bonus payable as follows:

 

BONUS

 

	
  PROFIT (MM)

  	
   

  	
  BONUS

  	
   

  
	
  0
  to 1

  	
   

  	
  0

  	
   

  
	
  1
  to 3

  	
   

  	
  10% (Max. $100 K)

  	
   

  
	
  3
  to 3.75

  	
   

  	
  20%

  	
   

  

 

CAP — $7.5MM Profit

 

5.                                         Bonus paid at S
months based on 1st and 2nd Quarter profits. At year end, additional bonus paid
on year end profits or excess bonus payout to be refunded by check and/or
offset excess bonus payout by 1997 Salary.

 

APPROVED:

 

	
  /s/
  William E. Elliot

  	
   

  	
  2/29/96

  	
   

  
	
  /s/
  Donald B. Prell

  	
   

  	
  3/2/96

  	
   

  
	
  /s/
  Kent Y. Mouton

  	
   

  	
  3/5/96Exhibit 10.36

 

FIFTH AMENDMENT TO

 

EMPLOYMENT AGREEMENT

 

This Fifth Amendment to Employment Agreement (the “Fifth Amendment”) is
made and entered into as of May 19, 1997, by and between KENNEDY-WILSON,
INC., A Delaware corporation, with its principal office located in Santa
Monica, 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 and January 1, 1996,
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 of Employment, Bonus
and Severance Agreement.

 

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 May 19, 1997 as follows:

 

1. Section 2 of the Employment Agreement is
deleted in its entirety and the following is inserted in lieu thereof:

 

2.                                        Term (a): Employee
shall be employed by the Company pursuant to his Employment Agreement for a
term beginning in August 14, 1992, and continuing through to and
terminating at the close of business on December 31, 1999, (unless earlier
terminated pursuant to Section 9 hereof).

 

(b): In the event the Employment Agreement is terminated due to change
in control, or non renewal of the Agreement, except if change in control or non
renewal is for cause (which shall mean only Employee’s violation of criminal
law, material wrong act or omission, malfeasance or gross negligence which
causes material damage to the business or reputation of the Companies),
disability or death, the Employee shall in consideration of his execution of
the General Release attached as Exhibit “A”, hereof, be entitled to
payment from the Company equal to two (2) times the Employee’s annual
compensation. The annual compensation would be the arithmetic average of the
most recent three (3) year period and would include salary and bonus as
reported in the Proxy Statement, (the “Severance Payment”). Such Severance
Payment shall be paid to Employee ten (10) days following his execution
and delivery to Company of such General Release, provided Employee has not
revoked such General Release in the meanwhile.

 

 

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

 

4(ii).
An annual bonus payable in an amount as follows:

 

1998 Bonus     20% on profits of 3MM to 17.5MM (pretax,
pre bonus)

1997 Bonus    20% on profits of 3MM to 12.5MtvI (pre tax,
pre bonus)

1999 Bonus   
20% on profits of 3MM to 22.5MM (pre tax, pre bonus)

 

3.                                          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 Fifth Amendment as of the date
first above written.

 

 

	
  COMPANY

  	
   

  	
  ATTEST:

  
	
  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 10.37

 

SIXTH AMENDMENT TO

 

EMPLOYMENT AGREEMENT

 

This Sixth Amendment to Employment Agreement (the “Sixth Amendment”) is
made and entered into as of August 20, 1998, by and between
KENNEDY-WILSON, INC., A Delaware corporation, with its principal office located
in Santa Monica, 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 t, 1994, March 31, 1995, January 1, 1996, and May 19,
1997, 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 Bonus Structure.

 

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 21, 1998 as follows:

 

1.                                       Section 4(h) the
annual bonus is amended such that the existing bonus cap at $17.SIvflvI for
1998 and $22.5MM for 1999 is deleted and the following bonus cap is inserted in
lieu thereof:

 

1998 Bonus: 20% of profits of 3MM to 25MM

1999 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.

 

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 Sixth Amendment as of the date
first above written.

 

 

	
  COMPANY

  	
   

  	
  ATTEST:

  
	
  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 10.38

 

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”).

 

WHEREAS, Company and Employee 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, l997 aud 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 and extend the
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 extends until December 31, 2000. Therefore, Section 2(a) of the Employment
Agreement is amended such that the termination date of “December 1,1999”
is deleted and the termination date of “December 31” in lieu thereof.

 

2.                                               Section 4(ii) the
annual bonus is amended such that the existing bonus cap at $25MM for 1998 and 535MM for 1999 is
deleted and the following bonus cap is inserted in lieu thereof;

 

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

 

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.

 

 

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.

 

 

	
  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
10.39

 

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(h) 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.

 

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 4-15-00. The seven hundred
thousand shares of restricted stock will vest equally over the three-year term
of the Agreement according to the following schedule:

 

	
  Year Ending

  	
   

  	
  Number of Shares Vested

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  1-01-01

  	
   

  	
  233,333

  	
   

  
	
  1-01-02

  	
   

  	
  233,333

  	
   

  
	
  1-01-03

  	
   

  	
  233,334

  	
   

  

 

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 tem 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.

 

 

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 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 Officer

  

 

 

RESOLUTIONS OF THE

COMPENSATION COMMITTEE

OF KENNEDY-WILSON, INC.

a Delaware corporation

 

The Compensation Committee
of the Board of Directors of Kennedy-Wilson, Inc., having met on December 9,
1999 approves the following resolutions in regard to amending the employment
contract of William J. McMorrow, the Chief Executive Officer of Kennedy-Wilson, Inc.

 

WHEREAS, after due
consideration and review, the Compensation Committee of the Board of Directors
desires to amend the employment contract of William J. McMorrow, the Chief
Executive Officer of Kennedy-Wilson, Inc.;

 

NOW THEREFORE, BE IT
RESOLVED, that the employment contract is amended as follows:

 

·                  The term is extended for three years
commencing January l , 2000 and expiring December 31, 2002.

 

·                  The annual salary shall be $400,000.00.

 

·                  The employee shall be entitled to a
non-discretionary annual bonus equal to 10% of pie-tax, pre-bonus, pit-deferred
compensation program earnings.

 

·                  The employee shall receive a one-time
restricted stock grant on January l, 2000 of 700,000 shares. Shares to
vest in equal one-third increments at the end of the first, second and third
years with immediate acceleration upon a change in control.

 

·                  The employee shall receive a one-time payment
of $1,250,000.00 granted to employee, $625,000.00 payable on February 29,
2000 and $625,000.00 payable on Jane 30, 2000, which may be deferred at
election of employee and matched as otherwise defined in Plan.

 

The undersigned hereby
certify they are the Compensation Committee of the Board of Directors of the
Corporation. Executed as of December 9, 1999.

 

 

	
  /s/
  Donald B. Prell

  	
   

  	
  /s/
  Kent Y. Mouton

  
	
   

  	
   

  	
  Chairman

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