Document:

exv10w23

 

Exhibit 10.23

THIRD AMENDMENT TO THE LIMITED PARTNERSHIP AGREEMENT

OF

HALLWOOD ENERGY, L.P.

     This Third Amendment (this “Amendment”) to the Limited Partnership Agreement (the “Partnership
Agreement”) of Hallwood Energy, L.P. (the “Partnership”), is executed by Hallwood Energy
Management, LLC, a Delaware limited liability company, as General Partner of the Partnership (the
“General Partner”), and by the General Partner, on behalf of the Limited Partners on the books and
records of the Partnership, pursuant to the power of attorney included in Section 1.8 of the
Partnership Agreement.

WITNESSETH:

     WHEREAS, the Limited Partnership Agreement of the Partnership was entered into as of August
23, 2005 under the name of Hallwood Energy 4, L.P.;

     WHEREAS, the Partnership Agreement was amended by the Agreement and Plan of Consolidation
dated December 8, 2005 among Hallwood Exploration, L.P., Hallwood Energy II, L.P. and Hallwood
Energy 4, L.P. to change the name of the Partnership to Hallwood Energy, L.P. upon the
effectiveness of the merger contemplated by that agreement, which occurred on December 31, 2005;
and the Partnership Agreement was further amended by that certain Amendment to Limited Partnership
Agreement dated as of December 31, 2005;

     WHEREAS, the board of directors of the General Partner deems it to be in the best interest of
the Partnership to amend the Partnership Agreement further to allow for the creation and issuance
of Class C Partnership Interests (the “Class C Partnership Interests”) of the Partnership; and

     WHEREAS, a vote of the Limited Partners is not required to approve the Amendment and the
issuance of the Class C Partnership Interests.

     NOW, THEREFORE, in consideration of the foregoing, the Partnership Agreement is amended as
follows:

     1. Definitions. Capitalized terms used in this Amendment that are defined in the Partnership
Agreement shall have the same meaning as assigned therein when used in this Amendment, unless
otherwise provided herein.

     2. Amendments to the Partnership Agreement.

          A. Article II is hereby amended by adding the following definitions, to be deemed placed in
the appropriate alphabetical order:

1

 

     "Class C Capital Contributions” means the sum of all contributions to capital made by a Class
C Limited Partner with respect to such Class C Limited Partner’s Class C Partnership Interest.

     “Class C Limited Partner” means any Person validly holding a Class C Partnership Interest.

     “Class C Conversion Amount” means the amount of a Class C Limited Partner’s Class C
Partnership Interest designated by the Class C Limited Partner to be converted into Class A
Partnership Interest pursuant to Section 9.7 (not to exceed the sum of such Class C Limited
Partner’s Unpaid Class C Priority Return and Unrecovered Class C Capital Contributions immediately
prior to the conversion).

     “Class C Partnership Interest” means all rights and interests of a Class C Limited Partner
under this Agreement, including (i) the right of a Class C Limited Partner, expressed as its
Percentage Interest, to receive distributions of revenues, allocations of income and loss and
distributions of liquidation proceeds in accordance with the terms of this Agreement, and (ii) all
management rights, voting rights or rights to consent held by such Limited Partner under this
Agreement.

     “Class C Priority Return” means a sum with respect to each Class C Limited Partner equal to
sixteen percent (16%) per annum of the average daily balance of such Class C Limited Partner’s
Unrecovered Class C Capital Contributions. Such amounts shall be determined on the basis of a year
of 365 or 366 days, as the case may be, for the actual number of days in the period for which the
Class C Priority Return is being determined, cumulative and compounded monthly, for the period
beginning with the Funding Date.

     "Funding Date” means the date on which the Class C Limited Partner receives its Class C
Limited Partnership Interest as recorded on the books of the Company.

     "Unpaid Class C Priority Return” means the aggregate cumulative amount of the Class C Priority
Return with respect to a Class C Partnership Interest for the current and all prior years less any
distributions previously made with respect to the Class C Partnership Interest for the current and
all prior years pursuant to Sections 4.2(a) and 4.3(a).

     "Unrecovered Class C Capital Contributions” means the amount, with respect to a Class C
Limited Partner, of such Class C Limited Partner’s Class C Capital Contributions less any
distributions previously made with respect to such Class C Partnership Interest for the current and
all prior years pursuant to Sections 4.2(b) and 4.3(b).

          B. Section 3.1 is hereby amended by deleting paragraph (c) thereof in its entirety and
substituting the following in lieu thereof:

     (c) The General Partner may, without any consent or approval of the Limited Partners, from
time to time admit Persons as Class B Limited Partners of the Partnership and may issue Class B
Partnership Interests in the Partnership, as the General Partner determines to be appropriate,
provided that the Percentage Interest of all Class B Partnership Interests shall not exceed twenty
percent (20%) of the Percentage Interests of all Class A Limited Partners and

2

 

Class B Limited Partners combined that may be awarded to members of the management of the General
Partner as an incentive for the formation and operation of the Partnership, plus an additional two
percent (2%) of the Percentage Interests of all Class A Limited Partners and Class B Limited
Partners combined that may be awarded for other purposes. If the Partnership itself acquires any
Class B Partnership Interest in the Partnership pursuant to a purchase right under Article
IX or otherwise, (i) the Class A Partnership Interests of the Class A Limited Partners shall be
increased, in proportion to their Percentage Interests, by the full amount of the Class B
Partnership Interest acquired, (ii) the Class B Partnership Interests of the other Class B Limited
Partners shall remain unchanged; and (iii) the percentages attributed to the Class A Limited
Partners and the Class B Limited Partners in Sections 4.2(b) and 4.3(b) shall be adjusted
as appropriate to reflect new aggregate percentage interests in the Partnership owned by the Class
A Limited Partners and the Class B Limited Partners following such acquisition.

          C. Section 3.2 is hereby amended by deleting the section in its entirety and substituting the
following in lieu thereof:

     Section 3.2. Capital Contributions. The cash contribution, if applicable, made by each
initial Partner for its Partnership Interest as of August 23, 2005 is set forth in Exhibit
A. The Class C Capital Contributions made by each Class C Limited Partner receiving a Class C
Partnership Interest and the Percentage Interest of each holder of Class C Limited Partner are
reflected on the books of the Partnership.

     D. Section 4.2 is hereby amended by deleting the section in its entirety and substituting the
following in lieu thereof:

     Section 4.2. Distributions of Available Cash. Subject to the provisions of Sections 4.3,
4.4 and 4.5 below, at such times as the General Partner shall determine in its sole discretion,
all Available Cash of the Partnership (if any) shall be distributed among the Partners as follows
and in the following order of priority:

     (a) First: 100% to the Partners holding a Class C Partnership Interest in proportion to the
balance of each Class C Limited Partner’s Unpaid Class C Priority Return, until the balance of each
Class C Limited Partner’s Unpaid Class C Priority Return is reduced to zero;

     (b) Second: 100% to the Partners holding a Class C Partnership Interest in proportion to the
balance of each Class C Limited Partner’s Unrecovered Class C Capital Contributions, until the
balance of each Class C Limited Partner’s Unrecovered Class C Capital Contributions is reduced to
zero;

     (c) Third: 100% to the Partners holding a Class A Partnership Interest and the General
Partner, pro rata in accordance with the balances of their respective Unreturned Capital accounts
until the balance of each Class A Limited Partner’s and General Partner’s Unreturned Capital
account is reduced to zero; and

     (d) Fourth: The balance, if any, to the Partners holding a Class A Partnership Interest, the
General Partner, and the Partners holding a Class B Partnership Interest, in proportion to their
individual Percentage Interests.

3

 

          E. Section 4.3 is hereby amended by deleting the section in its entirety and substituting the
following in lieu thereof:

     Section 4.3 Distributions of Net Proceeds from Terminating Capital Transaction. The Net
Proceeds of a Terminating Capital Transaction, after payment of all of the Partnership’s debts and
liabilities and the expenses of liquidation and/or the establishment of a reasonable reserve for
the Partnership’s debts and liabilities (contingent or otherwise), if deemed necessary by the
General Partner, and after taking into account all distributions to the Partners during such year
pursuant to Section 4.2, shall be distributed among the Partners as follows and in the
following order of priority:

     (a) First: 100% to the Partners holding a Class C Partnership Interest in proportion to the
balance of each Class C Limited Partner’s Unpaid Class C Priority Return, until the balance of each
Class C Limited Partner’s Unpaid Class C Priority Return is reduced to zero;

     (b) Second: 100% to the Partners holding a Class C Partnership Interest in proportion to the
balance of each Class C Limited Partner’s Unrecovered Class C Capital Contributions, until the
balance of each Class C Limited Partner’s Unrecovered Class C Capital Contributions is reduced to
zero;

     (c) Third: 100% to the Partners holding a Class A Partnership Interest and the General
Partner, pro rata in accordance with the balances of their respective Unreturned Capital accounts
until the balance of each Class A Limited Partner’s and General Partner’s Unreturned Capital
account is reduced to zero; and

     (d) Fourth: The balance, if any, to the Partners holding a Class A Partnership Interest, the
General Partner, and the Partners holding a Class B Partnership Interest, in proportion to their
individual Percentage Interests.

          F. Section 6.5 is hereby amended by deleting the section in its entirety and substituting the
following in lieu thereof:

     Section 6.5. Voting Rights of Class B Limited Partners and Class C Limited Partners. Except
as required by this Agreement and the Act, neither Class B Limited Partners nor Class C Limited
Partners shall have any voting rights.

          G. Article IX is hereby amended by adding the following section in its entirety:

     Section 9.7. Conversion of Class C Partnership Interest into Class A Partnership Interest.

     (a) Upon proper exercise in accordance with the provisions of Section 9.7(c), a Class
C Limited Partner may convert all or part of its Class C Partnership Interest to a Class A
Partnership Interest in the Partnership under the conversion ratio specified in Section
9.7(b). If a Class C Limited Partner converts all or part of its Class C Partnership Interest
to a Class A Partnership Interest, the Class C Conversion Amount shall first reduce the balance of
such Class

4

 

C Limited Partner’s Unpaid Class C Priority Return, but not below zero, and then shall reduce such
Class C Limited Partner’s Unrecovered Class C Capital Contributions, but not below zero.

     (b) The Class C Conversion Amount shall be convertible into a Class A Partnership Interest in
the Partnership in the ratio of such Class C Conversion Amount to the sum of (i) the aggregate
Capital Contributions of all Partners holding a Class A Partnership Interest at the time of
conversion and (ii) such Class C Conversion Amount.

     (c) The conversion of all or part of a Class C Partnership Interest shall occur upon receipt
of a notice, in accordance with the provisions of Section 10.1, addressed to the General
Partner indicating the Class C Limited Partner’s desire to convert and specifying the Class C
Conversion Amount and shall be deemed to be effective on the first day of the month in which the
notice is received by the General Partner, if received on or prior to the 15th of such
month or the first day of the following month if received after the 15th of such month.

     (d) A Class C Limited Partner may request the conversion of a Class C Partnership Interest
to a Class A Partnership Interest at any time and from time to time until the earlier of the
following events: (i) the sum of the Class C Limited Partner’s Unpaid Class C Priority Return and
Unrecovered Class C Capital Contributions is reduced to zero; (ii) the Partnership is terminated in
accordance with Article VIII ; or (iii) December 31, 2055.

          H. Section B.1.6(b) of Article B-I of Exhibit B is hereby amended by deleting the section in
its entirety and substituting the following in lieu thereof:

     (b) The Gross Asset Values of all Partnership assets shall be adjusted to equal their
respective gross fair market values (taking Code Section 7701(g) into account), as determined by
the General Partner, as of the following times: (A) the acquisition of an additional interest in
the Partnership by any new or existing Partner in exchange for more than a de minimis capital
contribution (including a conversion of a Class C Limited Partnership Interest into a Class A
Partnership Interest pursuant to Section 9.7 of the Agreement); (B) the distribution by the
Partnership to a Partner of more than a de minimis amount of property as consideration for an
interest in the Partnership; and (C) the liquidation of the Partnership within the meaning of
Treas. Reg. § 1.704-1(b)(2)(ii)(g); provided, however, that adjustments pursuant to clauses (A) and
(B) above shall be made only if the General Partner reasonably determines that such adjustments are
necessary or appropriate to reflect the relative economic interests of the Partners in the
Partnership.

          I. Section B.2.1 of Article B-II of Exhibit B is hereby amended by deleting the section in its
entirety and substituting the following in lieu thereof:

     B.2.1 Profits. After giving effect to the special allocations set forth in
Sections B.2.3 and B.2.4 hereof, Profits for any Fiscal Year shall be allocated in
the following order and priority:

     (a) Profits for any Fiscal Year shall be allocated among the Partners holding a Class A
Partnership Interest, a Class B Partnership Interest and the General Partner so as to reduce,
proportionately, the differences between their respective Target Capital Accounts and Partially
Adjusted Capital Accounts for such Fiscal Year. No portion of the Profits for any Fiscal Year

5

 

shall be allocated to a Partner whose Partially Adjusted Capital Account is greater than or
equal to its Target Capital Account for such Fiscal Year.

     (b) The amount of income allocated to a Class C Partner for any Fiscal Year shall be treated
as a guaranteed payment pursuant to Code Section 707(c) contingent upon one of the following
events: (i) distributions of Available Cash, (ii) distributions of Net Proceeds from a Terminating
Capital Transaction or (iii) distributions of Net Sale Proceeds from a Partial Sale Transaction,
and not exceed the sum of the amounts of cash distributions received by such Class C Partner during
such Fiscal Year under Section 4.2(a), Section 4.3(a), and Section 4.5(a).

          J. Section B.2.2 of Article B-II of Exhibit B is hereby amended by deleting subsection (a) in
its entirety and substituting the following in lieu thereof:

     (a) Losses for any Fiscal Year shall be allocated among the Partners holding a Class A
Partnership Interest, a Class B Partnership Interest and the General Partner so as to reduce,
proportionately, the differences between their respective Partially Adjusted Capital Accounts and
Target Capital Accounts for such Fiscal Year. No portion of the Losses for any Fiscal Year shall
be allocated to Partners holding a Class A Partnership Interest or a Class B Partnership Interest
whose Target Capital Account is greater than or equal to its Partially Adjusted Capital Account for
such Fiscal Year.

          K. Section B.2.3 of Article B-II of Exhibit B is hereby amended by adding the following
subsection (i) in its entirety:

     (i) Upon a Terminating Capital Transaction, any Class C Limited Partner whose Partially
Adjusted Capital Account is greater than its Target Capital Account shall be specially allocated
items of Partnership deduction or loss for such Fiscal Year equal to the difference between its
Target Capital Account and its Partially Adjusted Capital Account for such Fiscal Year. In the
event the Partnership has insufficient items of deductions and loss for such Fiscal Year to satisfy
the previous sentence with respect to each holders of a Class C Partnership Interest, the General
Partner may make other allocations to achieve such result with income, gains or any other
distributive share item.

     3. Ratification. Except as specified hereinabove, all other terms of the Partnership
Agreement shall remain unchanged and are hereby ratified and confirmed. All references to “this
Agreement” or “the Agreement” appearing in the Partnership Agreement, and all references to the
Partnership Agreement appearing in any other document or instrument shall be deemed to refer to the
Partnership Agreement as amended by this Amendment.

6

 

          IN WITNESS WHEREOF, this Amendment has been duly executed by the General Partner on behalf of
itself and each Limited Partner on this the 24th day of May, 2007.

	 	 	 	 	 
	 	GENERAL PARTNER,

on behalf of itself and each Limited Partner pursuant

to the power of attorney provided in Section 1.8 of

the Partnership Agreement.

 	 
	 	 	 
	 	HALLWOOD ENERGY MANAGEMENT, LLC

 	 
	 	By:  	/s/ Russell P. Meduna
 	 
	 	 	Name:  	Russell P. Meduna 	 
	 	 	Title:  	Vice President 	 
	 

7exv10w29

 

Exhibit 10.29

Non-Employee Director Compensation Summary

Alseres Pharmaceuticals, Inc.’s (the “Company’s”) non-employee directors currently consist of:
William L.S. Guinness; Robert S. Langer, Jr.; Michael J. Mullen; John T. Preston; Gary E. Frashier;
and Henry Brem.

For the year ended December 31, 2007, the Company’s non-employee director compensation was as
follows:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Per Board and	 	 
	 	 	 	 	 	 	Committee	 	Annual Fee Per
	 	 	2007 Annual Retainer	 	Meeting Fees (2)	 	Committee Chaired
	William L.S. Guinness
	 	$	25,000	 	 	$	2,500	 	 	 	—	 
	Robert S. Langer, Jr.
	 	$	25,000	 	 	$	2,500	 	 	$	10,000	 
	Michael J. Mullen
	 	$	25,000	 	 	$	2,500	 	 	$	20,000	 
	John T. Preston
	 	$	25,000	 	 	$	2,500	 	 	$	20,000	 
	Gary E. Frashier (1)
	 	$	25,000	 	 	$	2,500	 	 	$	10,000	 
	Henry Brem (1)
	 	$	25,000	 	 	$	2,500	 	 	 	—	 

 

			
	(1)	 	The annual retainer and annual fee for committee chair is pro-rated for non-employee directors
who were not on the Board for the full year.
	 
	(2)	 	Board and committee fees are paid on a per meeting basis at $2,500 per meeting.

All non-employee directors are reimbursed for ordinary and reasonable expenses of attending any
board or committee meetings.

Each new non-employee director is automatically granted an option to purchase 25,000 shares of the
Company’s common stock (“New Director Options”) upon initial election or appointment (the
“Automatic Grant Date”). The exercise price of any New Director Options granted shall equal the
fair market value of shares of the Company’s common stock subject thereto on the Automatic Grant
Date. New Director Options immediately vest as to 1/3 of the shares subject to such New Director
Options with the remaining 2/3 of the shares subject to such New Director Option vesting in equal
monthly installments over two years (“New Director Option Vesting”).

Each non-employee director is automatically granted an option to purchase 25,000 shares of the
Company’s common stock each year (“Annual Director Options”). The Annual Director Options are
granted in the fourth quarter of each calendar year (the “Annual Grant Date”). The exercise price
of any Annual Director Options granted shall equal the fair market value of shares of the Company’s
common stock subject thereto on the Annual Grant Date. Annual Director Options vest in equal
monthly installments over two years (“Annual Director Option Vesting”). Newly elected non-employee
directors are eligible to receive the Annual Director Options in the fourth quarter of the second
calendar year of service.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00139-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00139-of-00352.parquet"}]]