Exhibit 10.2

July 15, 2010        

GeoMet, Inc.

909 Fannin

Suite 1850 Houston, TX

77002 Attention: Steve Smith

 

  Re: Fourth Amended and Restated Credit Agreement dated June 3, 2010 (the
“Fourth A&R Credit Agreement”) among GeoMet, Inc. (“Borrower”), Bank of America,
N.A., as Administrative Agent (“Administrative Agent”), and the lenders party
thereto (the “Banks”). Unless otherwise defined herein, all capitalized terms
used herein which are defined in the Fourth A&R Credit Agreement shall have the
meaning given such terms in the Fourth A&R Credit Agreement.

Ladies and Gentlemen:

1. Extension Request. The Fourth A&R Credit Agreement provides that in order for
such agreement to become effective the completion of the conditions precedent
set forth in Section 6.1 thereof, including, without limitation, the condition
that the issuance of the Convertible Preferred Equity has occurred, must be
satisfied or waived pursuant to Section 14.2 of the Fourth A&R Credit Agreement
on or prior to August 16, 2010. Borrower has informed Administrative Agent that
it will be unable to complete the issuance of the Convertible Preferred Equity
by August 16, 2010 and requests that the Banks extend the deadline to complete
the conditions precedent set forth in Section 6.1 thereof, including, without
limitation, the condition that the issuance of the Convertible Preferred Equity
has occurred, to October 1, 2010.

2. Amendment to Fourth A&R Credit Agreement. For and in consideration of the
mutual covenants and agreements herein contained and other good and valuable
consideration, and in reliance on the representations, warranties covenants and
agreements contained in this letter agreement (this “Letter Agreement”), but
subject to the satisfaction of each condition precedent set forth in Paragraph 3
hereof, Administrative Agent, the Banks and Borrower hereby agree to amend the
Fourth A&R Credit Agreement by deleting the references to “August 16, 2010” in
Section 6.1 and the second paragraph of the recitals thereof and replacing such
references with references to “October 1, 2010”.

3. Conditions Precedent to Effectiveness. This Letter Agreement shall be
effective as of the date when the following conditions precedent have been
satisfied:

 

  (a) The requisite shareholders of Borrower, as required by Borrower’s
governing documents, have approved on or before July 31, 2010 the issuance of
the Convertible Preferred Equity; and

 

  (b) Administrative Agent shall have received counterparts of this Letter
Agreement executed on behalf of Borrower and each Bank.

4. Miscellaneous.

 

  (a) Borrower hereby represents and warrants that each representation and
warranty of Borrower and the other Credit Parties contained in the Fourth A&R
Credit Agreement and each of the other Loan Papers is true and correct on the
date hereof.

 

  (b) Borrower hereby agrees to pay on demand all reasonable fees and expenses
of counsel to Administrative Agent incurred by Administrative Agent in
connection with the preparation, negotiation and execution of this Letter
Agreement and all related documents.

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GeoMet, Inc.

July 15, 2010

Page 2

 

  (c) This Letter Agreement may be executed in counterparts, and all parties
need not execute the same counterpart. Facsimiles shall be effective as
originals.

 

  (d) THIS LETTER AGREEMENT REPRESENTS THE FINAL AGREEMENT AMONG THE PARTIES AND
MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR ORAL AGREEMENTS
OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG THE PARTIES.

 

  (e) This Letter Agreement shall be governed by, and construed in accordance
with, the laws of the State of New York.

 

  (f) This Letter Agreement constitutes a “Loan Paper” under and as defined in
the Fourth A&R Credit Agreement.

 

  (g) Nothing contained in this Letter Agreement shall be deemed a consent,
waiver or extension of any other action or inaction of Borrower other than as
expressly provided in Section 1 hereof. No Bank nor Administrative Agent shall
be obligated to grant any future waiver, consent, extension or amendment with
respect to the Fourth A&R Credit Agreement or any other Loan Paper.

If you are in agreement with the foregoing, please execute this Letter Agreement
in the space provided below and return an executed counterpart of this Letter
Agreement to Vinson & Elkins LLP, counsel to Administrative Agent, at 2001 Ross
Avenue, Suite 3700, Dallas, Texas 75201, Attention: Jason McInnes (phone
214.220.7783; fax 214.999.7783).

[Signature Page Follows]

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Very truly yours,

BANK OF AMERICA, N.A.,

as Administrative Agent

By:  

/s/ Renita M. Cummings

  Renita M. Cummings   Assistant Vice President

SIGNATURE PAGE TO LETTER AGREEMENT TO

FOURTH AMENDED AND RESTATED CREDIT AGREEMENT

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Accepted and Agreed

as of July 15, 2010

BORROWER:

GEOMET, INC.,

a Delaware Corporation

 

By:  

/s/ William C. Rankin

Name:  

William C. Rankin

Title:  

EVP & CFO

SIGNATURE PAGE TO LETTER AGREEMENT TO

FOURTH AMENDED AND RESTATED CREDIT AGREEMENT

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BANKS:     BANK OF AMERICA, N.A.     By:  

/s/ Jeffrey H. Rathkamp

      Jeffrey H. Rathkamp       Managing Director

SIGNATURE PAGE TO LETTER AGREEMENT TO

FOURTH AMENDED AND RESTATED CREDIT AGREEMENT

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BNP PARIBAS By:  

/s/ Polly Schott

Name:  

Polly Schott

Title:  

Director

By:  

/s/ Edward Pak

Name:  

Edward Pak

Title:  

Vice President

SIGNATURE PAGE TO LETTER AGREEMENT TO

FOURTH AMENDED AND RESTATED CREDIT AGREEMENT

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BANK OF SCOTLAND By:  

/s/ Julia R. Franklin

Name:  

Julia R. Franklin

Title:  

Assistant Vice President

SIGNATURE PAGE TO LETTER AGREEMENT TO

FOURTH AMENDED AND RESTATED CREDIT AGREEMENT

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U.S. BANK NATIONAL ASSOCIATION By:  

/s/ John C. Lozano

Name:  

John C. Lozano

Title:  

Vice President

SIGNATURE PAGE TO LETTER AGREEMENT TO

FOURTH AMENDED AND RESTATED CREDIT AGREEMENT

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STERLING BANK By:  

/s/ David W. Phillips

Name:  

David W. Phillips

Title:  

Senior Vice President

SIGNATURE PAGE TO LETTER AGREEMENT TO

FOURTH AMENDED AND RESTATED CREDIT AGREEMENT

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The undersigned (i) consents and agrees to this Letter Agreement, and
(ii) agrees that the Loan Papers to which it is a party shall remain in full
force and effect and shall continue to be the legal, valid and binding
obligation of the undersigned, enforceable against it in accordance with its
terms.

 

CONSENTED, ACKNOWLEDGED AND AGREED TO BY:

GEOMET GATHERING COMPANY, LLC,

an Alabama limited liability company

By:  

/s/ William C. Rankin

Name:  

William C. Rankin

Title:  

EVP & CFO

GEOMET OPERATING COMPANY, INC.,

an Alabama corporation

By:  

/s/ William C. Rankin

Name:  

William C. Rankin

Title:  

EVP & CFO

ACKNOWLEDGEMENT PAGE TO LETTER AGREEMENT TO

FOURTH AMENDED AND RESTATED CREDIT AGREEMENT