Document:

2005 Stock Option Plan

 EXHIBIT 10.2 
  
 GEOMET, INC. 
  
 2005 STOCK OPTION PLAN 
  
  
 Section 1. Purpose. The purpose of this 2005 Stock Option Plan
(the “Plan”) is to promote the interests of GeoMet, Inc., a Delaware corporation formerly known as GeoMet Resources, Inc. (the “Company”), and the interests of the Company’s shareholders by attracting and retaining
Employees, Non-Employee Directors and Consultants, and giving such persons the opportunity to purchase Common Stock of the Company. By encouraging such stock ownership, the Company seeks to attract, retain and motivate such Employees, Non-Employee
Directors and Consultants, and to encourage them to devote their best efforts to the business and financial success of the Company and its Affiliates. 
  
 Section 2.    Definitions. As used herein the following terms have the following meanings: 
  
     (a)    “Affiliate” means any parent or subsidiary corporation of the Company within the meaning of Section 424(e) and (f) of the Code. 
  
     (b)    “Board” means the Board of Directors of the Company. 
  
     (c)    “Code” means the Internal Revenue Code of 1986, as amended. 
  
     (d)    “Committee” shall mean the Committee of the Board referred to in Section 19 hereof. 
  

    (e)    “Common Stock” means the Common Stock, $0.001 par value, of the Company.

  
     (f)    “Consultant” means any consultant or advisor of the Company or an Affiliate who is not an Employee or Non-Employee Director, provided that bona fide services are rendered by the
consultant or advisor and such services are not in connection with the offer or sale of securities in a capital-raising transaction. 
  
     (g)    “Employee” means any regular salaried officer or employee of the Company or
an Affiliate. 
  
     (h)    “Fair Market Value” means either (i) the closing sales price per share of Common Stock on the date of the grant of the Option, or, if no sales of shares of Common Stock shall
have been made on such date, on the next succeeding business day on which shares of Common Stock are sold, on the principal national securities exchange on which the shares of Common Stock are listed or admitted to trading, or if the shares of
Common Stock are not listed or admitted to trading on any national securities exchange, on the National Association of Securities Dealers Automated Quotation National Market (the “NASDAQ National Market”), or, if the shares of Common Stock
are not quoted on the NASDAQ National Market, the average of the highest reported “bid” and the lowest 

  

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reported “asked” prices per share of such Common Stock on the date in question, as furnished by the National Association of Securities Dealers,
Inc., or (ii) if the Common Stock is not reported or quoted by any such organization, as determined in good faith by the Committee, after taking all relevant facts into consideration. 
  
     (i)    “Non-Employee Director” means an individual duly elected or chosen as a director of the Company or an Affiliate who is not also an Employee or officer of the Company or an
Affiliate. 
  
     (j)    “Option” means an option granted to an Employee, Non-Employee Director or Consultant pursuant to the Plan that is (a) a “nonqualified stock option” as described in
Treasury Regulation Section 1.83-7 or any successor regulation thereto and that shall not constitute nor be treated as an incentive stock option (as defined in Section 422(b) of the Code) or (b) an incentive stock option (as defined
in Section 422(b) of the Code); provided, however, that incentive stock options (as defined in Section 422(b) of the Code) shall only be granted to Employees. 
  
     (k)    “Option Agreement” means a written agreement
between the Company and an Employee, Non-Employee Director or Consultant that sets forth the terms, conditions, restrictions and/or limitations applicable to an Option granted under the Plan. 
  
     (l)    “Optionee” means an Employee, Non-Employee Director or Consultant who has been granted an Option under the Plan. 
  
 Section 3.    Number of Shares. The total number of shares of Common Stock for which Options
may be granted by the Company from time to time under the Plan shall not exceed in the aggregate three hundred (300,000) shares of the authorized Common Stock, subject to adjustment as provided in Section 10 below. Such shares may be in
whole or part, as the Committee shall from time to time determine, authorized but unissued shares of Common Stock or issued shares of Common Stock which shall have been reacquired by the Company. If any Option granted under the Plan expires or
terminates for any reason without having been exercised in full, or is reduced as to the number of shares covered thereby, the unpurchased shares subject thereto, or the shares by which such Option is reduced, shall again be available for purposes
of the Plan. 
  
 Section 4.    Administration of the Plan. The following provisions shall apply to the administration of the Plan by the Committee: 
  
     (a)    The Plan shall be administered by the Committee. The
Committee shall have total and exclusive responsibility to control, operate, manage and administer the Plan in accordance with its terms. The Committee shall have all the authority that may be necessary or helpful to enable it to discharge its
responsibilities with respect to the Plan. Without limiting the generality of the preceding sentence, the Committee shall have the exclusive right to: (i) interpret the Plan and the Options granted hereunder; (ii) determine eligibility for
participation in the Plan; (iii) decide all questions concerning eligibility for, and the number of, Options issuable under the Plan; (iv) construe any ambiguous provision of the Plan or any Option Agreement; (v) prescribe the form of
the 

  

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Option Agreements embodying Options granted under the Plan (which need not be identical); (vi) correct any defect, supply any omission or reconcile any
inconsistency in the Plan or any Option Agreement; (vii) issue administrative guidelines as an aid to administer the Plan and make changes in such guidelines as it from time to time deems proper; (viii) make regulations for carrying out
the Plan and make changes in such regulations as it from time to time deems proper; (ix) determine whether Options should be granted singly, in combination or in tandem; (x) to the extent permitted under the Plan, grant waivers of Plan
terms, conditions, restrictions and limitations; (xi) accelerate the exercise, vesting or payment of an Option when such action or actions would be in the best interests of the Company; (xii) grant Options in replacement of Options
previously granted under the Plan or any other employee benefit plan of the Company; and (xiii) take any and all other actions it deems necessary or advisable for the proper operation or administration of the Plan. 
  
     (b)    Neither
the members of the Board nor the Committee shall be liable for any act, omission, or determination taken or made in good faith with respect to the Plan or any Options granted under it, and members of the Board or the Committee shall be entitled to
indemnification and reimbursement by the Company in respect of any claim, loss, damage, or expense (including attorneys’ fees, the costs of settling any suit, provided such settlement is approved by independent legal counsel selected by the
Company, and amounts paid in satisfaction of a judgment, except a judgment based on a finding of bad faith) arising therefrom to the fullest extent permitted by law. 
  
 Section 5.    Grant of Options. At any time and from time to time during the duration of the
Plan and subject to the express provisions thereof, Options may be granted by the Committee to any Employee, Non-Employee Director or Consultant for such number of shares of Common Stock as the Committee in its discretion shall deem to be in the
best interest of the Company and which will serve to further the purposes of the Plan. The Committee, in its discretion, shall designate whether any Option so granted shall be either (i) a nonqualified stock option or (ii) an incentive
stock option intended to qualify under Section 422 of the Code; provided, however, that in no case shall an Option granted to a Non-Employee Director or a Consultant be designated as an incentive stock option under Section 422 of the Code.

  
 Section 6.    Option Price.
The purchase price per share of Common Stock for each option shall be determined by the Committee but in no event shall be less than 100% of the Fair Market Value per share of Common Stock at the time the Option is granted; provided, however, that
the purchase price per share of Common Stock for any incentive stock option granted to an Optionee who, at the time such incentive stock option is granted, owns stock possessing more than 10% of the total combined voting power of all classes of
stock of the Company or any Affiliate shall be at least 110% of the Fair Market Value per share of Common Stock at the date of grant. Upon exercise of an Option, the purchase price shall be paid in full either: 1) in cash, 2) with the consent of the
Committee, by the execution of a promissory note and/or a combination of cash and execution of a promissory note or 3) with the consent of the Committee and if and to the extent provided for under the Option Agreement for such Option, in cash and/or
by delivery of shares of Common Stock already owned by the Optionee having an aggregate Fair Market Value (determined as of the date of exercise) equal to the purchase price. The proceeds of such sale shall constitute general funds of the Company.
Upon exercise of an Option, the Optionee 

  

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will be required to pay to the Company the amount of any federal, state or local taxes required by law to be withheld in connection with such exercise, and
no certificates representing shares of Common Stock shall be delivered to the Optionee until such tax is paid by the Optionee. 
  
 Section 7.    Option Period and Terms of Exercise of Options. Except as otherwise provided for herein, each Option granted
under the Plan shall be exercisable during such period commencing on or after the date of the grant of such Option as the Committee shall determine and specify in the related Option Agreement. In the event that the Option Agreement does not set
forth the exercise period of the Option, the otherwise unexpired portion of any Option shall expire and become null and void no later than upon the first to occur of (i) the expiration of 10 years from the date such Option was granted,
(ii) the expiration of three months from the date of the termination of the Optionee’s employment or consulting or director services, as applicable, with the Company or an Affiliate for any reason other than death or disability, or
(iii) the expiration of one year (in the case of an incentive stock option) or two years (in the case of a nonqualified stock option) from the date of termination of the Optionee’s employment or consulting or director services, as
applicable, with the Company or an Affiliate by reason of death or disability. Anything herein to the contrary notwithstanding, the otherwise unexpired portion of any Option granted hereunder shall expire and become null and void immediately upon
the termination of Optionee’s employment or consulting or director services with the Company or an Affiliate by reason of such Optionee’s fraud, dishonesty or performance of other acts detrimental to the Company or an Affiliate, as
determined by the Board in its sole discretion, or for “cause” as defined in any employment, consulting or similar agreement that may exist between Optionee and the Company or an Affiliate, as determined by the Board in its sole
discretion. Any incentive stock option granted to an Optionee who, at the time such incentive stock option is granted, owns stock possessing more than l0% of the total combined voting power of all classes of stock of the Company or any Affiliate
shall not be exercisable after the expiration of five years from the date of its grant. Under the provisions of any Option Agreement evidencing an Option, the Committee may limit the number of shares purchasable thereunder in any period or periods
of time during which the Option is exercisable and may impose such other terms and conditions upon the exercise of an Option and the shares of Common Stock to be purchased as are not inconsistent with the terms of this Plan; provided, however, that
the Committee, in its discretion, may accelerate the exercise date of any Option to any date following the date of grant. 
  
 Section 8.    Nontransferability of Options. An Option granted under the Plan shall be transferable by the Optionee only
by will or by the laws of descent and distribution and shall be exercisable during the lifetime of the Optionee only by the Optionee, or if the Optionee is legally incompetent, by the Optionee’s legal representative. No person or entity shall
be entitled to vote, receive dividends, or be deemed for any purpose the holder of any shares of Common Stock until the Options granted with respect to such shares shall have been exercised in accordance with the provisions of the Plan. 

 

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 Section 9.     Termination. 
  
     (a)    Termination of Employment. Transfers of employment by an Employee between the Company and any of its Affiliates shall not be considered to be a termination of employment for the
purposes of this Plan. Nothing in the Plan or in any Option Agreement evidencing an Option granted under the Plan shall confer upon any Optionee any right to continue in the employ of the Company or any Affiliate or in any way interfere with the
right of the Company or any Affiliate to terminate the employment of the Optionee at any time, with or without cause. 
  
     (b)    Termination of Consulting Services. Transfers of consulting services by a
Consultant between the Company or any of its Affiliates shall not be considered to be a termination of consulting services for the purposes of this Plan. Nothing in the Plan or in any Option Agreement evidencing an Option granted under the Plan to a
Consultant shall confer upon any Consultant any right to continue as a Consultant of the Company, or any Affiliate or in any way interfere with the right of the Company or any Affiliate to terminate the services of the Consultant at any time, with
or without cause. 
  
     (c)    Termination of Membership on the Board. Nothing in the Plan or in any Option Agreement evidencing an Option granted under the Plan to a Non-Employee Director shall confer upon any
Non-Employee Director any right to continue as a Non-Employee Director of the Company or any Affiliate. 
  
 Section 10.    Adjustments Upon Changes in Common Stock. In the event that, after the adoption of the Plan by the Board,
the outstanding shares of the Company’s Common Stock shall be changed into or exchanged for a different number or kind of shares of stock or other securities of the Company or of another corporation through reorganization, merger or
consolidation, recapitalization, reclassification, stock split, split-up, combination or exchange of shares or increase because of any dividends paid in Common Stock, the Committee shall appropriately adjust (i) the number of shares of Common
Stock (and the exercise price per share) subject to any unexercised Options, and (ii) the number of shares of Common Stock for which Options may be granted under the Plan, as set forth in Section 3 hereof, and such adjustments shall be
effective and binding for all purposes of the Plan. 
  
 Section 11.    Amendment and Termination of the Plan. Subject to the right of the Board to terminate the Plan prior thereto, the Plan shall terminate at the expiration of 10 years from the date of adoption of
the Plan by the Board. No Options may be granted after termination of the Plan. The Board may alter or amend the Plan but may not, without the approval of the shareholders of the Company having a majority of the general voting power, make any
alteration or amendment thereof which operates (i) to increase the total number of shares of Common Stock as to which Options may be granted under the Plan (other than as provided in Section 10 hereof), (ii) to extend the term of the
Plan or the exercise period beyond the 10 year maximum provided in Section 7 hereof, (iii) to decrease the minimum purchase price provided in Section 6 hereof (other than as provided in Section 10 hereof) or (iv) to make any
other change requiring shareholder approval under any applicable rule, regulation, or procedure of any national securities exchange or securities association upon which any securities of the Company are 

  

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listed. No termination or amendment of the Plan shall adversely affect the rights of an Optionee under an outstanding Option, except with the consent of such
Optionee. 
  
 Section 12.    Modification of Options. Subject to the terms and conditions of and within the limitations of the Plan, the Committee may modify, extend or renew outstanding Options granted under the Plan
(including the conversion of an incentive stock option qualified under Section 422 of the Code to a nonqualified stock option), or accept the surrender of Options outstanding hereunder (to the extent not theretofore exercised) and authorize the
granting of new Options in substitution therefor. Notwithstanding the foregoing, no modification of an Option shall, without the consent of the Optionee, alter or impair any rights or obligations under any Option theretofore granted to such
Optionee, except as may be necessary, with respect to incentive stock options, to satisfy the requirements of Section 422(b) of the Code. 
  
 Section 13.    Corporate Changes. Upon (a) the dissolution or liquidation of the Company; (b) the sale of all or
substantially all the assets of the Company; (c) the occurrence of a Change in Control (as defined below); or (d) upon the closing of the first underwritten public offering of the Common Stock of the Company that is pursuant to a
registration statement filed with, and declared effective by, the Securities and Exchange Commission under the Securities Act of 1933, as amended (the “Securities Act”), covering the offer and sale of any Common Stock to the public for the
Company’s account, subject to the terms of any applicable option agreement, the Board serving prior to the date of the applicable event shall accelerate the exercise dates of all outstanding Options, and may, in its discretion, without
obtaining stockholder approval, pay cash to any or all Optionees in exchange for the cancellation of their outstanding Options. 
  
 A “Change in Control” shall be deemed to have occurred for purposes of this Section 13 if (a) individuals who were directors of the
Company immediately prior to a Control Transaction (as defined below) shall cease, within one year of such Control Transaction, to constitute a majority of the Board of Directors of any successor to the Company or to a company which has acquired all
or substantially all its assets or (b) any entity, person or group (other than a beneficial owner of Common Stock on the date this Plan is adopted) acquires shares of the Company in a transaction or series of transactions that result in such
entity, person or group directly or indirectly owning beneficially 50% or more of the outstanding shares of Common Stock. As used in this Section 13, the term “Control Transaction” shall mean (a) any tender offer for or
acquisition of capital stock of the Company, (b) any reorganization, merger, consolidation or sale of all or substantially all the assets of the Company, (c) any contested election of directors of the Company or (d) any combination of
the foregoing that results in a change in voting power sufficient to elect a majority of the Board. The Board’s determination as to what adjustments shall be made under this Section 13 and the extent of such adjustments shall be final,
binding and conclusive. 
  
 Section 14.    Legal Restrictions. Nothing herein, in any Option Agreement entered into hereunder, or in any Options granted hereunder, shall require the Company to sell or issue any Common Stock pursuant to
an Option if such sale or issuance would, in the opinion of counsel for the Company, constitute a violation of the Securities Act or any similar or superseding statute or statutes, or any applicable state “blue sky” law, in any case as
then in effect. 
  

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 Section 15.    Investment Letter and Legend. At the time of any grant or
exercise of any Options, or sale or issuance of Common Stock pursuant thereto, the Company may, as a condition precedent to the grant or exercise of such Option or the sale or issuance of such Common Stock, require from the holder of such Option (or
in the event of his death, his representatives, legatees, or distributees) such written representations, if any, concerning his (or the transferee’s) status as a sophisticated and/or “accredited” investor under applicable federal and
state securities laws and his (or the transferee’s) intentions with regard to the retention or disposition of the Options or the Common Stock being acquired pursuant to such Options, and such written covenants and agreements, if any, as to the
manner of acquisition of such Option and/or the disposal of such Common Stock as, in the opinion of counsel to the Company, may be necessary to ensure that any acquisition or disposition by such holder (or in the event of his death, his legal
representatives, legatees, or distributees) will not involve a violation of the Securities Act or any similar or superseding statute or statutes, or any other applicable federal or state statute, rule, or regulation, as then in effect. Certificates
for Common Stock, when issued, shall have appropriate legends, or statements of other applicable restrictions, endorsed thereon, and may or may not be immediately transferable. 
  
 Section 16.    Restrictions on Transfer of Shares. The Common Stock acquired pursuant to the
exercise of Options shall be subject to such restrictions and agreements regarding sale, assignment, encumbrances or other transfer as are in effect among the shareholders of the Company at the time such Common Stock is acquired, as well as to such
other restrictions as the Board shall deem advisable. The Company may require as a condition to the exercise of any Option that the holder thereof enter into any stockholders’ agreement then in effect among the stockholders of the Company.

  
 Section 17.    Gender. Words
of any gender used in the Plan shall be construed to include any other gender, unless the context requires otherwise. 
  
 Section 18.    Governing Law. All questions arising with respect to the provisions of the Plan or any agreement entered
into hereunder or any Option shall be determined by application of the internal laws of the State of Delaware (without regard to principles of conflicts of law), except to the extent Delaware law is preempted by federal law. 
  
 Section 19.    The Committee. The Plan shall
be administered by the Compensation Committee appointed by the Board; provided that at least one member of the Compensation Committee must be one of the three directors designated by the New Stockholders (as such term is defined in the Stockholders
Agreement to be dated as of April 15, 2005 by and among the Company and its stockholders). All actions taken by the Committee must be by either (i) the affirmative vote of a majority of the total number of members at a meeting of the
Committee at which a quorum is present or (ii) the unanimous written consent of all members of the Committee. 
  
 Section 20.    Government and Stock Exchange Regulations. The Plan, and the granting and exercise of Options thereunder,
and the obligation of the Company to sell and deliver shares under such Options, shall be subject to all applicable governmental laws, rules and regulations, and to such approvals by any governmental agencies as may then be required, and shall also
be subject to all applicable rules and regulations of any stock exchange upon which the Common 

  

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Stock of the Company may then be listed. The Committee is expressly authorized to impose such restrictions and limitations as it may deem advisable upon the
exercise of Options in order to satisfy any such regulatory requirements. 
  
 Section 21.    Effective Date of the Plan. The Plan shall become effective, as of the date of its adoption by the Board, when it has been duly approved by the holders of at least a
majority of the shares of Common Stock present or represented and entitled to vote at a meeting of the shareholders of the Company duly held in accordance with applicable law within twelve months after the date of adoption of the Plan by the Board.
If the Plan is not so approved, the Plan shall terminate and any Option granted hereunder shall be null and void. 
  
 IN WITNESS WHEREOF, this 2005 Stock Option Plan is executed as of the 15th day of April, 2005. 
  

			
	GEOMET, INC.
		
	By:	 	 /s/ William C. Rankin

		
	 Name:
	 	 William C. Rankin

	 Title:
	 	 Executive Vice President

  

 - 8 -Form of Incentive Stock Option Agreement

 GEOMET, INC. 
  
 INCENTIVE STOCK OPTION AGREEMENT 
  
 This Incentive Stock Option Agreement (this “Agreement”) is made effective as of
                    , 20     (the “Effective Date”), by and between GeoMet, Inc., a Delaware corporation
formerly known as GeoMet Resources, Inc. (the “Company”), and             , (the “Optionee”), in connection with the grant of an Incentive Option
(hereinafter defined) under the GeoMet, Inc. 2005 Stock Option Plan (the “Plan”). 
  
 W I T N E S S E T H : 
  
 WHEREAS, the Optionee is an employee of the Company or an Affiliate (hereinafter defined) and the Company wishes to encourage the Optionee to own Common Stock (hereinafter defined); and 
  
 WHEREAS, the Optionee formerly held option(s) (the “GeoMet
Option”) to purchase common stock of GeoMet, Inc., an Alabama corporation (“GeoMet”); and 
  
 WHEREAS, GeoMet was merged with and into the Company (the “Merger”); and 
  
 WHEREAS, in connection with the Merger, the Board of Directors of GeoMet took such action to cause the GeoMet Option to be
converted at the effective time of the Merger into an option to purchase Common Stock of the Company pursuant to the formula set forth in the Agreement and Plan of Merger between GeoMet Resources, Inc. and GeoMet, Inc. dated as of March 31,
2005; and 
  
 WHEREAS, as a result of the Merger, the GeoMet
Option automatically became fully vested; and 
  
 WHEREAS, the
Company and the Optionee desire to enter into a new option agreement to reflect the vested nature of the Option and the conversion of the GeoMet Option into the Option (as defined herein). 
  
 NOW, THEREFORE, the Company and Optionee hereby agree as follows: 

 
 1. Definitions. As used in this Agreement, the following terms
shall have the following meanings, respectively: 
  
 (a) “Affiliate” shall have the meaning set forth in Section 2(a) of the Plan and shall include any party now or hereafter coming within that definition. 
  
 (b) “Board” shall mean the Board of Directors of the Company. 

 (c) “Code” shall mean the Internal Revenue Code of 1986, as amended.

  
 (d) “Committee” shall have the
meaning set forth in Section 2(d) of the Plan. 
  
 (e) “Common Stock” shall have the meaning set forth in Section 2(e) of the Plan. 
  
 (f) “Fair Market Value” shall have the meaning set forth in Section 2(h) of the Plan. 
  
 (g) “Incentive Option” shall mean the stock option
granted pursuant to Section 2 of this Agreement that is intended to be or is denominated as an incentive stock option (within the meaning of Section 422 of the Code). 
  
 2. Grant of Incentive Option. Subject to the provisions of this Agreement, and, in particular, the vesting provisions
set forth in Section 4 hereof, the Company hereby grants to Optionee the option to purchase             shares of the Common Stock of the Company at a price of
$            per share (the “Option”), during a period commencing on the Effective Date and terminating on the first to occur of (i) the expiration of seven years from
the date of this Agreement or (ii) when the employment of Optionee by the Company or any of its Affiliates terminates for any reason; provided, however, that if said employment terminates less than seven years from the date hereof other than by
reason of death or disability, then Optionee may exercise this Option, to the extent he was entitled to do so at the date of termination of employment, at any time within three months after such termination but not after the expiration of the
seven-year period; provided further that if said employment terminates less than seven years from the date hereof by reason of Optionee’s becoming permanently and totally disabled (within the meaning of Section 22(e)(3) of the Code), then
Optionee (or Optionee’s legal representative, if Optionee is legally incompetent) may exercise this Option, to the extent he was entitled to do so at the date of such termination, at any time within one year after such termination but not after
the expiration of the seven-year period; and provided further that if said employment terminates less than seven years from the date hereof by reason of Optionee’s death, then the executor or administrator of Optionee’s estate or anyone
who shall have acquired this Option by will or pursuant to the laws of descent and distribution may exercise this Option, to the extent Optionee was entitled to do so on the date of his death, at any time within one year after such death but not
after the expiration of the seven-year period. Anything to the contrary herein notwithstanding, the Option granted hereunder shall terminate immediately upon the termination of Optionee’s employment with the Company or an Affiliate on account
of fraud, dishonesty or the performance of other acts detrimental to the Company or an Affiliate, as determined by the Board in its sole discretion, or for “cause” as defined in any employment agreement that may exist between Optionee and
the Company or an Affiliate, as determined by the Board in its sole discretion. A transfer of employment without interruption of service between or among the Company and any of its Affiliates shall not be considered a termination of employment for
purposes of this Agreement. 
  
 3. Exercise During
Employment. Except as provided in Section 2 hereof, this Option may not be exercised unless Optionee (i) shall have been in the continuous employ of the Company or an Affiliate from the Effective Date to the date of exercise of the
Option and (ii) 

  

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agrees to be bound by the terms and conditions of any shareholders agreement in effect among the Company and its shareholders, or any permitted assigns
thereof under such agreement, at the time Optionee first exercises the Option (the “Stockholders’ Agreement”) by executing a counterpart of such agreement. Any shares of Common Stock purchased upon the exercise of this Option
shall be subject to the terms and conditions of the Stockholders’ Agreement. 
  
 4. Vesting. The Option shall be fully vested and exercisable as of the Effective Date by virtue of the fact that the GeoMet Option converted into the Option was fully vested as a result of the Merger.

  
 5. Manner of Exercise. This Option may be exercised by
written notice signed by the person entitled to exercise the same and delivered to the Secretary of the Company or sent by United States registered mail addressed to the Company (for the attention of the Secretary) at its corporate office in
Bessemer, Alabama. Such notice shall state the number of shares of Common Stock as to which this Option is exercised and shall be accompanied by the full amount of the purchase price of such shares, plus the amount of any federal, state or local
taxes required by law to be paid or withheld in connection with such exercise. 
  
 6. Payment. The purchase price for the shares of Common Stock purchased upon exercise of this Option plus the amount of any federal, state or local taxes referred to in Section 5 hereof shall be paid in
cash in United States dollars or otherwise as contemplated by the Plan. 
  
 7. Delivery of Shares. Delivery of the certificates representing the shares of Common Stock purchased upon exercise of this Option shall be made promptly after receipt of notice of exercise and payment. If the Company so elects, its
obligation to deliver shares of Common Stock upon the exercise of this Option shall be conditioned upon its receipt from the person exercising this Option of an executed investment letter, in form and content satisfactory to the Company and its
legal counsel, evidencing the investment intent of such person and such other matters as the Company may reasonably require. If the Company so elects, the certificate or certificates representing the shares of Common Stock issued upon exercise of
this Option shall bear a legend in substantially the following form: 
  
 THE SHARES EVIDENCED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR INVESTMENT AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 OR APPLICABLE STATE SECURITIES LAWS AND MAY NOT BE SOLD OR OTHERWISE 

  

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TRANSFERRED UNLESS SUCH SHARES ARE FIRST REGISTERED THEREUNDER OR UNLESS THE COMPANY RECEIVES A WRITTEN OPINION OF COUNSEL, WHICH OPINION AND COUNSEL ARE
ACCEPTABLE TO THE COMPANY, TO THE EFFECT THAT REGISTRATION THEREUNDER IS NOT REQUIRED. 
  
 8. Adjustments. In the event that, before delivery by the Company of all the shares of Common Stock with respect to which this Option is granted, the Company shall have effected a Common Stock split or dividend
payable in Common Stock, or the outstanding Common Stock of the Company shall have been combined into a smaller number of shares, the shares of Common Stock still subject to this Option shall be increased or decreased to reflect proportionately the
increase or decrease in the number of shares outstanding resulting from any such event, and the purchase price per share shall be decreased or increased to make the aggregate purchase price for all the shares then subject to this Option the same as
immediately prior to such stock split, stock dividend or combination. In the event of a reclassification of the shares of Common Stock not covered by the foregoing, or in the event of a liquidation or reorganization (including a merger,
consolidation, spinoff or sale of assets) of the Company or an Affiliate, the Committee shall make such adjustments, if any, as it may deem appropriate in the number, purchase price and kind of shares still subject to this Option. 
  
 9. Committee Authority. Any questions concerning the interpretation of
this Agreement and any controversy which may arise under this Agreement shall be determined by the Committee in its sole discretion. 
  
 10. Transferability. This Option is not transferable otherwise than by will and the laws of descent and distribution and during the lifetime of
Optionee is exercisable only by Optionee or, if Optionee is legally incompetent, by Optionee’s legal representative. 
  
 11. Employment. Nothing in this Agreement confers upon Optionee any right to continue in the employ of the Company or any Affiliate, nor shall this
Agreement interfere in any manner with the right of the Company or any Affiliate to terminate the employment of Optionee with or without cause at any time. 
  
 12. Option Subject to Plan. By execution of this Agreement, Optionee agrees that this Option and the shares of Common Stock to be received upon
exercise hereof shall be governed by and subject to all applicable provisions of the Plan, which provisions are incorporated by reference herein. 
  
 13. Construction. This Agreement is governed by, and shall be construed and enforced in accordance with, the internal laws of the State of
Delaware, without regard to principles of conflicts of law. Words of any gender used in this Agreement shall be construed to include any other gender, unless the context requires otherwise. The headings of the various sections of this Agreement are
intended for convenience of reference only and shall not be used in construing the terms hereof. 
  

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 14. Investment Representations. In connection with the grant of the Option to Optionee and at each
time Optionee exercises all or any part of the Option, such Optionee makes or is deemed to make the following representations, warranties, covenants and agreements with the Company: 
  
 (i) Such Optionee is, by virtue of his key position with the Company or an Affiliate and his involvement in
investment matters from time to time, a sophisticated investor and has such knowledge and experience in financial and business matters that such Optionee is capable of evaluating, and has evaluated, the merits and risks of an investment in the
Option or the shares of Common Stock issuable thereunder, as the case may be. 
  
 (ii) Such Optionee has received all of the financial and other information pertaining to the Company or its Affiliates that such Optionee considers necessary to his investment in the Option or the shares of Common
Stock issuable thereunder, as the case may be. 
  
 (iii) Such Optionee is acquiring the Option or the shares of Common Stock issuable thereunder, as the case may be, delivered pursuant to this Agreement for investment purposes and not with a view to making a distribution, sale, transfer,
assignment or other disposition of all or any part thereof, and such Optionee agrees that the Option or the shares of Common Stock issuable thereunder, as the case may be, will not be sold, transferred, assigned or otherwise disposed of by such
Optionee in violation of the Securities Act of 1933, as amended, or any applicable state securities laws. 
  
 (iv) Such Optionee understands and agrees that his right to transfer all or any portion of the Option or the shares of Common Stock
issuable thereunder, as the case may be, is restricted by the terms and provisions of this Agreement and the Stockholders’ Agreement and that he therefore must be prepared to bear the economic risks of his investment for an indefinite period of
time. 
  

 5 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be effective as of the date first
above written. 
  

	
	 THE COMPANY:

	
	 GEOMET, INC.

	
	 By:

	

	
	 Name:

	

	
	 Title:

	

	
	 OPTIONEE:

	
	

	
	 Name:

	

  

 6

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