Document:

Settlement, Release and Confidentiality Agreement

 Exhibit 10.4 

Execution Copy 
  

 
  
  

 
 INVESTMENT AGREEMENT 

by and between 

GEOMET, INC. 

and 

SHERWOOD ENERGY, LLC 

Dated as of June 2, 2010 
  

 
  

 TABLE OF CONTENTS 

 

					
	 Article I             DEFINITIONS AND
INTERPRETATION
	  	1
			
	 Section 1.1
	  	Definitions	  	1
			
	 Section 1.2
	  	Interpretation	  	9
		
	 Article II           THE RIGHTS OFFERING AND BACKSTOP
COMMITMENT
	  	10
			
	 Section 2.1
	  	The Rights Offering	  	10
			
	 Section 2.2
	  	The Proxy Statement and the Stockholder Meeting	  	11
			
	 Section 2.3
	  	Backstop Commitment	  	12
		
	 Article III         REPRESENTATIONS AND WARRANTIES OF THE COMPANY

	  	14
			
	 Section 3.1
	  	Organization	  	14
			
	 Section 3.2
	  	Authorization	  	14
			
	 Section 3.3
	  	Capitalization	  	15
			
	 Section 3.4
	  	Valid Issuance of Shares	  	15
			
	 Section 3.5
	  	Non-Contravention; Authorizations	  	16
			
	 Section 3.6
	  	Litigation	  	16
			
	 Section 3.7
	  	Compliance with Laws; Permits	  	16
			
	 Section 3.8
	  	Periodic Filings; Financial Statements; Undisclosed Liabilities	  	17
			
	 Section 3.9
	  	Absence of Certain Changes	  	18
			
	 Section 3.10
	  	Brokers and Finders	  	18
			
	 Section 3.11
	  	Contracts	  	18
			
	 Section 3.12
	  	Employee Benefits	  	18
			
	 Section 3.13
	  	Title to Properties	  	20
			
	 Section 3.14
	  	Insurance	  	20
			
	 Section 3.15
	  	Environmental Compliance	  	21
			
	 Section 3.16
	  	Intellectual Property	  	22
			
	 Section 3.17
	  	Foreign Corrupt Practices Act	  	22
			
	 Section 3.18
	  	Taxes	  	22
			
	 Section 3.19
	  	Complete Disclosure	  	24
			
	 Section 3.20
	  	No Further Reliance	  	24
		
	 Article IV         REPRESENTATIONS AND WARRANTIES OF
INVESTOR
	  	25
			
	 Section 4.1
	  	Organization and Authority	  	25
			
	 Section 4.2
	  	Authorization	  	25

  

 -ii- 

					
			
	 Section 4.3
	  	Non-Contravention; Governmental Authorization	  	25
			
	 Section 4.4
	  	Securities Act Compliance	  	26
			
	 Section 4.5
	  	Financial Capability	  	26
			
	 Section 4.6
	  	Brokers and Finders	  	26
			
	 Section 4.7
	  	No Further Reliance	  	26
		
	 Article V           CONDITIONS TO CLOSING
	  	27
			
	 Section 5.1
	  	Conditions to the Obligations of the Company and Investor	  	27
			
	 Section 5.2
	  	Conditions to the Obligations of the Company	  	27
			
	 Section 5.3
	  	Conditions to the Obligations of Investor	  	27
		
	 Article VI         COVENANTS
	  	29
			
	 Section 6.1
	  	Conduct of the Business	  	29
			
	 Section 6.2
	  	Securities to be Issued	  	29
			
	 Section 6.3
	  	Efforts	  	30
			
	 Section 6.4
	  	Publicity	  	30
			
	 Section 6.5
	  	Share Listing	  	30
			
	 Section 6.6
	  	Access	  	31
			
	 Section 6.7
	  	Termination of Confidentiality Agreement; Confidentiality	  	31
			
	 Section 6.8
	  	Right to Use Names and Logos	  	31
			
	 Section 6.9
	  	Finder’s Fees	  	32
			
	 Section 6.10
	  	Proceeds	  	32
			
	 Section 6.11
	  	Filing of Certificate of Designations	  	32
		
	 Article VII       GOVERNANCE AND OTHER RIGHTS
	  	32
			
	 Section 7.1
	  	Initial Investor Nominees	  	32
			
	 Section 7.2
	  	Governance Matters	  	32
			
	 Section 7.3
	  	Procedural Matters	  	33
			
	 Section 7.4
	  	Matters Requiring Investor Approval	  	35
			
	 Section 7.5
	  	Notice Rights	  	36
			
	 Section 7.6
	  	Corporate Opportunities	  	36
			
	 Section 7.7
	  	Participation Rights for New Securities	  	36
		
	 Article VIII      EVENTS OF DEFAULT
	  	37
			
	 Section 8.1
	  	Listing of Events of Default	  	37
			
	 Section 8.2
	  	Action Upon Default	  	38
			
	 Section 8.3
	  	Rights Not Exclusive	  	38

  

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	 Article IX         TERMINATION
	  	38
			
	 Section 9.1
	  	Termination	  	38
			
	 Section 9.2
	  	Effects of Termination	  	39
		
	 Article X           MISCELLANEOUS
	  	39
			
	 Section 10.1
	  	Survival	  	39
			
	 Section 10.2
	  	Indemnification	  	39
			
	 Section 10.3
	  	Notices	  	42
			
	 Section 10.4
	  	Further Assurances	  	43
			
	 Section 10.5
	  	Amendments and Waivers	  	43
			
	 Section 10.6
	  	Fees and Expenses	  	43
			
	 Section 10.7
	  	Successors and Assigns	  	44
			
	 Section 10.8
	  	Governing Law	  	44
			
	 Section 10.9
	  	Entire Agreement	  	45
			
	 Section 10.10
	  	Effect of Headings and Table of Contents	  	45
			
	 Section 10.11
	  	Severability	  	45
			
	 Section 10.12
	  	Counterparts; No Third Party Beneficiaries	  	45
			
	 Section 10.13
	  	Specific Performance	  	45

 Exhibit I – Certificate of
Designation 
 Exhibit II – Form of Legal Opinion 
  

 -iv- 

 INVESTMENT AGREEMENT 

This INVESTMENT AGREEMENT dated as of June 2, 2010 (this “Agreement”) is by and between GeoMet, Inc., a Delaware
corporation (the “Company”), and Sherwood Energy, LLC, a Delaware limited liability company (the “Investor”). 

BACKGROUND 

WHEREAS, the Company has proposed to offer and sell certain shares of Preferred Stock (as defined below) pursuant to a Rights Offering
(as defined below), on the terms and subject to the conditions set forth herein; 
 WHEREAS, the Company desires that the
Investor provide, and the Investor has agreed to provide, a Backstop Commitment (as defined below) to the Rights Offering, on the terms and subject to the conditions set forth herein; 

WHEREAS, in connection with its purchase of Preferred Stock pursuant to the Backstop Commitment, the Investor wishes to receive certain
additional rights relating to its Preferred Stock, and the Company desires to grant such rights on the terms and subject to the conditions set forth herein; 

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained in this Agreement, the receipt and sufficiency of which
are hereby acknowledged, the parties to this Agreement hereby agree as follows: 
 ARTICLE I 

DEFINITIONS AND INTERPRETATION 

Section 1.1 Definitions. As used in this Agreement, the following terms have the respective meanings set forth below:

 “10b-5 Representation” shall have the meaning set forth in Section 2.1(c). 

“Acquisition Transaction” means (a) a merger, consolidation, restructuring, transfer of assets or other business
combination, sale of shares of Capital Stock, tender offer, exchange offer, recapitalization or other similar transaction that if consummated would result in any Person or Persons acquiring beneficial ownership of Equity Securities or Capital Stock
representing 50% or more of the Total Voting Power of the Company or (b) any other direct or indirect acquisition of 50% or more of the Total Voting Power of the Company or all or substantially all of the consolidated total assets (including
Equity Securities of its Subsidiaries) of the Company, in each case other than the transactions contemplated by this Agreement. 

“Additional Backstop Fee” shall have the meaning set forth in Section 2.3(e)(ii). 

“Adjustments” shall have the meaning set forth in Section 6.1. 

 

 -1- 

 “Affiliate” of any Person means, as to any Person, any Subsidiary of such
Person, or any other Person which, directly or indirectly, Controls, is Controlled by, or is under common Control with, such Person, provided that for purposes of this Agreement, the Company and its Subsidiaries shall not be deemed to be
Affiliates of Investor. 
 “Aggregate Offered Shares” means four million (4,000,000) shares of Preferred
Stock. 
 “Agreement” shall have the meaning set forth in the Preamble. 

“Ancillary Agreements” means the Certificate of Designation and the officer’s certificates to be delivered pursuant
to Section 5.2(c) or Section 5.3(d), as applicable. 
 “As-Converted Basis” shall mean, when used
herein in connection with any calculation of the aggregate number of Common Stock outstanding, that such calculation shall take into account the aggregate number of shares of Common Stock issuable upon conversion of all securities that are
convertible into Common Stock, including the Preferred Stock. 
 “Audit Committee” means the Audit Committee of
the Board. 
 “Backstop Closing” shall have the meaning set forth in Section 2.3(c). 

“Backstop Closing Date” shall have the meaning set forth in Section 2.3(c). 

“Backstop Commitment” shall have the meaning set forth in Section 2.3(a). 

“Backstop Fee” shall have the meaning set forth in Section 2.3(e)(i). 

“Backstop Shares” shall have the meaning set forth in Section 2.3(a). 

“Beneficially Own,” “Beneficially Owned,” “Beneficial Ownership” and
“Beneficial Owner” with respect to any securities means a holder who is deemed to be the beneficial owner, or ownership that is deemed to be beneficial ownership, of such securities under Rule 13d-3 or Rule 13d-5 of the Exchange
Act, and shall include such securities Beneficially Owned by all other Persons with whom a holder would constitute a Group with respect to such securities, provided, however, that the shares of Common Stock issuable upon conversion of the
Preferred Stock shall not be deemed to be Beneficially Owned by the holders of the Preferred Stock until such conversion. 

“Board” means the board of directors of the Company. 

“Business Day” means any day other than a Saturday, Sunday or one on which banks are authorized to close in Houston,
Texas. 
 “Business Opportunity” shall have the meaning set forth in Section 7.6. 

“Capital Stock” of any Person means any and all shares, interests, participations or other equivalents however
designated of corporate stock or other equity participations, including partnership interests, whether general or limited, of such Person and any rights (other than debt securities convertible or exchangeable into an equity interest), warrants or
options to acquire an equity interest in such Person. 
  

 -2- 

 “Certificate of Designations” means the Company’s Certificate of
Designations governing the terms of the Preferred Stock, substantially in the form attached as Exhibit I hereto. 

“Certified Ownership Percentage” shall have the meaning set forth in Section 5.2(d). 

“Common Stock” means the common stock, par value $0.001 per share, of the Company. 

“Company” shall have the meaning set forth in the Preamble. 

“Company Financial Statements” shall have the meaning set forth in Section 3.8(b). 

“Company Indemnified Parties” shall have the meaning set forth in Section 10.2(b). 

“Company Marks” shall have the meaning set forth in Section 6.8. 

“Company SEC Documents” shall have the meaning set forth in Section 3.8(a). 

“Compensation Committee” means the Compensation Committee of the Board. 

“Contract” has the same meaning as “material contract” as such term is defined in Item 601(b)(10) of
Regulation S-K of the SEC. 
 “Control” has the meaning specified in Rule 12b-2 under the Exchange Act.

 “Credit Agreement” means that certain Fourth Amended and Restated Credit Agreement among the Company, as
borrower, the financial institutions party thereto, Bank of America, N.A., as administrative agent, BNP Paribas, as syndication agent, and Banc of America Securities LLC and BNP Paribas, as co-lead arrangers and book managers, as amended and in
effect on the date hereof. 
 “Date of Delivery” shall mean, for purposes of Section 7.7, the date that a
particular notice is received or deemed to be received in accordance with Section 7.7. 
 “Default” shall
have occurred upon the delivery of a written declaration of an Event of Default to the Company by Investor, provided that any Event of Default resulting from the act or omission of one or more Investor Directors shall not constitute a
Default. 
 “DGCL” means the General Corporation Law of the State of Delaware. 

“Effect” shall have the meaning set forth in the definition of “Material Adverse Effect.” 

“Employee” means each current, former, or retired employee, director or officer of the Company or any of its
Subsidiaries. 
 “Employee Benefit Plan” shall mean all ERISA Plans and Other Benefit Obligations of which the
Company is or was a sponsor or co-sponsor, or to which the Company otherwise contributes or has contributed, or in which the Company otherwise participates or has participated, or with respect to which the Company has any liability. 

 

 -3- 

 “Environmental Claims” shall have the meaning set forth in
Section 3.15. 
 “Environmental Laws” shall have the meaning set forth in Section 3.15. 

“Equity” means shares of Capital Stock or a partnership, profits, capital or member interest, or options, warrants or
any other right to substitute for or otherwise acquire the Capital Stock or a partnership, profits, capital or member interest of the Company. 

“Equity Securities” means any and all shares of Common Stock of the Company, securities of the Company convertible into,
or exchangeable or exercisable for, such shares, and options, warrants or other rights to acquire such shares. 

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended. 

“ERISA Plan” shall have the meaning set forth in ERISA Section 3.13. 

“ERISA Affiliate” means any Person which is (or at any relevant time was) a member of a “controlled group of
corporations” which, under “common control” with, or a member of an “affiliated service group” with the Company as such terms are defined in Internal Revenue Code sections 414(b), (c), (m) or (o). 

“Event of Default” shall have the meaning set forth in Section 8.1. 

“Exchange Act” shall have the meaning set forth in Section 3.8(a). 

“Existing Instrument” has the meaning set forth in Section 3.5. 

“FCPA” has the meaning set forth in Section 3.17. 

“GAAP” means generally accepted accounting principles in the United States of America as in effect from time to time.

 “Governmental Entity” means any national, state, local, county, parish or municipal government, domestic or
foreign, any agency, board, bureau, commission, court, tribunal, subdivision, department or other governmental or regulatory authority or instrumentality that has jurisdiction over any of the Company or any of its properties or assets or any matter
relating to the transactions contemplated by this Agreement. 
 “Group” has the meaning set forth in
Section 13(d) of the Exchange Act as in effect on the date of this Agreement. 
 “Indemnified Party” means
an Investor Indemnified Party or Company Indemnified Parties, as the case may be. 
 “Indemnifying Party” means
the Company or the Investor, as the case may be. 
  

 -4- 

 “Information” shall have the meaning set forth in Section 6.7(a).

 “Initial Investor Designees” means the Investor Nominees that the Investor would be entitled to nominate for
election to the Board in accordance with Section 7.2(a) had an election of directors taken place on the Backstop Closing Date, as the case may be, after giving effect to the Backstop Closing. 

“Internal Revenue Code” means the United States Internal Revenue Code of 1986, as amended. 

“Investment” means, with respect to any Person, any loan, advance, extension of credit, capital contribution to,
investment in or purchase of the stock securities of, or interests in, any other Person; provided, that “Investment” shall not include current customer and trade accounts which are payable in accordance with customary trade terms.

 “Investor” shall have the meaning set forth in the Preamble. 

“Investor 13(d) Group” means Investor and such Affiliates of Investor who are deemed to Beneficially Own the Preferred
Stock Beneficially Owned by Investor and any person with whom Investor or any such Affiliates would constitute a Group with respect to Preferred Stock. For the avoidance of doubt, the Investor 13(d) Group shall include any Investor Directors.

 “Investor Directors” means Investor Nominees who are elected or appointed to serve as members of the Board
in accordance with this Agreement. 
 “Investor Group” shall have the meaning set forth in Section 7.6.

 “Investor Indemnified Parties” shall have the meaning set forth in Section 10.2(a). 

“Investor Nominees” means such Persons as are designated by Investor, as such designations may change from time to time
in accordance with this Agreement, to serve as members of the Board pursuant to Section 7.2(a) hereof. 

“Knowledge” of a Person is the actual awareness of such fact or other matter after reasonable due inquiry (a) in
the case of a natural person, by such Person or (b) in the case of a Person that is not a natural person, by its officers, directors and senior management. 

“Law” means any federal, state, local or foreign law, statute or ordinance, common law, or any rule, regulation,
judgment, order, writ, injunction, decree, arbitration award, license or permit of any Governmental Entity. 

“Losses” shall have the meaning set forth in Section 10.2(a). 

“Material Adverse Effect” means any fact, circumstance, event, change, effect or occurrence (an
“Effect”) that, individually or in the aggregate with all other Effects, (x) with respect to either party, would reasonably be expected to prevent, materially delay or materially impair the ability of such party to consummate
the transactions contemplated hereby in the timeframe contemplated hereby or (y) has had or caused, or would reasonably be expected to 
  

 -5- 

 have or cause, a material adverse effect on the assets, properties, business, prospects, results of
operations, or condition (financial or otherwise) of the Company and its Subsidiaries, taken as a whole, but, in the case of this clause (y) shall not include (a) Effects to the extent resulting from the announcement of the execution of
this Agreement or the pendency of the transactions contemplated hereby (including, without limitation, and solely by way of example of such Effects, the direct and substantiated effect of the public announcement of this Agreement or the transactions
contemplated hereby on the relationships of the Company or any of its Subsidiaries with customers, suppliers, distributors or employees), provided that this clause (a) shall not diminish the effect of, and shall be disregarded for
purposes of, any representations or warranties herein; (b) declines in the price or trading volume of shares of any Capital Stock of the Company, provided that the exception in this clause (b) shall not prevent or otherwise affect a
determination that any Effect underlying such decline has resulted in, or contributed to, a Material Adverse Effect with respect to the Company; and (c) Effects to the extent resulting from any changes in Law or in GAAP (or the interpretation
thereof) after the date hereof, unless any such Effects disproportionately affect the assets, properties, business, results of operations or financial condition of the Company and its Subsidiaries, taken as a whole, relative to other participants in
the coalbed methane exploration and production industry, provided that the exception in this clause (c) shall not apply to any changes in Law regarding (1) the ability to use hydraulic fracturing in coalbed methane exploration and
production, (2) the proper disposal of groundwater, hydraulic fracturing fluid, proppant and/or a combination thereof during the fluid recovery/dewatering process or (3) the operation of coalbed methane exploration and production wells.

 “Materials of Environmental Concern” shall have the meaning set forth in Section 3.15. 

“NASDAQ” means NASDAQ Global Market. 

“New Securities” shall have the meaning set forth in Section 7.7(b). 

“New Securities Notice” shall have the meaning set forth in Section 7.7(c). 

“Nominating Committee” shall have the meaning set forth in Section 7.1(b). 

“Non-Investor Director” means any member of the Board that is not an Investor Director. 

“Other Benefit Obligations” – all obligations, arrangements, or customary practices, whether or not legally
enforceable, or provided benefits, other than salary, as compensation for services rendered, to present or former directors, employees, or agents, other than obligations, arrangements, and practices that are ERISA Plans. Other Benefit Obligations
include consulting agreements under which the compensation paid does not depend upon the amount of service rendered, sabbatical policies, severance payment policies, and fringe benefits within the meaning of Internal Revenue Code Section 132.

 “Permits” shall have the meaning set forth in Section 3.7(b). 

“Person” means an individual, a corporation, a partnership, a limited liability company, limited partnership, an
association, a trust or any other entity or organization, including a government or political subdivision or an agency or instrumentality thereof. 
  

 -6- 

 “Pre-Closing Period” shall have the meaning set forth in Section 6.1.

 “Preferred Stock” means the Series A Convertible Redeemable Preferred Stock, having the terms set forth in
the Certificate of Designations. 
 “Previously Disclosed” means (a) information set forth in or
incorporated by reference into the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2009 or its other reports and forms filed with the SEC under Sections 13(a), 14(a) or 15(d) of the Exchange Act on or after
January 1, 2010 (except for risks and forward looking information set forth in the “Risk Factors” section of such annual report or in any forward looking statement disclaimers or similar statements that are similarly non-specific and
are predictive or forward looking in nature) and (b) the information set forth in the Schedules corresponding to the provision of this Agreement to which such information relates (provided that any disclosure with respect to a particular
paragraph or Section of this Agreement or the Schedules shall be deemed to be disclosed for other paragraphs and Sections of this Agreement and the Schedules to the extent that the relevance of such disclosure would be reasonably apparent to a
reader of such disclosure). 
 “Pro Rata Share” means on any issuance date for New Securities, the number or
amount of New Securities equal to the product of (i) the total number or amount of New Securities to be issued by the Company or its applicable Subsidiary on such date and (ii) the fraction determined by dividing (A) the number of
shares of Common Stock (on an As-Converted Basis) owned by Investor immediately prior to such issuance by (B) the total number of shares of Common Stock (on an As-Converted Basis) outstanding on such date immediately prior to such issuance.

 “Prospectus Supplement” shall have the meaning set forth in Section 2.1(a). 

“Proxy Statement” shall mean the proxy statement filed with the Commission, whether in preliminary or definitive form,
relating to the Rights Offering and the transactions contemplated hereunder, together with all amendments, supplements and exhibits thereto. 

“Recommendation” has the meaning set forth in Section 2.2(a). 

“Record Date” means the date as of which each holder of Common Stock shall be offered one (1) Right for each share
of Common Stock held as of such date, which date shall be selected by the Board in accordance with the DGCL and the requirements of NASDAQ. 

“Redemption Price” shall mean the Subscription Price plus any accrued but unpaid dividends. 

“Registration Statement” shall have the meaning set forth in Section 2.1(a). 

“Renounced Business Opportunity” shall have the meaning set forth in Section 7.6. 

“Representatives” means, with respect to a Person, such Person’s directors, officers, investment bankers,
attorneys, accountants and other advisors or representatives. 
  

 -7- 

 “Required Stockholder Approval” means the affirmative vote of a majority of
the total votes cast on the Stockholder Proposal by the holders of Common Stock present in person or by proxy at the meeting of shareholders of the Company and entitled to vote. 

“Rights” means the rights to be issued by the Company to the holders of shares of its Common Stock in the Rights
Offering, which rights shall be transferable at the sole discretion of the Company. 
 “Rights Offering” shall
have the meaning set forth in Section 2.1(d). 
 “Schedules” means the disclosure schedules delivered by
the Company to Investor concurrently with the execution of this Agreement. 
 “SEC” means the Securities and
Exchange Commission. 
 “Securities Act” shall have the meaning set forth in Section 3.8(a). 

“Share Grouping” shall mean the number of shares of Common Stock determined by dividing the total number of outstanding
shares of Common Stock of the Company (excluding shares of Common Stock held in treasury) as of the Record Date by the number of Aggregate Offered Shares. 

“Stock Plans” means the Company’s 2005 Stock Option Plan, as amended prior to the date hereof, the Company’s
2006 Long-Term Incentive Plan, as amended and restated prior to the date hereof, the Non-Qualified Stock Option Agreements dated as of December 7, 2000, May 19, 2003, September 22, 2003 and April 27, 2004 between the
Company and each of J. Darby Seré and William C. Rankin, each as amended prior to the date hereof, and any subsequent equity compensation plan approved by the Company’s Stockholders. 

“Stockholder Meeting” has the meaning set forth in Section 2.2(a). 

“Stockholder Proposal” means the proposal to be presented at the Stockholders Meeting to approve the issuance of
the Preferred Stock pursuant to the Rights Offering and subject to the terms of this Agreement. 

“Stockholders” means the holders of any of the Capital Stock of the Company. 

“Subscription Notice” shall have the meaning set forth in Section 2.3(a). 

“Subscription Period” shall have the meaning set forth in Section 2.1(d). 

“Subscription Price” means $10.00 per share of Preferred Stock. 

“Subsidiary” means, for any Person, any corporation or other entity of which securities or other ownership interests
having ordinary voting power to elect a majority of the board of directors or other Persons performing similar functions (including that of a general partner) are at the time directly or indirectly owned, collectively, by such Person and any
Subsidiaries of such Person. The term Subsidiary shall include Subsidiaries of Subsidiaries (and so on). 
  

 -8- 

 “Tax” – any tax (including, but not limited to, those measured on,
measured by or referred to as income capital, capital gains, alternative or add-on minimum, gross receipts, escheat, franchise, profits, license, privilege, transfer, withholding, payroll, employment, social, excise, severance, stamp, occupation,
unemployment, disability, environmental or windfall profits, value-added, alternative or add-on minimum, estimated, sales, use, transfer, registration, property ad valorem, gift, or estate), levy, assessment, tariff, duty (including any customs
duty), deficiency, or other fee, or other tax of any kind whatsoever and any related charge or amount (including any fine, penalty, interest, or addition to tax), imposed, assessed, or collected by or under the authority of any Governmental Entity
whether disputed or not and including obligations payable pursuant to any tax-sharing agreement or any other Contract relating to the sharing or payment of any such tax, levy, assessment, tariff, duty, deficiency, or fee and obligations to indemnify
or otherwise assume or succeed to the tax liability of any other person. 
 “Tax Return” – any return
(including any information return or amended return), report, declaratory statement, schedule, notice, form, election letter, or other document, attachment or information filed with or submitted to, or required to be filed with or submitted to, any
Governmental Entity in connection with the determination, assessment, collection, or payment of any Tax or in connection with the administration, implementation, or enforcement of or compliance with any Law relating to any Tax. 

“Termination Date” shall have the meaning set forth in Section 9.1(b). 

“Total Voting Power of the Company” means the total number of votes that may be cast in the election of directors of the
Company if all Voting Stock of the Company that is outstanding at such time were present and voted at a meeting held for such purpose. 

“Vested Options” shall have the meaning set forth in Section 3.3(a). 

“Voting Stock” of any Person as of any date means the Capital Stock of such Person that is at the time entitled to vote
in the election of the board of directors of such Person. 
 Section 1.2 Interpretation. When a reference is made in
this Agreement to “Preamble,” “Articles,” “Sections” or “Annexes,” such reference shall be to a Preamble, Article or Section of, or Annex to, this Agreement, unless otherwise indicated. The terms defined in
the singular have a comparable meaning when used in the plural, and vice versa. The table of contents and headings contained in this Agreement are for reference purposes only and are not part of this Agreement. Whenever the words
“include,” “includes” or “including” are used in this Agreement, they shall be deemed followed by the words “without limitation.” No rule of construction against the draftsperson shall be applied in connection
with the interpretation or enforcement of this Agreement, as this Agreement is the product of negotiation between sophisticated parties advised by counsel. All references to “$” or “dollars” mean the lawful currency of the United
States of America. Except as expressly stated in this Agreement, all references to any statute, rule or regulation are to the statute, rule or regulation as amended, modified, supplemented or replaced from time to time (and, in the case of statutes,
include any rules and regulations promulgated under the statute) and all references to any Section of any statute, rule or regulation include any successor to the Section. References to “words of similar import” with respect to Material
Adverse Effect or materiality, does not include knowledge qualifiers. 
  

 -9- 

 ARTICLE II 

THE RIGHTS OFFERING AND BACKSTOP COMMITMENT 

Section 2.1 The Rights Offering. 

(a) As promptly as practicable after approval of the Stockholder Proposal by the Stockholders, the Company shall prepare and file with the
SEC a prospectus supplement (including each amendment thereto, the “Prospectus Supplement”) to its existing registration statement on Form S-3 (File No. 333-163193) (including each amendment and supplement thereto, including
the Prospectus Supplement, the “Registration Statement”), which shall register under the Securities Act the issuance of the shares of Preferred Stock to be issued in the Rights Offering (including the Backstop Shares). The Company
shall not permit any other securities to be offered in the Prospectus Supplement. The Prospectus Supplement (and any amendments thereto) and any amendments to the Registration Statement proposed to be filed with the SEC after the date hereof shall
be promptly provided to the Investor and its counsel and shall not be filed with the SEC without the Investor’s prior consent, which shall not be unreasonably withheld. 

(b) Investor shall provide to the Company such information as the Company may reasonably require in connection with the preparation and
filing of the Prospectus Supplement. At the time such information is provided and at the time the Prospectus Supplement is filed, no such information provided by Investor shall include an untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading. 

(c) At the time the Prospectus Supplement is filed, the Registration Statement shall comply in all material respects with the
requirements as to the use and form of Form S-3, and the Registration Statement and any Company SEC Documents incorporated by reference therein shall not include an untrue statement of a material fact or omit to state a material fact necessary to
make the statements therein, in light of the circumstances in which they were made, not misleading, provided that the Company makes no such representation with respect to information provided to it by Investor pursuant to Section 2.1(b).
The Prospectus Supplement, as of its date, shall not include an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading, provided that the Company makes no such representation with respect to information provided to it by Investor pursuant to Section 2.1(b). The previous two sentences are referred
to as the “10b-5 Representation.” 
 (d) Promptly following the filing of the Prospectus Supplement, the
Company shall distribute copies of the Prospectus Supplement to the holders of record of Common Stock as of the Record Date, and thereafter promptly commence a rights offering (such rights offering, the “Rights Offering”) on the
following terms: (i) the Company shall distribute, at no charge, one 
  

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 (1) Right to each holder of record of Common Stock for each Share Grouping held by such holder as of
the Record Date, provided that the Company shall distribute one (1) Right to any holder of less than one Share Grouping as of the Record Date; (ii) each whole Right shall entitle the holder thereof to purchase, at the election of
such holder, one share of Preferred Stock at the Subscription Price, thereby entitling such holders to subscribe for, in the aggregate, the Aggregate Offered Shares, provided that no fractional Rights and no fractional shares of Preferred
Stock shall be issued and the Subscription Price multiplied by the aggregate number of shares of Preferred Stock offered shall not exceed the aggregate offering amount described in the Prospectus Supplement; and (iii) the offering shall remain
open for no more than fifteen (15) Business Days (or such longer period as may be required by Law) (the “Subscription Period”). 

(e) The Company shall not amend any of the terms of the Rights Offering described in clauses (i) through (iii) of
Section 2.1(d) or waive any material conditions to the closing of the Rights Offering without the prior written consent of Investor. Subject to the terms and conditions of the Rights Offering, the Company shall effect the closing of the Rights
Offering as promptly as practicable following the end of the Subscription Period. 
 (f) Notwithstanding anything in this
Agreement to the contrary, the Company may terminate the Rights Offering, and fail to file or withdraw the Prospectus, at any time for any reason; provided that the failure to take commercially reasonable efforts to initiate or continue the
Rights Offering shall be deemed to be a termination thereof for purposes of Section 9.1(a). 
 (g) The Company shall pay
all of its expenses associated with the Registration Statement, the Prospectus Supplement, the Rights Offering and the other transactions contemplated hereby, including filing and printing fees, the fees and expenses of any subscription and
information agents, the fees and expenses of its counsel, accounting fees and expenses and costs associated with clearing the Preferred Stock offered for sale under applicable state securities Laws. 

Section 2.2 The Proxy Statement and the Stockholder Meeting. 

(a) The Company will take, in accordance with applicable Law and NASDAQ rules, all action necessary to call, hold and convene an
appropriate meeting of the Stockholders to consider and vote solely upon the Stockholder Proposal and any other matters required to be approved by them for consummation of the transactions contemplated by this Agreement (including any adjournment or
postponement as determined by the Board, the “Stockholder Meeting”) as promptly as reasonably practicable after the date hereof. The Board will recommend approval of the Stockholder Proposal (the “Recommendation”),
and the Company will take all reasonable lawful action to solicit approval of the Stockholder Proposal by the Stockholders. 

(b) As promptly as reasonably practicable after the date hereof, the Company will prepare and file with the SEC the Preliminary Proxy
Statement in preliminary form. The parties will cooperate with each other in the preparation of the Proxy Statement; without limiting the generality of the foregoing, Investor will furnish to the Company the information relating to Investor and its
Affiliates required by the Exchange Act to be set forth in the Proxy Statement, 
  

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 and Investor and its counsel will be given the opportunity to review and comment on the Proxy Statement, and
any amendments or supplements thereto, at least two (2) Business Days prior to each filing thereof with the SEC. The Company and Investor will each use its commercially reasonable efforts, after consultation with the other parties, to respond
promptly to any comments made by the SEC with respect to the Proxy Statement. The Company will use its commercially reasonable efforts to cause the Proxy Statement to be transmitted to the Stockholders as promptly as practicable following the filing
thereof in definitive form with the SEC. The Company will advise Investor promptly after it receives notice of any request by the SEC for amendment of the Proxy Statement or comments thereon and responses thereto or requests by the SEC for
additional information and will afford Investor and its counsel reasonable opportunity to comment on the Company’s responses thereto, prior to the filing thereof. If at any time prior to the Stockholder Meeting any information relating to the
Company or Investor, or any of their respective Affiliates, officers or directors, should be discovered by the Company or Investor that should be set forth in an amendment or supplement to the Proxy Statement, so that any of such documents would not
include any misstatement of a material fact or omit to state any material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading, the party which discovers such information will
promptly notify the other parties and an appropriate amendment or supplement describing such information will be promptly filed with the SEC and, to the extent required by Law, disseminated to the Stockholders. The Company will not file or mail any
Proxy Statement, or any amendment or supplement thereto, with respect to which Investor reasonably objects to disclosure therein specifically regarding Investor or any Representative of Investor (including the Initial Investor Designees).

 (c) Once the Stockholder Meeting has been called and noticed, the Company will not postpone or adjourn the Stockholder
Meeting past the Termination Date without the consent of Investor, which consent will not be unreasonably withheld or delayed, other than (i) for the absence of a quorum or (ii) to allow reasonable additional time for the filing and
mailing of any supplemental or amended disclosure that the Company believes in good faith is necessary under applicable Law and for such supplemental or amended disclosure to be disseminated and reviewed by the Stockholders prior to the Stockholder
Meeting; provided that if the Stockholder Meeting is so delayed to a date after the Termination Date as a result of either (i) or (ii) above, then the Termination Date will be extended to the seventh Business Day after such date.

 Section 2.3 Backstop Commitment. 

(a) Investor shall purchase from the Company, and the Company shall issue and sell to Investor, at a price per share equal to the
Subscription Price, a number of shares of Preferred Stock (the “Backstop Commitment”) equal to the lesser of (i) the number of shares of Preferred Stock with an aggregate Subscription Price of $40,000,000 and (ii) the
number of shares of Preferred Stock equal to the (x) the Aggregate Offered Shares minus (y) the number of shares of Preferred Stock subscribed for and purchased by the holders of Rights pursuant to the Rights Offering. As soon as
practicable (but not more than four (4) Business Days) after the expiration of the Rights Offering, the Company shall deliver to Investor a notice (the “Subscription Notice”) setting forth the number of shares of Preferred
Stock subscribed for in the Rights Offering and, accordingly, the number of shares of Preferred Stock to be acquired by Investor pursuant to the Backstop Commitment. The shares of Preferred Stock acquired by Investor pursuant to the Backstop
Commitment are referred to as the “Backstop Shares.” Investor shall have ten (10) Business Days after receipt of the Subscription Notice to fund the purchase of the Backstop Shares. 

 

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 (b) The Backstop Commitment shall be subject to the terms and conditions of this Agreement
and the completion of the following events; provided, however, that each of the following conditions shall be subject to waiver by Investor in its sole discretion, as provided in Section 5.3: 

(i) the expiration of the Rights Offering; 

(ii) the Required Stockholder Approval; 

(iii) the Company’s 2006 Long-Term Incentive Plan, amended and restated effective March 12, 2009, (the “Long Term
Incentive Plan”) shall have been amended on terms acceptable to Investor, and the effect of such amendment or waiver shall be that the issuance of the Preferred Stock shall not constitute or lead to a corporate change, as defined in Long
Term Incentive Plan; and 
 (iv) the instruments governing the Company’s principal bank credit facility shall have been
amended on terms reasonably acceptable to Investor (with the Investor acknowledging that the terms of the Credit Agreement executed on May 28, 2010 are acceptable to Investor) and the effect of such amendment shall be that such instruments
shall not prohibit the consummation of the transactions contemplated hereby, including without limitation the issuance of the Preferred Stock and the payment of the dividends pursuant to the terms of the Certificate of Designations on and conversion
of the Preferred Stock, in each case on the terms set forth in the Certificate of Designations. 
 (c) On the terms and subject
to the conditions set forth in this Agreement, the closing of the Backstop Commitment (the “Backstop Closing”) shall occur on the later of (i) the closing of the Rights Offering or (ii) the date that all of the conditions
to the Backstop Closing set forth in Article VI of this Agreement have been satisfied or waived (other than those conditions that by their nature are to be satisfied at the Backstop Closing), at 9:30 a.m. (Houston time) at the offices of
Thompson & Knight, 333 Clay Street, Suite 3300, Houston, Texas 77002 or such other place, time and date as shall be agreed between the Company and Investor (the date on which the Backstop Closing occurs, the “Backstop Closing
Date”). 
 (d) At the Backstop Closing (i) the Company shall deliver to Investor evidence of the issuance of the
Backstop Shares, in book-entry form, in the name of Investor against payment by or on behalf of Investor of the purchase price therefor by wire transfer of immediately available funds to the account designated by the Company in writing,
(ii) the Company shall deliver all other documents and certificates required to be delivered to Investor pursuant to Section 5.3, and (iii) Investor shall deliver all documents and certificates required to be delivered to the Company
pursuant to Section 5.2. 
  

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 (e) Backstop Fee. 

(i) On the earlier of: (i) the Backstop Closing Date or (ii) termination of this Agreement for any reason other than a breach
by Investor, the Company will pay to Investor $1,200,000, less the $250,000 commitment fee that was paid to Investor upon entering into the commitment letter (the “Backstop Fee”) in accordance with, and subject to the terms of, this
Section 2.3(e). The Company will pay the balance of the Backstop Fee by delivering to Investor $950,000 (representing $1,200,000 less the $250,000 commitment fee) by wire transfer of immediately available funds to the account designated by
Investor in writing. 
 (ii) If Investor does not purchase a number of shares of Preferred Stock with an aggregate Subscription
Price of at least $30,000,000, the Company will pay to Investor, on the Backstop Closing Date, an additional fee (the “Additional Backstop Fee”) equal to 3% of the difference between $30,000,000 and the aggregate Subscription Price
of the Preferred Stock actually purchased by Investor. 
 (f) Registration of Backstop Shares. No later than sixty
(60) Business Days after the consummation of the Backstop Closing, the Company shall cause a registration statement to be filed with the SEC that registers the Backstop Shares for resale such that, upon the effectiveness of such registration
statement, the Backstop Shares will be freely tradable by the Investor free and clear of any restrictions (including any restrictions that would otherwise be imposed due to the Investor’s ownership in the Company or its rights under this
Investment Agreement) not otherwise agreed or consented to by Investor. Such registration statement shall be subject to the Investor’s prior review and consent, not to be unreasonably withheld. The Company shall use its commercially reasonable
best efforts to have such registration statement declared effective by the SEC as soon as practicable thereafter. 
 ARTICLE
III 
 REPRESENTATIONS AND WARRANTIES OF THE COMPANY 

Except as Previously Disclosed, the Company represents and warrants to Investor that: 

Section 3.1 Organization. The Company and each of its Subsidiaries is duly incorporated and validly existing as a corporation
or other entity in good standing under the Laws of its jurisdiction of organization and has all corporate power and authority to own its property and assets and conduct its business in all material respects as currently conducted, and, except as
would not, individually or in the aggregate, have or reasonably be expected to have a Material Adverse Effect, is duly qualified as a foreign corporation for the transaction of business and is in good standing under the Laws of each other
jurisdiction in which it owns or leases properties, or conducts any business so as to require such qualification. 

Section 3.2 Authorization. The Company has all corporate power and authority to execute and deliver this Agreement and each
Ancillary Agreement to which it is a party and, subject to the Required Stockholder Approval, to perform its obligations hereunder and thereunder. The execution, delivery and performance by the Company of this Agreement and each Ancillary Agreement
to which it is a party and the consummation of the transactions contemplated hereby and thereby have been (or will be when delivered) duly authorized by all necessary corporate action on the part of the Company, and no further approval or
authorization 
  

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 is required on the part of the Company except for the Required Stockholder Approval. Subject to the Required
Stockholder Approval, this Agreement and each Ancillary Agreement to which it is a party constitute (or will constitute when delivered) the valid and binding obligation of the Company, enforceable against the Company in accordance with their terms,
except as such may be limited by bankruptcy, insolvency, fraudulent conveyance, reorganization or other similar Laws affecting creditors’ rights generally and by general equitable principles, and except as may be limited by applicable Law and
public policy. Except for the Required Stockholder Approval, no vote or consent of Stockholders is required in connection with any of the transactions contemplated by this Agreement under the Company’s certificate of incorporation, the DGCL,
the rules of NASDAQ applicable to the Company or otherwise. 
 Section 3.3 Capitalization. 

(a) As of the date hereof, (i) the Company is authorized to issue up to 125,000,000 shares of Common Stock and has approximately
39,401,508 shares of Common Stock outstanding and (ii) the Company is authorized to issue up to 10,000,000 shares of preferred stock that may be issued in one or more series and has no shares of preferred stock outstanding. As of the date
hereof there are outstanding options to purchase an aggregate of not more than 2,266,434 shares of Common Stock, all of which options are outstanding under the Stock Plans. The authorized and outstanding Common Stock shall be set forth in the
Prospectus Supplement, which shall be true and correct as of the date noted therein. The authorized and outstanding amounts of Common Stock at the Backstop Closing shall be the same as the amounts set forth in the Prospectus Supplement, except with
respect to any Common Stock issued pursuant to any employee or director stock options or incentive compensation plans prior to the Backstop Closing (the “Vested Options”). Schedule 3.3(a) sets forth the total number of Vested
Options. All of the outstanding shares of Capital Stock of the Company have been duly and validly authorized and issued and are fully paid and non-assessable and were not issued in violation of any pre-emptive rights, resale rights, rights of first
refusal, registration rights or similar rights. 
 (b) Schedule 3.3(b) sets forth a complete and correct list of all of
the Company’s Subsidiaries. Except as set forth on Schedule 3.3(b) all of the outstanding shares of Capital Stock of each of the Company’s Subsidiaries have been duly and validly authorized and issued, are fully paid and
non-assessable, were not issued in violation of any pre-emptive rights, resale rights, rights of first refusal or similar rights, and are wholly-owned by the Company, free and clear of all liens, encumbrances, equities or claims. Except as set forth
on Schedule 3.3(b), the Company does not Beneficially Own, directly or indirectly, any material equity interests of any Person that is not a Subsidiary, and is not, directly or indirectly, a partner in any partnership or party to any joint
venture. 
 Section 3.4 Valid Issuance of Shares. The Backstop Shares will be, as of the date or dates of their
issuance, duly authorized by all necessary corporate action on the part of the Company and, when issued and delivered by the Company against payment therefor as provided in this Agreement, (a) will be validly issued, fully paid and
nonassessable, (b) will not be subject to any statutory or contractual preemptive rights or other similar rights of Stockholders and (c) with respect to the shares of Preferred Stock, will have the rights set forth in the Certificate of
Designations. 
  

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 Section 3.5 Non-Contravention; Authorizations. Except as set forth on
Schedule 3.5, Neither the Company nor any of its Subsidiaries is in violation of its charter, by laws or equivalent organizational documents, or is in default (or, with the giving of notice or lapse of time, would be in default) under any
indenture, mortgage, loan or credit agreement, note, contract, franchise, lease or other instrument to which the Company or any of its Subsidiaries is a party or by which it or any of them may be bound, or to which any of the property or assets of
the Company or any of its Subsidiaries is subject (each, an “Existing Instrument”), except for such violations or defaults as would not, individually or in the aggregate, have a Material Adverse Effect. Except for the consent of the
lenders under the Company’s credit facility, the Company’s execution, delivery and performance of this Agreement and the Ancillary Agreements, issuance and delivery of the Backstop Shares, and consummation of the transactions contemplated
hereby and thereby (i) will not result in any violation of the provisions of the charter, by laws or equivalent organizational documents of the Company or any Subsidiary, (ii) will not conflict with or constitute a breach of or a default
under, result in the creation or imposition of any lien, charge or encumbrance upon any property or assets of the Company or any of its Subsidiaries pursuant to, or require the consent of any other party to, any Existing Instrument, except for such
conflicts, breaches, defaults, liens, charges or encumbrances as would not, individually or in the aggregate, have a Material Adverse Effect and (iii) will not result in any violation of any Law applicable to the Company or any Subsidiary,
except for such violations as would not, individually or in the aggregate, have a Material Adverse Effect. Except for the Supplemental Listing Application to be filed with NASDAQ, the filing of the Certificate of Designations with the Secretary of
State of the State of Delaware, the filing of the Proxy Statement in preliminary and definitive forms with the SEC, the filing of the Prospectus Supplement with the SEC, and the Required Stockholder Approval, no consent, approval, authorization or
other order of, or registration or filing with, any Governmental Entity or NASDAQ is required for the Company’s execution, delivery and performance of this Agreement and the Ancillary Agreements, issuance and delivery of the Backstop Shares, or
consummation of the transactions contemplated hereby and thereby, except such as have been obtained or made by the Company. 

Section 3.6 Litigation. Except as set forth on Schedule 3.6, there are no actions, suits or proceedings pending or, to
the Knowledge of the Company, threatened against the Company or any of its Subsidiaries which might result in any judgment against or liability of the Company or any Subsidiary in excess of $250,000 in the aggregate. Neither the Company nor any of
its Subsidiaries is in violation of any order, statute, rule or regulation of any Governmental Entity, except as would not, individually or in the aggregate, have or reasonably be expected to have a Material Adverse Effect. 

Section 3.7 Compliance with Laws; Permits. 

(a) The Company and each of its Subsidiaries conduct their businesses in compliance with all applicable Laws and NASDAQ rules and
regulations, except for any noncompliance that would not, individually or in the aggregate, have or reasonably be expected to have a Material Adverse Effect. 
  

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 (b) The Company and its Subsidiaries possess such valid and current certificates, governmental or other
authorizations, licenses, consents, notices, registrations, exemptions, variances, filings, approvals, other forms of permissions or permits (“Permits”) issued by the appropriate state, federal or foreign regulatory agencies or
bodies necessary to conduct their respective businesses as currently conducted, except with respect to any such Permits the absence of which would not have a Material Adverse Effect; and neither the Company nor any of its Subsidiaries has received
any notice of proceedings relating to the revocation or modification of, or non-compliance with, any such certificate, authorization or permit which, singly or in the aggregate, if the subject of an unfavorable decision, ruling or finding, could
have a Material Adverse Effect 
 Section 3.8 Periodic Filings; Financial Statements; Undisclosed Liabilities.

 (a) Since January 1, 2009, the Company has timely filed all reports, registrations, documents, filings, statements and
submissions, together with any required amendments thereto (collectively the “Company SEC Documents”), that were required to be filed with the SEC under the Securities Act of 1933, as amended, and the rules and regulations of the
SEC promulgated thereunder (collectively, the “Securities Act”) and the Securities Exchange Act of 1934, as amended, and the rules and regulations of the SEC promulgated thereunder (collectively, the “Exchange
Act”). As of their respective filing dates, the Company SEC Documents complied in all material respects with the requirements of the Securities Act and the Exchange Act, as applicable. 

(b) The Company’s consolidated financial statements, including the notes thereto, included or incorporated by reference in the
Company SEC Documents (the “Company Financial Statements”) have been prepared in accordance with GAAP consistently applied (except as may be indicated in the notes and schedules thereto) during the periods involved and present
fairly in all material respects the Company’s consolidated financial position at the dates thereof and of its operations and cash flows for the periods specified therein (subject to the absence of notes and year-end adjustments in the case of
unaudited statements). 
 (c) Neither the Company nor any of its Subsidiaries has any liabilities or obligations (accrued,
absolute, contingent or otherwise) that are not disclosed in the consolidated balance sheet in the most recent Company Financial Statements other than liabilities or obligations (A) incurred in the ordinary course of business consistent with
past practice since the date of the consolidated balance sheet in the most recent Company Financial Statements and (B) that would not, individually or in the aggregate, have or reasonably be expected to have a Material Adverse Effect.

 (d) The Company (A) has implemented and maintains disclosure controls and procedures (as defined in Rule 13a-15(e) of
the Exchange Act) to ensure that material information relating to the Company, including its consolidated Subsidiaries, is made known to the chief executive officer and the chief financial officer of the Company by others within those entities, and
(B) has disclosed, based on its most recent evaluation prior to the date hereof, to the Company’s outside auditors and the Audit Committee (1) any significant deficiencies and material weaknesses in the design or operation of internal
controls over financial reporting (as defined in Rule 13a-15(f) of the Exchange Act) that are reasonably likely to adversely affect the Company’s ability to record, process, summarize and report financial information and (2) any fraud,
whether or not material, that involves management or other Employees who have a 
  

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 significant role in the Company’s internal controls over financial reporting. As of the date hereof,
the Company’s outside auditors and its chief executive officer and chief financial officer will be able to give the certifications and attestations required pursuant to the rules and regulations adopted pursuant to Section 404 of the
Sarbanes-Oxley Act of 2002, without qualification, when next due. 
 Section 3.9 Absence of Certain Changes. Except
as set forth on Schedule 3.9, since December 31, 2009, the Company and its Subsidiaries, taken as a whole, have conducted their business in the ordinary course of business, consistent with past practice. From December 31, 2009 to
the date hereof, there has not been any Material Adverse Effect or any Effects that, individually or in the aggregate, has had or would reasonably be expected to have a Material Adverse Effect. 

Section 3.10 Brokers and Finders. Except for Evercore Group L.L.C., the fees of which will be paid by the Company, neither
the Company nor any of its Subsidiaries has employed any broker or finder or incurred any liability for any financial advisory fee, brokerage fee, commission or finder’s fee, and no broker or finder has acted directly or indirectly for the
Company or any of its Subsidiaries in connection with this Agreement or the transactions contemplated hereby. 

Section 3.11 Contracts. As of the date hereof, neither the Company nor any of its Subsidiaries is a party to or bound by any
Contract that is to be performed in full or in part after the date of this Agreement that has not been filed or incorporated by reference in the Company SEC Documents, except for this Agreement, each Ancillary Agreement and the documents set forth
on Schedule 3.11. Neither the Company nor any of its Subsidiaries is a party to or bound by any Contract that contains any provision that would prevent Investor or any of its Affiliates in their capacity as such from operating in a particular
line or lines of business after consummation of the transactions contemplated hereby. 
 Section 3.12 Employee
Benefits. 
 (a) Except as set forth on Schedule 3.12(a), since March 31, 2010, the Company has not made any
payment (whether of severance pay, bonus or otherwise), acceleration, forgiveness of indebtedness, vesting, distribution, increase in benefits or obligation to fund benefits with respect to any Employee. 

(b) Except as set forth on Schedule 3.12(b), since March 31, 2010, the Company has not created or incurred any obligation,
arrangement, or customary practice, whether or not legally enforceable, to provide any benefits, other than salary, as compensation for services rendered to present or former directors, employees, or agent. 

(c) Except as set forth on Schedule 3.12(c), no payment (whether of severance pay, bonus or otherwise), acceleration, forgiveness
of indebtedness, vesting, distribution, increase in benefits or obligation to fund benefits with respect to any Employee will occur solely as a result of either the execution of or the performance of the transactions contemplated by this Agreement.
Except as set forth on Schedule 3.12(c), no payment or benefit that will be made by the Company or any of its subsidiaries with respect to any Employee, solely as a result of either the execution of or the performance of the transactions
contemplated in this Agreement, will be characterized as an “excess parachute payment,” within the meaning of Section 280G(b)(1) of the Internal Revenue Code. 

 

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 (d) Except as will not result in a Material Adverse Effect, the Company represents and
warrants that neither the execution of, nor the performance of the transactions contemplated by, this Agreement will result in a violation, in any material respect, of any Law (including ERISA and the regulations promulgated thereunder). 

(e) Schedule 3.12(e) contains a complete and accurate list of all Employee Benefit Plans. 

(f) Except as will not result in a Material Adverse Effect or except as set forth on Schedule 3.12(f): 

(i) The Company has never had, nor does it presently have, any ERISA Affiliate. 

(ii) The Company has performed all of its obligations under all Employee Benefit Plans. The Company has made appropriate entries in its
financial records and statements for all obligations and liabilities under such Employee Benefit Plans that have accrued but are not due. 

(iii) The Company is, and each Employee Benefit Plan is, in full compliance with ERISA, the Internal Revenue Code, and other applicable
Laws. Each Employee Benefit Plan that is a “group health plan” (as defined in Section 607(1) of ERISA or Internal Revenue Code section 5001(b)(1)) has been operated at all times with respect to Company employees in compliance with the
provisions of COBRA, HIPAA (as defined in the provisions of the Internal Revenue Code and ERISA enacted by the Health Insurance Portability and Accountability Act of 1996), and any similar applicable state law. The Company has never established,
maintained, contributed to or otherwise participated in, or had an obligation to maintain, contribute to, or otherwise participate in any employee welfare benefit plan (as defined in ERISA section 3(1)) or any “voluntary employees’
beneficiary association” (within the meaning of Internal Revenue Code section 501(c)(9)), any organization or trust described in Internal Revenue Code sections 501(c)(17) or 501(c)(20), or any “welfare benefit fund” described in
Internal Revenue Code section 419(e). 
 (iv) No transaction prohibited by ERISA Section 406 and no “prohibited
transaction” under Internal Revenue Code section 4975(c) has occurred with respect to any Employee Benefit Plan. 
 (v)
The Company has no liability to the Internal Revenue Service with respect to any Employee Benefit Plan, including any liability imposed by Chapter 43 of the Internal Revenue Code. 

(vi) To the extent the Company is responsible for any filings required by ERISA and the Internal Revenue Code as to each Employee
Benefit Plan, all such filings have been timely filed, and any notices and disclosures to participants required by either ERISA or the Internal Revenue Code to be provided by the Company have been timely provided. 

 

 -19- 

 (vii) All contributions and payments by Company made or accrued with respect to all
Employee Benefit Plans are deductible under Internal Revenue Code section 162 or section 404. No amount, or any asset of any Employee Benefit Plan, is subject to tax as unrelated business taxable income. 

(viii) Other than claims for benefits submitted by participants or beneficiaries, no claim against, or legal proceeding involving, any
Employee Benefit Plan has been made or is threatened. There are no claims against the Company for eligibility to participate in any Employee Benefit Plans by any individual who has been classified by the Company as other than a common law employee
(such as an independent contractor, leased employee or consultant), and there are no facts that would be reasonably expected to give rise to such a claim if any individual so classified is subsequently reclassified (whether by the Company, a
Governmental Body or regulatory authority or otherwise) as an employee of the Company. 
 (ix) to the extent required under
ERISA Section 601 et seq. and Internal Revenue Code section 4980B and applicable state law, the Company does not provide health or welfare benefits for any retired or former employee of the Company and neither is obligated to provide health or
welfare benefits to any active employee of the Company following such employee’s retirement or other termination of service. 

(x) The consummation of the transactions contemplated by this Agreement will not result in the payment, vesting, or acceleration of any
benefit. 
 Section 3.13 Title to Properties. The Company and each of its Subsidiaries have defensible title to all
the properties and assets necessary to conduct their business as currently conducted, in each case free and clear of any security interests, mortgages, liens, encumbrances, equities, claims and other defects, except (a) pursuant to the terms of
the Credit Agreement and related documents, (b) associated with obligations reflected in the Company’s reserve report as of December 31, 2009, (c) such as do not materially and adversely affect the value of such properties or
assets or (d) such as do not materially interfere with the current or currently proposed use of such properties or assets by the Company or such Subsidiary. The real property, improvements, equipment and personal property held under lease by
the Company and each Subsidiary are held under valid and enforceable leases, with such exceptions as are not material and do not materially interfere with the current or currently proposed use of such real property, improvements, equipment or
personal property by the Company or such Subsidiary. 
 Section 3.14 Insurance. The Company and each of its
Subsidiaries are insured by recognized, financially sound institutions with policies in such amounts and with such deductibles and covering such risks as are generally deemed adequate and customary for their businesses including, but not limited to,
policies covering real and personal property owned or leased by the Company and its Subsidiaries against theft, damage, destruction and acts of vandalism. Except as set forth on Schedule 3.14, to the Company’s Knowledge, the Company or
any Subsidiary (to the extent applicable) will be able (i) to renew its existing insurance coverage 
  

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 as and when such policies expire or (ii) in the event the Company (or any such Subsidiary) cannot renew
its existing coverage, to obtain comparable coverage from similar institutions as may be necessary or appropriate to conduct its business as now conducted and at a cost that would not have a Material Adverse Effect. Except as set forth on
Schedule 3.14, the Company or any such Subsidiary (to the extent applicable) has: (i) paid all premiums due under each policy; and (ii) the Company or any Subsidiary (to the extent applicable) has not received any notice of any
increase of premiums with respect to any policies of insurance. 
 Section 3.15 Environmental Compliance. Except as
disclosed in the Registration Statement or Prospectus and as would not, individually or in the aggregate, have a Material Adverse Effect: (i) neither the Company nor any of its Subsidiaries is in violation of any Law relating to pollution or
the protection of human health or the environment (including, without limitation, ambient air, surface water, groundwater, land surface or subsurface strata) or wildlife, employee health or safety including without limitation laws and regulations
relating to emissions, discharges, disposal, spills, releases or threatened releases of chemicals, pollutants, contaminants, wastes, toxic substances, hazardous substances, petroleum and petroleum products (collectively, “Materials of
Environmental Concern”), or otherwise relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling of Materials of Environmental Concern (collectively, “Environmental
Laws”), which violation includes, but is not limited to, the failure to obtain or noncompliance with any Permits required for the operation of the business of the Company or its Subsidiaries under applicable Environmental Laws, or
noncompliance with the terms and conditions thereof, nor has the Company or any of its Subsidiaries received any written communication, whether from a governmental authority, citizens group, Employee or otherwise, that alleges that the Company or
any of its Subsidiaries is in violation of or is responsible for any liability under or pursuant to any Environmental Law; (ii) there is no claim, action or cause of action filed with a court or governmental authority, no investigation with
respect to which the Company has received written notice, and no written notice by any Person alleging potential liability for investigatory costs, cleanup costs, governmental response costs, natural resources damages, property damages, personal
injuries, attorneys’ fees or penalties arising out of, based on or resulting from the presence, or release into the environment, of any Material of Environmental Concern at any location owned, leased or operated by the Company or any of its
subsidiaries, now or in the past (collectively, “Environmental Claims”), pending or, to the Company’s Knowledge, threatened against the Company or any of its Subsidiaries or any Person whose liability for any Environmental
Claim the Company or any of its Subsidiaries has retained or assumed either contractually or by operation of law; (iii) to the Company’s Knowledge, there are no past or present actions, activities, circumstances, conditions, events or
incidents, including, without limitation, the release, emission, discharge, presence or disposal of any Material of Environmental Concern, that reasonably could result in a violation of or liability under any Environmental Law or form the basis of a
bona fide Environmental Claim against the Company or any of its Subsidiaries or against any Person whose liability for any Environmental Claim the Company or any of its Subsidiaries has retained or assumed either contractually or by operation of
law; (iv) the Company and its subsidiaries have provided or made available to Investor all material studies, reports, communications, data or other analysis that relate to any liability, potential liability, claim, action, cause of action,
violation, Permit or any other matter relating to or arising in connection with any Environmental Law; and (v) to the Knowledge of the Company and its subsidiaries, no underground storage tanks are or were located on any property where the
Company or its subsidiaries are conducting or have conducted business, except for such underground storage tanks maintained or removed in accordance with all Environmental Laws. 

 

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 Section 3.16 Intellectual Property. Except as set forth on Schedule 3.16,
the Company represents and warrants that it and its Subsidiaries do not own any United States or foreign: (i) patents or patent applications of record; (ii) fictional business names, business names, brands, trade names, trade dresses,
industrial designs, logos, taglines, domain names and registered or unregistered trademarks and service marks; and/or (iii) copyrights or copyright applications of record. The Company has not violated the proprietary intellectual property
rights of any third party and, to the Company’s Knowledge, no third party is in violation of the Company’s proprietary intellectual property rights. The Company either owns or has the legal right to use all intellectual property used in
its business. 
 Section 3.17 Foreign Corrupt Practices Act. The Company agrees it and its agents, Representatives,
employees and Subsidiaries has and, during the term of this Agreement, shall fully comply with the Foreign Corrupt Practices Act (the “FCPA”). Without limiting the generality of the foregoing, The Company warrants that no commission
nor any portion thereof, nor any other money or thing of value has been or will be paid, offered, given or promised by the Company or any of its agents, Representatives or employees, directly or indirectly, to any official or employee of any
government-controlled entity, any political party or official thereof, or any candidate for political office, for purposes of: influencing any act or decision of such official, employee, person, party or candidate, in his/her or its official
capacity in order to obtain or retain business, direct business to any party, obtain favorable treatment or secure an improper advantage. 

Section 3.18 Taxes. Except as will not result in a Material Adverse Effect and except as set forth on Schedule 3.18:

 (a) The Company has timely filed all income Tax Returns and all other material Tax Returns required to be filed by it. All
such Tax Returns were true, correct and complete in all material respects, and all material Taxes shown as due or payable on such Tax Returns have been timely paid. 

(b) The Company has withheld all material Taxes required to have been withheld and has timely paid such withholdings to the respective
Governmental Entity. The Company’s employee business expense reimbursements, including automobile and fuel allowances, have been provided either (i) through an arrangement that meets the requirements for an “accountable plan”
described in Section 5 of IRS Publication 15 (Circular E), or (ii) through an arrangement that is a “nonaccountable plan” described in Section 5 of IRS Publication 15 (Circular E) and pursuant to which employee business
expense allowances have been reported as supplemental wages with respect to which all applicable Taxes have been calculated, withheld and paid. 

(c) The federal and state income Tax Returns of the Company required for the taxable year ending December 31, 2009 have been filed
and the Company has delivered or made available to Investor copies of, and Schedule 3.18(c) contains a complete and accurate list of, all income Tax Returns and all other material Tax Returns filed by the Company since December 31, 2007
and states whether those returns have been audited or are the subject of a current audit. 
  

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 (d) There is no dispute or claim concerning any Tax liability of the Company either claimed
or raised by any Governmental Authority in writing or with respect to which the Company has Knowledge. There are no audits or other examination of the Tax Returns and no other investigations by any Tax agency or authority pending, or to the
Knowledge of the Company, threatened. The Company is not a party to any action or proceeding with respect to Tax, nor, to the Knowledge of the Company, is one pending or threatened. 

(e) The Company (i) has not been a member of an affiliated group (within the meaning of Section 1504 of the Internal Revenue
Code) filing a consolidated federal Tax Return or (ii) has no liability for the Taxes of any Person under Treasury Regulations Section 1.1502-6 (or any similar provision of state, local or non-U.S. law), as a transferee or successor, by
contract, or otherwise. 
 (f) There are no joint ventures, partnerships, limited liability companies, or other arrangements or
contracts to which the Company is a party and that could be treated as a partnership for federal income Tax purposes. 
 (g)
Except as set forth on Schedule 3.18(g), the Company does not have, nor has it ever had, a “permanent establishment” in any foreign country, as such term is defined in any applicable Tax treaty or convention between the United
States and such foreign country, nor has it otherwise taken steps that have exposed, or will expose, it to the taxing jurisdiction of a foreign country. 

(h) No written claim has been made in the last five (5) years by a Governmental Entity in a jurisdiction where the Company does not
file Tax Returns that the Company is or may be subject to taxation by that jurisdiction nor, to the Knowledge of the Company, is there any factual or legal basis for any such claim. 

(i) The Company has not waived any statute of limitations with respect to Taxes or agreed to any extension of time with respect to a Tax
assessment or deficiency. The Company is not currently the beneficiary of any extensions of time within which to file any Tax Return. 

(j) The Company is not a party to, nor is it bound by, any Tax allocation or sharing agreement that will impose any liability on the
Company subsequent to the Backstop Closing Date. 
 (k) The Company has not distributed stock of another corporation, or had its
stock distributed by another corporation, in a transaction that was purported or intended to be governed in whole or in part by Section 355 or 361 of the Internal Revenue Code. 

(l) There are no liens for Taxes (other than Taxes not yet due and payable) upon any of the assets of the Company. 

 

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 (m) The Company has not engaged in any transaction that, as of the date hereof, is a
“listed transaction” under Treasury Regulations Section 1.6011-4(b)(2). The Company is not or has not been a party to any “reportable transaction” as that term is defined in Section 6707A(c) of the Internal Revenue Code
and Treasury Regulations Section 1.6011-4(b). 
 (n) The Company will not be required to include any item of income in, or
exclude any item of deduction from, taxable income for any taxable period (or portion thereof) ending after the Backstop Closing Date as a result of any: 

(i) change in method of accounting for a taxable period ending on or prior to the Backstop Closing Date; 

(ii) “closing agreement” as described in Internal Revenue Code Section 7121 (or any corresponding or similar provision of
state, local or non-U.S. income Tax law) executed on or prior to the Backstop Closing Date; 
 (iii) installment sale or open
transaction disposition made on or prior to the Backstop Closing Date; 
 (iv) prepaid amount received on or prior to the
Backstop Closing Date; or 
 (o) The Company has not made or become obligated to make, nor will the Company, as a result of any
event connected with any transaction contemplated herein and/or any termination of employment related to such transaction, make or become obligated to make any excess “parachute payment,” as defined in section 280G of the Internal Revenue
Code (without regard to subsection (b)(4) thereof). 
 Section 3.19 Complete Disclosure. Other than as disclosed in
this Agreement or in an Ancillary Agreement, there is no material fact regarding the Company or its business necessary to make the representations made in such agreements by the Company not misleading. 

Section 3.20 No Further Reliance. The Company acknowledges that it is not relying upon any representation or warranty made by
Investor not set forth in this Agreement or in an Ancillary Agreement. 
  

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 ARTICLE IV 

REPRESENTATIONS AND WARRANTIES OF INVESTOR 

Investor represents and warrants to the Company that: 

Section 4.1 Organization and Authority. Investor is duly organized and registered and is validly existing and in good
standing as a limited liability company under the Laws of the jurisdiction of its formation, has all limited liability company power and authority to own its property and assets and conduct its business in all material respects as currently
conducted, and has been duly qualified as a foreign limited liability company for the transaction of business in, and is in good standing under the Laws of, each other jurisdiction in which it owns or leases properties, or conducts any business so
as to require such qualification, in each case, other than such failure to qualify or be in good standing as shall not, individually or in the aggregate, have a Material Adverse Effect on Investor. 

Section 4.2 Authorization. Investor has all corporate power and authority to execute and deliver this Agreement and to
perform its obligations under this Agreement. The execution, delivery and performance by Investor of this Agreement and the consummation of the transactions contemplated by this Agreement have been duly authorized by Investor, and no further
approval or authorization is required on the part of Investor. This Agreement constitutes the valid and binding obligation of Investor, enforceable against Investor in accordance with its terms, except as such may be limited by bankruptcy,
insolvency, fraudulent conveyance, reorganization or other similar Laws affecting creditors’ rights generally and by general equitable principles and except as may be limited by applicable Law and public policy. 

Section 4.3 Non-Contravention; Governmental Authorization. 

(a) Except as would not, individually or in the aggregate, reasonably be expected to materially and adversely affect Investor’s
ability to perform its obligations under this Agreement or consummate the transactions contemplated hereby on a timely basis, the execution, delivery and performance by Investor of this Agreement and the consummation of the transactions contemplated
hereby will not: (i) conflict with or violate any provision of its limited liability company agreement or similar governing documents; or (ii) assuming compliance with the statutes and regulations referred to in Section 4.3(b),
(A) conflict with or result in any breach of, or constitute a default (or an event which with notice or lapse of time or both would become a default) under, or give rise to any right to termination, acceleration or cancellation under, any
agreement, lease, mortgage, license, indenture or any other contract to which Investor is a party or by which its properties may be bound or affected; or (B) conflict with or violate any Law applicable to Investor. 

(b) Each approval, consent, order, authorization, designation, declaration or filing by or with any regulatory, administrative or other
Governmental Entity necessary in connection with the execution and delivery by Investor of this Agreement and the consummation of the transactions contemplated hereby (except for (i) such additional steps as may be required by NASDAQ or such
additional steps as may be necessary to register or qualify the Backstop Shares under federal securities, state securities or blue sky Laws and (ii) the filing of the 
  

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 Certificate of Designations with the Secretary of State of the State of Delaware) has been obtained or made
and is in full force and effect, except as would not, individually or in the aggregate, reasonably be expected to materially and adversely affect Investor’s ability to perform its obligations under this Agreement or consummate the transactions
contemplated hereby on a timely basis. 
 (c) Neither Investor nor, to the best of Investor’s Knowledge, any employee or
agent of Investor, has made any contribution or other payment to any official of, or candidate for, any federal, state or foreign office in violation of any applicable Law. 

Section 4.4 Securities Act Compliance. The Backstop Shares being acquired by Investor hereunder are being acquired for its
own account, for the purpose of investment and not with a view to or for sale in connection with any public resale or distribution thereof in violation of applicable securities Laws. Investor is an “accredited investor” within the meaning
of Rule 501(a) promulgated under the Securities Act and is knowledgeable, sophisticated and experienced in business and financial matters, and it fully understands the limitations on the ownership and sale, transfer or other disposition of the
Backstop Shares. Investor is able to bear the financial risk of its Investment in the Backstop Shares and is able to afford the complete loss of such Investment. Investor has been afforded access to information about the Company and its financial
condition and business, sufficient to enable Investor to evaluate its Investment in the Backstop Shares. Investor understands that the Backstop Shares may be resold only if registered pursuant to the provisions of the Securities Act or if an
exemption from registration is available, except under circumstances where neither such registration nor such an exemption is required by Law. 

Section 4.5 Financial Capability. At the Backstop Closing, Investor will have available funds necessary to consummate the
Backstop Closing on the terms and conditions contemplated by this Agreement. 
 Section 4.6 Brokers and Finders.
Neither Investor nor any of its Affiliates or any of their respective officers or directors has employed any broker or finder or incurred any liability for any financial advisory fee, brokerage fee, commission or finder’s fee, and no broker or
finder has acted directly or indirectly for Investor or any of its Affiliates or any of their respective officers or directors in connection with this Agreement or the transactions contemplated hereby. 

Section 4.7 No Further Reliance. Investor acknowledges that it is not relying upon any representation or warranty made by the
Company other than those set forth in: (i) this Agreement (including the Schedules hereto); (ii) an Ancillary Agreement; or (iii) the reports and forms filed with the SEC as described in clause (a) of the definition of
“Previously Disclosed”. Investor acknowledges that it has conducted such review and analysis of the business, assets, condition, operations and prospects of the Company and its Subsidiaries that Investor considers sufficient for purposes
of the purchase of the Backstop Shares. 
  

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 ARTICLE V 

CONDITIONS TO CLOSING 

Section 5.1 Conditions to the Obligations of the Company and Investor. The obligations of the Company and Investor to effect
the Backstop Closing shall be subject to the following conditions: 
 (a) no provision of any applicable Law and no judgment,
temporary restraining order, preliminary or permanent injunction, order or decree shall prohibit the consummation of any of the transactions contemplated hereby; and 

(b) the Rights Offering shall have been consummated not later than the Backstop Closing Date in accordance in all material respects with
the terms set forth in Section 2.1(d) hereof and in accordance with the Securities Act. 
 Section 5.2 Conditions
to the Obligations of the Company. The obligations of the Company to effect the Backstop Closing shall be subject to the following conditions: 

(a) all representations and warranties of Investor in this Agreement shall be true and correct as of the date hereof and as of the
Backstop Closing Date (except to the extent that any such representation and warranty expressly speaks as of an earlier date, in which case such representation and warranty shall be true and correct as of such earlier date); 

(b) Investor shall have performed in all material respects all of the obligations required to be performed by it hereunder at or prior to
the Backstop Closing; 
 (c) the Company shall have received a certificate, signed by an officer of Investor, certifying as to
the matters set forth in Section 5.2(a) and Section 5.2(b); and 
 (d) the Company shall have received a certificate,
signed by an officer of Investor, certifying the percentage of Voting Stock of the Company Beneficially Owned as of the close of business on the Business Day immediately prior to the Backstop Closing Date by Investor and its Affiliates (such amount
the “Certified Ownership Percentage”). 
 Section 5.3 Conditions to the Obligations of Investor.
The obligations of Investor to effect the Backstop Closing shall be subject to the following conditions: 
 (a) Each of the
Registration Statement and Prospectus Supplement shall conform in all material respects on the Backstop Closing Date, and any amendment to the Registration Statement filed after the date hereof shall conform in all material respects when filed, to
the requirements of the Securities Act and the terms of this Agreement. 
 (b) All representations and warranties of the Company
contained in this Agreement shall be true and correct in all material respects as of the date hereof and as of the Backstop Closing Date (except to the extent that any such representation and warranty expressly speaks as of an earlier date, in which
case such representation and warranty shall be true and correct as of such earlier date); provided however that any representation or warranty qualified by materiality, Material Adverse Effect or words of similar import shall be true and correct in
all respects as of such dates; 
  

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 (c) the Company shall have performed in all material respects all of its obligations
required to be performed by it hereunder at or prior to the Backstop Closing; 
 (d) the conditions set forth in
Section 2.3(b) shall have been satisfied; 
 (e) Investor shall have received a certificate, signed by an officer of the
Company, certifying as to the matters set forth in Section 5.3(a) and Section 5.3(b); 
 (f) Investor shall have
received a certificate of the secretary or assistant secretary of the Company, dated as of the Backstop Closing, certifying (A) that attached thereto is a true and complete copy of the current certificate of incorporation and the bylaws of the
Company certified (to the extent applicable) as of a recent date by the Secretary of State of the state of its organization, (B) that attached thereto is a true and complete copy of any resolutions duly adopted by the board of directors and/or
the Stockholders authorizing the execution, delivery and performance of the Agreement and each Ancillary Agreement to which the Company is a party and that such resolutions have not been modified, rescinded or amended and are in full force and
effect and (C) as to the incumbency and specimen signature of each officer executing any Agreement and/or Ancillary Agreement or any other document delivered in connection herewith on behalf of the Company (together with a certificate of
another officer as to the incumbency and specimen signature of the secretary or assistant secretary executing the certificate in this clause (f)); 

(g) Investor shall have received a certificate as to the good standing or equivalent of the Company and each Subsidiary; 

(h) the shares of Common Stock to be issued upon conversion of the Preferred Stock shall have been approved for listing on NASDAQ,
subject to official notice of issuance; and 
 (i) the Initial Investor Designees as Investor is entitled to designate pursuant
to Section 7.2 shall have been appointed to the Board effective immediately following the Backstop Closing, and the Company shall have entered into customary indemnification agreements with such Initial Investor Designees at or prior to their
appointment; and 
 (j) legal counsel to the Company shall have issued a legal opinion to the Investor substantially in the form
set forth in Exhibit II that opines on the organization and authorization of the Company, the due execution and delivery of this Agreement and the Ancillary Agreements by the Company and the enforceability of this Agreement and the Ancillary
Agreements by the Investor. 
  

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 ARTICLE VI 

COVENANTS 

Section 6.1 Conduct of the Business. Prior to the earlier of the Backstop Closing and the termination of this Agreement
pursuant to Section 9.1 (the “Pre-Closing Period”), the Company shall not, and shall cause each of its Subsidiaries not to, take any actions outside of the ordinary course of business consistent with past practice that are
material to the Company and its Subsidiaries, taken as a whole, without the prior written consent of Investor, which consent shall not be unreasonably withheld or delayed. During the Pre-Closing Period, (a) except as contemplated by this
Agreement or the Ancillary Agreements, as required by Law or as set forth on Schedule 6.1, the Company shall not, and shall cause each of its Subsidiaries not to (i) declare or pay any dividend or distribution on its Capital Stock
(except for the Rights and any dividends paid by any direct or indirect wholly owned Subsidiary of the Company to the Company or to any other direct or indirect wholly owned Subsidiary of the Company); (ii) adjust, split, combine or reclassify
or otherwise amend the terms of the Capital Stock of the Company or any debt securities convertible or exchangeable into Capital Stock of the Company; (iii) repurchase, redeem, purchase, acquire, encumber, pledge, dispose of or otherwise
transfer, directly or indirectly, any of the Capital Stock of it or any of its Subsidiaries or any debt securities convertible or exchangeable into Capital Stock of it or any of its Subsidiaries, other than repurchases, redemptions, purchases or
acquisitions of any such Capital Stock by, or transfers or dispositions of any such Capital Stock to, the Company or any of its wholly owned Subsidiaries; (iv) unless required in connection with the exercise or conversion of any options or
rights under the terms of any Stock Plan or agreement ancillary thereto, issue, grant, deliver or sell any Capital Stock of it or any of its Subsidiaries (other than the Rights or the Preferred Stock issuable in the Rights Offering) or any options,
warrants or other equity or debt securities convertible or exchangeable into Capital Stock of it or any of its Subsidiaries; (v) make any amendments to their organizational documents (other than the filing of the Certificate of Designations
with the Secretary of State of the State of Delaware and any other amendments or filings necessary for the Company to perform its obligations hereunder); (vi) sell, lease or otherwise dispose of a material amount of assets or securities,
including by merger, consolidation, asset sale or other business combination; (vii) make any material acquisitions of any property or assets by purchase or other acquisition of shares or other equity interests, or by merger, consolidation or
other business combination, from or with any Person (except for acquisitions made by the Company or any direct or indirect wholly owned Subsidiary of the Company from the Company or any other direct or indirect wholly owned Subsidiary of the
Company); (viii) adopt a plan of complete or partial liquidation or resolutions providing for a complete or partial liquidation, dissolution, restructuring, recapitalization or other reorganization; or (ix) agree or commit to do any of the
foregoing and (b) if the Company takes any action (other than with respect to the issuance of the Rights or the Preferred Stock issuable in the Rights Offering) that would require any anti-dilution adjustments to be made under the Certificate
of Designations as if it were in effect at the time of such action, the Company shall make such appropriate adjustments (the “Adjustments”). 

Section 6.2 Securities to be Issued. The Backstop Shares to be issued to Investor pursuant to this Agreement shall be subject
to the terms and provisions of the Company’s certificate of incorporation and the Certificate of Designations. 
  

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 Section 6.3 Efforts. From the date hereof until the earlier of the Backstop
Closing and the date that this Agreement is terminated pursuant to Section 9.1, Investor and the Company shall (a) use commercially reasonable efforts to cooperate with each other in (i) determining whether any filings are required to
be made with, or consents, permits, authorizations, waivers, clearances, approvals, or expirations or terminations of waiting periods are required to be obtained from, any other Governmental Entities in connection with the execution and delivery of
this Agreement and the consummation of the transactions contemplated hereby and (ii) timely making all such filings and timely obtaining all such consents, permits, authorizations, waivers, clearances, approvals, expirations or terminations;
(b) use commercially reasonable efforts to supply to any Governmental Entity as promptly as practicable any additional information or documents that may be requested pursuant to any Law or by such Governmental Entity; (c) promptly inform
the other party of any substantive meeting, discussion, or communication with any Governmental Entity (and supply to the other party any written communication or other written correspondence or memoranda prepared for such purpose, subject to
applicable Laws relating to the exchange of information) in respect of any filing, investigation or inquiry concerning the transactions contemplated hereby, and consult with the other party in advance of, and to the extent permitted by such
Governmental Entity, give the other party the opportunity to attend and participate in, such meeting, discussion or communication; and (d) use commercially reasonable efforts to take, or cause to be taken, all other actions and do, or cause to
be done, all other things necessary, proper or advisable to consummate the Backstop Closing and the transactions contemplated hereby. Notwithstanding the foregoing, nothing in this Agreement shall be deemed to require Investor or any of its
Affiliates to enter into any agreement with any Governmental Entity, or to consent to any authorization, consent or approval of any Governmental Entity, requiring Investor or any of its Affiliates to hold, separate or divest, or to restrict the
dominion or Control of, any of its assets or businesses or any of the stock, assets or business of Investor, the Company or any of their Affiliates. 

Section 6.4 Publicity. On the date hereof or promptly thereafter, the Company shall issue a press release in the form agreed
to by the Company and Investor. No other public release or announcement concerning the transactions contemplated hereby shall be issued by the parties without the prior consent of the other parties (which consent shall not be unreasonably withheld,
conditioned or delayed), except for any such release or announcement that may be required by Law or the rules and regulations of NASDAQ, in which case the party required to make the release or announcement shall, to the extent reasonably
practicable, allow the other party reasonable time to comment on such release or announcement in advance of its issuance. The provisions of this Section 6.4 shall not restrict the ability of any party to summarize or describe the transactions
contemplated by this Agreement in any prospectus or similar offering document or other report required by Law or the rules and regulations of NASDAQ so long as the other parties are provided a reasonable opportunity to comment on such disclosure in
advance. 
 Section 6.5 Share Listing. The Company shall, as promptly as practicable after the date of this
Agreement, cause the Common Stock issuable upon conversion of the Preferred Stock to be issued in the Rights Offering (including pursuant to the Backstop Commitment) to be approved for listing on NASDAQ, subject to official notice of issuance.

  

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 Section 6.6 Access. From the date hereof until the earlier of the Backstop
Closing and the date that this Agreement is terminated pursuant to Section 9.1, subject to applicable Law, the Company shall grant Investor, upon reasonable advance notice, such access to its books, records, properties and such other
information as Investor may reasonably request, provided that any investigation of such information shall be conducted during normal business hours and in such manner as not to interfere with the conduct of the business of the Company, and
provided, further, that the Company shall not be required to disclose any information to the extent (a) prohibited by applicable Law or NASDAQ rule or regulation or (b) such disclosure could reasonably be expected to cause a
violation of any agreement to which the Company or any of its Subsidiaries is a party or could reasonably be expected to cause a risk of a loss of privilege to the Company or any of its Subsidiaries. 

Section 6.7 Termination of Confidentiality Agreement; Confidentiality. 

(a) From the date hereof until the first anniversary of the date hereof, Investor will, and will cause its Representatives, to keep all
information regarding the Company (whether prepared by the Company, its Representatives or otherwise, whether in oral, written, electronic or other form) received prior to or pursuant to this Agreement (collectively, the
“Information”) confidential, except (i) Information that becomes generally available to the public other than as a result of a disclosure in violation of this Agreement by Investor or its Representatives, (ii) Information
that was available to Investor on a nonconfidential basis prior to its disclosure, directly or indirectly, by the Company or its Representatives, (iii) Information that becomes available to Investor on a nonconfidential basis from a Person
other than the Company who, to the Knowledge of Investor, is not bound by a confidentiality obligation to the Company or otherwise prohibited from transferring such information to Investor, (iv) Information that the Company agrees in writing
may be disclosed, (v) information that Investor can demonstrate has been independently developed or derived without reliance on any Information, or (vi) Information that Investor is required by Law, legal process or regulatory authority to
disclose. 
 Section 6.8 Right to Use Names and Logos. From and after the earlier of the Backstop Closing
Date and until the date on which the Investor 13(d) Group ceases to Beneficially Own 5% or more of the Common Stock of the Company (notwithstanding the definition of “Beneficially Own,” counting any shares of Preferred Stock on an
As-Converted Basis), the Company hereby grants to Investor the right to use the Company’s name and logo (collectively, the “Company Marks”) in Investor’s and its Affiliates’ marketing materials, solely for the purpose
of indicating in a factual manner Investor’s ownership interest in the Company, provided, however, that (a) Investor shall not use the Company Marks in a manner that is likely to confuse the public to believe that the Company is
providing or sponsoring any offering, securities, product or service provided by Investor; (b) Investor shall include a prominent trademark attribution notice giving notice of the Company’s or its Subsidiary’s ownership of its
trademarks in any such marketing materials in which the name and/or logo appear; (c) in order to preserve the inherent value of such name and logo, Investor agrees to use reasonable efforts to ensure that it maintains the quality of
Investor’s business and the operation thereof; (d) Investor shall at all times use such name and logos in accordance with any style guidelines established by the Company and communicated to Investor from time to time in writing;
(e) Investor shall, upon the request of Company, provide copies of such marketing materials to Company; and (f) notwithstanding anything to the contrary herein, the Company shall at all times have the right to direct Investor to cease any
use of the Company Marks that violates any requirement under this Section 6.8 or which is otherwise likely to disparage, dilute or impair the value of the Company Marks or the Company’s goodwill associated therewith. 

 

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 Section 6.9 Finder’s Fees. If a claim shall be made against any party for
any financial advisory fee, brokerage fee, commission or finder’s fee for which the other parties are responsible, such responsible party shall indemnify the non-responsible parties in full from and against such claim. 

Section 6.10 Proceeds. The Company shall apply all of the net proceeds of the Rights Offering (including the Backstop
Commitment) to the retirement of indebtedness for borrowed money of the Company, including indebtedness under its Credit Agreement. 

Section 6.11 Filing of Certificate of Designations. The Company shall file, on or before the Backstop Closing Date, the
Certificate of Designations with the Secretary of State of the State of Delaware. 
 ARTICLE VII 

GOVERNANCE AND OTHER RIGHTS 

Section 7.1 Initial Investor Nominees. The Company and Investor agree as follows: 

(a) The Company shall take all action necessary to cause the size of the Board to be no more than nine (9) members, subject to
Section 7.2(c). 
 (b) Prior to the Backstop Closing, Investor shall provide to the Company the name of each of its initial
Investor Nominees (including details as to which Investor Nominee shall be nominated in each circumstance set forth in Section 7.2(a)), each of whom shall be reviewed promptly by the Nominating and Corporate Governance Committee of the Board
(the “Nominating Committee”). 
 (c) On the Backstop Closing Date, the Company shall cause to be elected or
appointed to the Board the Investor Nominees, subject to satisfaction of all legal and governance requirements regarding service as a director of the Company. The Company shall take all actions necessary to ensure that on the Backstop Closing Date
the Board shall have at least the number of vacancies necessary to allow such election or appointment. 
 Section 7.2
Governance Matters. The Company and Investor agree that effective as of the Backstop Closing Date: 
 (a) Investor
Board Representation. 
 (i) For so long as the Investor 13(d) Group continues to: (i) Beneficially Own 40% or more of
the Preferred Stock it has acquired pursuant to the Backstop Commitment or otherwise, or (ii) Beneficially Own 10% or more of the Common Stock of the Company (notwithstanding the definition of “Beneficially Own,” counting any shares
of Preferred Stock on an As-Converted Basis), Investor shall be entitled to designate two (2) Investor Nominees, and the parties hereto shall exercise all authority under applicable Law to cause any slate of directors presented to Stockholders
for election to the Board to include such Investor Nominees. 
  

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 (ii) For so long as the Investor 13(d) Group continues to: (i) Beneficially Own 40% or
more of the Backstop Shares it has acquired pursuant to the Backstop Commitment or otherwise, or (ii) Beneficially Own 5% or more of the Common Stock of the Company (notwithstanding the definition of “Beneficially Own,” counting any
shares of Preferred Stock on an As-Converted Basis), Investor shall be entitled to designate one (1) Investor Nominee, and the parties hereto shall exercise all authority under applicable Law to cause any slate of directors presented to
Stockholders for election to the Board to include such Investor Nominee. 
 (b) Board Committees. For so long as Investor
is entitled to designate at least one Investor Nominee for election to the Board pursuant to this Section 7.2, one (1) member of each of the Audit Committee and Compensation Committee shall be an Investor Director, provided that
such Investor Director meets the applicable independence and Audit Committee criteria of the SEC and NASDAQ. The remaining members of the Audit Committee and Compensation Committee shall be selected by the Non-Investor Directors from among the
Non-Investor Directors who meet the applicable independence criteria of the SEC and NASDAQ. 
 Section 7.3 Procedural
Matters. For so long as Investor is entitled to designate at least one Investor Nominee for election to the Board pursuant to Section 7.2, the following provisions shall apply: 

(a) Special Voting Rights Upon Default. 

(i) Upon the occurrence of a Default, the Board will be expanded and Investor will be entitled to appoint such number of additional
Investor Nominees as to constitute a majority of the members of the Board. Alternatively, the Company may secure the resignations of a sufficient number of Non-Investor Directors such that Investor is entitled to appoint a simple majority of the
members of the Board. Upon the cure or, in the case of an a Default under this Agreement, waiver by Investor, of an existing Default, the Board will be returned to its size immediately preceding such Default and, to the extent Investor appointed
additional Investor Directors, Investor shall cause the Investor Directors it nominated pursuant to the first sentence of this subsection to resign from the Board. If for any reason, the Company is not able to effectuate the expansion or
reconfiguration of the Board and appointment of the additional Investor Directors as set forth in this subsection, then Investor shall have the right to require the Company to immediately redeem all shares of Preferred Stock held by Investor at the
Redemption Price. 
 (ii) If a Default continues for more than 12 months without being cured or waived by Investor in its sole
discretion, Investor shall have the right to require the Company to redeem all its outstanding shares of Preferred Stock at the Redemption Price. 

(b) Independence. At all times, a majority of the Board shall be comprised of individuals who are deemed in the reasonable
judgment of the Nominating Corporate Governance and Ethics Committee (“Nominating Committee”) of the Board to satisfy the 
  

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 independence criteria of NASDAQ and are independent of Investor and its Affiliates. In addition, at all
times, the Audit Committee, Compensation Committee and Nominating Committee shall be comprised only of individuals who satisfy the applicable independence criteria of the SEC and NASDAQ. 

(c) Designation of Slate. 

(i) Any Investor Nominees that are to be included in a slate of directors pursuant to Section 7.2(a) shall be designated by Investor
by prior written notice to the Company, subject to applicable Law and the Nominating Committee’s fiduciary duties. 
 (ii)
If, for any reason, an Investor Nominee is not elected to the Board by the Stockholders, then Investor shall designate a new Investor Nominee for appointment to the Board as permitted under applicable Law. 

(iii) The Company shall exercise all authority under applicable Law to cause the number of directors which shall constitute the Board to
be sufficient to allow the election or appointment of the number of Investor Nominees entitled to be nominated to the Board in accordance with Section 7.2(a). 

(d) Resignations and Replacements. 

(i) Subject to paragraph (ii) below, if at any time an Investor Director resigns or is removed in accordance with applicable Law or
the Company’s by-laws, a new Investor Director shall be designated by Investor and appointed by the Board pursuant to the procedures set forth in this Section 7.3, subject to applicable Law and the Nominating Committee’s fiduciary
duties. 
 (ii) In the event that Investor is no longer entitled to be nominate an Investor Nominee to the Board in accordance
with Section 7.2(a) in an election of directors presented to Stockholders, within 10 days thereafter Investor shall cause its Investor Director to resign from the Board. Any vacancies created by the resignations required by this
Section 7.3(c)(ii) shall be filled with Non-Investor Directors as designated by the Nominating Committee. 
 (e)
Solicitation and Voting of Shares. 
 (i) The Company shall recommend that its Stockholders vote in favor of the slate of
director nominees nominated in accordance with Section 7.2(a) and use its commercially reasonable efforts to solicit from the Stockholders eligible to vote for the election of directors proxies in favor of the director nominees nominated in
accordance with Section 7.2(a). 
 (ii) In any election of directors or at any meeting of the Stockholders called
expressly for the purpose of removing any director(s), Investor shall be present in person or by proxy for purposes of establishing a quorum. 
  

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 (iii) Investor shall be free to vote in its sole discretion all of its Voting Stock of the
Company entitled to vote on any matter submitted to or acted upon by Stockholders. 
 (f) Director Expenses; Insurance.
The Company agrees that the Investor Directors shall be entitled to the same rights and privileges as the other members of the Board in their capacity as such, including with respect to insurance coverage and reimbursement for Board participation
and related expenses. The Company shall maintain, at its own expense, directors’ and officers’ liability insurance with coverage as reasonably determined by the Board. 

Section 7.4 Matters Requiring Investor Director Approval. On and after the Backstop Closing Date, for so long as the Investor
13(d) Group continues to: (i) Beneficially Own 40% or more of the Preferred Stock it acquired pursuant to the Backstop Commitment or otherwise, or (ii) Beneficially Own 5% or more of the Common Stock of the Company (notwithstanding the
definition of “Beneficially Own,” counting any shares of Preferred Stock on an As-Converted Basis), the Company shall not, without the approval of all of the Investor Director(s): 

(a) incur any new indebtedness for borrowed money or capital leases (excluding borrowings pursuant to the Credit Agreement) in any single
transaction or series of related transactions in excess of $500,000 within any 12-month period; 
 (b) authorize or issue Equity
Securities senior or pari passu to the Preferred Stock or convertible into Equity Securities senior or pari passu to the Preferred Stock; 

(c) redeem or repurchase any Equity Securities; 

(d) enter into or be a party to any transaction with any director, officer or Employee of the Company or any “associate” (as
defined in Rule 12b-2 promulgated under the Exchange Act) thereof or any related party that requires disclosure under Item 404(a) of Regulation S-K; 

(e) liquidate, dissolve or wind-up its affairs, or effect any business combination; 

(f) enter into an Acquisition Transaction; 

(g) appoint a new Chief Executive Officer and/or President; 

(h) make any alteration or change in the right, preferences or privileges of the Preferred Stock or increase or decrease the number of
authorized shares of the Preferred Stock; 
 (i) amend or waive any provision of the Certificate of Incorporation, the Bylaws or
the Certificate of Designations that adversely affects the rights of the Preferred Stock; or 
 (j) make any material change in
the business of the Company from the exploration, exploitation, development and production of oil and natural gas and related activities. 
  

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 Section 7.5 Notice Rights. On and after the Backstop Closing Date, for so long
as the Investor 13(d) Group Beneficially Owns 40% or more of the Preferred Stock it acquired pursuant to its Backstop Commitment or otherwise, or Beneficially Owns 5% or more of the Common Stock of the Company (notwithstanding the definition of
“Beneficially Own,” counting any shares of Preferred Stock on an As-Converted Basis), the Company shall keep the Investor 13(d) Group informed, on a current basis, of any events, discussions, notices or changes with respect to any tax,
criminal or regulatory investigation or action involving the Company or any of its Subsidiaries (in the case of tax or regulatory investigations or actions, other than ordinary course communications which could not reasonably be expected to be
material to the Company, its Subsidiaries or Investor), and shall reasonably cooperate with Investor and its partners, Affiliates and Representatives in an effort to avoid or mitigate (with no adverse effect to the Company) any cost or regulatory
consequences to Investor and its partners and Affiliates that might arise from such investigation or action (including by allowing Investor to review written submissions in advance and attend meetings with authorities and coordinating and providing
assistance in connection with any meetings with authorities). 
 Section 7.6 Corporate Opportunities. In accordance
with and as contemplated by Section 122, paragraph (17) of the DGCL (or any successor statute thereto), the Company hereby renounces, to the fullest extent permitted by Law, any interest or expectancy in any business opportunity,
transaction or other matter in which Investor, its Affiliates, any Investor Director or any portfolio company in which Investor or any of its Affiliates (the “Investor Group”) has an equity investment, participates or desires or
seeks to participate in and that involves any aspect of the energy business or industry, including without limitation, the oil and gas exploration and production business (each, a “Business Opportunity”) other than a Business
Opportunity that (i) is presented to an Investor Director solely in such person’s capacity as a director of the Company and with respect to which no member of the Investor 13(d) Group (other than an Investor Director) independently
receives notice or otherwise identifies such Business Opportunity, (ii) is identified by the Investor Group solely through the disclosure of information by or on behalf of the Company, or (iii) involves the exploration, production or
development of coalbed methane and non-conventional shallow gas in the Cahaba Basin in Alabama and the central Appalachian Basin in West Virginia and Virginia (each Business Opportunity other than those referred to in clauses (i) or
(ii) are referred to as a “Renounced Business Opportunity”). No member of the Investor 13(d) Group shall have any obligation to communicate or offer any Renounced Business Opportunity to the Company, and any member of the
Investor 13(d) Group may pursue a Renounced Business Opportunity. For the avoidance of doubt, the Company shall not be prohibited or restricted in any manner from pursuing or consummating any Business Opportunity with respect to which it has
renounced any interest or expectancy as a result of this Section 7.7. 
 Section 7.7 Participation Rights for New
Securities. 
 (a) The Company hereby grants to Investor a right to purchase New Securities (as defined below) that the
Company may, from time to time, propose to issue and sell, provided that this right shall terminate at such time as Investor has purchased New Securities with an aggregate purchase price equal to or greater than $30,000,000. Such right shall allow
Investor to purchase its Pro Rata Share of the New Securities offered. 
  

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 (b) “New Securities” shall mean any authorized but unissued debt securities
and preferred stock of the Company, and all rights, options or warrants to purchase shares, and securities of any type whatsoever that are, or may become, convertible into, or exchangeable for, debt securities or preferred stock of the Company.

 (c) Subject to the restrictions provided herein and in the Certificate of Incorporation, in the event the Company proposes to
undertake an issuance of New Securities, it shall promptly give Investor written notice (“New Securities Notice”) of its intention, describing the class and number of securities intended to be issued as New Securities, the purchase
price therefor (which shall be payable solely in cash) and the terms and conditions upon which the Company proposes to issue the same. Investor shall have thirty (30) Business Days from the Date of Delivery of the New Securities Notice to
determine whether to purchase all or any portion of the Investor’s Pro Rata Share of such New Securities for the purchase price and upon the terms specified in the New Securities Notice by giving written notice to the Company and stating
therein the quantity of New Securities to be purchased. Except as provided in the following sentence, such purchase shall be consummated concurrently with the consummation of the issuance or sale described in the New Securities Notice. The closing
of any purchase by Investor may be extended beyond the closing of the transaction described in the New Securities Notice to the extent necessary to (i) obtain required approvals of Government Entities and other required approvals and the
Company and Investor shall use their respective commercially reasonable efforts to obtain such approvals and (ii) permit Investor to complete its internal capital call process following the 30-day notice period; provided that the extension
pursuant to this clause (ii) shall not exceed 60 days. To the extent that the Company has granted preemptive rights on the share issuance to third parties and such preemptive rights are not fully exercised, the Investor shall be given
written notice by the Company and shall have an additional ten (10) Business Days from receipt of such notice to purchase the unsubscribed amount from the third party preemptive rights. 

(d) The Company shall have ninety (90) days from the Date of Delivery of the New Securities Notice to issue, sell or exchange all or
any part of such New Securities that Investor has not elected to purchase, but only upon the terms and conditions set forth in the New Securities Notice. 

ARTICLE VIII 

EVENTS OF DEFAULT 

Section 8.1 Listing of Events of Default. Each of the following events or occurrences described in this Section 8.1
shall constitute an “Event of Default”: 
 (a) Breach of Representation or Warranty. Any representation or
warranty of the Company made hereunder or in any other Ancillary Agreement executed by it or any other writing or certificate furnished by or on behalf of the Company to Investor for the purposes of or in connection with this Agreement or any such
other Ancillary Agreement is or shall be false, misleading or incorrect when made. 
  

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 (b) Default of Credit Agreement or Under Other Material Indebtedness. Any default
under the Credit Agreement or in connection with any other indebtedness for borrowed money or capital leases of the Company that has a principal amount in excess of $500,000; provided that any such default has not been waived by the creditor party
or cured by the Company. 
 (c) Non-Performance of Covenants and Obligations. The Company shall default in the due
performance and observance of any agreement contained herein or in any other Ancillary Agreement executed by it; provided that if such default can be remedied by the Company, it shall have ten (10) Business Days after notice thereof shall have
been given to the Company by Investor to remedy such default prior to such being deemed an Event of Default. 
 (d) Failure
to Pay Dividends or to Permit Conversion of the Preferred Stock. The Company shall fail to (i) pay any dividend when due under the Preferred Stock, (ii) convert the Preferred Stock or (iii) perform any other obligation or to
enforce any right with regard to the Preferred Stock, in each case as required pursuant to the terms of the Certificate of Designations, unless waived by Investor. 

Section 8.2 Action Upon Default. If a Default shall occur for any reason, whether voluntary or involuntary, and be
continuing, Investor may, by notice to the Company, exercise its rights pursuant to Section 7.3 of this Agreement. 

Section 8.3 Rights Not Exclusive. The rights provided for in this Agreement and the other Ancillary Agreements are cumulative
and are not exclusive of any other rights, powers, privileges or remedies provided by applicable Law or in equity, or under any other instrument, document or agreement now existing or hereafter arising. 

ARTICLE IX 

TERMINATION 

Section 9.1 Termination. This Agreement may be terminated at any time prior to the occurrence of the Backstop Closing:

 (a) by Investor or the Company, upon written notice to the other, following the termination of the Rights Offering;
provided, however, that the right to terminate this Agreement pursuant to this Section 9.1(a) shall not be available to any party whose act or omission shall have been the cause of, or shall have resulted in, the termination of
the Rights Offering; 
 (b) by Investor, upon written notice to the other, in the event that the Backstop Closing does not occur
on or before September 16, 2010 (the “Termination Date”), provided, however, that if all conditions to the Backstop Closing shall have been met or waived, and the Rights Offering shall have closed prior to such date,
such date shall be extended to the extent necessary to permit the Backstop Closing to occur, and provided, further, that the right to terminate this Agreement pursuant to this Section 9.1(b) shall not be available if the Investor’s
failure to fulfill any obligation under this Agreement shall have been the cause of, or shall have resulted in, the failure of the Backstop Closing to occur on or prior to such date; 

 

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 (c) by Investor or the Company, upon written notice to the other, in the event that any
Governmental Entity shall have issued any order, decree or injunction or taken any other action restraining, enjoining or prohibiting any of the transactions contemplated by this Agreement, and such order, decree, injunction or other action shall
have become final and nonappealable; 
 (d) by Investor or the Company, upon written notice to the other, if such other party is
in breach or default of, or has failed to comply with, any material representation, warranty, term, condition or covenant of this Agreement, and such breach, default or failure to comply has not been cured within thirty (30) days of such other
party receiving written notice thereof; or 
 (e) by Investor or the Company, upon written notice to the other, if a Material
Adverse Effect has occurred with respect to such other party, and such Material Adverse Effect is not curable or, if curable, has not been cured within thirty (30) days of such other party receiving written notice thereof. 

Section 9.2 Effects of Termination. In the event of the termination of this Agreement as provided in Section 9.1, this
Agreement (other than Article X, which shall remain in full force and effect) shall forthwith become wholly void and of no further force and effect, provided that nothing herein shall relieve any party from liability for any breach of this
Agreement. 
 ARTICLE X 

MISCELLANEOUS 

Section 10.1 Survival. Each of the representations and warranties in this Agreement (or any certificate delivered pursuant
hereto) shall survive the execution and delivery of this Agreement and the Backstop Closing, but only for a period of twelve (12) months following the Backstop Closing Date, provided that the representations and warranties in
Section 3.12, Section 3.13, Section 3.15 and Section 3.18 shall survive for a period of thirty-six (36) months following the Backstop Closing Date, provided further that the representations and warranties set forth in
Section 3.1, Section 3.2, Section 3.3, Section 3.4, Section 3.5, Section 3.10, Section 4.1, Section 4.2, Section 4.3 and Section 4.4 and the 10b-5 Representation, and corresponding representations
and warranties in the officer’s certificate to be delivered pursuant to Section 5.2(c) and Section 5.3(d), shall survive indefinitely (or, in each case, until final resolution of any claim or actions arising from the breach of any
such representation and warranty, if written notice of such breach (including, in reasonable detail, the basis for the claimed breach) was provided prior to the end of such survival period). 

Section 10.2 Indemnification. 

(a) Notwithstanding anything in this Agreement to the contrary, from and after the date hereof the Company agrees to indemnify and hold
harmless Investor, its Affiliates and each of their respective officers, directors, partners, employees, agents and Representatives (the “Investor Indemnified Parties”), to the fullest extent lawful, from and against any and all
actions, suits, claims, proceedings, costs, losses, liabilities, damages, expenses (including 
  

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 reasonable and documented fees of counsel), amounts paid in settlement and other costs (collectively,
“Losses”) arising out of or relating to (i) any material misstatement or omission in the Registration Statement, the Prospectus Supplement or the Proxy Statement, provided that the Company shall not be liable in any such
case to the extent that any such Loss arises out of or is based on statements made in reliance upon and in conformity with written information contained in either of the foregoing documents that was furnished to the Company by or on behalf of
Investor specifically for use therein, (ii) any breach of or inaccuracy in the representations and warranties made by the Company in this Agreement, (iii) any breach of a covenant or obligation of the Company made in this Agreement, or
(iv) claims, suits or proceedings challenging the authorization, execution, delivery, performance or termination by the Company of the Rights Offering, this Agreement, any Ancillary Agreement or any of the transactions contemplated hereby or
thereby (other than any such Losses attributable to the acts, errors or omissions on the part of Investor in violation of this Agreement). Notwithstanding the above, (x) other than with respect to Losses arising out of or incurred in connection
with class action lawsuits brought against the Company and/or any of its directors or by any Stockholders or a derivative action brought on behalf of the Company, in each case relating to matters for which the Backstop Party Indemnified Parties are
otherwise entitled to indemnification pursuant to clauses (i) or (ii) above (as to which there shall be indemnity hereunder), there shall be no indemnity hereunder in respect of any Losses resulting from any action that the Backstop
Parties, their Affiliates or their respective transferees take, fail to take or propose to take (in each case, other than as required pursuant to this Agreement) in their capacity as a stockholder of the Company from and after the Backstop Closing
Date, and (y) for purposes of clarification, Investor shall not be entitled to indemnification to the extent that the Losses incurred are based on a loss of value of the Backstop Shares. 

(b) Notwithstanding anything in this Agreement to the contrary, from and after the date hereof Investor agrees to indemnify and hold
harmless the Company, its Affiliates and each of their respective officers, directors, partners, Employees, agents and Representatives (the “Company Indemnified Parties”), severally and not jointly, to the fullest extent lawful,
from and against any and all Losses arising out of or relating to (i) any material misstatement or omission in the Prospectus Supplement or the Proxy Statement to the extent that any such Loss arises out of or is based on statements made in
reliance upon and in conformity with written information contained in the Prospectus Supplement that was furnished to the Company by or on behalf of Investor specifically for use therein, (ii) any breach of or inaccuracy in the representations
and warranties made by Investor in this Agreement, (iii) any breach of a covenant or obligation of Investor made in this Agreement, or (iv) claims, suits or proceedings challenging the authorization, execution, delivery, performance or
termination by Investor of this Agreement, any Ancillary Agreement or any of the transactions contemplated hereby or thereby (other than any such Losses attributable to the acts, errors or omissions on the part of the Company in violation of this
Agreement). 
 (c) An Indemnified Party shall give written notice to the Indemnifying Party of any claim with respect to which
it seeks indemnification promptly after the discovery by such Indemnified Party of any matters giving rise to a claim for indemnification pursuant to Section 10.2(a) or Section 10.2(b), provided that the failure of any Indemnified
Party to give notice as provided herein shall not relieve the Indemnifying Party of its obligations under this Section 10.2 unless and to the extent that the Indemnifying Party shall have been actually prejudiced by the 

 

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 failure of such Indemnified Party to so notify the Indemnifying Party, and then only to the extent of such
prejudice. Such notice shall describe in reasonable detail such claim. In case any such action, suit, claim or proceeding is brought against an Indemnified Party, the Indemnified Party shall be entitled to hire, at its own expense, separate counsel
and participate in the defense thereof, provided, however, that the Indemnifying Party shall be entitled to assume and conduct the defense, unless the Indemnifying Party determines otherwise and following such determination the Indemnified
Party assumes responsibility for conducting the defense (in which case the Indemnifying Party shall be liable for any reasonable and documented legal fees and expenses of one law firm retained by the Indemnified Party and other reasonable and
documented out of pocket expenses reasonably incurred by the Indemnified Party in connection with assuming and conducting the defense), and provided, further, that if the Indemnifying Party is conducting the defense the Indemnifying Party shall be
liable for any reasonable and documented legal fees and expenses of one law firm retained by the Indemnified Party and other reasonable and documented out of pocket expenses reasonably incurred by the Indemnified Party in connection with such claim
if the Indemnified Party reasonably shall have concluded (upon advice of its counsel) that there are one or more legal defenses available to the Indemnified Party that are not available to the Indemnifying Party or the Indemnified Party shall have
concluded (upon advice of its counsel) that, with respect to such claim, the Indemnified Party and the Indemnifying Party have different, conflicting or adverse legal positions or interests. If the Indemnifying Party assumes the defense of any
claim, all Indemnified Parties shall thereafter deliver to the Indemnifying Party copies of all notices and documents (including court papers) received by the Indemnified Party relating to the claim, and any Indemnified Party shall cooperate in the
defense or prosecution of such claim. Such cooperation shall include the retention and (upon the Indemnifying Party’s request) the provision to the Indemnifying Party of records and information that are reasonably relevant to such claim and
making representatives available on a mutually convenient basis to provide additional information and explanation of any material provided hereunder. The Indemnifying Party shall not be liable for any settlement of any action, suit, claim or
proceeding effected without its written consent. The Indemnifying Party will not, without the Indemnified Party’s prior written consent, settle or compromise any claim or consent to entry of any judgment in respect thereof in any pending or
threatened action, suit, claim or proceeding in respect of which indemnification has been sought hereunder unless such settlement or compromise includes an unconditional release of such Indemnified Party from all liability arising out of such
action, suit, claim or proceeding. 
 (d) The obligations of an Indemnifying Party under this Section 10.2 shall survive
for so long as the Investor 13(d) Group continues to: (i) Beneficially Own 40% or more of the Backstop Shares it acquired pursuant to the Backstop Commitment (provided that such beneficial ownership represents 5% or more of the Common Stock of
the Company (notwithstanding the definition of “Beneficially Own,” counting any shares of Preferred Stock on an As-Converted Basis)). The agreements contained in this Section 10.2 shall be in addition to any other rights of any
Indemnified Party against any Indemnifying Party or others, under this Agreement any Ancillary Agreement, at law or in equity. 

(e) Any indemnification payment made to any Investor Indemnified Party who experiences any Loss shall paid, at the option of the Investor
Indemnified Party, by the Company in cash or in a combination of cash and shares of Common Stock (with the value of a share of Common Stock being the average trading price of the Company’s Common Stock for 

 

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 the 30 day period immediately prior to the actual payment of such indemnification obligation with Common
Stock. If shares of Common Stock are used to satisfy such indemnification obligations, the Company shall take all actions necessary, desirable and reasonably acceptable to the Investor to register for resale such shares of Common Stock so that they
are freely tradable no later than 180 days after the later of the date on which (a) the amount of the indemnification payment is known, agreed on and resolved as provided for in this Agreement, or (b) the Investor Indemnified Party
notifies the Company of its decision to have such an indemnification claim satisfied in whole or in part with shares of Common Stock. 

Section 10.3 Notices. All notices and other communications required or permitted to be given under this Agreement shall be in
writing and shall be deemed to have been duly given (a) on the date of delivery, if delivered personally or by facsimile, upon confirmation of receipt, (b) on the first Business Day following the date of dispatch if delivered by a
recognized next-day courier services, or (c) on the third Business Day following the date of mailing if delivered by registered or certified mail, return receipt requested, postage prepaid, to the parties to this Agreement at the following
address or to such other address either party to this Agreement shall specify by notice to the other party: 
 If to the
Company: 
 GeoMet, Inc. 

909 Fannin, Suite 1850 

Houston, Texas 77010 

Attention: J. Darby Seré 

F acsimile: (713) 659-3856 

With a copy to (which shall not constitute notice): 

Thompson & Knight LLP 

333 Clay Street, Suite 3300 

Houston, TX 77002 

Attention: Harry R. Beaudry 

Facsimile: (832) 397-1849 

If to the Investor: 

Sherwood Energy, LLC 

1221 Lamar Street, Suite 1001 

Houston, TX 77010 

Attention: Michael McGovern 

Facsimile: (713) 651-9710 
  

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 With a copy to (which shall not constitute notice): 

Squire Sanders & Dempsey L.L.P. 

4900 Key Tower 

127 Public Square 

Cleveland, Ohio 44114 

Attention: Gregory K. Gale, Esq. 

Facsimile: (216) 479-8780 

Section 10.4 Further Assurances. Each party hereto shall do and perform or cause to be done and performed all further acts
and shall execute and deliver all other agreements, certificates, instruments and documents as the other party hereto reasonably may request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the
transactions contemplated hereby. 
 Section 10.5 Amendments and Waivers. Any provision of this Agreement may be
amended or waived if, but only if, such amendment or waiver is in writing and is duly executed and delivered by the Company and Investor. No failure or delay by any party in exercising any right, power or privilege hereunder shall operate as a
waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege. The rights and remedies herein provided shall be cumulative and not exclusive of
any rights or remedies provided by Law. 
 Section 10.6 Fees and Expenses. 

(a) Expenses. 

(i) The Company shall reimburse Investor for its out-of-pocket legal, accounting, engineering, consulting and other professional and
advisory fees and expenses that are reasonably incurred by Investor in connection with the transactions contemplated hereby and documented in reasonable detail by Investor, including the fees and expenses of Investor’s counsel, including
preparing of documentation and due diligence associated with the transactions contemplated hereby and filing fees incurred by Investor with respect to filings contemplated by Section 6.3. 

(ii) Reimbursement of Investor’s fees and expenses by the Company pursuant to this Section 10.6(a) shall be made from time to
time no later than fifteen (15) Business Days after delivery to the Company of an itemized statement setting forth in reasonable detail all such expenses. 

(b) Termination Fee. In the event this Agreement is terminated for any reason other than a breach of this Agreement by Investor,
then the Company shall, simultaneously with such delivery of written notice of termination (or within three (3) Business Days thereafter, in the case of delivery of written notice of termination by Investor), pay Investor (i) the Backstop
Fee, plus (ii) the Additional Backstop Fee (which, for the avoidance of doubt, shall be calculated as equal to 3% of $30,000,000). 
  

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 (c) Any amount that becomes payable pursuant to Section 10.6(a) or Section 10.6(b)
shall be paid by wire transfer of immediately available funds to an account designated by Investor. 
 Section 10.7
Successors and Assigns. The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns. This Agreement shall not be assignable by operation of law or
otherwise, provided that Investor shall be permitted to assign this Agreement or any of its rights hereunder to any of its Affiliates under common Control with Investor’s ultimate parent entity, and provided, further that
(a) such assignee shall execute an agreement for the benefit of the Company in form and substance reasonably satisfactory to the Company, pursuant to which such proposed assignee agrees to be bound by the terms and conditions of this Agreement
and (b) except for an assignment by Investor to any investment fund under the Control of Investor’s ultimate parent entity, no such assignment shall relieve Investor of its obligations hereunder. Without limiting the foregoing, none of the
rights of Investor hereunder shall be assigned to, or be enforceable by, any Person to whom an Investor may transfer Capital Stock of the Company (other than a transfer to the Investor’s Affiliates to the extent permitted in accordance with the
terms of this Agreement). 
 Section 10.8 Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of New York, without regard to its rule of conflict of laws. Each party agrees that all legal proceedings concerning the interpretations, enforcement and defense of the transactions contemplated by this
Agreement and (whether brought against a party hereto or its respective Affiliates, directors, officers, shareholders, employees or agents) shall be commenced exclusively in the state and federal courts sitting in Harris County, Texas. Each party
hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the Harris County, Texas for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or
discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is improper or is an
inconvenient venue for such proceeding. Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof via registered or certified mail or
overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained
herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law. Each party hereby irrevocably waives, to the fullest extent permitted by applicable law, any right it may have to a trial by jury in any
legal proceeding directly or indirectly arising out of or relating to this Agreement, any Ancillary Agreement or the transactions contemplated hereby or thereby. If any party shall commence an action or proceeding to enforce any provisions of this
Agreement, then the prevailing party in such action or proceeding shall be reimbursed by the other parties for its reasonable attorneys’ fees and other costs and expenses incurred with the investigation, preparation and prosecution of such
action or proceeding. 
  

 -44- 

 Section 10.9 Entire Agreement. This Agreement, together with the Ancillary
Agreements, constitutes the entire agreement between the parties with respect to the subject matter of this Agreement and supersedes all prior agreements and understandings, both oral and written, between the parties and/or their Affiliates with
respect to the subject matter of this Agreement. 
 Section 10.10 Effect of Headings and Table of Contents. The
Article and Section headings herein and the Table of Contents are for convenience only and shall not affect the construction hereof. 

Section 10.11 Severability. If one or more provisions of this Agreement are held to be unenforceable under applicable Law,
such provision shall be deemed to be excluded from this Agreement and the balance of this Agreement shall be interpreted as if such provision were so excluded and shall be enforced in accordance with its terms to the maximum extent permitted by Law.

 Section 10.12 Counterparts; No Third Party Beneficiaries. This Agreement may be signed in any number of
counterparts, each of which shall be an original, with the same effect as if the signatures were upon the same instrument. No provision of this Agreement shall confer upon any Person other than the parties hereto any rights or remedies hereunder.

 Section 10.13 Specific Performance. The transactions contemplated by Article VII are unique. Accordingly, each of
the Company and Investor acknowledge and agree that, in addition to all other remedies to which it may be entitled, each of the parties hereto is entitled to seek a decree of specific performance of the rights contemplated by Article VII, provided
that such party is not in material default hereunder. The Company and Investor agree that, if for any reason a party shall have failed to perform its obligations under Article VII, then the party seeking to enforce this Agreement against such
nonperforming party shall be entitled to specific performance and injunctive and other equitable relief, and the parties further agree to waive any requirement for the securing or posting of any bond in connection with the obtaining of any such
injunctive or other equitable relief. This provision is without prejudice to any other rights that any party may have against another party for any failure to perform its obligations under Article VII, including the right to seek damages for a
breach of any provision of Article VII, and all rights, powers and remedies available (at law or in equity) to a party in respect hereof by the other party shall be cumulative and not alternative or exclusive, and the exercise or beginning of the
exercise of any thereof by a party shall not preclude the simultaneous or later exercise of any other rights, powers or remedies by such party. 

(Remainder of page intentionally left blank) 

 

 -45- 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by
their respective authorized officers as of the date first written above. 
  

			
	 GEOMET, INC.
  

	By:	 	 /s/ J. Darby Seré

		 	Name: J. Darby Seré
		 	Title:  Chief Executive Officer
	  
 SHERWOOD ENERGY, LLC

 

	By:	 	 /s/ Michael McGovern

		 	Name: Michael McGovern
		 	Title:   President

  

 Signature Page 

 EXHIBIT I 

CERTIFICATE OF DESIGNATIONS 

OF 
 SERIES A
CONVERTIBLE REDEEMABLE PREFERRED STOCK 
 OF 

GEOMET, INC. 

GeoMet, Inc., a corporation organized and existing under the General Corporation Law of the State of Delaware (the
“DGCL”), hereby certifies, pursuant to Section 151 of the DGCL, that the following resolutions were duly adopted by its Board of Directors (the “Board”) on , 2010: 

WHEREAS, the Company’s Restated Certificate of Incorporation, as amended, including any amendment or supplement thereto (including
any Certificate of Amendment or Certificate of Designations) (the “Certificate of Incorporation”), authorizes 10,000,000 shares of preferred stock, par value $0.001 per share (the “Preferred Stock”), issuable from
time to time in one or more series; and 
 WHEREAS, the Certificate of Incorporation authorizes the Board to divide the class of
Preferred Stock into series and to fix and determine the relative rights, limitations and preferences of the shares of any such series; 

NOW, THEREFORE, BE IT RESOLVED, that a series of Preferred Stock with the powers, designations, preferences, rights, qualifications,
limitations and restrictions as provided herein is hereby authorized and established as follows: 
 Section 1. Number;
Designation; Rank. 
 (a) This series of convertible redeemable Preferred Stock is designated as the “Series A
Convertible Redeemable Preferred Stock” (the “Series A Preferred Stock”). The number of shares constituting the Series A Preferred Stock is 7,401,832 shares, par value $0.001 per share (which number includes 3,401,832 shares of
Series A Preferred Stock reserved exclusively for the payment of dividends in kind). 
 (b) The Series A Preferred Stock ranks,
with respect to dividend rights and rights upon a Liquidation Event: 
 (i) senior in preference and priority to
the common stock of the Company, par value $0.001 per share (the “Common Stock”), and each other class or series of Equity Security of the Company, the terms of which do not expressly provide that it ranks senior in preference or
priority to or on parity, without preference or priority, with the Series A Preferred Stock with respect to dividend rights or rights upon a Liquidation Event (collectively with the Common Stock, the “Junior Securities”);

 (ii) on parity, without preference and priority, with each other class or
series of Equity Security of the Company, the terms of which expressly provide that it will rank on parity, without preference or priority, with the Series A Preferred Stock with respect to dividend rights or rights upon a Liquidation Event
(collectively, the “Parity Securities”); and 
 (iii) junior in preference and priority to each
other class or series of Equity Security of the Company the terms of which expressly provide that it will rank senior in preference or priority to the Series A Preferred Stock with respect to dividend rights or rights upon a Liquidation Event
(collectively, the “Senior Securities”). 
 Section 2. Dividends. 

(a) Each holder of issued and outstanding Series A Preferred Stock will be entitled to receive, when, as and if declared by the Board, for
each share of Series A Preferred Stock (including each PIK Preferred Share, as defined below), dividends payable, at the Company’s sole discretion and in any combination, either (i) in cash at the applicable Cash Dividend Rate multiplied
by the sum of (A) ten dollars ($10.00) per share (the “Original Purchase Price”) plus (B) all accrued and unpaid dividends on such share of Series A Preferred Stock, in each case as adjusted for any stock dividends,
splits, combinations and similar events, or (ii) until the fifth anniversary of the Original Issuance Date, in kind in additional shares of Series A Preferred Stock (the “PIK Preferred Shares”) and not in cash; each such
payment of a dividend in kind shall be in an amount of shares of Series A Preferred Stock as shall equal the PIK Dividend Rate multiplied by the sum of (A) the Original Purchase Price plus (B) all accrued and unpaid dividends on such share
of Series A Preferred Stock, in each case as adjusted for any stock dividends, splits, combinations and similar events (all dividends whether paid in cash or in kind, the “Dividends”). 

(b) Dividends will accrue and cumulate from the date of issuance and are payable quarterly in arrears on the last day
of each March, June, September and December, or, if such date is not a business day, the succeeding business day (each such day, a “Dividend Payment Date”). The amount of Dividends payable for each full quarterly dividend period
will be computed by dividing the annual rate by four. Dividends accrued for the initial dividend period will not be payable until the last day of the first full quarterly dividend period, at which time the amount of Dividends payable shall consist
of the full quarterly Dividend plus the initial partial Dividend, which shall be computed on the basis of a 360-day year consisting of twelve 30-day months. The amount of Dividends payable for any other dividend period shorter or longer than a full
quarterly dividend period, will be computed on the basis of a 360-day year consisting of twelve 30-day months. Dividends will be paid to the holders of record of Series A Preferred Stock as they appear in the records of the Company at the close of
business on the fifteenth (15th) day of the calendar
month in which the applicable Dividend Payment Date falls or on such other date designated by the Board for the payment of Dividends that is not more than sixty (60) days or less than ten (10) days prior to such Dividend Payment Date. Any
payment of a Dividend will first be credited against the earliest accumulated but unpaid Dividend due with respect to such share that remains payable. 
  

 2 

 (c) Dividends will accrue and cumulate whether or not the Company has earnings or profits,
whether or not there are funds legally available for the payment of Dividends and whether or not Dividends are declared. Dividends will accumulate and compound quarterly at a rate of 12.5% per annum to the extent they are not paid. 

(d) So long as any share of Series A Preferred Stock is outstanding, no dividend may be declared or paid or set aside for payment or
other distribution declared or made upon any Junior Securities of any kind, nor may any Junior Securities of any kind be redeemed, purchased or otherwise acquired for any consideration (or any moneys be paid to or made available for a sinking fund
for the redemption of any shares of any such Junior Securities) by the Company (except by conversion into or exchange for other Junior Securities), unless, in each case, full cumulative Dividends on all shares of Series A Preferred Stock have been
or are contemporaneously declared and paid or are declared and a sum sufficient for the payment thereof is set apart for such payment for all past dividend periods and the then current dividend period. If Dividends are not paid in full or a sum
sufficient for such full payment is not so set apart upon the Series A Preferred Stock, all Dividends declared upon the Series A Preferred Stock and all dividends declared on any Parity Securities shall be declared pro rata so that the amount of
Dividends declared per share of the Series A Preferred Stock and dividends declared per share of such Parity Securities shall in all cases bear to each other the same ratio that accrued and unpaid Dividends per share on the Series A Preferred Stock
and accrued and unpaid dividends per share of such Parity Securities bear to each other. 
 (e) The Company shall take all
actions necessary or advisable under the DGCL to permit the payment of Dividends to the holders of Series A Preferred Stock. Holders of Series A Preferred Stock are not entitled to any dividend, whether payable in cash, in kind or other property, in
excess of full Dividends as provided in this Section 2. 
 Section 3. Liquidation Preference. 

(a) Upon any Liquidation Event, each share of Series A Preferred Stock (including all PIK Preferred Shares) entitles the holder thereof to
receive and to be paid out of the assets of the Company available for distribution, before any distribution or payment may be made to a holder of any Junior Securities, an amount in cash per share equal to the greater of (i) the sum of
(A) the Original Purchase Price plus (B) all accrued but unpaid Dividends on such share of Series A Preferred Stock, in each case as adjusted for any stock dividends, splits, combinations and similar events, or (ii) an amount equal to
the amount the holders of Series A Preferred Stock would have received upon a Liquidation Event had such holders converted their shares of Series A Preferred Stock into shares of Common Stock (such greater amount, the “Liquidation
Preference”). 
 (b) If upon any such Liquidation Event, the assets of the Company available for distribution is
insufficient to pay the holders of Series A Preferred Stock the full Liquidation Preference and the holders of all Parity Securities the full liquidation preferences to which they are entitled, the holders of Series A Preferred Stock and such Parity
Securities will share ratably in any such distribution of the assets of the Company in proportion to the full respective amounts to which they are entitled. 
  

 3 

 (c) After payment to the holders of Series A Preferred Stock of the full Liquidation
Preference to which they are entitled, the holders of Series A Preferred Stock as such will have no right or claim to any of the assets of the Company. 

(d) The value of any property not consisting of cash that is distributed by the Company to the holders of the Series A Preferred Stock
will equal the Fair Market Value thereof. 
 Section 4. Voting Rights. 

(a) The holders of Series A Preferred Stock are entitled to vote on all matters on which the holders of Common Stock are entitled to vote,
and except as otherwise provided herein or by law, the holders of Series A Preferred Stock will vote together with the holders of Common Stock as a single class. Each holder of Series A Preferred Stock is entitled to a number of votes equal to the
number of shares of Common Stock into which all of the outstanding shares of Series A Preferred Stock held by such holder on the record date are convertible immediately prior to the vote. 

(b) So long as any shares of Series A Preferred Stock are outstanding, as adjusted for stock dividends, splits, combinations and similar
events, and except as otherwise provided by law, the Company may not take any of the following actions without the prior vote or written consent of holders representing at least fifty percent (50%) of the then outstanding shares of Series A
Preferred Stock, voting together as a separate class: 
 (i) any amendment, alteration or change to the powers, designations,
preferences, rights, qualifications, limitations or restrictions of the Series A Preferred Stock in any manner (including by way of merger, consolidation or otherwise) that affects the holders of Series A Preferred Stock; 

(ii) any amendment, repeal or alteration of any provision of the Certificate of Incorporation or the Bylaws of the Company, or this
Certificate of Designation, in any manner (including by way of merger, consolidation or otherwise) that affects the holders of Series A Preferred Stock; 

(c) So long as at least 750,000 shares of Series A Preferred Stock are outstanding, as adjusted for stock dividends, splits, combinations
and similar events, and except as otherwise provided by law, the Company may not take any of the following actions without the prior vote or written consent of holders representing at least fifty percent (50%) of the then outstanding shares of
Series A Preferred Stock, voting together as a separate class: 
 (i) any increase (including by way of merger, consolidation
or otherwise) in the total number of authorized or issued shares of Series A Preferred Stock, except as required for the payment of Dividends; 

(ii) any authorization, creation or issuance (including by way of merger, consolidation or otherwise) of any Senior Securities or Parity
Securities (including but not limited to any convertible debt of the Company of any kind); 
  

 4 

 (iii) any redemption, acquisition or other purchase of any Parity Securities or any Junior
Security, except for such redemptions, acquisitions or other purchases of (A) Common Stock up to $5 million in the aggregate, and (B) shares of Preferred Stock in accordance with the terms thereof; 

(iv) a Change in Control; 

(v) a Liquidation Event; or 

(vi) any contract or other arrangement to do any of the foregoing. 

Section 5. Conversion. 

Each share of Series A Preferred Stock is convertible into shares of Common Stock as provided in this Section 5. 

(a) Conversion by Holders. 

(i) Each holder of Series A Preferred Stock is entitled to convert, at any time and from time to time after the Original
Issuance Date at the sole option of such holder, any or all shares of outstanding Series A Preferred Stock (including any or all PIK Preferred Shares) held by such holder into a number of duly authorized, validly issued, fully paid and nonassessable
shares of Common Stock equal to the amount (the “Conversion Amount”) determined by dividing (i) the sum of (A) the Original Purchase Price plus (B) all accrued and unpaid dividends on such shares of Series A Preferred
Stock, in each case as adjusted for any stock dividends, splits, combinations and similar events, for each share of Series A Preferred Stock to be converted by such holder by (ii) the Conversion Price in effect at the time of conversion. The
“Conversion Price” initially means the conversion price of $1.30 per share, as adjusted from time to time as provided in Section 5(e). 

(ii) In order to convert shares of Series A Preferred Stock into shares of Common Stock pursuant to Section 5(a)(i),
to the extent that the holder was issued physical certificates, the holder must surrender the certificates representing such shares of Series A Preferred Stock to American Stock Transfer & Trust Company, which shall act as transfer agent,
registrar, paying agent and conversion agent for the Series A Preferred Stock, and its successors and assigns (the “Transfer Agent”) (or at the principal office of the Company, if the Company serves as its own transfer agent),
together with written notice (the “Conversion Notice”) that such holder elects to convert all or such number of shares represented by such certificates as specified therein. The date of receipt of certificates evidencing the shares
of Series A Preferred Stock to be converted into shares of Common Stock pursuant to Section 5(a)(i), together with the Conversion Notice, by the Transfer Agent (or the Company is serving as its own transfer agent) will be the date of conversion
(the “Conversion Date”) for purposes of conversion pursuant to Section 5(a). If reasonably required by the Transfer Agent or the Company, certificates surrendered for conversion must be endorsed or accompanied by a written
instrument of transfer, in a form reasonably satisfactory to the Company, duly executed by the registered holder or his, her or its attorney-in-fact duly authorized in writing. 

 

 5 

 (b) Conversion by the Company. 

(i) In the event that a VWAP Trigger has occurred, the Company is entitled to convert, at any time and from time to time
beginning three (3) years after the Original Issuance Date but not within ninety (90) days after the delivery of a prior Forced Conversion Notice (as defined below), at the sole option of the Company, any or all shares of outstanding
Series A Preferred Stock held by each holder into a number of duly authorized, validly issued, fully paid and nonassessable shares of Common Stock equal to the Conversion Amount in accordance with Section 5(ii) and (iii) hereunder.

 (ii) The maximum number of shares of Common Stock that may be issued to the holders of the Series A Preferred
Stock on any Conversion Date pursuant to Section 5(b)(i) is equal to: 
 (A) if the VWAP Trigger is greater
than two hundred and twenty-five percent (225%) but less than two hundred and fifty percent (250%) of the Conversion Price, the greater of (1) three million (3,000,000) shares of Common Stock, as adjusted for any Common Stock
splits, Common Stock dividends on Common Stock or a similar event subsequent to the Original Issuance Date, or (2) ten (10) times the average daily trading volume on the National Exchange upon which such shares of Common Stock trade (the
“ADTV”) during the Reference Period; or 
 (B) if the VWAP Trigger is greater than or equal to
two hundred and fifty percent (250%) of the Conversion Price, the greater of (1) six million (6,000,000) shares of Common Stock, as adjusted for any Common Stock splits, Common Stock dividends on Common Stock or similar event
subsequent to the Original Issuance Date, or (2) ten (10) times the ADTV during the Reference Period. 

(iii) In order to convert shares of Series A Preferred Stock into shares of Common Stock pursuant to Section 5(b)(i),
the Company shall, within five Business Days after a Forced Conversion Determination Date, give written notice (a “Forced Conversion Notice”, and the date of such notice, a “Forced Conversion Notice Date”) to each
holder of record of shares of Series A Preferred Stock stating that the Company elects to force conversion of such shares of Series A Preferred Stock and shall state therein (i) the number of shares of Series A Preferred Stock to be converted,
(ii) the VWAP of the shares of Common Stock during the Reference Period, (iii) the Company’s computation of the number of shares of Common Stock to be received by the holder, and (iv) the date of such conversion, which shall be
no more than 10 Trading Days following the Forced Conversion Determination Date (the “Conversion Date”). Upon receipt of a Forced Conversion Notice by a holder, to the extent that the holder was issued physical certificates, the
holder must surrender the certificates representing the shares of Series A Preferred Stock to be converted at the office of the Transfer Agent (or at the principal 

 

 6 

 office of the Company, if the Company serves as its own transfer agent). If reasonably
required by the Transfer Agent or the Company, certificates surrendered for conversion must be endorsed or accompanied by a written instrument of transfer, in a form reasonably satisfactory to the Transfer Agent or the Company, as applicable, duly
executed by the registered holder or his, her or its attorney-in-fact duly authorized in writing. 
 (c) Fractional
Shares. No fractional shares of Common Stock will be issued upon conversion of the Series A Preferred Stock. In lieu of fractional shares, the Company shall pay cash equal to such fractional amount multiplied by the last reported sales price of
the Common Stock on the National Exchange on which such Common Stock is then listed or admitted to trading at the close of the Trading Day immediately prior to the Conversion Date. If more than one share of Series A Preferred Stock is being
converted at one time by the same holder, then the number of full shares issuable upon conversion will be calculated on the basis of the aggregate number of shares of Series A Preferred Stock converted by such holder at such time. 

(d) Mechanics of Conversion. 

(i) As soon as practicable after the Conversion Date, the Company shall promptly issue and deliver to such holder a
certificate for the number of shares of Common Stock to which such holder is entitled, together with a check or cash for payment in lieu of a fractional share, if any. Such conversion will be deemed to have been made on the Conversion Date, and the
person entitled to receive the shares of Common Stock issuable upon such conversion shall be treated for all purposes as the record holder of such shares of Common Stock from and after such Conversion Date. Notwithstanding the foregoing, if the
Transfer Agent is participating in the Depository Trust Company (“DTC”) Fast Automated Securities Transfer program, and so long as the certificates therefore do not bear a legend, and the holder thereof is not then required to
return such certificate for the placement of a legend thereon, the Company shall cause the Transfer Agent to promptly electronically transmit the Common Stock issuable upon conversion to the holder by crediting the account of the holder or its
nominee with DTC through its Deposit Withdrawal Agent Commission system (“DTC Transfer”). If the aforementioned conditions to a DTC Transfer are not satisfied, the Company shall deliver as provided above to the holder physical
certificates representing the Common Stock issuable upon conversion. In case fewer than all the shares of Series A Preferred Stock represented by any such certificate are to be converted, a new certificate shall be issued representing the
unconverted shares without cost to the holder thereof, except for any documentary, stamp or similar issue or transfer tax due because any certificate for shares of Common Stock or Series A Preferred Stock are issued in a name other than the name of
the converting holder. The Company shall pay any documentary, stamp or similar issue or transfer tax due on the issue of Common Stock upon conversion or due upon the issuance of a new certificate for any shares of Series A Preferred Stock not
converted other than any such tax due because shares of Common Stock or a certificate for shares of Series A Preferred Stock are issued in a name other than the name of the converting holder. 

 

 7 

 (ii) Not later than three (3) Trading Days after each Conversion Date
(the “Share Delivery Date”), the Company shall deliver, or cause to be delivered (by DTC Transfer or otherwise), to the converting holder the number of shares of Common Stock to which such holder is entitled, which shall be free of
restrictive legends and trading restrictions (other than those which may then be required by law or by the agreement pursuant to which the holder acquired the Series A Preferred Stock). The Company shall use its best efforts to deliver any shares of
Common Stock required to be delivered by the Company under this Section 5 electronically through DTC or another established clearing company performing similar functions. 

(iii) If such certificate or certificates are not delivered to or as directed by the applicable holder by the Share
Delivery Date, the holder shall be entitled to elect by written notice to the Company at any time on or before its receipt of such certificate or certificates to rescind such conversion, in which event the Company shall promptly return to the holder
any original Series A Preferred Stock certificate delivered to the Company. If such holder receives Common Stock certificates because such certificates were mailed to the holder before the Company received notice of the holder’s rescission, the
holder shall promptly return to the Company the Common Stock certificates. 
 (iv) The Company’s obligation
to issue and deliver the Common Stock upon conversion of Series A Preferred Stock in accordance with the terms hereof is absolute and unconditional, irrespective of any action or inaction by a holder to enforce the same, any waiver or consent with
respect to any provision hereof, the recovery of any judgment against any person or any action to enforce the same, or any setoff, counterclaim, recoupment, limitation or termination, or any breach or alleged breach by such holder or any other
person of any obligation to the Company or any violation or alleged violation of law by such holder or any other person, and irrespective of any other circumstance which might otherwise limit such obligation of the Company to such holder in
connection with the issuance of such Common Stock; provided, however, that such delivery shall not operate as a waiver by the Company of any such action that the Company may have against such holder. In the event a holder shall elect
to convert any or all of its Series A Preferred Stock, the Company may not refuse conversion based on any claim that such holder or any one associated or affiliated with such holder has been engaged in any violation of law, agreement or for any
other reason, unless an injunction from a court, on notice to holder, restraining and/or enjoining conversion of all or part of the Series A Preferred Stock of such holder shall have been sought and obtained, and the Company posts a surety bond for
the benefit of such holder in the amount of $1.00 per share of Series A Preferred Stock that is subject to the injunction, which bond shall remain in effect until the completion of arbitration/litigation of the underlying dispute and the proceeds of
which shall be payable to such holder to the extent it obtains judgment. In the absence of such injunction, the Company shall issue Common Stock and, if applicable, cash, upon a properly noticed conversion. If as a result of the gross negligence or
willful misconduct of the Company or any of its officers, directors, employees or agents, either the Transfer Agent or the Company fails to deliver to a holder such shares of Common Stock pursuant to Section 5(d)(ii) on or before the third
Trading Day after the Share Delivery Date applicable to such conversion, the Company shall pay to such 
  

 8 

 holder, in cash, as liquidated damages and not as a penalty, for each $5,000 of Stated Value
of the Series A Preferred Stock being converted, $50 per Trading Day (increasing to $100 per Trading Day on the third Trading Day and increasing to $200 per Trading Day on the sixth Trading Day after such damages begin to accrue) for each Trading
Day after such second Trading Day after the Share Delivery Date until such shares are delivered or holder rescinds such conversion. Nothing herein shall limit a holder’s right to pursue actual damages for the failure by the Company or the
Transfer Agent to deliver Common Stock within the period specified herein and such holder shall have the right to pursue all remedies available to it hereunder, at law or in equity including, without limitation, a decree of specific performance
and/or injunctive relief. The exercise of any such rights shall not prohibit a holder from seeking to enforce damages pursuant to any other Section hereof or under applicable law. 

(v) The Company shall at all times reserve and keep available, free from any preemptive rights, out of its authorized but
unissued shares of Common Stock solely for the purpose of effecting the conversion of the Series A Preferred Stock, the full number of shares of Common Stock deliverable upon the conversion of all outstanding Series A Preferred Stock (assuming for
the purposes of this calculation that all outstanding shares of Series A Preferred Stock are held by one holder), and the Company shall take all actions to amend its Certificate of Incorporation to increase the authorized amount of Common Stock if
necessary therefor. The Company shall comply with all federal and state laws, rules and regulations (including, without limitation, the registration or approval, if required, of any shares of Common Stock) and applicable rules and regulations of any
securities exchange or automated quotation system on which the Common Stock is then listed or quoted. The shares of Common Stock issued upon conversion of the Series A Preferred Stock shall be listed on a National Exchange and shall be freely
tradable. Before taking any action which would cause an adjustment reducing the Conversion Price below the then par value of the shares of Common Stock issuable upon conversion of the Series A Preferred Stock, the Company will take any corporate
action which may, in the opinion of its counsel, be necessary in order that the Company may validly and legally issue fully paid and nonassessable shares of Common Stock at such adjusted Conversion Price. 

(vi) From and after the Conversion Date, Dividends on the Series A Preferred Stock to be converted on such Conversion Date
will cease to accrue; said shares will no longer be deemed to be outstanding; and all rights of the holder thereof as a holder of Series A Preferred Stock (except the right to receive from the Company the Common Stock upon conversion) shall cease
and terminate with respect to such shares; provided that in the event that a share of Series A Preferred Stock is not converted due to a default by the Company or because the Company is otherwise unable to issue the requisite shares of Common
Stock, such share of Series A Preferred Stock will remain outstanding and will be entitled to all of the rights as provided herein. Any shares of Series A Preferred Stock that have been converted will, after such conversion, be deemed cancelled and
retired and have the status of authorized but unissued Preferred Stock, without designation as to series until such shares are once more designated as part of a particular series by the Board. 

 

 9 

 (vii) If the conversion is in connection with any public offering or other
sale, the conversion may, at the option of any holder tendering any share of Series A Preferred Stock for conversion, be conditioned upon the closing of the sale of shares of Series A Preferred Stock with the underwriter or other purchaser in such
sale, in which event such conversion of such shares of Series A Preferred Stock shall not be deemed to have occurred until immediately prior to the closing of such sale. 

(e) Adjustments to Conversion Price. 

(i) Special Definitions. For purposes of this Section 5(e), the following definitions apply: 

(A) “Options” means any rights, options, warrants or similar securities to subscribe for, purchase or
otherwise acquire Common Stock or Convertible Securities. 
 (B) “Convertible Securities” means
any debt or other evidences of indebtedness, capital stock or other securities directly or indirectly convertible into or exercisable or exchangeable for Common Stock. 

(C) “Additional Shares of Common Stock” means any shares of Common Stock issued or, as provided in clause
(iv) below, deemed to be issued by the Company after the Original Issuance Date; provided that Additional Shares of Common Stock will not include any of the following: 

(1) shares of Common Stock issued or issuable as a dividend or other distribution on shares of Series A Preferred Stock;

 (2) shares of Common Stock issued or issuable upon conversion of shares of Series A Preferred Stock; and

 (3) shares of Common Stock, as adjusted for stock dividends, splits, combinations and similar events, issued
or issuable (including shares of Common Stock issued or issuable upon the exercise of Options granted) to employees, officers or directors of, or consultants or advisors to, the Company or any of its majority- or wholly-owned subsidiaries pursuant
to the Seré Option Agreements, the Rankin Option Agreements, the Company’s 2005 Stock Option Plan, as amended, its 2006 Long-Term Incentive Plan, as amended (or any similar long-term incentive plan subsequently approved by the
Company’s stockholders). 
 (D) “Measurement Date” means the date of issuance of Additional
Shares of Common Stock. 
 (ii) Adjustment of Conversion Price Upon Issuances of Additional Shares of Common
Stock. Except as set forth in Subsections 5(e)(iv), (v), (vi) and (vii), if the Company issues or is deemed to issue Additional Shares of Common Stock to any person (including without limitation in connection with a material corporate
transaction) 
  

 10 

 without consideration or for a consideration per share less than the then-existing
Conversion Price per share of Common Stock on the Measurement Date, then the Conversion Price will be reduced, effective at the close of business on the Measurement Date, to a price per share received by the Company for such issue or deemed issue of
the Additional Shares of Common Stock; provided that if such issuance or deemed issuance was without consideration, then the Company shall be deemed to have received an aggregate of $0.01 of consideration for all such Additional Shares of Common
Stock issued or deemed to be issued. 
 (iii) Determination of Consideration. The Fair Market Value of the
consideration received by the Company for the issue of any Additional Shares of Common Stock will be computed as follows: 

(A) Cash and Property. Consideration consisting of cash and other property will: 

(1) insofar as it consists of cash, be computed at the aggregate of cash received by the Company, excluding amounts paid
or payable for accrued interest or accrued dividends; 
 (2) insofar as it consists of property other than cash,
be computed at the Fair Market Value thereof on the Measurement Date; and 
 (3) insofar as it consists of both
cash and other property, be the proportion of such consideration so received, computed as provided in clauses (1) and (2) above, as determined in good faith by the Board. 

(B) Options and Convertible Securities. The consideration per share received by the Company for Options and
Convertible Securities will be determined by dividing: 
 (1) the total amount, if any, received or receivable
by the Company as consideration for the issue of such Options or Convertible Securities, plus the minimum aggregate amount of additional consideration (as set forth in the instruments relating thereto, without regard to any provision contained
therein for a subsequent adjustment of such consideration) payable to the Company upon the exercise, conversion or exchange of such Options or Convertible Securities, or in the case of Options for Convertible Securities, the exercise of such Options
for Convertible Securities and the conversion or exchange of such Convertible Securities, by 
 (2) the maximum
number of shares of Common Stock (as set forth in the instruments relating thereto, without regard to any provision contained therein for a subsequent adjustment of such number) issuable upon the exercise, conversion or exchange of such Options or
Convertible Securities. 
  

 11 

 (iv) Deemed Issuances of Additional Shares of Common Stock. The
maximum number of shares of Common Stock (as set forth in the instrument relating thereto without regard to any provision contained therein for a subsequent adjustment of such number) issuable upon the exercise, conversion or exchange of Options or
Convertible Securities will be deemed to be Additional Shares of Common Stock issued as of the time of the issuance of such Options or Convertible Securities; provided, however, that: 

(A) No adjustment in the Conversion Price will be made upon the grant of Options or Convertible Securities to employees,
officers or directors of, or consultants or advisors to, the Company or any of its majority- or wholly-owned subsidiaries pursuant to the Company’s 2006 Long-Term Incentive Plan, as amended (or any similar long-term incentive plan subsequently
approved by the Company’s stockholders). 
 (B) No adjustment in the Conversion Price will be made upon the
subsequent issuance of shares of Common Stock upon the exercise, conversion or exchange of such Options or Convertible Securities; 

(C) To the extent that shares of Common Stock are not issued pursuant to any Option or Convertible Security upon the
expiration or termination of an unexercised, unconverted or unexchanged Option or Convertible Security, the Conversion Price will be readjusted to the Conversion Price that would have been in effect had such Option or Convertible Security (to the
extent outstanding immediately prior to such expiration or termination) never been issued; and 
 (D) In the
event of any change in the number of shares of Common Stock issuable upon the exercise, conversion or exchange of any Option or Convertible Security, including but not limited to a change resulting from the anti-dilution provisions thereof or a
repricing of the exercise or conversion price thereof, the Conversion Price then in effect will be readjusted to the Conversion Price that would have been in effect as if, on the date of issuance, such Option or Convertible Security were
exercisable, convertible or exchangeable for such changed number of shares of Common Stock. 
 (v) Stock
Splits and Combinations. If the outstanding shares of Common Stock are split into a greater number of shares, the Conversion Price then in effect immediately before such split will be proportionately decreased. If the outstanding shares of
Common Stock are combined into a smaller number of shares, the Conversion Price then in effect immediately before such combination will be proportionately increased. These adjustments will be effective at the close of business on the date the split
or combination becomes effective. 
  

 12 

 (vi) Dividends and Other Distributions in Additional Shares of Common
Stock. If the Company declares or makes a dividend or other distribution payable in Additional Shares of Common Stock to holders of Common Stock, then the Conversion Price will be reduced, effective at the close of business on the Measurement
Date, to a price (calculated to the nearest cent) determined by multiplying such Conversion Price by a fraction: 

(A) the numerator of which will be the sum of (x) the number of shares of Common Stock outstanding, on a fully
diluted basis, immediately prior to the Measurement Date plus (y), in the case of Options and Convertible Securities, the number of shares of Common Stock which the aggregate consideration received by the Company for the total number of Additional
Shares of Common Stock so issued would purchase at the Conversion Price in effect immediately prior to the Measurement Date, and 

(B) the denominator of which will be the sum of (x) the number of shares of Common Stock outstanding immediately
prior to the Measurement Date plus (y) the number of such Additional Shares of Common Stock issuable or so issued. 

(vii) Dividends and Distributions Other Than In Additional Shares of Common Stock. If the Company declares or makes
a dividend or other distribution to holders of Common Stock payable in capital stock, other securities or other property (including but not limited to cash and evidences of indebtedness) other than Additional Shares of Common Stock, then the
Conversion Price will be reduced, effective at the close of business on the Measurement Date, to a price (calculated to the nearest cent) determined by multiplying such Conversion Price by a fraction: 

(A) the numerator of which will be (x) the Conversion Price less the (y) the Fair Market Value of such capital
stock, other securities or other property (including but not limited to cash and evidences of indebtedness) other than Additional Shares of Common Stock applicable to one share of Common Stock, and 

(B) the denominator of which will be the Conversion Price. 

If the Fair Market Value of such capital stock, other securities or other property (including but not limited to cash and evidences of
indebtedness) other than Additional Shares of Common Stock applicable to one share of Common Stock is equal to or greater than the Conversion Price, then in lieu of the foregoing adjustment, the Company shall provide that the holders of Series A
Preferred Stock will receive upon conversion thereof, in addition to the number of shares of Common Stock receivable thereupon, such capital stock, other securities or other property (including but not limited to cash and evidences of indebtedness)
that they would have received had their shares of Series A Preferred Stock been converted into Common Stock on the date of such event and had retained such capital stock, other securities or other property (including but not limited to cash and
evidences of indebtedness) receivable from the date of such event until the Conversion Date. 
  

 13 

 (viii) Minimum Adjustment. Notwithstanding the foregoing, the
Conversion Price will not be reduced if the amount of such reduction would be an amount less than $0.01, provided, that any adjustments that by reason of this Section 5(e)(viii) are not required to be made shall be carried forward and
taken into account in any subsequent adjustment. 
 (ix) Multiple Closing Dates. In the event the Company
shall issue on more than one date Additional Shares of Common Stock that are a part of one transaction or a series of related transactions and that would result in an adjustment to the Conversion Price pursuant to the terms of this Subsection 5(e),
then upon the final such issuance, the Conversion Price shall be readjusted to give effect to all such issuances as if they occurred on the date of the first such issuance (and without additional giving effect to any adjustments as a result of
subsequent issuances within such period). 
 (x) Rules of Calculation; Treasury Stock. All calculations
will be made to the nearest one-tenth of a cent or to the nearest one-hundredth of a share, as the case may be. The number of shares of Common Stock outstanding will be calculated on the basis of the number of issued and outstanding shares of Common
Stock on the Measurement Date, not including shares held in the treasury of the Company. The Company shall not pay any dividend on or make any distribution to shares of Common Stock held in treasury. 

(xi) Waiver. Notwithstanding the foregoing, the Conversion Price will not be reduced if the Company receives, prior
to the Measurement Date, written notice from the holders representing at least a majority of the then outstanding shares of Series A Preferred Stock, voting together as a separate class, that no adjustment is to be made as the result of a particular
issuance of Additional Shares of Common Stock or other dividend or other distribution on shares of Common Stock. This waiver will be limited in scope and will not be valid for any issuance of Additional Shares of Common Stock or other dividend or
other distribution on shares of Common Stock not specifically provided for in such notice. 
 (f) Effect of Reclassification,
Merger or Sale. If any of the following events occur, namely (x) any reclassification of or any other change to the outstanding shares of Common Stock (other than a stock split or combination to which Section 5(e) applies),
(y) any merger, consolidation or other combination of the Company with another person as a result of which all holders of Common Stock become entitled to receive capital stock, other securities or other property (including but not limited to
cash and evidences of indebtedness) with respect to or in exchange for such Common Stock, or (z) any sale, conveyance or other transfer of all or substantially all of the properties of the Company to any other person as a result of which all
holders of Common Stock become entitled to receive capital stock, other securities or other property (including but not limited to cash and evidences of indebtedness) with respect to or in exchange for such Common Stock, then shares of Series A
Preferred Stock will be convertible into the kind and amount of shares of capital stock, other securities or other property (including 

 

 14 

 
but not limited to cash and evidences of indebtedness) receivable upon such reclassification, change, merger, consolidation, combination, sale, conveyance or transfer by a holder of a number of
shares of Common Stock issuable upon conversion of such shares of Series A Preferred Stock (assuming, for such purposes, a sufficient number of authorized shares of Common Stock available to convert all such Series A Preferred Stock) immediately
prior to such reclassification, change, merger, consolidation, combination, sale, conveyance or transfer; provided, that: 

(i) if the holders of Common Stock were entitled to exercise a right of election as to the kind or amount of capital
stock, other securities or other property (including but not limited to cash and evidences of indebtedness) receivable upon such reclassification, change, merger, consolidation, combination, sale, conveyance or transfer, then the kind and amount of
capital stock, other securities or other property (including but not limited to cash and evidences of indebtedness) receivable in respect of each share of Common Stock issuable upon conversion of the Series A Preferred Stock upon such
reclassification, change, merger, consolidation, combination, sale, conveyance or transfer will be the kind and amount so receivable per share by a plurality of the holders of Common Stock; or 

(ii) if a tender offer (which includes any exchange offer) is made to and accepted by the holders of Common Stock under
circumstances in which, upon completion of such tender offer, the maker thereof, together with members of any group of which such maker is a part, and together with any affiliate or associate (as defined in Section 8) of such maker and any
members of any such group of which any such affiliate or associate is a part, own beneficially more than 50% of the outstanding shares of Common Stock, each holder of Series A Preferred Stock will be entitled to receive the highest amount of capital
stock, other securities or other property (including but not limited to cash and evidences of indebtedness) to which such holder would actually have been entitled as a holder of Common Stock if such holder had converted such holder’s Series A
Preferred Stock prior to the expiration of such tender offer, accepted such offer and all of the Common Stock held by such holder had been purchased pursuant to such tender offer, subject to adjustments (from and after the consummation of such
tender offer) as nearly equivalent as possible to the adjustments provided for in Section 5(e). 
 This Section 5(f) will similarly
apply to successive reclassifications, changes, mergers, consolidations, combinations, sales, conveyances and transfers. If this Section 5(f) applies to any event or occurrence, Section 5(e) will not apply. 

(g) Notice of Record Date. In the event of: 

(i) any stock split or combination of the outstanding shares of Common Stock; 

(ii) any declaration or making of a dividend or other distribution to holders of Common Stock in Additional Shares of
Common Stock, any other capital stock, other securities or other property (including but not limited to cash and evidences of indebtedness); 
  

 15 

 (iii) any reclassification, change, merger, consolidation, combination,
sale, conveyance or transfer to which Section 5(f) applies; or 
 (iv) a Liquidation Event; 

then the Company shall file with its corporate records and mail to the holders of record of the Series A Preferred Stock at their last addresses as shown
on the records of the Company, at least ten (10) days prior to the record date specified in (A) below or twenty (20) days prior to the date specified in (B) below, a notice stating: 

(A) the record date of such stock split, combination, dividend or other distribution, or, if a record is not to be taken,
the date as of which the holders of Common Stock of record to be entitled to such stock split, combination, dividend or other distribution are to be determined, or 

(B) the date on which such reclassification, change, merger, consolidation, combination, sale, conveyance, transfer or
Liquidation Event is expected to become effective, and the date as of which it is expected that holders of Common Stock of record will be entitled to exchange their shares of Common Stock for the capital stock, other securities or other property
(including but not limited to cash and evidences of indebtedness) deliverable upon such reclassification, change, merger, consolidation, combination, sale, conveyance, transfer or Liquidation Event. 

(h) Certificate of Adjustments. Upon the occurrence of each adjustment or readjustment of the Conversion Price pursuant to this
Section 5, the Company at its expense shall promptly compute such adjustment or readjustment in accordance with the terms hereof and furnish to each record holder of Series A Preferred Stock an officers’ certificate signed by two officers
of the Company, one of whom must be the Company’s principal executive officer and the other shall be the Company’s principal financial officer or treasurer, setting forth such adjustment or readjustment and showing in detail the facts upon
which such adjustment or readjustment is based and shall file a copy of such certificate with its corporate records. The Company shall, upon the reasonable written request of any holder of Series A Preferred Stock, furnish to such holder a similar
certificate setting forth (i) such adjustments and readjustments, (ii) the Conversion Price then in effect, and (iii) the number of shares of Common Stock and the amount, if any, of capital stock, other securities or other property
(including but not limited to cash and evidences of indebtedness) which then would be received upon the conversion of Series A Preferred Stock. 

(i) No Impairment. The Company may not, whether by any amendment of its Certificate of Incorporation, by any reclassification or
other change to its capital stock, by any merger, consolidation or other combination involving the Company, by any sale, conveyance or other transfer of any of its assets, by a Liquidation Event or by any other way, purposefully impair or restrict,
or seek to impair or restrict, its ability to convert shares of Series A Preferred Stock and issue shares of Common Stock therefor, or purposefully avoid or seek to avoid the observance or performance of any of the terms to be observed or performed
hereunder by the Company, but will at all times in good faith assist in the carrying out of all the provisions of this Section 5 and in the taking of all such action as may be necessary or appropriate in order to protect the conversion rights
of the holders of the Series A Preferred Stock against impairment to the extent required hereunder. 
  

 16 

 Section 6. Redemption. 

Each share of Series A Preferred Stock is redeemable as provided in this Section 6. 

(a) Redemption by the Holders. 

(i) On or at any time following the eight-year anniversary of the Original Issuance Date, a holder of Series A Preferred
Stock, at its sole option, may cause the Company to redeem all or part its shares of Series A Preferred Stock (including all or part of its PIK Preferred Shares) upon the delivery of a Holder Redemption Notice (as defined below) at a redemption
price per share (the “Redemption Price”), payable in cash, equal to the sum of (A) the Original Purchase Price plus (B) all accrued and unpaid dividends on such share of Series A Preferred Stock, in each case as adjusted
for any stock dividends, splits, combinations and similar events. 
 (ii) A holder of Series A Preferred Stock
may request the redemption of its Series A Preferred Stock in cash pursuant to Section 6(a)(i) at any time following the eight-year anniversary of the Original Issuance Date by delivering to the Company (i) thirty (30) days’
written notice (a “Holder Redemption Notice”) requesting the redemption of its Series A Preferred Stock pursuant to Section 6(a)(i), and (ii) to the extent that the Holder was issued physical certificates, the original
certificate(s) evidencing the shares of Series A Preferred Stock being redeemed. 
 (b) Redemption by the Company.

 (i) On and at any time after a Liquidation Event, the Company, at its sole option, may redeem all or part of
the outstanding shares of Series A Preferred Stock (including all or part of the PIK Preferred Shares) by payment in cash for an amount equal to the Redemption Price per share of Series A Preferred Stock. 

(ii) The Board shall fix a record date for the determination of the shares of Series A Preferred Stock to be redeemed, and
such record date shall not be more than thirty (30) days nor less than sixty (60) days prior to the Redemption Date. The Company shall deliver a notice of redemption not less than thirty (30) nor more than sixty (60) days prior
to the Redemption Date, addressed to the holders of record of the Series A Preferred Stock as they appear in the records of the Company. Each notice must state the following: (A) the record date and Redemption Date; (B) the Redemption
Price as of the record date (it being understood that the actual Redemption Price will be determined as of the Redemption Date); (C) the number of shares of Series A Preferred Stock to be redeemed; (D) the place where the Series A
Preferred Stock are to be surrendered for payment of the Redemption Price; and (E) that dividends on the shares to be redeemed will cease to accrue on such Redemption Date. Notwithstanding the foregoing, if the Series A Preferred Stock is held
in book-entry form through DTC, the Company may give such notice in any manner permitted by DTC. 
  

 17 

 (iii) Notwithstanding the foregoing, the Company may not redeem at its
election pursuant to this Section 6(b) any shares of Series A Preferred Stock if such action would result in a default by the Company under the terms of the credit agreement governing its senior credit facility (the “Restrictive
Debt”). If the Company is unable to redeem the Series A Preferred Stock in cash, then the holder of the shares of Series A Preferred Stock surrendered for redemption may elect to receive shares of Common Stock with a Fair Market Value equal
to the Series A Redemption Price in lieu of cash. 
 (c) Mechanics of Redemption. 

(i) The Company shall pay the Redemption Price not later than five (5) business days following the earlier of the
following dates: (x) to the extent that the Holder was issued physical certificates, the Holder’s surrender of the certificates representing the shares of Series A Preferred Stock to be redeemed (properly endorsed or assigned for transfer,
if the Board shall so require and is so stated in the notice sent by the Company); provided that if such certificates are lost, stolen or destroyed, the Board may require such holder to indemnify the Company, in a reasonable amount and in a
reasonable manner, prior to paying such Redemption Price; or (y) the date on which instructions have been given by the Holder to DTC for transfer of the shares of Series A Preferred Stock to be redeemed. In case fewer than all the shares
represented by any such certificate are to be redeemed, a new certificate shall be issued representing the unredeemed shares without cost to the holder thereof, except for any documentary, stamp or similar issue or transfer tax due because any
certificate for shares Series A Preferred Stock are issued in a name other than the name of the redeeming holder. The Company shall pay any documentary, stamp or similar issue or transfer tax due upon the issuance of a new certificate for any shares
of Series A Preferred Stock not redeemed other than any such tax due because a certificate for shares Series A Preferred Stock is issued in a name other than the name of the converting holder. 

(ii) From and after the Redemption Date, Dividends on the Series A Preferred Stock to be redeemed on such Redemption Date
will cease to accrue; said shares will no longer be deemed to be outstanding; and all rights of the holder thereof as a holder of Series A Preferred Stock (except the right to receive from the Company the Redemption Price) shall cease and terminate
with respect to such shares; provided that in the event that a share of Series A Preferred Stock is not redeemed due to a default in payment by the Company or because the Company is otherwise unable to pay the Redemption Price, such share of Series
A Preferred Stock will remain outstanding and will be entitled to, without interruption, all of the rights as provided herein. In case fewer than all the shares represented by any such certificate are to be redeemed, a new certificate shall be
issued representing the unredeemed shares without cost to the holder thereof. Any shares of Series A Preferred Stock that have been redeemed will, after such redemption, be deemed cancelled and retired and have the status of authorized but unissued
Preferred Stock, without designation as to series until such shares are once more designated as part of a particular series by the Board. 
  

 18 

 (iii) Notwithstanding the foregoing, unless full cumulative dividends on all
shares of Series A Preferred Stock will have been or contemporaneously are declared and paid or are declared and a sum sufficient for the payment thereof is set apart for payment for all past dividend periods and the then current dividend period,
(i) no share of Series A Preferred Stock may be redeemed unless all outstanding shares of Series A Preferred Stock are simultaneously redeemed and (ii) the Company shall not purchase or otherwise acquire directly or indirectly any share of
Series A Preferred Stock; provided, however, that the foregoing shall not prevent the redemption on a pro rata basis of shares of Series A Preferred Stock or the purchase or other acquisition of shares of Series A Preferred Stock
pursuant to a purchase or exchange offer made on the same terms to holders of all outstanding shares of Series A Preferred Stock. 

(iv) If fewer than all of the outstanding shares of Series A Preferred Stock are to be redeemed, the shares of Series A
Preferred Stock to be redeemed must be selected pro rata (as nearly as may be practicable without creating fractional shares) or by any other equitable method determined by the Board. 

(v) Notwithstanding anything in this Section 6 to the contrary, each holder shall retain the right to convert shares
of Series A Preferred Stock held by such holder at any time on or prior to the Redemption Date, in which event such holder shall not be entitled to receive the Redemption Price. 

(vi) The Company may not, whether by any amendment of its Certificate of Incorporation, by any reclassification or other
change to its capital stock, by any merger, consolidation or other combination involving the Company, by any sale, conveyance or other transfer of any of its assets, by a Liquidation Event or by any other way, purposefully impair or restrict, or
seek to impair or restrict, its ability to redeem shares of Series A Preferred Stock, or purposefully avoid or seek to avoid the observance or performance of any of the terms to be observed or performed hereunder by the Company, but will at all
times in good faith assist in the carrying out of all the provisions of this Section 6 and in the taking of all such action as may be necessary or appropriate in order to protect the redemption rights of the holders of the Series A Preferred
Stock against impairment to the extent required hereunder. 
 Section 7. Form. 

(a) Global Preferred Shares. Series A Preferred Stock may, at the Company’s option, in its sole discretion, be issued in the
form of one or more permanent global shares of Series A Preferred Stock in definitive, fully registered form (each, a “Global Preferred Share”). The Global Preferred Shares may have notations, legends or endorsements required by
law, stock exchange rules, agreements to which the Company is subject, if any, or usage (provided that any such notation, legend or endorsement is in a form acceptable to the Company). The aggregate number of shares represented by each Global
Preferred Share may from time to time be increased or decreased by adjustments made on the records of the Transfer Agent and DTC or its nominee as hereinafter provided. Global Preferred Shares shall be registered in the name of DTC, which shall be
the holder of such shares. This Section 7(a) shall apply only to Global Preferred Shares deposited with or on behalf of DTC. 
  

 19 

 (b) Delivery to DTC. If Global Preferred Shares are issued, the Company shall execute
and the Transfer Agent shall, in accordance with this Section 7, countersign and deliver initially one or more Global Preferred Shares that (i) shall be registered in the name of a nominee of DTC and (ii) shall be delivered by the
Transfer Agent to DTC or pursuant to instructions received from DTC or held by the Transfer Agent as custodian for DTC pursuant to an agreement between DTC and the Transfer Agent. 

(c) Agent Members. If Global Preferred Shares are issued, members of, or participants in, DTC (“Agent Members”)
shall have no rights under this Certificate of Designations with respect to any Global Preferred Share held on their behalf by DTC or by the Transfer Agent as the custodian of DTC or under such Global Preferred Share, and DTC may be treated by the
Company, the Transfer Agent and any agent of the Company or the Transfer Agent as the absolute owner of such Global Preferred Share for all purposes whatsoever. Notwithstanding the foregoing, nothing herein shall prevent the Company, the Transfer
Agent or any agent of the Company or the Transfer Agent from giving effect to any written certification, proxy or other authorization furnished by DTC or impair, as between DTC and its Agent Members, the operation of customary practices of DTC
governing the exercise of the rights of a holder of a beneficial interest in any Global Preferred Shares. If Global Preferred Shares are issued, DTC may grant proxies or otherwise authorize any Person to take any action that a holder is entitled to
take pursuant to the Series A Preferred Stock, this Certificate of Designations, the Certificate of Incorporation or the Bylaws. 

(d) Physical Certificates. Owners of beneficial interests in any Global Preferred Stock shall not be entitled to receive physical
delivery of certificated Series A Preferred Stock, unless (x) DTC has notified the Company that it is unwilling or unable to continue as depositary for the Global Preferred Shares and the Company does not appoint a qualified replacement for DTC
within 90 days, (y) DTC ceases to be a “clearing agency” registered under the Exchange Act and the Company does not appoint a qualified replacement for DTC within 90 days or (z) the Company decides to discontinue the use of
book-entry transfer through DTC. In any such case, the Global Preferred Shares shall be exchanged in whole for definitive Series A Preferred Stock in registered form. Such definitive Series A Preferred Stock shall be registered in the name or names
of the person or persons specified by DTC in a written instrument to the Transfer Agent. 
 (e) Signature. An authorized
officer of the Company shall sign any Global Preferred Share for the Company, in accordance with the Company’s Bylaws and applicable law, by manual or facsimile signature. If an officer whose signature is on a Global Preferred Share no longer
holds that office at the time the Transfer Agent countersigned the Global Preferred Share, the Global Preferred Share shall be valid nevertheless. A Global Preferred Share shall not be valid until an authorized signatory of the Transfer Agent
manually countersigns the Global Preferred Share. Each Global Preferred Share shall be dated the date of its countersignature. 
  

 20 

 Section 8. Public Filings. As an accommodation to each holder of Preferred Stock
who is required to report such holders beneficial ownership of the Company’s securities pursuant to Section 16 of the Exchange Act (the “Section 16 Holders”), the Company will furnish, prepare and file reports concerning
the Section 16 Holders’ beneficial ownership of the Company’s securities with the Securities and Exchange Commission on Forms 3, 4 and 5, as applicable. Each Section 16 Holder is obligated to promptly provide information to the
Company concerning any change in his, her or its beneficial ownership of the Company’s securities to ensure timely filing. The Company will provide drafts of each filing applicable to the Section 16 Holder for his, her or its review and
the Company will pay all costs, fees and expenses associated with such filings. 
 Section 9. Additional
Definitions. For purposes of these resolutions, the following terms shall have the following meanings: 
 (a)
“affiliate” means, with respect to any specified person, any other person that directly or indirectly through one or more intermediaries, controls, is controlled by or is under common control with, such specified person, for so long
as such other person remains so associated to such specified person; 
 (b) “associate” has the meaning given
such term in Rule 12b-2 under the Exchange Act. 
 (c) “beneficial owner” or “beneficially
own” has the meaning given such term in Rule 13d-3 under the Exchange Act, and a person’s beneficial ownership of securities will be calculated in accordance with the provisions of such Rule; provided, however, that a
person will be deemed to be the beneficial owner of any security which may be acquired by such person whether within sixty (60) days or thereafter, upon the conversion, exchange or exercise of any rights, options, warrants or similar securities
to subscribe for, purchase or otherwise acquire (x) capital stock of any person or (y) debt or other evidences of indebtedness, capital stock or other securities directly or indirectly convertible into or exercisable or exchangeable for
such capital stock of such person. 
 (d) “capital stock” means any and all shares, interests, participations
or other equivalents (however designated, whether voting or non-voting) of capital stock, partnership interests (whether general or limited) or equivalent ownership interests in or issued by such person, and with respect to the Company includes,
without limitation, any and all shares of Common Stock and the Preferred Stock. 
 (e) “Cash Dividend Rate”
means an initial rate per annum equal to 8.0% applicable during the period between the Original Issuance Date and the third anniversary of the Original Issuance Date, and thereafter a rate per annum equal to 9.6%. 

(f) “Change in Control” means the occurrence of any of the following: 

(i) the direct or indirect sale, lease, transfer, conveyance or other disposition (other than by way of merger,
consolidation or business combination), in one or a series of related transactions, of all or substantially all of the properties or assets of the Company and its subsidiaries taken as a whole to any “person” (as that term is used in
Section 13(d)(3) of the Exchange Act); 
  

 21 

 (ii) the adoption of a plan relating to a Liquidation Event; 

(iii) the consummation of any transaction (including, without limitation, any merger, consolidation or business
combination), the result of which is that any person, becomes the beneficial owner, directly or indirectly, of more than fifty percent (50%) of the shares of Common Stock of the Company, measured by voting power rather than number of shares;

 (iv) the first day on which a majority of the members of the Board are not Continuing Directors; or

 (v) the consummation of a “Rule 13e-3 transaction” as defined in Rule 13e-3 under the Exchange Act
with respect to the Company. 
 (g) “Continuing Directors” means, as of any date of determination, any member
of the Board who (i) was a member of such Board on the Original Issuance Date or (ii) was nominated for election or elected to such Board with the approval of a majority of the Continuing Directors who were members of such Board at the
time of such nomination or election. 
 (h) “Equity Securities” means (x) any shares of capital stock of
the Company, (y) any rights, options, warrants or similar securities to subscribe for, purchase or otherwise acquire any shares of capital stock of the Company, and (z) debt or other evidences of indebtedness, capital stock or other
securities directly or indirectly convertible into or exercisable or exchangeable for any shares of capital stock of such the Company. 

(i) “Event of Default” means (i) the failure by the Company to pay in full, when due, any Dividend and such failure
continues for a period of 15 days following the receipt of notice thereof by any holder of Series A Preferred Stock, (ii) the failure by the Company to pay in full, when due, any Redemption Price or Liquidation Amount, (iii) the failure by
the Company to issue the full number of shares of Common Stock to which a holder of Series A Preferred Stock is entitled upon conversion and such failure continues for a period of 15 days, (iv) other than as specified in the foregoing clauses
(i), (ii) and (iii), a breach by the Company of any of the terms of the Certificate of Incorporation, or the Bylaws of the Company, which has a material adverse effect on the holders of Series A Stock that are parties thereto and which is not
cured within 15 days of notice thereof, (v) default by the Company under the terms of any agreement, security or other instrument evidencing material indebtedness of the Company, including but not limited to the Restrictive Debt, that allows
the other parties or holders thereof to accelerate such indebtedness, with or without a vote or notice, and such default has not been waived by such other parties or holders within 30 calendar days following such default or (vi) the voluntary
or involuntary bankruptcy, receivership, general assignment of assets for the benefit of creditors and similar events of insolvency. 
  

 22 

 (j) “Exchange Act” means the Securities Exchange Act of 1934, as amended,
and the rules and regulations promulgated thereunder. 
 (k) “Fair Market Value” of any property means the fair
market value thereof as determined in good faith by the Board, which determination must be set forth in a written resolution of the Board, in accordance with the following rules: 

(i) for a security traded or quoted on a national securities exchange or automated quotation system, the Fair Market Value
will be the average of the closing prices of such security on such exchange or quotation system over a 20-Trading Day period ending on the Trading Day immediately prior to the date of determination; 

(ii) for Common Stock that is not so traded or quoted, the Fair Market Value shall be determined: (x) mutually by the
Board and the holders of at least a majority of the then outstanding shares of Series A Preferred Stock or (y) by a nationally recognized investment bank or accounting firm (whose fees and expenses will be paid by the Company) selected by
mutual agreement between the Board and the holders representing at least a majority of the then outstanding shares of Series A Preferred Stock; or 

(iii) for any other property, the Fair Market Value shall be determined by the Board assuming a willing buyer and a
willing seller in an arm’s-length transaction; provided that if holders representing two-thirds of the then outstanding shares of Series A Preferred Stock object to a determination of the Board made pursuant to this clause (iii), then
the Fair Market Value of such property will be as determined by a nationally recognized investment banking or accounting firm (whose fees and expenses will be paid by the Company) selected by mutual agreement between the Board and the holders
representing at least a majority of the then outstanding shares of Series A Preferred Stock. 
 (l) “Forced Conversion
Determination Date” means the Trading Day immediately following the occurrence of a VWAP Trigger. 
 (m)
“group” has the meaning assigned to such term in Section 13(d) of the Exchange Act; 
 (n)
“hereof”, “herein” and “hereunder” and words of similar import refer to these resolutions as a whole and not merely to any particular clause, provision, section or subsection. 

(o) “Liquidation Event” means any event of any liquidation, dissolution or winding-up of the Company resulting in a
payment or distribution of assets to the holders of any class or series of the capital stock of the Company, whether voluntary or involuntary. 

(p) “National Exchange” means an exchange registered with the United States Securities and Exchange Commission under
Section 6(a) of the Exchange Act and any successor to such statute, or The NASDAQ Stock Market or any successor thereto. 
  

 23 

 (q) “Original Issuance Date” means the date on which the first share of
Series A Preferred Stock was issued. 
 (r) “person” means any individual, corporation, limited liability
company, limited or general partnership, joint venture, association, joint-stock company, trust, unincorporated organization, government or any agency or political subdivision thereof or any other entity or any group comprised of two or more of the
foregoing. 
 (s) “PIK Dividend Rate” means a rate per annum equal to 12.5%. 

(t) “Rankin Option Agreements” mean (1) that certain Non-Qualified Stock Option Agreement dated December 7,
2000 by and between GeoMet Resources, Inc. (renamed GeoMet, Inc.) and William C. Rankin, (2) that certain Amended and Restated Non-Qualified Stock Option Agreement dated December 2, 2008 by and between GeoMet, Inc. (formerly GeoMet
Resources, Inc.) and William C. Rankin (amending and restating Non-Qualified Stock Option Agreement dated May 19, 2003), (3) that certain Amended and Restated Non-Qualified Stock Option Agreement dated December 2, 2008 by and between
GeoMet, Inc. (formerly GeoMet Resources, Inc.) and William C. Rankin (amending and restating Non-Qualified Stock Option Agreement dated September 22, 2003), and (4) that certain Amended and Restated Non-Qualified Stock Option Agreement
dated December 2, 2008 by and between GeoMet, Inc. (formerly GeoMet Resources, Inc.) and William C. Rankin (amending and restating Non-Qualified Stock Option Agreement dated April 27, 2004). 

(u) “Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 (v) “Seré Option Agreements” mean (1) that certain Non-Qualified Stock Option Agreement dated
December 7, 2000 by and between GeoMet Resources, Inc. (renamed GeoMet, Inc.) and J. Darby Seré, (2) that certain Amended and Restated Non-Qualified Stock Option Agreement dated December 2, 2008 by and between GeoMet, Inc.
(formerly GeoMet Resources, Inc.) and J. Darby Seré (amending and restating Non-Qualified Stock Option Agreement dated May 19, 2003), (3) that certain Amended and Restated Non-Qualified Stock Option Agreement dated December 2,
2008 by and between GeoMet, Inc. (formerly GeoMet Resources, Inc.) and J. Darby Seré (amending and restating Non-Qualified Stock Option Agreement dated September 22, 2003), and (4) that certain Amended and Restated Non-Qualified
Stock Option Agreement dated December 2, 2008 by and between GeoMet, Inc. (formerly GeoMet Resources, Inc.) and J. Darby Seré (amending and restating Non-Qualified Stock Option Agreement dated April 27, 2004). 

(w) “Stated Value” means $10 for each share of Series A Preferred Stock. 

(x) “Trading Day” means a day on which the principal National Exchange on which the shares of Common Stock are listed or
admitted for trading is open for the transaction of business or, if the shares of Common Stock are not listed or admitted for trading on any National Exchange, a day on which banking institutions in New York generally are open. 

 

 24 

 (y) “VWAP Trigger” means any period during which the daily volume-weighted
average trading price of the shares of the Common Stock on the National Exchange on which the shares of the Common Stock are then listed or admitted to trading (the “VWAP”) has been greater than two hundred and twenty-five percent
(225%) of the Conversion Price for twenty (20) out of the trailing thirty (30) Trading Days. 
 [Rest of page
intentionally left blank.] 
  

 25 

 IN WITNESS WHEREOF, the Company has caused this Certificate of Designations to be executed
by a duly authorized officer of the Company as of             , 2010. 
  

			
	GEOMET, INC.
		
	By:	 	  

		 	Name:
		 	Title:

  

 26 

 EXHIBIT II 

1. The Company is a corporation validly exisiting and in good standing under the laws of the State of Delaware.

 2. The Company has the corporate power and authority to conduct its business as Previously Disclosed and has
taken all corporate action necessary to authorize the execution, delivery and performance of the Investment Agreement. 

3. The Registration Statement, as of its effective date, and the Prospectus Supplement, as of its date (such documents,
together with the Registration Statement and the Prospectus Supplement, the “SEC Documents”) (other than the financial statements and supporting schedules included therein or omitted therefrom, as to which we need express no
opinion) complied as to form in all material respects with the relevant requirements of the Securities Act of 1933, as amended. 

4. Based solely on certificates of public officials, the Company is duly qualified as a foreign corporation to transact
business and is in good standing in each state specified in Schedule      hereto as of the date specified in such Schedule. 

5. The Backstop Shares have been duly authorized and, when issued and delivered by the Company as provided in the
Investment Agreement against payment of the consideration set forth therein, will be have been validly issued and fully paid and non-assessable and the issuance of the Backstop Shares will not be subject to preemptive rights pursuant to the General
Corporation Law of the State of Delaware, the certificate of incorporation or by-laws of the Company or, to our Knowledge, any other agreement to which the Company is a party or is bound by. 

6. Each subsidiary identified on Schedule      hereto (a “Subsidiary”) is
validly existing as a limited liability company or corporation in good standing under the laws of the jurisdiction of its incorporation, has the corporate power and authority to conduct its business as Previously Disclosed and, based solely on the
certificates of public officials, is duly qualified as a foreign corporation to transact business and is in good standing in each state specified in Schedule      hereto as of the date specified in such Schedule.

 7. The Investment Agreement has been duly executed and delivered by the Company and constitutes the valid and
binding obligation of the Company, enforceable against it in accordance with its terms. 
 8. No filing with, or
authorization, approval, consent, license, order, registration, qualification or decree of, any court or governmental authority or agency, domestic or foreign (other than under the Securities Act and the regulations thereunder, which have been
obtained, or as may be required under the securities or blue sky laws of the various states or foreign jurisdictions, as to which such counsel need express no opinion) is necessary or required in connection with the due authorization, execution and
delivery of the Investment Agreement or for the offering, issuance, sale or delivery of the Backstop Shares. 

9. The execution and delivery by the Company of the Investment Agreement do not, and the performance by the Company of its
obligations thereunder will not, breach or result in a default or the creation of any lien under any agreement or instrument listed in Schedule      hereto (the “Applicable Contracts”) or any order, writ,
judgment, injunction, decree, determination or award listed in Schedule      hereto, result in a violation by the Company or any Subsidiary of any Applicable Laws, nor will such action violate the articles of
incorporation, certificate of formation or bylaws of the Company or any Subsidiary. 

 10. The Company is not required, and upon the issuance and sale of the
Backstop Shares as herein contemplated and the application of the net proceeds therefrom as described in the Investment Agreement will not be required, to register as an “investment company” under the Investment Company Act of 1940, as
amended. 
 11. To the best of such counsel’s Knowledge, there is not pending or threatened any action,
suit, proceeding, inquiry or investigation, to which the Company or any Subsidiary is a party, or to which the property of the Company or any Subsidiary is subject, before or brought by any court or governmental agency or body, domestic or foreign,
which would reasonably be expected to result in a Material Adverse Effect, or which would reasonably be expected to materially and adversely affect the properties or assets thereof or the consummation of the transactions contemplated in the
Investment Agreement or the performance by the Company of its obligations thereunder other than as disclosed in the Disclosure Schedule. [To be provided by separate counsel to the Company.] 

In addition, such counsel shall confirm that nothing has come to its attention that would lead it to believe that the SEC Documents
(except for financial statements and schedules and other financial data included therein or omitted therefrom, as to which it need make no statement), as of the respective filing dates thereof, contained an untrue statement of a material fact or
omitted to state a material fact required to be stated therein or necessary to make the statements therein not misleading or that, at the Closing Date, the SEC Documents (except for financial statements and schedules and other financial data
included therein or omitted therefrom, as to which it need make no statement) included or includes an untrue statement of a material fact or omitted or omits to state a material fact necessary in order to make the statements therein, in the light of
the circumstances under which they were made, not misleading.Investment Agreement

 Exhibit 10.5 

SETTLEMENT, RELEASE AND CONFIDENTIALITY AGREEMENT 

This Settlement, Release and Confidentiality Agreement (the “Agreement”) is entered into on this
16th day of April, 2010, by and between CONSOL ENERGY
INC., ISLAND CREEK COAL COMPANY, and CONSOLIDATION COAL COMPANY, its and their parents, subsidiaries, affiliates, successors and assigns and its and their respective officers, members, employees, managers, and directors (collectively,
“CONSOL”) and CNX GAS CORPORATION, CNX GAS COMPANY LLC, and CARDINAL STATES GATHERING 
 COMPANY, its and their
parents, subsidiaries, affiliates, successors and assigns and its and their respective officers, members, employees, managers, and directors (collectively, “CNX GAS”) and GEOMET, INC., GEOMET GATHERING COMPANY, LLC, and GEOMET OPERATING
COMPANY, INC., its and their parents, subsidiaries, affiliates, successors and assigns and its and their respective officers, members, employees, managers and directors (collectively, “GeoMet”). GeoMet, CNX Gas and CONSOL may be
collectively referred to as the “Parties” and individually as a “Party”. 
 WHEREAS, CONSOL, CNX Gas and
GeoMet have various administrative and civil actions against each other which are pending before various tribunals in the State of West Virginia and the Commonwealth of Virginia which are more specifically set forth on Exhibit F attached
hereto and incorporated herein (the “Litigation”); and 
 WHEREAS, it is the desire of the Parties to end the
Litigation, 
 NOW, THEREFORE, for and in consideration of the mutual promises and undertakings of the Parties hereto, the
Parties agree as follows: 
 1. Consents to Stimulate. CONSOL grants GeoMet consents to stimulate coal seams, as set forth
and pursuant to the conditions set forth in the Agreement for Conditional Consent to Stimulate dated contemporaneously with this Agreement by and between CONSOL and GeoMet 
  

 1 

 attached hereto as Exhibit A for all wells proposed by GeoMet to be drilled in the following
units located in the Oakwood Field, Buchanan County, Virginia wherein GeoMet owns at least 50% of the unit acreage (collectively, the “GeoMet Units”): 
  

	 	•	 	 A34, 35, 36, 37, 40, 41, 42, 43 

  

	 	•	 	 B34, 35, 36, 39, 43, 44, 45, 46, 49, 50 

  

	 	•	 	 C34, 35, 36., 37, 38, 43, 44, 45, 46, 47, 48 

  

	 	•	 	 D33, 34, 35, 36, 37, 38, 43, 44, 45, 46 

  

	 	•	 	 E33,34,35,36,37,43,44,45 

  

	 	•	 	 F33,34,35,36,37,38,44 

  

	 	•	 	 WWW4O 

  

	 	•	 	 XXX41,42 

  

	 	•	 	 YYY34, 35, 36, 37, 41,42 

  

	 	•	 	 ZZZ35,36,37,39,40,41 

2. Statements of No Objection. CONSOL will provide GeoMet with an executed Statement of No Objection for each location that GeoMet
proposes to drill in the GeoMet Units in the form attached hereto as Exhibit B within thirty days of its receipt of the form properly completed by GeoMet. If any coal owner or coal operator not affiliated with CONSOL objects to a
proposed drilling location for a vertical well on any of the GeoMet Units, and CONSOL does not have a bona fide mine plan for the mining of such coal within five years of the date of such objection, CONSOL will agree to an amended well location that
accommodates such other coal owner or coal operator’s plans or objections. If CONSOL does have a bona fide mine plan that provides for the mining of coal within five years of the date of such objection, CONSOL will provide a copy of such plan
to GeoMet, and GeoMet shall have the opportunity to propose an amended well location that accommodates the mine plans or objections of both CONSOL and such other coal owner or coal operator. 

 

 2 

 3. CNX Gas Agreement with GeoMet. CNX Gas will use commercially reasonable efforts to
remove units C38, P33, F34, P35, F36, F37 and P38 from the CNX Gas Energy Inc. joint Area of Mutual Interest dated June 3, 2005. CNX Gas will enter into an Agreement with GeoMet on the terms and conditions contained in the Agreement attached
hereto as Exhibit C for the following units (defined herein as the “GeoMet Farm-in Units”), totaling approximately 741 net acres: 
  

	 	•	 	 A36,37,40,4 

  

	 	•	 	 B34, 39, 49, 50 

  

	 	•	 	 C34, 38, 43, 45, 46, 47, 48 

  

	 	•	 	 D33, 38, 43, 44, 45, 46 

  

	 	•	 	 E33, 37, 43, 44, 45, 46 

  

	 	•	 	 F33, 34, 35, 36, 37, 38, 44, 45 

  

	 	•	 	 ZZZ35,36,37 

CNX Gas will terminate any pooling orders granted to it covering any of the GeoMet Farm-in Units in which CNX Gas was previously
designated operator and will agree to not oppose GeoMet’s pooling applications covering the GeoMet Farm4n Units. If the consent or approval of any lessor is necessary in order to realize the intent of this Agreement, CNX Gas will use
commercially reasonable efforts to obtain each such consent or approval. 
 4. GeoMet Agreement with CNX Gas. GeoMet will
assign to CNX and CNX will accept an assignment of GeoMet’s rights, duties and obligations under the Equitable Production Company (“EQT”) Farmout dated August 16, 2004 (the “EQT Farmout”) and amended by that 

 

 3 

 certain Amendment of Farmout Agreement dated January 15, 2010 attached hereto as Exhibit
I insofar and only insofar as the EQT Farmout covers acreage within the CNX Units, as defined below, in the form as attached hereto as Exhibit H Partial Assignment of Farmout Agreement and with the consent of EQT, covering the
following units (“CNX Units”) totaling approximately 708 net acres: 
  

	 	•	 	 A31,32,33 

  

	 	•	 	 B32, 33, 40,41,42,52 

  

	 	•	 	 C33, 39, 49, 50 

  

	 	•	 	 D32,47 

  

	 	•	 	 E32,38 

  

	 	•	 	 F32,46 

  

	 	•	 	 G37,38,45 

  

	 	•	 	 YYY32, 33 

  

	 	•	 	 ZZZ31,32,33,34 

 GeoMet
will terminate any pooling orders granted to it covering any of the CNX Units in which GeoMet was previously designated operator and will agree to not oppose CNX Gas’s pooling applications covering the CNX Units. GeoMet affirms, represents and
warrants that GeoMet is not in default of any material term of the EQT Farmout. GeoMet shall obtain the consent of EQT Production Company (“EQT”) to the Partial Assignment of Farmout Agreement attached hereto as Exhibit H to assign the
portion of the EQT Farmout covering the CNX Units and the agreement of EQT to allow CNX Gas to retain its rights in any acreage earned and wells drilled thereon under the EQT Farmout notwithstanding a default by GeoMet. The EQT consent and agreement
to allow CNX to retain its rights shall be in the form attached hereto as Exhibit H  
  

 4 

 Further, GeoMet shall obtain the agreement of the lessors as set forth in Exhibit J to allow
CNX Gas to retain its rights in any acreage earned and the wells drilled thereon notwithstanding a default or any other action that would result in the forfeiture of the lease by GeoMet or EQT. 

5. Joint Operating Agreements for Jointly Owned Wells. GeoMet and CNX Gas will use commercially reasonable efforts to negotiate
the terms of a mutually acceptable joint operating agreement for any well to be drilled in an Oakwood unit wherein both Parties own interests, prior to the spudding of such well. If such efforts do not produce an agreement within one year or in time
to meet a drilling obligation, whichever occurs first, then either Party may force pool the other’s affected acreage. 
 6.
Area of Mutual Interest. An Area of Mutual Interest covering the GeoMet Units and the CNX Units will be created in the form as attached hereto as Exhibit D. 

7. Surface Easement. CONSOL or CNX Gas, as appropriate, will provide GeoMet non-exclusive surface easements (the
“Easements”) over and across the property acquired by CNX Gas from Heartwood Forestland Fund as shown on Attachment I to the attached Exhibit E-l (the “Land”) for access roads, pipelines, and power lines in such
locations to be later identified for accessing, operating, and maintaining future wells to be drilled by GeoMet on the Land. The form of the Easement shall be substantially in the form attached hereto as Exhibit E-1. As such future
wells are planned, GeoMet shall identify the specific location of any Easement required for access to or operation and maintenance of such well and have a survey plat of the required Easements prepared. GeoMet shall submit the easement form and
prepared plat to CONSOL or CNX Gas, as appropriate for execution. The appropriate Party, CONSOL or CNX, shall execute the Easement and return it to GeoMet for recording within ninety (90) days or indicate in writing as soon as possible but no
later than ninety (90) days whether the specific location would 
  

 5 

 unreasonably interfere with the development of the Land, including without limitation the production and
removal of the coal, oil, gas and coalbed methane and any products or by-products thereof by any method now known or hereafter developed, so that GeoMet may propose alternative easement locations. On even date herewith, CNX Gas Company LLC and
GeoMet Operating Company, Inc. have entered into a Non-Exclusive Right-of-Way for a road to GeoMet’s Slate Creek Compressor Station as shown on Exhibit E-2. 

8. Prohibition against Lobbying. GeoMet and all of its parents, subsidiaries or affiliates agree that from and after the execution
of this Agreement between CONSOL, CNX Gas and GeoMet, that GeoMet and all of its parents, subsidiaries or affiliates will cease efforts to amend and shall remain neutral on any proposed legislation to amend the Virginia Gas & Oil Act, Va.
Code § 45.1-36 1.1 et seq. with respect to the 2,500’ Rule and the Consent to Stimulate Rule including but not limited to Va. Code § 45.1-361.11, 45.1-361.12, 45.1-361.29, and 45.1- 361.36. GeoMet and all of its parents, subsidiaries
or affiliates agree that should it fail to remain neutral or engage in any efforts to amend, then it shall have breached the terms of the Agreement and, in addition to any damages, the consents to stimulate will be withdrawn. For the purpose of this
Agreement, a “failure to remain neutral” shall include, but not be limited to, an expression of an opinion by GeoMet or any of their parents, subsidiaries or affiliates arid their officers, directors, employees or agents regarding the
2,500’ Rule and the Consent to Stimulate Rule, however communicated, and any lobbying activities to change the relative provisions of the Virginia Oil and Gas Act. “Lobbying means”: 

(a) Influencing or attempting to influence executive, administrative, or legislative action through oral or written communication with an
executive, administrative or legislative official; or 
  

 6 

 (b) Solicitation or payment to others to influence an executive, administrative or
legislative official. 
 9. Release of all Claims and Dismissal of Pending Actions. 

a. CONSOL, CNX Gas and GeoMet agree, represent and warrant that the consideration given pursuant to this Agreement is in full and final
satisfaction of all causes of actions and claims that CONSOL, CNX Gas and GeoMet asserted or could have asserted in the litigation listed in Exhibit F attached hereto and any related matters or any other unrelated claims that accrued
prior to the effective date so that the parties have forever bought their peace. CONSOL, CNX Gas and GeoMet understand, agree and represent that the covenants made herein and the releases herein executed may affect their rights and liabilities to a
substantial extent, and the CONSOL, CNX Gas and GeoMet agree and represent that the covenants and releases provided herein are in their respective best interests on the date hereof. CONSOL, CNX Gas and GeoMet hereby presently, generally, fully,
finally, and forever, releases, acquit and discharge one another, their respective officers, members, managers, directors, subsidiaries, affiliates, parents, successors and assigns, collectively and individually from any and all claims or causes of
actions, and from any and all damages, directly or indirectly arising or accruing before the effective date, including, but not limited to, any and all claims or causes of actions, and all damages from, related to or in connection with the
litigation listed in Exhibit F attached hereto and any related matters or unrelated claims that arose or accrued prior to the effective date so that they have forever bought their peace, and any claims that could have been made as to
litigation listed in Exhibit F attached hereto, whether they be in contract, tort, or State or Federal laws, arising out of the matters described in litigation listed in Exhibit F attached hereto. 

 

 7 

 b. The list of civil and regulatory actions pending between the Parties is attached as
Exhibit F with the exception of CNX Gas Company LLC v. GeoMet Operating Inc. et al. case No. CLO7000 16; orders dismissing each such action with prejudice are attached as Exhibit G CONSOL, CNX Gas and GeoMet agree
to dismiss all of the administrative appeals that either has filed involving the other Party and/or its affiliated companies. It is contemplated that upon dismissal of these administrative appeals, neither the decision nor the order from which the
appeal(s) was taken shall be deemed affected in any way by the dismissal of the appeal and the order from which the appeal was taken shall be deemed final. The Orders shall be signed by the Parties at the same time as this Settlement Agreement. Both
parties shall use reasonable efforts to secure the endorsement of counsel for third parties. The Orders shall be tendered to the appropriate court or agency within five days of the Effective Date defined in paragraph 10 below or as soon thereafter
as reasonably practical. The Parties agree to jointly seek the agreement of Pocahontas Mining Limited Liability Company to dismiss with prejudice the case styled GeoMet Operating Company, Inc. and Pocahontas Mining Limited Liability Company v.
CNX Gas Company LLC et al, Case No. CL337-06. The Parties further agree to continue to cooperate regarding the necessary notice and other administrative requirements in CNX Gas Company LLC v. GeoMet Operating Inc. et al., case No.
CL0700016. To avoid future disputes, the Parties will agree to use commercially reasonable efforts to communicate with each other and resolve issues arising from their operations in Virginia and West Virginia. 

10. Conditions Precedent to Effectiveness. The Parties will execute separate copies of Exhibit A, Exhibit
C - Farmout Agreement, Exhibit D - Area of Mutual Interest Agreement, Exhibit E-2 - Right of Way Agreement for access to the compressor station located near Slate Creek, Exhibit G - Orders of
Dismissal for each pending action and Exhibit H - Partial 
  

 8 

 Assignment of Farmout Agreement simultaneously with the execution of this Agreement. Once the conditions
precedent to the effectiveness of this Agreement have been met, each Party will exchange signature pages (notarized where necessary) for each of the Exhibits with the other Party (the “Effective Date”). The conditions precedent are:

 a. GeoMet shall have entered into the agreement with CNX described in paragraph 4 above; 

b. CNX Gas and GeoMet shall have executed the agreement described in Paragraph 3 above; 

c. CNX Gas and Appalachian Energy Inc. shall have released from their Area of Mutual Interest the Units listed in Paragraph 3 above and
CNX Gas shall have furnished to GeoMet confirmation of such release signed by CNX Gas and Appalachian Energy Inc.; and 
 d. The
consents and approvals required from lessors under Paragraphs 3 and 4 above shall have been obtained, and furnished to each Party or been waived in writing by the applicable Party. 

e. The consents, required agreements, and approvals of EQT and LI3R shall have been obtained. 

11. Confidential. This Agreement is a privileged and confidential communication. Neither Party nor its counsel or agents shall
disclose, disseminate or release any of the details of this Agreement, specifically including the amount or the terms of settlement, by oral communication or publication of any sort, except as required by law, as necessary to record the agreements
reached herein, or as set forth in Exhibit K. 
 12. Legal Fees. Each Party is responsible for its own
attorney fees and costs associated with this Agreement and the pending actions. 
  

 9 

 13. Entire Agreement. This Agreement and the documents executed therewith constitute
the entire agreement of the Parties and supersede any prior understandings or written or oral agreements between the Parties respecting the compromise and settlement contained herein, taken together with the settlement agreement reached in
GeoMet, Inc. et al. v. CNX Gas Company, et al., Case No. CL344. No additional payments or actions are required by any of the Parties to effect the agreements reflected herein. No variations, amendments, modifications or changes herein or
hereof shall be binding upon a Party unless set forth in a document duly and fully executed by the Party. No Party has relied upon any agreement or representation not set forth or referenced herein whether oral or in writing. 

14. Representation by Counsel. Each Party represents and warrants that, in negotiating and executing this Agreement, it had
adequate opportunity to consult with competent counsel or other representatives of its choosing concerning the meaning and effect of each term hereof and that there are no representations, promises or agreements concerning the subject of this
Agreement between the Parties other than those set forth herein. 
 15. Binding Agreement. Each Party has carefully read
this Agreement in its entirety, and has had this Agreement explained to it by counsel. Each Party fully understands and agrees to these terms and conditions, and intends and agrees that the Agreement is final and binding and understands that, in the
event of a breach of this Agreement, the non-breaching Party may seek relief, including damages, restitution and injunctive relief, at law or in equity. 

16. Authority. Each Party represents and warrants that it presently owns 100% of the claims and damages released by this Agreement
and that no other person or entity owns any interest therein and that the Party is competent and possesses full and complete authority to covenant and agree as herein provided. 

 

 10 

 17. Enforcement. The Parties agree and covenant not to sue or prosecute any claims
released by this Agreement; however, the Parties are not prohibited from suing, prosecuting or enforcing any claims related to a breach of this Agreement. 

18. No Admission of Liability. This Agreement is the compromise of disputed claims and the agreement to settle those claims is not
to be construed as an admission of wrongdoing or liability of any kind or nature whatsoever on the part of either Party. 
 19.
Governing Law. This Agreement shall be governed by the law of Virginia. 
 20. Further Assurances. The Parties
agree to take all further actions and to execute, have acknowledged, and deliver all further documents that are necessary or useful in carrying out the purposes and intent of this Agreement. 

21. Exhibits. The Exhibits listed below are attached hereto and hereby incorporated in for all intents and purposes. 

 

			
	Exhibit A	  	Agreement for Conditional Consent to Stimulate
		
	Exhibit B	  	Form of Statement of No Objection
		
	Exhibit C	  	Farmout Agreement from CNX Gas to GeoMet
		
	Exhibit D	  	Area of Mutual Interest Agreement
		
	Exhibit E-1	  	Right of Way Agreement, including map of ROW
		
	Exhibit E-2	  	Right of Way Agreement, including map of ROW for Slate Creek
		
	Exhibit F	  	A list of the pending actions
		
	Exhibit G	  	An order of dismissal with prejudice for each of the pending actions
		
	Exhibit H	  	Partial Assignment of Farmout Agreement from GeoMet to CNX
		
	Exhibit I	  	Amendment of EQT Farmout Agreement

  

 11 

			
		
	Exhibit J	  	Letter Agreement with LBR Holdings, LLC
		
	Exhibit K	  	Representation Letter to LBR Holdings, LLC

22. Counterparts. This Agreement may be executed in counterparts. Signatures on separate originals shall constitute and be of the
same effect as signatures on the same original. Electronic and faxed signatures shall constitute original signatures. 

IN WITNESS WHEREOF, the Parties have signed this document as of the
16th day of April, 2010. 

 

									
	CONSOLIDATION COAL COMPANY	 		 	ISLAND CREEK COAL COMPANY
					
	By:	 	 /s/ William Gillenwater
	 		 	By:	 	 /s/ William Gillenwater

	Name:	 	 William Gillenwater
	 		 	Name:	 	 William Gillenwater

	Title:	 	 Power-of-Attorney
	 		 	Title:	 	 Power-of-Attorney

			
	CNX GAS COMPANY LLC	 		 	CARDINAL STATES GATHERING COMPANY
					
	By:	 	 /s/ William Gillenwater
	 		 	By:	 	 /s/ William Gillenwater

	Name:	 	 William Gillenwater
	 		 	Name:	 	 William Gillenwater

	Title:	 	 Power-of-Attorney
	 		 	Title:	 	 Power-of-Attorney

			
	CONSOL ENERGY, INC.	 		 	CNX GAS CORPORATION
					
	By:	 	 /s/ William Gillenwater
	 		 	By:	 	 /s/ William Gillenwater

	Name:	 	 William Gillenwater
	 		 	Name:	 	 William Gillenwater

	Title:	 	 Power-of-Attorney
	 		 	Title:	 	 Power-of-Attorney

 

 12 

									
	GEOMET GATHERING COMPANY, LLC	 		 	GEOMET, INC.
					
	By:	 	 /s/ J. Darby Seré
	 		 	By:	 	 /s/ J. Darby Seré

	Name:	 	 J. Darby Seré
	 		 	Name:	 	 J. Darby Seré

	Title:	 	 Manager
	 		 	Title:	 	 President

				
	GEOMET OPERATING COMPANY, INC.	 		 		 	
					
	By:	 	 /s/ J. Darby Seré
	 		 		 	
	Name:	 	 J. Darby Seré
	 		 		 	
	Title:	 	 President
	 		 		 	

  

 13 

 EXHIBIT A 

to that certain 

Settlement, Release and Confidentiality Agreement 

by and between CONSOL Energy Inc. et a!. 

and GeoMet, Inc. et a!. 

dated April 16, 2010 

AGREEMENT FOR CONDITIONAL CONSENT TO STIMULATE 

THIS AGREEMENT is made and entered into this             day of April,
2010, by and between CONSOL ENERGY, INC. (“CEI”), ISLAND CREEK COAL COMPANY (“IC”), CONSOLIDATION COAL COMPANY (“CCC”), and RESERVE COAL PROPERTIES COMPANY
(“RCP”) (each of IC, CCC and RCP a “Company”, collectively “Companies”) and GEOMET OPERATING COMPANY, INC. (“GEOMET”); 

W I T N E S S E T H: 

WHEREAS, each of the Companies controls by lease or otherwise or, it asserts that it is a coal owner or coal operator as defined by the
Virginia Gas and Oil Act of 1990, certain coal seams in the North Grundy and Garden Districts of Buchanan County, Virginia; and 

WHEREAS, GEOMET is an operator and producer of certain coalbed methane gas in certain of the coal seams controlled by each of the
Companies; and 
 WHEREAS, in order to obtain a drilling permit under Virginia law, the Virginia Gas and Oil Board has ruled
that GEOMET is required to submit a consent of each of the Companies to stimulate coal seams controlled by any such Company pursuant to Va. Code § 45.1-361.29; and 

WHEREAS, each of the Companies is willing to provide such consent pursuant to Va. Code § 45.1-361.29 on a well-by-well basis subject
to certain terms and conditions; 
  

 Exhibit A - 1 

 NOW, THEREFORE, for Ten Dollars ($10.00) and other good and valuable consideration, the
receipt and sufficiency of such is hereby acknowledged, in order to memorialize their understanding, the parties hereto hereby agree as follows: 

1. Attached hereto as Exhibit I and made part hereof is a map on which are marked seventy one (71) units in the North
Grundy and Garden Districts of Buchanan County, Virginia (the “Area”), for which GEOMET desires each of the Companies to grant consent to stimulate for each coal seam owned or operated by it. 

2. For each well proposed to be drilled by GEOMET within said units in the Area, each of the Companies will grant to GEOMET upon request
the right to stimulate any and all coalseams controlled by it affected by such well in the form attached hereto as Exhibit II subject to the terms and conditions contained in this Agreement. Within thirty (30) days of receipt of
GEOMET’s properly completed request, the Company shall provide its approval in the form attached hereto as Exhibit II. 

3. For all wells which GEOMET stimulates in the Area, (a) GEOMET will employ only stimulation techniques that are standard and best
practice techniques in the industry for stimulating coal seams that may be mined in the future, and (b) GEOMET will not use any stimulation technique or otherwise stimulate in a manner that reasonably could be expected to cause damage to or
otherwise adversely affect any coalseams controlled by any of the Companies or any of their Affiliates. As used herein “Affiliate” shall mean an entity that directly or indirectly through one or more intermediaries, controls,
or is controlled by, or is under common control with, the party at issue and, for purposes of this definition, the term “control” (including the terms “controlling,” “controlled by,” and “under common control
with”) means the possession, directly or indirectly, of the power to direct or cause the direction of management and policies. 

4. GEOMET agrees that, prior to GEOMET’s stimulation of any coalseam controlled by any of the Companies, GEOMET shall give notice of
its intention to stimulate, a description of 
  

 Exhibit A - 2 

 the stimulate technique that will be used, and the earliest date of its proposed stimulation, which shall be
not sooner than thirty (30) days after the date of such notice. Such notice and all other notices required to be given under the terms of this Agreement shall be sent by certified mail, postage prepaid, and directed as follows: 

Island Creek Coal Company 

Attn: Manager of Engineering 

PO Drawer L 

Oakwood, VA 24631 

Fax No.: (276) 498-8227 

GeoMet Operating Company, Inc. 

P.O. Box 749 

Pounding Mill, VA 24637 

Fax No.: (276) 963-2959 

or to such other address as each party hereto may designate by written notice to the other parties, and, except as herein otherwise provided, the deposit
in the mail of any such certified mail so addressed with postage prepaid shall, for the purpose of this Agreement be notice to the addressees of the contents of such letter. 

5. GEOMET agrees that, prior to GEOMET’s stimulation of any coalseam controlled by any of the Companies, GEOMET shall obtain such
Company’s prior approval of said stimulation technique. If GEOMET has not received written notice of the respective Company’s decision to withhold its approval at the end of the thirty (30) day period, it shall be deemed that Company
consented to the stimulation requested in the notice. Such Company may withhold such approval if it reasonably determines that such stimulation technique could reasonably be expected to affect the safe mining of the coal seam or the mineability of
the coal in the coal seam, in accordance with the safety standards then in effect or reasonably expected to be in effect in the future. It is stipulated herein that if any of the Companies has approved said stimulation technique within the past 12
months for use by CNX Gas Company LLC or any of its Affiliates or by GEOMET by 
  

 Exhibit A - 3 

 the granting of Consents to Stimulate in Buchanan County, Virginia, said stimulation technique shall be
deemed to be safe for the mining of the coalseam or the mineability of the coal in the coalseam, absent any actual or proposed changes to mine safety regulations or absent evidence of damage to or an adverse affect on the coalseam by said
stimulation technique. If such Company withholds consent, GEOMET may submit a revised stimulation plan or give notice to such Company of its intention to submit its plan to a neutral engineer who is familiar with both coal mining and with the
stimulation of coal seams for the production of coalbed methane gas, hereinafter the “neutral engineer”, to be selected by agreement of such Company and GEOMET. The neutral engineer shall, after receiving evidence from such Company and
GEOMET, determine whether the stimulation plan could reasonably be expected to affect the safe mining of the coalseam or the mineability of the coal in the coal seam, in accordance with the safety standards then in effect or reasonably expected to
be in effect in the future. The decision of the neutral engineer shall be binding on the parties. 
 6. GEOMET will plug at its
sole cost and expense and in accordance with any regulatory requirements in effect at the time of plugging that will allow for the safe mine through of such well, any well drilled in the Area that is included in an area for which any of the
Companies or any Affiliates of any of the Companies or CEI has an approved mine plan and permits for such mining at the request of any of the Companies or any Affiliates of any of the Companies or CEI. GEOMET shall plug such well pursuant to the
terms outlined below. The plugging procedures for vertical CBM wells that intersect the coalseam being mined by any of the Companies or any Affiliates of any of the Companies or CEI (the “Coalseam”) shall typically be as follows; provided,
however, that 
  

 Exhibit A - 4 

 regulatory requirements in effect at the time of plugging shall supersede the requirements of this section
and become part of this agreement and provided, however, that these procedures are identical or as close as reasonably possible to those employed by CNX Gas Company LLC or any of its Affiliates in Buchanan County, Virginia at the time of plugging:

 A. A down hole survey performed with an electric vertical deviation tool, in conjunction with surface surveys, shall be
performed to determine the coordinates of the intersection point with the Coalseam. 
 B. Wells that will be intersected by, or
that are located within 100 feet of active mine workings, shall be plugged prior to the active face coming to within 500 feet of the well. Plugging procedures are as follows: 

i. Tag fill level and well to establish all PBTD (Plugged Back Total Depth). 

ii. Remove production tubing. 

iii. Run tubing string to a minimum of 50 feet below the bottom of the Coalseam. 

iv. If GEOMET elects a Bottom Plug, cement will be placed from a minimum of 50 feet above the Coalseam to a minimum of 50 feet below the
Coalseam with Class A Cement. 
 v. If GEOMET elects a PTA (Plug to Abandon), cement will be placed from a minimum of 50
feet below the Coalseam to the surface. The Bottom Plug portion of the well will be plugged with Class A Cement. The well bore from the Bottom Plug to the surface is plugged using Class A Light Weight Cement. 

vi. For a PTA, a monument will be established using 2 inch tubing with a placard showing operator, well number, permit number, and plug
date (per Virginia Division of Gas and Oil Requirements). 
  

 Exhibit A - 5 

 vii. For wells in which the annulus between the casing and the well wall was not cemented 50
feet above and 50 feet below the Coalseam or where steel casing or steel tubing remains through the Coalseam, a well-specific plan will be developed and approved by the Company controlling such seam at issue prior to the active face coming to within
500 feet of the well. 
 viii. The annulus of all casing will be cemented from at least 50 feet below to 50 feet above the
Coalseam. A cement bond log will be run. 
 ix. If any casing is used through the Coalseam of any well drilled in the Area,
fiberglass casing should be used. 
 7. GEOMET agrees to indemnify and hold CBI, each of the Companies, and the Affiliates of
CEI and each of the Companies, and each of the aforementioned’s successors and assigns harmless from and against and damages or liability that they incur as a result of stimulation of the coal seams for which any of the Companies or any of the
Affiliates of the Companies or CEI, or any of the aforementioned’s successors or assigns is the coal owner or operator, including the value of any coal that is not mineable in a safe and commercially reasonable manner as a result of the
stimulation of the coalseam. 
 8. The term of this Agreement shall be as long as any well to which this Agreement applies has
not been plugged and abandoned. 
 9. No consent to stimulate granted herein can be assigned by GEOMET. Except as otherwise
expressly provided herein no rights obtained by this Agreement can be assigned; provided, however, CEI or any of the Companies may freely transfer and assign this Agreement among or between themselves or any of their Affiliates. 

10. This Agreement shall be controlled by the laws of the Commonwealth of Virginia. 

 

 Exhibit A - 6 

 11. No amendment to this Agreement shall be made unless it is in writing and executed by the
parties. 
 12. CEI and GEOMET acknowledge and agree that in the event any CEI Affiliate is a coal owner or coal operator as
defined by the Virginia Oil and Gas Act, with respect to certain coal seams in the Area, CEI shall cause such CEI Affiliate to be subject to all the terms and conditions of this Agreement as a Company hereunder and, GEOMET agrees that all terms and
conditions of this Agreement shall apply to each such CEI Affiliate as if such CEI Affiliate was a Company and a signatory hereto. The term “CEI Affiliate” shall mean any entity which CEI directly or indirectly through one or
more intermediaries controls and, for purposes of this definition, the term “controls” means the possession, directly or indirectly, by CEI of the power to direct or cause the direction of management and policies of such an entity.

 IN WITNESS WHEREOF, each party hereto has caused its name to be hereunto placed by its duly authorized officer or agent.

  

					
	CONSOL ENERGY INC.
		
	By:	 	  

		 	    Its	 	  

	
	ISLAND CREEK COAL COMPANY
		
	 By:
	 	  

		 	Its	 	  

	
	CONSOLIDATION COAL COMPANY
		
	 By:
	 	  

		 	Its	 	  

  

 Exhibit A - 7 

					
	RESERVE COAL PROPERTIES COMPANY
		
	 By:
	 	  

		 	    Its	 	  

	
	GEOMET OPERATING COMPANY, INC.
		
	 By:
	 	  

		 	Its	 	  

  

 Exhibit A - 8 

 EXHIBIT B 

to that certain 

Settlement, Release and Confidentiality Agreement 

by and between CONSOL Energy, Inc. et al 

and GeoMet, Inc. et al 

dated April 16, 2010. 

FORM OF STATEMENT OF NO OBJECTION 

Well Name: 
 Statement of No Objection to Well

 The undersigned hereby acknowledges receipt of a plat and other documents, if any, from GeoMet Operating Company, Inc., the
applicant operator, concerning operations on the
                                         
                    containing              acres, more or less, in the
                                        
District of Buchanan County, Virginia. 
 Execution of this statement is to record the fact that the undersigned has no objection to the
location of Well No.             , located at state plane coordinates: 

                         
                                         
                  . 
  

			
	[Name of affected CONSOL affiliate)
		
	 By:
	 	  

	 Name
	 	  

	 Title
	 	  

 

	
	 Address: _________________________________

	 Telephone No: ____________________________

	 Fax No: __________________________________

	 Date: ____________________________________

INFORMATION CONCERNING LOCATION OF DEEP MINE WORKINGS 

When drilled at the above location the well bore either: 

             will not penetrate deep mine workings, or 

             will penetrate existing deep mine workings, in the
following seams at approximately the following depths: 
  

 Exhibit B - 1 

 EXHIBIT C 

to that certain 

Settlement, Release and Confidentiality Agreement 

by and between CONSOL Energy Inc., et al. and 

GeoMet, Inc. et al. 

dated April 16 2010 

FARMOUT AGREEMENT 
  

			
	FARMOR:	  	CNX Gas Company LLC, a Virginia Limited Liability Company
		  	 1000 CONSUL Energy Drive

Canonsburg, PA 153 17-6506

		
	FARMEE:	  	 GeoMet, Inc., a Delaware corporation

5336 Stadium Trace Parkway, Suite 206

Birmingham, Alabama 35244

		
	AREA:	  	741 acres, more or less, located in Buchanan County, VA., and more particularly described on Exhibit “A” and set forth on the map attached as Exhibit
“B”

 THIS FARMOUT AGREEMENT DATED this — day of April, 2010, (hereinafter referred to as
the “Agreement”), is entered into by and between CNX Gas Company LLC, a Virginia limited liability company, with an office at 1000 CONSUL Energy Drive, Canonsburg, PA 153 17-6506, hereinafter referred to as
“FARMOR,” and GeoMet, Inc. as “FARMEE,” and shall be effective as hereinafter provided. 

WHEREAS, subject to the terms and conditions set forth herein, FARMOR agrees that FARMEE may acquire an interest in the coalbed
methane (“CBM”) only in the leasehold lands described on Exhibit “A” (“Leases”) and identified on the map attached hereto as Exhibit “B”, by reference made a part hereof:

 NOW THEREFORE, in consideration of the mutual covenants and agreements hereinafter set forth, it is agreed by the
parties as follows, to-wit: 
  

	1.	EXHIBITS 

 The following
exhibits are attached hereto and shall be considered part of this Agreement. 
 Exhibit “A” — Schedule of Leases
Subject to Farmout 
 Exhibit “B” — Map of Farmout Lands 

Exhibit “C” — Drilling and Geological Requirements 

Exhibit “D” — Form of Assignment 
  

 Exhibit C - 1 

	2.	DEFINITIONS 

  

	 	(A)	“Assignment” shall have the meaning set forth in Paragraph 6. 

 

	 	(B)	“Confidential Information” shall have the meaning set forth in Paragraph 19(L). 

 

	 	(C)	“Contract Depth” shall be a depth sufficient to adequately test CBM gas rights and CBM producing formations lying above 100 feet below the base
of the Pennsylvania Age Formation. 

  

	 	(D)	“Depths Earned” shall be defined as from the surface of the earth to One Hundred (100) feet below the deepest depth produced in each
Farmout Well for which Operating Rights are earned. 

  

	 	(E)	“Drilling Unit” means the area within the surface boundaries established or prescribed by field rules or order of the state and/or applicable
regulatory authority, e.g. the spacing unit, unit for production, or proration unit, not to exceed 80 acres in the form of a square, with the Farmout Well located at the center thereof as reasonably practical. Should the terms of this definition for
Drilling Unit conflict with the terms of the Lease(s), the terms of such Lease(s) shall prevail. This term to include any amendments and/or approvals that may be acquired from time to time from the Lessor(s) of such Lease(s) that would provide for
different unit configurations other than a square. 

  

	 	(F)	“Farmout Lands” means any and all interests owned and/or controlled as of the date of this Agreement by FARMOR in the Farmout Lands described in
Exhibit “A” and shown on Exhibit “B” attached hereto. 

  

	 	(G)	“Farmout Well” means any well drilled pursuant to the terms and conditions contained in Paragraph 3 herein below. 

 

	 	(H)	“Lease Burdens” means any now existing and of record, royalty, overriding royalty, production payment, and other similar burdens on productions,
exclusive of the Overriding Royalty Interest reserved and payable to FARMOR as set forth in herein. Lease Burdens shall not include any override or other burden (the “Akers Override”) that may arise from the Consulting Agreement between
GeoMet, Inc., GeoMet Operating Company, Inc., and James W. Akers dated May 24, 2000 or other similar agreement. 

  

	 	(I)	“Operating Rights” are the rights to operate, maintain, produce, and market CBM from arty Farmout Well drilled hereunder, including the right to
produce and market CBM from that portion and only that portion of the Farmout Lands lying within the Drilling Unit, and centered, as reasonably practicable, around the bottom hole location of each Farmout Well drilled which is capable of producing
in Paying Quantities, as hereinafter defined. 

  

 Exhibit C - 2 

	 	(J)	“Operating Rights Earned” are those Operating Rights earned by FARMEE, effective as of the date the Assignment is effective.

  

	 	(K)	“Overriding Royalty Interest” has the meaning set forth in Paragraph 7 herein. 

 

	 	(L)	“Paying Quantities” means Farmout Wells producing gas in quantities during a twelve (12) month period sufficient to yield a commercially
reasonable return in excess of operating costs, even though drilling and equipment costs may never be repaid, and the undertaking considered as a whole may ultimately result in loss. Where Farmout Wells are being de-watered, those Farmout Wells
shall be reviewed on an annual basis for determination as to their continued economic value to the field. Should the defined term of Paying Quantities as used herein conflict with the terms of the Lease(s), the Lease definition shall prevail.

  

	 	(M)	“Shut-In Well” means any Farmout Well shut-in that is capable of producing in commercial quantities. 

 

	 	(N)	“Unearned Farmout Lands” shall mean those Farmout Lands covered by this Agreement on which Operating Rights have not been earned by FARMEE
pursuant to the terms and conditions hereof. 

  

	3.	FARMOUT WELLS 

 (A)
FARMOUT WELLS: 
 Any and all Farmout Wells to be drilled hereunder by FARMEE must be drilled on or before January 31, 2013
(the “Drilling Termination Date”). All such Farmout Wells shall be drilled strictly in accordance with the following specifications: 
  

	 	(1)	Location: FARMEE’s choice on the Farmout Lands or on lands pooled or unitized therewith such that the Farmout Well is the distance permitted in accordance
with state Oil and Gas Board rules and regulations from any existing well (producing in the same formation). 

  

	 	(2)	Depth: All Farmout Wells shall be drilled to at least the Contract Depth, and not deeper than Contract Depth. 

 

	 	(3)	Completion Deadline: Within sixty (60) days after reaching total depth in each Well. 

 

	 	(4)	Plugging Deadline: Within one (1) year after reaching total depth in each Farmout Well drilled hereunder but not completed, or in accordance with the State
Oil and Gas Board rules and regulations, whichever is the earlier. Should the time period set forth herein conflict with the terms of the Lease(s), then in such event the time period set forth in such Lease shall prevail. 

 

 Exhibit C - 3 

	 	(5)	After Termination: FARMEE shall have no rights to further develop the Unearned Farmout Acreage from and after the Drilling Termination Date. FARMEE shall retain
the rights to any previously earned Operating Rights. 

  

	4.	TERM OF FARMOUT AGREEMENT 

This Agreement shall be in effect and shall not terminate until the earlier of: 

 

	 	(A)	a termination by default as a consequence of FARMEE’s failure to meet the obligations contained herein; 

 

	 	(B)	a termination of the Farmout Agreement dated August 16, 2004 covering certain lands in McDowell County, State of West Virginia and Buchanan County, Commonwealth of
Virginia by and between EQT Production Company (f/k/a Equitable Production Company) and GeoMet, Inc. as amended and modified by the parties thereto; 

  

	 	(C)	the Drilling Termination Date; or 

  

	 	(D)	FARMEE has earned Operating Rights for all Farmout Lands as provided for elsewhere in this Agreement. 

 

	5.	FORCE MAJEURE: 

 If FARMEE
is rendered unable, wholly or in part, by force majeure to carry out its obligations under this Agreement, other than the obligation to indemnify or make money payments or furnish security, FARMEE shall give to FARMOR prompt written notice of the
force majeure with reasonably full particulars concerning it; thereupon, the obligations of the FARMEE, so far as they are affected by the force majeure, shall be suspended during, but no longer than, the continuance of the force majeure. The term
force majeure, as here employed, shall mean an act of God, strike, lockout, or other industrial disturbance, act of the public enemy, war, blockade, public riot, lightning, fire, storm, flood or other act of nature, explosion, governmental action,
governmental delay, restraint or inaction, unavailability of equipment, and any other cause, whether of the kind specifically enumerated above or otherwise, which is not reasonable within the control of the party claiming suspension. 

The FARMEE shall use all reasonable diligence to remove the force majeure situation as quickly as practicable. The requirement that any
force majeure shall be remedied with all reasonable dispatch shall not require the settlement of strikes, lockouts, or other labor difficulty by the FARMEE, contrary to its wishes; how all such difficulties shall be handled shall be entirely within
the discretion of the FARMEE. 
  

 Exhibit C - 4 

	6.	ASSIGNMENT OF EARNED OPERATING RIGHTS: 

FARMEE agrees to, within sixty (60) days after drilling a Farmout Well which is capable of producing in Paying Quantities, request in
writing by certified mail from FARMOR, an Agreement and Assignment of Operating Rights. FARMEE’s request shall include a certified plat depicting the area of Operating Rights Earned by FARMEE as set out hereinabove. It is understood by the
parties that this request for Assignment may be made in groups of Farmout Wells and not on a Farmout Well-by-Farmout Well basis. Upon receipt of FARMEE’s request and after FARMOR is satisfied that FARMEE has complied with all its obligations
under this Agreement with regard to the completion of a Farmout Well drilled hereunder which is capable of production in Paying Quantities, including but not limited to all geologic requirements as set out in Exhibit “C”, FARMOR shall
deliver, without warranty of title to FARMEE, an Assignment of FARMOR’s interest in Operating Rights as more fully defined hereinabove in section 2(J). Said form of Assignment is attached hereto as Exhibit “D”. 

In the event FARMEE does not request an Assignment within said sixty (60) days, FARMEE shall pay to FARMOR the sum of $5,000.00 for
each sixty (60) day period beginning on the date the Farmout Well was completed and terminating on the date FARMOR received the written request from FARMEE for an Assignment, the amount to be prorated if necessary. 

In the event that FARMEE does not request an Assignment from FARMOR within one (1) year after the date the Farmout Well was
completed, FARMOR shall have, at its sole discretion, the option to take over said Farmout Well, or direct FARMEE to promptly proceed at FARMEE’s sole cost and expense to plug and abandon any Farmout Well situated upon the Farmout Lands subject
hereto which FARMEE has failed to comply with the time frame contained herein. In any event, FARMEE shall be required to pay to FARMOR all sums due and payable under the terms of this Paragraph regardless of the option FARMOR exercises. 

FARMOR acknowledges that FARMEE has earned an Assignment of Operating Rights to the following Drilling Units and the Farmout Wells located
thereon and agrees to execute and deliver to Farmee an Assignment of Operating Rights thereto within thirty days of the effectiveness of this Agreement: C-43, C-45, C-46, C-47, and TTT-35. 

 

	7.	RESERVED OVERRIDING ROYALTY INTEREST 

FARMOR hereby reserves and shall be entitled to an Overriding Royalty Interest equal to the difference between (i) twenty
(20%) percent less (ii) Lease Burdens, provided, however, if any of the Leases have Lease Burdens greater than or equal to twenty percent (20%) then the amount of the Overriding Royalty Interest shall be zero percent (0.00%) and
FARMOR shall not be entitled to payment for any Overriding Royalty Interest on said Lease. Including the Overriding Royalty Interest reserved by FARMOR, FARMOR shall deliver to FARMEE not less than an eighty percent (80.00%) net revenue
interest 
  

 Exhibit C - 5 

 on the Leases set forth on Exhibit “A” attached hereto. Such Overriding Royalty
Interest shall be paid and delivered from the sale of oil and/or gas without deductions of any kind from said gross proceeds. Any omission or failure by FARMOR to make this Overriding 

Royalty Interest reservation in any Assignment of Operating Rights shall not bar FARMOR from receiving said Overriding Royalty Interest.
The Overriding Royalty Interest due FARMOR shall be paid directly to FARMOR. If FARMOR’s leasehold interest is less than one hundred percent (100%) of the working interest on any tract included within the Drilling Unit, or if the Farmout
Lands contribute less than one hundred percent (100%) of the total Drilling Unit acreage, then said Overriding Royalty Interest shall be reduced proportionately by the percentage that the Farmout Lands contribute to the total Drilling Unit
acreage (or total working interest therein). Any Overriding Royalty Interest in the Farmout Lands shall survive termination of this Agreement and shall run with the Leases or tracts within the Drilling Unit for the life of the Drilling Unit until
the Farmout Well is plugged and abandoned and/or the termination of the Lease, which ever last occurs. All Overriding Royalties paid by FARMEE to FARMOR shall be calculated based on the area of Earned Operating Rights as set out hereinabove.

  

	8.	ABANDONMENT OF WELLS 

  

	 	(A)	In the event any Farmout Well drilled hereunder is completed as non-productive, or as one not capable of producing in Paying Quantities or ceases production, FARMEE
shall immediately give FARMOR a written notice thirty (30) days in advance of the proposed plugging and abandonment. For thirty (30) days after receipt of such written notice, FARMOR shall have the right but not the obligation, and without
payment to the FARMEE for any cost or expense incurred by FARMEE in bringing this Farmout Well to completion as the operator thereof, to take over the Farmout Well for the purpose of conducting additional operations as it desires; except that if a
drilling rig is on location, notice to plug and abandon may be given by telephone or fax and FARMOR’s response period shall be limited to forty-eight (48) hours, inclusive of Saturdays, Sundays, and legal holidays. In the event FARMOR
falls to advise FARMEE of its election within the prescribed period of time, then FARMOR shall be deemed to have elected to take over such Farmout Well and such Farmout Well shall be plugged and abandoned by FARMEE in accordance with the terms
hereof. This shall not apply to a Farmout Well located in a Well Unit in which another Farmout Well is currently producing. 

  

	 	(B)	In the event FARMEE plugs and abandons any Farmout Well(s) drilled on Farmout Lands, without written notification to FARMOR or without FARMOR’s approval, or fails
to give FARMOR a reasonable opportunity to consider its options as provided in Section 8(A) hereof, this Agreement, as to the Unearned Farmout Lands, shall forthwith terminate, but not as to those Operating Rights Earned in accordance with the
terms and conditions contained herein, and 

  

 Exhibit C - 6 

 FARMEE shall have no further rights hereunder as to the Unearned Farmout Lands, but FARMEE
shall, in any case remain responsible for the cost of abandonment including but not limited to restoration and reclamation of the surface acreage affected by the drilling of said Farmout Well(s). 

 

	 	(C)	In the event any term or condition set forth in this Paragraph 7 including any time periods conflict with the terms of the Lease(s), then in such event the time period
set forth in such Lease shall prevail. 

  

	9.	TAKEOVER BY FARMOR 

 If
FARMOR elects to take over a Farmout Well(s) under the terms and conditions referenced hereinabove, the effective date of the takeover shall be the date of approval of FARMOR as the successor Operator under the applicable rules and/or regulations or
when FARMOR takes actual custody of the Farm out Well, whichever is earlier. As soon as practicable thereafter, FARMOR shall reimburse FARMEE for the estimated salvage value of FARMEE’s salvageable equipment in and on the Farmout Well, less
estimated plugging costs, FARMEE shall then execute an instrument of assignment conveying to FARMOR all of FARMEE’s interest in said Farmout Well and associated equipment. FARMEE shall also assign to FARMOR all of its right, title and interest
in and to all leasehold, options, farmins, operating agreements, ownership interest, or other support agreements associated with the Farmout Well and any Operating Rights Earned by FARMEE, if any, pursuant to the terms and conditions hereunder.
FARMEE shall than have no further rights or obligations under this Agreement in connection with the Farmout Well(s) being taken over by FARMOR, except such rights, obligations and liabilities as accrued before the effective date of the FARMOR’
s succession as Operator. 
  

	10.	RENTALS/ROYALTY/SHUT-IN ROYALTY 

  

	 	(A)	Rentals: Payment of rentals which may be required under the terms of any Lease owned by FARMOR which are Farmout Lands subject hereto are to be paid by FARMOR and shall
be invoiced to FARMEE for reimbursement. FARMEE shall reimburse FARMOR within forty five (45) days after receipt by FARMEE of the invoice from FARMOR. Any balance which remains unpaid by FARMEE after the forty five (45) days shall earn the
maximum allowable interest and shall be deemed an event of Default of FARMEE’s obligations hereunder. 

  

	 	(B)	Royalty: FARMEE shall make proper payment and distribution of royalties and overriding royalties including the Overriding Royalty Interest due and payable pursuant to
any Lease, deed, or other instrument affecting title and which cover the Farmout Lands. Upon request by FARMOR, FARMEE shall provide FARMOR with copies of all Form 1099’s or copies of canceled checks as documentation of payment thereof.

  

 Exhibit C - 7 

	 	(C)	Shut-In Royalty: For any well drilled pursuant to this Agreement and pursuant to the Leases set forth on the attached Exhibit “A”, should shut-in royalties
become due and payable to a Lessor of such Lease, then in such event, any shut-in royalties due and payable to the Lessor of such Lease shall also be due and payable to FARMOR at the same time payment is made to such Lessor. FARMEE shall be
responsible for making proper payment and distribution of any and all Shut-In royalties due and payable pursuant to the terms of any Lease(s) owned by FARMOR which are Farmout Lands, or other instrument affecting title and which cover the Well(s)
drilled under this Agreement. Upon request by FARMOR, FARMEE shall provide FARMOR with copies of canceled checks as documentation of payment thereof. 

  

	11.	LIABILITY 

  

	 	(A)	All operations conducted in connection with this Agreement by FARMEE and pursuant to the terms hereof shall be at the sole risk and expense of FARMEE and under the
exclusive control of FARMEE, and FARMEE shall defend, indemnify and hold harmless FARMOR from and against and all costs, expenses, losses, liabilities, liens, encumbrances, damages, judgments, demands, lawsuits, claims, assessments, charges, fines,
penalties or expenses (including but not limited to attorney’s fees, or other costs of litigation, liability for environmental harm, damages to natural resources, drainage or mineral trespass, and costs of complying with orders or directives of
government entities or agencies) of any kind or character, whether contemplated or not contemplated at the time of this Agreement by either FARMOR or FARMEE, incurred by FARMEE or FARMOR and arising out of, in connection with, or resulting from the
operations, actions or omissions of FARMEE, including but not limited to the reconditioning of Farmout Wells, injection operations, drilling operations and plugging and abandonment operations, and surface operations and surface restoration
operations on Farmout Lands subject hereto or lands elsewhere or lands pooled or unitized therewith. 

  

	 	(B)	Except for liens created in accordance with section 19(D) hereinbelow, during the term of this Agreement, the FARMEE shall not create or cause to be created any liens
on the Farmout Lands and lands pooled or unitized therewith. 

  

	12.	WARRANTY OF TITLE 

 FARMOR
does not warrant title, either express or implied, to any of the Farmout Lands. 
  

	13.	NOTICES AND WELL INFORMATION 

  

	 	(A)	Well Information: All Farmout Well data, information, geophysical and geological information, evaluations or reports produced by or available to FARMEE
concerning the Farmout Lands shall be made available to FARMOR 

  

 Exhibit C - 8 

 upon request. Drilling and Farmout Well notices to FARMOR shall be given as provided in
Exhibit “C” hereof. Well data and information shall be held confidential between FARMOR and FARMEE for a period of one (1) year after any such Farmout Well drilled and completed or plugged, unless otherwise agreed by the parties
hereto in writing. 
  

	 	(B)	General Notices: All notices, payments or other correspondence provided for in this Agreement shall be made in writing, by telephone, or fax (as required herein)
as follows: 

  

			
	FARMOR:	  	CNX Gas Company LLC
		  	 Attn: Land Manager                  Phone:
304-323-6511
 2481 John Nash Blvd.

Bluefield, WV 25801                FAX: 304-323-6555

		
	FARMEE:	  	 GeoMet, Inc.
 Attn:
Land Manager
 5336 Stadium Trace Parkway, Suite 206 Phone: 1-205-425-3855

Birmingham, AL 35244            FAX: 1-205-425-4711

 

	14.	DEFAULT BY FARMEE 

 Time
being of the essence under this Agreement, in the event FARMEE fails to reimburse FARMOR for any costs related hereto, commence, continue drilling or complete any Farmout Well in accordance with the terms and conditions contained herein, this
Agreement shall terminate except as to those Assignments entered into by both the parties hereto in accordance with the terms and conditions as contained herein. 

FARMEE shall have a sixty (60) day grace period in which to cure such default. In the event such default is not cured by FARMEE
within the sixty (60) day grace period, this Agreement shall terminate except as to those Assignments of Operating Rights (or portions thereof) earned in accordance with the terms and conditions as contained herein. This termination of the
Agreement shall in no way relieve FARMEE of the obligation to plug and abandon any Farmout Well(s) drilled or acquired hereunder. Also, if FARMEE defaults, in addition to any other available legal or equitable remedies, FARMOR may elect to take over
operation (subject to the terms of Paragraph 8 hereof) of any Farmout Well, inclusive of but not limited to any Farmout Well which is scheduled to be plugged and abandoned by FARMEE, which has not yet satisfied the requirements of this Agreement. If
such well(s) are capable of producing in Paying Quantities, FARMEE shall be entitled to either: 1) reimbursement of its costs expended on such well(s), or 2) its 80% net revenue interest in the sales of production from such well(s) less 100% of the
operating costs of such well(s) including a reasonable overhead charge by FARMOR for operating such well(s). 
  

 Exhibit C - 9 

	15.	INSURANCE 

 While
operations are being conducted hereunder on the Farmout Lands or lands pooled or unitized therewith subject hereto, FARMEE agrees to acquire and/or maintain adequate Workers Compensation, and a minimum of Five Million dollars ($5,000,000) of
Comprehensive General Public Liability and Automobile Liability Insurance. FARMEE further agrees to name FARMOR as an additional insured under such insurance policies and further agrees to secure a waiver of subrogation in favor of FARMOR under each
of the insurance policies noted above. FARMEE shall provide FARMOR with current copies of said Certificate of Insurance so as to have on file with FARMOR current copies at all times during the term of this Agreement. FARMEE shall notify FARMOR
immediately of any changes in its insurance coverage. 
  

	16.	MODIFICATIONS AND AMENDMENTS 

The interests retained by FARMOR in the Farmout Lands, including but not limited to the Overriding Royalty Interest, shall apply to the
Farmout Lands, or extensions, renewals, modifications, or amendments related thereto. 
  

	17.	AUDITS 

 Upon written
notice to the FARMEE, FARMOR may audit• FARMEE’s books and records annually relating to all payments (including but not limited to royalty, overriding royalty, Overriding Royalty Interest, or other payments out of production) associated
with any Farmout Well drilled pursuant to this Agreement. Such audits rights may be exercised by notifying FARMEE in writing thirty (30) days prior to commencement of said audit. 

 

	18.	PREFERENTIAL RIGHT TO PURCHASE 

Should FARMEE desire to sell all or any part of its interest under this Agreement, or in the Farmout Lands, it shall promptly give written
notice to FARMOR, with full information concerning its proposed sale, which shall include the name and address of the prospective purchaser (who must be ready, willing and able to purchase), the purchase price, and all other terms of the offer.
FARMOR shall then have an optional prior right, for a period of thirty (30) days after receipt of the notice, to purchase on the terms and conditions the interest which FARMEE proposes to sell; and if this optional right is exercised, FARMOR
shall purchase the interests of FARMEE in the Farmout Lands contained within a Farmout Well or Drilling Unit. However, there shall be no preferential right to purchase in those cases where FARMEE wishes to mortgage its interests, or to dispose of
its interests by merger, reorganization, consolidation, or sale of all or substantially all of its assets to a subsidiary, parent company, or to a subsidiary of a parent company, or to any company in which FARMEE owns a majority of the stock.

  

 Exhibit C - 10 

	19.	GENERAL 

  

	 	(A)	FARMEE shall comply with all obligations, Lease Burdens and requirements set forth hereunder or otherwise associated with the Farmout Lands, including but not limited
to the provisions of any Lease, deed or other agreement, which covers the Farmout Lands. 

  

	 	(B)	FARMEE shall obtain permission to enter the Farmout Lands subject hereto from both the surface owner and tenant. Further, FARMEE agrees to settle surface damages and to
clean up and restore the Farmout Lands and any other lands upon which FARMEE drills or operates pursuant to this Agreement, as nearly as possible to its original condition, consistent with all applicable statues, rules and regulations.
Notwithstanding anything to the contrary herein, the provisions of this Paragraph shall survive any termination or expiration of this Agreement. 

  

	 	(C)	FARMOR’s employees and authorized representatives, at the sole risk of FARMOR, shall have access to the derrick floor of any Farmout Well at all times.

  

	 	(D)	The parties hereto agree that a major part of the consideration for entering into this Agreement is the representations of the FARMEE and the belief of the FARMOR that
the FARMEE has: 

  

	 	i.	the expertise and ability to explore, drill upon, operate, and maintain the Farmout Lands or lands subject hereto in a prudent and workmanlike manner;

  

	 	ii.	the necessary financial resources and oil and gas marketing ability; and 

  

	 	iii.	the reputation for honesty and integrity and the standing in the oil and gas industry as an expert, reliable and dependable producer and marketer of oil and gas.

 Therefore, the FARMEE and FARMOR agree that this Agreement, the Farmout Lands, properties, interests or Leases
subject hereto may not be assigned, conveyed, transferred, leased, sublet, or set over by any agreement or contract whatsoever by FARMEE without the prior written consent of FARMOR, which consent shall not be unreasonably withheld. This Paragraph
shall not be construed to prohibit such transactions with wholly owned entities, corporations and subsidiary or affiliated companies, provided the parent company or individual FARMEE promptly notifies FARMOR prior to the transaction and guarantees
the performance of all of the terms and conditions of this Agreement. Any such entity, corporation, subsidiary or affiliated company shall not be sold, merged, reorganized, or transferred so as to violate the intent and purpose of this Paragraph.
Notwithstanding anything to the contrary herein, FARMEE may pledge, mortgage and hypothecate FARMEE’s Operating Rights Earned to secure borrowed money. 
  

 Exhibit C - 11 

	 	(E)	A failure by any party hereto to exercise any right or rights or to take any authorized action shall in no way serve to permanently amend or modify this Agreement, nor
shall a departure from the terms and conditions of the Agreement establish a course of conduct of amending this Agreement. This Agreement cannot be modified except in writing. Activities of parties cannot be construed to modify the terms hereof.

  

	 	(F)	This Agreement and all of its terms and conditions shall be construed under the laws of the Commonwealth of Virginia. 

 

	 	(G)	This Agreement shall not create, nor shall it be construed as creating, a common law or statutory mining, oil and gas or other partnership. 

 

	 	(H)	All Exhibits hereinabove referred to are incorporated by reference to the same extent and purpose had they been set forth at length in the body itself. The terms and
provisions of the Exhibits shall be effective in all respects except that if a conflict exists between the terms of this Agreement and the terms of such Exhibits, the terms of this Agreement shall prevail. 

 

	 	(I)	The terms, conditions and provisions hereof shall inure to the benefit of and be binding upon the parties hereto and their respective successors and authorized assigns.

  

	 	(J)	This Agreement may be executed in any number of counterparts, each of which shall be considered an original for all purposes. 

 

	 	(K)	The provisions hereof constitute the entire Agreement between the parties and supersede all prior representations and agreements of any kind relating to this Agreement.

  

	 	(L)	Since time is of the essence in FARMEE meeting the obligations set forth in this Agreement, FARMOR agrees that it will provide to FARMEE any title and Lease information
in its possession pertaining to or covering Farmout Lands under this Agreement. FARMOR also agrees to provide FARMEE with its Farmout Well data, logs, maps or any other pertinent information from its files that would benefit FARMEE in its assessment
and evaluation of the wells drilled to date by FARMOR on lands contained within this Agreement. FARMEE agrees to keep any and all information and data in whatever form, delivered or disclosed by Farmor as “Confidential Information”. FARMEE
will use the Confidential Information solely for the purposes of carrying out its obligations under the Leases and this Agreement and for no other purpose. FARMEE will keep the Confidential Information confidential and not disclose to any person or
entity other than FARMEE’ s officers, directors, employees, attorneys, accountants, independent reservoir engineers or financial sources who have a bona fide need to have access to such Confidential Information in order for FARMER to carry out
the purposes set forth herein or to carry on its business. The term of this Confidentiality provision shall extend for a period of one (1) year following the termination of this Agreement. 

 

 Exhibit C - 12 

	 	(M)	It is also agreed to by the parties that this Agreement shall not be recorded in the applicable county records unless required by law and that only a short form or
Memorandum of such Agreement shall be placed of record. 

  

	 	(N)	Right to Designate Contract Operator. GeoMet, Inc. may subcontract with GeoMet Operating Company, Inc., a subsidiary of GeoMet, Inc. to perform all operations to be
conducted hereunder by GeoMet, Inc. on the Farmout Lands. 

  

	 	(0)	This Agreement shall be construed as a whole and in accordance with the fair meaning of its language. Each party has cooperated and participated in the drafting and
preparation of this Agreement, and therefore, in any construction to be made of this Agreement or any of its terms, both parties shall be construed to be equally responsible for the drafting and preparation of the same. 

 

	 	(P)	Any time period to be computed pursuant to this Agreement shall be computed by excluding the first day arid including the last. Unless the language at issue under this
Agreement indicates otherwise, if the last day falls on a Saturday, Sunday, or holiday, the last day shall be extended until the next calendar day. 

  

	 	(Q)	This Agreement does not confer any benefit on any third party and no third party shall be entitled to rely on or receive any benefit from or enforce any provision of
this Agreement. 

  

	 	(R)	For a ten (10) year period from the effective date of this Agreement (10 Year Period), subject to the Leases permitting such right, once FARMEE earns the Operating
Rights to the area within a Drilling or Well Unit, as the term is defined and used in the Agreement and Exhibit D to the Agreement, and the Leases, FARMEE shall have the right to drill additional wells on the acreage included in such Drilling or
Well Unit, and production from any well drilled by FARMEE or a successor or assign of FARMEE on a Drilling or Well Unit will serve to hold the acreage under such Drilling or Well Unit. Paragraph 8 of the Agreement, “Abandonment of Wells”,
does not apply to any well on a Drilling or Well Unit on which a producing well is also located, provided the foregoing shall not diminish FARMEE’s obligation for the proper plugging and abandonment of its wells in accordance with the Leases
and applicable law. 

 No earlier than 12 months before the expiration of the 10 Year Period, FARMEE may submit to
FARMOR a proposed development plan for the remaining undrilled additional well locations, if any, within Drilling or Well Units for which FARMEE has earned Assignments of Operating Rights pursuant to this Agreement. Following receipt and review of
such plan, as and if mutually agreed by FARMOR and FARMEE in their sole discretion that such plan is mutually desirable with respect to the Leases and can be accomplished in a timely manner, FARMOR and FARMEE may agree to enter into a mutually
agreeable extension of the 10 Year Period on or before said expiration. 
  

 Exhibit C - 13 

	20.	EXECUTION 

 The terms,
covenants and conditions hereof shall run in favor of and be binding upon the parties hereto, their successors and assigns, and shall run with said Farmout Lands subject to this Agreement. 

This Farmout Agreement shall be effective as of the date first above written. 

 

									
	WITNESS:	  		  	FARMOR:
		  		  		  	CNX Gas Company LLC
					
	By:	  	  
	  		  	By:	  	  

		  		  		  		  	     William D. Gillenwater
		  		  		  		  	     Vice President
			
	WITNESS:	  		  	FARMEE:
		  		  		  	GeoMet, Inc.
					
	By:	  	  
	  		  	By:	  	  

		  		  		  		  	     J. Darby Seré
		  		  		  		  	     President

  

 Exhibit C - 14 

 EXHIBIT D 

to that certain 

Settlement, Release and Confidentiality Agreement 

by and between CONSUL Energy Inc. et a!., and 

GeoMet, Inc. et al. 

dated April 16, 2010 

AREA OF MUTUAL INTEREST AGREEMENT 

This Area of Mutual Interest Agreement (the “Agreement”) is entered into on this     
day of April 2010, (“Effective Date” by and between CNX Gas Corporation (“CNX Gas”) Cardinal States Gathering Company and CNX Gas Company LLC (collectively, “CNX Parties”);
CONSOL ENERGY INC., ISLAND CREEK COAL COMPANY, and CONSOLIDATION COAL COMPANY (collectively, “CONSOL Parties”), and GeoMet, Inc., GeoMet Gathering Company, LLC, GeoMet Operating Company, Inc., (“GeoMet
Operating” (collectively, “GeoMet Parties”) Each of the aforementioned may be collectively referred to as the “Parties” and individually as a “Party”. 

W I T N E S S E T H: 

WHEREAS, GeoMet Operating wishes to obtain ownership and control of all CBM Interests (as defined below) in each of the coalbed methane
units identified as “GeoMet Units” below and on the map attached hereto as Exhibit I; 
 WHEREAS,
CNX Gas wishes to obtain ownership and control of all CBM Interests in each of the coalbed methane units identified as “CNX Units” below and on the map attached hereto as Exhibit I; 

WHEREAS, the CNX Parties and GeoMet Parties have agreed that if any of the GeoMet Parties acquires any CBM Interests in the CNX Units
then it shall notify CNX Gas and CNX Gas shall have an opportunity to purchase such CBM Interests subject to the terms and conditions set forth herein; 

WHEREAS, the CNX Parties and GeoMet Parties have agreed that if any of the CNX Parties acquires any CBM Interests in the GeoMet Units
then it shall notify GeoMet Operating and GeoMet Operating shall have an opportunity to purchase such CBM Interests subject however to the terms and conditions set forth herein; 

WHEREAS, the CONSOL Parties and GeoMet Parties have agreed that if any CONSUL Party acquires any CBM Interests in the GeoMet Units and
CNX Gas does not acquire the CBM Interest under the Master Separation Agreement (the “Master Agreement”) between the CONSUL Parties and CNX Gas, such CONSOL Party shall notify GeoMet Operating and GeoMet Operating shall have an opportunity
to purchase such CBM Interests subject to the terms and conditions set forth herein; 
  

 Exhibit D - 1 

 NOW THEREFORE, for and in consideration of the sum of TEN DOLLARS ($10.00) and other good
and valuable consideration including the mutual covenants and agreements contained herein, the Parties agree as follows: 
  

	1.	A CBM Interest is defined as any interest in a lease, sub1ease a working interest under an operating agreement that becomes vested due to the drilling of a CBM well two
years from the Effective Date of this Agreement in a GeoMet Unit or a CNX Unit, fee mineral interest, royalty interest, or overriding royalty interest, to the extent and only to the extent that it covers coalbed methane
(“CBM”) underlying or within the GeoMet Units and the CNX Units; provided, however, specifically excluded from the definition of CBM Interest and excluded from this Agreement are (i) any interests of any CNX Party with
respect to the acreage or lands subject to the Farmout Agreement from CNX Gas Company, LLC to GeoMet, Inc. entered into on even date herewith; (ii) any interests of any GeoMet Party with respect to the acreage or lands subject to the Partial
Assignment of Farmout Agreement from GeoMet, Inc. to CNX Gas Company LLC entered into on even date herewith; (iii) any coal lease without an express demise of coalbed methane in the lease and (iv) any fee interest in coal without an
express grant of coalbed methane in the conveyance document. 

 2. (a) The GeoMet Units are identified as: 

A34, 35, 36, 37, 40, 41, 42, 43 

B34, 35, 36, 39, 43, 44, 45, 46, 49, 50 

C34, 35, 36, 37, 38, 43, 44, 45, 46, 47, 48 

D33, 34, 35, 36, 37, 38, 43, 44, 45, 46 

E33, 34, 35, 36, 37, 43, 44, 45, 46 

F33, 34, 35, 36, 37, 38, 44, 45 

WWW 40 
 XXX41,
42 
 YYY34, 35, 36, 37, 41, 42 

ZZZ35, 36, 37, 39, 40, 41 
 (b)
The CNX Units are identified as: 
 A31, 32, 33 

B32, 33, 40, 41, 42, 52 
  

 Exhibit D - 2 

 C33, 39, 49, 50 

D32,47 
 E32, 38

 F32, 46 

G37, 38, 45 

YYY32, 33 

ZZZ31, 32, 33,34 
  

	3.	If, not later than two years from the Effective Date of this Agreement, any of the GeoMet Parties acquires a CBM Interest in the CNX Units or any of the CNX Parties
acquires a CBM Interest in the GeoMet Units (such acquiring Party referred to as “Acquiring Party” and such acquired CBM Interest in either the CNX Units or the GeoMet Units referred to as an “Acquired
Interest”) then GeoMet Operating (if the Acquiring Party is one of the CNX Parties) or CNX Gas (if the Acquiring Party is one of the GeoMet Parties) (GeoMet Operating or CNX Gas as the case may be referred to as
“Non-Acquiring Party” shall have the right but not the obligation to purchase from the Acquiring Party such Acquired Interest that is in the CNX Unit or GeoMet Unit respectively. 

Additionally, if not later than two years from the Effective Date of this Agreement, any of the CONSOL Parties or any of their wholly
owned subsidiaries (each a “Subsidiary”, collectively “Subsidiaries”) acquires any CBM Interests in the GeoMet Units and CNX Gas does not acquire such CBM Interest under the Master Agreement between the CONSOL Parties and CNX
Gas, such CONSOL Party shall, or shall cause such of its Subsidiaries to, notify GeoMet Operating and GeoMet Operating shall have an opportunity to purchase such CBM Interests subject to the terms and conditions set forth herein. Furthermore, such
CONSOL Party or Subsidiary shall be deemed to be the “Acquiring Party” with respect to the terms and conditions set forth below. 
  

	4.	In the event an Acquired Interest in either a CNX Unit or a GeoMet Unit is acquired in a cash transaction which is not part of a Package Deal as defined below, then the
Acquiring Party shall provide written notice of such acquisition along with the terms of such acquisition (an “Offer Notice” to the Non-Acquiring Party, within forty-five (45) business days after the final closing and
acquisition of such Acquired Interest; provided, however, if a CONSOL Party or a Subsidiary is providing the Offer Notice, the CONSOL party or such Subsidiary shall not be required provide the Offer Notice to GeoMet Operating until forty-five
(45) business days after CNX Gas has rejected or has been deemed to have rejected the CONSUL Party’s or the Subsidiary’s offer under the terms of the Master Agreement. Unless prohibited by confidentiality provisions in the agreement
through which the Acquired Interest was obtained by the Acquiring Party, the 

  

 Exhibit D - 3 

 Offer Notice shall include a copy of the agreement and related assignment by which the
Acquiring Party acquired the Acquired Interest, showing the actual purchase price, as well as copies of all invoices supporting any outside lease broker costs incurred in the course of such acquisition (collectively, the “Cash
Value” of the Acquired Interest); provided, however, in no event shall the Acquiring Party be obligated or required to provide a copy of any agreement involving or concerning non-relevant terms to the Acquired Interest. The
Non-Acquiring Party shall have the right (but not the obligation) to acquire the Acquired Interest upon the same terms and conditions on which the Acquiring Party acquired the Acquired Interest, subject to paying the Acquiring Party the Cash Value.
The Non-Acquiring Party shall have a period of sixty (60) days after receipt of the Offer Notice to notify the Acquiring Party in writing whether it elects to acquire the Acquired Interest. Failure to give timely notice of such election shall
be deemed an election not to acquire the Acquired Interest. If the Non-Acquiring Party timely elects to acquire the Acquired Interest, then the Acquiring Party shall assign the Acquired Interest to the Non- Acquiring Party within thirty
(30) days of such election, on substantially the same terms as provided in the agreements between the original third party seller and the Acquiring Party (with such changes as may be necessitated by the differences in parties) and
simultaneously with the receipt of payment of Cash Value by the Non-Acquiring Party. 
  

	5.	In the event an Acquired Interest in either the CNX Unit or GeoMet Unit is not acquired in a cash transaction or is acquired in a cash transaction but includes other
properties and interests including without limitation any acquisition of conventional oil and gas interests in acreage under either the CNX Units or the GeoMet Units in addition to the CBM Interests (“Package Deal”) then the
Acquiring Party shall provide written notice of such acquisition (a “Package Deal Offer Notice”) and include in its Package Deal Offer Notice to the Non- Acquiring Party a statement of the estimated cash value of the Acquired
Interest as reasonably estimated in good faith by the Acquiring Party which shall include reasonable estimates of any outside lease broker costs incurred in the course of such acquisition associated with the CBM Interests (“Package Deal
Cash Value”) and the Acquiring Party shall also summarize and convey any other applicable terms and conditions to the Acquired Interest; provided, however in no event shall the Acquiring Party be obligated or required to provide a copy
of any agreement involving or concerning the Package Deal. The Acquiring Party shall provide the Package Deal Offer Notice to the Non-Acquiring Party within sixty (60) business days after the final closing and acquisition of such Acquired
Interest; provided, however, if a CONSOL Party or a Subsidiary is providing the Package Deal Offer Notice, the CONSOL party or such Subsidiary shall not be required provide the Package Deal Offer Notice to GeoMet Operating until sixty
(60) business days after CNX Gas has rejected or has been deemed to have rejected the CONSOL Party’s or such Subsidiary’s offer under the terms of the Master Agreement. The Non-Acquiring Party shall have a period of sixty
(60) days after receipt of the Package Deal Offer Notice to notify the Acquiring Party in writing whether it elects to acquire the Acquired Interest. Failure to give timely notice of such election shall be deemed an election not to acquire the
Acquired Interest. If the Non- Acquiring Party timely elects to acquire the Acquired Interest, then the Acquiring Party shall assign the Acquired Interest to the Non-Acquiring Party within thirty (30) days of such election, on the terms and
conditions summarized and conveyed by the Acquiring Party and simultaneously with the receipt of payment of Package Deal Cash Value by the Non- Acquiring Party. 

 

 Exhibit D - 4 

	6.	Notwithstanding anything to the contrary herein, no Party hereto: (i) has an obligation to acquire, whether offered to such Party or not, by inclusion in a broader
deal or not, any CBM Interest whatsoever; or (ii) has an obligation to share any third party agreements that have restrictions of confidentiality with respect to any CBM Interests. 

 

	7.	The Cash Value or Package Deal Cash Value proposed by the Acquiring Party in its Offer Notice or Package Deal Offer Notice respectively shall be conclusively deemed
correct unless the Non-Acquiring Party gives notice to the Acquiring Party within thirty (30) days of its receipt of such Offer Notice or Package Deal Offer Notice stating that it does not agree with such Cash Value or Package Deal Cash Value
as applicable, stating what it believes to be the correct Cash Value or Package Deal Cash Value as applicable, and providing any supporting information that it believes is helpful. In such event, the Parties shall have fifteen (15) days in
which to attempt to negotiate an agreement on the applicable Cash Value of Package Deal Cash Value. If no agreement has been reached by the end of such fifteen (15) day period, any Party may refer the matter to an independent expert for
determination of the Cash Value or Package Deal Cash Value, provided that any Non-Acquiring Party may elect to revoke its notice of intention to purchase, by written notice to the other Party at any time prior to the time that the independent expert
is retained pursuant to such provision. The Cash Value or Package Deal Cash Value to be submitted to the independent expert by the Acquiring Party shall be the Cash Value or Package Deal Cash Value as applicable provided by such Acquiring Party in
the respective Offer Notice or Package Deal Offer Notice, and the Cash Value or Package Deal Cash Value to be submitted to the independent expert by each Non-Acquiring Party shall be the Cash Value or Package Deal Cash Value provided by such
Non-Acquiring Party in the notice provided to the Acquiring Party pursuant to this section. 

  

	8.	If a Non-Acquiring Party elects not to acquire or fails to make a timely election to acquire the Acquired Interest, such Non-Acquiring Party shall have no further
rights whatsoever with regard to the Acquired Interest. 

  

	9.	This Agreement shall not apply to acquisitions of interests in or the acquisition of any entity or entities directly or indirectly owning a CBM Interest in the GeoMet
Units or the CNX Units. 

  

	10.	The Agreement shall terminate two years from the Effective Date. 

  

	11.	Any notice, request, statement or correspondence provided for in this Agreement, shall be given in writing, delivered in person or by United States mail, to the Parties
at the addresses shown below or at such other addresses as may be hereafter furnished by one Party to the other Party in writing. 

  

 Exhibit D - 5 

 CONSOL Energy, Inc. 

CNX Gas Company LLC. 

2481 John Nash Blvd. 

Bluefield, WV 24701 

Attn: Attn: Land Manager 

Telephone: (304) 323-6511 

Fax: (304) 323-6555 

GeoMet, Inc. 

909 Fannin, Suite 1850 

Houston, Texas 77010 

Attn: President 

Telephone: (713) 659-3855 

Fax: (713) 659-3856 
  

	12.	The Parties agree to take all further action and to execute, have acknowledged and deliver all further documents that are necessary or useful to carry out the purposes
of this Agreement. 

  

	13.	This Agreement may be executed in counterparts. Signatures on separate originals shall constitute and be of the same effect as signatures on the same original.
Electronic and faxed signatures shall constitute original signatures. 

  

	14.	This Agreement may not be assigned by any Party hereto without the consent of the other Parties hereto. 

 

	15.	This Agreement shall be construed as a whole and in accordance with the fair meaning of its language. Each Party has cooperated and participated in the drafting and
preparation of this Agreement, and therefore, in any construction to be made of this Agreement or any of its terms, both Parties shall be construed to be equally responsible for the drafting and preparation of the same. 

 

	16.	The waiver by one Party of the performance of any covenants, conditions, or promises shall not invalidate this Agreement, nor shall it be considered a waiver by it or
any other Party of any other covenant, condition, or promise. The waiver by any Parties of the time for performing any act shall not constitute a waiver of the time for performing any other act or an identical act required to be performed at a later
time. 

  

	17.	Any time period to be computed pursuant to this Agreement shall be computed by excluding the first day and including the last. If the last day falls on a Saturday,
Sunday, or holiday, the last day shall be extended until the next calendar day. 

  

	18.	This Agreement does not confer any benefit on any third party and no third party shall be entitled to rely on or receive any benefit from or enforce any provision of
this Agreement. 

  

 Exhibit D - 6 

	19.	This Agreement shall not be effective until executed and delivered by all Parties hereto. 

 

	20.	The terms and conditions of this Agreement shall be treated as confidential information by the Parties hereto and shall not be disclosed to any person or entity not a
Party hereto without the prior written consent of the other Parties, which consent shall not be unreasonably withheld. Notwithstanding anything to the contrary in the preceding sentence, the Agreement may be disclosed without prior written consent
as provided by relevant state or federal laws or may be provided to each Party’s legal, accounting or other representatives or other persons who have been informed as to and agreed to comply with the duty of confidentiality hereunder. This
Agreement shall not be recorded by the Parties hereto. 

  

	21.	THE PARTIES WAIVE THE RIGHT TO TRIAL BY JURY IN ANY ACTION BROUGHT UNDER THIS AGREEMENT. Any claim or controversy arising out of or relating to this Agreement,
or the breach thereof, shall be settled by binding arbitration in accordance with the rules of the American Arbitration Association, or other similar rules, and the judgment upon the award rendered by the arbitrators may be entered in any court
having jurisdiction thereof. Arbitration proceedings hereunder shall be conducted at such place as the Parties to such arbitration shall mutually agree upon. 

 

	22.	NOTWITHSTANDING ANYTHING IN THIS AGREEMENT TO THE CONTRARY, NO PARTY HERETO (OR ITS SHAREHOLDERS OR MEMBERS OR THEIR RESPECTIVE SUBSIDIARIES OR AFFILIATES) SHALL BE
LIABLE FOR PUNITIVE, INDIRECT, INCIDENTAL, EXEMPLARY OR CONSEQUENTIAL LOSSES OR DAMAGES WHATSOEVER FOR ANY MATTER RELATING TO OR ARISING OUT OF THIS AGREEMENT, INCLUDING LOSS OF PROFITS, WHETHER BASED UPON BREACH OF CONTRACT, BREACH OF WARRANTY,
TORT LIABILITY (INCLUDING NEGLIGENCE AND STRICT LIABILITY), STRICT LIABILITY, OR OTHER LEGAL THEORY, EXCEPT TO THE EXTENT OF THE EXPRESS REMEDIES PROVIDED FOR HEREIN. NOTHING CONTAINED IN THIS AGREEMENT SHALL BE CONSTRUED TO RELIEVE ANY PARTY OF ITS
OBLIGATION TO MITIGATE DAMAGES FOR ANY OTHER PARTY’S BREACH. 

  

	23.	THE SOLE REMEDY FOR ANY LOSSES AND DAMAGES, NOT EXPRESSLY LIMITED OR EXCLUDED IN THIS AGREEMENT, FOR ANY MATTER RELATING TO OR ARISING OUT OF A BREACH OF THIS AGREEMENT
SHALL BE SPECIFIC PERFORMANCE UNDER THIS AGREEMENT BY THE BREACHING PARTY. 

 IN WITNESS WHEREOF, the Parties have
signed this document as of the              day of April, 2010. 
  

 Exhibit D - 7 

									
	CNX GAS COMPANY LLC	 		  	CARDINAL STATES GATHERING COMPANY
					
	By:	 	  
	 		  	By:	  	  

	Name:	 	  
	 		  	Name:	  	  

	Title:	 	  
	 		  	Title:	  	  

			
	CNX GAS COMPANY LLC	 		  	CONSOL ENERGY, INC.
					
	By:	 	  
	 		  	By:	  	  

	Name:	 	  
	 		  	Name:	  	  

	Title:	 	  
	 		  	Title:	  	  

			
	CONSOLIDATION COAL COMPANY	 		  	ISLAND CREEK COAL COMPAN
					
	By:	 	  
	 		  	By:	  	  

	Name:	 	  
	 		  	Name:	  	  

	Title:	 	  
	 		  	Title:	  	  

			
	GEOMET GATHERING COMPANY, LLC	 		  	GEOMET, INC.
					
	By:	 	  
	 		  	By:	  	  

	Name:	 	  
	 		  	Name:	  	  

	Title:	 	  
	 		  	Title:	  	  

				
	GEOMET OPERATING COMPANY, INC.	 		  		  	
					
	By:	 	  
	 		  		  	
	Name:	 	  
	 		  		  	
	Title:	 	  
	 		  		  	

  

 Exhibit D - 8 

 EXHIBIT E-1 

to that certain 

Settlement, Release and Confidentiality Agreement 

by and between CONSUL Energy Inc. et a!., and 

GeoMet, Inc. et al. 

dated April 16, 2010. 

NON-EXCLUSIVE RIGHT-OF-WAY 

(Roads, Pipelines and Power Lines) 
  

			
	COMMONWEALTH OF VIRGINIA	  	§
		  	§
	COUNTY OF BUCHANAN	  	§

 THIS NON-EXCLUSIVE RIGHT-OF-WAY
AGREEMENT (“Agreement”) is made and entered into, effective as of the              day of April     , 2010, (the
“Effective Date”) by and between CNX Gas Company LLC, a Virginia limited liability company, with offices at 1000 CONSUL Energy Drive, Canonsburg, PA 15317, (the “Grantor”), and GeoMet Operating
Company, Inc. an Alabama corporation, with offices at 5336 Stadium Trace Parkway, Suite 206, Birmingham, AL 35244, (the “Grantee”) (each a “Party”, collectively the “Parties”).

 For and in consideration of the sum of TEN DOLLARS ($10.00), and other good and valuable consideration in hand paid by
Grantee, the receipt and sufficiency of which are hereby acknowledged, subject to the reservations, covenants, agreement and terms and conditions set forth herein the parties agree as follows: 

1. CNX Gas Company LLC owns certain land that it acquired from Heartwood Forestland Fund and such property is shown shaded on Attachment
I (the “Land”), and GeoMet Operating Company, Inc. desires an easement across the Land. 
 2. Grantor
hereby grants, bargains and conveys a limited and non-exclusive easement to Grantee, its affiliates, successors and assigns on and across the Land in the location specifically shown on Attachment II (the “Easement”).The grant of this
Easement is for the limited and non-exclusive purpose of (i) building, excavating, constructing, maintaining, operating and using a roadway to accommodate and facilitate Grantee’s operations in the vicinity of the Easement; (ii) for
the purpose of laying, constructing, maintaining, operating and using pipelines and appurtenances thereto on the Easement for the transportation of oil, gas and other minerals, liquid or gaseous, their derivatives or products, water and any other
substance that can be transported through said pipelines, or a mixture of any of the above (collectively, “Permitted Fluids”); and (iii) for the further purpose of erecting, maintaining, operating and using telegraph, telephone and
powerlines and appurtenances thereto as may be necessary to Grantee’s operations, all such building, excavating, constructing, maintaining, operating, using, laying, and erecting to be conducted on and limited to the Easement (such roadway,
pipelines and appurtenances, telegraph, telephone and powerlines and appurtenances hereinafter referred to as “Facilities”). 
  

 Exhibit E1 -1 

 3. The grant of this Easement is made together with the right to lay, construct, operate,
inspect, maintain, repair, replace with same or different size pipe, renew, substitute and remove all Facilities useful or necessary in connection with the transportation, transmission and distribution of hydrocarbons, electric power and water or
other Permitted Fluids upon, over, under and across the Easement. 
 4. The grant of this Easement further includes the right of
ingress and egress in, on, over, across and through the Easement for any and all purposes necessary or convenient to the exercise by Grantee of the rights herein granted, including the right to remove from the Easement all bushes, trees, timber and
parts thereof or other natural growing obstructions, which, in the opinion of Grantee endangers or may interfere with the efficiency, safety, or proper maintenance of the Easement; provided however, except for use of Access Roads, as set forth
below, Grantee shall stay within the Easement as defined herein to exercise all rights of ingress and egress as set forth herein. 

5. This grant is made by Grantor without any representation and warranty whatsoever including Grantor has made no covenant to Grantee for
quiet enjoyment of the Easement or as to the condition thereof or as the condition of Grantor’s title. This grant of Easement is made expressly subject to all existing mineral agreements, easements, leases, servitudes and other existing
contracts, grants, conveyances, reservations, licenses or agreements of whatsoever nature affecting the Easement and the Land. Without limitation of the foregoing, Grantor does not represent the correctness of the plat attached hereto as Attachment
I or Attachment II, and nothing herein shall operate as an estoppel against Grantor in the event the Land and the Easement are not correctly shown thereon. Grantee has examined pertinent parts of the Easement, the Land and Access Roads, including
without limitation, the improvements thereon, accepts this Easement in its present condition and assumes all risks incident thereto, and to any and all activities of it and its Agents. As used herein, “Agent(s)” means any
Party’s contractors, agents, employees, invitees, subcontractors or other representatives. 
 6. Grantor expressly excepts
and reserves from the grant of the Easement the entire ownership of the Land, expressly including without limitation, the coal, oil and gas arid timber estates and all other estates and rights in the Land, including coal, oil and gas and timber in
the Land, all of which shall be dominant, and this Agreement is made subject to such excepted and reserved estates and rights and to all prior grants evidenced by instruments of record or which are evident by an inspection of the Land. The rights of
Grantee herein authorized hereby are, and shall always be, subservient to the reserved and excepted estates. Accordingly, but not by way of limitation, the location of the Facilities or any portion thereof shall not unreasonably interfere with the
development of the Land; it being expressly understood and agreed by and between the Parties hereto that the development of the Land may be by any technology, process, practice or means now known or hereafter invented or developed. It is further
expressly understood and agreed by Grantee that Grantor or any of its lessees in the development of the Land shall have no duty to provide subjacent and lateral support for Grantee’s Facilities. Without limitation of the foregoing, and without
payment of any kind except as expressly provided in this Agreement, if the Facilities or any portion thereof which the Grantee, by virtue of this Agreement, constructs or places on the Land should, in the sole judgment of Grantor, unreasonably
interfere with the development of the Land, including without limitation the production and removal of the coal, 
  

 Exhibit E1 - 2 

 oil, gas and coalbed methane and any products or by-products thereof by any method now known or hereafter
developed, the Grantee, at its sole risk and expense shall move the Facilities or any portion thereof to another location reasonably designated by the Grantor (which location shall be provided by the Grantor without additional charge and, subject to
such other development, as close as reasonably possible to the original location and in a location which undertakes to minimize in all other respects the costs of such relocation) or shall reconstruct the same in a manner that will not unreasonably
interfere with such development of the Land. Notwithstanding anything in this Easement to the contrary, nothing in this Agreement shall be construed as limiting or impairing in any manner the rights of the Grantor, its successors or assigns, to go
upon and freely use the Land, Easement and Access Roads including, particularly, but without limitation, the right to grant to others agreements of any kind including mineral agreements and pipeline rights of ways or for Grantor or others to
investigate, explore, drill for, mine, produce, store and transport all minerals whether from the Land or adjacent or in the vicinity thereof including without limitation coal, oil, gas and coalbed methane in, under or across the Land, all to the
fullest extent possible. Grantor and/or its authorized Agents shall have the right to enter upon the Easement at any reasonable time and without notice or compensation to Grantee for operations thereon including coal, oil, gas, coalbed methane or
other mineral exploration, surveying and development and related activities on or under the Easement or to inspect Grantee’s performance hereunder. 

7. Grantee and its Agents shall observe and comply with any and all Legal Requirements. “Legal Requirement(s)” as
used in this Agreement means any applicable federal, state, local, municipal, or other jurisdictional law, ordinance, principle of common law, code, regulation, rule, order, governmental authorization, statute or treaty federal, state, and local
laws, ordinances, rules, regulations, orders, and decrees including without limitation those regarding the environment, natural resources and cultural resources. 

8. Grantee and its Agents shall follow all applicable health and safety requirements in exercising its rights under this Agreement.
Grantor shall have the right, but not the obligation, to impose reasonable rules concerning Grantee’s and its Agent’s conduct or activity on the Access Roads, Easement or Land. Notwithstanding the foregoing right of Grantor, Grantee shall
be solely responsible for initiating, maintaining, implementing and supervising all health, safety and environmental precautions, rules and programs of Grantee and its Agents on the Easement. Grantee shall supervise and direct all Grantee’s and
its Agent’s activities, using its best skill and attention. Grantee has the sole obligation to provide all necessary protection and supervision to regulate, control and maintain the safety of Grantee or any of its Agents. Grantee shall be
responsible for the security of all property of Grantee or its Agents brought onto, located at, in or upon the Easement. 
 9.
Grantee shall bury its pipelines a minimum of three feet at the time of construction and shall properly backfill and grade the Easement area so that the construction or maintenance of each pipeline will cause no appreciable adverse change in the
normal grade of the Easement area; provided, however, Grantor may impose more stringent or deeper burial requirements if deemed necessary by Grantor using a commercially reasonable basis. 

 

 Exhibit E1 - 3 

 10. Grantee shall have responsibility of notifying Grantor of the location of the Facilities
and shall advise Grantor of the location of the Facilities within sixty (60) days after construction is completed by providing Grantor with five (5) copies of as-built drawings showing the actual location of Grantee’s Facilities
including any pipelines on the Easement with coordinates of any pipeline crossings. Grantee shall mark the Facilities in accordance with applicable Legal Requirements and Grantee shall ensure that the Facilities remains clearly marked and identified
at all times consistent with any Legal Requirements including without limitation applicable coal mining regulations and/or statutes. 

11. Grantee shall clear debris which is caused by its construction or installation of the Facilities provided for herein in a workmanlike
manner and shall maintain the Easement free from unsightly and hazardous conditions arising from its operations. 
 12. Grantee
is given a non-exclusive right to use the roads and bridges, if any, on the Land (such roads and bridges referred to collectively as “Access Roads”) Grantee at its sole cost and expense shall promptly restore, rebuild or
repair all damage or deterioration caused by Grantee’s use of the Access Roads. Grantee understands and agrees that certain areas or portions of the Land, existing Access Roads and, certain areas adjacent thereto are or may become subject to
various reclamation permits, and Grantee agrees not to disturb such once such permit is active. Grantor shall have no duty to maintain any Access Roads in existence or in useable condition. In the event general road maintenance is performed by
Grantor or others authorized to do so, each user of such Access Roads, including Grantee, shall contribute to the costs thereof in proportion to each users including Grantor’s utilization of such Access Roads, as reasonably determined by
Grantor. Grantee understands and agrees that the Access Roads are or may be used in connection with various operations on the Land, and other tracts owned or controlled by Grantor or its lessors or lessees, and that the Grantee shall coordinate its
use of any such Access Road with Grantor or its lessors or lessees and that, from time to time, Grantor or its lessors or lessees or others authorized, in their reasonably exercised discretion, may direct Grantee temporarily to discontinue use of
any Access Road due to weather conditions, order of governmental regulatory authority or because use of the Access Road is interfering or may interfere with other dominant activity on said tracts, and Grantee agrees to comply with such directions in
such regard. 
 13. Grantee shall indemnify, defend, and save harmless Grantor and its parents, subsidiaries and related
companies, and Grantor’s and any of its parents’, subsidiaries’ and related companies’ lessees, co-lessees, directors, joint venturers, officers, members, partners, invitees and Agents, (each including Grantor an
“Indemnified Party” collectively, “Indemnified Parties” from and against the following: 
  

	 	a.	Any claims, losses, liabilities, damages, demands, obligations, fines, or civil penalties (“Claims”) regardless of when made or arising, in any
way arising out of, connected with, or related to noncompliance by Grantee or any of its parents, subsidiaries and related companies, or Grantee’s or any of its parents’, subsidiaries’ and related companies’ lessees, co-lessees,
directors, joint venturers, officers, members, partners, invitees and Agents (each including Grantee an “Indemnifying Party” collectively, “Indemnifying Parties” with any Legal Requirements;

  

 Exhibit E1 - 4 

	 	b.	Any and all Claims, regardless of when made or arising, by and on behalf of any person, firm, corporation, or governmental agency, arising from or growing out of or in
connection with operations or other activities of any Indemnifying Party on or in or with respect to the Easement, Land, or Access Roads specifically including without limitation any and all claims for personal injury, including death, and property
damage and for salaries and wages and employee or former employee. medical, retirement and all other benefits, and any claim of any violation of any Legal Requirement arising from any Indemnifying Party’s actions or operations hereunder,
together with all costs, fees, and expenses (including but not limited to court costs and reasonable attorney’s fees) connected with any of the above; and, 

 

	 	c.	Any and all Claims with respect to the environment or natural resources resulting from or connected with operations, acts and omissions of any Indemnifying Party on or
in the vicinity of or with respect to the Access Roads, the Easement or the Land. 

 In case any action or proceeding is brought
against an Indemnified Party by reason of any such Claim described in a., b. or c. of this Section, Grantee will pay the reasonable fees and expenses of counsel selected by Grantee and approved by Grantor to resist and defend such action or
proceeding, and Grantee will satisfy any order or judgment against such Indemnified Party resulting therefrom. Grantee’ indemnity obligations under this Agreement shall not apply to or be enforceable by an Indemnified Party with respect to
damages arising out of bodily injury to persons or damage to property caused by or resulting from the sole negligence of such Indemnified Party. 

14. Grantee agrees that during the Term (as defined below) of this Agreement no use, generation, release, manufacture, production,
processing, treatment, storage, sale or disposal of any Hazardous Substance, as defined herein, on or from the Easement shall occur. Grantee also agrees that, in the operation of its business from and use of the Easement, it shall comply with all
Legal Requirements including without limitation those for the protection of the environment, natural resources or safety or health of persons. Grantee shall be liable to the Indemnified Parties for any costs, damages, fines, penalties or other
obligations arising from any release of a Hazardous Substance by any Indemnifying Party whether or not Grantee introduced the Hazardous Substance. “Hazardous Substances” as used in this Agreement means any and all chemical
substances or pollutant known to be hazardous wastes, hazardous substances, hazardous constituents, toxic substances or related materials, whether solid, liquid or gaseous, including but not limited to asbestos, radioactive materials, oil, gasoline,
diesel. fuel and other hydrocarbons, and any other substances as defined as “hazardous wastes”, “hazardous substances”, “toxic substances”, “pollutants”, “contaminants”, or other similar
designations, or any other material, the removal, storage or presence of which is regulated or required and/or the maintenance of which is penalized by the Resources Conservation Recovery Act, 42, U.S.C. §6901, et seq., the Comprehensive
Environmental Response, Compensation and Liability Act, 42 U.S.C. §9601, et seq., the Toxic Substances Control Act, 15 U.S.C. §2601, et seq., the Clean Water Act, 33 U.S.C. §125 1, et seq., the Safe Drinking Water Act, 42 U.S.C.
§300(f)-300(j) — 10, the Clean Air Act, 42 U.S.C. §7401, et seq., or any other, local, state or federal agency, authority, or governmental unit. Grantee shall be solely responsible for treatment of any water 

 

 Exhibit E1 - 5 

 discharge caused by or resulting from conduct of any Indemnifying Party’s performance or failure to
perform under this Agreement, to the full extent required by any Legal Requirement. The obligations of Grantee under this Section are in addition to, not in lieu of, other Sections of this Agreement regarding indemnification. Grantee shall not
permit animals, alcohol, drugs, firearms, hunting or any illegal or unlawful activity of any kind at the Easement. Grantee shall not dump or dispose of any waste or refuse on any portion of the Property. Grantee shall not permit any activity to be
conducted at the Property except as otherwise specifically permitted in this Agreement. 
 15. Without limiting the generality
of Grantees’ obligation to conduct its operations and activities hereunder in conformity with any Legal Requirements, Grantee agrees that it shall provide workers’ compensation coverage for its employees in accordance with applicable Legal
Requirements. Within thirty (30) days of Grantor’s written request, Grantee shall request the applicable Workers’ Compensation Division to certify to Grantor that Grantee and its contractors, if any, performing work or other
activities on the Land are in good standing with respect to their respective Workers’ Compensation accounts. 
 16. Without
limiting Grantees undertaking to protect, indemnify, hold harmless, and defend Grantor and others, as provided in this Agreement, and without limiting the generality of Grantees’ obligation to conduct its operations and activities on the
Easement or Access Roads in conformity with any Legal Requirements, Grantee agrees at its own cost to procure from insurance carriers acceptable to Grantor and keep in force the insurance and bonds listed below: 

 

	 	a.	Grantee shall carry commercial general liability insurance which shall include, by endorsement or otherwise, (i) blanket contractual liability, (ii) broad
form property damage, (iii) explosive and collapse hazards, (iv) independent contractor’s protective liability and (v) personal injury, with limits of not less than $1,000,000.00 for each occurrence and in the aggregate as
applicable for bodily injury and property damage to which this insurance applies. 

  

	 	b.	Grantee shall carry pollution legal liability coverage limited to (i) On-site cleanup of new conditions — each incident, (ii) Third party claims for
off-site bodily injury and property damage, (iii) Third-party claims for off-site clean-up resulting from new conditions, (iv) Third party claims for off-site bodily injury and property damage, and (v) Pollution conditions resulting
from transported cargo, with limits of not less than $1,000,000. 

  

	 	c.	Grantee shall carry Umbrella/Excess Liability Insurance with limits not less than $5,000,000 each occurrence/aggregate where applicable to be excess of coverage and
limits required in this Agreement. 

  

	 	d.	Grantee shall carry business auto liability insurance on all Agreement motor vehicles owned, hired, or non-owned, which may be used or connected with any of the
Grantees operations or other activities hereunder, with limits of not less than $1,000,000.00 for all liability arising out of injury to or death of one or more persons and arising out of damage to or destruction of property, including loss of use
thereof, in any one occurrence. 

  

 Exhibit E1 - 6 

 The policy or policies providing the insurance required under this Agreement shall be occurrence coverage
(all except the pollution legal liability). In addition, such insurance shall specifically name each Indemnified Party as additional insured parties and shall be endorsed to be primary insurance as respects any claims arising out of the performance
of this Agreement, and shall be endorsed to provide that any insurance maintained by an Indemnified Party shall be excess of the Grantees’ insurance and shall not contribute to it. Such insurance shall be endorsed to specifically provide that
it applies separately to each insured against which claim is made or suit is brought, except with respect to the limits of the insured’s liability, and that all rights of subrogation against Indemnified Parties and their insurers are waived.
Grantee shall disclose any deductibles or self-insured retentions which must be declared to and be acceptable to Grantor. The policy shall be endorsed to state that coverage shall not be cancelled, non-renewed or materially changed, except after
thirty (30) days prior written notice has been given to Grantor. These insurance requirements are minimum requirements and shall not limit Grantees’ liability to Grantor and other Indemnified Parties in any manner. 

Grantor shall have the right to require complete copies of all required insurance policies at any time that are certified by Grantee as a true copy of
the current policy. Before commencing any operations or other activities under this Agreement, Grantee shall furnish Grantor certificates of insurance. All certificates are to be received and acceptable to Grantor before operations or other
activities commence. Grantee shall require its contractors, subcontractors and other agents performing operations or other activities on the tracts to obtain and maintain for the duration of such work insurance for the coverages, at the limits and
in accordance with this Agreement. 
 17. Any increase in real or personal property taxes occasioned by this Agreement or
Grantees’ activities on the Easement or the Access Roads shall be paid in total by Grantee or promptly reimbursed to Grantor upon proof of payment. 

18. Grantee shall not permit any lien or encumbrance, other than by reason of its Credit Agreement with Bank of America, N.A., as
administrative agent, as amended or replaced, through its fault or negligence or otherwise arising from its operations on the Easement or the Access Roads to accrue on the Land, the Access Roads, the Easement or any parts thereof, except a lien for
ad valorem property taxes not due or payable. Should any encumbrance or lien on the Land, the Access Roads or the Easement accrue due to Grantee’s act or omission, Grantee shall cause the same to be promptly discharged and removed. If Grantee
fails to discharge or remove any such lien or encumbrance, Grantor shall have the right, but not the obligation, to take such action as may be necessary to remove or satisfy the same; and Grantee shall be obligated to reimburse Grantor for any
expense, disbursements or attorney’s fees necessarily incurred in protecting the Land, Easement or Access Roads or its other property from such liens and encumbrances and shall pay the same promptly within thirty (30) days of demand
therefor, which demand is accompanied by backup invoices reflecting the payment of the amount being requested. Grantee, however, shall have the right to contest in the courts or otherwise the validity of any such lien. 

19. If any provision of this Agreement is adjudicated and found to be against public policy, void, or otherwise unenforceable, then such
provision shall be modified or deleted, in keeping with the express intent of the Parties hereto, as necessary to render all the remainder of this Agreement valid and enforceable. All such modifications or deletions shall be the minimum required to
effect the foregoing. 
  

 Exhibit E1 - 7 

 20. Subject to the default provisions hereof, the term (“Term”) of
the Agreement shall be from the Effective Date of this Agreement and continue for so long thereafter as Grantee shall use the said Easement; provided, however, this Agreement shall terminate upon abandonment by Grantee of the Easement which
abandonment shall be deemed to occur if a period of more than two (2) years elapses without use of said Easement. 
 21. If
Grantee violates any terms or conditions in this Agreement, Grantor may declare Grantee in default by written notice. If Grantee does not begin good faith efforts to cure such default within thirty days (30) days, Grantor shall have the
following remedies, which may be exercised individually or cumulatively: 
  

	 	a.	Grantor may immediately terminate this Agreement by providing written notice of such termination to Grantee; 

 

	 	b.	Grantor may seek legal action against Grantee in court to recover possession of the Easement without giving Grantee prior notice to quit the Easement; or

  

	 	c.	Grantor may seek legal action against Grantee for all damages, including reasonable attorney’s fees, resulting from Grantee’s violation of any terms or
conditions in this Agreement. 

 Grantee shall diligently pursue the cure of any default. In addition to the remedies contained in
this Agreement, Grantor may seek any other remedies allowed by law. All provisions herein contained concerning the remedy of Grantor in case of breach by Grantee of any condition, covenant or agreement herein contained, shall be deemed to be
cumulative and not exclusive, and shall not deprive Grantor of any of its other legal or equitable remedies which may now or hereafter be provided under any Legal Requirement. 

22. No delay or omission of Grantor to exercise any right, remedy or lien accruing upon any default or termination or otherwise available
to it, shall impair, prejudice or waive any such right, remedy or lien, but every such right, remedy and lien may be exercised by Grantor on account of any subsequent breach in the same manner and to the same extent as if such delay or omission had
not occurred. 
 23. If Grantee shall become insolvent, this Agreement shall terminate and Grantor may reenter and regain
possession of the Land. Grantee shall be deemed insolvent if a receiver is appointed to take possession of all or substantially all of Grantee’s property, Grantee makes a general assignment for the benefit of creditors, or Grantee files a
petition in bankruptcy, reorganization, or insolvency. 
 24. Any notice provided for or permitted herein to be given by either
Party to the other Party shall be conclusively deemed to have been given upon receipt thereof, whether by United States mail, return receipt required, or by hand delivery at the mailing address hereinabove set forth. 

 

 Exhibit E1 - 8 

 25. In the event of reversion to Grantor of the Easement herein granted whether by
termination or otherwise, Grantee shall remove all above ground Facilities and, if requested by Grantor using a commercially reasonable basis or required by any Legal Requirement, remove all below ground Facilities, and restore said Easement, except
as to timber and other forest products removed hereunder, and shall reclaim said Easement in accordance with any Legal Requirement. 

26. This Agreement conveys only the rights herein specifically set out. No right of ownership of any nature is vested in Grantee in and
to the Land, Access Roads or the Easement. This Agreement embodies the entire understanding of the Parties, and may be amended or modified only by subsequent written agreement of the Parties. 

27. This Agreement and the rights granted hereunder shall be covenants running with the land and binding upon the heirs, executors,
administrators, successors and assigns of the Parties hereto. The rights herein granted shall not be transferred, assigned or sublet, in whole or in part, without the prior written consent of Grantor which shall not be unreasonably withheld.

 28. Upon the termination of this Agreement, Grantee shall execute and deliver to Grantor in such form as will permit
recordation of the same, a written release of this Agreement and relinquishment of all the right, title and interest acquired under this Agreement in and to the Easement, including such property as Grantee may be permitted to leave on the Easement.

 29. Nothing herein contained or hereby implied including, without limitation, rights reserved by Grantor to use the Land,
Access Roads or Easement shall be construed as creating or constituting, by implication or otherwise, an obligation of or right in Grantor to control or otherwise correct Grantees’ acts and omissions or a lessening of Grantees’ duties to
indemnify Grantor and others and provide insurance herein required, or any relationship of partnership, joint venture, agency of employer and employee between Grantor on the one hand and Grantee on the other hand. Grantee shall in no way be
considered an agent, contractor or employee of Grantor. Grantee shall be solely responsible for and have control over the means, methods, techniques, sequences and procedures used by the Grantee or any of its Agents. Grantor disclaims any right to
control Grantee’s or any of its Agents’ manners of performance. 
 30. The waiver, in whole or in part, of any of the
terms or conditions hereof shall be limited to the act or acts consulting such breach, and shall never be construed as being a continuing or permanent waiver of any of such terms or conditions or as a wavier of any other terms and conditions hereof,
all of which shall be and remain in full effect notwithstanding any such waiver. 
 31. This Agreement shall be construed as a
whole and in accordance with the fair meaning of its language. Each Party has cooperated and participated in the drafting and preparation of this Agreement, and therefore, in any construction to be made of this Agreement or any of its terms, both
Parties shall be construed to be equally responsible for the drafting and preparation of the same. 
  

 Exhibit E1 - 9 

 32. Any time period to be computed pursuant to this Agreement shall be computed by excluding
the first day and including the last. Unless the language at issue under this Agreement indicates otherwise, if the last day falls on a Saturday, Sunday, or holiday, the last day shall be extended until the next calendar day. 

33. This Agreement does not confer any benefit on any third party and no third party shall be entitled to rely on or receive any benefit
from or enforce any provision of this Agreement. 
 34. THE PARTIES WAIVE THE RIGHT TO TRIAL BY JURY IN ANY ACTION BROUGHT
UNDER THIS AGREEMENT. Any claim or controversy arising out of or relating to this Agreement, or the breach thereof, shall be settled by binding arbitration in accordance with the rules of the American Arbitration Association, and the judgment
upon the award rendered by the arbitrators may be entered in any court having jurisdiction thereof. Arbitration proceedings hereunder shall be conducted at such place as the Parties to such arbitration shall mutually agree upon One Party shall pick
one arbitrator and the other Party shall pick one arbitrator. The two arbitrators shall pick a third arbitrator. 
 35.
NOTWITHSTANDING ANYTHING IN THIS AGREEMENT TO THE CONTRARY, NO PARTY HERETO (OR ITS SHAREHOLDERS OR MEMBERS OR THEIR RESPECTIVE SUBSIDIARIES OR AFFILIATES) SHALL BE LIABLE FOR PUNITIVE, INDIRECT, INCIDENTAL, EXEMPLARY OR CONSEQUENTIAL LOSSES OR
DAMAGES WHATSOEVER FOR ANY MATTER RELATING TO OR ARISING OUT OF THIS AGREEMENT, INCLUDING LOSS OF PROFITS, WHETHER BASED UPON BREACH OF CONTRACT, BREACH OF WARRANTY, TORT LIABILITY (INCLUDING NEGLIGENCE AND STRICT LIABILITY), STRICT LIABILITY, OR
OTHER LEGAL THEORY, NOTHING CONTAINED IN THIS AGREEMENT SHALL BE CONSTRUED TO RELIEVE ANY PARTY OF ITS OBLIGATION TO MITIGATE DAMAGES FOR ANY OTHER PARTY’S BREACH. 

36. THE TOTAL MONETARY AMOUNT FOR ANY LOSSES AND DAMAGES, NOT EXPRESSLY LIMITED OR EXCLUDED IN THIS AGREEMENT, FOR ANY MATTER
RELATING TO OR ARISING OUT OF A BREACH OF THIS AGREEMENT THAT ANY PARTY HERETO SHALL BE OBLIGATED TO PAY TO ANOTHER PARTY HERETO SHALL NOT EXCEED AN AMOUNT EQUAL TO THE ACTUAL, DIRECT LOSSES OR DAMAGES SUSTAINED BY SUCH PARTY FOR SUCH MATTER. 

 37. This grant may be executed in counterparts. Signatures on separate originals shall constitute and be of the same effect
as signatures on the same original. Electronic and faxed signatures shall constitute original signatures. 
 38. The following
Sections shall survive for a period of three years following the expiration or termination of this Agreement: 5, 7, 8, 13, 14, 16, 17, 18, 25, 28, 34, 35, and 36; provided, however, that Grantee’s liability for any environmental damages as set
forth in Section 14 and Grantee’s obligation under Section 13 to indemnify Grantor for such environmental damages shall survive the expiration or termination of this Agreement without limit. 

 

 Exhibit E1 - 10 

 39. The Parties covenant and agree to execute such other and further instruments and
documents as are necessary or convenient to effectuate and carry out the purpose of this Agreement, including a Memorandum of Agreement to be filed in the records of Buchanan County, Virginia. 

IN WITNESS WHEREOF, this Agreement is executed by the Parties hereto as of the dates of their respective acknowledgements but is
effective as of the first date mentioned hereinabove. 
  

					
	CNX GAS COMPANY LLC	 		  	GEOMET OPERATING COMPANY, INC.
			
	  
	 		  	  

	Name:	 		  	Name: J. Darby Seré
	Title:	 		  	Title: President

  

 Exhibit E1 - 11 

 EXHIBIT E -2 

to that certain 

Settlement, Release and Confidentiality Agreement 

by and between CONSOL Energy Inc. et al., and 

GeoMet, Inc. et al. 

dated April 16, 2010 

NON-EXCLUSIVE RIGHT-OF-WAY 

(Roads, Pipelines and Power Lines) 
  

			
	COMMONWEALTH OF VIRGINIA	  	§
		  	§
	COUNTY OF BUCHANAN	  	§

 THIS NON-EXCLUSIVE RIGHT-OF-WAY
AGREEMENT (“Agreement”) is made and entered into, effective as of the              day of April     , 2010, (the
“Effective Date”) by and between CNX Gas Company LLC, a Virginia limited liability company, with offices at 1000 CONSUL Energy Drive, Canonsburg, PA 15317, (the “Grantor”), and GeoMet Operating
Company, Inc. an Alabama corporation, with offices at 5336 Stadium Trace Parkway, Suite 206, Birmingham, AL 35244, (the “Grantee”) (each a “Party”, collectively the “Parties”).

 For and in consideration of the sum of TEN DOLLARS ($10.00), and other good and valuable consideration in hand paid by
Grantee, the receipt and sufficiency of which are hereby acknowledged, subject to the reservations, covenants, agreement and terms and conditions set forth herein the parties agree as follows: 

1. CNX Gas Company LLC owns certain land that it acquired from Heartwood Forestland Fund and such property is shown shaded on Attachment
I (the “Land”), and GeoMet Operating Company, Inc. desires an easement across the Land. 
 2. Grantor
hereby grants, bargains and conveys a limited and non-exclusive easement to Grantee, its affiliates, successors and assigns on and across the Land in the location specifically shown on Attachment II (the “Easement”).The grant of this
Easement is for the limited and non-exclusive purpose of (i) building, excavating, constructing, maintaining, operating and using a roadway to accommodate and facilitate Grantee’s operations in the vicinity of the Easement; (ii) for
the purpose of laying, constructing, maintaining, operating and using pipelines and appurtenances thereto on the Easement for the transportation of oil, gas and other minerals, liquid or gaseous, their derivatives or products, water and any other
substance that can be transported through said pipelines, or a mixture of any of the above (collectively, “Permitted Fluids”); and (iii) for the further purpose of erecting, maintaining, operating and using telegraph, telephone and
powerlines and appurtenances thereto as may be necessary to Grantee’s operations, all such building, excavating, constructing, maintaining, operating, using, laying, and erecting to be conducted on and limited to the Easement (such roadway,
pipelines and appurtenances, telegraph, telephone and powerlines and appurtenances hereinafter referred to as “Facilities”). 
  

 Exhibit E2 - 1 

 3. The grant of this Easement is made together with the right to lay, construct, operate,
inspect, maintain, repair, replace with same or different size pipe, renew, substitute and remove all Facilities useful or necessary in connection with the transportation, transmission and distribution of hydrocarbons, electric power and water or
other Permitted Fluids upon, over, under and across the Easement. 
 4. The grant of this Easement further includes the right of
ingress and egress in, on, over, across and through the Easement for any and all purposes necessary or convenient to the exercise by Grantee of the rights herein granted, including the right to remove from the Easement all bushes, trees, timber and
parts thereof or other natural growing obstructions, which, in the opinion of Grantee endangers or may interfere with the efficiency, safety, or proper maintenance of the Easement; provided however, except for use of Access Roads, as set forth
below, Grantee shall stay within the Easement as defined herein to exercise all rights of ingress and egress as set forth herein. 

5. This grant is made by Grantor without any representation and warranty whatsoever including Grantor has made no covenant to Grantee for
quiet enjoyment of the Easement or as to the condition thereof or as the condition of Grantor’s title. This grant of Easement is made expressly subject to all existing mineral agreements, easements, leases, servitudes and other existing
contracts, grants, conveyances, reservations, licenses or agreements of whatsoever nature affecting the Easement and the Land. Without limitation of the foregoing, Grantor does not represent the correctness of the plat attached hereto as Attachment
I or Attachment II, and nothing herein shall operate as an estoppel against Grantor in the event the Land and the Easement are not correctly shown thereon. Grantee has examined pertinent parts of the Easement, the Land and Access Roads, including
without limitation, the improvements thereon, accepts this Easement in its present condition and assumes all risks incident thereto, and to any and all activities of it and its Agents. As used herein, “Agent(s)” means any
Party’s contractors, agents, employees, invitees, subcontractors or other representatives. 
 6. Grantor expressly excepts
and reserves from the grant of the Easement the entire ownership of the Land, expressly including without limitation, the coal, oil and gas arid timber estates and all other estates and rights in the Land, including coal, oil and gas and timber in
the Land, all of which shall be dominant, and this Agreement is made subject to such excepted and reserved estates and rights and to all prior grants evidenced by instruments of record or which are evident by an inspection of the Land. The rights of
Grantee herein authorized hereby are, and shall always be, subservient to the reserved and excepted estates. Accordingly, but not by way of limitation, the location of the Facilities or any portion thereof shall not unreasonably interfere with the
development of the Land; it being expressly understood and agreed by and between the Parties hereto that the development of the Land may be by any technology, process, practice or means now known or hereafter invented or developed. It is further
expressly understood and agreed by Grantee that Grantor or any of its lessees in the development of the Land shall have no duty to provide subjacent and lateral support for Grantee’s Facilities. Without limitation of the foregoing, and without
payment of any kind except as expressly provided in this Agreement, if the Facilities or any portion thereof which the Grantee, by virtue of this Agreement, constructs or places on the Land should, in the sole judgment of Grantor, unreasonably
interfere with the development of the Land, including without limitation the production and removal of the coal, 
  

 Exhibit E2 - 2 

 oil, gas and coalbed methane and any products or by-products thereof by any method now known or hereafter
developed, the Grantee, at its sole risk and expense shall move the Facilities or any portion thereof to another location reasonably designated by the Grantor (which location shall be provided by the Grantor without additional charge and, subject to
such other development, as close as reasonably possible to the original location and in a location which undertakes to minimize in all other respects the costs of such relocation) or shall reconstruct the same in a manner that will not unreasonably
interfere with such development of the Land. Notwithstanding anything in this Easement to the contrary, nothing in this Agreement shall be construed as limiting or impairing in any manner the rights of the Grantor, its successors or assigns, to go
upon and freely use the Land, Easement and Access Roads including, particularly, but without limitation, the right to grant to others agreements of any kind including mineral agreements and pipeline rights of ways or for Grantor or others to
investigate, explore, drill for, mine, produce, store and transport all minerals whether from the Land or adjacent or in the vicinity thereof including without limitation coal, oil, gas and coalbed methane in, under or across the Land, all to the
fullest extent possible. Grantor and/or its authorized Agents shall have the right to enter upon the Easement at any reasonable time and without notice or compensation to Grantee for operations thereon including coal, oil, gas, coalbed methane or
other mineral exploration, surveying and development and related activities on or under the Easement or to inspect Grantee’s performance hereunder. 

7. Grantee and its Agents shall observe and comply with any and all Legal Requirements. “Legal Requirement(s)” as
used in this Agreement means any applicable federal, state, local, municipal, or other jurisdictional law, ordinance, principle of common law, code, regulation, rule, order, governmental authorization, statute or treaty federal, state, and local
laws, ordinances, rules, regulations, orders, and decrees including without limitation those regarding the environment, natural resources and cultural resources. 

8. Grantee and its Agents shall follow all applicable health and safety requirements in exercising its rights under this Agreement.
Grantor shall have the right, but not the obligation, to impose reasonable rules concerning Grantee’s and its Agent’s conduct or activity on the Access Roads, Easement or Land. Notwithstanding the foregoing right of Grantor, Grantee shall
be solely responsible for initiating, maintaining, implementing and supervising all health, safety and environmental precautions, rules and programs of Grantee and its Agents on the Easement. Grantee shall supervise and direct all Grantee’s and
its Agent’s activities, using its best skill and attention. Grantee has the sole obligation to provide all necessary protection and supervision to regulate, control and maintain the safety of Grantee or any of its Agents. Grantee shall be
responsible for the security of all property of Grantee or its Agents brought onto, located at, in or upon the Easement. 
 9.
Grantee shall bury its pipelines a minimum of three feet at the time of construction and shall properly backfill and grade the Easement area so that the construction or maintenance of each pipeline will cause no appreciable adverse change in the
normal grade of the Easement area; provided, however, Grantor may impose more stringent or deeper burial requirements if deemed necessary by Grantor using a commercially reasonable basis. 

 

 Exhibit E2 - 3 

 10. Grantee shall have responsibility of notifying Grantor of the location of the Facilities
and shall advise Grantor of the location of the Facilities within sixty (60) days after construction is completed by providing Grantor with five (5) copies of as-built drawings showing the actual location of Grantee’s Facilities
including any pipelines on the Easement with coordinates of any pipeline crossings. Grantee shall mark the Facilities in accordance with applicable Legal Requirements and Grantee shall ensure that the Facilities remains clearly marked and identified
at all times consistent with any Legal Requirements including without limitation applicable coal mining regulations and/or statutes. 

11. Grantee shall clear debris which is caused by its construction or installation of the Facilities provided for herein in a workmanlike
manner and shall maintain the Easement free from unsightly and hazardous conditions arising from its operations. 
 12. Grantee
is given a non-exclusive right to use the roads and bridges, if any, on the Land (such roads and bridges referred to collectively as “Access Roads”) Grantee at its sole cost and expense shall promptly restore, rebuild or
repair all damage or deterioration caused by Grantee’s use of the Access Roads. Grantee understands and agrees that certain areas or portions of the Land, existing Access Roads and, certain areas adjacent thereto are or may become subject to
various reclamation permits, and Grantee agrees not to disturb such once such permit is active. Grantor shall have no duty to maintain any Access Roads in existence or in useable condition. In the event general road maintenance is performed by
Grantor or others authorized to do so, each user of such Access Roads, including Grantee, shall contribute to the costs thereof in proportion to each users including Grantor’s utilization of such Access Roads, as reasonably determined by
Grantor. Grantee understands and agrees that the Access Roads are or may be used in connection with various operations on the Land, and other tracts owned or controlled by Grantor or its lessors or lessees, and that the Grantee shall coordinate its
use of any such Access Road with Grantor or its lessors or lessees and that, from time to time, Grantor or its lessors or lessees or others authorized, in their reasonably exercised discretion, may direct Grantee temporarily to discontinue use of
any Access Road due to weather conditions, order of governmental regulatory authority or because use of the Access Road is interfering or may interfere with other dominant activity on said tracts, and Grantee agrees to comply with such directions in
such regard. 
 13. Grantee shall indemnify, defend, and save harmless Grantor and its parents, subsidiaries and related
companies, and Grantor’s and any of its parents’, subsidiaries’ and related companies’ lessees, co-lessees, directors, joint venturers, officers, members, partners, invitees and Agents, (each including Grantor an
“Indemnified Party” collectively, “Indemnified Parties” from and against the following: 
  

	 	a.	Any claims, losses, liabilities, damages, demands, obligations, fines, or civil penalties (“Claims”) regardless of when made or arising, in any
way arising out of, connected with, or related to noncompliance by Grantee or any of its parents, subsidiaries and related companies, or Grantee’s or any of its parents’, subsidiaries’ and related companies’ lessees, co-lessees,
directors, joint venturers, officers, members, partners, invitees and Agents (each including Grantee an “Indemnifying Party” collectively, “Indemnifying Parties” with any Legal Requirements;

  

 Exhibit E2 - 4 

	 	b.	Any and all Claims, regardless of when made or arising, by and on behalf of any person, firm, corporation, or governmental agency, arising from or growing out of or in
connection with operations or other activities of any Indemnifying Party on or in or with respect to the Easement, Land, or Access Roads specifically including without limitation any and all claims for personal injury, including death, and property
damage and for salaries and wages and employee or former employee. medical, retirement and all other benefits, and any claim of any violation of any Legal Requirement arising from any Indemnifying Party’s actions or operations hereunder,
together with all costs, fees, and expenses (including but not limited to court costs and reasonable attorney’s fees) connected with any of the above; and, 

 

	 	c.	Any and all Claims with respect to the environment or natural resources resulting from or connected with operations, acts and omissions of any Indemnifying Party on or
in the vicinity of or with respect to the Access Roads, the Easement or the Land. 

 In case any action or proceeding is brought
against an Indemnified Party by reason of any such Claim described in a., b. or c. of this Section, Grantee will pay the reasonable fees and expenses of counsel selected by Grantee and approved by Grantor to resist and defend such action or
proceeding, and Grantee will satisfy any order or judgment against such Indemnified Party resulting therefrom. Grantee’ indemnity obligations under this Agreement shall not apply to or be enforceable by an Indemnified Party with respect to
damages arising out of bodily injury to persons or damage to property caused by or resulting from the sole negligence of such Indemnified Party. 

14. Grantee agrees that during the Term (as defined below) of this Agreement no use, generation, release, manufacture, production,
processing, treatment, storage, sale or disposal of any Hazardous Substance, as defined herein, on or from the Easement shall occur. Grantee also agrees that, in the operation of its business from and use of the Easement, it shall comply with all
Legal Requirements including without limitation those for the protection of the environment, natural resources or safety or health of persons. Grantee shall be liable to the Indemnified Parties for any costs, damages, fines, penalties or other
obligations arising from any release of a Hazardous Substance by any Indemnifying Party whether or not Grantee introduced the Hazardous Substance. “Hazardous Substances” as used in this Agreement means any and all chemical
substances or pollutant known to be hazardous wastes, hazardous substances, hazardous constituents, toxic substances or related materials, whether solid, liquid or gaseous, including but not limited to asbestos, radioactive materials, oil, gasoline,
diesel. fuel and other hydrocarbons, and any other substances as defined as “hazardous wastes”, “hazardous substances”, “toxic substances”, “pollutants”, “contaminants”, or other similar
designations, or any other material, the removal, storage or presence of which is regulated or required and/or the maintenance of which is penalized by the Resources Conservation Recovery Act, 42, U.S.C. §6901, et seq., the Comprehensive
Environmental Response, Compensation and Liability Act, 42 U.S.C. §9601, et seq., the Toxic Substances Control Act, 15 U.S.C. §2601, et seq., the Clean Water Act, 33 U.S.C. §125 1, et seq., the Safe Drinking Water Act, 42 U.S.C.
§300(f)-300(j) — 10, the Clean Air Act, 42 U.S.C. §7401, et seq., or any other, local, state or federal agency, authority, or governmental unit. Grantee shall be solely responsible for treatment of any water 

 

 Exhibit E2 - 5 

 discharge caused by or resulting from conduct of any Indemnifying Party’s performance or failure to
perform under this Agreement, to the full extent required by any Legal Requirement. The obligations of Grantee under this Section are in addition to, not in lieu of, other Sections of this Agreement regarding indemnification. Grantee shall not
permit animals, alcohol, drugs, firearms, hunting or any illegal or unlawful activity of any kind at the Easement. Grantee shall not dump or dispose of any waste or refuse on any portion of the Property. Grantee shall not permit any activity to be
conducted at the Property except as otherwise specifically permitted in this Agreement. 
 15. Without limiting the generality
of Grantees’ obligation to conduct its operations and activities hereunder in conformity with any Legal Requirements, Grantee agrees that it shall provide workers’ compensation coverage for its employees in accordance with applicable Legal
Requirements. Within thirty (30) days of Grantor’s written request, Grantee shall request the applicable Workers’ Compensation Division to certify to Grantor that Grantee and its contractors, if any, performing work or other
activities on the Land are in good standing with respect to their respective Workers’ Compensation accounts. 
 16. Without
limiting Grantees undertaking to protect, indemnify, hold harmless, and defend Grantor and others, as provided in this Agreement, and without limiting the generality of Grantees’ obligation to conduct its operations and activities on the
Easement or Access Roads in conformity with any Legal Requirements, Grantee agrees at its own cost to procure from insurance carriers acceptable to Grantor and keep in force the insurance and bonds listed below: 

 

	 	a.	Grantee shall carry commercial general liability insurance which shall include, by endorsement or otherwise, (i) blanket contractual liability, (ii) broad
form property damage, (iii) explosive and collapse hazards, (iv) independent contractor’s protective liability and (v) personal injury, with limits of not less than $1,000,000.00 for each occurrence and in the aggregate as
applicable for bodily injury and property damage to which this insurance applies. 

  

	 	b.	Grantee shall carry pollution legal liability coverage limited to (i) On-site cleanup of new conditions — each incident, (ii) Third party claims for
off-site bodily injury and property damage, (iii) Third-party claims for off-site clean-up resulting from new conditions, (iv) Third party claims for off-site bodily injury and property damage, and (v) Pollution conditions resulting
from transported cargo, with limits of not less than $1,000,000. 

  

	 	c.	Grantee shall carry Umbrella/Excess Liability Insurance with limits not less than $5,000,000 each occurrence/aggregate where applicable to be excess of coverage and
limits required in this Agreement. 

  

	 	d.	Grantee shall carry business auto liability insurance on all Agreement motor vehicles owned, hired, or non-owned, which may be used or connected with any of the
Grantees operations or other activities hereunder, with limits of not less than $1,000,000.00 for all liability arising out of injury to or death of one or more persons and arising out of damage to or destruction of property, including loss of use
thereof, in any one occurrence. 

  

 Exhibit E2 - 6 

 The policy or policies providing the insurance required under this Agreement shall be occurrence coverage
(all except the pollution legal liability). In addition, such insurance shall specifically name each Indemnified Party as additional insured parties and shall be endorsed to be primary insurance as respects any claims arising out of the performance
of this Agreement, and shall be endorsed to provide that any insurance maintained by an Indemnified Party shall be excess of the Grantees’ insurance and shall not contribute to it. Such insurance shall be endorsed to specifically provide that
it applies separately to each insured against which claim is made or suit is brought, except with respect to the limits of the insured’s liability, and that all rights of subrogation against Indemnified Parties and their insurers are waived.
Grantee shall disclose any deductibles or self-insured retentions which must be declared to and be acceptable to Grantor. The policy shall be endorsed to state that coverage shall not be cancelled, non-renewed or materially changed, except after
thirty (30) days prior written notice has been given to Grantor. These insurance requirements are minimum requirements and shall not limit Grantees’ liability to Grantor and other Indemnified Parties in any manner. 

Grantor shall have the right to require complete copies of all required insurance policies at any time that are certified by Grantee as a true copy of
the current policy. Before commencing any operations or other activities under this Agreement, Grantee shall furnish Grantor certificates of insurance. All certificates are to be received and acceptable to Grantor before operations or other
activities commence. Grantee shall require its contractors, subcontractors and other agents performing operations or other activities on the tracts to obtain and maintain for the duration of such work insurance for the coverages, at the limits and
in accordance with this Agreement. 
 17. Any increase in real or personal property taxes occasioned by this Agreement or
Grantees’ activities on the Easement or the Access Roads shall be paid in total by Grantee or promptly reimbursed to Grantor upon proof of payment. 

18. Grantee shall not permit any lien or encumbrance, other than by reason of its Credit Agreement with Bank of America, N.A., as
administrative agent, as amended or replaced, through its fault or negligence or otherwise arising from its operations on the Easement or the Access Roads to accrue on the Land, the Access Roads, the Easement or any parts thereof, except a lien for
ad valorem property taxes not due or payable. Should any encumbrance or lien on the Land, the Access Roads or the Easement accrue due to Grantee’s act or omission, Grantee shall cause the same to be promptly discharged and removed. If Grantee
fails to discharge or remove any such lien or encumbrance, Grantor shall have the right, but not the obligation, to take such action as may be necessary to remove or satisfy the same; and Grantee shall be obligated to reimburse Grantor for any
expense, disbursements or attorney’s fees necessarily incurred in protecting the Land, Easement or Access Roads or its other property from such liens and encumbrances and shall pay the same promptly within thirty (30) days of demand
therefor, which demand is accompanied by backup invoices reflecting the payment of the amount being requested. Grantee, however, shall have the right to contest in the courts or otherwise the validity of any such lien. 

19. If any provision of this Agreement is adjudicated and found to be against public policy, void, or otherwise unenforceable, then such
provision shall be modified or deleted, in keeping with the express intent of the Parties hereto, as necessary to render all the remainder of this Agreement valid and enforceable. All such modifications or deletions shall be the minimum required to
effect the foregoing. 
  

 Exhibit E2 - 7 

 20. Subject to the default provisions hereof, the term (“Term”) of
the Agreement shall be from the Effective Date of this Agreement and continue for so long thereafter as Grantee shall use the said Easement; provided, however, this Agreement shall terminate upon abandonment by Grantee of the Easement which
abandonment shall be deemed to occur if a period of more than two (2) years elapses without use of said Easement. 
 21. If
Grantee violates any terms or conditions in this Agreement, Grantor may declare Grantee in default by written notice. If Grantee does not begin good faith efforts to cure such default within thirty days (30) days, Grantor shall have the
following remedies, which may be exercised individually or cumulatively: 
  

	 	a.	Grantor may immediately terminate this Agreement by providing written notice of such termination to Grantee; 

 

	 	b.	Grantor may seek legal action against Grantee in court to recover possession of the Easement without giving Grantee prior notice to quit the Easement; or

  

	 	c.	Grantor may seek legal action against Grantee for all damages, including reasonable attorney’s fees, resulting from Grantee’s violation of any terms or
conditions in this Agreement. 

 Grantee shall diligently pursue the cure of any default. In addition to the remedies contained in
this Agreement, Grantor may seek any other remedies allowed by law. All provisions herein contained concerning the remedy of Grantor in case of breach by Grantee of any condition, covenant or agreement herein contained, shall be deemed to be
cumulative and not exclusive, and shall not deprive Grantor of any of its other legal or equitable remedies which may now or hereafter be provided under any Legal Requirement. 

22. No delay or omission of Grantor to exercise any right, remedy or lien accruing upon any default or termination or otherwise available
to it, shall impair, prejudice or waive any such right, remedy or lien, but every such right, remedy and lien may be exercised by Grantor on account of any subsequent breach in the same manner and to the same extent as if such delay or omission had
not occurred. 
 23. If Grantee shall become insolvent, this Agreement shall terminate and Grantor may reenter and regain
possession of the Land. Grantee shall be deemed insolvent if a receiver is appointed to take possession of all or substantially all of Grantee’s property, Grantee makes a general assignment for the benefit of creditors, or Grantee files a
petition in bankruptcy, reorganization, or insolvency. 
 24. Any notice provided for or permitted herein to be given by either
Party to the other Party shall be conclusively deemed to have been given upon receipt thereof, whether by United States mail, return receipt required, or by hand delivery at the mailing address hereinabove set forth. 

 

 Exhibit E2 - 8 

 25. In the event of reversion to Grantor of the Easement herein granted whether by
termination or otherwise, Grantee shall remove all above ground Facilities and, if requested by Grantor using a commercially reasonable basis or required by any Legal Requirement, remove all below ground Facilities, and restore said Easement, except
as to timber and other forest products removed hereunder, and shall reclaim said Easement in accordance with any Legal Requirement. 

26. This Agreement conveys only the rights herein specifically set out. No right of ownership of any nature is vested in Grantee in and
to the Land, Access Roads or the Easement. This Agreement embodies the entire understanding of the Parties, and may be amended or modified only by subsequent written agreement of the Parties. 

27. This Agreement and the rights granted hereunder shall be covenants running with the land and binding upon the heirs, executors,
administrators, successors and assigns of the Parties hereto. The rights herein granted shall not be transferred, assigned or sublet, in whole or in part, without the prior written consent of Grantor which shall not be unreasonably withheld.

 28. Upon the termination of this Agreement, Grantee shall execute and deliver to Grantor in such form as will permit
recordation of the same, a written release of this Agreement and relinquishment of all the right, title and interest acquired under this Agreement in and to the Easement, including such property as Grantee may be permitted to leave on the Easement.

 29. Nothing herein contained or hereby implied including, without limitation, rights reserved by Grantor to use the Land,
Access Roads or Easement shall be construed as creating or constituting, by implication or otherwise, an obligation of or right in Grantor to control or otherwise correct Grantees’ acts and omissions or a lessening of Grantees’ duties to
indemnify Grantor and others and provide insurance herein required, or any relationship of partnership, joint venture, agency of employer and employee between Grantor on the one hand and Grantee on the other hand. Grantee shall in no way be
considered an agent, contractor or employee of Grantor. Grantee shall be solely responsible for and have control over the means, methods, techniques, sequences and procedures used by the Grantee or any of its Agents. Grantor disclaims any right to
control Grantee’s or any of its Agents’ manners of performance. 
 30. The waiver, in whole or in part, of any of the
terms or conditions hereof shall be limited to the act or acts consulting such breach, and shall never be construed as being a continuing or permanent waiver of any of such terms or conditions or as a wavier of any other terms and conditions hereof,
all of which shall be and remain in full effect notwithstanding any such waiver. 
 31. This Agreement shall be construed as a
whole and in accordance with the fair meaning of its language. Each Party has cooperated and participated in the drafting and preparation of this Agreement, and therefore, in any construction to be made of this Agreement or any of its terms, both
Parties shall be construed to be equally responsible for the drafting and preparation of the same. 
  

 Exhibit E2 - 9 

 32. Any time period to be computed pursuant to this Agreement shall be computed by excluding
the first day and including the last. Unless the language at issue under this Agreement indicates otherwise, if the last day falls on a Saturday, Sunday, or holiday, the last day shall be extended until the next calendar day. 

33. This Agreement does not confer any benefit on any third party and no third party shall be entitled to rely on or receive any benefit
from or enforce any provision of this Agreement. 
 34. THE PARTIES WAIVE THE RIGHT TO TRIAL BY JURY IN ANY ACTION BROUGHT
UNDER THIS AGREEMENT. Any claim or controversy arising out of or relating to this Agreement, or the breach thereof, shall be settled by binding arbitration in accordance with the rules of the American Arbitration Association, and the judgment
upon the award rendered by the arbitrators may be entered in any court having jurisdiction thereof. Arbitration proceedings hereunder shall be conducted at such place as the Parties to such arbitration shall mutually agree upon One Party shall pick
one arbitrator and the other Party shall pick one arbitrator. The two arbitrators shall pick a third arbitrator. 
 35.
NOTWITHSTANDING ANYTHING IN THIS AGREEMENT TO THE CONTRARY, NO PARTY HERETO (OR ITS SHAREHOLDERS OR MEMBERS OR THEIR RESPECTIVE SUBSIDIARIES OR AFFILIATES) SHALL BE LIABLE FOR PUNITIVE, INDIRECT, INCIDENTAL, EXEMPLARY OR CONSEQUENTIAL LOSSES OR
DAMAGES WHATSOEVER FOR ANY MATTER RELATING TO OR ARISING OUT OF THIS AGREEMENT, INCLUDING LOSS OF PROFITS, WHETHER BASED UPON BREACH OF CONTRACT, BREACH OF WARRANTY, TORT LIABILITY (INCLUDING NEGLIGENCE AND STRICT LIABILITY), STRICT LIABILITY, OR
OTHER LEGAL THEORY, NOTHING CONTAINED IN THIS AGREEMENT SHALL BE CONSTRUED TO RELIEVE ANY PARTY OF ITS OBLIGATION TO MITIGATE DAMAGES FOR ANY OTHER PARTY’S BREACH. 

36. THE TOTAL MONETARY AMOUNT FOR ANY LOSSES AND DAMAGES, NOT EXPRESSLY LIMITED OR EXCLUDED IN THIS AGREEMENT, FOR ANY MATTER
RELATING TO OR ARISING OUT OF A BREACH OF THIS AGREEMENT THAT ANY PARTY HERETO SHALL BE OBLIGATED TO PAY TO ANOTHER PARTY HERETO SHALL NOT EXCEED AN AMOUNT EQUAL TO THE ACTUAL, DIRECT LOSSES OR DAMAGES SUSTAINED BY SUCH PARTY FOR SUCH MATTER. 

 37. This grant may be executed in counterparts. Signatures on separate originals shall constitute and be of the same effect
as signatures on the same original. Electronic and faxed signatures shall constitute original signatures. 
 38. The following
Sections shall survive for a period of three years following the expiration or termination of this Agreement: 5, 7, 8, 13, 14, 16, 17, 18, 25, 28, 34, 35, and 36; provided, however, that Grantee’s liability for any environmental damages as set
forth in Section 14 and Grantee’s obligation under Section 13 to indemnify Grantor for such environmental damages shall survive the expiration or termination of this Agreement without limit. 

 

 Exhibit E2 - 10 

 39. The Parties covenant and agree to execute such other and further instruments and
documents as are necessary or convenient to effectuate and carry out the purpose of this Agreement, including a Memorandum of Agreement to be filed in the records of Buchanan County, Virginia. 

IN WITNESS WHEREOF, this Agreement is executed by the Parties hereto as of the dates of their respective acknowledgements but is
effective as of the first date mentioned hereinabove. 
  

					
	CNX GAS COMPANY LLC	  		  	GEOMET OPERATING COMPANY, INC.
			
	  
	  		  	  

	Name:	  		  	Name: J. Darby Seré
	Title:	  		  	Title: President

  

 Exhibit E2 - 11 

 EXHIBIT F 

to that certain 

Settlement, Release and Confidentiality Agreement 

by and between CONSOL Energy Inc. et al., and 

GeoMet, Inc. et al. 

dated April 16, 2010 

Administrative Proceedings 
  

	 	•	 	 ICCC, CNX Gas and GeoMet have taken appeals from Decisions and Orders of the Virginia Gas and Oil Board (hereinafter “Board”) on appeals
taken to the Board from Decisions of the Director of the Division of Gas and Oil (hereinafter “DGO”). 

  

	 	•	 	 ICCC, CNX Gas and GeoMet have also taken appeals from Decisions and Orders of the Board which addressed matters first heard and determined by the Board
and which did not originate before the DGO. 

 Tazewell County 

 

	 	•	 	 GeoMet, Inc., GeoMet Operating Company, Inc. and GeoMet Gathering Company, LLC, Plaintiffs v. CNX Gas Company LLC and Island Creek Coal Company,
Defendants, Case No. CL07000065-00, Circuit Court Tazewell County, Virginia, filed February 14, 2007. 

Washington County 
  

	 	•	 	 GeoMet Operating Company Inc. v. Virginia Department of Mines, Minerals and Energy, et al. CL08002141-00 filed October 7, 2008

 Buchanan County 
  

	 	•	 	 GeoMet Operating Company, Inc. and Pocahontas Mining Limited Liability Company, Plaint v. CNX Gas Company, L.L.C., Defendant, Case
No. 337-06, Circuit Court of Buchanan County, filed May 26, 2006 

  

	 	•	 	 GeoMet Operating Company, Inc. v. Virginia Department of Mines, Minerals and Energy and CNX Gas Company LLC, Case No. 485-06, Circuit Court
of Buchanan County, Virginia, filed August 24, 2006. 

  

	 	•	 	 CNX Gas Company, LLC. v. Jason Poulos, et al. CL07000318-07, consolidating the following cases: 3 19-07, 320-07, 321-07, 322-07, 323-07, 324-07,
325-07, 326-07, 327-07, 328-07, 329-07, 330-07, 33 1-07, 332-07, 333-07, 33407, 335-07, 336-07, 337-07, 33 8-07, 3 39-07, 340-07, 34 1-07, 342-07, 343-07, 344-07, and 345-07 

 

	 	•	 	 CNX Gas Company, LLC v. Virginia Gas and Oil Board et al., CL0800504-00, Court of Buchanan County, Virginia, filed August 28, 2008,
appealing VGOB Order 06-121- 1844, Unit F-44. 

  

	 	•	 	 CNX Gas Company, LLC v. Virginia Gas and Oil Board, et al., CL0800505-00 Court of Buchanan County, Virginia, filed August 28, 2008
appealing VGOB 06-1219-1 843, Unit B-52. 

  

 Exhibit E2 - 1 

	 	•	 	 CNX Gas Company, LLC v. Virginia Gas and Oil Board, et al., CL0800506-00 Court of Buchanan County, Virginia, filed August 28, 2008,
appealing VGOB Order 06-1219- 1845, Unit E-44. 

  

	 	•	 	 CNX Gas Company, LLC v. Virginia Gas and Oil Board, et al., CL0800507-00 Court of Buchanan County, Virginia, filed August 28, 2008,
appealing VGOB Order 06-12 19- 1850, Unit D-38. 

  

	 	•	 	 GeoMet Operating Company, Inc. v. Virginia Department of Mines, Minerals and Energy and Island Creek Coal Company, CL09000037-00, Circuit Court
of Buchanan County, Virginia, filed January 15, 2009. 

 West Virginia Public Service Commission

  

	 	•	 	 GeoMet, Inc. v. Cardinal States Gathering Company, West Virginia Public Service Commission, Case No. 08-1691-GT-C, filed October 1,
2008. 

  

 Exhibit E2 - 2 

 EXHIBIT G 

to that certain 

Settlement, Release and Confidentiality Agreement by and between 

CONSOL Energy Inc. et al., and 

GeoMet, Inc. et al. 

dated April 16, 2010 
  

 Exhibit G - 1 

 VIRGINIA: 

IN THE CIRCUIT COURT OF BUCHANAN COUNTY 
  

					
	GEOMET OPERATING COMPANY, INC.	  	)	  	
		  	)	  	
	Appellant,	  	)	  	
		  	)	  	
	VS.	  	)	  	            CASE NO. O9-O3
		  	)	  	
	COMMONWEALTH OF VIRGINIA,	  	)	  	
	DEPARTMENT OF MINES, MINERALS	  	)	  	
	AND ENERGY, DIVISION OF GAS AND OIL,	  	)	  	
		  	)	  	
	and	  	)	  	
		  	)	  	
	ISLAND CI COAL COMPANY,	  	)	  	
		  	)	  	
	and	  	)	  	
		  	)	  	
	LBR HOLDINGS, LLC,	  	)	  	
		  	)	  	
	Appellees.	  	)	  	

 FINAL ORDER 

On this day came the parties, by counsel, pursuant to the permit applications filed by GeoMet Operating Company, Inc., in connection with
well work permits for wells within Units D-35, D-36, D-37, E-34, E-35, and E-36 which are located within the Oakwood Coalbed Methane Field; upon the decision of the Director of the Virginia Department of Mines, Minerals, and Energy Division of Gas
an Oil; the appeal of GeoMet Operating Company of the denial of the permits to the Virginia Gas and Oil Board; upon the decision of the Virginia Gas and Oil Board denying the subject permits by Order in re Virginia Gas and Oil Board Docket No.
VGOB 08-0617-2260; upon the Notice of Appeal and Petition for Appeal to this Court filed by GeoMet Operating Company and the timely filing of Responses thereto by all parties respondent; and upon the representation of the parties hereto that
matters in controversy regarding Units D-36, D-37, E-34, E-35, and E-36 have been settled. 
  

 Exhibit G - 2 

 UPON CONSIDERATION HEREOF, the Court finds that it has jurisdiction of the parties and
subject matter hereto; and 
 The Court finds that the parties to this action have resolved the outstanding issues concerning
the appeals by GeoMet Operating Company pertaining to Units D-36, D-37, E-34, E-35 and E-36, leaving Unit D-35 as the only matter still in controversy. It is therefore 

ADJUDGED, ORDERED and DECREED that the appeals of Units D-36, D-37, E-34, E-35 and E-36 be and hereby are dismissed with prejudice from
this Court’s docket; and, it is 
 ADJUDGED, ORDERED and DECREED that each party shall bear its own costs and
attorneys’ fees incurred in the prosecution and/or defense of the above entitled action; 
 ADJUDGED, ORDERED and DECREED
that the Clerk is to continue this cause on the docket; and, it is further 
 ADJUDGED, ORDERED and DECREED that an attested
copy of this Order be forwarded to all counsel of record. 
 ENTER this ORDER this
             day of
                            , 2009. 

                      
                      

S.T. Mullins, Esq. 

Pebbles L. Deel, Esq. 

STREET LAW FIRM, LLP 

P.O. Box 2100 

Grundy, VA 24614 

Telephone: (276) 935-2128 

Facsimile: (276) 935-4162 

Counsel for GeoMet Operating Company, Inc. 
  

 Exhibit G - 3 

                      
                   
 Mark A.
Swartz, Esq. 
 SWARTZ LAW OFFICES PLLC 

P.O. Box 1808 

St. Albans, WV 25177-1808 

Telephone: (304) 729-9000 

Facsimile: (304) 729-0099 

Counsel for Island Creek Coal Company 

                      
                   
 A. George
Mason, Jr., Esq. 
 A. GEORGE MASON, JR. PSC 

841 Corporate Dr., Suite 203 

Lexington, Kentucky 40503 

Telephone: (859) 224-8277 

Facsimile: (859) 296-2998 

Counsel for LBR Holding, LLC 

                      
                   
 Sharon M.B.
Pigeon, Esq. 
 Senior Assistant Attorney General of Virginia 

Post Office Drawer 900 

Big Stone Gap, VA 24219 

Telephone: (276) 523-8168 

Facsimile: (276) 523-8148 

Counsel for Virginia Department of Mines, 

Minerals, and Energy (Division of Gas and Oil), 

And George P. Willis, Director 

Virginia Department of Mines, Minerals, and Energy 
  

 Exhibit G - 4 

 VIRGINIA: 

IN THE CIRCUIT COURT OF BUCHANAN COUNTY 
  

					
	GEOMET OPERATING COMPANY, INC.	  	)	  	
		  	)	  	
	Appellant,	  	)	  	
		  	)	  	
	VS.	  	)	  	            CASE NO. O9-O3
		  	)	  	
	COMMONWEALTH OF VIRGINIA,	  	)	  	
	DEPARTMENT OF MINES, MINERALS	  	)	  	
	AND ENERGY, DIVISION OF GAS AND OIL,	  	)	  	
		  	)	  	
	and	  	)	  	
		  	)	  	
	ISLAND CI COAL COMPANY,	  	)	  	
		  	)	  	
	and	  	)	  	
		  	)	  	
	LBR HOLDINGS, LLC,	  	)	  	
		  	)	  	
	Appellees.	  	)	  	

 FINAL ORDER 

On this day came the parties, by counsel, pursuant to the permit applications filed by GeoMet Operating Company, Inc., in connection with
well work permits for wells within Unit ZZZ-41 which is located within the Oakwood Coalbed Methane Field; upon the decision of the Director of the Virginia Department of Mines, Minerals and Energy Division of Gas and Oil; the appeal of Island Creek
Coal Company on the issued permit to the Virginia Gas and Oil Board; upon the decision of the Virginia Gas and Oil Board denying the subject permit by Order in re Virginia Gas and Oil Board Docket No. VGOB 08-0617-2261; upon the Notice of
Appeal and Petition for Appeal to this Court filed by GeoMet Operating Company and the timely filing of Responses thereto by all parties respondent; and upon the representation of the parties hereto that all matters in controversy have been settled.

  

 Exhibit G - 5 

 WHEREUPON, the Court finds that it has jurisdiction of the parties and subject matter hereto
and that the parties to this action have resolved all outstanding issues concerning this appeal by GeoMet Operating Company. It is therefore 

ADJUDGED, ORDERED and DECREED that these matters be and hereby are dismissed with prejudice front this Court’s docket; and, it is

 ADJUDGED, ORDERED and DECREED that each party shall bear its o costs and attorneys’ fees incurred iii the prosecution
and/or defense of the above entitled action; 
 ADJUDGED, ORDERED and DECREED that the Clerk is to strike these matters from
this Court’s docket and file each among the ended causes; and it is further 
 ADJUDGED, ORDERED and DECREED that an
attested copy of’ this Order be forwarded to all counsel of record. 
 ENTER this ORDER this
             day of
                                , 2009. 

 

	
	  

	JUDGE

                      
                           

S. T. Mullins, Esq. 

Pebbles L. Deel, Esq. 

STREET LAW FIRM, LLP 

P.O. Box 2100 

Grundy, VA 24614 

Telephone: (276) 935-2128 

Facsimile: (276) 935-4162 

Counsel for GeoMet Operating Company. Inc. 
  

 Exhibit G - 6 

                      
                   
 Mark A.
Swartz, Esq. 
 SWARTZ LAW OFFICES PLLC 

P.O. Box 1808 

St. Albans, WV 25177-1808 

Telephone: (304) 729-9000 

Facsimile: (304) 729-0099 

Counsel for Island Creek Coal Company 

                      
                   
 A. George
Mason, Jr., Esq. 
 A. GEORGE MASON, JR. PSC 

841 Corporate Dr., Suite 203 

Lexington, Kentucky 40503 

Telephone: (859) 224-8277 

Facsimile: (859) 296-2998 

Counsel for LBR Holding, LLC 

                      
                   
 Sharon M.B.
Pigeon, Esq. 
 Senior Assistant Attorney General of Virginia 

Post Office Drawer 900 

Big Stone Gap, VA 24219 

Telephone: (276) 523-8168 

Facsimile: (276) 523-8148 

Counsel for Virginia Department of Mines, 

Minerals, and Energy (Division of Gas and Oil), 

And George P. Willis, Director 

Virginia Department of Mines, Minerals, and Energy 
  

 Exhibit G - 7 

 VIRGINIA: IN THE CIRCUIT COURT FOR THE COUNTY OF BUCHANAN CNX GAS 

COMPANY LLC, 
 Plaintiff,

  

			
	v.	 	CASE NO. CL0800504-OO

 VIRGINIA GAS AND OIL BOARD ET AL.,

 Defendants. 

ORDER OF DISMISSAL WITH PREJUDICE 

This Court, upon consent of the parties, through their undersigned counsel, being informed that all maters in dispute have been settled
between the parties, ORDERS, ADJUDGES and DECREES that this case is dismissed with prejudice. Each party shall bear its own costs and attorneys’ fees incurred in the prosecution and/or defense of the above entitled action. 

The Clerk is ORDERED to send an attested copy to all counsel of record and place this matter among the ended causes. 

ENTERED this              day of
                    , 2010. 
  

	
	  
	Circuit Court Judge

  

 Exhibit G - 8 

 WE ASK FOR THIS: 

                         
                                         
                           

J. Scott Sexton, Esquire (VSB No. 29284) 

James J. O’Keeffe IV, Esquire (VSB No. 48620) 

Gentry, Locke, Rakes & Moore LLP 
 800
SunTrust Plaza 
 P.O. Box 40013 

Roanoke, Virginia 24022-0013 
 (540) 983-9300

 (540) 983-9400 (Facsimile) 

                         
                                         
                           

S. Thomas Mullins, Esquire (VSB No. 27572) 

Benjamin A. Street, Esquire (VSB No. 41118) 

Street Law Firm LLP 
 P.O. Box 2100 

Grundy, Virginia 24614 
 (276) 936-2128

 (276) 935-4162 (Facsimile) 

                         
                                         
                           

Jonathan T. Blank, Esquire 
 VSB No. 38487

 MCGUIRE WOODS LLP 
 Court Square
Building 
 310 Fourth Street N.E., Suite 300 

P.O. Box 45 
 Charlottesville, Virginia 24902

 (434) 977-2509 
 (434) 980-2258
(Facsimile) 

                         
                                         
                           

Mark A. Swartz, Esquire 
 VSB No. 35160

 Swartz Law Office PLLC 
 PMB 210 2133
Upton Drive, Suite 126 
 Virginia Beach, Virginia 23454-1194 

(757) 721-2666 
 Counsel for CNX Gas Company
LLC 
  

 Exhibit G - 9 

                      
                                         
                              

Sharon M.B. Pigeon, Esquire 

Senior Assistant Attorney General of Virginia 

Post Office Drawer 900 

Big Stone Gap, Virginia 24219 

Telephone: (276) 523-8168 

Facsimile: (276) 523-8148 

Counsel for Virginia Department of Mines, Minerals, 

and Energy (Division of Gas and Oil), 

and George P. Willis, Director, 

Virginia Department of Mines, Minerals & Energy 

                      
                                         
                              

A. George Mason, Esquire 

841 Corporate Dr., Ste. 203 

Lexington, KY 40503 

Telephone: (859) 224-8277 

Facsimile: (859) 296-2998 

Counsel for LBR Holdings 
  

 Exhibit G - 10 

 VIRGINIA: IN THE CIRCUIT COURT FOR THE COUNTY OF WASHINGTON 

GEOMET OPERATING COMPANY, INC., 

Plaintiff, 
 V. 

CASE NO. CL08002141-00 

VIRGINIA DEPARTMENT OF MINES, MINERALS 
 AND
ENERGY, ET AL., 
 Defendants. 

ORDER OF DISMISSAL WITH PREJUDICE 

This Court, upon consent of the parties, through their undersigned counsel, being informed that all maters in dispute have been settled
between the parties, ORDERS, ADJUDGES and DECREES that this case is dismissed with prejudice. Each party shall bear its own costs and attorneys’ fees incurred in the prosecution and/or defense of the above entitled action. 

The Clerk is ORDERED to send an attested copy to all counsel of record and place this matter among the ended causes. 

ENTERED this              day of
                     2010. 
  

	
	  
	Circuit Court Judge

  

 Exhibit G - 11 

 WE ASK FOR THIS: 

                         
                                         
                           

J. Scott Sexton, Esquire (VSB No. 29284) 

James J. O’Keeffe IV, Esquire (VSB No. 48620) 

Gentry, Locke, Rakes & Moore LLP 
 800
SunTrust Plaza 
 P.O. Box 40013 

Roanoke, Virginia 24022-0013 
 (540) 983-9300

 (540) 983-9400 (Facsimile) 

                         
                                         
                           

S. Thomas Mullins, Esquire (VSB No. 27572) 

Benjamin A. Street, Esquire (VSB No. 41118) 

Street Law Firm LLP 
 P.O. Box 2100 

Grundy, Virginia 24614 
 (276) 936-2128

 (276) 935-4162 (Facsimile) 

                         
                                         
                           

David Altizer, Esquire 
 VSB No. 

ALTIZER, WALK AND WHITE, PLLC 
 P.O. Box 30

 Tazewell, Virginia 24651 
 (276)
988-7979 
 (276) 988-6707 (Facsimile) 

                         
                                         
                           

Jonathan T. Blank, Esquire 
 VSB No. 38487

 MCGUIRE WOODS LLP 
 Court Square
Building 
 310 Fourth Street N.E., Suite 300 

P.O. Box 45 
 Charlottesville, Virginia 24902

 (434) 977-2509 
 (434) 980-2258
(Facsimile) 
  

 Exhibit G - 12 

                         
                                         
                           

Mark A. Swartz, Esquire 
 VSB No. 35160

 Swartz Law Office PLLC 
 PMB 210 2133
Upton Drive, Suite 126 
 Virginia Beach, Virginia 23454-1194 

(757) 721-2666 
 Counsel for CNX Gas Company
LLC 

                         
                                         
                           

Sharon M.B. Pigeon, Esquire 
 Senior Assistant
Attorney General of Virginia 
 Post Office Drawer 900 

Big Stone Gap, Virginia 24219 
 Telephone:
(276) 523-8168 
 Facsimile: (276) 523-8148 

Counsel for Virginia Department of Mines, Minerals, 

and Energy (Division of Gas and Oil), 

and George P. Willis, Director, 

Virginia Department of Mines, Minerals & Energy 
  

 Exhibit G - 13 

 VIRGINIA: IN THE CIRCUIT COURT FOR THE COUNTY OF BUCHANAN CNX GAS 

COMPANY LLC, 
 Plaintiff,

  

			
	v.	 	CASE NO. CL0800506-00

 VIRGINIA GAS AND OIL BOARD ET AL.,

 Defendants. 

ORDER OF DISMISSAL WITH PREJUDICE 

This Court, upon consent of the parties, through their undersigned counsel, being informed that all maters in dispute have been settled
between the parties, ORDERS, ADJUDGES and DECREES that this case is dismissed with prejudice. Each party shall bear its own costs and attorneys’ fees incurred in the prosecution and/or defense of the above entitled action. 

The Clerk is ORDERED to send an attested copy to all counsel of record and place this matter among the ended causes. 

ENTERED this              day of
                    , 2009. 
  

	
	  
	Circuit Court Judge

  

 Exhibit G - 14 

 WE ASK FOR THIS: 

                         
                                         
                           

J. Scott Sexton, Esquire (VSB No. 29284) 

James J. O’Keeffe IV, Esquire (VSB No. 48620) 

Gentry, Locke, Rakes & Moore LLP 
 800
SunTrust Plaza 
 P.O. Box 40013 

Roanoke, Virginia 24022-0013 
 (540) 983-9300

 (540) 983-9400 (Facsimile) 

                         
                                         
                           

S. Thomas Mullins, Esquire (VSB No. 27572) 

Benjamin A. Street, Esquire (VSB No. 41118) 

Street Law Firm LLP 
 P.O. Box 2100 

Grundy, Virginia 24614 
 (276) 936-2128

 (276) 935-4162 (Facsimile) 

                         
                                         
                           

Jonathan T. Blank, Esquire 
 VSB No. 38487

 MCGUIRE WOODS LLP 
 Court Square
Building 
 310 Fourth Street N.E., Suite 300 

P.O. Box 45 
 Charlottesville, Virginia 24902

 (434) 977-2509 
 (434) 980-2258
(Facsimile) 

                         
                                         
                           

Mark A. Swartz, Esquire 
 VSB No. 35160

 Swartz Law Office PLLC 
 PMB 210 2133
Upton Drive, Suite 126 
 Virginia Beach, Virginia 23454-1194 

(757) 721-2666 
 Counsel for CNX Gas Company
LLC 
  

 Exhibit G - 15 

                         
                                         
                           

Sharon M.B. Pigeon, Esquire 
 Senior Assistant
Attorney General of Virginia 
 Post Office Drawer 900 

Big Stone Gap, Virginia 24219 
 Telephone:
(276) 523-8168 
 Facsimile: (276) 523-8148 

Counsel for Virginia Department of Mines, Minerals, 

and Energy (Division of Gas and Oil), 

and George P. Willis, Director, 

Virginia Department of Mines, Minerals & Energy 

                         
                                         
                           

A. George Mason, Esquire 
 841 Corporate Dr.,
Ste. 203 
 Lexington, KY 40503 

Telephone: (859) 224-8277 
 Facsimile:
(859) 296-2998 
 Counsel for LBR Holdings 
  

 Exhibit G - 16 

 VIRGINIA: IN THE CIRCUIT COURT FOR THE COUNTY OF BUCHANAN 

GEOMET OPERATING COMPANY, 
 INC. and POCAHONTAS
MINING 
 COMPANY, LLC, 

Plaintiffs, 
  

			
	v.	  	 CASENO. 337-06

CNX GAS COMPANY LLC, 

Defendant. 

ORDER OF DISMISSAL WITH PREJUDICE 

By Order dated May 23, 2007, this Court entered summary judgment in favor of CNX Gas Company, LLC (“CNX”) on its
counterclaim for declaratory judgment, and denied the motion for summary judgment filed by GeoMet Operating Company, Inc. (“GeoMet”) and Pocahontas Mining Company, LLC (“PMC”) on Count I of their Complaint and by subsequent Order
dated July 20, 2007, this Court certified this matter for interlocutory appeal to the Virginia Supreme Court, which appeal was granted. On September 12, 2008, the Supreme Court issued its opinion in this matter, reversing this Court’s
prior order of May 23, 2007 and remanding the case to this Court for further action consistent with the principles expressed in the Supreme Court’s opinion. 

Accordingly, this Court ORDERS and DECLARES that: 

1. With respect to Defendant’s Counterclaim and Plaintiffs’ Count 1 of its First Amended Complaint, it adopts by reference the
September 12, 2008 Opinion of the Virginia Supreme Court and the subsequent mandate, and hereby enters final judgment in accordance therewith; 
  

 Exhibit G - 17 

 2. Counts 2, 3 and 4 of the First Amended Complaint are non-suited without prejudice and
Defendants’ Demurrers are mooted by this Order and the September 12, 2008, Opinion of the Virginia Supreme Court; 

3. Each party shall bear its own costs and attorneys’ fees incurred in the prosecution and/or defense of the above entitled action;
and 
 4. Copy of this Order is to be forwarded by the Clerk of this Court to all counsel of record and that this matter be
removed from the Court’s docket. 
 Enter this Order this     day of
            ,2010. 
  

	
	  
	Judge

 WE ASK FOR THIS: 

                         
                                         
               
 S.T. Mullins, Esq. 

Benjamin A. Street, Esq. 
 STREET LAW FIRM, LLP

 P.O. Box 2100 
 Grundy, Virginia
24614 
 Telephone (276) 935-2128 

Telefax (276) 935-4162 
 J. Scott Sexton,
Esquire 
 Gentry, Locke, Rakes & Moore LLP 

P.O. Box 40013 
 Roanoke, Virginia 24022-0013

 Telephone (540) 983-9300 

Telefax (540) 983-9400 

                         
                                         
               
 Donald R. Johnson, Esq. 

Sugarloaf Crossing 
 1950 Electric Road

 Roanoke, Virginia 24018-1621 

Telephone (540) 989-3505 
 Telefax
(540) 989-2077 
 Counsel for Plaintiff Pocahontas Mining Limited Liability Company 

 

 Exhibit G - 18 

 SEEN: 

                         
                                         
               
 David Altizer, Esq. 

ALTIZER, WALK AND WHITE, PLLC 
 P.O. Box 30

 Tazewell, Virginia 24651 
 Telephone
(276) 988-7979 
 Telefax (276) 988-6707 

Counsel for CNX Gas Company, LLC 

                         
                                         
               
 Jonathan T. Blank 

MCGUIRE WOODS LLP 
 Court Square Building

 310 Fourth Street N.E., Suite 300 

P.O. Box 45 
 Charlottesville, Virginia 24902

 Telephone (434) 977-2509 

Telefax (434) 980-2258 
 Counsel for
Defendant CNX Gas Company, LLC 
  

 Exhibit G - 19 

 VIRGINIA: IN THE CIRCUIT COURT FOR THE COUNTY OF BUCHANAN CNX GAS 

COMPANY LLC, 
 Plaintiff,

  

			
	v.	  	CASE NO. CL0800507-00

 VIRGINIA GAS AND OIL BOARD ET AL.,

 Defendants. 

ORDER OF DISMISSAL WITH PREJUDICE 

This Court, upon consent of the parties, through their undersigned counsel, being informed that all maters in dispute have been settled
between the parties, ORDERS, ADJUDGES and DECREES that this case is dismissed with prejudice. Each party shall bear its own costs and attorneys’ fees incurred in the prosecution and/or defense of the above entitled action. 

The Clerk is ORDERED to send an attested copy to all counsel of record and place this matter among the ended causes. 

ENTERED this      day of
                    , 2010. 
  

	
	  
	Circuit Court Judge

  

 Exhibit G - 20 

 WE ASK FOR THIS: 

                         
                                         
                   
 J. Scott Sexton, Esquire (VSB
No. 29284) 
 James J. O’Keeffe IV, Esquire (VSB No. 48620) 

Gentry, Locke, Rakes & Moore LLP 
 800
SunTrust Plaza 
 P.O. Box 40013 

Roanoke, Virginia 24022-0013 
 (540) 983-9300

 (540) 983-9400 (Facsimile) 

                         
                                         
                   
 S. Thomas Mullins, Esquire
(VSB No. 27572) 
 Benjamin A. Street, Esquire (VSB No. 41118) 

Street Law Firm LLP 
 P.O. Box 2100 

Grundy, Virginia 24614 
 (276) 936-2128

 (276) 935-4162 (Facsimile) 

                         
                                         
                   
 Jonathan T. Blank, Esquire

 VSB No. 38487 
 MCGUIRE WOODS
LLP 
 Court Square Building 
 310
Fourth Street N.E., Suite 300 
 P.O. Box 45 

Charlottesville, Virginia 24902 
 (434) 977-2509

 (434) 980-2258 (Facsimile) 

                         
                                         
               
 Mark A. Swartz, Esquire 

VSB No. 35160 
 Swartz Law Office PLLC

 PMB 210 2133 Upton Drive, Suite 126 

Virginia Beach, Virginia 23454-1194 
 (757)
721-2666 
 Counsel for CNX Gas Company LLC 
  

 Exhibit G - 21 

                         
                                         
                   
 Sharon M.B. Pigeon, Esquire

 Senior Assistant Attorney General of Virginia 

Post Office Drawer 900 
 Big Stone Gap, Virginia
24219 
 Telephone: (276) 523-8168 

Facsimile: (276) 523-8148 
 Counsel for
Virginia Department of Mines, Minerals, 
 and Energy (Division of Gas and Oil), 

and George P. Willis, Director, 

Virginia Department of Mines, Minerals & Energy 

                         
                                         
                   
 A. George Mason, Esquire

 841 Corporate Dr., Ste. 203 

Lexington, KY 40503 
 Telephone:
(859) 224-8277 
 Facsimile: (859) 296-2998 

Counsel for LBR Holdings 
  

 Exhibit G - 22 

 VIRGINIA: IN THE CIRCUIT COURT FOR THE COUNTY OF TAZEWELL 

GEOMET, INC., 
 GEOMET OPERATING COMPANY, INC.,

 and 
 GEOMET GATHERING COMPANY, LLC,

 Plaintiffs, 
  

			
	v.	  	 CaseNo. CL07000065-OO

CNX GAS COMPANY LLC, 
 ISLAND CREEK COAL
COMPANY, 
 CARDINAL STATES GATHERING COMPANY, 

and 
 CONSOL ENERGY, INC., 

Defendants. 

ORDER OF DISMISSAL WITH PREJUDICE 

This Court, upon consent of the parties, through their undersigned counsel, being informed that all maters in dispute have been settled
between the parties, ORDERS, ADJUDGES and DECREES that this case is dismissed with prejudice. Each party shall bear its own costs and attorneys’ fees incurred in the prosecution and/or defense of the above entitled action. 

The Clerk is ORDERED to send an attested copy to all counsel of record and place this matter among the ended causes. 

ENTERED this      day of
                    , 2010. 
  

	
	  
	Circuit Court Judge

  

 Exhibit G - 23 

 We ask for the entry of this Order: 

                         
                                         
                   
 J. Scott Sexton, Esquire (VSB
No. 29284) 
 James J. O’Keeffe IV, Esquire (VSB No. 48620) 

Gentry, Locke, Rakes & Moore LLP 
 800
SunTrust Plaza 
 P.O. Box 40013 

Roanoke, Virginia 24022-0013 
 (540) 983-9300

 (540) 983-9400 (Facsimile) 

                         
                                         
                   
 S. Thomas Mullins, Esquire
(VSB No. 27572) 
 Benjamin A. Street, Esquire (VSB No. 41118) 

Street Law Firm LLP 
 P.O. Box 2100 

Grundy, Virginia 24614 
 (276) 936-2128

 (276) 935-4162 (Facsimile) 

                         
                                         
                   
 R. Paul Yetter 

YETTER, WARDEN & COLEMAN, LLP 
 Chase
Tower 
 221 West 6 Street, Suite 750 

Austin, TX 78701 
 (512) 533-0150 

Fax: (512) 533-0120 
 Counsel for
Plaintiffs 

                         
                                         
                   
 Jonathan T. Blank, Esquire
(VSB No. 38487) 
 MCGUIRE WOODS LLP 

Court Square Building 
 310 Fourth Street N.E.,
Suite 300 
 P.O. Box 45 

Charlottesville, Virginia 24902 
 (434) 977-2509

 (434) 980-2258 (Facsimile) 
  

 Exhibit G - 24 

                         
                                         
           
 James H. Walsh (VSB No. 15113) 

McGUIRE WOODS, LLP 
 One James Center 

901 East Cary Street 
 Richmond, Virginia 23219

 Telephone: (804) 775-4356 

Facsimile: (804) 698-2200 

                         
                                         
           
 David G. Altizer (VSB No. 14556) 

Mandy C. Varney (VSB No. 68744) 
 ALTIZER,
WALK and WHITE PLLC 
 P.O. Box 30 

Tazewell, VA 24651 
 (276) 988-7979 

Fax: (276) 988-6707 
 Counsel for
Defendants 
  

 Exhibit G - 25 

 VIRGINIA: IN THE CIRCUIT COURT FOR THE COUNTY OF BUCHANAN CNX GAS 

COMPANY LLC, 
 Plaintiff,

  

			
	v.	 	CASE NO. CL07000318-07

 JASON POULOS, ET AL., 

Defendants. 

ORDER OF DISMISSAL WITH PREJUDICE 

This Court, upon consent of the parties, through their undersigned counsel, being informed that all maters in dispute have been settled
between the parties, ORDERS, ADJUDGES and DECREES that this case is dismissed with prejudice. Each party shall bear its own costs and attorneys’ fees incurred in the prosecution and/or defense of the above entitled action. 

The Clerk is ORDERED to send an attested copy to all counsel of record and place this matter among the ended causes. 

ENTERED this      day of
                    , 2010. 
  

	
	  

	Circuit Court Judge

  

 Exhibit G - 26 

 WE ASK FOR THIS: 

                         
                                         
                   
 J. Scott Sexton, Esquire (VSB
No. 29284) 
 James J. O’Keeffe IV, Esquire (VSB No. 48620) 

Gentry, Locke, Rakes & Moore LLP 
 800
SunTrust Plaza 
 P.O. Box 40013 

Roanoke, Virginia 24022-0013 
 (540) 983-9300

 (540) 983-9400 (Facsimile) 

                         
                                         
                   
 S. Thomas Mullins, Esquire
(VSB No. 27572) 
 Benjamin A. Street, Esquire (VSB No. 41118) 

Street Law Firm LLP 
 P.O. Box 2100 

Grundy, Virginia 24614 
 (276) 936-2128

 (276) 935-4162 (Facsimile) 

                         
                                         
                   
 Mark A. Swartz, Esquire

 VSB No. 35160 
 Swartz Law
Office PLLC 
 PMB 210 2133 Upton Drive, Suite 126 

Virginia Beach, Virginia 23454-1194 
 (757)
721-2666 
 Counsel for CNX Gas Company LLC 

                         
                                         
                   
 Sharon M.B. Pigeon, Esquire

 Senior Assistant Attorney General of Virginia 

Post Office Drawer 900 
 Big Stone Gap, Virginia
24219 
 Telephone: (276) 523-8168 

Facsimile: (276) 523-8148 
 Counsel for
Virginia Department of Mines, Minerals, 
 and Energy (Division of Gas and Oil), 

and George P. Willis, Director, 

Virginia Department of Mines, Minerals & Energy 
  

 Exhibit G - 27 

                         
                                         
                   
 Frank Henderson 

Appalachian Energy, Inc. 
 1096 Ole Berry Road,
Suite 100 
 Abingdon, Virginia 24210 

                         
                                         
                   
 A. George Mason, Esquire

 841 Corporate Dr., Ste. 203 

Lexington, KY 40503 
 Telephone:
(859) 224-8277 
 Facsimile: (859) 296-2998 
  

 Exhibit G - 28 

 VIRGINIA: IN THE CIRCUIT COURT FOR THE COUNTY OF BUCHANAN GEOMET 

OPERATING COMPANY, INC., 

Plaintiffs, 
  

			
	v.	  	CASE NO. 485-06

 VIRGINIA DEPARTMENT OF MINES, MINERALS AND

 ENERGY 
 AND 

CNX GAS COMPANY LLC, 

Defendants. 

ORDER OF DISMISSAL WITH PREJUDICE 

This Court, upon consent of the parties, through their undersigned counsel, being informed that all maters in dispute have been settled
between the parties, ORDERS, ADJUDGES and DECREES that this case is dismissed with prejudice. Each party shall bear its own costs and attorneys’ fees incurred in the prosecution and/or defense of the above entitled action. 

The Clerk is ORDERED to send an attested copy to all counsel of record and place this matter among the ended causes. 

ENTERED this      day of
                    , 2010. 
  

	
	  
	Circuit Court Judge

  

 Exhibit G - 29 

 WE ASK FOR THIS: 

                         
                                         
                   
 J. Scott Sexton, Esquire (VSB
No. 29284) 
 James J. O’Keeffe IV, Esquire (VSB No. 48620) 

Gentry, Locke, Rakes & Moore LLP 
 800
SunTrust Plaza 
 P.O. Box 40013 

Roanoke, Virginia 24022-0013 
 (540) 983-9300

 (540) 983-9400 (Facsimile) 

                         
                                         
                   
 S. Thomas Mullins, Esquire
(VSB No. 27572) 
 Benjamin A. Street, Esquire (VSB No. 41118) 

Street Law Firm LLP 
 P.O. Box 2100 

Grundy, Virginia 24614 
 (276) 936-2128

 (276) 935-4162 (Facsimile) 

                         
                                         
                   
 R. Paul Yetter, Esquire (pro
hac vice) 
 Edward C. Dawson, Esquire (pro hac vice) 

Yetter, Warden & Coleman, LLP 
 909
Fannin Street, Suite 3600 
 Houston, Texas 77010 

(713) 632-8000 
 (713) 632-8002 (Facsimile)

 Counsel for GeoMet Operating Company, Inc. 

                         
                                         
                   
 Gregory N. Stillman, Esquire

 VSB No. 14308 

Hunton & Williams LLP 
 500 East Main
Street, Suite 1000 
 Norfolk, Virginia 23510 

(757) 640-5300 
 (757) 625-7720 (Facsimile)

  

 Exhibit G - 30 

                         
                                         
                   
 Cassandra C. Collins, Esquire

 VSB No. 30292 
 Kelly L.
Faglioni, Esquire 
 VSB No. 34685 

Hunton & Williams LLP 
 Riverfront
Plaza, East Tower 
 951 East Byrd Street 

Richmond, Virginia 23219 
 (804) 788-8200

 (804) 788-8218 (Facsimile) 

                         
                                         
                   
 Mark A. Swartz, Esquire

 VSB No. 35160 
 Swartz Law
Office PLLC 
 PMB 210 2133 Upton Drive, Suite 126 

Virginia Beach, Virginia 23454-1194 
 (757)
721-2666 
 Counsel for Defendant 

                         
                                         
                   
 Sharon M.B. Pigeon, Esquire

 Senior Assistant Attorney General of Virginia 

Post Office Drawer 900 
 Big Stone Gap, Virginia
24219 
 Telephone: (276) 523-8168 

Facsimile: (276) 523-8148 
 Counsel for
Virginia Department of Mines, Minerals, 
 and Energy (Division of Gas and Oil), 

and George P. Willis, Director, 

Virginia Department of Mines, Minerals & Energy 
  

 Exhibit G - 31 

 VIRGINIA: IN THE CIRCUIT COURT FOR THE COUNTY OF BUCHANAN CNX GAS 

COMPANY LLC, 
 Plaintiff,

  

			
	v.	  	CASE NO. CL0800505-00

 VIRGINIA GAS AND OIL BOARD ET AL.,

 Defendants. 

ORDER OF DISMISSAL WITH PREJUDICE 

This Court, upon consent of the parties, through their undersigned counsel, being informed that all maters in dispute have been settled
between the parties, ORDERS, ADJUDGES and DECREES that this case is dismissed with prejudice. Each party shall bear its own costs and attorneys’ fees incurred in the prosecution and/or defense of the above entitled action. 

The Clerk is ORDERED to send an attested copy to all counsel of record and place this matter among the ended causes. 

ENTERED this      day of
                    , 2010. 
  

	
	  
	Circuit Court Judge

  

 Exhibit G - 32 

 WE ASK FOR THIS: 

                         
                                         
                   
 J. Scott Sexton, Esquire (VSB
No. 29284) 
 James J. O’Keeffe IV, Esquire (VSB No. 48620) 

Gentry, Locke, Rakes & Moore LLP 
 800
SunTrust Plaza 
 P.O. Box 40013 

Roanoke, Virginia 24022-0013 
 (540) 983-9300

 (540) 983-9400 (Facsimile) 

                         
                                         
                   
 S. Thomas Mullins, Esquire
(VSB No. 27572) 
 Benjamin A. Street, Esquire (VSB No. 41118) 

Street Law Firm LLP 
 P.O. Box 2100 

Grundy, Virginia 24614 
 (276) 936-2128

 (276) 935-4162 (Facsimile) 

                         
                                         
                   
 Jonathan T. Blank, Esquire

 VSB No. 38487 
 MCGUIRE WOODS
LLP 
 Court Square Building 
 310
Fourth Street N.E., Suite 300 
 P.O. Box 45 

Charlottesville, Virginia 24902 
 (434) 977-2509

 (434) 980-2258 (Facsimile) 

                         
                                         
                   
 Mark A. Swartz, Esquire

 VSB No. 35160 
 Swartz Law
Office PLLC 
 PMB 210 2133 Upton Drive, Suite 126 

Virginia Beach, Virginia 23454-1194 
 (757)
721-2666 
 Counsel for CNX Gas Company LLC 
  

 Exhibit G - 33 

                         
                                         
                   
 Sharon M.B. Pigeon, Esquire

 Senior Assistant Attorney General of Virginia 

Post Office Drawer 900 
 Big Stone Gap, Virginia
24219 
 Telephone: (276) 523-8168 

Facsimile: (276) 523-8148 
 Counsel for
Virginia Department of Mines, Minerals, 
 and Energy (Division of Gas and Oil), 

and George P. Willis, Director, 

Virginia Department of Mines, Minerals & Energy 

                         
                                         
                   
 A. George Mason, Esquire

 841 Corporate Dr., Ste. 203 

Lexington, KY 40503 
 Telephone:
(859) 224-8277 
 Facsimile: (859) 296-2998 
  

 Exhibit G - 34 

 VIRGINIA: 

IN THE CIRCUIT COURT OF BUCHANAN COUNTY 
  

					
	 GEOMET OPERATING COMPANY, INC.
	  	)	  	
		  	)	  	
	Appellant,	  	)	  	
		  	)	  	
	VS.	  	)	  	 CASE NO. 06-624

		  	)	  	
	COMMONWEALTH OF VIRGINIA,	  	)	  	
	DEPARTMENT OF MINES, MINERALS	  	)	  	
	AND ENERGY, DIVISION OF GAS AND OIL,	  	)	  	
		  	)	  	
	and	  	)	  	
		  	)	  	
	ISLAND CI COAL COMPANY,	  	)	  	
		  	)	  	
	and	  	)	  	
		  	)	  	
	LBR HOLDINGS, LLC,	  	)	  	
		  	)	  	
	Appellees.	  	)	  	
		  		  	

 FINAL ORDER 

On this day came the parties, by counsel, pursuant to tile permit applications filed by GeoMet Operating Company, Inc., in connection
with well work permits for wells within Unit B-43 which is located within the Oakwood Coalbed Methane Field; upon the decision of the Director of the Virginia Department of Mines, Minerals and Energy Division of Gas and Oil; the appeal of GeoMet
Operating Company of the denial of the permit to the Virginia Gas and Oil Board; upon the decision of the Virginia Gas and Oil Board denying the subject permit by Order in re Virginia Gas mid Oil Board Docket No. VGOB 06-0815-1712; upon the
Notice of Appeal and Petition for Appeal to this Court filed by GeoMet Operating Company and the timely filing of Responses thereto by all parties respondent; and upon the representation of the parties hereto that all matters in controversy have
been settled. 
  

 Exhibit G - 35 

 WHEREUPON, the Court finds that it has jurisdiction of the parties and subject matter hereto
and that the parties to this action have resolved all outstanding issues concerning this appeal by GeoMet Operating Company. It is therefore 

ADJUDGED, ORDERED and DECREED that these matters be and hereby are dismissed with prejudice from this Court’s docket; and, it is

 ADJUDGED, ORDERED and DECREED that each party shall hear its own costs and attorneys’ fees incurred in the prosecution
and/or defense of the above entitled action; 
 ADJUDGED, ORDERED and DECREED that the Clerk is to strike these matters form
this Court’s docket and file each among the ended causes; and, it is further 
 ADJUDGED, ORDERED and DECREED that an
attested COPY of this Order be forwarded to all counsel of record. 
  

	
	  
	JUDGE

                         
                            

S.T. Mullins, Esq. 
 Pebbles L. Deel, Esq.

 STREET LAW FIRM, LLP 
 P.O. Box 2100

 Grundy, VA 24614 
 Telephone:
(276) 935-2128 
 Facsimile: (276) 935-4162 

Counsel for GeoMet Operating Company. Inc. 
  

 Exhibit G - 36 

 PUBLIC SERVICE COMMISSION 

OF WEST VIRGINIA 

CHARLESTON 
 CASE NO.
08-1691-GT-C 
 GEOMET, INC., 

Complainant, 
 V. 

CARDINAL STATES GATHERING COMPANY, 

Defendant. 

JOINT MOTION TO DISMISS CASE 

AS SETTLED 

COME NOW Complainant GeoMet, Inc. and Defendant Cardinal States Gathering Company and respectfully move the Commission to dismiss this
complaint case as fully resolved, settled and compromised between them. Each party shall bear its own costs and attorneys’ fees incurred in the prosecution and/or defense of the above entitled action. 

 

	
	Respectfully Submitted,
	
	 GEOMET, INC.
 By
Counsel

	
	 CARDINAL STATES GATHERING COMPANY

By Counsel

                         
                        

Robert R. Rodecker, Esquire 
 300 Summers Street
— Suite 1230 
 Post Office Box 3713 

Charleston, West Virginia 25337 
 Counsel for
GeoMet, Inc. 

                         
                        

E. Dandridge McDonald, WVSB No. 2439 
 Todd
W. Swanson, WVSB No. 10509 
  

 Exhibit G - 37 

 STEPTOE & JOHNSON PLLC 

Post Office Box 1588 
 Charleston, West Virginia
25326 
 Counsel for Cardinal States Gathering Company 

April     , 2010 
  

 Exhibit G - 38 

 CERTIFICATE OF SERVICE 

I, E. Dandridge McDonald, one of the counsel for Cardinal States Gathering Company, do hereby certify that a copy of the foregoing Joint
Motion to Dismiss Case as Settled has been served upon the following this      day of April 2010: 

Wendy Braswell, Esquire 

Public Service Commission of West Virginia 

Post Office Box 812 

Charleston, West Virginia 25323-0812 

 

	
	  
	E. Dandridge McDonald, WVSB No. 2439

  

 Exhibit G - 39 

 EXHIBIT H 

to that certain 

Settlement, Release and Confidentiality Agreement 

by and between 

CONSOL Energy Inc. et al., and 

GeoMet, Inc. et al. 

dated April 16, 2010 

PARTIAL ASSIGNMENT OF FARMOUT AGREEMENT 

THIS PARTIAL ASSIGNMENT of FARMOUT AGREEMENT (the “Assignment”) is made and entered into this     
day of April 2010, by and between GeoMet, Inc., a Delaware corporation, with an office at 5336 Stadium Trace Parkway, Suite 206, Birmingham, Alabama 35244 (“Assignor”), and CNX Gas Company LLC, a Virginia limited
liability company, with an office at 2481 John Nash Blvd., Bluefield, WV 24701 (“Assignee”) and EQT Production Company (formerly known as Equitable Production Company), a Pennsylvania corporation, with an office at 625
Liberty Avenue, Suite 1700, Pittsburgh, Pennsylvania 15222 (“EQT”). 
 WHEREAS, EQT is the holder and owner of
certain Oil, Gas and Mineral Leases set out in Exhibit “A”, attached hereto and made a part hereof for all purposes, (the “Lands”); and 

WHEREAS, Assignor, as Farmee, and EQT, as Farmor, have entered into a certain unrecorded Farmout Agreement dated the 16th day of August,
2004, covering the Lands, as subsequently amended by Amendment of Farmout Agreement dated January 15, 2010 (the “Farmout Agreement”); and 

WHEREAS, Assignor, Assignee, and EQT have agreed to an assignment of certain of Assignor’s rights, obligations and duties under the
Farmout Agreement to Assignee; 
 NOW, THEREFORE, for and in consideration of Ten Dollars ($10.00), the mutual covenants herein
contained and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Assignor, does hereby BARGAIN, GRANT, ASSIGN, AND CONVEY unto Assignee, all of Assignor’s right, title and interest in and to the
Lands and the Farmout Agreement INSOFAR AND ONLY INSOFAR as the Farmout Agreement and the Lands pertain to acreage located within the following units located in Buchanan County, Virginia and covering 708 acres, more or less: A3l, A32, A33, B32, B33,
B40, B41, B42, B52, C33, C39, C49, C50, D32, D47, E32, E38, F32, F46, G37, G38, G45, YYY32, YYY33, ZZZ31, ZZZ32, ZZZ33 and ZZZ34 (collectively, the “CNX Units”), and as shown on the attached Map of Lands attached hereto as Exhibit
“B” subject to the terms and conditions contained in the Farmout Agreement as modified below: 
 1. Although wells
drilled and completed by Assignee on the CNX Units in accordance with the Farmout Agreement will be “Earning Wells” as contemplated in the Farmout Agreement, and will entitle Assignee to an Assignment of Operating Rights from EQT in the
form attached hereto as Exhibit A, such wells will not count toward the Subsequent Well drilling obligations under Paragraph 3(B)(l) of the Farmout Agreement. The acreage applicable 

 

 Exhibit H - 1 

 to an Assignment of Earned Operating Rights for a well drilled on a CNX Unit shall be counted as Earned
Acreage under the Virginia Lease (as defined in the Farmout Agreement) and thus serve as a credit to reduce the amount of delay rentals due under the Virginia Lease. 

2. The parties agree that Section 7(B) of the Farmout Agreement does not apply to any well drilled by Assignee on the CNX Units and
thus EQT may not elect to participate in any well drilled by Assignee on the CNX Units for up to a thirty percent working interest in lieu of reserving the Overriding Royalty Interest. 

3. Assignor retains overall responsibility for ensuring that all obligations under the Farmout Agreement and leases for the Lands are
fully met, including without limitation, responsibility for payment of all delay rentals, royalties, shut-in and other payments due; however, to the extent mutually acceptable to EQT, Assignee may work directly with EQT for all matters relating to
the CNX Units which relate to: (a) lease burden payments to lessors and overriding royalty payments to EQT arising from the CNX Units under the Farmout Agreement; (b) notice and information to be given to EQT under the Agreement regarding
the CNX Units; and (c) other administrative requirements of the Farmout Agreement relating to the CNX Units. In any event, nothing herein shall diminish or excuse Assignor’s liabilities and obligations under the Farmout Agreement should
Assignee fall to comply with any such matters nor diminish or excuse Assignee’s liabilities and obligations to comply with all of the terms and conditions of the Farmout Agreement except as expressly stated herein. Without limiting the
foregoing, Assignor retains the responsibility for ensuring that all terms with respect to the drilling requirements set forth in Section 3(B)(l) are met; and the parties agree that in the event such terms are not met, Assignee shall have no
liability whatsoever to Assignor and Assignor shall not have and shall not assert any Claim (as defined below) against Assignee with respect to failure to meet such drilling requirements including any Claim relating to forfeiture of Assignor’s
rights under the Farmout Agreement for failure to meet such drilling requirements. 
 4. A default by Assignor or Assignee not
timely cured under Paragraph 3(B) or 14 of the Farmout Agreement, including a default by Assignor or Assignee that results in termination of the Virginia Lease, shall result in automatic termination of future drilling rights under this Assignment
for any CNX Units for which Operating Rights have not been earned on the Virginia Lease at the time of default. EQT’s remedies under the Farmout Agreement for a default by Assignor or Assignee shall not extend to the taking over the operation
of any well drilled on a CNX Unit, but shall otherwise remain unchanged. 
 5. Assignor shall retain all obligations, if any, to
pay any override or other burden (the “Akers Override”) that may arise from the Consulting Agreement between GeoMet, Inc., GeoMet Operating Company, Inc., and James W. Akers dated May 24, 2000 or other similar agreement. 

6. Assignee agrees to cause payment of the Overriding Royalty Interest to EQT for the wells previously drilled by Assignee on Unit C-50.
Assignor agrees to cause payment for the Overriding Royalty Interest to EQT for the wells drilled by Assignee and participated in by Assignor on Unit B-51 and Unit G-39. Upon payment of the Overriding Royalty Interest for Unit C-50 by Assignee to
EQT for the period prior to the date hereof, EQT will execute and deliver to 
  

 Exhibit H - 2 

 Assignee, within thirty days of EQT’ s receipt of a written request from Assignee, an Agreement and
Assignment of Operating Rights covering the Well Unit and the well previously drilled by Assignee thereon for Unit C-50. Upon payment of the Overriding Royalty Interest for Unit B-5 1 and Unit G-39 by Assignor to EQT for the period prior to the date
hereof, EQT will execute and deliver to Assignor, within 30 days of EQT’s receipt of written request from Assignor, an Agreement and Assignment of Operating Rights covering the Well Units and the Wells previously drilled by Assignee and
participated in by Assignor thereon for Unit B-5 1 and Unit G 39. 
 7. In the event hereunder the Assignor proposes
drilling and completion of a Subsequent Well, or the Assignee proposes drilling and completion of an Earning Well, in accordance with the Farmout Agreement, as amended, the following provisions of Section 7 shall not apply; otherwise

 In the event of any request, notice or order of pooling (“Pooling Notice”) from any operator
affecting any portion of the Lands to form a drilling unit (“Proposed Drilling Unit”) with other interests or tracts, the parties agree that Assignor or Assignee shall have the first right to elect participation as follows: 

(a) EQT shall be immediately provided with a copy of all such Pooling Notices received by Assignor and Assignee. EQT, within three
(3) business days of receipt of such Pooling Notices from third parties, shall provide a copy to Assignor for the affected Lands in the Proposed Drilling Unit, or as applicable to Assignee, to the extent the Pooling Notice affects Lands within
the CNX Units. 
 (b) No less than ten (10) business days before the date an election is required under such Pooling
Notices, EQT shall be notified by Assignor or Assignee, as applicable, whether it will elect by written notice to the operator, with a copy to EQT, to be the participating working interest owner for the affected Lands in the Proposed Drilling Unit.

 (c) Any and all elections by Assignor and/or Assignee to so participate in a Proposed Drilling Unit shall be subject to its
payment of the Overriding Royalty Interest to EQT, or in the case of Assignor, subject to EQT’s right to participate for a thirty percent (30%) working interest, proportionately reduced by the affected Lands percentage of the Proposed
Drilling Unit, in lieu of the Overriding Royalty Interest. 
 (d) If Assignor and/or Assignee do not give EQT written notice to
elect to so participate at least ten (10) business days before the date the election is required as described in (b) above, then EQT shall have the sole and exclusive right to elect participation in the Proposed Drilling Unit on any
carried or other basis it may choose, and Assignor and Assignee shall be deemed to have waived, transferred and released any right to participate to EQT in the Proposed Drilling Unit as to the affected Lands. 

 

 Exhibit H - 3 

 Provided however, notwithstanding items (a) through (1) above, with regard to
Appalachian Energy, Inc. (“AEI”) as operator affecting Lands within the E38, F32, G37 and 038 CNX Units, CNX assures and represents to EQT that the terms of the Farmout Agreement, as amended, will be honored by CNX or a joint venture
partner of CNX, including but not limited to AEI. 
 8. Assignee agrees to simultaneously provide a copy to Assignor of each
request for an Assignment of Operating Rights submitted to EQT for execution. 
 This Assignment is made by Assignor without
warranty of title, either express or implied, except as to the claims of all persons claiming or to claim the same or any part thereof by, through or under Assignor, but with full subrogation and substitution in and to all actions in warranty.

 From and after the Effective Date, Assignee agrees to fully defend, protect, indemnify and hold harmless Assignor, its
officers, members, managers, directors, subsidiaries, affiliates, parents, successors and assigns, collectively and individually ,and EQT from and against each and every claim, demand, action, cause of action, or lawsuit, of every kind and
character, including but not limited to pollution and environmental claims arising out of or incident to or in connection with operations and any liability, cost, expense, damage or loss, including court costs and attorney fees (collectively
“Claims”) that may be asserted against Assignor or Assignee or EQT by any third party, including Assignees employees and agents, arising from or on account of any operations conducted by Assignee, or for the benefit of Assignee under this
Assignment or which might arise out of any breach or violation of any of the terms and provisions of the Farmout Agreement or the Lease; provided, however Assignor shall not indemnify Assignee for any Claims relating in any manner to the failure to
meet drilling requirements under the Farmout Agreement. 
 Assignor agrees to filly defend, protect, indemnify and hold harmless
Assignee, its officers, members, managers, directors, subsidiaries, affiliates, parents, successors and assigns, collectively and individually, and EQT from and against each and every Claim (as defined above) that may be asserted against Assignor or
Assignee or EQT by any third party, including Assignor’s employees and agents, arising from or on account of any operations conducted, whether before or after the Effective Date, by Assignor or for the benefit of Assignor under the Farmout
Agreement or this Assignment or, which might arise out of any breach or violation of any of the terms and provisions of the Farmout Agreement or this Assignment or which might arise out of Assignor’s or other parties’ operations prior to
or after the effective date. 
 Capitalized terms used herein, but to defined, shall have the same meaning as given them in the
Farmout Agreement. The parties agree to execute such other and further instruments and documents as are necessary or convenient to effectuate and carry out the purpose of this Assignment, including a Memorandum of Agreement to be filed in the
records of Buchanan County, Virginia. This Assignment may be executed in counterparts. Signatures on separate originals shall constitute and be of the same effect as signatures on the same original. Electronic and faxed signatures shall constitute
original signatures. 
  

 Exhibit H - 4 

 IN WITNESS WHEREOF, this Assignment is executed by the parties hereto as of the dates of
their respective acknowledgements but is effective as of the first date mentioned hereinabove. 
  

					
	GEOMET, INC.	 		  	CNX GAS COMPANY LLC
			
	  
	 		  	  

	Name: J. Darby Seré	 		  	Name:
	Title: President	 		  	Title:

 EQT PRODUCTION COMPANY HEREBY ACKNOWLEDGES TILE
PARTIAL ASSIGNMENT OF RIGHTS UNDER TILE FARMOUT AGREEMENT AND AGREES TO THE MODIFICATIONS AS STATED HEREINABOVE, SUBJECT TO THE AGREEMENT OF ASSIGNOR AND ASSIGNEE TO COMPLY WITH THE TERMS HEREOF AND OF THE FARMOUT AGREEMENT. 

 

	
	EQT PRODUCTION COMPANY
	
	  

	Name:_____________________________________
	Title:______________________________________

  

 Exhibit H - 5 

 EXHIBIT I 

to that certain 

Settlement, Release and Confidentiality Agreement by and between 

CONSOL Energy Inc. et al., and 

GeoMet, Inc. et al. 

dated April 16, 2010 
  

 Exhibit I - 1 

 AMENDMENT OF FARMOUT AGREEMENT 

THIS AMENDMENT of FAR1 AGREEMENT (the “Amendment”) is made and entered into this
15th day of January 2010, by and between EQT Production
Company (formerly known as Equitable Production Company), a Pennsylvania corporation, with an office at 625 Liberty Avenue, Suite 1700, Pittsburgh, Pennsylvania 15222 (“FARMOR”) and GeoMet, Inc., a Delaware corporation,
with an office at 5336 Stadium Trace Parkway, Suite 206, Birmingham, Alabama 35244 (“FARMEE”). 

WITNESSETH 

WHEREAS, FARMOR and FARMEE have entered into that certain Farmout Agreement dated August 16, 2004, covering certain lands in
McDowell County, State of West Virginia and Buchanan County, Commonwealth of Virginia, (the “Agreement”) and FARMOR and FARMEE now desire to amend certain provisions of the Agreement. 

NOW, THEREFORE, in consideration of the premises, the payment of Ten Dollars ($10.00) by FARMEE to FARMOR, and other good and valuable
consideration, the receipt, adequacy and sufficiency of which are hereby acknowledged, it is now and hereby agreed, that the Agreement is amended as follows: 

1. Paragraph 3, FARMOUT WELLS, Section B, Subsequent Wells, subsection (1) is hereby deleted in its entirety and replaced with the
following: 
 “(1) Notwithstanding anything contained herein elsewhere, from the date of this Amendment, FARMEE agrees that
the Minimum Subsequent Wells to be drilled under the Agreement shall be (a) three wells prior to January 31, 2010 (b) five wells in the period between January 31, 2010 and August 16, 2010; (c) 26 wells in the twelve
months between August 16, 2010 and August 15, 2011; (d) 26 wells in the twelve months between August 16, 2011 and August 15, 2012; and (e) 20 wells in the period between August 16, 2012 and January 31, 2013;
provided that at all times the annual minimum drilling obligation of each lease has been met for a given lease year. Any Wells drilled by FARMEE in excess of the minimum number in any period will be credited toward the next period’s drilling
commitment.” 
 2. Paragraph 3, FARMOUT WELLS, Section B, Subsequent Wells, subsection (6) is hereby deleted in its
entirety and replaced with the following: 
 “(6) A failure of FARMEE to meet the drilling requirements contained herein, or
a default by FARMEE not timely cured under Paragraph 14 of this Agreement, shall result in automatic termination and a forfeiture of all of FARMEE’S future drilling rights under the Agreement. If FARMEE’s failure to meet the drilling
requirements contained herein 
  

 Exhibit I - 2 

 causes the termination of future drilling rights under FARMOR’s Lease 245280.01 (the
“Virginia Lease”), FARMEE shall upon written demand relinquish to FARMOR the Operating Rights earned by FARMEE under the Agreement for all Subsequent Wells, regardless when drilled, by FARMEE on the Virginia Lease.” 

3. Paragraph 4, TERM OF THE FARMOUT AGREEMENT, Section A is hereby deleted in its entirety and is replaced with the following: “This
Agreement as amended shall be in effect until this Agreement terminates by default as a consequence of FARMEE’s failure to meet the drilling commitments or other obligations contained herein or until its expiration on January 31, 2013,
whichever occurs first; or.” 
 4. Paragraph 7, RESERVED OVERRIDING ROYALTY, is hereby amended by lettering the existing
Paragraph 7 as paragraph 7(A) and adding the following paragraph as paragraph 7(B): 
 “(B) For each Subsequent Well drilled
hereunder after the date of this Amendment, FARMOR shall have an option to either reserve an Overriding Royalty Interest as set forth in Section 7(A), or to elect up to a thirty percent (30%) working interest in the Operating Rights to be
earned by such well, such working interest to be proportionately reduced if the well unit encompasses acreage not subject to the Agreement. FARMOR may exercise such right by written notice to FARMEE within thirty (30) days after receipt of an
Authority for Expenditure prepared by FARMEE for the purpose of estimating the costs to be incurred in the drilling and completion of the proposed well (an “AFE”). FARMEE may send FARMOR notices containing AFE’s for no more than five
separate wells at one time and FARMOR may separately elect as to each well in the notices. In the event that FARMOR elects to participate with a working interest in a Subsequent Well pursuant to this paragraph: (a) FARMEE shall be entitled to
receive at least a seventy percent (70%) proportionately reduced interest in the Operating Rights earned by such well and FARMOR shall not be entitled to the Reserved Overriding Royalty Interest in such well; and (b) FARMOR and FARMEE will
promptly enter into a joint operating agreement similar in form to the operating agreements in effect between the parties for the Rogers #545 and the #191 Wells. FARMEE shall be responsible for preparation of such operating agreement. Additionally,
in the event any Subsequent Well is the initial well in a Drilling or Well Unit and FARMOR elects to participate in the same with less than a thirty percent (3 0%) working interest as set forth in this Paragraph 7(B), FARMOR and FARMEE will enter
into a mutually acceptable agreement, prior to the drilling of such initial Subsequent Well for the Drilling or Well Unit, setting forth the percentage of Overriding Royalty Interest which FARMOR may elect, in accordance with Paragraph I 9.Q below,
in any additional wells, if any, drilled by FARMEE in said Drilling or Well Unit 
  

 Exhibit I - 3 

 5. Paragraph 13 NOTICES AND WELL INFORMATION, Subsection B, General Notices, is hereby
amended as follows: 
 FARMOR: 

EQT Production Company 

Attention: Land Administration, Contracts Manager 

625 Liberty Avenue, Suite 1700 

Pittsburgh, PA 15222-3111 

Phone: 412-395-2062 

Fax: 

FARMEE: 

GeoMet, Inc. 

Attention: Land Manager 

5336 Stadium Trace Parkway, Suite 206 

Birmingham, Alabama 35244 

Phone: 205-425-3855 

Fax: 205-425-4711 

6. In order to conform Paragraph 14 DEFAULT BY FARMEE, with the change to Paragraph 3(B)(6) above, the following shall be added to the
end of the first paragraph: “;provided however, if FARMEE’s failure to meet the drilling requirements contained herein causes the termination of future drilling rights under the Virginia Lease, FARMEE shall upon written demand relinquish
to FARMOR the Subsequent Wells and the Operating Rights earned by FARMEE under the Agreement for all such Subsequent Wells, regardless when drilled, by FARMEE on the Virginia Lease”. 

In addition, the following exception shall be added to the end of the last sentence of the second paragraph of Paragraph 14: “;
provided however, if FARMEE’s failure to meet the drilling requirements contained herein causes the termination of future drilling rights under the Virginia Lease, FARMEE shall upon demand relinquish to FARMOR the Subsequent Wells and the
Operating Rights earned by FARMEE under the Agreement for all such Subsequent Wells, regardless when drilled, by FARMEE on the Virginia Lease without compensation to FARMEE,” 

7. Paragraph 19 Section B, CONSENT TO STIMULATE, is hereby deleted in its entirety as of and after the date of this Amendment.

 8. Paragraph 19 is hereby amended to add the following additional subsection at the end thereof: 

Q. For a ten (10) year period from the effective date of this Amendment (10 Year Period), subject to the Virginia Lease permitting
such right, once FARMEE earns the Operating Rights to the area within a Drilling or Well Unit, as the term is defined and used in the Agreement and Exhibit E to the Agreement, and the Virginia Lease, FARMEE shall have the right to drill additional
wells on the acreage included in such 
  

 Exhibit I - 4 

 Drilling or Well Unit, and production from any well drilled by FARMEE or a successor or
assign of FARMEE on a Drilling or Well Unit will serve to hold the acreage under such Drilling or Well Unit. Paragraph 8 of the Agreement, “Abandonment of Wells”, does not apply to any well on a Drilling or Well Unit on which a producing
well is also located, provided the foregoing shall not diminish FARMEE’s obligation for the proper plugging and abandonment of its wells in accordance with the Virginia Lease and applicable law. Any such additional well will not be counted
towards the Minimum Subsequent Well requirements as set forth in paragraph 3 above. if FARMOR elected to receive an ORRI, pursuant to the provisions set forth in paragraphs 7(A) and 7(B) above, in the initial Subsequent Well of such Drilling or Well
Unit, FARMOR’s interest in each such additional well in such Drilling or Well Unit shall he the same as FARM OR elected for such initial Subsequent Well, If FARMOR elected to participate with a Working Interest, pursuant to the provisions set
forth in paragraphs 7(A) and 7(B) above, in the initial Subsequent well of such Drilling or Well Unit, then each such additional well drilled on said Drilling or Well Unit shall also be subject to FARMOR’s ORRI or Working Interest election as
per the provisions set forth in paragraphs 7(A) and 7(B). Should FARMOR elect an ORRI, per the provisions of paragraphs 7(A) and 7(B), in any such additional well drilled on said Drilling or Well Unit, FARMOR and FARMEE agree to enter into a
mutually acceptable assignment of operating rights form, whereby FARMOR will assign to FARMEE, FARMOR’s Working Interest in the wellbore of such additional well, reserving and excepting therefrom an ORRI in such wellbore as set forth paragraph
7(A) or, in the event FARMOR elected to participate with less than a thirty percent (30%) Working Interest in the initial Subsequent Well on the Drilling or Well Unit, then the ORRI reserved in any additional well drilled shall be as mutually
agreed in accordance with the provisions of Paragraph 7(B). 
 No earlier than 12 months before the expiration of the 10 Year
Period, FARMEE may submit to FARMOR a proposed development plan for the remaining undrilled additional well locations, if any, within Drilling or Well Units for which FARMEE has earned Assignments of Operating Rights pursuant to this Agreement.
Following receipt and review of such plan, as and if mutually agreed by FARMOR and FARMEE in their sole discretion that such plan is mutually desirable with respect to the Virginia Lease and can be accomplished in a timely manner, FARMOR and FARMEE
may agree to enter into a mutually agreeable extension of the 10 Year Period on or before said expiration. 
 9. Exhibit E, Form
of Agreement and Assignment of Operating Rights, is hereby amended as set forth on Exhibit “A” attached hereto. FARMOR and FARMEE agree to execute an amended Agreement and Assignment of Operating Rights in the form attached hereto as
Exhibit “A” for each of the 13 wells that FARMEE has drilled on the Virginia Lease for which FARMEE has received an Agreement and Assignment of Operating Rights. 

10. This Amendment shall become effective and binding, contingent upon FARMEE confirming that it has spudded at least three (3) new
wells before January 31, 2010, to satisfy the minimum requirement of the Virginia Lease. 
  

 Exhibit I - 5 

 FARMOR and FARMEE acknowledge that the Agreement, as amended herein, is valid and in full
force and effect. 
 This Amendment of Farmout Agreement shall be binding upon and inure to the benefit of the parties hereto,
their successors and assigns. 
 EXECUTED to be effective as of the day and year first above set forth. 

 

					
	EQT PRODUCTION COMPANY	 		  	GEOMET, INC.
			
	  
	 		  	  

	Name:	 		  	Name: J. Darby Seré
	Title:	 		  	Title: President and Chief Executive Officer

  

 Exhibit I - 6 

 Fon Rogers, II, Manager 

Page 1 of 3 
 EXHIBIT J 

 to that certain 

Settlement, Release and Confidentiality Agreement 

by and between 

CONSUL Energy Inc. et al., and 

GeoMet, Inc. et al. 

dated April 16, 2010 

[CNX LETTERHEAD] 
 April
            , 2010 
 Fon Rogers, II, Manager 

LBR Holdings, LLC 
 P.O. Box 22427 

Lexington, KY 40522-2427 
  

	Re:	Letter Agreement Allowing CNX and GeoMet to Remain Upon Assigned Premises in Event of a Default by Lessee 

Dear Mr. Rogers: 
 This
Letter Agreement sets forth certain terms, conditions, and agreements between CNX Gas Company LLC (“CNX”), GeoMet, Inc. (“GeoMet”), EQT Production Company (“EQT”) and Fon Rogers, II, Manager, LBR Holdings, LLC
(hereinafter “LBR”) related to that certain Coalbed Methane Lease (the “Lease”) dated February 1, 1999 by and between LBR as Lessor and Equitable Production Company as Lessee. 

Fon Rogers, II, as Trustee of the Lon B. Rogers Bradshaw Trust No. 1 (“Trust No. 1”) and LBR entered into a Deed
dated the 22nd day of December, 2003, wherein Trust No. 1 conveyed to LBR, effective January 1, 2004, all of its real estate interests in Buchanan County, Virginia, including, but not limited to, all coal, oil, gas, coalseam gas or coalbed
methane gas, minerals of any kind and description and related surface rights related for the extraction and removal of the same. 

Fon Rogers, II, as Trustee of the Lon B. Rogers Bradshaw Trust No. 2 (“Trust No. 2”) and LBR entered into a Deed
dated the 22nd day of December, 2003, wherein Trust No. 2 conveyed to LBR, effective January 1, 2004, all of its real estate interests in Buchanan County, Virginia, including, but not limited to, all surface lands, coal, coalseam gas or
coalbed methane gas, timber resources and minerals of any kind and description. 
 Equitable Production Company, now known as
EQT, entered into a Farmout Agreement (the “Farmout”) dated August 16 2004, with GeoMet in which EQT agreed that GeoMet could enter upon the Lease and acquire certain operating rights under the Lease by drilling wells. Subsequently,
EQT and GeoMet amended the Farmout pursuant to an Amendment of Farmout 
  

 Exhibit J - 1 

 Fon Rogers, II, Manager 

Page 2 of 3 
 Agreement dated January 15,
2010 and GeoMet, EQT and CNX agreed to a partial assignment of certain of GeoMet’s rights under the Farmout regarding the lands shown as CNX Units on Exhibit A (the “CNX Assigned Premises”). As a part of the partial assignment
agreement between CNX, EQT and GeoMet, CNX requested that LBR represent to CNX that (i) the wells drilled by CNX would not be forfeited pursuant to paragraph 26 of the Lease if a default occurred and such default was not caused by CNX, and
(ii) LBR would cooperate with CNX to obtain permits upon the Lease premises. Further, GeoMet would like the same assurance from LBR with respect to the wells drilled by GeoMet on the Lease. Consequently, CNX, GeoMet, EQT and LBR agree as set
forth below. 
 LBR hereby agrees, if LBR exercises its rights under the Lease to re-enter the premises or any other rights under
the Lease or remedies at law allowing LBR to take over the operation of the wells drilled under the terms of the Lease after providing EQT, as lessee, the required prior written notice and opportunity to cure an asserted default under the Lease:
(a) so long as CNX, assuming CNX was acting in accordance with its agreements with the lessee as to the CNX Assigned Premises only, was not in default under the terms of the Lease as to its obligations related to the CNX Assigned Premises and
the wells located thereon, that CNX will be permitted to continue operating the wells it has drilled upon the CNX Assigned Premises under the terms of the Lease as the assignee of certain operating rights to the Lease under the Farmout Agreement
(and EQT will be permitted to continue as Lessee as to the CNX Assigned Premises in accordance with the Lease and its agreements with CNX); (b) so long as GeoMet, assuming GeoMet was acting in accordance its agreements with the lessee as to the
GeoMet Earned Acreage, as such term is defined in the Lease, only, was not in default under the terms of the Lease as to its obligations related to the GeoMet Earned Acreage, and the wells located thereon, that GeoMet will be permitted to continue
operating the wells it has drilled upon the GeoMet Earned Acreage under the terms of the Lease as the assignee of certain operating rights to the Lease under the Farmout Agreement (and EQT will be permitted to continue as Lessee as to the GeoMet
Earned Acreage in accordance with the Lease and with its agreements with GeoMet). Further, the parties agree that under such circumstances in which LBR exercises its rights described in the preceding sentence, the parties shall execute such
documents as CNX or (GeoMet or EQT reasonably requests in their discretion to evidence CNX’s or GeoMet’s continued operating rights under their agreements with the lessee under the Lease and to evidence LBR’s continued rights as
Lessor under the Lease and EQT’s continued rights as Lessee, and (c) LBR will cooperate with CNX, GeoMet and EQT and thus will not arbitrarily withhold any consents necessary to obtain permits to drill wells upon the LBR Lease premises or
arbitrarily object to any permit applications. 
 Except as provided herein above, CNX and GeoMet represent to LBR and EQT that
nothing set forth in the Settlement, Release and Confidentiality Agreement will affect LBR or EQT, directly or indirectly, as to their respective rights as Lessor and Lessee under the Lease. 

 

 Exhibit J - 2 

 Fon Rogers, II, Manager 

Page 3 of 3 
 If you agree with
the terms and conditions of this Letter Agreement, please execute four originals of this Letter Agreement and return one fully executed Letter Agreement to me at the address written above, and fully executed copies of this Letter Agreement to GeoMet
and EQT. 

	
	Very truly yours,
	
	William D. Gillenwater
	Vice President - Land

  

	
	ACCEPTED AND AGREED THIS
	             DAY OF
                    , 2010
	
	  

	 Fon Rogers, II, Manager

	 LBR Holdings, LLC

	
	  

	 J. Darby Seré

	 President, GeoMet, Inc.

	
	  

	 EQT Production Company

	 Name: ___________________________________

	 Title: ____________________________________

 

 Exhibit J - 3 

 EXHIBIT K 

to that certain 

Settlement, Release and Confidentiality Agreement 

by and between 

CONSOL Energy Inc. et a!., and 

GeoMet, Inc. et a!. 

dated April 16, 2010 

April             , 2010 

Fon Rogers, II, Manager 
 LBR Holdings, LLC

 P. 0. Box 22427 
 Lexington, KY
40522.2427 
  

	Re:	Settlement, Release and Confidentiality Agreement by and between CONSUL, et al, CNX, et al. and GeoMet et al. 

Dear Mr. Rogers: 
 CONSOL
ENERGY INC., ISLAND CREEK COAL COMPANY, and CONSOLIDATION COAL COMPANY (collectively, “CONSOL”) and CNX GAS CORPORATION, CNX GAS COMPANY LLC, and CARDINAL STATES GATHERING COMPANY (collectively, “CNX Gas”) and GEOMET, INC.,
GEOMET GATHERING COMPANY, LLC, and GEOMET OPERATING COMPANY, INC. (collectively, “GeoMet”) entered into a Settlement, Release and Confidentiality Agreement on April , 2010 (the “Settlement Agreement”). Pursuant to your request
and as consideration for the assurances and agreement made by Fon Rogers, II, Manager, LBR Holdings, LLC (hereinafter “LBR”) related to that certain Coalbed Methane Lease (the “Lease”) dated February 1, 1999 by and between
LBR as Lessor and Equitable Production Company as Lessee on even date herewith unto and with CNX Gas and GeoMet, GeoMet and CNX Gas make the following representations to LBR regarding the Settlement Agreement: 

1) CONSOL granted to GeoMet consents to stimulate coal seams in accordance with the provisions of the Agreement for Conditional Consent to
Stimulate dated contemporaneously herewith for the following units (the “GeoMet Units”) in Buchanan County, Virginia: 

A34, 35, 36, 37, 40,41, 42, 43 

B34, 35, 36, 39, 43, 44, 45, 46, 49, 50 

C34, 35, 36, 37, 38, 43, 44, 45, 46, 47, 48 

D33, 34, 35, 36, 37, 38, 43, 44, 45, 46 

E33, 34, 35, 36, 37, 43, 44, 45, 46 

F33, 34, 35, 36, 37, 38, 44, 45 
  

 Exhibit K - 1 

 WWW4O 

XXX41, 42 

YYY34, 35,36,37,41,42 

ZZZ 35, 36, 37, 39, 40, 41 

2) CONSOL will provide GeoMet with an executed Statement of No Objection for each location GeoMet proposes to drill in the GeoMet Units.

 3) CONSOL, CNX Gas and GeoMet have executed orders dismissing all litigation between them pending in the Circuit Court of
Buchanan County, Virginia, including all cases related to the Lease. 
  

									
	 CNX GAS COMPANY LLC
	  	GEOMET, INC.
					
	 By:
	 	  
	  		  	By:	  	  

	 Name:
	 	  
	  		  	Name:	  	J. Darby Seré
	 Title:
	 	  
	  		  	Title:	  	President

  

 Exhibit K - 2

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